[Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) [Overview of Q2 2025 Performance](index=1&type=section&id=Overview%20of%20Q2%202025%20Performance) Oportun achieved GAAP profitability for the third consecutive quarter in Q2 2025, significantly improving net income and raising full-year Adjusted EPS guidance Q2 2025 Financial Performance Highlights | Metric | 2Q25 GAAP | 2Q24 GAAP | 2Q25 Adjusted | 2Q24 Adjusted | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $234M | $250M | - | - | | Net income (loss) | $6.9M | $(31)M | $15M | $3.2M | | Diluted EPS | $0.14 | $(0.78) | $0.31 | $0.08 | | Adjusted EBITDA | - | - | $31M | $30M | - The company achieved its third consecutive quarter of GAAP profitability, with a **$38 million** year-over-year improvement in net income and a **$0.92** improvement in EPS[2](index=2&type=chunk)[3](index=3&type=chunk) - Operating expenses were reduced by **13%** year-over-year, contributing to margin expansion[2](index=2&type=chunk) - Full-year 2025 Adjusted EPS guidance was raised by **8%** at the midpoint to a new range of **$1.20 to $1.40**, representing **67% to 94%** growth over the previous year[2](index=2&type=chunk)[3](index=3&type=chunk) - The company recently completed an ABS transaction at a significantly lower cost of capital, earning its first **AAA rating**[3](index=3&type=chunk) [Financial and Operating Results](index=2&type=section&id=Financial%20and%20Operating%20Results) [Operational Drivers](index=2&type=section&id=Operational%20Drivers) Q2 2025 saw 11% growth in Aggregate Originations and improved Risk Adjusted Net Interest Margin, despite declines in Portfolio Yield and Net Interest Margin Ratio - Aggregate Originations increased by **11%** YoY to **$481 million**, with full-year 2025 growth expected to be in the **10%** range[7](index=7&type=chunk) - Portfolio Yield decreased by **106 basis points** YoY to **32.8%**, primarily due to a higher rate of loan repayment[8](index=8&type=chunk) - Net Interest Margin Ratio decreased by **244 basis points** YoY to **26.3%** due to lower Portfolio Yield and higher cost of funds[9](index=9&type=chunk) - Risk Adjusted Net Interest Margin Ratio increased by **192 basis points** YoY to **16.3%**, driven by improved credit performance and favorable loan portfolio mark-to-market adjustments[10](index=10&type=chunk) [Financial Results](index=2&type=section&id=Financial%20Results) Q2 2025 saw a 6% decline in total revenue but a 74% surge in net revenue and a 13% reduction in operating expenses, leading to GAAP net income of $6.9 million Q2 2025 Key Financial Results | Financial Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | $234M | $250M | -6% | | Net Revenue | $105M | $60M | +74% | | Operating Expense | $94M | $109M | -13% | | Net Income (Loss) | $6.9M | $(31)M | +$37.9M | | Adjusted Net Income | $15M | $3.2M | +369% | | Diluted EPS | $0.14 | $(0.78) | +$0.92 | | Adjusted EPS | $0.31 | $0.08 | +288% | - The company lowered its full-year 2025 GAAP operating expense forecast to approximately **$380 million**, down from a prior expectation of **$390 million**[12](index=12&type=chunk) - Adjusted EBITDA increased slightly to **$31 million** from **$30 million** in the prior-year quarter, driven by cost reductions and improved credit performance[15](index=15&type=chunk) [Key Metrics and Business Updates](index=2&type=section&id=Key%20Metrics%20and%20Business%20Updates) [Credit and Operating Metrics](index=2&type=section&id=Credit%20and%20Operating%20Metrics) Q2 2025 saw continued improvement in credit quality with lower charge-off and delinquency rates, enhanced operational efficiency, and a significant recovery in profitability metrics Q2 2025 Credit and Operating Metrics | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Annualized Net Charge-Off Rate | 11.9% | 12.3% | -41 bps | | 30+ Day Delinquency Rate | 4.4% | 5.0% | -54 bps | | Operating Expense Ratio | 14.2% | 16.0% | -179 bps | | Return On Equity (ROE) | 7% | (34)% | +41 p.p. | | Adjusted ROE | 16% | 4% | +12 p.p. | - Dollar Net Charge-Offs declined **6%** year-over-year, marking the seventh consecutive quarterly decrease[16](index=16&type=chunk) - The **30+ Day Delinquency Rate** has now declined for six consecutive quarters[16](index=16&type=chunk) [Secured Personal Loans](index=4&type=section&id=Secured%20Personal%20Loans) The secured personal loan portfolio expanded to $195 million, demonstrating superior credit performance with 500 basis points lower losses and double the revenue per loan compared to unsecured loans - The secured personal loan receivables balance grew to **$195 million** (**7%** of owned principal) as of June 30, 2025, up from **$123 million** (**5%** of owned principal) in the prior year[20](index=20&type=chunk) - Secured personal loans exhibit significantly better credit performance, with losses approximately **500 basis points** lower than unsecured loans in 2024[20](index=20&type=chunk) - These loans are expected to generate roughly **double the revenue per loan** compared to unsecured loans, driven by higher average loan sizes[20](index=20&type=chunk) [Funding and Liquidity](index=4&type=section&id=Funding%20and%20Liquidity) As of June 30, 2025, Oportun maintained a strong liquidity position with $228 million in cash and $618 million in undrawn warehouse capacity, despite an increase in the Cost of Debt Funding and Liquidity Metrics | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total Cash | $228M | - | | Cost of Debt | 8.6% | 7.7% | | Debt-to-Equity | 7.3x | 7.9x | | Undrawn Warehouse Capacity | $618M | - | - The company's