Group 1 - The underbanked and non-prime consumer market presents a significant opportunity for fintech lenders like OppFi to establish a substantial market presence [1] - OppFi has experienced a stellar year, indicating strong performance and potential for growth within the fintech sector [1] Group 2 - The investment case for OppFi is evaluated based on its market positioning and the demand from underbanked consumers [1] - The analysis highlights the importance of understanding macroeconomic trends and corporate earnings in assessing the investment potential of fintech companies [1]

Stonegate Capital Partners Updates 1Q25 Report on OppFi, Inc. (OPFI)May 08, 2025 8:34 AM EDT | Source: Reportable, Inc. Dallas, Texas--(Newsfile Corp. - May 8, 2025) - OppFi, Inc. (NYSE: OPFI) : Stonegate Capital Partners Updates Coverage on OppFi (NYSE: OPFI). OPFI reported revenue, adj. Net Income, and adj. EPS of $140.3M, $33.8M, and $0.38, respectively. This compares to our/consensus estimates of $141.5M/$137.7M, $23.4M/$22.5M, and $0.26/$0.25. Net revenue margin was 64.7% for the quarter, ...

Core Insights - The article discusses the disappointing performance of companies that went public during the SPAC boom in the early 2020s, highlighting a mismatch between high demand for SPACs and the availability of quality companies to acquire [1]. Group 1 - The SPAC boom saw a surge in demand, but many of the resulting public companies have underperformed significantly [1]. - There is a noted lack of high-quality supply to meet the overwhelming demand for SPACs during this period [1]. Group 2 - Ian Bezek, a former hedge fund analyst, has extensive experience in conducting on-the-ground research in Latin American markets, focusing on countries like Mexico, Colombia, and Chile [2]. - Bezek specializes in identifying high-quality compounders and growth stocks at reasonable prices in both the US and developed markets [2].

Daniel Sereda is chief investment analyst at a family office whose investments span continents and diverse asset classes. This requires him to navigate through a plethora of information on a daily basis. His expertise is in filtering this wealth of data to extract the most critical ideas. He runs the investing group Beyond the Wall Investing in which he provides access to the same information that institutional market participants prioritize in their analysis. Learn moreAnalyst’s Disclosure: I/we have a ben ...

Financial Data and Key Metrics Changes - The first quarter of 2025 was a record quarter for the company, achieving record quarterly revenue, adjusted net income, and operating margin [5] - Total revenue increased to a record $140 million, up 10% year over year [13] - Adjusted net income increased 285% to a record $34 million, up from $9 million in the prior year [15] - Adjusted earnings per share grew significantly to $0.38 from $0.10 last year [15] - The annualized net charge off rate improved to 35% from 48% [9][15] Business Line Data and Key Metrics Changes - Net originations grew 16% to $189 million, with retained net originations increasing 11% to $169 million [13] - The auto approval rate improved to 79% in Q1 2025, up from 73% in Q1 2024 [9] - Model six continued to perform well, improving risk identification and facilitating optimized targeting for new approvals [7][9] Market Data and Key Metrics Changes - The company noted a significant imbalance between supply and demand for working capital among small businesses, particularly in the Biddy segment [10] - The company is actively monitoring macroeconomic factors, including tariffs and their impact on small businesses [24] Company Strategy and Development Direction - The company aims to become a leading tech-enabled digital finance platform, collaborating with banks to offer financial products and services [11] - The focus remains on profitable growth, operational efficiencies, and exploring inorganic growth opportunities [26][28] - The company is committed to maintaining a disciplined approach to growth and not loosening the credit box despite improved repayment rates [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong revenue momentum and profitable growth throughout 2025 and into 2026 [11] - The company anticipates that operational improvements and investments will continue to generate strong results [12] - Management noted stability in consumer behavior and a solid economic environment, with no significant changes in customer patterns observed [41] Other Important Information - The company paid off its corporate debt in Q1 2025 and maintained a strong balance sheet with $91 million in cash and cash equivalents [6][15] - A special dividend of $21.7 million was paid in Q2, reflecting the company's financial strength [7] Q&A Session Summary Question: What changed regarding adjusted net income from the previous guidance? - Management indicated that operational efficiencies and strong repayment rates contributed to better-than-expected results [20][22] Question: Are there any hesitations regarding investments in the small business side with Biddy? - Management confirmed that they are actively assessing underwriting and potential impacts from tariffs but remain optimistic about Biddy's growth [24] Question: What is the thought process behind moving towards a more regular quarterly dividend? - Management emphasized the importance of preserving flexibility for capital deployment while rewarding shareholders [26] Question: What criteria is the company looking for in inorganic opportunities? - Management highlighted interest in the SMB space and consumer POS space, focusing on synergies and cross-sell opportunities [27][28] Question: How is the company managing its credit box amid macro trends? - Management stated that they are maintaining a disciplined approach and not loosening the credit box despite improved repayment rates [34] Question: What are the customer patterns observed in light of macro events? - Management reported stability in consumer behavior and no significant changes in borrowing activities [41] Question: How many more levers does the company have for cost discipline? - Management indicated that continuous improvement and operational efficiency are ingrained in the company culture, with ongoing efforts to enhance auto approval rates [45][46] Question: How is the outlook for Q2 tracking so far? - Management expressed positive momentum for growth and confidence in achieving significant growth this year [52]

