Financial Performance - GAAP net income for Q3 2025 was $5.2 million, a $35 million improvement year-over-year[2] - Adjusted EPS increased to $0.39, up from $0.02 in Q3 2024, reflecting a significant year-over-year growth[4] - Total revenue for Q3 2025 was $239 million, a 5% decrease from $250 million in the prior-year quarter[11] - Net income for Q3 2025 was $5.2 million, compared to a net loss of $30.0 million in Q3 2024[32] - The company reported a diluted earnings per share of $0.11 for Q3 2025, compared to a loss of $0.75 per share in Q3 2024[32] - Adjusted net income for the nine months ended September 30, 2025, was $52.1 million, a significant improvement from a loss of $87.4 million in the same period of 2024[54] - The company reported a net income of $5.2 million for Q3 2025, a recovery from a loss of $30.0 million in Q3 2024[54] - For Q3 2025, Oportun Financial Corporation reported a net income of $5.2 million, a significant improvement from a net loss of $30.0 million in Q3 2024[58] - Adjusted net income for the nine months ended September 30, 2025, was $52.1 million, up from $7.8 million in the same period of 2024[58] Revenue and Originations - Total revenue for Q3 2025 was $238.7 million, a decrease of 4.8% from $250.0 million in Q3 2024[32] - Aggregate originations for Q3 2025 were $512 million, a 7% increase compared to $480 million in Q3 2024[15] - Aggregate originations for Q3 2025 reached $511.8 million, up 6.9% from $480.2 million in Q3 2024[39] Operational Efficiency - Operating expenses decreased by 11% year-over-year to $91 million, with a revised full-year outlook of approximately $370 million[12] - Total operating expenses for Q3 2025 were $90.8 million, down from $102.1 million in Q3 2024[32] - Adjusted Operating Expense Ratio for Q3 2025 improved to 12.6%, compared to 14.7% in Q3 2024, showing enhanced operational efficiency[56] - Total Operating Expense for the nine months ended September 30, 2025, was $277.9 million, down from $320.9 million in the same period of 2024[56] Credit Quality - Annualized net charge-off rate improved to 11.8%, down 7 basis points from 11.9% in the prior-year quarter[18] - The 30+ day delinquency rate improved to 4.7%, down from 5.2% in the prior-year quarter[18] - The 30+ day delinquency rate improved to 4.7% in Q3 2025, down from 5.2% in Q3 2024[39] - The annualized net charge-off rate was 11.8% for Q3 2025, slightly down from 11.9% in Q3 2024[39] Cash and Assets - Total cash as of September 30, 2025, was $224 million, with $788 million of undrawn capacity on existing personal loan warehouse lines[22] - Cash and cash equivalents at the end of Q3 2025 totaled $224.0 million, compared to $228.5 million at the end of Q3 2024[37] - Total assets as of September 30, 2025, were $3,186.2 million, a decrease from $3,227.1 million at the end of 2024[35] Future Guidance - The company expects full-year 2025 adjusted EPS guidance to increase by 4%, now ranging from $1.30 to $1.40 per share[3] - The company expects adjusted EBITDA for Q4 2025 to range between $31.0 million and $37.0 million[59] - For FY 2025, adjusted net income is projected to be between $63.0 million and $67.0 million, with diluted earnings per share expected to be between $0.73 and $0.82[60] - The total number of diluted weighted-average common shares outstanding for FY 2025 is estimated at 48.1 million[60] Stock and Compensation - Oportun's stock-based compensation expense for FY 2025 is projected to be $11.6 million[60] - The basic weighted-average common shares outstanding increased to 46,711,134 in Q3 2025 from 39,964,322 in Q3 2024[58] Profitability Metrics - Adjusted EBITDA for Q3 2025 was $41 million, a 31% increase from $31 million in the prior-year quarter[17] - Adjusted EBITDA for Q3 2025 was $41.2 million, compared to $31.4 million in Q3 2024, reflecting a year-over-year increase of 31.1%[54] - Risk Adjusted Net Interest Margin for Q3 2025 was $110.4 million, an increase from $97.6 million in Q3 2024, representing a growth of 13.7%[56] - Net Interest Margin Ratio for Q3 2025 was 27.1%, compared to 28.0% in Q3 2024, indicating a slight decline in profitability[56] - Adjusted Return on Equity (ROE) for Q3 2025 was 19.6%, a significant increase from 1.1% in Q3 2024[54] Debt and Costs - The cost of debt increased to 8.1% in Q3 2025, compared to 7.8% in Q3 2024[39]