personal loan warehouse lines are committed through September **2027**, April **2028**, and August **2028**, providing long-term funding stability[21](index=21&type=chunk) [Financial Outlook for Third Quarter and Full Year 2025](index=5&type=section&id=Financial%20Outlook%20for%20Third%20Quarter%20and%20Full%20Year%202025) [Guidance](index=5&type=section&id=Guidance) Oportun provided Q3 and full-year 2025 guidance, projecting total revenue of $945-$960 million and raising full-year Adjusted EPS to $1.20-$1.40, while expecting GAAP profitability Q3 and Full Year 2025 Financial Guidance | Guidance | 3Q 2025 | Full Year 2025 | | :--- | :--- | :--- | | Total Revenue | $237 - $242M | $945 - $960M | | Annualized Net Charge-Off Rate | 11.8% +/- 15 bps | 11.9% +/- 30 bps | | Adjusted EBITDA | $34 - $39M | $135 - $145M | | Adjusted Net Income | — | $58 - $67M | | Adjusted EPS | — | $1.20 - $1.40 | | GAAP Net Income | — | GAAP Profitable | [Financial Statements and Key Metrics](index=8&type=section&id=Financial%20Statements%20and%20Key%20Metrics) [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 saw total revenue decline to $234.3 million, but net revenue increased to $104.6 million, leading to a net income of $6.9 million, a significant improvement from the prior year's loss Condensed Consolidated Statements of Operations (in millions) | (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total revenue | $234.3 | $250.4 | | Net revenue | $104.6 | $60.0 | | Total operating expenses | $94.4 | $109.2 | | Net income (loss) | $6.9 | $(31.0) | | Diluted Earnings (Loss) per Share | $0.14 | $(0.78) | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets slightly decreased to $3.201 billion, while total liabilities also fell, leading to an increase in total stockholders' equity to $376.0 million Condensed Consolidated Balance Sheets (in millions) | (in millions) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total assets | $3,201.1 | $3,227.1 | | Loans receivable at fair value | $2,755.5 | $2,778.5 | | Total liabilities | $2,825.1 | $2,873.3 | | Total stockholders' equity | $376.0 | $353.8 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, operating activities provided $205.5 million in cash, resulting in a net increase of $13.6 million in cash and equivalents, ending at $228.2 million Condensed Consolidated Statements of Cash Flows (in millions) | (in millions) | Six Months Ended June 30, 2025 | | :--- | :--- | | Net cash provided by operating activities | $205.5 | | Net cash used in investing activities | $(107.9) | | Net cash used in financing activities | $(84.0) | | Net increase in cash and cash equivalents | $13.6 | | Cash and cash equivalents end of period | $228.2 | [Consolidated Key Performance Metrics](index=11&type=section&id=Consolidated%20Key%20Performance%20Metrics) Q2 2025 key performance metrics indicate positive trends with increased Aggregate Originations and improved credit quality, reflected in lower delinquency and charge-off rates Consolidated Key Performance Metrics (in millions, except percentages) | Key Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Aggregate Originations (Millions) | $480.8 | $434.8 | | Portfolio Yield (%) | 32.8% | 33.9% | | 30+ Day Delinquency Rate (%) | 4.4% | 5.0% | | Annualized Net Charge-Off Rate (%) | 11.9% | 12.3% | | Owned Principal Balance at End of Period (Millions) | $2,636.4 | $2,719.0 | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=12&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) [Definitions of Non-GAAP Measures](index=12&type=section&id=Definitions%20of%20Non-GAAP%20Measures) Oportun utilizes non-GAAP measures like Adjusted EBITDA, Adjusted Net Income, and Adjusted ROE to offer a clearer view of core business performance and facilitate period-to-period comparisons - Adjusted EBITDA is defined as net income adjusted for items such as income taxes, depreciation, stock-based compensation, certain interest expenses, non-recurring charges, and fair value adjustments[44](index=44&type=chunk)[46](index=46&type=chunk) - Adjusted Net Income excludes the after-tax impact of non-cash stock-based compensation, certain non-recurring charges, and fair value adjustments on asset-backed notes[45](index=45&type=chunk)[47](index=47&type=chunk) - Risk Adjusted Net Interest Margin is a metric designed to show the net margin on the loan portfolio after accounting for borrowing costs, credit losses, and fair value adjustments[49](index=49&type=chunk) [Reconciliation Tables](index=15&type=section&id=Reconciliation%20Tables) The reconciliation tables detail adjustments from GAAP Net Income of $6.9 million to derive Adjusted EBITDA of $31.2 million and Adjusted Net Income of $14.7 million for Q2 2025 Reconciliation of Net Income to Adjusted EBITDA (Q2 2025, in millions) | Line Item | Amount | | :--- | :--- | | **Net income (Loss)** | **$6.9** | | Income tax expense | $3.2 | | Interest on corporate financing | $9.4 | | Depreciation and amortization | $10.7 | | Stock-based compensation expense | $2.7 | | Other non-recurring charges | $4.0 | | Fair value mark-to-market adjustment | $(5.7) | | **Adjusted EBITDA** | **$31.2** | Reconciliation of Net Income to Adjusted Net Income (Q2 2025, in millions) | Line Item | Amount | | :--- | :--- | | **Net income (Loss)** | **$6.9** | | Income tax expense | $3.2 | | Stock-based compensation expense | $2.7 | | Other non-recurring charges | $4.0 | | Mark-to-market adjustment on ABS notes | $3.4 | | Adjusted income before taxes | $20.1 | | Normalized income tax expense | $(5.4) | | **Adjusted Net Income** | **$14.7** |

