Financial Data and Key Metrics Changes - The company achieved record quarterly revenue of $142 million, representing a 13% year-over-year increase [13] - Adjusted net income increased by 59% to a record $39 million, up from $25 million in the previous year [14] - Adjusted earnings per share grew significantly to $0.45 from $0.29 year-over-year [14] - The net charge-off rate improved to 32% of revenue compared to 33% in the prior year [7] - Total expenses before interest expense declined to 39% of revenue from 45% in the same quarter last year [13] Business Line Data and Key Metrics Changes - Total net originations increased by 14% year-over-year [6] - The auto approval rate improved to 80% in Q2 2025, up from 76% in Q2 2024 [7] - Finance receivables increased by 13% to $438 million year-over-year [12] Market Data and Key Metrics Changes - The company noted a strong performance in the small business lending space, capitalizing on supply-demand imbalances [9] - The average loan size increased by approximately $100 year-over-year, reflecting a 10% increase [25][27] Company Strategy and Development Direction - The company plans to migrate to a new loan origination system named LOLA, designed to enhance customer experience and operational efficiencies [8] - The focus remains on becoming a leading tech-enabled digital finance platform collaborating with banks to offer financial products [10] - The company is exploring opportunities for investment and acquisitions to expand its product offerings in the alternative credit space [51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued healthy revenue momentum and profitable growth throughout 2025 [10] - The company is cautious about macroeconomic factors such as inflation and unemployment but remains optimistic about its growth trajectory [20][32] - Management indicated that they are closely monitoring consumer health and charge-off trends while maintaining a disciplined credit approach [32][34] Other Important Information - The company ended the quarter with $78 million in cash and cash equivalents, alongside $306 million in total debt [15] - Total funding capacity was reported at $633 million, including $219 million in unused debt capacity [15] Q&A Session Summary Question: Long-term margin structure and ROE expectations - Management indicated satisfaction with current performance and mentioned a target margin of around 20% as healthy [20][22] Question: Average loan size increase context - The average loan size has increased by about $100 year-over-year, with a focus on adjusting for inflation [25][27] Question: Macro trends and credit quality - Management remains cautious about macroeconomic indicators but has seen strong early data regarding repayment rates [32][44] Question: Marketing expenses and competitive factors - Marketing expenses have increased, but management is optimistic about the results from new initiatives [35][36] Question: Expectations for yields - Management expects yields to remain stable with slight increases due to risk-based pricing strategies [38] Question: LOLA initiative rollout and success metrics - Success will be measured by maintaining current performance levels while integrating new technologies [56] Question: Seasonal trends in guidance - Management expects typical seasonal trends for Q3 and Q4, with no extraordinary macro factors anticipated [61]

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. OppFi shares have added about 30.4% since the beginning of the year versus the S&P 500's gain of 7.1%. What's Next for OppFi? OppFi Inc. (OPFI) came out with quarterly earnings of $0.45 per share, beating the Zacks Consensus Estimate of $0.3 per share. This compares to earnings of $0.29 per share a year ago. The ...

Financial Performance - Total revenue for Q2 2025 increased by 12.8% year-over-year to $142.4 million, a company record[11] - Adjusted Net Income for Q2 2025 was $39.4 million, an increase of $14.6 million year-over-year and a new company quarter record[11] - Net income was $11.5 million, a decrease of $16.2 million year over year[11] - Adjusted EPS increased 55% to $0.45 in Q2 2025[31] Key Performance Indicators - Total net originations increased 14% year-over-year to $234 million[44] - Total retained net originations increased 9% year-over-year to $206 million[44] - Ending receivables increased 13% year-over-year to $438 million[44] - The net charge-off rate as a percentage of total revenue decreased by 60 basis points year-over-year to 31.9%[13] Expense Management - Total expenses as a percentage of total revenue decreased by 610 basis points year-over-year to 38.9%[14] Customer Satisfaction - The company reported a Net Promoter Score (NPS) of 79 for Q2 2025 at the time of loan approval[15] Free Cash Flow and Capital Allocation - $63.8 million of Free Cash Flow was generated in the first half of 2025[51]

