SAN CARLOS, Calif., Nov. 12, 2024 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT), a mission-driven financial services company, today announced that it has closed the previously agreed upon sale of its credit card portfolio to Continental Finance. Completing the transaction reflects a key milestone towards Oportun’s initiative to enhance profitability in 2024 and beyond by simplifying the business and driving performance in its three core products: unsecured personal loans, secured personal loans, and its award- ...

Oportun Financial Corporation (NASDAQ: OPRT ) is a financial services company offering personal lending and savings services, mainly targeting people with thin or no credit files, underserved by the traditional banking system. The company is trying to escape Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in OPR ...

SAN CARLOS, Calif., Oct. 29, 2024 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT) ("Oportun", or the "Company"), a mission-driven financial services company, announced today another important step in its plans to optimize the Company's capital structure and drive improved profitability. Following an extensive review of a range of alternatives led by the Board of Directors, Oportun has entered into a Credit Agreement to refinance its existing corporate financing facility with a new $235 million Senior Secured Ter ...

Core Insights - Oportun has signed a definitive agreement to sell its credit card portfolio to Continental Finance, marking a significant step towards enhancing profitability and simplifying its business model [1][3] - The closing date for the transaction is now expected around November 10, 2024, with an anticipated Adjusted EBITDA impact of approximately $2 million in 2024, down from the previously indicated $4 million [2] - The company expects the transaction to yield an Adjusted EBITDA benefit of about $11 million in 2025 [2] Company Overview - Oportun is a mission-driven financial services company that has provided over $18.7 billion in responsible credit since its inception, saving members more than $2.4 billion in interest and fees [4] - The company focuses on three core products: unsecured personal loans, secured personal loans, and the Set & Save™ savings product [1] Continental Finance Overview - Continental Finance has managed over 5.3 million credit cards and emphasizes excellent customer service and access to innovative credit products for consumers with poor or limited credit [5]

SAN CARLOS, Calif., Sept. 23, 2024 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT), a mission-driven financial services company, today announced the closing of an amendment and extension to its long-term warehouse facility. Features of this facility include: $306 million total commitment Goldman Sachs as senior lender – and Jefferies, as mezzanine lender – both existing, longstanding lenders to Oportun A new two-year revolving period Collateralized by Oportun's unsecured and secured personal loan originations "T ...

SAN CARLOS, Calif., Sept. 16, 2024 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT), a mission-driven fintech, today announced that it will participate in the upcoming Sidoti September Virtual Investor Conference. Oportun's Chief Executive Officer, Raul Vazquez, and Chief Financial Officer & Chief Administrative Officer, Jonathan Coblentz, will present and participate in investor meetings at the conference. The presentation will begin at 2:30 pm ET on September 18th and can be accessed live at this link. A link t ...

SAN CARLOS, Calif., Aug. 26, 2024 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT) today announced that it has been awarded a Top Workplaces 2024 honor by San Francisco Bay Area Top Workplaces. Oportun has been named a top place to work by regional or national publications in each of the last nine years. "We are proud to have been recognized as a top place to work for nine years running," said Raul Vazquez, CEO of Oportun. "It is especially rewarding that these programs are based on employee feedback. We are rele ...

Oportun Financial Corporation (OPRT) reported $250.4 million in revenue for the quarter ended June 2024, representing a year-over-year decline of 6.1%. EPS of $0.08 for the same period compares to $0.06 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $246.12 million, representing a surprise of +1.74%. The company delivered an EPS surprise of +144.44%, with the consensus EPS estimate being -$0.18. While investors scrutinize revenue and earnings changes year-over-year and how they ...