Financial Data and Key Metrics Changes - The first quarter of 2025 was a record quarter for the company, achieving record quarterly revenue, adjusted net income, and operating margin [5][11] - Total revenue increased to $140 million, up 10% year over year, while adjusted net income surged 285% to a record $34 million, up from $9 million [13][15] - Adjusted earnings per share grew significantly to $0.38 from $0.10 last year [15] - The annualized net charge off rate improved to 35% from 48%, and total expenses before interest expense declined to $38 million, an 18% decrease [8][15] Business Line Data and Key Metrics Changes - Net originations grew 16% to $189 million, with retained net originations increasing 11% to $169 million [13] - The auto approval rate improved to 79% in Q1 2025, up from 73% in Q1 2024, contributing to a 44% increase in net revenue to $91 million [8][14] - The company’s investment in Biddy continued to drive profitability and cash flow, indicating strong performance in the small business financing sector [10] Market Data and Key Metrics Changes - The company noted a significant imbalance between supply and demand for working capital among small businesses, highlighting growth opportunities in this market [10] - The credit quality of the customer base improved, resulting in a 15% decrease in gross charge offs to $59 million and a 25% increase in recoveries to $11 million [13] Company Strategy and Development Direction - The company is focused on becoming a leading tech-enabled digital finance platform, collaborating with banks to offer financial products and services to everyday Americans [11] - The strategy includes exploring new direct response initiatives and expanding marketing channel partners to sustain growth [6] - The company is actively looking for inorganic growth opportunities, particularly in the small business and consumer POS spaces [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong revenue momentum and profitable growth throughout 2025 and into 2026 [11] - The company anticipates that operational improvements and investments will continue to generate strong results for the foreseeable future [12] - Management noted stability in consumer behavior despite macroeconomic uncertainties, with no significant changes observed in customer patterns [42] Other Important Information - The company paid off its corporate debt in Q1 2025 and maintained a strong balance sheet with $91 million in cash and cash equivalents [6][15] - A special dividend of $21.7 million was paid, reflecting the company's financial strength and commitment to rewarding shareholders [7][25] Q&A Session Summary Question: What changed regarding the adjusted net income beat from the previous guidance? - Management indicated that operational efficiencies and strong repayment rates contributed to better-than-expected results [20][22] Question: Are there any hesitations in investing in small businesses due to macro uncertainty? - Management confirmed that they are actively assessing underwriting and believe Biddy's short-duration products position them well to navigate uncertainties [23][24] Question: What is the thought process behind moving towards regular dividends? - Management emphasized the importance of preserving flexibility for capital deployment while rewarding shareholders [26][27] Question: What are the criteria for potential inorganic opportunities? - Management is focused on the small business space and consumer POS, looking for synergies with current offerings [28] Question: How is the yield and credit box performing amid macro trends? - Management stated they have maintained discipline in their credit box, leading to improved yields due to better repayment rates [34] Question: Are there plans for share repurchases? - Management is considering share repurchases but is weighing it against other attractive capital options [36] Question: What are the current customer patterns in light of macro events? - Management reported stable customer behavior and no significant changes in borrowing activities [41][42] Question: How many more levers are available for cost discipline? - Management highlighted continuous improvement in operational efficiency as a core focus, with ongoing efforts to enhance auto approval rates [45][46] Question: What is the outlook for Q2 and the remainder of the year? - Management expressed optimism about growth momentum and the execution of their larger vision for the business [50][52]

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. OppFi Inc. (OPFI) came out with quarterly earnings of $0.38 per share, beating the Zacks Consensus Estimate of $0.26 per share. This compares to earnings of $0.10 per share a year ago. These figures are adjusted for non- ...

OppFi .. Q1 2025 Earnings Presentation No Offer or Solicitation This Presentiation ices not corstitution of an other to skilation of an other to by, any securities not any sale of setudies in any sale of securities in which such dee wou be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act. May 7, 2025 Disclaimer This presentation, the Pesentation (i of CopiF in the Consan(") is for information pupposes only. Caftar information pupposes only. Caftar information ...

Non-GAAP Financial Measures Q1 2025 Earnings Presentation May 7, 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 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 thi ...

Core Viewpoint - OppFi Inc. (OPFI) is expected to report first-quarter 2025 results on May 7, with revenue estimates of $137.7 million, indicating an 8.1% growth year-over-year, and earnings per share estimated at 26 cents, reflecting over 100% growth from the previous year [1] Financial Performance - The company has a strong earnings surprise history, beating the Zacks Consensus Estimate in the last four quarters with an average earnings surprise of 73% [2] - OPFI's Earnings ESP is currently at 0.00%, and it holds a Zacks Rank of 1 (Strong Buy) [3][4] Market Position and Strategy - OppFi's strategy focuses on providing affordable credit to underbanked customers, a market projected to grow at a 13% CAGR, reaching $7 trillion by 2032 [5] - The company targets subprime and non-prime credit holders often overlooked by traditional financial institutions [6] Stock Performance - OppFi shares have increased by 245.3% over the past year, outperforming the industry average of 21.7% and the Zacks S&P 500 composite's 10.7% rise [7] - The stock is currently trading at a trailing 12-month price-to-earnings ratio of 8.70, significantly lower than the industry average of 22.84 and cheaper than peers Corpay and Evertec [10] Operational Efficiency - In Q4 2024, total net originations grew by 11% year-over-year, driven by bank partners expanding into new states and improved lead evaluation capabilities [11] - The proportion of net charge-offs to revenue decreased from 46% to 42%, indicating better asset quality and risk management [12] - The company's machine learning models improved credit evaluation, increasing average yield to 130% from 127% year-over-year [13] - Automated loan approval technology approved 79.5% of loans without human intervention, a 630 basis point increase from the previous year, enhancing cost management [14] Investment Outlook - OppFi is positioned to benefit from bank partnerships and improved risk management through its machine learning models, which reduce losses [15] - The company is fundamentally strong with a discounted valuation, suggesting potential for continued stock price appreciation [17]