PART I - FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for Oportun Financial Corporation, including the balance sheets, statements of operations, changes in stockholders' equity, and cash flows, along with detailed notes explaining the company's organization, accounting policies, earnings per share, variable interest entities, loan sales, capitalized assets, borrowings, other liabilities, equity, compensation, revenue, income taxes, fair value measurements, leases, commitments, contingencies, and related party transactions for the period ended March 31, 2024 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (in thousands) | Assets/Liabilities & Equity | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :-------------------------- | :----------------------------- | :------------------------------- | | **Assets** | | | | Cash and cash equivalents | $69,200 | $91,187 | | Restricted cash | $127,353 | $114,829 | | Loans receivable at fair value | $2,841,525 | $2,962,352 | | Total assets | $3,277,501 | $3,411,888 | | **Liabilities** | | | | Secured financing | $72,106 | $289,951 | | Asset-backed notes at fair value | $1,701,854 | $1,780,005 | | Asset-backed borrowings at amortized cost | $787,524 | $581,468 | | Total liabilities | $2,895,529 | $3,007,484 | | **Stockholders' Equity** | | | | Total stockholders' equity | $381,972 | $404,404 | - Total assets decreased by approximately **$134 million** from December 31, 2023, to March 31, 2024, primarily driven by a decrease in loans receivable at fair value[8](index=8&type=chunk) - Total liabilities decreased by approximately **$112 million**, with a significant reduction in secured financing, partially offset by an increase in asset-backed borrowings at amortized cost[8](index=8&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (in thousands) | Metric (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Total revenue | $250,482 | $259,512 | | Interest expense | $54,465 | $38,997 | | Net decrease in fair value | $(116,850) | $(215,710) | | Net revenue | $79,167 | $4,805 | | Total operating expenses | $109,642 | $146,338 | | Net loss | $(26,439) | $(102,090) | | Basic EPS | $(0.68) | $(3.00) | - Net loss significantly improved to **$(26.4) million** in Q1 2024 from **$(102.1) million** in Q1 2023, primarily due to a smaller net decrease in fair value and reduced operating expenses[11](index=11&type=chunk) - Net revenue saw a substantial increase from **$4.8 million** in Q1 2023 to **$79.2 million** in Q1 2024, driven by a positive shift in net decrease in fair value[11](index=11&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Condensed Consolidated Statements of Changes in Stockholders' Equity (in thousands) | Stockholders' Equity (in thousands) | Balance - January 1, 2024 | Balance - March 31, 2024 | | :---------------------------------- | :------------------------ | :----------------------- | | Total Stockholders' Equity | $404,404 | $381,972 | | Stock-based compensation expense | | $4,239 | | Net loss | | $(26,439) | - Total stockholders' equity decreased from **$404.4 million** at January 1, 2024, to **$382.0 million** at March 31, 2024, primarily due to the net loss incurred during the period[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flow](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flow) Condensed Consolidated Statements of Cash Flow (in thousands) | Cash Flow Activity (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $85,882 | $76,814 | | Net cash provided by (used in) investing activities | $36,461 | $(39,648) | | Net cash used in financing activities | $(131,806) | $(39,062) | | Net decrease in cash and cash equivalents and restricted cash | $(9,463) | $(1,896) | | Cash and cash equivalents and restricted cash, end of period | $196,553 | $201,921 | - Net cash provided by operating activities increased by **$9.1 million** YoY, reaching **$85.9 million** in Q1 2024[19](index=19&type=chunk)[191](index=191&type=chunk) - Investing activities shifted from a net cash outflow of **$(39.6) million** in Q1 2023 to a net cash inflow of **$36.5 million** in Q1 2024, driven by lower loan originations[19](index=19&type=chunk)[192](index=192&type=chunk) - Net cash used in financing activities significantly increased to **$(131.8) million** in Q1 2024 from **$(39.1) million** in Q1 2023, primarily due to amortization payments on asset-backed notes and repayments of secured and corporate financing[19](index=19&type=chunk)[193](index=193&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [1. Organization and Description of Business](index=7&type=section&id=1.