Core Insights - Oportun Financial Corporation reported a revenue of $234.3 million for the quarter ended June 2025, reflecting a year-over-year decline of 6.4% [1] - The earnings per share (EPS) for the same period was $0.31, compared to $0.08 a year ago, indicating a significant increase [1] - The revenue fell short of the Zacks Consensus Estimate of $239.43 million by 2.14%, while the EPS exceeded the consensus estimate of $0.22 by 40.91% [1] Revenue Breakdown - Non-interest income was reported at $16.1 million, surpassing the average estimate of $14.94 million, but showing a year-over-year decline of 15.3% [4] - Interest income amounted to $218.3 million, which was below the estimated $224.51 million, representing a 5.7% decrease compared to the previous year [4] - Non-interest income from servicing fees reached $3.6 million, exceeding the average estimate of $2.96 million, and showing a year-over-year increase of 4.1% [4] Stock Performance - Oportun Financial's shares have returned -11.5% over the past month, contrasting with the Zacks S&P 500 composite's increase of 1.2% [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

Washington, D.C. 20549 FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION (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, 2025 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 ...

Core Insights - Oportun Financial Corporation reported quarterly earnings of $0.31 per share, exceeding the Zacks Consensus Estimate of $0.22 per share, and showing significant growth from $0.08 per share a year ago, resulting in an earnings surprise of +40.91% [1] - The company posted revenues of $234.3 million for the quarter ended June 2025, which was below the Zacks Consensus Estimate by 2.14% and down from $250.4 million year-over-year [2] - Oportun Financial shares have increased approximately 63.1% year-to-date, significantly outperforming the S&P 500's gain of 7.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.26 on revenues of $239.14 million, while the estimate for the current fiscal year is $1.19 on revenues of $957.34 million [7] - The estimate revisions trend for Oportun Financial was favorable prior to the earnings release, contributing to a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Financial - Miscellaneous Services industry, to which Oportun Financial belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8] - XP Inc.A, another company in the same industry, is expected to report quarterly earnings of $0.43 per share, reflecting a year-over-year increase of +10.3%, with its consensus EPS estimate revised 17.1% higher in the last 30 days [9][10]

Financial Data and Key Metrics Changes - The company achieved GAAP profitability for the third consecutive quarter, with net income reaching $6.9 million, a year-over-year improvement of $38 million [7][18] - The return on equity (ROE) improved to 7%, up 41 percentage points year-over-year [7] - The annualized net charge-off rate was 11.9%, which is 41 basis points better than the previous year [8][24] - Operating expenses were $94 million, down 13% year-over-year, with a revised full-year expectation of approximately $380 million [9][21] Business Line Data and Key Metrics Changes - Originations for Q2 totaled $481 million, an 11% increase year-over-year [12][19] - The secured personal loans portfolio grew by 58% year-over-year, accounting for 39% of personal loan originations growth [13] - The average loan size decreased by 6%, making it easier for customers to repay loans [51] Market Data and Key Metrics Changes - The company completed a $439 million asset-backed securities (ABS) transaction at a weighted average yield of 5.67%, marking a 128 basis point improvement from the previous transaction [9][26] - Total cash as of June 30 was $228 million, with $97 million unrestricted [25] Company Strategy and Development Direction - The company is focused on improving credit outcomes, strengthening business economics, and identifying high-quality originations [10] - The strategy includes a conservative credit posture and a focus on smaller loans to drive repeat borrowing [55][62] - The company aims to achieve a long-term target of GAAP ROEs of 20% to 28% annually [29] Management's Comments on Operating Environment and Future Outlook - Management noted resilience among customers despite macroeconomic uncertainties, with a focus on maintaining a conservative credit approach [14][65] - The company expects a slower decline in the net charge-off rate for the second half of the year due to higher member repayment rates [15] - Full-year adjusted EPS guidance was increased by 8%, now targeting $1.2 to $1.4 per share, reflecting strong growth compared to last year [16][28] Other Important Information - The company has reduced its debt-to-equity ratio from 7.6 times to 7.3 times quarter-over-quarter [24] - The company has raised over $3 billion in diversified financings since June 2023 [26] Q&A Session Summary Question: Discussion on portfolio performance and repayment rates - Management clarified that elevated repayment rates are not indicative of adverse selection, but rather a result of customers being current on their loans [36][37] Question: Adjusted net income versus adjusted EBITDA guidance - Management explained that strong demand for loans has positively impacted adjusted net income, while adjusted EBITDA guidance remains unchanged due to other factors [38] Question: Competitive environment and repayment behavior - Management indicated that the competitive landscape remains stable, with no significant changes in origination fees, and attributed repayment behavior to smaller loan sizes [51][52] Question: Future expectations for annualized net charge-off rates - Management noted that macroeconomic factors could influence charge-off rates, but emphasized a focus on controlling internal factors like loan sizes [92][93] Question: Operating expenses outlook for 2026 - Management stated that while it is too early to provide specific guidance for 2026, efforts will continue to reduce operating expenses and leverage technology for efficiency [94][96]

Q2 2025 Financial Performance - Net income reached $6.9 million, a year-over-year increase of $38 million[13] - Earnings per share (EPS) amounted to $0.14, up $0.92 year-over-year[13] - Return on equity (ROE) achieved 7.4%, a 41 percentage point increase year-over-year[13] - Adjusted EPS was $0.31, compared to $0.08 in Q2 2024[14] - Adjusted ROE was 16%, versus 3.5% in Q2 2024[14] - Adjusted EBITDA totaled $31 million, a year-over-year increase of $1 million[14] Credit Quality and Operating Efficiency - The net charge-off (NCO) rate was 11.9%, a decrease of 41 basis points year-over-year, with dollar net charge-offs down by 6% year-over-year[14] - The 30+ day delinquency rate was 4.4%, a decrease of 54 basis points year-over-year[14] - Operating expenses (OpEx) amounted to $94.4 million, a 13% year-over-year decline[14] - Q2 risk adjusted net interest margin ratio improved by 192 bps Y/Y to 16.3%[16] - Q2 Adjusted OpEx ratio improved by 46 bps Y/Y to 13.3%[16] Strategic Focus and Future Outlook - The company is raising its 2025 adjusted EPS expectations by 8% at the midpoint[11] - Full-year 2025 adjusted EPS guidance of $1.20-$1.40 reflects 67%-94% growth[14] - The company anticipates full-year 2025 operating expenses of $380 million, a $10 million reduction from prior expectations and a $30 million reduction from 2024's $410 million[14] - The company expects approximately 10% full-year 2025 loan origination growth[14] - Secured personal loan portfolio grew 58% year-over-year in Q2, reaching 7% of owned portfolio[16]

[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 ...