1 1Q 2024 Earnings Presentation May 9, 2024 Forward-looking statements This presentation and the accompanying oral presentation contain forward-looking statements. All statements other than statements of historical fact contained in this presentation and the accompanying oral presentation, including statements as to future performance, results of operations and financial position; statements related to the effectiveness of the Company's cost reduction measures and the impacts on the Company's business; achi ...

For the quarter ended March 2024, Oportun Financial Corporation (OPRT) reported revenue of $250.5 million, down 3.5% over the same period last year. EPS came in at $0.09, compared to -$2.60 in the year-ago quarter.The reported revenue represents a surprise of +0.24% over the Zacks Consensus Estimate of $249.9 million. With the consensus EPS estimate being -$0.12, the EPS surprise was +175.00%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expecta ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number 001-39050 OPORTUN FINANCIAL CORPORATION (Exact Name of Registrant as Specified in its Charter) State or Othe ...

[Oportun First Quarter 2024 Financial Results](index=1&type=section&id=Oportun%20First%20Quarter%202024%20Financial%20Results) Oportun reported a significant reduction in Q1 2024 GAAP net loss and returned to adjusted profitability, raising full-year guidance [Executive Summary and Business Highlights](index=1&type=section&id=Executive%20Summary%20and%20Business%20Highlights) Oportun reported a significant reduction in its Q1 2024 GAAP net loss to $(26) million from $(102) million year-over-year, returning to adjusted profitability First Quarter 2024 Key Financial Results | Metric | GAAP 1Q24 | GAAP 1Q23 | Adjusted 1Q24 | Adjusted 1Q23 | | :--- | :--- | :--- | :--- | :--- | | Total revenue (in millions) | $250 | $260 | | | | Net income (loss) (in millions) | $(26) | $(102) | $3.6 | $(58) | | Diluted EPS | $(0.68) | $(3.00) | $0.09 | $(1.70) | | Adjusted EBITDA (in millions) | | | $1.9 | $(20) | - The company achieved a **$76 million** year-over-year reduction in its GAAP net loss, driven by effective cost reduction efforts that resulted in a **15% sequential** and **25% year-over-year** decline in operating expenses[2](index=2&type=chunk)[3](index=3&type=chunk) - Oportun raised its full-year 2024 guidance, with the midpoint of the Adjusted EBITDA revision reflecting a **31% uplift** and approximately **350% year-over-year growth**[3](index=3&type=chunk) Q1 2024 Business Highlights vs. Prior-Year Quarter | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Aggregate Originations (in millions) | $338 | $408 | | Portfolio Yield (%) | 32.5% | 31.4% | | Managed Principal Balance (in billions) | $3.0 | $3.3 | | Annualized Net Charge-Off Rate (%) | 12.0% | 12.1% | | 30+ Day Delinquency Rate (%) | 5.2% | 5.5% | [Detailed Financial and Operating Results](index=2&type=section&id=Detailed%20Financial%20and%20Operating%20Results) This section provides a detailed breakdown of the drivers behind the Q1 results, including decreased originations, increased portfolio yield, and reduced operating expenses [Operational Drivers](index=2&type=section&id=Operational%20Drivers) Aggregate Originations decreased by 17% YoY to $338 million, mainly due to a smaller average loan size, while Portfolio Yield increased by 113 basis points to 32.5% - Aggregate Originations for Q1 were **$338 million**, a **17% decrease YoY**, primarily driven by a reduction in average loan size from **$4,075 to $2,918** due to a tightened credit posture[9](index=9&type=chunk) - Portfolio Yield increased to **32.5%** from **31.4%** in the prior-year quarter, mainly attributable to higher fees on loans[10](index=10&type=chunk) [Financial Results](index=2&type=section&id=Financial%20Results) Total revenue slightly decreased by 3% to $250 million, but net revenue surged to $79 million due to favorable fair value changes and lower charge-offs - Total revenue for Q1 was **$250 million**, a **3% decrease YoY**, while net revenue was **$79 million**, a significant increase from **$4.8 million YoY** due to a favorable net change in fair value[11](index=11&type=chunk) - Total operating expense for Q1 decreased by **25% YoY** to **$110 million**; the company remains on track to reduce operating expenses to **$97.5 million or below by Q4 2024**[12](index=12&type=chunk) Q1 2024 Profitability vs. Q1 2023 | Metric | 1Q24 | 1Q23 | | :--- | :--- | :--- | | Net Loss (in millions) | $(26) | $(102) | | Adjusted Net Income (Loss) (in millions) | $3.6 | $(58) | | GAAP Diluted EPS | $(0.68) | $(3.00) | | Adjusted EPS | $0.09 | $(1.70) | | Adjusted EBITDA (in millions) | $1.9 | $(20) | [Credit and Operating Metrics](index=2&type=section&id=Credit%20and%20Operating%20Metrics) Credit quality improved with stable charge-off rates and decreased delinquency, while operating efficiency significantly improved due to cost management - The Annualized Net Charge-Off Rate for Q1 was **12.0%**, a slight improvement from **12.1%** in the prior-year quarter[13](index=13&type=chunk) - The 30+ Day Delinquency Rate improved to **5.2%** at the end of Q1, compared to **5.5% YoY** and **5.9%** in the prior quarter[13](index=13&type=chunk) - Operating Efficiency improved by **1,262 basis points to 44% YoY**, while Adjusted Operating Efficiency improved by **1,054 basis points to 41% YoY**, driven by lower operating expenses[14](index=14&type=chunk) - Return on Equity (ROE) improved to **(27)%** from **(82)% YoY**; Adjusted ROE was positive at **4%**, compared to **(47)%** in the prior-year quarter[15](index=15&type=chunk) [Other Products](index=3&type=section&id=Other%20Products) Secured personal loan receivables decreased 12% YoY to $110 million but are being reintroduced, while credit card receivables also declined 17% YoY - Secured personal loan receivables were **$110 million** as of March 31, 2024, down **12% YoY**; Oportun is prudently expanding this product in 2024, having reintroduced it in Texas and Florida[16](index=16&type=chunk) - Credit card receivables stood at **$100 million** as of March 31, 2024, down **17%** from the prior-year quarter[17](index=17&type=chunk) [Funding and Liquidity](index=3&type=section&id=Funding%20and%20Liquidity) As of March 31, 2024, Oportun held $197 million in cash with significant undrawn capacity, though the Cost of Debt increased to 7.5% - As of March 31, 2024, total cash was **$197 million**, and the company had **$591 million** of undrawn capacity on its personal loan