%20Organization%20and%20Description%20of%20Business) - Oportun Financial Corporation is a mission-driven fintech offering AI-powered borrowing, savings, and budgeting products directly or through partners, including unsecured and secured lending, and savings[20](index=20&type=chunk) - The company has been certified as a Community Development Financial Institution (CDFI) by the U.S. Department of the Treasury since 2009[20](index=20&type=chunk) - Oportun operates as a single reportable segment, with its CEO and CFO collectively acting as the chief operating decision maker (CODM)[21](index=21&type=chunk) [2. Summary of Significant Accounting Policies](index=7&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) - The company qualifies as a 'Smaller Reporting Company' and prepares its unaudited consolidated financial statements in accordance with GAAP, reflecting normal, recurring adjustments[22](index=22&type=chunk) - No material changes to significant accounting policies from the Annual Report, except for new accounting pronouncements adopted[24](index=24&type=chunk) - Evaluated ASU 2023-09 (Income Taxes) and ASU 2023-07 (Segment Reporting), determining they will not have a material impact on consolidated financial statements, though they expand disclosures[26](index=26&type=chunk)[27](index=27&type=chunk) [3. Earnings (Loss) per Share](index=9&type=section&id=3.%20Earnings%20(Loss)%20per%20Share) Earnings (Loss) per Share (in thousands, except per share) | Metric (in thousands, except per share) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------------------- | :-------------------------------- | :-------------------------------- | | Net loss | $(26,439) | $(102,090) | | Basic weighted-average common shares outstanding | 38,900,876 | 33,979,050 | | Basic EPS | $(0.68) | $(3.00) | | Diluted EPS | $(0.68) | $(3.00) | - Basic and diluted EPS improved significantly to **$(0.68)** in Q1 2024 from **$(3.00)** in Q1 2023, reflecting a reduced net loss[29](index=29&type=chunk) - Anti-dilutive common share equivalents totaled **6,169,972** in Q1 2024, down from **7,215,267** in Q1 2023[29](index=29&type=chunk) [4. Variable Interest Entities](index=9&type=section&id=4.%20Variable%20Interest%20Entities) - Oportun consolidates Variable Interest Entities (VIEs) where it is the primary beneficiary, having the power to direct activities and the obligation to absorb losses or right to receive benefits[31](index=31&type=chunk)[32](index=32&type=chunk) - Consolidated VIE assets primarily consist of restricted cash and loans receivable at fair value, totaling **$2.5 billion** as of March 31, 2024[34](index=34&type=chunk) Consolidated VIE Assets/Liabilities (in thousands) | Consolidated VIE Assets/Liabilities (in thousands) | March 31, 2024 | December 31, 2023 | | :------------------------------------------------- | :------------- | :---------------- | | Restricted cash | $104,118 | $91,466 | | Loans receivable at fair value | $2,393,160 | $2,539,186 | | Total VIE assets | $2,497,278 | $2,630,652 | | Secured financing | $72,702 | $290,949 | | Asset-backed notes at fair value | $1,701,854 | $1,780,005 | | Asset-backed borrowings at amortized cost | $383,856 | $195,057 | | Total VIE liabilities | $2,204,202 | $2,323,248 | [5. Loans Held for Sale and Loans Sold](index=10&type=section&id=5.%20Loans%20Held%20for%20Sale%20and%20Loans%20Sold) - Originations of loans sold and held for sale increased to **$22.2 million** in Q1 2024 from **$10.0 million** in Q1 2023[37](index=37&type=chunk) - The company recorded a gain on sale of **$1.5 million** and servicing revenue of **$1.6 million** in Q1 2024 from loan sales[37](index=37&type=chunk) [6. Capitalized Software and Other Intangibles](index=10&type=section&id=6.%20Capitalized%20Software%20and%20Other%20Intangibles) Capitalized Software, Net (in thousands) | Capitalized Software, Net (in thousands) | March 31, 2024 | December 31, 2023 | | :--------------------------------------- | :------------- | :---------------- | | System development costs | $162,357 | $158,577 | | Acquired developed technology | $48,500 | $48,500 | | Less: Accumulated amortization | $(130,038) | $(119,810) | | Total capitalized software, net | $80,819 | $87,267 | - Capitalized software, net decreased to **$80.8 million** as of March 31, 2024, from **$87.3 million** at December 31, 2023[38](index=38&type=chunk) - Amortization of system development costs and acquired developed technology was **$10.2 million** in Q1 2024, slightly up from **$10.1 million** in Q1 2023[39](index=39&type=chunk) Intangible Assets, Net (in thousands) | Intangible Assets, Net (in thousands) | March 31, 2024 | December 31, 2023 | | :------------------------------------ | :------------- | :---------------- | | Member relationships | $34,500 | $34,500 | | Trademarks | $5,626 | $5,626 | | Other | $3,000 | $3,000 | | Less: Accumulated amortization | $(17,575) | $(15,658) | | Total intangible assets, net | $25,551 | $27,468 | - Total intangible assets, net decreased to **$25.6 million** as of March 31, 2024, from **$27.5 million** at December 31, 2023[42](index=42&type=chunk) [7. Other Assets](index=11&type=section&id=7.%20Other%20Assets) Other Assets (in thousands) | Other Assets (in thousands) | March 31, 2024 | December 31, 2023 | | :-------------------------- | :------------- | :---------------- | | Total fixed assets, net | $6,017 | $6,991 | | Prepaid expenses | $15,600 | $15,758 | | Deferred tax assets | $52,899 | $48,123 | | Derivative asset | $10,482 | $9,307 | | Total other assets | $114,138 | $107,680 | - Total other assets increased to **$114.1 million** as of March 31, 2024, from **$107.7 million** at December 31, 2023, primarily due to an increase in deferred tax assets and derivative assets[44](index=44&type=chunk) [8. Borrowings](index=12&type=section&id=8.