Core Insights - Oportun Financial Corporation reported strong financial results for Q3 2025, achieving GAAP profitability for the fourth consecutive quarter with a net income of $5.2 million, a $35 million improvement year-over-year [1][2][13] - The company aims for a long-term Return on Equity (ROE) target range of 20% to 28%, with significant gains in both ROE and Adjusted ROE [2] - Adjusted EBITDA grew by 31% year-over-year to $41 million, exceeding guidance expectations [2] Financial Performance - Total revenue for Q3 2025 was $239 million, down 5% from $250 million in Q3 2024, primarily due to the absence of $9.2 million from a sold credit card receivable portfolio [11][4] - Net revenue increased by 68% year-over-year to $105 million, driven by reduced fair value marks and net charge-offs [11] - Operating expenses decreased by 11% year-over-year to $91 million, reflecting cost reduction initiatives [12] Earnings Metrics - GAAP EPS for Q3 2025 was $0.11, compared to a loss of $0.75 in the prior-year quarter, while Adjusted EPS rose to $0.39 from $0.02 [15][11] - Adjusted Net Income was $19 million, significantly up from $0.9 million in Q3 2024 [15][13] Credit and Delinquency Metrics - The annualized net charge-off rate improved to 11.8%, down from 11.9% in the prior-year quarter, with dollar net charge-offs declining by 3% year-over-year [14][17] - The 30+ day delinquency rate also improved to 4.7%, compared to 5.2% in the prior-year quarter [14][17] Operational Highlights - Aggregate originations for Q3 2025 were $512 million, a 7% increase from $480 million in the prior-year quarter [5][7] - The owned principal balance at the end of the period was $2.6 billion, down from $2.7 billion in the prior-year quarter [5] Funding and Liquidity - As of September 30, 2025, total cash was $224 million, with $105 million in cash and cash equivalents and $119 million in restricted cash [21] - The company expanded its warehouse financing capacity from $954 million to $1.14 billion in October 2025, improving its capital structure [22] Financial Outlook - For Q4 2025, Oportun expects total revenue between $241 million and $246 million, with a full-year revenue guidance of $950 million to $955 million [24] - The company anticipates an annualized net charge-off rate of 12.1% for the full year 2025 [24]

Core Viewpoint - Oportun Financial Corporation (OPRT) is expected to report a year-over-year increase in earnings despite lower revenues for the quarter ended September 2025, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - The consensus estimate for Oportun Financial's quarterly earnings is $0.26 per share, reflecting a significant year-over-year increase of +1200% [3]. - Revenues are projected to be $238.85 million, which is a decrease of 4.5% compared to the same quarter last year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 3% lower, indicating a reassessment by analysts regarding the company's earnings prospects [4]. - The Most Accurate Estimate for Oportun Financial is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -13.73%, suggesting a bearish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with a positive reading being a strong predictor of an earnings beat [9][10]. - Oportun Financial currently holds a Zacks Rank of 3 (Hold), complicating predictions regarding an earnings beat [12]. Historical Performance - In the last reported quarter, Oportun Financial exceeded the expected earnings of $0.22 per share by delivering $0.31, resulting in a surprise of +40.91% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Industry Comparison - Acadian Asset Management (AAMI), another player in the Zacks Financial - Miscellaneous Services industry, is expected to report earnings of $0.73 per share for the same quarter, representing a year-over-year change of +23.7% [18]. - AAMI's revenues are anticipated to be $145.62 million, up 18.3% from the previous year, with a recent EPS estimate revision of +5.1% [19].

