Financial Performance - For the year ended December 31, 2024, total revenue was approximately $526 million, representing a period-over-period growth of approximately 3.3% from $509 million in 2023[34]. - Net revenue for the year ended December 31, 2024, was $321,478,000, up from $273,182,000 in 2023, representing a year-over-year increase of about 17.7%[494]. - Net income attributable to OppFi Inc. was $7,258,000 for 2024, a significant recovery from a net loss of $1,005,000 in 2023[494]. - Earnings per share (EPS) for 2024 was $0.36, compared to a loss of $0.06 per share in 2023, indicating a turnaround in profitability[494]. - Cash and restricted cash totaled $88,288,000 as of December 31, 2024, an increase from $73,943,000 in 2023, reflecting enhanced liquidity[488]. - Total assets increased to $641,171,000 as of December 31, 2024, compared to $601,543,000 in 2023, reflecting a growth of approximately 6.5%[488]. - The company reported a provision for credit losses on finance receivables of $42,000 in 2024, a significant decrease from $4,348,000 in 2023, suggesting improved credit quality[494]. - The company reported a net cash provided by operating activities of $323,806,000 for 2024, compared to $296,146,000 in 2023 and $243,297,000 in 2022[503]. - The total stockholders' equity increased to $234,213,000 by December 31, 2024, from $194,029,000 in 2023[500]. Loan Operations - OppFi facilitated more than $7.2 billion in gross loan issuance covering over 4.0 million loans since inception through December 31, 2024[26]. - The average installment loan facilitated by OppFi is approximately $1,750, with an average contractual term of 11 months[24]. - The average APR for a loan facilitated on the OppLoans platform in 2024 was 163%, with a three-year average of approximately 157%[38]. - OppFi served more than 1.4 million unique customers since its inception as of December 31, 2024[33]. - Approximately 20.9% of loans originated were generated through search engine optimization, email marketing, and customer referrals[54]. - Finance receivables originated and acquired amounted to $732,045,000 in 2024, slightly up from $721,287,000 in 2023[503]. - The total unpaid principal balance of installment finance receivables was $425.240 million, an increase from $416.463 million in 2023, representing a growth of 1.86%[568]. - The fair value of finance receivables at the end of 2024 was $473.696 million, up from $463.320 million in 2023, indicating a year-over-year increase of 1.99%[571]. - The company originated $732.012 million in finance receivables in 2024, compared to $719.503 million in 2023, reflecting a growth of 1.76%[571]. Customer Experience and Satisfaction - OppFi's net promoter score (NPS) was 78 for the year ended December 31, 2024, indicating strong customer satisfaction[33]. - The company maintains an A+ rating from the Better Business Bureau (BBB) and a 4.5/5.0 star rating on Trustpilot as of December 31, 2024[33]. - OppFi's platform offers a highly automated, transparent, and fully digital experience for consumers[26]. - OppFi's platform provides simple interest installment loans with no balloon payments or ancillary fees, targeting approximately 60 million U.S. consumers facing credit insecurity[41]. Regulatory Compliance - OppFi is subject to extensive regulations from various federal, state, and local authorities, which may impact its operations and compliance efforts[63]. - The Consumer Financial Protection Bureau (CFPB) has significant regulatory authority over OppFi, including the ability to conduct examinations and enforce consumer protection laws[64]. - OppFi assists its bank partners in complying with the Truth in Lending Act (TILA), which mandates clear disclosures regarding loan terms, including annual percentage rates and finance charges[66]. - The Equal Credit Opportunity Act (ECOA) prohibits discrimination in lending, and OppFi ensures compliance by providing adverse action notices to denied applicants[67]. - Under the Fair Credit Reporting Act (FCRA), OppFi must accurately report loan payment information and provide timely adverse action notices when credit applications are declined[68]. - OppFi's operations are governed