%20Borrowings) Secured Financing (in thousands) | Secured Financing (in thousands) | March 31, 2024 Balance | December 31, 2023 Balance | | :------------------------------- | :--------------------- | :------------------------ | | Oportun CCW Trust | $63,559 | $68,409 | | Oportun PLW Trust | $8,547 | $221,542 | | Total secured financing | $72,106 | $289,951 | - Total secured financing decreased significantly to **$72.1 million** as of March 31, 2024, from **$289.9 million** at December 31, 2023, mainly due to a large reduction in the Oportun PLW Trust balance[46](index=46&type=chunk) - The Credit Card Warehouse facility commitment was reduced from **$100.0 million** to **$80.0 million** on January 31, 2024, with further adjustments to terms[46](index=46&type=chunk) Asset-backed Borrowings at Amortized Cost (in thousands) | Asset-backed Borrowings at Amortized Cost (in thousands) | March 31, 2024 Balance | December 31, 2023 Balance | | :------------------------------------------------------- | :--------------------- | :------------------------ | | Oportun Issuance Trust 2024-1 | $188,608 | $0 | | Oportun CL Trust 2023-A | $195,248 | $195,057 | | Other Asset Backed Borrowings | $403,668 | $386,411 | | Total asset-backed borrowings recorded at amortized cost | $787,524 | $581,468 | - Asset-backed borrowings at amortized cost increased to **$787.5 million** as of March 31, 2024, from **$581.5 million** at December 31, 2023, primarily due to the issuance of **$199.5 million** Series 2024-1 asset-backed notes[48](index=48&type=chunk) - The Corporate Financing facility was amended on March 12, 2024, to modify asset coverage ratio covenants, introduce an interest rate step-up, and require certain principal payments[50](index=50&type=chunk) - The Acquisition Financing facility was amended on March 8, 2024, to provide a three-month principal payment holiday and extend the term to January 10, 2025[51](index=51&type=chunk) [9. Other Liabilities](index=14&type=section&id=9.%20Other%20Liabilities) Other Liabilities (in thousands) | Other Liabilities (in thousands) | March 31, 2024 | December 31, 2023 | | :------------------------------- | :------------- | :---------------- | | Accounts payable | $6,531 | $5,288 | | Accrued compensation | $11,850 | $15,359 | | Accrued expenses | $24,861 | $24,791 | | Accrued interest | $7,843 | $8,415 | | Total other liabilities | $65,160 | $68,938 | - Total other liabilities decreased to **$65.2 million** as of March 31, 2024, from **$68.9 million** at December 31, 2023, primarily due to a decrease in accrued compensation[53](index=53&type=chunk) [10. Stockholders' Equity](index=14&type=section&id=10.%20Stockholders'%20Equity) - As of March 31, 2024, the company had **35,861,277** shares issued and **35,589,254** shares outstanding, with **272,023** shares held in treasury stock[55](index=55&type=chunk) - Warrants to purchase **4,193,453** shares of common stock at an exercise price of **$0.01** per share were issued in connection with the Corporate Financing facility amendments in 2023[56](index=56&type=chunk) [11. Equity Compensation and Other Benefits](index=14&type=section&id=11.%20Equity%20Compensation%20and%20Other%20Benefits) Stock-based Compensation Expense (in thousands) | Stock-based Compensation Expense (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :---------------------------------------------- | :-------------------------------- | :-------------------------------- | | Technology and facilities | $1,159 | $1,049 | | Sales and marketing | $24 | $33 | | Personnel | $2,799 | $3,796 | | Total stock-based compensation | $3,982 | $4,878 | - Total stock-based compensation expense decreased to **$3.98 million** in Q1 2024 from **$4.88 million** in Q1 2023[58](index=58&type=chunk) - Unrecognized compensation cost for unvested stock-based option awards was **$1.9 million** as of March 31, 2024, with a weighted-average vesting period of approximately **1.9 years**[58](index=58&type=chunk) [12. Revenue](index=16&type=section&id=12.%20Revenue) Revenue (in thousands) | Revenue (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--------------------- | :-------------------------------- | :-------------------------------- | | Interest income | $230,590 | $237,619 | | Non-interest income | $19,892 | $21,893 | | Total revenue | $250,482 | $259,512 | - Total revenue decreased by **3.5%** to **$250.5 million** in Q1 2024 from **$259.5 million** in Q1 2023[62](index=62&type=chunk)[134](index=134&type=chunk) - Interest income decreased by **3.0%** to **$230.6 million**, primarily due to a **7.1%** decrease in Average Daily Principal Balance, partially offset by an increase in portfolio yield[62](index=62&type=chunk)[134](index=134&type=chunk) - Non-interest income decreased by **9.1%** to **$19.9 million**, mainly due to a **$2.6 million** decrease in subscription revenue[62](index=62&type=chunk)[135](index=135&type=chunk) [13. Income Taxes](index=16&type=section&id=13.