warehouse line and **$16 million** on its credit card warehouse line[18](index=18&type=chunk) - Cost of Debt for Q1 2024 was **7.5%**, up from **5.2%** in Q1 2023; Debt-to-Equity was **7.3x**, compared to **6.4x** in the prior-year quarter[18](index=18&type=chunk) [Financial Outlook for Second Quarter and Full Year 2024](index=3&type=section&id=Financial%20Outlook%20for%20Second%20Quarter%20and%20Full%20Year%202024) Oportun raised its full-year 2024 guidance, projecting Total Revenue of $985-$1,010 million and Adjusted EBITDA of $80-$90 million Financial Guidance | | 2Q 2024 | Full Year 2024 | | :--- | :--- | :--- | | Total Revenue (in millions) | $245 - $250 | $985 - $1,010 | | Annualized Net Charge-Off Rate | 12.4% +/- 15 bps | 11.9% +/- 50 bps | | Adjusted EBITDA (in millions) | $14 - $17 | $80 - $90 | [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2024, including the Statement of Operations, Balance Sheet, and Statement of Cash Flows [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2024, Oportun reported total revenue of $250.5 million and a net loss of $26.4 million, a significant improvement from Q1 2023 Condensed Consolidated Statements of Operations (in millions) | | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Total revenue | $250.5 | $259.5 | | Interest expense | $54.5 | $39.0 | | Net decrease in fair value | $(116.9) | $(215.7) | | Net revenue | $79.2 | $4.8 | | Total operating expenses | $109.6 | $146.3 | | Net loss | $(26.4) | $(102.1) | | Diluted Loss per Share | $(0.68) | $(3.00) | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets were $3.28 billion, total liabilities decreased to $2.90 billion, and total stockholders' equity declined to $382.0 million Condensed Consolidated Balance Sheets (in millions) | | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total assets | $3,277.5 | $3,411.9 | | Total liabilities | $2,895.5 | $3,007.5 | | Total stockholders' equity | $382.0 | $404.4 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2024, net cash provided by operating activities was $85.9 million, while net cash used in financing activities was $131.8 million Condensed Consolidated Statements of Cash Flows (in millions) | | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $85.9 | $76.8 | | Net cash provided by (used in) investing activities | $36.5 | $(39.6) | | Net cash used in financing activities | $(131.8) | $(39.1) | | Net (decrease) in cash | $(9.5) | $(1.9) | [Key Performance Metrics](index=10&type=section&id=Key%20Performance%20Metrics) This section highlights key operational and portfolio metrics, including Aggregate Originations of $338.2 million and a Portfolio Yield of 32.5% Consolidated Key Performance Metrics | | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Aggregate Originations (in millions) | $338.2 | $408.0 | | Portfolio Yield (%) | 32.5% | 31.4% | | 30+ Day Delinquency Rate (%) | 5.2% | 5.5% | | Annualized Net Charge-Off Rate (%) | 12.0% | 12.1% | Other Metrics (in millions) | | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Managed Principal Balance at End of Period | $3,027.5 | $3,281.9 | | Owned Principal Balance at End of Period | $2,752.4 | $3,005.0 | | Average Daily Principal Balance | $2,851.7 | $3,069.9 | [Non-GAAP Financial Measures and Reconciliations](index=11&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) Oportun provides definitions and reconciliations for its non-GAAP financial measures, with updated calculation methodologies for better alignment with internal performance views [About Non-GAAP Financial Measures](index=11&type=section&id=About%20Non-GAAP%20Financial%20Measures) This section defines non-GAAP measures like Adjusted EBITDA and Adjusted Net Income, explaining adjustments for non-cash and non-recurring items to clarify core business performance - Beginning with Q1 2024, the company updated its calculation of Adjusted EBITDA and Adjusted Net Income; prior period non-GAAP measures have been updated for comparability[44](index=44&type=chunk) - Adjusted EBITDA is used to evaluate operating results by removing the effect of income taxes, certain non-cash items, interest on corporate financing, non-recurring charges, and fair value mark-to-market adjustments[45](index=45&type=chunk)[47](index=47&type=chunk) - Adjusted Net Income excludes the after-tax impact of non-cash stock-based compensation and certain non-recurring charges to measure operating performance[46](index=46&type=chunk) [Reconciliation of Non-GAAP Financial Measures](index=14&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides detailed tables reconciling GAAP metrics to their non-GAAP counterparts for Q1 2024 and Q1 2023, including Net Loss to Adjusted EBITDA and Adjusted Net Income Reconciliation of Net Loss to Adjusted EBITDA (in millions) | | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net income (Loss) | $(26.4) | $(102.1) | | Adjustments | $28.3 | $81.9 | | Adjusted EBITDA | $1.9 | $(20.2) | Reconciliation of Net Loss to Adjusted Net Income (in millions) | | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net income (Loss) | $(26.4) | $(102.1) | | Adjustments | $31.4 | $44.4 | | Adjusted Net Income (Loss) | $3.6 | $(57.7) | Reconciliation of GAAP EPS to Adjusted EPS | | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Diluted earnings (loss) per share | $(0.68) | $(3.00) | | Adjusted Earnings (loss) Per Share | $0.09 | $(1.70) | [Reconciliation of Forward-Looking Non-GAAP Financial Measures](index=17&type=section&id=Reconciliation%20of%20Forward-Looking%20Non-GAAP%20Financial%20Measures) This section reconciles the company's forward-looking guidance for Adjusted EBITDA to the nearest GAAP measure, Net Loss, for Q2 and full year 2024 Reconciliation of Forward-Looking Adjusted EBITDA Guidance (in millions) | | 2Q 2024 (Low-High) | FY 2024 (Low-High) | | :--- | :--- | :--- | | Net (loss)* | $(13.6) - $(11.3) | $(36.6) - $(28.2) | | Adjustments | $27.6 - $28.3 | $116.6 - $118.2 | | Adjusted EBITDA | $14.0 - $17.0 | $80.0 - $90.0 | - The company notes that it is unable to precisely forecast fair value mark-to-market adjustments, which could impact GAAP net income (loss); the provided GAAP net loss guidance assumes no change in these adjustments[61](index=61&type=chunk)

Wall Street expects a year-over-year increase in earnings on lower revenues when Oportun Financial Corporation (OPRT) reports results for the quarter ended March 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on May 9, 2024, might help the stock move higher if these key numbers are bet ...