by the Fair Debt Collection Practices Act (FDCPA), which sets guidelines for debt collection practices to prevent abusive conduct[70]. - The Gramm-Leach-Bliley Act (GLBA) requires OppFi to protect consumer information and provide privacy policies detailing data collection and sharing practices[71]. - The Dodd-Frank Act established the CFPB, which oversees OppFi's compliance with federal consumer financial laws and can impose restrictions on lending practices[72]. - OppFi must comply with the Electronic Fund Transfer Act (EFTA), ensuring consumer consent for electronic fund transfers and adherence to NACHA guidelines[76]. - OppFi's email communications comply with the CAN-SPAM Act, which regulates commercial email practices and requires opt-out mechanisms for recipients[79]. - OppFi's loans to servicemembers under the Servicemembers Civil Relief Act (SCRA) are capped at an interest rate of 6% during active duty, impacting the revenue from these loans[80]. - The Military Lending Act limits the Military Annual Percentage Rate to 36% for certain active duty members and their dependents, ensuring compliance with these regulations is a priority for OppFi[81]. - OppFi's anti-money laundering (AML) program is designed to prevent illicit activities and includes customer due diligence and record-keeping policies, which are essential for maintaining compliance with federal laws[82]. - The company is subject to various state usury laws that could affect the interest rates and fees charged on loans, which may impact its growth if compliance is not maintained[87]. Operational Efficiency - Approximately 92.5% of underwriting decisions on the OppFi platform were automated during the year ended December 31, 2024[30]. - Approximately 92.5% of credit decisions were automated in the year ended December 31, 2024, enhancing efficiency in the loan approval process[41]. - The bank partner model allows OppFi to facilitate loan products while managing customer acquisition, underwriting, and servicing, enhancing operational efficiency[46]. - OppFi's technology-driven platform enables scalability and cost efficiency, allowing it to serve consumers nationwide without physical store costs[44]. Workforce and Corporate Structure - As of December 31, 2024, OppFi employed approximately 445 full-time employees, reflecting a commitment to building a diverse and talented workforce[100]. - The company has implemented a compliance management system to adhere to consumer protection laws, minimizing compliance-related risks[94]. - Noncontrolling interests held by Members were 74.4% and 83.0% of the economic ownership percentage of OppFi-LLC as of December 31, 2024 and 2023, respectively[557]. Capital and Investments - The company has established a robust system for servicing costs, default rates, and prepayment rates, which are critical for accurate financial forecasting and risk management[479]. - The company issued 1,508,113 shares under the equity incentive plan in 2024[500]. - Stock-based compensation expense rose to $5,270,000 in 2024, compared to $4,067,000 in 2023[503]. - The company incurred transaction costs of approximately $0.7 million related to the acquisition of a 35% equity interest in Bitty Holdings, LLC[531]. - The Company has determined that all entities subject to the consolidations guidance are VIEs for which it is the primary beneficiary as of December 31, 2024[517]. Debt and Financing - The company has a borrowing capacity of $525 million as of December 31, 2024, with total outstanding borrowings of $318.758 million[581]. - The company recorded charge-offs of $205.755 million in 2024, down from $220.895 million in 2023, representing a reduction of 6.4%[571]. - The accrued expenses increased to $32.411 million in 2024 from $22.006 million in 2023, marking a significant rise of 47.4%[573]. - The maturity date of the revolving line of credit was extended from April 15, 2025, to October 16, 2026, and the applicable margin rate increased from 7.25% to 7.45%[588]. - The Twelfth Amendment requires OppFi-LLC to repay outstanding principal in installments of $20.0 million on March 31, 2025, and $10.0 million on the last day of each subsequent fiscal quarter[591].

