Core Insights - OppFi Inc. (OPFI) is a technology-driven digital finance platform that specializes in marketing, underwriting, and servicing installment loans to consumers through partnerships with community banks [1] - The company does not finance loans directly but focuses on leveraging technology to enhance its services [1] Company Overview - OppFi operates as a digital finance platform, emphasizing technology in its loan servicing model [1] - The company collaborates with community banks to provide installment loans, indicating a partnership-driven approach to its business model [1] Industry Context - The digital finance sector is increasingly reliant on technology to streamline loan processes and improve customer experience [1] - Partnerships with community banks suggest a trend towards collaboration in the financial services industry, allowing for a broader reach and enhanced service offerings [1]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying stocks that can fulfill this potential is challenging [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - OppFi Inc. (OPFI) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth indicating strong prospects [3] - OppFi's historical EPS growth rate is 95.3%, with projected EPS growth of 57.4% this year, significantly surpassing the industry average of 11.9% [4] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [5] - OppFi's year-over-year cash flow growth is 61.8%, well above the industry average of 5.8% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 19.4%, compared to the industry average of 13.1% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - OppFi's current-year earnings estimates have increased by 10.6% over the past month [7] Group 5: Overall Assessment - OppFi has achieved a Growth Score of A and a Zacks Rank 1 due to positive earnings estimate revisions, indicating it is a potential outperformer for growth investors [9]

Core Insights - The stock price of OppFi Inc. (OPFI) has been on a bearish trend, losing 7.4% over the past four weeks, but a hammer chart pattern suggests a potential trend reversal as buying interest may be increasing [1][2] Technical Analysis - The hammer chart pattern indicates a potential bottom in the stock price, suggesting that selling pressure may be exhausting and that bulls could be gaining control [2][5] - A hammer pattern forms when there is a small candle body with a long lower wick, typically occurring during a downtrend, signaling a possible reversal if it appears at the bottom of the trend [4][5] - The effectiveness of the hammer pattern is enhanced when used alongside other bullish indicators, as its strength is dependent on its placement on the chart [6] Fundamental Analysis - Recent upward revisions in earnings estimates for OPFI serve as a bullish indicator, correlating strongly with near-term stock price movements [7] - Over the last 30 days, the consensus EPS estimate for the current year has increased by 10.6%, indicating that analysts expect better earnings than previously predicted [8] - OPFI holds a Zacks Rank of 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, which typically outperform the market [9][10]

Core Insights - OppFi, Inc. (NYSE: OPFI) reported strong financial results for 3Q25, with total revenue of $155.1 million, adjusted net income of $40.7 million, and adjusted EPS of $0.46, surpassing consensus estimates [1][7] Financial Performance - Total revenue increased by 13.5% year-over-year to $155.1 million, driven by record revenue and growth in new customer originations [1][7] - Adjusted net income rose by 41.0% year-over-year to a record $40.7 million, reflecting improved operating discipline and scale benefits [1][7] - Net income increased by 136.9% year-over-year to $75.9 million, primarily due to lower expenses and a non-cash gain from lower warrant fair value [1] - Adjusted EPS increased to $0.46 from $0.33 in the prior-year period [1] Margins and Growth - Net revenue margin for the quarter was 67.4%, showing a year-over-year expansion of 70 basis points from 3Q24 [1] - Adjusted net income margin expanded by 520 basis points year-over-year to 26.3% [1] Outlook - The company raised its FY25 outlook for the third consecutive quarter, guiding revenue to a range of $590 million to $605 million and adjusted net income to $137 million to $142 million, with adjusted EPS projected between $1.54 and $1.60 [7]