PART I [Item 1. Business](index=6&type=section&id=Item%201.%20Business) Oportun is a mission-driven fintech company providing AI-powered financial services to underserved individuals - Oportun has extended over **$17.8 billion** in responsible credit through more than **6.9 million** loans and credit cards since 2005, helping over **1.1 million** people establish credit history[26](index=26&type=chunk) - Oportun loans save borrowers over **$2.4 billion** in interest and fees, being on average **7 times** less expensive than other options[26](index=26&type=chunk) - The Set & Save™ product has helped members set aside over **$10.2 billion** since 2015, with an average of **$1,800** in individual savings per member per year[27](index=27&type=chunk)[28](index=28&type=chunk) - The company's short-term strategy focuses on improving business efficiency, targeting **$105 million** in annual savings in 2024, and enhancing credit quality[35](index=35&type=chunk) - Long-term growth opportunities include deeper penetration in 30 states, increasing secured personal loans, and cross-selling between savings and credit products[36](index=36&type=chunk) - As of December 31, 2023, Oportun had **2,340 full-time** and **125 part-time** employees worldwide, with 435 corporate employees in the U.S[61](index=61&type=chunk) [Company Overview](index=6&type=section&id=Company%20Overview) - Oportun is a mission-driven fintech empowering members with intelligent borrowing, savings, and budgeting capabilities to build financial health[18](index=18&type=chunk)[23](index=23&type=chunk) - More than half of all Americans lack **$1,000** in savings for unplanned expenses, highlighting the need for Oportun's services[19](index=19&type=chunk) - The company has a Net Promoter® Score (NPS) of **79** for its personal loans, indicating strong member satisfaction[22](index=22&type=chunk) [Product Overview](index=6&type=section&id=Product%20Overview) - Oportun offers credit products (unsecured/secured personal loans, credit cards) and a savings product (Set & Save™) via multiple channels[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) - Unsecured personal loans range from **$300 to $10,000** with a cap of **36% APR**; the 2023 average loan was **$4,007** at **32.9% APR**[41](index=41&type=chunk) - Secured personal loans range from **$2,525 to $18,500**; the 2023 average loan was **$7,156** at **28.9% APR**[42](index=42&type=chunk)[43](index=43&type=chunk) - On November 6, 2023, Oportun announced it was exploring strategic options for its credit card portfolio and sunsetting its partnership with Sezzle[29](index=29&type=chunk) [Use of Artificial Intelligence](index=7&type=section&id=Use%20of%20Artificial%20Intelligence) - Oportun uses AI and machine learning for underwriting, pricing, marketing, fraud, servicing models, and its automated Set & Save product[29](index=29&type=chunk) - The company's underwriting models ingest billions of data points to score **100%** of loan applicants, minimizing risk[30](index=30&type=chunk) - Set & Save algorithms classify income and expenses with up to **95% accuracy**, enabling personalized savings decisions[33](index=33&type=chunk) [Our Strategy](index=7&type=section&id=Our%20Strategy) - Short-term priorities include improving business efficiency, with cost-cutting actions expected to save **$105 million** annually in 2024, and enhancing credit quality[35](index=35&type=chunk) - Long-term growth focuses on expanding market penetration, increasing secured personal loans, and developing cross-buying opportunities[36](index=36&type=chunk) - The company plans to invest in AI-driven marketing and expand its Lending as a Service program through partnerships[37](index=37&type=chunk)[38](index=38&type=chunk) [Our Competition](index=8&type=section&id=Our%20Competition) - Oportun competes with consumer finance companies, credit card issuers, fintechs, and various nonbank lenders[45](index=45&type=chunk) - Competitive factors include approval parameters, price, flexibility, and convenience, with Oportun differentiating through its technology and AI platform[46](index=46&type=chunk) [Regulations and Compliance](index=9&type=section&id=Regulations%20and%20Compliance) - Oportun is subject to various federal, state, and local regulatory regimes, including examination by the CFPB and state agencies[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) - The company's bank partnerships also subject it to prudential bank regulators and compliance with laws like the Bank Secrecy Act[51](index=51&type=chunk) [Our Technology Infrastructure](index=9&type=section&id=Our%20Technology%20Infrastructure) - Oportun's technology infrastructure is designed for high availability, resilience, scalability, and security, using multiple cloud availability zones[53](index=53&type=chunk) - A comprehensive cybersecurity program is in place to safeguard data and systems, including a cyber incident response plan[54](index=54&type=chunk) [Our Intellectual Property](index=10&type=section&id=Our%20Intellectual%20Property) - Oportun protects its intellectual property through trademarks, copyrights, and trade secrets, including its proprietary risk model[57](index=57&type=chunk) - The company does not currently patent its proprietary risk model or underwriting process to maintain them as trade secrets[57](index=57&type=chunk) [Our People](index=10&type=section&id=Our%20People) - As of December 31, 2023, Oportun had **2,340 full-time** and **125 part-time** employees; corporate staff was reduced by approximately **40%** in 2023[61](index=61&type=chunk) - The company fosters an inclusive culture, with **88%** of its Board identifying as women or members of an underrepresented group[61](index=61&type=chunk) [Available Information](index=11&type=section&id=Available%20Information) - Oportun's SEC filings are available on its investor relations website and the SEC's website[62](index=62&type=chunk)[63](index=63&type=chunk) [Item 1A. Risk Factors](index=12&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant business, financial, operational, regulatory, and macroeconomic risks - The company faces intense competition from various financial institutions and fintechs, which could harm its results of operations[67](index=67&type=chunk)[68](index=68&type=chunk) - Oportun relies heavily on Pathward, N.A. for a substantial portion of its loan originations (**45% in 2023**), and termination of this relationship could adversely affect the business[73](index=73&type=chunk)[74](index=74&type=chunk) - The company's fair value estimates for loans receivable and asset-backed notes, constituting **87% of total assets** and **79% of total liabilities**, are based on subjective Level 3 inputs[77](index=77&type=chunk)[78](index=78&type=chunk) - Macroeconomic conditions have adversely affected the company's net income, with losses of **$180.0 million in 2023** and **$77.7 million in 2022**[82](index=82&type=chunk)[83](index=83&type=chunk) - The highly regulated financial services industry poses risks from changes in laws, which could increase compliance costs and litigation risk[105](index=105&type=chunk)[188](index=188&type=chunk)[190](index=190&type=chunk) [Business, Financial and Operational