[Cover Page](index=1&type=section&id=Cover%20Page) This section identifies the document as OppFi's Q2 2025 Earnings Presentation - OppFi Q2 2025 Earnings Presentation, dated August 6, 2025[1](index=1&type=chunk)[2](index=2&type=chunk) [Legal Disclosures](index=2&type=section&id=Legal%20Disclosures) This section outlines disclaimers, forward-looking statements, non-GAAP measures, and website usage [Disclaimer](index=2&type=section&id=Disclaimer) This section clarifies the presentation is for informational purposes only and not investment advice - Presentation for informational purposes only; no representation or warranty on accuracy; not investment advice[3](index=3&type=chunk)[4](index=4&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section warns that forward-looking statements are subject to risks and uncertainties that may cause actual results to differ - Presentation contains forward-looking statements subject to risks and uncertainties, including economic downturns, inflation, interest rates, and regulatory changes[5](index=5&type=chunk) [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) This section defines non-GAAP measures and states they are supplemental to GAAP, with reconciliations in the appendix - Non-GAAP measures (Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, Free Cash Flow) are provided as additional tools for investors, with definitions and reconciliation to GAAP in the appendix[6](index=6&type=chunk) [No Offer or Solicitation](index=2&type=section&id=No%20Offer%20or%20Solicitation) This section clarifies that the presentation is not an offer to sell or a solicitation to buy securities - Presentation does not constitute an offer to sell or solicit securities[7](index=7&type=chunk) [Website](index=2&type=section&id=Website) This section states website and mobile content references are for information only and not incorporated into SEC filings - Website and mobile content references are for informational purposes only and not incorporated into SEC filings[8](index=8&type=chunk) [Q2 2025 Earnings Highlights](index=3&type=section&id=Q2%202025%20Earnings%20Highlights) OppFi achieved record total revenue and Adjusted Net Income in Q2 2025, driven by 12.8% YoY revenue growth and improved operating efficiency Q2 2025 Financial Highlights | Metric | Q2 2025 | Change YoY | | :--- | :--- | :--- | | GAAP Net Income ($M) | $11.5 | -$16.2 (decrease) | | Adjusted Net Income ($M) | $39.4 | +$14.6 (increase) | | Total Revenue (%) | $142.4 | +12.8% | | Net Income Margin (%) | 8.1% | | | Adjusted Net Income Margin (%) | 27.7% | +810 bps (expansion) | | Total Expenses as % of Total Revenue (%) | 38.9% | -610 bps (decrease) | | Net Charge-Off Rate as % of Total Revenue (%) | 31.9% | -60 bps (decrease) | | Recoveries of Previously Charged Off Receivables (%) | | +26.7% (increase) | - Record quarterly total revenue and Adjusted Net Income achieved[9](index=9&type=chunk) [Company Overview & Strengths](index=4&type=section&id=Company%20Overview%20%26%20Strengths) OppFi is a mission-driven digital finance platform with significant scale, consistent profitability, and strong customer satisfaction [At-A-Glance](index=4&type=section&id=At-A-Glance) OppFi is a tech-enabled digital finance platform serving credit-insecure Americans through bank partnerships - OppFi is a tech-enabled digital finance platform partnering with banks to offer financial products to US consumers facing credit insecurity[11](index=11&type=chunk)[12](index=12&type=chunk) [Mission-driven Platform](index=4&type=section&id=Mission-driven%20Platform) The company delivers best-in-class products and customer service, reflected in a 79 NPS Score® - Achieved a **79 NPS Score®** for best-in-class products and customer service[12](index=12&type=chunk) [Significant Economic Scale](index=4&type=section&id=Significant%20Economic%20Scale) Since