Core Insights - The article does not provide specific insights or analysis regarding any companies or industries, focusing instead on disclaimers and disclosures related to the author's position and affiliations [1][2]. Group 1 - No stock, option, or similar derivative positions are held by the author in any mentioned companies, nor are there plans to initiate such positions in the near future [1]. - The article expresses the author's personal opinions and does not involve compensation from any company mentioned [1]. - The views expressed may not reflect those of Seeking Alpha as a whole, and the analysts may not be licensed or certified [2].

With just one subscription to Beyond the Wall Investing , you can save thousands of dollars a year on equity research reports from banks. You'll keep your finger on the pulse and have access to the latest and highest-quality analysis of this type of information.He leads the investing group Beyond the Wall Investing with features that include: a fundamentals-based portfolio, weekly analysis on insights from institutional investors, regular alerts for short-term trade ideas based on technical signals, ticker ...

Core Insights - OppFi, Inc. (NYSE: OPFI) reported strong financial results for Q4 2024, with total revenue of $135.7 million, adjusted net income of $20.3 million, and adjusted EPS of $0.23, surpassing consensus estimates [1][6] - The company achieved a net revenue margin of 59.5%, reflecting a year-over-year expansion of 1,000 basis points from Q4 2023 [1][6] - Total net originations reached $214.0 million, marking an 11% year-over-year increase [6] Financial Performance - Q4 2024 total revenue increased by 2.1% year-over-year, while adjusted net income grew by 140.3% compared to the previous year [1] - For the full year, total revenue rose by 3.3% from FY23, and adjusted net income approximately doubled [1] - The significant growth in net income was highlighted by a 619.7% year-over-year increase, reaching around $14.0 million [1] Future Outlook - The company is expected to maintain its momentum in 2025, driven by a strategic focus on operational efficiencies and credit risk management [1]

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 property of their respective owners. The information conta ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 increased by 2.1% to $135.7 million, with a 320 basis point improvement in average yield to 130% [20] - Adjusted net income more than doubled to $20.3 million from $8.4 million, while adjusted earnings per share grew to $0.23 from $0.10 in Q4 2023 [23] - For the full year 2024, total revenue increased to $526 million, up 3.3% compared to 2023, exceeding guidance [25] - GAAP net income for 2024 increased significantly to $83.8 million, up from $39.5 million in 2023, with diluted EPS at $0.36 compared to a loss of $0.06 in 2023 [26] Business Line Data and Key Metrics Changes - Net originations grew by 11.3% to $213.7 million, with retained net originations rising by 6% to $192.5 million [20] - New customer originations increased by 8.8%, showing improved credit risks with a decrease in annualized net charge-off rate by 430 basis points to 54.5% [21] - The annualized net charge-off rate as a percentage of total revenue improved by 450 basis points to 41.9% [21] Market Data and Key Metrics Changes - The auto approval percentage improved to almost 80% in Q4 2024 from 73% in Q4 2023, enhancing funnel metrics [10] - The company maintained a strong balance sheet with $88.3 million in cash and cash equivalents at the end of Q4 2024 [24] Company Strategy and Development Direction - The company aims to leverage operational excellence and continuous improvement to drive growth, with expectations for a double-digit percentage increase in revenue and adjusted EPS in 2025 [7] - OppFi is focusing on entering additional partnerships and enhancing direct response marketing initiatives to attract high-quality customers [14] - The company is exploring complementary products and potential acquisitions to enhance its digital financial service offerings [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the favorable environment for growth in 2025, supported by a strong balance sheet and positive credit trends [13] - The company anticipates less seasonality in results for 2025 due to improved modeling and operational efficiencies [30] - Management is closely monitoring macroeconomic conditions and consumer repayment trends, indicating readiness to adjust strategies as needed [55] Other Important Information - The company paid down $10 million of corporate debt in Q4 2024 and an additional $20 million in Q1 2025, demonstrating financial strength [24] - The guidance for 2025 includes total revenue of $563 million to $594 million, an increase of 7% to 13%, and adjusted net income of $95 million to $97 million, an increase of 15% to 17% [29] Q&A Session Summary Question: Insights on macro outlook and consumer targeting - Management noted that while macro conditions are uncertain, their Model 6 has better prepared them to handle volatility in consumer repayments [36][37] Question: Drivers of yield increase and revenue guidance assumptions - The increase in yields was attributed to risk-based pricing and improved repayment rates, with expectations for continued growth in 2025 [41][42] Question: Expectations for tax refund season and repayment trends - Management is monitoring the tax refund season closely but does not anticipate significant delays in repayments [44] Question: Confidence in growth for 2025 - Management emphasized their focus on quality over quantity in underwriting and the potential for growth through targeted marketing initiatives [54][55] Question: Success in marketing channels - The company has seen success in auto approvals, which has improved customer experience and conversion rates [57] Question: Plans for cash generation and capital allocation - Management indicated a range of options for capital allocation, including growth initiatives, product development, and potential acquisitions [60][62] Question: Drivers of less seasonality in 2025 - The new corporate seasonal modeling is expected to smooth earnings and generate strong income throughout the year [66] Question: Future of automation in operations - Management aims to continuously improve automation but acknowledges that some human interaction will always be necessary [70][71]