Core Insights - Oportun Financial Corporation reported a GAAP net income of $6.9 million for Q2 2025, marking a $38 million improvement year-over-year [1][2] - The company achieved a GAAP EPS of $0.14, an increase of $0.92 compared to the same quarter last year [1][2] - Adjusted EPS rose to $0.31, reflecting a 288% increase from the prior-year quarter [1][2] - Operating expenses decreased by 13% year-over-year, contributing to margin expansion [1][12] - The company raised its full-year 2025 Adjusted EPS guidance by 8% at the midpoint to a range of $1.20 to $1.40, indicating strong growth of 67% to 94% over the previous year [2][22] Financial Performance - Total revenue for Q2 2025 was $234 million, down 6% from $250 million in Q2 2024, primarily due to the absence of revenue from a sold credit card portfolio [11][12] - Net revenue increased by 74% year-over-year to $105 million, driven by reduced fair value marks and net charge-offs [11] - Adjusted EBITDA for Q2 2025 was $31 million, slightly up from $30 million in the prior-year quarter [15] Operational Metrics - Aggregate originations reached $481 million, an 11% increase compared to $435 million in the prior-year quarter [5][7] - The owned principal balance at the end of the period was $2.6 billion, a decrease of 3% from $2.7 billion in the prior-year quarter [5] - The annualized net charge-off rate improved to 11.9%, down 41 basis points from 12.3% in the prior-year quarter [5][17] - The 30+ day delinquency rate decreased to 4.4%, down from 5.0% in the prior-year quarter [5][17] Guidance and Outlook - For the full year 2025, total revenue is expected to be between $945 million and $960 million, with a slight reduction in the higher end of the range by $10 million [2][22] - The company anticipates an annualized net charge-off rate of 11.9% for the full year, with a range of +/- 30 basis points [22] - Adjusted EPS guidance for the full year remains at $1.20 to $1.40 per share [22] Funding and Liquidity - As of June 30, 2025, total cash was $228 million, including cash and cash equivalents of $97 million and restricted cash of $131 million [21] - The cost of debt was reported at 8.6%, with a debt-to-equity ratio of 7.3x [21] - The company had $618 million of undrawn capacity on its existing $954 million personal loan warehouse lines [21]