%20Income%20Taxes) Income Tax (in thousands) | Income Tax (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------------ | :-------------------------------- | :-------------------------------- | | Income tax benefit | $(4,036) | $(39,443) | | Effective tax rate | 13.2% | 27.9% | - Income tax benefit decreased by **$35.4 million (89.8%)** to **$4.0 million** in Q1 2024, primarily due to a smaller pretax loss[65](index=65&type=chunk)[154](index=154&type=chunk) - The effective tax rate for Q1 2024 was **13.2%**, differing from the statutory rate due to research and development tax credits and stock-based compensation[64](index=64&type=chunk)[65](index=65&type=chunk) - The company expects to release **$3.6 million** of uncertain tax positions within the next twelve months due to the expiration of various statute of limitations[66](index=66&type=chunk) [14. Fair Value of Financial Instruments](index=17&type=section&id=14.%20Fair%20Value%20of%20Financial%20Instruments) Financial Instruments at Fair Value (in thousands) | Financial Instruments at Fair Value (in thousands) | March 31, 2024 Fair Value | December 31, 2023 Fair Value | | :------------------------------------------------- | :------------------------ | :--------------------------- | | Loans receivable - personal loans | $2,744,380 | $2,853,186 | | Loans receivable - credit cards | $97,145 | $109,166 | | Total Loans Receivable at Fair Value | $2,841,525 | $2,962,352 | | Asset-backed notes | $1,701,854 | $1,780,005 | - The fair value of Loans Receivable at Fair Value decreased to **$2.84 billion** as of March 31, 2024, from **$2.96 billion** at December 31, 2023[68](index=68&type=chunk) - Key unobservable inputs for personal loans receivable fair value include remaining cumulative charge-offs (**11.61%** weighted average in Q1 2024) and a discount rate of **9.10%**[70](index=70&type=chunk) - The aggregate fair value of loans 90 days or more past due was **$6.1 million** as of March 31, 2024, compared to **$5.2 million** at December 31, 2023[77](index=77&type=chunk) [15. Leases, Commitments and Contingencies](index=19&type=section&id=15.%20Leases,%20Commitments%20and%20Contingencies) Lease Liabilities (in thousands) | Lease Liabilities (in thousands) | March 31, 2024 | December 31, 2023 | | :------------------------------- | :------------- | :---------------- | | Total lease payments | $27,455 | $30,473 | | Total leases | $25,472 | $28,376 | | Weighted average remaining lease term | 2.6 years | 2.7 years | | Weighted average discount rate | 4.70% | 4.72% | - Operating lease expense for Q1 2024 was **$3.9 million**, down from **$4.4 million** in Q1 2023[84](index=84&type=chunk) - Purchase obligations for information technology and communication services are **$29.2 million** for the remainder of 2024[85](index=85&type=chunk) - The company has a commitment to purchase an additional **$20.5 million** of program loans from its bank partner, Pathward, N.A., based on originations through March 31, 2024[86](index=86&type=chunk) - Unfunded loan and credit card commitments were **$31.7 million** as of March 31, 2024[87](index=87&type=chunk) - The Mexico subsidiary received a notice for alleged underpayment of value-added tax for 2017-2019, with a reasonably possible liability ranging from zero to **$3.8 million**, which the company disputes[88](index=88&type=chunk) [16. Related Party Transactions](index=21&type=section&id=16.%20Related%20Party%20Transactions) - Neuberger Berman Specialty Finance is deemed a beneficial owner of greater than **ten percent** of the company's outstanding stock following warrant issuances in connection with the Corporate Financing facility[91](index=91&type=chunk) - Interest expense related to agreements with Neuberger was **$11.5 million** for Corporate Financing and **$6.5 million** for secured borrowing in Q1 2024[93](index=93&type=chunk) - The company transferred **$0.4 million** in loans receivable under a forward flow whole loan sale agreement with Neuberger in Q1 2024[92](index=92&type=chunk) [17. Subsequent Events](index=21&type=section&id=17.%20Subsequent%20Events) - No subsequent events requiring disclosure occurred after March 31, 2024[97](index=97&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Oportun's financial condition and results of operations for the three months ended March 31, 2024, compared to the same period in 2023. It covers an overview of the business, key financial and operating metrics, historical credit performance, detailed analysis of revenues and expenses, fair value methodology, non-GAAP financial measures, liquidity and capital resources, and critical accounting policies [Forward-Looking Statements](index=22&type=section&id=Forward-Looking%20Statements) - The report contains forward-looking statements regarding future financial performance, loan volume, credit performance, financing, fair value estimates, growth strategies, and regulatory compliance[99](index=99&type=chunk)[100](index=100&type=chunk) - These statements are based on management's current expectations and involve known and unknown risks and uncertainties that could cause actual results to differ materially[101](index=101&type=chunk) [Overview](index=23&type=section&id=Overview) - Oportun is a mission-driven fintech empowering members with intelligent borrowing, savings, and budgeting capabilities, having extended over **$18.2 billion** in credit through **7.0 million** loans and credit cards[105](index=105&type=chunk) - The company offers unsecured and secured personal loans, and automated savings through its Set & Save platform, accessible via the Oportun Mobile App and