Lending and Credit - The company has extended over $18.7 billion in responsible credit through more than 7.1 million loans and credit cards in its 18-year lending history[94]. - As of June 30, 2024, the average loan size for personal loans originated was $3,252, with a weighted average term of 41 months and an APR of 33.5%[97]. - The average loan size for secured personal loans was $6,789, with a weighted average term of 51 months and an APR of 29.9% as of June 30, 2024[98]. - The average APR of outstanding credit card receivables was 29.8%, with credit lines ranging from $300 to $3,000 as of June 30, 2024[99]. - The company is exploring strategic options for its credit card portfolio, having entered a nonbinding letter of intent to sell the credit card receivable portfolio[99]. Financial Performance - Total revenue for the three months ended June 30, 2024, was $250.4 million, down from $266.6 million in 2023, reflecting a decrease of 6.0%[122]. - Net loss for the three months ended June 30, 2024, was $31.0 million, compared to a net loss of $14.9 million in the same period of 2023[122]. - Aggregate Originations decreased to $434.8 million for the three months ended June 30, 2024, representing a 10.4% decrease from $485.1 million for the same period in 2023[110]. - Total revenue for the six months ended June 30, 2024, was $500.9 million, a decrease of $25.2 million or 4.8% from $526.1 million for the same period in 2023[123]. Charge-Offs and Delinquency - 30+ Day Delinquency Rate improved to 5.0% as of June 30, 2024, down from 5.3% in 2023, attributed to enhanced credit quality[113]. - Annualized Net Charge-Off Rate for the three months ended June 30, 2024, was 12.3%, a slight improvement from 12.5% in 2023[114]. - The total charge-offs, net of recoveries for the three months ended June 30, 2024 was $83,884 thousand, a decrease of $9,596 thousand or 10.3% compared to the same period in 2023[136]. Operating Expenses - The company plans to reduce operating expenses by an additional $30 million annually, having already reduced approximately 12% of corporate staff[105]. - Total operating expenses for the three months ended June 30, 2024, were $109.2 million, compared to $136.1 million in the same period of 2023, reflecting a decrease of 19.7%[178]. - Technology and facilities expense decreased by $14.5 million, or 26.3%, from $55.1 million for the three months ended June 30, 2023, to $40.6 million for the three months ended June 30, 2024[139]. - Sales and marketing expenses decreased by $2.9 million, or 15.3%, from $19.2 million for the three months ended June 30, 2023, to $16.3 million for the three months ended June 30, 2024[141]. Cash Flow and Liquidity - Net cash provided by operating activities for the six months ended June 30, 2024, was $193.6 million, an increase of 7.0% from $179.4 million in the same period of 2023[183]. - Total liquidity as of June 30, 2024, was $1.74 billion, with remaining available capacity of $940.7 million[181]. - The company believes its existing cash balance and anticipated positive cash flows will be sufficient to meet cash operating expenses and capital expenditures for at least the next 12 months[197]. Adjusted Metrics - Adjusted EBITDA for Q2 2024 was $30,221,000, compared to $14,452,000 in Q2 2023, representing a significant increase[169]. - Adjusted Net Income for Q2 2024 was $3,228,000, while in Q2 2023 it was $6,223,000, indicating a decrease in profitability[173]. - Adjusted Earnings Per Share (EPS) for Q2 2024 was $0.08, down from $0.17 in Q2 2023[174]. - Adjusted Operating Efficiency for the three months ended June 30, 2024, was 37.6%, down from 46.1% in the same period of 2023[178]. Fair Value and Portfolio - The net decrease in fair value for the three months ended June 30, 2024 was $136.1 million, which includes a total fair value mark-to-market decrease of $37.7 million and $83.9 million of charge-offs, net of recoveries on Loans Receivable at Fair Value[131]. - The fair value mark-to-market adjustment on Loans Receivable at Fair Value for the three months ended June 30, 2024 included a $(36.2) million adjustment related to the credit card portfolio reclassified to held for sale[131]. - The gross fair value premium as a percentage of loan principal balance increased to 3.43% as of June 30, 2024, compared to 1.78% a year earlier[162]. Strategic Initiatives - The company has launched a new streamlined Lead Generation program for its Lending as a Service partnerships, aiming to expand its member base[101]. - The company entered into a forward flow whole loan sale agreement to sell up to $400.0 million of personal loan originations over a twelve-month period, with $123.2 million transferred during the six months ended June 30, 2024[189]. - The company has entered into a bank partnership program with Pathward, N.A., committing to purchase an increasing percentage of program loans originated by Pathward[195].

Group 1: Earnings Performance - Oportun Financial Corporation reported quarterly earnings of $0.08 per share, exceeding the Zacks Consensus Estimate of a loss of $0.18 per share, and up from earnings of $0.06 per share a year ago, representing an earnings surprise of 144.44% [1] - The company posted revenues of $250.4 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 1.74%, although this is a decrease from year-ago revenues of $266.6 million [2] - Over the last four quarters, Oportun Financial has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - Oportun Financial shares have declined approximately 29.2% since the beginning of the year, contrasting with the S&P 500's gain of 9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.09 on revenues of $247.15 million, and $0.25 on revenues of $994.58 million for the current fiscal year [7] Group 3: Industry Context - The Zacks Industry Rank for Financial - Miscellaneous Services, which includes Oportun Financial, is currently in the top 37% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions can be beneficial for investors [5] - The estimate revisions trend for Oportun Financial is currently favorable, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6]