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]

Core Viewpoint - OppFi Inc. (OPFI) has experienced a significant stock price increase of 194.6% over the past six months, outperforming its industry and the S&P 500 Composite [1][7]. Group 1: Stock Performance - OPFI's stock is currently trading above its 50-day moving average, indicating a bullish sentiment among investors [4]. - Compared to close competitors, CompoSecure, Inc. (CMPO) and PAR Technology Corporation (PAR), which gained 38.4% and 25.5% respectively, OPFI's performance is notably superior [7]. Group 2: Market Opportunity - There is a rising demand for digital banks, particularly among underbanked customers, with nearly 60 million U.S. consumers identified as credit marginalized, presenting a substantial market opportunity for OppFi [8]. - OPFI can underwrite riskier loans at lower rates than traditional financial institutions, addressing the needs of customers living paycheck to paycheck [9]. Group 3: Valuation and Financial Metrics - OppFi shares are considered undervalued, trading at 13.1 times forward 12-month earnings per share, compared to the industry average of 25.8 times [10]. - The trailing 12-month EV-to-EBITDA ratio for OPFI is 10.1 times, below the industry's average of 14.8 times [10]. - In Q3 2024, OPFI's current ratio of 1.53 exceeds the industry average of 1.24, indicating a strong liquidity position [11]. Group 4: Revenue and Earnings Growth - The Zacks Consensus Estimate for OppFi's revenues in 2024 and 2025 is $520 million and $547.1 million, reflecting year-over-year growth of 2.2% and 5.2% respectively [13]. - The consensus estimate for OPFI's earnings per share for 2024 and 2025 stands at 86 cents and $1, suggesting increases of 68.6% and 16.3% year-over-year [13]. Group 5: Strategic Moves and Risks - OppFi's acquisition of a 35% equity interest in Bitty Advance aims to expand into small business financing, although challenges in scaling and market conditions may pose risks [16][17]. - The ability to underwrite riskier loans could lead to increased charge-offs if consumer creditworthiness declines, impacting the company's bottom line [15].

Group 1 - The article highlights the availability of high-quality analysis on Wall Street buying and selling ideas through a subscription service called Beyond the Wall Investing [1] - Daniel Sereda is identified as the chief investment analyst at a family office, emphasizing his role in navigating extensive information to extract critical investment ideas [1] - The investing group provides access to information prioritized by institutional market participants, indicating a focus on professional-grade analysis [1] Group 2 - The article mentions a free trial and a special discount of 10% for new subscribers, suggesting an incentive for potential investors to join the service [1] - It is noted that the analyst has a beneficial long position in OPFI shares, indicating a personal investment interest that may influence the analysis [1]

Company Overview - OppFi Inc. (NYSE: OPFI) is a specialty financial company focused on expanding credit access for underserved populations in the United States by offering products such as installment loans, payroll deduction secured loans, and credit cards [1] Analyst Insights - Daniel Sereda, a chief investment analyst at a family office, emphasizes the importance of filtering vast amounts of data to extract critical investment ideas, highlighting the need for high-quality analysis in the financial sector [1] Investment Group - The investing group "Beyond the Wall Investing" provides access to information prioritized by institutional market participants, indicating a focus on delivering valuable insights for investors [1]

Core Viewpoint - The article emphasizes the importance of confirming the sustainability of stock trends for profitable short-term investing, highlighting the use of a specific screening strategy to identify stocks with strong fundamentals and positive price momentum [1][2][3]. Group 1: Stock Screening Strategy - The "Recent Price Strength" screen is designed to identify stocks with sufficient fundamental strength to maintain their recent uptrend, focusing on those trading in the upper portion of their 52-week high-low range, indicating bullishness [3]. - OppFi Inc. (OPFI) is highlighted as a suitable candidate that passed through this screening process, showing a significant price increase of 110.1% over the past 12 weeks, reflecting investor confidence [4]. - OPFI has also demonstrated a price increase of 107.8% over the last four weeks, indicating that the upward trend is still intact, and it is currently trading at 99% of its 52-week high-low range, suggesting a potential breakout [5]. Group 2: Fundamental Strength - OPFI carries a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. - The Zacks Rank system has a strong historical performance, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988, indicating the reliability of this ranking system [7]. - The Average Broker Recommendation for OPFI is also 1 (Strong Buy), reflecting high optimism from the brokerage community regarding the stock's near-term performance [7]. Group 3: Additional Insights - The article suggests that OPFI's price trend is unlikely to reverse soon, and there are other stocks that also meet the criteria of the "Recent Price Strength" screen, encouraging investors to explore these options [8]. - The article mentions the availability of over 45 Zacks Premium Screens tailored to different investing styles, which can assist in identifying potential winning stock picks [8].

OppFi Inc. (OPFI) shares soared 11.1% in the last trading session to close at $13.88. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 65.2% gain over the past four weeks.The upside can be attributed to OppFi’s digitally native platform, powered by a scalable and modern technology stack. This platform integrates proprietary risk models and iterative data analytics, providing significant scalability, cost efficiency and customer ex ...

For several years, OppFi Inc. (NYSE: OPFI ) was an under-the-radar financial technology company that frequently traded below its $10 SPAC reference price. However, over the past year, the company has started to pick up some momentum, notably in the form of investor interest.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own ...