Q2 2025 Earnings Presentation August 6, 2025 Disclaimer This presentation (the "Presentation") of OppFi Inc. ("OppFi" or the "Company") is for information purposes only. Certain information contained herein has been derived from sources prepared by third parties. While such information is believed to be reliable for the purposes used herein, the Company makes no representation or warranty with respect to the accuracy of such information. Trademarks and trade names referred to in this Presentation are the pr ...

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Core Viewpoint - OppFi Inc. (OPFI) is set to report its second-quarter 2025 results on August 6, with expected revenues of $141.6 million, reflecting a 12.1% year-over-year increase, and earnings per share (EPS) anticipated to rise by 3.5% to $0.30 [1][8]. Financial Performance - The Zacks Consensus Estimate for revenues in Q2 2025 is $141.6 million, indicating a 12.1% increase from the previous year [1]. - The consensus EPS estimate is set at 30 cents, which represents a 3.5% rise from the year-ago figure [1]. - The company has a history of earnings surprises, having beaten the Zacks Consensus Estimate in the last four quarters with an average surprise of 59.5% [2]. Earnings Prediction - Current analysis indicates a low probability of an earnings beat for OppFi, with an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [3][4]. - There have been no changes in analyst estimates or revisions recently, maintaining a consistent EPS forecast [2]. Customer Strategy - OppFi's customer-centric approach, supported by AI and machine learning, is expected to drive revenue growth by increasing auto-approval rates and enhancing client satisfaction [5][8]. - The company reported a 4.7/5.0-star rating on Trustpilot and a Net Promoter Score of 78, indicating strong customer loyalty and satisfaction [6]. Stock Performance - OppFi's stock has surged 203.1% over the past year, outperforming its industry (22.4% increase) and the Zacks S&P 500 composite (19.5% increase) [9]. - The stock is currently trading at a trailing 12-month price-to-earnings ratio of 7.99, significantly lower than the industry average of 21.65 and cheaper than peers WEX and Corpay [11]. Market Position and Risk Management - OppFi focuses on the underbanked population, which involves high credit risk, but has effectively implemented risk management strategies to minimize losses [13]. - The net charge-off rate as a percentage of total revenues decreased by 1300 basis points year-over-year in Q1 2025, showcasing the effectiveness of its risk mitigation strategies [14]. - Despite the potential for growth in serving the underbanked, concerns about credit risk remain due to the high probability of default [15]. Investment Considerations - The company is fundamentally strong with a discounted valuation, appealing to investors, but caution is advised due to the inherent risks in its primary market [16]. - Existing investors are recommended to hold the stock, while new buyers should consider waiting until after the earnings release to assess performance [17].

Key Takeaways DAVE posted a 47% revenue jump and 235% adjusted EBITDA growth in 1Q25. CashAI helped DAVE cut delinquency by 18% and credit loss ratio to 0.69%. OPFI grew net income 285.1% and cut net charge-offs by 1300 bps y/y.Both OppFi Inc. (OPFI) and Dave (DAVE) operate in the fintech space, addressing customer needs encircling digital lending. DAVE’s primary service is to offer small, interest-free cash advances to users. OPFI works with banks to provide access to credit to subprime/non-prime demogra ...

Core Insights - OppFi Inc. (OPFI) shares have surged 222.1% over the past year, significantly outperforming its industry growth of 10.3% and the Zacks S&P 500 Composite's 11% increase [1] - The stock has also shown strong performance over the last six months, increasing by 44.5%, compared to Mastercard's 6.3% and PayPal's 15.1% growth [4] Company Strategy - OppFi employs a bank-partner model that focuses on serving underbanked consumers with credit scores below 650, addressing a gap in traditional lending options [5] - The company has integrated AI and machine learning to enhance its service efficiency, achieving an auto-approval rate of 79% in Q1 2025, up from 73% in the same quarter the previous year [6][7] Customer Satisfaction - In Q1 2025, OppLoans received a 4.7 out of 5-star rating on Trustpilot from over 4,900 reviews, indicating strong customer satisfaction [8] - The company boasts a Net Promoter Score (NPS) of 78, reflecting a loyal customer base willing to promote the brand [8] Financial Metrics - OppFi shares are currently undervalued, trading at 9.27 times forward 12-month earnings per share, compared to the industry average of 21.68 times [9] - The trailing 12-month EV-to-EBITDA ratio for OPFI is 6.29 times, below the industry's average of 11.4 times [11] - The company's current ratio stands at 1.73 in Q1 2025, exceeding the industry average of 1.22, indicating strong liquidity [13] Revenue and Earnings Projections - The Zacks Consensus Estimate for OppFi's 2025 revenues is $578.4 million, reflecting a 10% year-over-year growth [15] - The consensus estimate for 2025 earnings per share is $1.23, implying a 29.5% year-over-year increase [15]