website[107](index=107&type=chunk)[108](index=108&type=chunk)[111](index=111&type=chunk) - In Q1 2024, Oportun closed **39** retail locations and reduced workforce, incurring **$0.8 million** in related expenses, as part of workforce optimization and streamlining operations[117](index=117&type=chunk) - The company is exploring strategic options for its credit card portfolio and sunsetting its embedded finance partnership with Sezzle[110](index=110&type=chunk)[114](index=114&type=chunk) [Key Financial and Operating Metrics](index=25&type=section&id=Key%20Financial%20and%20Operating%20Metrics) Key Financial and Operating Metrics (in thousands, except percentages) | Metric (in thousands, except percentages) | As of or for the Three Months Ended March 31, 2024 | As of or for the Three Months Ended March 31, 2023 | | :---------------------------------------- | :------------------------------------------------- | :------------------------------------------------- | | Aggregate Originations | $338,216 | $407,961 | | Portfolio Yield | 32.5% | 31.4% | | 30+ Day Delinquency Rate | 5.2% | 5.5% | | Annualized Net Charge-Off Rate | 12.0% | 12.1% | | Managed Principal Balance at End of Period | $3,027,508 | $3,281,913 | | Owned Principal Balance at End of Period | $2,752,389 | $3,004,998 | - Aggregate Originations decreased by **17.1%** to **$338.2 million** in Q1 2024, primarily due to a reduction in average loan size, partially offset by an increase in the number of loans originated[121](index=121&type=chunk) - Portfolio Yield increased to **32.5%** in Q1 2024 from **31.4%** in Q1 2023, mainly due to higher fees on loans originated through bank partnerships[122](index=122&type=chunk) - The 30+ Day Delinquency Rate improved to **5.2%** in Q1 2024 from **5.5%** in Q1 2023, reflecting improved credit quality from tightened credit standards[123](index=123&type=chunk) - Annualized Net Charge-Off Rate slightly decreased to **12.0%** in Q1 2024 from **12.1%** in Q1 2023, attributed to tightened underwriting and focus on existing members[124](index=124&type=chunk) [Historical Credit Performance](index=26&type=section&id=Historical%20Credit%20Performance) - Annualized Net Charge-off Rate ranged between **7%** and **10.1%** from 2014 to 2022, increasing to **10.1%** in 2022 due to rising interest rates, inflation, and cessation of COVID-119 stimulus[125](index=125&type=chunk) - Continued elevated charge-offs in Q1 2024 are primarily due to deterioration in the 'back book' (loans originated prior to July 2022 credit tightening) and decreasing originations[125](index=125&type=chunk) Net Lifetime Loan Losses by Year of Origination | Year of Origination | Dollar weighted average original term (months) | Net lifetime loan losses as of March 31, 2024 (% of original principal balance) | | :------------------ | :------------------------------------------- | :---------------------------------------------------------------------------- | | 2019 | 30.0 | 10.8% | | 2020 | 32.0 | 8.9%* | | 2021 | 33.3 | 16.4%* | | 2022 | 37.8 | 12.4%* | | 2023 | 39.2 | 0.0%* | - The 2021 vintage shows higher charge-offs (**16.4%**) due to a higher percentage of loan disbursements to new members[129](index=129&type=chunk)[130](index=130&type=chunk) - Seasonality typically results in lower loan demand in the first quarter due to holiday spending in Q4 and increased member cash flows from tax refunds in Q1[131](index=131&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Results of Operations (in thousands of dollars) | (in thousands of dollars) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Period-to-period Change ($) | Period-to-period Change (%) | | :------------------------ | :-------------------------------- | :-------------------------------- | :-------------------------- | :-------------------------- | | Total revenue | $250,482 | $259,512 | $(9,030) | (3.5)% | | Interest expense | $54,465 | $38,997 | $15,468 | 39.7% | | Net decrease in fair value | $(116,850) | $(215,710) | $98,860 | * | | Net revenue | $79,167 | $4,805 | $74,362 | * | | Total operating expenses | $109,642 | $146,338 | $(36,696) | (25.1)% | | Net loss | $(26,439) | $(102,090) | $75,651 | (74.1)% | - Interest expense increased by **39.7%** to **$54.5 million**, driven by higher interest rates and wider credit spreads on new asset-backed securitization issuances[137](index=137&type=chunk) - Net decrease in fair value improved by **$98.9 million**, from **$(215.7) million** in Q1 2023 to **$(116.9) million** in Q1 2024, primarily due to a decrease in the discount rate and an increase in average life for loans receivable, partially offset by increased cumulative charge-offs[140](index=140&type=chunk) - Total operating expenses decreased by **25.1%** to **$109.6 million**, reflecting reductions across technology and facilities, sales and marketing, personnel, outsourcing, and general administrative costs[144](index=144&type=chunk)[146](index=146&type=chunk)[148](index=148&type=chunk)[150](index=150&type=chunk)[152](index=152&type=chunk) [Fair Value Estimate Methodology for Loans Receivable at Fair Value](index=31&type=section&id=Fair%20Value%20Estimate%20Methodology%20for%20Loans%20Receivable%20at%20Fair%20Value) - Fair value accounting for loans receivable and debt recognizes credit losses through income as