Financial Performance - OppFi Inc. reported quarterly earnings of $0.23 per share, exceeding the Zacks Consensus Estimate of $0.14 per share, and up from $0.10 per share a year ago, representing an earnings surprise of 64.29% [1] - The company posted revenues of $135.72 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.60% and compared to year-ago revenues of $132.92 million [2] - Over the last four quarters, OppFi has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Performance - OppFi shares have increased approximately 22.1% since the beginning of the year, while the S&P 500 has declined by 1.8% [3] - The sustainability of the stock's price movement will depend on management's commentary during the earnings call [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.12 on revenues of $130.66 million, and for the current fiscal year, it is $1 on revenues of $547.12 million [7] - The estimate revisions trend for OppFi is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Financial Transaction Services industry, to which OppFi belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Net income for Q4 2024 increased by $12.0 million year over year to $14.0 million, with an adjusted net income of $20.3 million, reflecting a growth of 140%[9] - For the full year 2024, net income increased by $44.4 million year over year to $83.8 million, with an adjusted net income of $82.7 million, representing a growth of 99%[12] - Q4 2024 net income reached $13.973 million, a significant increase from $1.942 million in Q4 2023, representing a variance of $12.031 million[58] - Full year 2024 net income totaled $83.837 million, compared to $39.479 million in 2023, marking an increase of $44.358 million[59] - Adjusted earnings per share for Q4 2024 was $0.23, compared to $0.10 in Q4 2023[60] - Full year 2024 adjusted earnings per share increased to $0.95 from $0.49 in 2023[61] Revenue Growth - Total revenue for Q4 2024 rose by 2.1% year over year to $135.7 million, driven by an annualized average yield increase of 320 basis points[26] - Total revenue for the full year 2024 increased by 3.3% year over year to $526.0 million, attributed to a 410 basis point increase in average yield[28] - Total revenue for Q4 2024 was $135.723 million, slightly higher than $132.924 million in Q4 2023[58] - Total revenue for the full year 2024 was $525.963 million, a 3.3% increase from $508.949 million in 2023[51] Cash Flow and Financial Management - Full year free cash flow generation for FY 2023 was $51.9 million[44] - Free cash flow for the year ended December 31, 2024, was $96.330 million, up from $51.854 million in 2023, an increase of $44.476 million[63] - The company plans to allocate $30 million for repayment of corporate term loan debt in Q1 2025[43] Credit Quality and Risk Management - The net charge-off rate as a percentage of total revenue decreased by 450 basis points year over year to 41.9%, indicating improved credit initiatives[26] - The net charge-off rate as a percentage of average receivables decreased to 54% from 59% year over year, driven by lower gross charge-offs and higher recoveries[36] - The net charge-off rate as a percentage of total revenue decreased to 39% from 44% year over year, indicating a healthier portfolio[41] Operational Efficiency - The automatic approval rate improved to 79% from 73% year over year, reflecting advancements in algorithmic automation projects[36] - Automatic approval rate improved to 76% from 72% year over year, reflecting successful algorithmic automation projects[41] Originations and Portfolio Management - Total net originations for 2024 reached $802 million, with a 11% year-over-year increase due to bank partners' expansion and enhanced lead evaluation capabilities[39] - Total net originations increased by 7% year over year, driven by bank partners' expansion and enhanced lead evaluation capabilities[41] - Ending receivables increased by 2% year over year to $425 million, supported by growth in retained net originations and healthier portfolio management[36] - Ending receivables rose by 2% year over year, supported by growth in retained net originations and improved credit modeling[41] Yield and Pricing - Average yield increased to 131% from 127% year over year, attributed to a decrease in delinquent loans and pricing initiatives[41] Fair Value Changes - The company reported a change in fair value of warrant liabilities of $10.994 million in Q4 2024, compared to $5.814 million in Q4 2023[58] Earnings Before Tax - Adjusted EBT for the full year 2024 was $108.002 million, significantly higher than $54.283 million in 2023[61] Shareholder Information - Weighted average diluted shares outstanding increased to 87,504,493 in Q4 2024 from 85,721,167 in Q4 2023[60]

Core Insights - OppFi (NYSE: OPFI) is a fintech subprime lender with limited analyst coverage, indicating a potential opportunity for investors to explore an under-researched company [1] Company Overview - The company operates in the fintech sector, specifically focusing on subprime lending, which may attract investors looking for high-risk, high-reward opportunities [1] Analyst Experience - The analyst has over 30 years of experience in various industries, including fintech, which adds credibility to the analysis of OppFi and its business model [1]

Group 1 - OppFi (NYSE: OPFI) has shown significant performance in 2024, frequently recommended by Seeking Alpha's Quant and appearing in various screeners [1] - The company is primarily focused on micro and small-cap stocks, indicating a niche market strategy [1] Group 2 - The article reflects the author's personal opinions and does not represent any formal investment advice or recommendations [2]