inception, OppFi has facilitated over $7.8 billion in gross loan issuance across 4.3 million loans - Facilitated over **$7.8 billion** in gross loan issuance and **4.3 million** loans since inception[12](index=12&type=chunk) [Profitable Across Business Cycles](index=4&type=section&id=Profitable%20Across%20Business%20Cycles) OppFi has demonstrated consistent profitability with 10 consecutive years of positive net income - Achieved **10 consecutive years** of positive net income[12](index=12&type=chunk) [Large Addressable Market](index=4&type=section&id=Large%20Addressable%20Market) The company targets over 60 million US consumers facing credit insecurity and limited traditional credit access - Targets **60+ million** US consumers facing credit insecurity[12](index=12&type=chunk) [Strong Fundamentals and Balance Sheet](index=4&type=section&id=Strong%20Fundamentals%20and%20Balance%20Sheet) Strong operating efficiency drives free cash flow and a robust balance sheet, supporting future growth - Strong operating efficiency drives free cash flow and a robust balance sheet, supporting growth[12](index=12&type=chunk) [Outstanding Customer Satisfaction](index=5&type=section&id=Outstanding%20Customer%20Satisfaction) OppFi maintains high customer satisfaction with a 79 Net Promoter Score (NPS) in Q2 2025 - Achieved a **79 Net Promoter Score (NPS)** in Q2 2025, with strong ratings on Trustpilot (**4.5/5**) and BBB (**A+ Rating**)[15](index=15&type=chunk) [Financial Performance](index=6&type=section&id=Financial%20Performance) This section details OppFi's Q2 2025 financial highlights, including significant Adjusted Net Income expansion and improved profitability drivers [Q2 2025 Financial Highlights](index=7&type=section&id=Q2%202025%20Financial%20Highlights_Financial_Performance) OppFi reported significant Adjusted Net Income expansion in Q2 2025, with a 59% YoY increase to $39 million - Significant Adjusted Net Income expansion year over year, driven by record revenue, improved net charge-off rate, and prudent expense management[20](index=20&type=chunk) Adjusted Net Income and EPS Trends | Metric | Q2 2023 | Q2 2024 | Q2 2025 | YoY Change (Q2 2025 vs Q2 2024) (%) | | :--- | :--- | :--- | :--- | :--- | | Adjusted Net Income ($M) | $16 | $25 | $39 | +59% | | Adjusted EPS ($) | $0.19 | $0.29 | $0.45 | +55% | [Q2 2025 Performance: Improvement Across Key Profitability Drivers](index=8&type=section&id=Q2%202025%20Performance%3A%20Improvement%20Across%20Key%20Profitability%20Drivers) OppFi improved profitability in Q2 2025 with 12.8% YoY revenue growth, reduced net charge-off rate, and lower operating expense margin Key Profitability Drivers (Q2 2025) | Metric | Q2 2023 | Q2 2024 | Q2 2025 | YoY Change (Q2 2025 vs Q2 2024) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue ($M) | $122 | $126 | $142 | +13% | | Net Charge-Off Rate (%) | 36.2% | 32.5% | 31.9% | -60 bps | | Operating Expense Margin (%) | 45.9% | 45.0% | 38.9% | -610 bps | - Total revenue increased **12.8% YoY** due to higher receivables and a **130 bps** increase in annualized average yield[25](index=25&type=chunk) - Net charge-offs as a percentage of total revenue decreased **60 bps YoY**, attributed to a higher yielding portfolio and increased recovery efforts[25](index=25&type=chunk) - Prudent expense management reduced total expenses as a percentage of total revenue by **610 bps YoY**[25](index=25&type=chunk) [Key Performance Indicators (KPIs)](index=9&type=section&id=Key%20Performance%20Indicators%20(KPIs)) OppFi's Q2 2025 KPIs show strong growth in originations and receivables, improved credit quality, and enhanced operational efficiency Q2 2025 Key Performance Indicators | Metric | 6/30/2025 | 6/30/2024 | YoY Change (pp) | | :--- | :--- | :--- | :--- | | Total Net Originations ($M) | $234 | $206 | +14% | | Total Retained Net Originations ($M) | $206 | $189 | +9% | | Ending Receivables ($M) | $438 | $387 | +13% | | Net Charge-Off Rate as % of Total Revenue (%) | 32% | 33% | -1 pp | | Net Charge-Off Rate as % of Avg. Receivables, Annualized (%) | 43% | 44% | -1 pp | | Average Yield, Annualized (%) | 136% | 135% | +1 pp | | Automatic Approval Rate (%) | 80% | 76% | +4 pp | - Total net originations increased **14% YoY** due to increased demand from returning customers and credit model