incurred, with changes reflected in Net Revenue[158](index=158&type=chunk) - Fair value is a function of portfolio yield, average life, prepayments (or principal payment rate for credit cards), remaining cumulative charge-offs, and discount rate[159](index=159&type=chunk)[163](index=163&type=chunk) - The discount rate for personal loans and credit cards is determined using the Weighted Average Capital Cost (WACC), calculated via the Capital Asset Pricing Model (CAPM)[162](index=162&type=chunk) [Non-GAAP Financial Measures](index=32&type=section&id=Non-GAAP%20Financial%20Measures) - Oportun uses non-GAAP measures like Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted EPS, Adjusted Operating Efficiency, and Adjusted Return on Equity for period-to-period comparisons of core business performance[167](index=167&type=chunk) - Definitions for Adjusted EBITDA, Adjusted Net Income, and Adjusted Operating Efficiency were updated in 2024 to better align with management's view of operations[168](index=168&type=chunk)[170](index=170&type=chunk) Non-GAAP Metric (in thousands, except per share/percentages) | Non-GAAP Metric (in thousands, except per share/percentages) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 (Revised) | | :----------------------------------------------------------- | :-------------------------------- | :------------------------------------------ | | Adjusted EBITDA | $1,939 | $(20,237) | | Adjusted Net Income (Loss) | $3,622 | $(57,696) | | Adjusted Earnings (Loss) Per Share | $0.09 | $(1.70) | | Adjusted Return on Equity | 3.7% | (46.6)% | | Adjusted Operating Efficiency | 40.6% | 51.1% | - Adjusted EBITDA improved significantly to **$1.9 million** in Q1 2024 from **$(20.2) million** in Q1 2023[173](index=173&type=chunk) - Adjusted Net Income (Loss) improved to **$3.6 million** in Q1 2024 from **$(57.7) million** in Q1 2023[177](index=177&type=chunk) - Adjusted Operating Efficiency improved to **40.6%** in Q1 2024 from **51.1%** in Q1 2023, indicating better cost management relative to revenue[185](index=185&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) - Oportun funds operations through cash flows, securitizations, secured borrowings, Corporate Financing, and whole loan sales, targeting at least twelve months of expected net cash outflows[186](index=186&type=chunk)[187](index=187&type=chunk) Liquidity Reserves (in thousands) | Liquidity Reserves (in thousands) | Amount available | Amount borrowed/utilized | Remaining available capacity | | :-------------------------------- | :--------------- | :----------------------- | :--------------------------- | | Cash and cash equivalents | $69,200 | N/A | $69,200 | | Restricted cash | $127,353 | N/A | $127,353 | | Secured financing | $680,000 | $72,108 | $607,892 | | Whole loan forward flow agreements | $750,000 | $491,848 | $258,152 | | Total liquidity | $1,626,553 | $563,956 | $1,062,597 | - Total liquidity reserves as of March 31, 2024, were **$1.63 billion**, with **$1.06 billion** remaining available capacity[189](index=189&type=chunk) - The company issued **$199.5 million** of Series 2024-1 fixed-rate asset-backed notes on February 13, 2024[199](index=199&type=chunk) - Amendments to the Corporate Financing and Acquisition Financing facilities in March 2024 adjusted covenants, interest rates, and payment schedules[203](index=203&type=chunk)[205](index=205&type=chunk) [Critical Accounting Policies and Significant Judgments and Estimates](index=46&type=section&id=Critical%20Accounting%20Policies%20and%20Significant%20Judgments%20and%20Estimates) - The preparation of financial statements requires management to make estimates and assumptions that affect reported amounts of assets, liabilities, revenue, and expenses[215](index=215&type=chunk) - No material changes in critical accounting policies from those disclosed in the 2023 Form 10-K[216](index=216&type=chunk) [Recently Issued Accounting Pronouncements](index=46&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) - Refer to Note 2, Summary of Significant Accounting Policies, for discussion of recent accounting pronouncements and future application of accounting standards[217](index=217&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a 'Smaller Reporting Company,' Oportun Financial Corporation is not required to provide quantitative and qualitative disclosures about market risk in this report - The company is exempt from providing quantitative and qualitative disclosures about market risk as a 'Smaller Reporting Company'[219](index=219&type=chunk) [Item 4. Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of Oportun's disclosure controls and procedures as of March 31, 2024, based on an evaluation by management, including the CEO and CFO. It also notes that there were no material changes in internal control over financial reporting during the period - Disclosure controls and procedures were evaluated and deemed effective at a reasonable assurance level as of March 31, 2024[220](index=220&type=chunk) - No material changes in internal control over financial reporting occurred during the period covered by this report[222](index=222&type=chunk) - The effectiveness of controls is subject to inherent limitations, including human error and circumvention[221](index=221&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) This section states that Oportun is subject to various legal proceedings and claims in the ordinary course of business, but currently is not a party to any proceedings that would individually or collectively have a material adverse effect on its business, financial condition, cash flows, or results of operations - Oportun is involved in ordinary course legal proceedings, including intellectual property infringement and consumer litigation[224](index=224&type=chunk) - No current legal proceedings are expected to have a material adverse effect on the company's business, financial condition, cash flows, or results of operations[224](index=224&type=chunk) [Item 1A. Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) This section outlines significant risks that could adversely affect Oportun's business, financial condition, liquidity, results of operations, and prospects. These risks are categorized into business, financial and operational; funding and liquidity; intellectual property; industry and regulatory; and general risk factors, emphasizing the high degree of risk involved in investing in the company's common stock - Investing in Oportun's common stock involves a high degree of risk, and actual results could differ materially from forward-looking statements[225](index=225&type=chunk) - Key risk categories include business, financial and operational; funding and liquidity; intellectual property; industry and regulatory; and general risks[227](index=227&type=chunk)[229](index=229&type=chunk) [Business, Financial and Operational Risks](index=48&type=section&id=Business,%20Financial%20and%20Operational%20Risks) - Oportun faces intense competition from various financial institutions and fintech companies, many with greater resources[231](index=231&type=chunk)[232](index=232&type=chunk) - The company's reliance on Pathward, N.A. for a substantial portion of loan originations (**71%** in Q1 2024) poses a significant risk if the relationship terminates or is limited[237](index=237&type=chunk) - Economic conditions, including high inflation and rising interest rates, adversely affect borrowers' ability to make payments, increasing delinquencies and charge-offs[247](index=247&type=chunk) - The company's proprietary credit risk models, which use AI and third-party data, may contain errors or be ineffective, leading to higher than forecasted loan losses[256](index=256&type=chunk)[257](index=257&type=chunk) - Oportun's quarterly results are subject to significant fluctuations due to factors like loan volumes, credit performance, operating expenses, and macroeconomic conditions[264](index=264&type=chunk) [Funding and Liquidity Risks](index=68&type=section&id=Funding%20and%20Liquidity%20Risks) - Oportun has substantial debt and relies on securitization, warehouse facilities, and other debt financing, which may not be available on favorable terms in the future[325](index=325&type=chunk)[327](index=327&type=chunk) - Breaches of early payment triggers or covenants in lending agreements could lead to early amortization, default, or acceleration of funding facilities, impacting liquidity[330](index=330&type=chunk)[332](index=332&type=chunk) - The securitization market is volatile, and Oportun may face challenges accessing it, potentially requiring more costly alternative financing[336](index=336&type=chunk)[338](index=338&type=chunk) - The company may need to raise additional funds through equity or debt, which could result in dilution for stockholders or restrictive covenants[341](index=341&type=chunk)[342](index=342&type=chunk) [Intellectual Property Risks](index=72&type=section&id=Intellectual%20Property%20Risks) - Protecting proprietary technology, including credit risk models and AI algorithms, is difficult and costly, and failure to do so could harm competitiveness[345](index=345&type=chunk) - The company may be sued for alleged infringement of third-party intellectual property rights, leading to significant damages or licensing fees[346](index=346&type=chunk) - Internally developed software for credit risk models and internal systems may contain undetected errors, bugs, or defects, potentially compromising accuracy and member data[348](index=348&type=chunk) - Use of open source software in business processes carries risks, including potential requirements to make proprietary source code publicly available or increased security vulnerabilities[349](index=349&type=chunk)[350](index=350&type=chunk)[351](index=351&type=chunk) [Industry and Regulatory Risks](index=74&type=section&id=Industry%20and%20Regulatory%20Risks) - The financial services industry is highly regulated, and changes in laws or their interpretation could adversely affect Oportun's operations, increase costs, or limit lending activities[352](index=352&type=chunk)[354](index=354&type=chunk) - Litigation, regulatory actions, and compliance issues, including those related to consumer protection and 'true lender' theories, could result in significant fines, penalties, and reputational harm[356](index=356&type=chunk)[358](index=358&type=chunk) - The CFPB has broad authority and increased scrutiny over nonbank financial companies, potentially leading to examinations, new rules (e.g., on 