Core Insights - Oportun Financial Corporation is recognized as a leading credit services stock to consider amidst the US rate cut [1] - The company has successfully enhanced its debt capital structure by closing a $247 million three-year revolving term committed warehouse facility with Citizens Financial Group [1][2] Debt Capital Structure - Oportun secured a 12-month extension of an existing warehouse facility with Goldman Sachs, which is expected to reduce financing costs [2] - The total committed warehouse capacity has increased to $1.14 billion from $954 million, indicating a significant enhancement in financial flexibility [2] - The weighted term for the combined warehouse facilities has improved to 25 months from 17 months, further strengthening the company's financial position [2] Management Perspective - The Interim Chief Financial Officer, Paul Appleton, emphasized that reducing total warehouse financing costs while increasing committed warehouse capacity positions Oportun well to continue delivering value for investors and members [3] Company Overview - Oportun Financial Corporation provides loans, savings, and budgeting tools, particularly targeting individuals with limited or no credit history [4] - The company offers personal and auto loans, as well as digital banking and savings products, utilizing AI to assess creditworthiness and assist in managing financial goals [4]

Core Viewpoint - Oportun is set to release its third quarter 2025 financial results on November 4, 2025, after market close [1] Financial Results Announcement - Oportun will host a conference call and earnings webcast on November 4, 2025, at 5:00 pm ET / 2:00 pm PT to discuss the financial results [2] - The conference call will be accessible via Oportun's investor relations website, with a replay available for one year [2] Company Overview - Oportun is a mission-driven financial services company focused on helping members achieve their financial goals through intelligent borrowing, savings, and budgeting [3] - Since its inception, Oportun has provided over $20.8 billion in responsible and affordable credit and saved its members more than $2.5 billion in interest and fees [3] - On average, Oportun members have set aside more than $1,800 annually [3]

Core Insights - Oportun has successfully issued $441 million in two-year revolving fixed rate asset-backed notes, demonstrating its continued access to low-cost funding [2][5] - This transaction marks Oportun's fourth asset-backed securities (ABS) issuance of the year and the third consecutive deal with a AAA rating on the most senior bonds [5] Financial Details - The weighted average coupon for the transaction was 5.69%, with a weighted average yield of 5.77% [4] - The Class A notes were priced with a coupon of 4.53% per annum, while Class B, C, D, and E notes were priced at 5.31%, 5.80%, 6.97%, and 10.82% per annum, respectively [4] Ratings and Structure - The offering included five classes of fixed rate notes, rated by Fitch as AAA, AA-, A-, BBB-, and BB- [3] - Deutsche Bank Securities Inc acted as the sole structuring agent and co-lead, with Goldman Sachs & Co. LLC, Jefferies LLC, and Natixis Corporate & Investment Banking as co-leads [3] Company Overview - Oportun is a mission-driven financial services company that has provided over $20.3 billion in responsible and affordable credit since its inception [7] - The company has saved its members more than $2.4 billion in interest and fees and helped them set aside an average of over $1,800 annually [7]

Core Insights - Oportun has enhanced its debt capital structure by adding a new $247 million warehouse facility and extending an existing facility, which improves its financial position and capacity to provide affordable credit [1][6]. Debt Capital Structure Enhancements - A new $247 million warehouse facility has been established with Citizens Financial Group, Inc. and Community Investment Management [1][6]. - The term of an existing warehouse facility with Goldman Sachs and Jefferies has been extended by 12 months [1][6]. - The weighted average remaining term of combined warehouse facilities has increased from 17 months to 25 months [1][6]. Debt Repayment - Oportun proactively paid down $17.5 million of higher-cost corporate debt in October, totaling $50 million paid down since October 2024 [1][2][6]. - The initial balance of $235 million on the higher-cost corporate financing facility has been reduced to $185 million [3]. Financial Strategy - The new and extended warehouse facilities are priced more favorably than existing ones, reducing overall warehouse financing costs [2][6]. - The total committed warehouse capacity has increased from $954 million to $1.14 billion [6]. Company Overview - Oportun is a mission-driven financial services company that has provided over $20.8 billion in responsible and affordable credit since its inception [4]. - The company has saved its members more than $2.5 billion in interest and fees, helping them set aside an average of over $1,800 annually [4].

Core Viewpoint - Oportun Financial Corporation (OPRT) has experienced a decline of 8.3% in its stock price over the past week, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, with reduced selling pressure and a potential shift in control from bears to bulls [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, signaling that despite a downtrend, buying interest has emerged to push the stock price up towards the opening price [4][5]. Fundamental Analysis - There has been a recent upward trend in earnings estimate revisions for OPRT, which is a bullish indicator suggesting that analysts expect better earnings than previously predicted [7][8]. - Over the last 30 days, the consensus EPS estimate for the current year has increased by 0.8%, reflecting strong agreement among analysts regarding improved earnings prospects for OPRT [8]. Zacks Rank - OPRT currently holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a higher likelihood of outperforming the market [9][10]. - The Zacks Rank serves as a timing indicator, suggesting that the company's prospects are beginning to improve, further supporting the case for a potential turnaround [10].