improvements[33](index=33&type=chunk) - Ending Receivables increased **13% YoY** due to a higher starting balance, growth in retained net originations, and term extension initiatives[33](index=33&type=chunk) - Average yield increased to **136%** from **135% YoY**, driven by an increase in the average statutory rate due to pricing initiatives[33](index=33&type=chunk) [Liquidity and Capital Allocation](index=10&type=section&id=Liquidity%20and%20Capital%20Allocation) OppFi generated $63.8 million in Free Cash Flow in 1H 2025 and maintains strong funding capacity with strategic capital allocation Free Cash Flow Generation (1H) | Metric | 1H 2024 | 1H 2025 | YoY Change ($M) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Free Cash Flow ($M) | $74.4 | $63.8 | -$10.6 | -14.2% | Total Funding Capacity (6/30/2025) | Component | Amount ($M) | | :--- | :--- | | Restricted and Unrestricted Cash | $78.3 | | Undrawn Debt | $219.1 | | Drawn Debt | $305.9 | | **Total Funding Capacity** | **$603.3** | - Key capital allocation activities in 2025 include **$30.0 million** repayment of corporate term loan debt, **$50.0 million** upsize to revolving credit facility, and **$28.1 million** for special dividend/distribution[39](index=39&type=chunk) [Full Year 2025 Guidance](index=11&type=section&id=Full%20Year%202025%20Guidance) OppFi raised its full-year 2025 earnings guidance, projecting Adjusted EPS of $1.39 to $1.44 and increased revenue and net income Full Year 2025 Guidance (Raised) | Metric | Previous Guidance | New Guidance | | :--- | :--- | :--- | | Total Revenue ($M) | | $563 - $594 | | Adjusted Net Income ($M) | | $106 - $113 | | Adjusted EPS ($) | $1.18 to $1.26 | $1.39 to $1.44 | - Adjusted EPS of **$1.39 to $1.44** is based on weighted average diluted shares outstanding of approximately **90 million**[43](index=43&type=chunk) [Appendix](index=12&type=section&id=Appendix) This section provides detailed financial statements and reconciliations for Q2 and YTD 2025, including income, balance sheet, and cash flow [Q2 2025 Income Statement](index=13&type=section&id=Q2%202025%20Income%20Statement) Q2 2025 total revenue increased 12.8% YoY to $142.4 million, but net income attributable to OppFi Inc. was a $20.8 million loss Q2 2025 Income Statement Highlights (Thousands) | Metric | Q2 2025 ($) | Q2 2024 ($) | Variance ($) | Variance (%) | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $142,443 | $126,304 | $16,139 | 12.8% | | Net revenue | $100,246 | $86,281 | $13,965 | 16.2% | | Total expenses | $55,438 | $56,794 | ($1,356) | (2.4%) | | Income from operations | $44,808 | $29,487 | $15,321 | 52.0% | | Change in fair value of warrant liabilities | ($33,304) | ($976) | ($32,328) | 3310.8% | | Net income | $11,480 | $27,676 | ($16,196) | (58.5%) | | Net (loss) income attributable to OppFi Inc. | ($20,780) | $3,066 | ($23,846) | (777.7%) | | Diluted EPS ($) | ($0.78) | $0.16 | | | [YTD 2025 Income Statement](index=14&type=section&id=YTD%202025%20Income%20Statement) YTD 2025 total revenue increased 11.5% YoY to $282.7 million, but net income attributable to OppFi Inc. was a $32.2 million loss YTD 2025 Income Statement Highlights (Thousands) | Metric | YTD 2025 ($) | YTD 2024 ($) | Variance ($) | Variance (%) | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $282,711 | $253,647 | $29,064 | 11.5% | | Net revenue | $191,056 | $149,495 | $41,561 | 27.8% | | Total expenses | $103,756 | $114,724 | ($10,968) | (9.6%) | | Income from operations | $87,300 | $34,771 | $52,529 | 151.1% | | Change in fair value of warrant liabilities | ($54,911) | $4,195 | ($59,106) | (1409.1%) | | Net income | $31,870 | $37,807 | ($5,937) | (15.7%) | | Net (loss) income attributable to OppFi Inc. | ($32,152) | $8,603 | ($40,755) | (473.7%) | | Diluted EPS ($) | ($1.28) | $0.36 | | | [Condensed Balance Sheet](index=15&type=section&id=Condensed%20Balance%20Sheet) As of June 30, 2025, total assets increased 5.0% to $673.4 million, while total liabilities rose 12.0% to $455.7 million Condensed Balance Sheet Highlights (Thousands) | Metric | June 30, 2025 ($) | December 31, 2024 ($) | Variance ($) | Variance (%) | | :--- | :--- | :--- | :--- | :--- | | Cash and restricted cash | $78,265 | $88,288 | ($10,023) | (11.4%) | | Finance receivables at fair value | $491,488 | $473,696 | $17,792 | 3.8% | | Total assets | $673,375 | $641,171 | $32,204 | 5.0% | | Total