Risks](index=12&type=section&id=Business%2C%20Financial%20and%20Operational%20Risks) - Cost-saving measures, including workforce reductions, may disrupt business and not achieve anticipated benefits[69](index=69&type=chunk) - Reliance on proprietary AI credit risk models carries risks of errors, potentially leading to higher loan losses[91](index=91&type=chunk)[93](index=93&type=chunk) - The company's unsecured loans and credit card receivables are not collateralized, increasing the risk of losses from defaults[95](index=95&type=chunk) - Quarterly results are highly seasonal, with lower loan originations in Q1, and are subject to significant fluctuations[99](index=99&type=chunk)[100](index=100&type=chunk) [Funding and Liquidity Risks](index=15&type=section&id=Funding%20and%20Liquidity%20Risks) - Oportun relies on securitization and debt financing, but availability on favorable terms is not assured, especially with rising interest rates[71](index=71&type=chunk)[72](index=72&type=chunk) - Breaches of covenants in lending agreements could lead to early amortization or default, severely impacting liquidity[166](index=166&type=chunk)[168](index=168&type=chunk) - Inability to securitize loans could force the company to seek more costly alternative financing, negatively impacting results[171](index=171&type=chunk)[173](index=173&type=chunk) - The company maintains cash deposits exceeding federally insured limits, exposing it to risks from bank failures[179](index=179&type=chunk)[180](index=180&type=chunk) [Intellectual Property Risks](index=28&type=section&id=Intellectual%20Property%20Risks) - Protecting proprietary technology, including AI algorithms, is difficult and costly, and failure to do so could harm competitiveness[181](index=181&type=chunk) - The company may be sued for alleged infringement of third-party intellectual property, leading to significant damages or fees[182](index=182&type=chunk)[183](index=183&type=chunk) - Undetected errors in software for credit risk models could lead to approval of risky loans and reputational harm[184](index=184&type=chunk) [Industry and Regulatory Risks](index=29&type=section&id=Industry%20and%20Regulatory%20Risks) - The financial services industry is highly regulated, and changes in laws could adversely affect operations and increase costs[188](index=188&type=chunk)[190](index=190&type=chunk)[191](index=191&type=chunk) - Litigation and regulatory actions, including class actions and CFPB scrutiny, could result in significant fines and reputational harm[192](index=192&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk)[195](index=195&type=chunk) - The CFPB's broad authority could significantly increase regulatory burden and compliance costs for the company[199](index=199&type=chunk)[203](index=203&type=chunk)[204](index=204&type=chunk) - Bank partnership products carry regulatory risks, including challenges to the 'true lender' theory, which could impact profitability[209](index=209&type=chunk)[210](index=210&type=chunk) [General Risk Factors](index=33&type=section&id=General%20Risk%20Factors) - Future issuance of common stock could dilute existing stockholders' ownership[215](index=215&type=chunk) - The price of common stock may be volatile due to various factors, potentially leading to loss of investment[217](index=217&type=chunk)[218](index=218&type=chunk) - Directors, officers, and principal stockholders have substantial control, potentially limiting other stockholders' influence[223](index=223&type=chunk) [Item 1B. Unresolved Staff Comments](index=36&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reported no unresolved staff comments from the SEC [Item 1C. Cybersecurity](index=36&type=section&id=Item%201C.%20Cybersecurity) Oportun maintains a comprehensive Cybersecurity Program overseen by senior management and the Audit and Risk Committee - Oportun's Cybersecurity Program includes ongoing monitoring, third-party audits, penetration tests, and a cyber incident response plan[237](index=237&type=chunk)[238](index=238&type=chunk)[239](index=239&type=chunk) - The Audit and Risk Committee oversees cybersecurity risk, with the CISO providing quarterly updates on the program[242](index=242&type=chunk)[243](index=243&type=chunk) - As of the report date, no cybersecurity threats have materially affected the company's business, operations, or financial condition[244](index=244&type=chunk) [Risk Management and Strategy](index=36&type=section&id=Risk%20Management%20and%20Strategy) - The Cybersecurity Program includes administrative and technical controls, policies, and management oversight to safeguard data and systems[237](index=237&type=chunk) - Third-party risk management involves pre-onboarding security evaluations and ongoing monitoring for service providers[238](index=238&type=chunk) [Governance](index=36&type=section&id=Governance) - The Audit and Risk Committee of the Board is responsible for cybersecurity risk oversight, with the CISO leading the program[242](index=242&type=chunk)[243](index=243&type=chunk) [Item 2. Properties](index=37&type=section&id=Item%202.%20Properties) Oportun leases its corporate headquarters, additional offices, and retail locations across the U.S, Mexico, and India - Corporate headquarters are in San Carlos, CA, with a lease expiring in February 2026[245](index=245&type=chunk) - Additional facilities are leased in California, Texas, Mexico, and India, alongside **129** physical retail locations[25](index=25&type=chunk)[245](index=245&type=chunk) [Item 3. Legal Proceedings](index=37&type=section&id=Item%203.%20Legal%20Proceedings) The company is subject to various legal proceedings, none of which are currently expected to have a material adverse effect - The company is involved in legal proceedings and claims, but none are currently expected to have a material adverse effect[246](index=246&type=chunk) - Information on legal proceedings is incorporated by reference from Note 16 in the Consolidated Financial Statements[246](index=246&type=chunk) [Item 4. Mine Safety Disclosures](index=37&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company has no disclosures related to mine safety PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=38&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Oportun's common stock trades on Nasdaq, and the company does not currently pay cash dividends - Oportun's common stock trades on the Nasdaq Global Select Market under the symbol **"OPRT"** since September 26, 2019[249](index=249&type=chunk) - As of March 13, 2024, there were **119** registered stockholders of common stock[249](index=249&type=chunk) - The company has no plans to pay cash dividends in the foreseeable future, intending to retain all funds for operations[250](index=250&type=chunk) [Item 6. Reserved](index=38&type=section&id=Item%206.