OppFi (NYSE:OPFI) Q3 2025 Earnings Call October 29, 2025 09:00 AM ET Speaker3Good morning and welcome to OppFi's third quarter 2025 earnings conference call. All participants are in a listen-only mode. As a reminder, this conference call is being recorded. Following management's presentation, a question and answer session will be held. For those listening by dial-in, you will be prompted to enter the queue after the prepared remarks. I am pleased to introduce your host, Mike Gallentine, Head of Investor Rel ...

OppFi Inc. (OPFI) came out with quarterly earnings of $0.46 per share, beating the Zacks Consensus Estimate of $0.31 per share. This compares to earnings of $0.33 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +48.39%. A quarter ago, it was expected that this company would post earnings of $0.3 per share when it actually produced earnings of $0.45, delivering a surprise of +50%.Over the last four quarters, the company has sur ...

Q3 2025 Earnings Presentation October 29, 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 sces 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 pro ...

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Accessibility StatementSkip Navigation Net income increased 136.9% year over year to $75.9 million, a Company record for any quarter Adjusted net income increased 41.4% year over year to $40.7 million, a Company record for any quarter Total revenue increased 13.5% year over year to $155.1 million, a Company record for any quarter Raised full year revenue guidance to between $590 million and $605 million, adjusted net income to between $137 million and $142 million, and adjusted EPS to between $1.54 and $1.6 ...

Core Insights - OppFi Inc. (NYSE:OPFI) is positioned as a leading credit services stock amid the US rate cut, having secured a new $150 million revolving credit facility with Castlelake L.P. [1][2] - The new credit facility features improved financing terms, with an interest rate set at SOFR plus 6.0%, and is expected to support growth in receivables and expand access to underserved borrowers [1][2]. - The company reported a 31% year-over-year revenue increase and has a strong liquidity position, indicated by a current ratio of 19.57 [2]. Company Overview - OppFi Inc. operates as a tech-enabled financial platform that provides installment loans to consumers, particularly those underserved by traditional banks, through its OppLoans platform [3]. - The company collaborates with banks to offer financial products and employs a data-driven approach, utilizing over 500 attributes to assess creditworthiness [3]. - OppFi holds a 35% stake in Bitty Holdings, which offers funding solutions to small businesses, further diversifying its financial services [2].

Core Insights - Both OppFi Inc. (OPFI) and SoFi Technologies (SOFI) are positioned in the fintech lending sector, with OPFI focusing on underserved non-prime customers and SOFI targeting mass-market consumers [1] Group 1: OppFi Inc. (OPFI) - OPFI's niche strategy for non-prime customers allows it to tap into a fintech market projected to grow at a CAGR of 15.3% from 2025 to 2030 [2] - In Q2 2025, OPFI reported a 12.8% year-over-year revenue growth and a 13.8% increase in net originations, with an improved loan auto approval rate of 80% [3] - Management forecasts full-year revenues between $578 million and $605 million, up from a previous estimate of $563 million to $594 million, and expects adjusted net income to rise to $125-$130 million from $106-$113 million [4] - OPFI's forward P/E ratio is 6.93, significantly lower than its 12-month median of 8.52, indicating a cheaper valuation compared to SOFI [14] Group 2: SoFi Technologies (SOFI) - SOFI added 850,000 members in Q2 2025, bringing total membership to 11.7 million, a 34% year-over-year increase [6] - The company achieved a 34% year-over-year growth in product adoption, with 35% of new products taken up by existing members, indicating effective customer engagement [7] - SOFI's annualized fee-based revenues exceeded $1.5 billion, and its adjusted EBITDA margin expanded by 600 basis points, showcasing improved profitability [8] - SOFI's forward P/E ratio stands at 54.82, higher than its median of 50.59, reflecting a premium valuation compared to OPFI [14] Group 3: Comparative Analysis - OPFI's estimated sales and EPS for 2025 indicate year-over-year growth of 12% and 49.5%, respectively, with no recent changes in analyst estimates [12] - SOFI's 2025 sales and EPS estimates show year-over-year increases of 32.3% and 113.3%, with three upward revisions in the past 60 days [13] - Both companies exhibit strong growth narratives, but OPFI's risk management and optimistic guidance enhance investor confidence, making it a potentially more attractive investment due to its lower valuation [16]