SAN CARLOS, Calif., July 23, 2025 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT), a mission-driven financial services company, will release financial results for its second quarter 2025 on Wednesday, August 6, 2025, after market close. Oportun will host a conference call and earnings webcast to discuss results on Wednesday, August 6, 2025, at 5:00 pm ET / 2:00 pm PT. A live webcast of the call will be accessible from Oportun’s investor relations website at investor.oportun.com, and a webcast replay of the call ...

Core Insights - Oportun has been recognized for the second consecutive year in CNBC's World's Top Fintech Companies 2025, highlighting its innovative financial tools [1][2][3] - The recognition is based on an analysis of key performance indicators from over 2,000 eligible companies, utilizing publicly available data [2] - Oportun's CEO emphasized the importance of this recognition as validation of the company's mission and the positive impact of its technology-driven solutions [3] Company Overview - Oportun is a mission-driven financial services company focused on helping members achieve their financial goals through intelligent borrowing, savings, and budgeting tools [4] - Since its inception, Oportun has provided over $20.3 billion in responsible credit, saving members more than $2.4 billion in interest and fees, and helping them set aside an average of over $1,800 annually [4]

SAN CARLOS, Calif., July 14, 2025 (GLOBE NEWSWIRE) -- Oportun Financial Corporation (Nasdaq: OPRT) (“Oportun” or the “Company”), a mission-driven financial services company, today announced it has entered into a multi-year cooperation agreement (the “Agreement”) with Findell Capital Management LLC (collectively with its affiliates, “Findell”) to end the contested director election. Under the terms of the Agreement, Findell has agreed to support and vote in favor of Oportun’s nominees, CEO Raul Vazquez and C ...

Notes Findell Capital Has Quietly Sold 500,000 Shares of Stock While Publicly Urging Others To BuySAN CARLOS, Calif., July 09, 2025 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT) (“Oportun” or the “Company”), a mission-driven financial services company, today issued a letter to stockholders ahead of its July 18 annual meeting. The full text of the letter to stockholders follows: Dear Fellow Oportun Stockholders, We are writing to encourage you to vote TODAY “FOR” each of our director nominees – CEO Raul Vazquez ...