%20Reserved) This item is reserved and contains no information [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The company reported a net loss of $180.0 million in 2023 amid tightened underwriting and deteriorating credit quality Key Financial and Operating Metrics (2023 vs. 2022) | Metric | 2023 | 2022 | Change (%) | | :-------------------------------- | :--------- | :--------- | :--------- | | Members | 2,224,302 | 1,877,260 | 18.5% | | Products | 2,387,745 | 2,006,245 | 19.0% | | Aggregate Originations | $1,813,058 | $2,922,871 | (38.0)% | | Portfolio Yield | 32.2% | 32.0% | 0.2% | | 30+ Day Delinquency Rate | 5.9% | 5.6% | 0.3% | | Annualized Net Charge-Off Rate | 12.2% | 10.1% | 2.1% | | Return on Equity | (37.8)% | (13.5)% | (24.3)% | | Adjusted Return on Equity | (26.1)% | 12.1% | (38.2)% | | Managed Principal Balance at End of Period | $3,182,148 | $3,406,981 | (6.7)% | | Owned Principal Balance at End of Period | $2,904,683 | $3,098,609 | (6.3)% | | Average Daily Principal Balance | $2,992,592 | $2,740,318 | 9.2% | Consolidated Statements of Operations (2023 vs. 2022) | Metric (in thousands) | 2023 | 2022 | Change ($) | Change (%) | | :-------------------------------- | :--------- | :--------- | :--------- | :--------- | | Total revenue | $1,056,919 | $952,545 | $104,374 | 11.0% | | Interest expense | $179,414 | $93,046 | $86,368 | 92.8% | | Net decrease in fair value | $(596,839) | $(218,842) | $(377,997) | * | | Net revenue | $280,666 | $640,657 | $(359,991) | (56.2)% | | Total operating expenses | $534,319 | $715,943 | $(181,624) | (25.4)% | | Net income (loss) | $(179,951) | $(77,744) | $(102,207) | (131.5)% | - Workforce optimization and streamlining operations in 2023 resulted in **$21.3 million** in expenses and the closure of **32** retail locations[269](index=269&type=chunk)[270](index=270&type=chunk) [Overview](index=39&type=section&id=Overview) - Oportun is a CDFI-certified fintech offering AI-powered lending and savings products through multiple channels[258](index=258&type=chunk)[259](index=259&type=chunk) - As of December 31, 2023, unsecured personal loans were offered in **4 states** directly and **38 states** via its Pathward, N.A. partnership[260](index=260&type=chunk)[261](index=261&type=chunk) - The company is exploring strategic options for its credit card portfolio and sunsetting its embedded finance partnership with Sezzle[263](index=263&type=chunk)[267](index=267&type=chunk) [Key Financial and Operating Metrics](index=40&type=section&id=Key%20Financial%20and%20Operating%20Metrics) Key Financial and Operating Metrics (2023 vs. 2022) | Metric | 2023 | 2022 | Change (%) | | :-------------------------------- | :--------- | :--------- | :--------- | | Members | 2,224,302 | 1,877,260 | 18.5% | | Products | 2,387,745 | 2,006,245 | 19.0% | | Aggregate Originations | $1,813,058 | $2,922,871 | (38.0)% | | Portfolio Yield | 32.2% | 32.0% | 0.2% | | 30+ Day Delinquency Rate | 5.9% | 5.6% | 0.3% | | Annualized Net Charge-Off Rate | 12.2% | 10.1% | 2.1% | | Return on Equity | (37.8)% | (13.5)% | (24.3)% | | Adjusted Return on Equity | (26.1)% | 12.1% | (38.2)% | | Managed Principal Balance at End of Period | $3,182,148 | $3,406,981 | (6.7)% | | Owned Principal Balance at End of Period | $2,904,683 | $3,098,609 | (6.3)% | | Average Daily Principal Balance | $2,992,592 | $2,740,318 | 9.2% | - Member growth to **2.2 million** (**18.5% YoY**) and Product growth to **2.4 million** (**19.0% YoY**) were driven by marketing and new Set & Save activations[276](index=276&type=chunk)[278](index=278&type=chunk) - Aggregate Originations decreased by **38.0%** to **$1.81 billion** in 2023, due to tightened underwriting and a focus on existing members[279](index=279&type=chunk) - The **30+ Day Delinquency Rate** increased to **5.9%** and the **Annualized Net Charge-Off Rate** rose to **12.2%** in 2023, attributed to seasoning of older loans and macroeconomic pressures[281](index=281&type=chunk)[282](index=282&type=chunk)[283](index=283&type=chunk) [Seasonality](index=44&type=section&id=Seasonality) - Oportun's business is highly seasonal, with Q4 typically being the strongest for originations and Q1 the weakest[291](index=291&type=chunk) - In Q4 2023, originations were lower than typical due to credit tightening, and a seasonal decline in credit performance is historically observed[291](index=291&type=chunk) [Historical Credit Performance](index=42&type=section&id=Historical%20Credit%20Performance) - The **Annualized Net Charge-Off Rate** increased to **12.2%** in 2023 from **10.1%** in 2022, driven by deterioration in older loan vintages[283](index=283&type=chunk)[285](index=285&type=chunk) - In response to increased charge-offs, Oportun tightened credit underwriting standards in H2 2022 and H2 2023[283](index=283&type=chunk)[285](index=285&type=chunk) Net Lifetime Loan Loss Rate by Annual Vintage (as of Dec 31, 2023) | Year of Origination | Dollar weighted average original term for vintage in months | Net lifetime loan losses as of December 31, 2023 as a percentage of original principal balance | | :------------------ | :-------------------------------------------------------- | :--------------------------------------------------------------------------------------- | | 2007 | 9.3 | 7.7% | | 2008 | 9.9 | 8.9% | | 2009 | 10.2 | 5.5% | | 2010 | 11.7 | 6.4% | | 2011 | 12.3 | 6.2% | | 2012 | 14.5 | 5.6% | | 2013 | 16.4 | 5.6% | | 2014 | 19.1 | 6.1% | | 2015 | 22.3 | 7.1% | | 2016 | 24.2 | 8.0% | | 2017 | 26.3 | 8.2% | | 2018 | 29.0 | 9.8% | | 2019 | 30.0 | 10.8% | | 2020 | 32.0 | 8.7%* | | 2021 | 33.3 | 15.4%* | | 2022 | 37.8 | 9.5%* | [Results of Operations](index=44&type=section&id=Results%20of%20Operations) Revenue (2023 vs. 2022) | Metric (in thousands) | 2023 | 2022 | Change ($) | Change (%) | | :-------------------- | :--------- | :--------- | :--------- | :--------- | | Interest income | $963,496 | $876,114 | $87,382 | 10.0% | | Non-interest income | $93,423 | $76,431 | $16,992 | 22.2% | | Total revenue | $1,056,919 | $952,545 | $104,374 | 11.0% | - Interest income increased by **10.0%** to **$963.5 million** in 2023, driven by growth in Average Daily Principal Balance[294](index=294&type=chunk) - Non-interest income increased by **22.2%** to **$93.4 million**, primarily due to higher interest earned on Set & Save accounts and fees from Pathward[295](index=295&type=chunk) Expenses (2023 vs. 2022) | Metric (in thousands) | 2023 | 2022 | Change ($) | Change (%) | | :-------------------------------- | :--------- | :--------- | :--------- | :--------- | | Interest expense | $179,414 | $93,046 | $86,368 | 92.8% | | Total net decrease in fair value | $(596,839) | $(218,842) | $(377,997) | * | | Technology and facilities | $219,406 | $216,120 | $3,286 | 1.5% | | Sales and marketing | $75,284 | $110,033 | $(34,749) | (31.6)% | | Personnel | $121,843 | $154,850 | $(33,007) | (21.3)% | | Outsourcing and professional fees | $45,401 | $67,630 | $(22,229) | (32.9)% | | General, administrative and other | $72,385 | $58,838 | $13,547 | 23.0% | | Goodwill impairment | — | $108,472 | $(108,472) | (100.0)% | | Income tax expense (benefit) | $(73,702) | $2,458 | $(76,160) | (3098.5)% | - Interest expense surged by **92.8%** to **$179.4 million**, driven by a higher Average Daily Debt Balance and increased Cost of Debt[297](index=297&type=chunk) - Net decrease in fair value was **$(596.8) million** in 2023, primarily due to a **$(109.5) million** mark-to-market decrease and **$363.8 million** in charge-offs[300](index=300&type=chunk) - Sales and marketing expenses decreased by **31.6%** to **$75.3 million**, reflecting reduced marketing spend and headcount[307](index=307&type=chunk) - Personnel expense decreased by **21.3%** to **$121.8 million**, and Outsourcing and professional fees decreased by **32.9%** to **$45.4 million**[308](index=308&type=chunk)[310](index=310&type=chunk) - Income tax benefit of **$73.7 million** was recognized in 2023, compared to an expense of **$2.5 million** in 2022[314](index=314&type=chunk) [Fair Value Estimate Methodology for Loans Receivable at Fair Value](index=50&type=section&id=Fair%20Value%20Estimate%20Methodology%20for%20Loans%20Receivable%20at%20Fair%20Value) - Oportun uses a discounted cash flow model to estimate the fair value of its loans, considering yield, life, prepayments, charge-offs, and discount rate[318](index=318&type=chunk)[319](index=319&type=chunk)[320](index=320&type=chunk)[321](index=321&type=chunk)[322](index=322&type=chunk) - Fair value is a market-based measurement, and the model uses unobservable Level 3 inputs reflecting management's best estimates[370](index=370&type=chunk)[382](index=382&type=chunk) Fair Value Premium (Discount) as a Percentage of Loan Principal Balance | Quarter Ended | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | | :------------------------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Fair value premium (discount) as a percentage of loan principal balance | 0.92% | 0.44% | 0.74% | 0.26% | 1.45% | 0.73% | 2.23% | 4.12% | | Discount Rate | 10.10% | 11.15% | 11.10% | 11.07% | 11.48% | 10.19% | 8.97% | 6.76% | [Non-GAAP Financial Measures](index=51&type=section&id=Non-GAAP%20Financial%20Measures) - Oportun uses non-GAAP measures like Adjusted EBITDA and Adjusted Net Income to provide insights into core business performance[325](index=325&type=chunk)[326](index=326&type=chunk)[330](index=330&type=chunk)[335](index=335&type=chunk)[337](index=337&type=chunk)[339](index=339&type=chunk) Adjusted EBITDA (2023 vs. 2022) | Metric (in thousands) | 2023 | 2022 | | :-------------------------------- | :--------- | :--------- | | Net income (loss) | $(179,951) | $(77,744) | | Adjustments (selected) | | | | Income tax expense (benefit) | $(73,702) | $2,458 | | Interest on corporate financing | $37,684 | $5,987 | | Depreciation and amortization | $42,978 | $35,182 | | Stock-based compensation expense | $17,997 | $27,620 | | Workforce optimization expenses | $22,485 | $1,882 | | Acquisition and integration related expenses | $27,640 | $29,682 | | Fair value mark-to-market adjustment | $109,548 | $(119,711) | | **Adjusted EBITDA** | **$1,667** | **$(10,267)** | Adjusted Net Income and EPS (2023 vs. 2022) | Metric (in thousands, except per share) | 2023 | 2022 | | :-------------------------------------- | :--------- | :--------- | | **Adjusted Net Income** | **$(124,105)** | **$69,438** | | Diluted adjusted weighted-average common shares outstanding | 36,875,950 | 33,251,272 | | **Adjusted Earnings Per Share** | **$(3.37)** | **$2.09** | Adjusted Operating Efficiency and Return on Equity (2023 vs. 2022) | Metric | 2023 | 2022 | | :-------------------------- | :--------- | :--------- | | Operating Efficiency | 50.6% | 75.2% | | **Adjusted Operating Efficiency** | **42.7%** | **57.3%** | | Return on Equity | (37.8)% | (13.5)% | | **Adjusted Return on Equity** | **(26.1)%** | **12.1%** | [Liquidity and Capital Resources](index=54&type=section&id=Liquidity%20and%20Capital%20Resources) - Oportun funds operations through cash flows, securitizations, secured financings, and corporate financing[341](index=341&type=chunk)[342](index=342&type=chunk) Cash and Cash Flows (2023 vs. 2022) | Metric (in thousands) | 2023 | 2022 | | :-------------------------------------- | :--------- | :--------- | | Cash, cash equivalents and restricted cash | $206,016 | $203,817 | | Net cash provided by operating activities | $392,765 | $247,875 | | Net cash used in investing activities | $(286,181) | $(1,171,548) | | Net cash (used in) provided by financing activities | $(104,385) | $934,530 | - Net cash provided by operating activities increased to **$392.8 million** in 2023, while net cash used in investing activities decreased to **$286.2 million**[344](index=344&type=chunk)[346](index=346&type=chunk) - Net cash used in financing activities was **$(104.4) million** in 2023, a shift from **$934.5 million** provided in 2022, due to principal payments on debt[347](index=347&type=chunk) - As of December 31, 2023, outstanding debt included **$1.78 billion** in asset-backed notes and **$289.95 million** in secured financing[348](index=348&type=chunk)[350](index=350&type=chunk)[388](index=388&type=chunk) - The company amended its financing facilities in late 2023 and early 2024 to defer principal payments and modify covenants[354](index=354&type=chunk)[355](index=355&type=chunk)[357](index=357&type=chunk)[476](index=476&type=chunk)[478](index=478&type=chunk)[479](index=479&type=chunk)[485](index=485&type=chunk) [Critical Accounting Policies and Significant Judgments and Estimates](index=57&type=section&id=Critical%20Accounting%20Policies%20and%20Significant%20Judgments%20and%20Estimates) - Critical accounting policies involve significant estimates, particularly for the fair value of loans held for investment[367](index=367&type=chunk)[369](index=369&type=chunk)[370](index=370&type=chunk)[376](index=376&type=chunk) - Goodwill is tested for impairment annually; a **$108.5 million** non-cash impairment charge was recognized in 2022, with no charge in 2023[373](index=373&type=chunk)[374](index=374&type=chunk) [Recently Issued Accounting Pronouncements](index=58&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) - ASU 2023-09 (Income Taxes) requires expanded disclosures for income tax rate reconciliation, effective for annual periods after December 15, 2024[449](index=449&type=chunk) - ASU 2023-07 (Segment Reporting) enhances disclosures about significant segment expenses, effective for fiscal years after December 15, 2023[450](index=450&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=58&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a "Smaller Reporting Company," Oportun is not required to provide these disclosures [Item 8. Financial Statements and Supplementary Data](index=59&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Oportun's audited consolidated financial statements and the independent auditor's report - Deloitte & Touche LLP issued an **unqualified opinion** on Oportun's consolidated financial statements and internal controls for the year ended December 31, 2023[377](index=377&type=chunk)[378](index=378&type=chunk)[551](index=551&type=chunk)[552](index=552&type=chunk) - The fair value estimate of unsecured personal loans was identified as a **critical audit matter** due to the subjective nature of its valuation model inputs[382](index=382&type=chunk)[383](index=383&type=chunk) Consolidated Balance Sheets (as of Dec 31, 2023 vs. 2022) | (in thousands) | 2023 | 2022 | | :------------------------------------------ | :--------- | :--------- | | **Assets** | | | | Cash and cash equivalents | $91,187 | $98,817 | | Restricted cash | $114,829 | $105,000 | | Loans receivable at fair value | $2,962,352 | $3,175,449 | | Capitalized software and other intangibles, net | $114,735 | $139,801 | | Total assets | $3,411,888 | $3,613,695 | | **Liabilities and stockholders' equity** | | | | Secured financing | $289,951 | $317,568 | | Asset-backed notes at fair value | $1,780,005 | $2,387,674 | | Asset-backed borrowings at amortized cost | $581,468 | — | | Acquisition and corporate financing | $258,746 | $222,879 | | Total liabilities | $3,007,484 | $3,066,096 | | Total stockholders' equity | $404,404 | $547,599 | | Total liabilities and stockholders' equity | $3,411,888 | $3,613,695 | Consolidated Statements of Operations (2023 vs. 2022) | (in thousands) | 2023 | 2022 | | :-------------------------------- | :--------- | :--------- | | Total revenue | $1,056,919 | $952,545 | | Interest expense | $179,414 | $93,046 | | Net decrease in fair value | $(596,839) | $(218,842) | | Net revenue | $280,666 | $640,657 | | Total operating expenses | $534,319 | $715,943 | | Income (loss) before taxes | $(253,653) | $(75,286) | | Income tax expense (benefit) | $(73,702) | $2,458 | | Net income (loss) | $(179,951) | $(77,744) | | Basic earnings (loss) per share | $(4.88) | $(2.37) | | Diluted earnings (loss) per share | $(4.88) | $(2.37) | Consolidated Statements of Cash Flow (2023 vs. 2022) | (in thousands) | 2023 | 2022 | | :------------------------------------------ | :--------- | :--------- | | Net cash provided by operating activities | $392,765 | $247,875 | | Net cash used in investing activities | $(286,181) | $(1,171,548) | | Net cash (used in) provided by financing activities | $(104,385) | $934,530 | | Net increase in cash and cash equivalents and restricted cash | $2,199 | $10,857 | | Cash and cash equivalents and restricted cash, end of period | $206,016 | $203,817 | [Report of Independent Registered Public Accounting Firm](index=59&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) - Deloitte & Touche LLP provided an **unqualified opinion** on the consolidated financial statements and internal controls of Oportun as of December 31, 2023[377](index=377&type=chunk)[378](index=378&type=chunk)[551](index=551&type=chunk)[552](index=552&type=chunk) - The fair value estimate of unsecured personal loans was identified as a **critical audit matter** due to the subjective nature of its valuation model inputs[382](index=382&type=chunk)[383](index=383&type=chunk) [Consolidated Balance Sheets](index=61&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheets (as of Dec 31, 2023 vs. 2022) | (in thousands) | 2023 | 2022 | | :------------------------------------------ | :--------- | :--------- | | **Assets** | | | | Cash and cash equivalents | $91,187 | $98,817 | | Restricted cash | $114,829 | $105,000 | | Loans receivable at fair value | $2,962,352 | $3,175,449 | | Capitalized software and other intangibles, net | $114,735 | $139,801 | | Right of use assets - operating | $21,105 | $30,448 | | Other assets | $107,680 | $64,180 | | Total assets | $3,411,888 | $3,613,695 | | **Liabilities and stockholders' equity** | | | | Secured financing | $289,951 | $317,568 | | Asset-backed notes at fair value | $1,780,005 | $2,387,674 | | Asset-backed borrowings at amortized cost | $581,468 | — | | Acquisition and corporate financing | $258,746 | $222,879 | | Lease liabilities | $28,376 | $37,947 | | Other liabilities | $68,938 | $100,028 | | Total liabilities | $3,007,484 | $3,066,096 | | Common stock, additional paid-in capital | $584,555 | $547,799 | | Retained earnings (accumulated deficit) | $(173,849) | $6,102 | | Total stockholders' equity | $404,404 | $547,599 | | Total liabilities and stockholders' equity | $3,411,888 | $3,613,695 | [Consolidated Statements of Operations](index=62&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated Statements of Operations (2023 vs. 2022) | (in thousands) | 2023 | 2022 | | :-------------------------------- | :--------- | :--------- | | Interest income | $963,496 | $876,114 | | Non-interest income | $93,423 | $76,431 | | Total revenue | $1,056,919 | $952,545 | | Interest expense | $179,414 | $93,046 | | Net decrease in fair value | $(596,839) | $(218,842) | | Net revenue | $280,666 | $640,657 | | Technology and facilities | $219,406 | $216,120 | | Sales and marketing | $75,284 | $110,033 | | Personnel | $121,843 | $154,850 | | Outsourcing and professional fees | $45,401 | $67,630 | | General, administrative and other | $72,385 | $58,838 | | Goodwill impairment | — | $108,472 | | Total operating expenses | $534,319 | $715,943 | | Income (loss) before taxes | $(253,653) | $(75,286) | | Income tax expense (benefit) | $(73,702) | $2,458 | | Net income (loss) | $(179,951) | $(77,744) | | Basic earnings (loss) per share | $(4.88) | $(2.37) | | Diluted earnings (loss) per share | $(4.88) | $(2.37) | | Basic weighted average common shares outstanding | 36,875,950 | 32,825,772 | | Diluted weighted average common shares outstanding | 36,875,950 | 32,825,772 | [Consolidated Statements of Changes in Stockholders' Equity](index=63&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Consolidated Statements of Changes in Stockholders' Equity (2023 vs. 2022) | (in thousands, except share data) | Balance - Jan 1, 2023 | Issuance of common stock upon exercise of stock options, net of shares withheld | Stock-based compensation expense | Vesting of restricted stock units, net of shares withheld | Issuance of warrants to purchase common stock in connection with debt financing | Net loss | Balance - Dec 31, 2023 | | :-------------------------------- | :-------------------- | :---------------------------------------------------------------------------- | :----------------------------- | :------------------------------------------------------- | :---------------------------------------------------------------------------- | :--------- | :--------------------- | | Common Stock (Shares) | 33,354,607 | 37,314 | - | 1,077,132 | - | - | 34,469,053 | | Common Stock (Par Value) | $7 | - | - | - | - | - | $7 | | Additional Paid-in Capital | $547,799 | $(46) | $20,024 | $(2,653) | $19,431 | - | $565,124 | | Warrants (Shares) | - | - | - | - | 4,193,453 | - | 4,193,453 | | Warrants (Additional Paid-in Capital) | - | - | - | - | $19,431 | - | $19,431 | | Retained Earnings (Accumulated Deficit) | $6,102 | - | - | - | - | $(179,951) | $(173,849) | | Treasury Stock | $(6,309) | - | - | - | - | - | $(6,309) | | **Total Stockholders' Equity** | **$547,599** | **$(46)** | **$20,024** | **$(2,653)** | **$19,431** | **$(179,951)** | **$404,404** | [Consolidated Statements of Cash Flow](index=64&type=section&id=Consolidated%20Statements%20of%20Cash%20Flow) Consolidated Statements of Cash Flow (2023 vs. 2022) | (in thousands) | 2023 | 2022 | | :------------------------------------------ | :--------- | :--------- | | **Cash flows from operating activities** | | | | Net loss | $(179,951) | $(77,744) | | Net cash provided by operating activities | $392,765 | $247,875 | | **Cash flows from investing activities** | | | | Originations and purchases of loans held for investment | $(1,580,134) | $(2,762,828) | | Repayments of loan principal | $1,322,601 | $1,396,896 | | Capitalization of system development costs | $(31,261) | $(48,892) | | Net cash used in investing activities | $(286,181) | $(1,171,548) | | **Cash flows from financing activities** | | | | Borrowings under secured financing | $245,700 | $1,972,000 | | Repayments of secured financing | $(274,751) | $(2,050,000) | | Borrowings