debt | $305,897 | $318,758 | ($12,861) | (4.0%) | | Warrant liabilities | $70,019 | $15,108 | $54,911 | 363.5% | | Total liabilities | $455,670 | $406,958 | $48,712 | 12.0% | | Total stockholders' equity | $217,705 | $234,213 | ($16,508) | (7.0%) | [Condensed Cash Flow Statement](index=16&type=section&id=Condensed%20Cash%20Flow%20Statement) YTD 2025 net cash from operations increased 18.2% to $179.4 million, but increased investing and financing outflows led to a $10.0 million cash decrease Condensed Cash Flow Statement Highlights (Thousands) | Metric | YTD 2025 ($) | YTD 2024 ($) | Variance ($) | Variance (%) | | :--- | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $179,357 | $151,732 | $27,625 | 18.2% | | Net cash used in investing activities | ($115,561) | ($77,344) | ($38,217) | 49.4% | | Net cash used in financing activities | ($73,819) | ($67,494) | ($6,325) | 9.4% | | Net (decrease) increase in cash and restricted cash | ($10,023) | $6,894 | ($16,917) | (245.4%) | [Q2 2025 Adjusted Net Income Reconciliation](index=17&type=section&id=Q2%202025%20Adjusted%20Net%20Income%20Reconciliation) Q2 2025 Adjusted Net Income increased 59.0% YoY to $39.4 million, primarily due to adjustments for warrant liabilities Q2 2025 Adjusted Net Income Reconciliation (Thousands) | Metric | Q2 2025 ($) | Q2 2024 ($) | Variance ($) | Variance (%) | | :--- | :--- | :--- | :--- | :--- | | Net income | $11,480 | $27,676 | ($16,196) | (58.5%) | | Change in fair value of warrant liabilities | $33,304 | $976 | $32,328 | 3310.8% | | Other adjustments, net | $5,542 | $2,932 | $2,610 | 89.0% | | Adjusted EBT | $51,471 | $32,419 | $19,052 | 58.8% | | Adjusted net income | $39,401 | $24,781 | $14,620 | 59.0% | | Adjusted net income margin (%) | 27.7% | 19.6% | | | [YTD 2025 Adjusted Net Income Reconciliation](index=18&type=section&id=YTD%202025%20Adjusted%20Net%20Income%20Reconciliation) YTD 2025 Adjusted Net Income increased 118.2% YoY to $73.2 million, largely excluding warrant liability fair value changes YTD 2025 Adjusted Net Income Reconciliation (Thousands) | Metric | YTD 2025 ($) | YTD 2024 ($) | Variance ($) | Variance (%) | | :--- | :--- | :--- | :--- | :--- | | Net income | $31,870 | $37,807 | ($5,937) | (15.7%) | | Change in fair value of warrant liabilities | $54,911 | ($4,195) | $59,106 | 1409.1% | | Other adjustments, net | $6,152 | $9,136 | ($2,984) | (32.7%) | | Adjusted EBT | $95,649 | $43,907 | $51,742 | 117.8% | | Adjusted net income | $73,219 | $33,562 | $39,657 | 118.2% | | Adjusted net income margin (%) | 25.9% | 13.2% | | | [Q2 2025 Adjusted Earnings per Share Reconciliation](index=19&type=section&id=Q2%202025%20Adjusted%20Earnings%20per%20Share%20Reconciliation) Q2 2025 Adjusted EPS was $0.45, significantly higher than GAAP diluted EPS of ($0.78) due to non-GAAP adjustments Q2 2025 Adjusted EPS Reconciliation (Thousands, except per share) | Metric | Q2 2025 ($) | Per Share (Q2 2025) ($) | Q2 2024 ($) | Per Share (Q2 2024) ($) | | :--- | :--- | :--- | :--- | :--- | | Net income | $11,480 | $0.13 | $27,676 | $0.32 | | Change in fair value of warrant liabilities | $33,304 | $0.38 | $976 | $0.01 | | Other adjustments, net | $5,542 | $0.06 | $2,932 | $0.03 | | Adjusted EBT | $51,471 | $0.58 | $32,419 | $0.38 | | Adjusted net income | $39,401 | $0.45 | $24,781 | $0.29 | | Weighted average diluted shares outstanding | 88,419,961 | | 86,268,511 | | [YTD 2025 Adjusted Earnings per Share Reconciliation](index=20&type=section&id=YTD%202025%20Adjusted%20Earnings%20per%20Share%20Reconciliation) YTD 2025 Adjusted EPS was $0.83, contrasting with GAAP diluted EPS of ($1.28) due to non-GAAP adjustments YTD 2025 Adjusted EPS Reconciliation (Thousands, except per share) | Metric | YTD 2025 ($) | Per Share (YTD 2025) ($) | YTD 2024 ($) | Per Share (YTD 2024) ($) | | :--- | :--- | :--- | :--- | :--- | | Net income | $31,870 | $0.36 | $37,807 | $0.44 | | Change in fair value of warrant liabilities | $54,911 | $0.62 | ($4,195) | ($0.05) | | Other adjustments, net | $6,152 | $0.07 | $9,136 | $0.11 | | Adjusted EBT | $95,649 | $1.08 | $43,907 | $0.51 | | Adjusted net income | $73,219 | $0.83 | $33,562 | $0.39 | | Weighted average diluted shares outstanding | 88,208,125 | | 86,148,477 | | [Free Cash Flow Reconciliation](index=21&type=section&id=Free%20Cash%20Flow%20Reconciliation) YTD 2025 Free Cash Flow decreased 14.2% YoY to $63.8 million, primarily due to increased net cash used in investing activities Free Cash Flow Reconciliation (Thousands) | Metric | YTD 2025 ($) | YTD 2024 ($) | Variance ($) | Variance (%) | | :--- | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $179,357 | $151,732 | $27,625 | 18.2% | | Net cash used in investing activities | ($115,561) | ($77,344) | ($38,217) | 49.4% | | Free cash flow | $63,796 | $74,388 | ($10,592) | (14.2%) |