Company Overview - Oportun Financial Corporation (OPRT) shares increased by 8.6% to close at $7.69, supported by high trading volume compared to normal sessions [1] - The stock has gained 0.7% over the past four weeks [1] Recent Developments - Oportun has extended its gains for three consecutive sessions after issuing a letter to shareholders supporting CEO Raul Vazquez, urging investors to vote for his retention on the board [2] - This move countered efforts by Findell Capital Management to remove him, which positively influenced investor sentiment and boosted OPRT stock [2] Earnings Expectations - The company is expected to report quarterly earnings of $0.21 per share, reflecting a year-over-year increase of 162.5% [3] - Revenue is anticipated to be $239.79 million, a decrease of 4.2% from the same quarter last year [3] Stock Performance Insights - The consensus EPS estimate for Oportun has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] - Monitoring OPRT is advised to determine if the recent stock price increase can lead to further strength [4] Industry Context - Oportun Financial is part of the Zacks Financial - Miscellaneous Services industry, which includes StepStone Group Inc. (STEP) [5] - STEP's stock closed at $57.08, with a slight increase of 0.1% in the last trading session, but has returned -1.8% over the past month [5] - The consensus EPS estimate for StepStone has remained unchanged at $0.41, representing a decline of 14.6% from the previous year [6]

Core Viewpoint - Oportun's Board of Directors urges stockholders to vote "FOR" CEO Raul Vazquez and Carlos Minetti in the upcoming Annual Meeting, emphasizing the importance of maintaining strong leadership for the company's continued progress [2][7]. Company Leadership - The Board expresses concern over Findell Capital Management's attempt to remove CEO Raul Vazquez from the Board, describing it as a damaging and unconventional move that could undermine the company's stability and progress [3][5]. - Under Raul Vazquez's leadership, Oportun has executed a strategic plan that has led to improved financial performance, with the stock price increasing by over 80% this year [3][4]. Stockholder Communication - The Board highlights the necessity of clear communication between management and the Board, which is facilitated by Raul's presence on the Board, enhancing decision-making processes [6]. - The Board encourages stockholders to vote using the GREEN proxy card to support their nominees and to withhold votes for Findell's candidate, stressing the importance of a unified leadership approach [8]. Financial Performance - Oportun has provided over $20.3 billion in responsible credit and saved its members more than $2.4 billion in interest and fees, demonstrating its commitment to financial empowerment [9].

Core Viewpoint - Institutional Shareholder Services Inc. (ISS) has recommended stockholders vote for the election of Warren Wilcox to Oportun's Board of Directors and withhold votes for CEO Raul Vazquez due to his poor performance and governance issues [1][2]. Group 1: Corporate Governance Issues - ISS highlighted years of poor corporate governance at Oportun, linking it to a significant decline in share price, approximately 55% since the company's IPO in 2019 [1][2]. - The board's structure includes features that do not align with shareholder interests, such as a classified board and supermajority vote standards, which limit shareholder actions [2]. - There are serious concerns regarding board composition and independence, raising questions about the board's ability to hold management accountable [2]. Group 2: Performance and Strategic Decisions - Oportun's shift away from its core business in 2021 was described as value destructive, leading to increased costs and eroded profitability [2]. - The board's support for poor governance practices has resulted in consistent opposition from shareholders, as reflected in historical voting results [2]. Group 3: Recommendations for Change - The election of Warren Wilcox is seen as beneficial, providing an independent perspective and relevant experience in consumer lending, which could help improve governance and strategic decisions [2][3]. - Findell Capital Partners emphasizes the need for change in leadership to break the cycle of value-destructive decisions and refocus on Oportun's core strengths in lending [3].

Core Viewpoint - Oportun is committed to reaching a constructive compromise with Findell Capital Management and has made multiple proposals to change the Board's composition, which Findell has not responded to [1][3] Group 1: Board Actions - The Board has decided to reduce the number of directors and rebalance the skills and experience of its members, reflecting stockholder feedback [2] - The decision includes not nominating incumbent Lead Independent Director Neil Williams and director Scott Parker, both of whom are former Chief Financial Officers [2] Group 2: Company Overview - Oportun is a mission-driven financial services company that has provided over $20.3 billion in responsible credit and saved its members more than $2.4 billion in interest and fees since its inception [3] - The company empowers its members to build a better financial future by offering intelligent borrowing, savings, and budgeting capabilities, helping them set aside an average of over $1,800 annually [3]