Financial Data and Key Metrics Changes - The company achieved record revenues of $155 million, a 14% increase year-over-year [9] - Adjusted net income reached a record $41 million, representing a 41% year-over-year growth [4][11] - Adjusted earnings per share grew to $0.46 from $0.33 year-over-year [11] - GAAP net income increased by 137% to $76 million, driven by higher revenues and lower expenses [11] Business Line Data and Key Metrics Changes - Net originations grew by 12.5% year-over-year, with almost 50% coming from new customers [3] - Revenue increased by 13.5% year-over-year, with net revenue reaching a quarterly record of $105 million, a 15% increase from the previous year [9][10] - Auto approval rates increased to 79% year-over-year, indicating improved customer approval processes [3] Market Data and Key Metrics Changes - The company reported an increase in net charge-offs as a percentage of revenue to 35%, up from 34% in the same quarter last year [9] - Total expenses before interest expense declined to 30% of revenue, down from 33% year-over-year [10] Company Strategy and Development Direction - The company is focused on becoming a leading tech-enabled digital finance platform, partnering with banks to offer essential financial products [8] - The rollout of Model 6.1 is planned for Q4 2025, aimed at better identifying riskier borrower populations and enhancing risk pricing [5] - The company is investing in the LOLA origination system to leverage AI tools for improved efficiency and customer service [5][29] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued double-digit revenue and adjusted net income growth through 2025 and into 2026 [8] - The company remains disciplined in its growth strategy, emphasizing that it will not chase growth at the expense of higher losses [31] - Management expressed confidence in maintaining strong unit economics despite potential increases in charge-offs [18][41] Other Important Information - The company renewed its credit agreement with Castlelake, improving operating leverage and capacity [3] - A new $150 million credit facility was signed in October, expected to lower future interest expenses [11] - The company repurchased 710,000 shares of Class A common stock for $7.4 million during the quarter [12] Q&A Session Summary Question: Are there any early indicators of household stress affecting performance? - Management noted that while there are some higher early payment stats, overall bank data does not show alarming trends [16][17] Question: Can you elaborate on risk-based pricing and its implications? - Management indicated that risk-based pricing allows for better targeting of lower-risk customers and proper pricing of risk, which is dynamic and monitored regularly [20][21] Question: What are the expectations for yield trends going forward? - Management expects yield to remain stable, with a potential rebound in Q4, supported by risk-based pricing strategies [33][34] Question: How is the company managing its capital allocation? - The company is focused on share repurchases and exploring M&A opportunities while maintaining a strong balance sheet [36] Question: What impact did the recent government shutdown have on customer behavior? - Management stated that they have a hardship program in place and are monitoring the situation closely, but no significant impact has been observed yet [43]

Core Insights - OppFi Inc. (OPFI) reported quarterly earnings of $0.46 per share, exceeding the Zacks Consensus Estimate of $0.31 per share, and up from $0.33 per share a year ago, representing an earnings surprise of +48.39% [1] - The company achieved revenues of $155.09 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.67% and increasing from $136.59 million year-over-year [2] - OppFi shares have increased approximately 30.4% since the beginning of the year, outperforming the S&P 500's gain of 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.28 on revenues of $153.59 million, and for the current fiscal year, it is $1.42 on revenues of $588.89 million [7] - The estimate revisions trend for OppFi was mixed prior to the earnings release, 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 bottom 43% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Repay Holdings (RPAY), another company in the same industry, is expected to report quarterly earnings of $0.20 per share, reflecting a year-over-year decline of -13%, with revenues anticipated to be $76.93 million, down 2.8% from the previous year [9]

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 ...