Core Insights - OppFi Inc. is a tech-enabled digital finance platform that partners with banks to provide financial products and services for everyday Americans [3] - The company emphasizes financial inclusion and exceptional customer experience, targeting consumers underserved by traditional financing options [3] - OppFi's product, OppLoans, has received a high customer rating of 4.5 out of 5 stars on Trustpilot based on over 4,900 reviews [3] Company Presentation - Pam Johnson, CFO of OppFi, will present at the Oppenheimer 28th Annual Technology, Internet & Communications Virtual Conference on August 12, 2025, at 3:45 p.m. ET [1] - A video webcast of the presentation will be available on the company's website and will be archived for 90 days following the event [2] Company Overview - OppFi holds a 35% equity interest in Bitty Holdings, LLC, which provides revenue-based financing and other working capital solutions to small businesses [3]

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].

Core Insights - Both OppFi Inc. (OPFI) and Dave (DAVE) are key players in the fintech sector, focusing on digital lending solutions for customers [1] - DAVE offers small, interest-free cash advances, while OPFI collaborates with banks to provide credit access to subprime and non-prime demographics using AI underwriting [1] Group 1: Dave's Performance - DAVE operates a subscription-based model charging $5 per month, providing various services including ExtraCash and financial management [2] - The ExtraCash service allows borrowing up to $500 without interest or credit checks, achieving a 46% growth in originations and a 29% increase in average revenues per user in Q1 2025 [3] - DAVE's revenue increased by 47% year-over-year, with adjusted EBITDA soaring by 235% in the March quarter, indicating strong operational leverage [3] - The company has improved its credit risk management through CashAI, reducing the 28-day delinquency rate by 18% year-over-year and lowering the provision for credit losses to 0.69% [4][12] - CashAI has enabled DAVE to resolve 90% of customer service tickets without agent involvement, enhancing efficiency [5] Group 2: OppFi's Performance - OPFI targets the underbanked population, leveraging AI and machine learning to serve subprime customers [6] - The company reported a 10.1% year-over-year revenue increase and a 285.1% rise in adjusted net income in Q1 2025, showcasing strong operating leverage [7] - OPFI's Model 6 has significantly reduced the net charge-off rate by 700 basis points from the previous quarter and by 1300 basis points year-over-year [8] - The company achieved a 16% year-over-year growth in net originations, aided by improved credit modeling [9] - An auto-approval rate of 79% reflects OPFI's effective credit evaluation models, enhancing its competitive position [10] Group 3: Financial Estimates and Valuation - The Zacks Consensus Estimate for DAVE's 2025 sales is $475.8 million, indicating a 37.1% year-over-year increase, with EPS expected to rise by 67.2% [13] - For OPFI, the 2025 sales estimate stands at $578.4 million, suggesting a 10% year-over-year growth, with EPS projected to increase by 29.5% [16] - OPFI is trading at a forward P/E ratio of 8.5X, while DAVE is at 18.53X, indicating that OPFI is valued lower than DAVE, making it potentially more attractive [19] Group 4: Comparative Analysis - DAVE is highlighted as the superior investment option in fintech, with significant revenue growth and operational efficiency driven by its AI-powered systems [21] - Despite OPFI's solid credit modeling, DAVE's subscription model, faster user growth, and stronger earnings revisions provide a competitive edge [22] - DAVE holds a Zacks Rank of 1 (Strong Buy), while OPFI has a Zacks Rank of 3 (Hold), further emphasizing DAVE's favorable position in the market [23]

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]