'junk fees' and credit card late fees), and enforcement actions[363](index=363&type=chunk)[365](index=365&type=chunk) - The evolving regulatory environment for privacy, data protection, and cybersecurity, including laws like CCPA and FTC Safeguards Rule, increases compliance costs and risks of investigations or fines[368](index=368&type=chunk)[369](index=369&type=chunk) - Oportun withdrew its registration as an investment adviser on March 29, 2024, previously subject to SEC regulation[371](index=371&type=chunk) [General Risk Factors](index=78&type=section&id=General%20Risk%20Factors) - Future issuance of additional common stock under equity incentive plans, acquisitions, or financings could dilute existing stockholders' ownership[379](index=379&type=chunk) - The exercise of outstanding warrants (**4,193,453** shares as of March 31, 2024) will increase shares eligible for resale and dilute common stockholders[380](index=380&type=chunk) - The price of Oportun's common stock may be volatile due to various factors, including financial performance, market conditions, and regulatory developments[381](index=381&type=chunk)[382](index=382&type=chunk) - Changes in tax laws (e.g., Inflation Reduction Act, global minimum tax) and differing interpretations could adversely impact financial position and results of operations[384](index=384&type=chunk) - The ability to use net operating loss carryforwards and other tax attributes may be limited by future income or ownership changes, potentially increasing future tax liability[385](index=385&type=chunk)[386](index=386&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=81&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities,%20Use%20of%20Proceeds,%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section confirms that Oportun had no unregistered sales of equity securities, no use of proceeds from previously registered offerings, and no issuer purchases of equity securities during the reporting period - No unregistered sales of securities occurred in the reporting period[399](index=399&type=chunk) - No use of proceeds from previously registered offerings[400](index=400&type=chunk) [Item 3. Defaults Upon Senior Securities](index=81&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that Oportun had no defaults upon senior securities during the reporting period - No defaults upon senior securities were reported[401](index=401&type=chunk) [Item 4. Mine Safety Disclosures](index=81&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are not applicable to Oportun Financial Corporation - Mine safety disclosures are not applicable to the company[402](index=402&type=chunk) [Item 5. Other Information](index=81&type=section&id=Item%205.%20Other%20Information) This section states that there is no other information to report for the period - No other information is reported in this section[403](index=403&type=chunk) [GLOSSARY](index=82&type=section&id=GLOSSARY) This section provides definitions for key terms and abbreviations used throughout the report, including financial metrics, operational terms, and company-specific financing instruments - The glossary defines key financial and operational metrics such as 30+ Day Delinquency Rate, Adjusted EBITDA, Aggregate Originations, and Annualized Net Charge-Off Rate[405](index=405&type=chunk) - It also clarifies terms related to the company's financing, including Acquisition Financing, Corporate Financing, Secured Financing, and various asset-backed notes[405](index=405&type=chunk) [Item 6. Exhibits](index=84&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including various amendments to financing agreements, certifications, and interactive data files, indicating which are filed herewith or incorporated by reference - Exhibits include amendments to the Seventh, Eighth, Ninth, and Tenth Indentures related to Oportun RF, LLC and Oportun CCW Trust[407](index=407&type=chunk) - Amendment No. 3 to the Credit Agreement and the Sixth Amendment to the Loan and Security Agreement for Oportun PLW Trust are also listed[407](index=407&type=chunk) - Certifications by the Chief Executive Officer and Chief Financial Officer (Rule 13a-14(a)/15d-14(a) and Section 1350) are included[407](index=407&type=chunk) [Signature](index=86&type=section&id=Signature) This section contains the signature of Jonathan Coblentz, Chief Financial Officer and Chief Administrative Officer, certifying the report on behalf of Oportun Financial Corporation on May 10, 2024 - The report is signed by Jonathan Coblentz, Chief Financial Officer and Chief Administrative Officer, on May 10, 2024[411](index=411&type=chunk)

[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 ...

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, 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 Othe ...

1Q 2023 Earnings Presentation May 8, 2023 Forward-looking statements This presentation also contains estimates and other statistical data made by independent parties and by the Company relating to market size and growth and other industry data. These data involve a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. The Company has not independently verified the statistical and other industry data generated by independent parties and contained in this pre ...