Core Insights - OppFi's gross margin increased to 85.7% in Q1 2025, up from 84.7% in the previous quarter and 82.3% a year ago, indicating a consistent upward trend since Q1 2024 [1][8] - The trailing 12-month EBITDA margin rose to 57.5% in Q1 2025, compared to 46.7% in the previous quarter and 39.8% a year ago, showcasing improved operational efficiency [1] - The company's net charge-offs as a percentage of revenues decreased to 35% from 42% in the prior quarter and 48% a year ago, attributed to AI-powered underwriting models [2] Operational Performance - Despite strong operational metrics, OppFi's net profit margin fell to -2.8% in Q1 2025, down from 1.5% in Q1 2024 and 2.4% in Q3 2024, primarily due to rising minority interest expenses linked to its Up-C structure [3][4] - The Up-C structure results in a significant portion of consolidated earnings being allocated to non-controlling interests, negatively impacting reported profitability [4] Future Outlook - The company's ability to improve credit quality, as evidenced by lower net charge-off rates and increasing auto-approval rates, is expected to drive long-term profitability [5] - Refining lending models and cost reduction strategies may help OppFi achieve a positive net income trend over time [5] Market Performance - OppFi's shares surged 294.5% over the past year, outperforming competitors Green Dot and Remitly Global, which gained 13.7% and 47.5% respectively, while the industry overall rose by 30.2% [6] - The forward price-to-earnings ratio for OppFi is 10.36, significantly lower than the industry's 22.72, indicating potential undervaluation [10] Earnings Estimates - The Zacks Consensus Estimate for OppFi's earnings in 2025 is $1.23 per share, reflecting a year-over-year growth of 29.5%, with an anticipated increase of 14.2% in 2026 [13]

Group 1 - OppFi Inc. (NYSE: OPFI) has experienced a significant 52-week gain of over 300%, although it remains below its highs from February [1] - The fintech sector, including companies like OppFi, is positioned to offer more efficient financial services compared to traditional banks [1]

Group 1 - OppFi Inc. has shown significant stock appreciation of nearly 50% since its bullish Q1 earnings report [1] - Shareholders have been rewarded handsomely due to the company's positive performance [1]

Core Viewpoint - The analysis on OppFi Inc. (NYSE: OPFI) indicates a bullish outlook, albeit with caution due to the stock's significant increase of over 300% in the past year, which raises skepticism among investors [1]. Company Analysis - The company has experienced a substantial rise in stock price, tripling in value within a year, which may lead to investor skepticism [1]. - The focus is on providing a clear and disciplined breakdown of the company's performance, emphasizing the importance of understanding the underlying business and financial metrics rather than following market narratives [1].

Core Insights - In the current economic climate, new analyst coverage is increasingly valuable for investors navigating volatility, with the Federal Reserve maintaining interest rates and signaling potential cuts in 2025, amid rising concerns about stagflation as GDP growth slows to 1.4% and inflation rises to 3% [1][2] Analyst Coverage Importance - New analyst coverage provides timely insights, updated models, and context on how companies may perform amid inflationary pressures, cost volatility, and weakening demand [2][3] - Analysts possess specialized knowledge and expertise, offering critical insights into a company's financial health, growth potential, competitive standing, and industry trends, which are often difficult for individual investors to acquire independently [3][5] - Coverage initiation on a stock typically indicates higher investor interest, as investors believe that the company under coverage holds significant value [4][6] Market Impact of Analyst Coverage - New analyst coverage can lead to immediate stock price volatility, with positive ratings attracting bullish sentiment and driving share prices higher, while neutral or negative ratings may trigger sell-offs [8] - Favorable coverage from multiple analysts can enhance investor confidence, leading to sustained upward momentum in valuation [8][10] Recent Stock Highlights - Recent analyst coverage on Karooooo Ltd. (KARO), OppFi Inc. (OPFI), QXO, Inc. (QXO), and United Fire Group, Inc. (UFCS) reflects analyst confidence despite economic uncertainty, with each stock seeing recent EPS estimate hikes [10] - Karooooo shares have gained 36.4% in the past three months, with a fiscal 2026 EPS estimate increase to $1.87, indicating 14.7% year-over-year growth [14] - OppFi shares have gained 73.2% in the past three months, with a 2025 EPS estimate increase to $1.23, indicating 29.5% year-over-year growth [15] - QXO shares have gained 78% in the past three months, with a 2025 EPS estimate improving to 39 cents from a loss of 12 cents [16] - United Fire Group shares have gained 9.4% in the past three months, with a 2025 EPS estimate increase to $3.50, indicating a 2.4% year-over-year decline [17] Screening Criteria for Stocks - Stocks with increased analyst coverage and improving average ratings are prioritized, with additional parameters including a stock price greater than or equal to $5 and an average daily volume greater than or equal to 100,000 shares [11][12]