Financial Performance - Q3 2025 net income reached $75.9 million, a year-over-year increase of $43.9 million, achieving a net income margin of 49.0%[9] - Adjusted net income for Q3 2025 was $40.7 million, up $11.9 million year-over-year, with an adjusted net income margin of 26.3%, expanding by 520 basis points[9] - Total revenue for Q3 2025 increased by 13.5% year-over-year to $155.1 million, marking a new company quarter record[9] - Total net originations for Q3 2025 were $246.1 million, an increase of $27.3 million year-over-year, also a new company quarter record[10] - Total revenue for YTD 2025 reached $437.8 million, a 12.2% increase from $390.2 million in YTD 2024[50] - Net income attributable to OppFi Inc. for Q3 2025 was $41.6 million, representing an increase of 876.5% compared to $4.3 million in Q3 2024[48] - For the three months ended September 30, 2025, net income increased to $75,933,000, representing a 136.9% increase compared to $32,057,000 in the same period of 2024[58] - Total revenue for the three months ended September 30, 2025, was $155,089,000, up from $136,593,000 in 2024, indicating a growth of 13.5%[58] - Adjusted net income for the three months ended September 30, 2025, was $40,727,000, a 41.4% increase from $28,808,000 in 2024[58] - For the nine months ended September 30, 2025, net income was $107,803,000, reflecting a 54.3% increase from $69,864,000 in 2024[62] - Total revenue for the nine months ended September 30, 2025, reached $437,800,000, compared to $390,240,000 in 2024, marking an increase of 12.1%[62] - Adjusted net income for the nine months ended September 30, 2025, was $113,945,000, an 82.7% increase from $62,370,000 in 2024[62] Operational Metrics - Ending receivables as of Q3 2025 were $481.0 million, representing a year-over-year increase of 16%[31] - The net charge-off rate as a percentage of total revenue increased to 35% from 34% year-over-year, while the annualized net charge-off rate as a percentage of average receivables rose to 47% from 46%[35] - The average yield decreased to 133% from 134% year-over-year, primarily due to elevated charge-offs from early summer vintages[35] - The automatic approval rate improved to 79% from 77% year-over-year, reflecting advancements in algorithmic automation projects[35] - Total expenses as a percentage of total revenue decreased by 490 basis points year-over-year to 36.2%[9] - Total expenses for YTD 2025 decreased by 6.4% to $159.9 million from $170.8 million in 2024[50] Cash Flow and Assets - Free cash flow generated was $66 million for the first nine months of 2025, despite accelerating issuance growth[37] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $284.5 million, a 24.1% increase from $229.3 million in 2024[55] - Total assets as of September 30, 2025, were $720.6 million, a 12.4% increase from $641.2 million at the end of 2024[52] - Free cash flow for the nine months ended September 30, 2025, was $66,062,000, down 11.5% from $74,621,000 in 2024[71] Future Guidance and Plans - Adjusted EPS guidance for full year 2025 is raised to a range of $1.39 to $1.44, up from previous estimates[43] - The company plans a $150 million replacement revolving credit facility, reducing financing costs by 150 basis points[41] - The weighted average diluted shares outstanding for adjusted EPS calculation is approximately 89 million[45] Other Notable Changes - The company reported a significant increase in income before income taxes for Q3 2025, which was $81.6 million, up 137.5% from $34.4 million in Q3 2024[48] - The net income margin for the three months ended September 30, 2025, was 49.0%, significantly higher than 23.5% in 2024[58] - The company reported a change in fair value of warrant liabilities of $(31,688,000) for the three months ended September 30, 2025, compared to $1,445,000 in 2024, indicating a significant negative variance[58]

Core Insights - OppFi Inc. reported a record net income of $75.9 million for Q3 2025, marking a 136.9% increase year over year [1] - Adjusted net income reached $40.7 million, a 41.4% increase year over year, also a company record [1] - Total revenue for Q3 2025 was $155.1 million, up 13.5% from the previous year, setting a new quarterly record [1] - The company raised its full-year revenue guidance to between $590 million and $605 million, and adjusted net income guidance to between $137 million and $142 million [1][21] Financial Performance - For the three months ended September 30, 2025, total revenue was $155.1 million, compared to $136.6 million in 2024, reflecting a 13.5% increase [5] - Net income for the same period was $75.9 million, up from $32.1 million in 2024, a 136.9% increase [5] - Adjusted net income for Q3 2025 was $40.7 million, compared to $28.8 million in Q3 2024, a 41.4% increase [5] - Basic EPS increased to $1.48 from $0.21, a 602.1% rise, while diluted EPS rose to $0.77 from $0.21, a 265.4% increase [5] Key Metrics - Total net originations for Q3 2025 were $246.1 million, a 12.5% increase from $218.8 million in Q3 2024 [12] - Ending receivables increased to $481.0 million, up 16.3% from $413.7 million in the previous year [12] - The auto-approval rate improved to 79.1%, up from 76.8% year over year, indicating enhanced operational efficiency [12] Guidance and Outlook - The company raised its full-year revenue guidance to between $590 million and $605 million, and adjusted net income guidance to between $137 million and $142 million [1][21] - Adjusted EPS guidance for the full year is now projected to be between $1.54 and $1.60 [21] Strategic Positioning - The CEO highlighted the company's strategic positioning with the Model 6.1 refit and risk-based pricing to mitigate exposure during economic volatility [2] - Auto approval rates have increased, contributing to improved operational efficiency year over year [2]

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].