Summary of Oportun Financial Conference Call - September 18, 2025 Company Overview - **Company**: Oportun Financial (Ticker: OPRT) - **Industry**: Financial Services, focusing on personal loans and savings solutions - **Founded**: February 2005 - **Key Metrics**: - Over 7.7 million loans originated - More than $20.8 billion in credit extended - 1.3 million members helped to build credit histories - Revenue of approximately $1 billion in 2024 - Adjusted EBITDA of $105 million in 2024 - Adjusted EPS of $0.72 in 2024 [4][5][21] Core Products and Market Focus - **Product Offerings**: - Unsecured personal loans - Secured personal loans (secured by auto) - "Set and Save" savings product - **Target Market**: Low to moderate income individuals, particularly those with thin or no credit files, including both English and Spanish speakers [5][6][13] Financial Performance - **Q2 2025 Results**: - Total revenue: $234 million (down 6% year-over-year) - Net income: $6.9 million; diluted EPS: $0.14 - Adjusted net income: $15 million; adjusted EPS: $0.31 (up from $0.08 year-over-year) - Originations: $481 million (up 11% year-over-year) [21][22][25] - **Credit Performance**: - Annualized net charge-off rate for Q2: 11.6% for front book loans - Back book charge-off rate: 11% [19][20] Strategic Initiatives - **Growth Strategy**: - Focus on expanding secured personal loans, which grew 58% year-over-year to $195 million - Aim to increase secured loans to 50% of the total loan portfolio over time [7][44][46] - **Underwriting Practices**: - Centralized and automated underwriting using AI and machine learning - 100% income verification for borrowers - Enhanced decisioning with transaction data from Plaid [10][11][17] Market Conditions and Resilience - **Economic Outlook**: - Borrowers are resilient despite economic challenges; focus on blue-collar job stability - Delinquencies have decreased year-over-year for six consecutive quarters [34][37] - **Impact of Immigration Policies**: - Business performance remains stable; minimal impact from immigration enforcement on loan performance [38][39] Savings Product Insights - **Set and Save Product**: - Rated highly by Bankrate and Forbes - Average savings of $1,800 annually per member - Revenue model includes a $5 monthly subscription fee and earnings from the Fed funds rate [13][42] Capital Management - **Debt Reduction**: - Debt-to-equity ratio improved from 8.7x to 7.3x - $105 million in operating cash flow used to pay down debt [26][53] - **Securitization**: - Issued $538 million in ABS notes at a 5.29% yield, lower than previous transactions - Strong investor demand and performance in securitization [27][55] Future Outlook - **Guidance for 2025**: - Loan originations growth expected in the 10% range - Full year adjusted EPS guidance increased to $1.20 - $1.40, representing 67% to 94% growth year-over-year [25][29] - **Long-term Goals**: - Continue to optimize credit performance and reduce expenses - Target adjusted ROE of 20% to 28% over time [28][52] Conclusion - **Management Confidence**: The management expresses confidence in the long-term value creation for shareholders and the ongoing recovery of the business, despite recent stock performance [57]

Core Insights - Oportun has awarded 25 scholarships in 2025 to students from California and Texas, recognizing their commitment to education and community despite financial challenges [1][3] - Each scholarship recipient will receive four years of access to Oportun's Set and Save™ app and a savings match of up to $500 [2] - The scholarship program has supported 56 scholars over the past three years, focusing on students pursuing full-time undergraduate education in accredited institutions [4] Scholarship Program Details - The program prioritizes students in non-medical STEM or finance-related majors, requiring an essay on education value and financial wellness [5] - Applications for the 2026 scholarship program will open after January 1, 2026, with details to be announced in the Spring [5] Company Overview - Oportun is a mission-driven financial services company that has provided over $20.8 billion in responsible credit and saved members more than $2.5 billion in interest and fees [6] - The company aims to empower members with tools for intelligent borrowing, savings, and budgeting, helping them set aside an average of over $1,800 annually [6]