Core Insights - OppFi Inc. (OPFI) is set to report its third-quarter 2025 results on October 29, with revenue expectations of $152.6 million, reflecting an 11.7% year-over-year growth, while earnings per share are projected to decline by 6.1% to 31 cents [1][9] Financial Performance - The company has a strong earnings surprise history, having beaten the Zacks Consensus Estimate in the last four quarters with an average surprise of 54.4% [2] - Current earnings expectations indicate a low chance of an earnings beat, with an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [3][4] Strategic Initiatives - OppFi's customer-first strategy is expected to drive revenue growth, supported by AI and machine learning models, which have improved the loan auto approval rate to 80% from 76% year-over-year [5][6] - The company reported a Net Promoter Score of 79, indicating strong customer satisfaction and the effectiveness of its customer-driven approach [6] Stock Performance - OppFi's stock has surged 88.9% over the past year, outperforming the industry and the S&P 500 composite, which rose by 18.9% [7][9] - The stock is currently trading at a trailing 12-month price-to-earnings ratio of 6.93, significantly lower than the industry average of 21.58 and its peers FirstCash (16.26) and Corpay (11.97) [11] Risk Management - OppFi has shown effective risk mitigation strategies, with a notable decline in its Net Charge-Off rate, which dropped by 400 basis points year-over-year in Q4 2024 and further declines in the first two quarters of 2025 [14][15] - The company maintains a strong liquidity position, with a current ratio of 1.72, above the industry average of 1.17, indicating its capability to cover short-term obligations [16] Conclusion - The company's customer-first strategy and risk management initiatives are expected to support revenue growth, although the outlook for earnings remains less favorable [18] - Investors are advised to monitor the stock closely for potential entry points, given the challenges ahead of the earnings release [19]

Core Insights - OppFi Inc. (OPFI) shares have increased by 104.2% over the past year, significantly outperforming its industry growth of 5.8% and the Zacks S&P 500 Composite's 18.1% rise [1][9] - Recent performance indicates a correction phase, with OPFI shares declining by 3% in the past month, while the industry fell by 6.6% and the S&P 500 rose by 3.6% [4][22] Company Strengths - OppFi targets the underbanked population, utilizing AI and machine learning to assess credit profiles, which enhances service speed [6] - The loan auto approval rate reached 80% in Q2 2025, up from 76% in the previous year, and a Net Promoter Score of 79 indicates strong customer satisfaction [7] - The Net Charge-Off (NCO) rate has decreased, with a notable drop of 400 basis points to 42% in Q4 2024, and further declines of 700 bps and 300 bps in subsequent quarters, showcasing effective risk management [8][10] Valuation and Liquidity - OppFi's stock is trading at 6.91 times forward earnings, significantly lower than the industry average of 20.2 times, indicating a potentially attractive investment opportunity [11] - The trailing 12-month EV-to-EBITDA ratio stands at 4.55 times, below the industry average of 12.12 times, suggesting growth potential [11] - The current ratio improved to 1.72 in Q2 2025 from 1.57 a year ago, surpassing the industry average of 1.17, indicating strong short-term obligation coverage [14] Revenue and Earnings Outlook - The Zacks Consensus Estimate projects OPFI's 2025 revenues at $588.9 million, reflecting a 12% year-over-year growth, with earnings per share expected to rise by 49.5% [16] Challenges - The core business model involves lending to subprime borrowers, which carries inherent credit default risks, with 28% of consumers in the 580-669 credit score range likely to become seriously delinquent [17] - Competition in the fintech market is intensifying, with threats from companies like SoFi and Dave, which may attract customers away from OppFi [18][19] Strategic Positioning - OppFi's customer-centric strategy leverages AI and ML to manage credit risk while meeting customer demand, positioning the company favorably despite market challenges [20] - The liquidity position and strong revenue and earnings outlook contribute to a positive assessment of the stock, although credit risks and competition remain concerns [21]

Core Insights - OppFi (OPFI) has shown a consistent decline in its Net Charge-Off (NCO) Rate, which decreased from 42% in Q4 2024 to 32% in Q2 2025, indicating improved credit quality [1][2][9] - The company's advanced underwriting model, Model 6, has enhanced loan auto-approval rates from 79% to 80%, contributing to effective risk management [4][5][9] - In Q2 2025, OppFi achieved record revenues of $142 million, reflecting a 12.8% year-over-year increase, alongside a 59% rise in adjusted net income [5][9] NCO Rate Trends - The NCO rate has consistently decreased, moving from 54% in Q4 2024 to 47% in Q1 2025, and further down to 43% in Q2 2025, showcasing the company's effective lending strategy [3][9] - The annualized NCO rate as a percentage of average receivables also followed a downward trend, reinforcing the company's focus on high-quality borrowers [3] Financial Performance - OppFi's revenue growth and profitability are supported by its internal risk-selection strategy, allowing it to navigate economic challenges effectively [6] - The stock has increased by 137.4% over the past year, outperforming competitors like Green Dot and PagSeguro Digital, which saw gains of 22.7% and 16.8%, respectively [7] Valuation Metrics - OppFi trades at a forward price-to-earnings ratio of 7.32, significantly lower than the industry average of 20.32, indicating potential undervaluation [11] - The Zacks Consensus Estimate for OppFi's earnings for 2025 and 2026 has risen by 15.4% and 4.9%, respectively, over the past 60 days [14]