under asset-backed notes at fair value | — | $1,262,059 | | Repayments of asset-backed notes at fair value | $(707,619) | $(232,675) | | Borrowings under asset-backed borrowings at amortized cost | $626,405 | — | | Net cash (used in) provided by financing activities | $(104,385) | $934,530 | | Net increase in cash and cash equivalents and restricted cash | $2,199 | $10,857 | | Cash and cash equivalents and restricted cash, end of period | $206,016 | $203,817 | [Notes to the Consolidated Financial Statements](index=65&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) - Oportun operates as a single reportable segment, with the U.S. dollar as its functional currency for foreign subsidiaries[399](index=399&type=chunk)[403](index=403&type=chunk) - As of December 31, 2023, **46%** of the owned principal balance was from California and **26%** from Texas, indicating geographic concentration risk[404](index=404&type=chunk) - The company elected the fair value option for all loans receivable and asset-backed notes, with changes impacting Net Revenue[408](index=408&type=chunk)[424](index=424&type=chunk) - Total interest income increased by **10.0%** to **$963.5 million** in 2023, while non-interest income increased by **22.2%** to **$93.4 million**[503](index=503&type=chunk)[504](index=504&type=chunk) - As of December 31, 2023, Oportun had federal net operating loss carryforwards of **$189.1 million** and state NOLs of **$199.0 million**[509](index=509&type=chunk) - The company issued warrants to purchase **4,193,453** shares of common stock in connection with debt financing in 2023[490](index=490&type=chunk) - In February 2024, Oportun issued **$199.5 million** in two-year asset-backed notes with a weighted average yield of **8.600%**[542](index=542&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=87&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reported no changes in or disagreements with its accountants [Item 9A. Controls and Procedures](index=87&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective - As of December 31, 2023, Oportun's disclosure controls and procedures were **effective**, ensuring timely and accurate reporting[545](index=545&type=chunk) - Management assessed internal control over financial reporting as **effective**, based on COSO criteria, and received an unqualified audit opinion[547](index=547&type=chunk)[548](index=548&type=chunk)[551](index=551&type=chunk) - No material changes in internal control over financial reporting occurred during Q4 2023[549](index=549&type=chunk) [Item 9B. Other Information](index=88&type=section&id=Item%209B.%20Other%20Information) The company reported no other information [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=88&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) The company reported no disclosures regarding foreign jurisdictions that prevent inspections [GLOSSARY](index=89&type=section&id=GLOSSARY) This section provides definitions for key terms and abbreviations used throughout the report PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=91&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information is incorporated by reference from the 2024 Annual Meeting of Stockholders proxy statement - Information on directors, executive officers, and corporate governance is incorporated by reference from the 2024 Proxy Statement[563](index=563&type=chunk) [Item 11. Executive Compensation](index=91&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the 2024 proxy statement - Information on executive compensation is incorporated by reference from the 2024 Proxy Statement[564](index=564&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=91&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership is incorporated by reference from the 2024 proxy statement - Information on security ownership and related stockholder matters is incorporated by reference from the 2024 Proxy Statement[565](index=565&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=91&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding related transactions and director independence is incorporated by reference from the 2024 proxy statement - Information on certain relationships, related transactions, and director independence is incorporated by reference from the 2024 Proxy Statement[566](index=566&type=chunk) [Item 14. Principal Accountant Fees and Services](index=91&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding accountant fees and services is incorporated by reference from the 2024 proxy statement - Information on principal accountant fees and services is incorporated by reference from the 2024 Proxy Statement[567](index=567&type=chunk) PART IV [Item 15. Exhibit and Financial Statement Schedules](index=92&type=section&id=Item%2015.%20Exhibit%20and%20Financial%20Statement%20Schedules) This section lists the consolidated financial statements and references the Exhibit Index - The consolidated financial statements are included in Part II, Item 8[569](index=569&type=chunk) - All other financial statement schedules are omitted as not required or inapplicable[569](index=569&type=chunk) [Item 16. Form 10-K Summary](index=92&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company does not provide a Form 10-K summary in this section [Exhibit Index](index=93&type=section&id=Exhibit%20Index) This section provides a comprehensive list of exhibits filed with the Form 10-K [Signatures](index=97&type=section&id=Signatures) This section contains the required signatures certifying the filing of the Annual Report - The report is signed by Jonathan Coblentz (Chief Financial Officer and Chief Administrative Officer) on March 15, 2024[582](index=582&type=chunk) - Signatures include Raul Vazquez (President, CEO, and Director), Jonathan Coblentz (CFO and CAO), and other key officers and directors[586](index=586&type=chunk)[587](index=587&type=chunk)

Oportun Reports Fourth Quarter and Full Year 2023 Financial Results 4Q23 Total revenue of $263 million, bringing FY23 to $1.1 billion, up 11% year-over-year Quarterly operating expense down 15% $30 million in additional operating expense reductions announced $200 million February ABS deal completed at 160 bps lower pricing than October transaction Full Year 2024 guidance reflects expectations for markedly improved profitability SAN CARLOS, CA – March 12, 2024 – Oportun Financial Corporation (Nasdaq: OPRT) ( ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number 001-39050 OPORTUN FINANCIAL CORPORATION (Exact Name of Registrant as Specified in its Charter) Delaware ...

November 6, 2023 1 3Q 2023 Earnings Presentation Forward-looking statements This presentation and the accompanying oral presentation contain forward-looking statements. All statements other than statements of historical fact contained in this presentation and the accompanying oral presentation, including statements as to future performance, results of operations and financial position; statements related to the effectiveness of the Company's cost reduction measures and the impacts on the Company's business; ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number 001-39050 OPORTUN FINANCIAL CORPORATION (Exact Name of Registrant as Specified in its Charter) State or Other ...