Core Insights - Oportun Financial (OPRT) is utilizing technology, specifically artificial intelligence (AI) and machine learning (ML), to enhance its underwriting standards and provide personalized customer service [1][9] - The company has improved its V12 credit model by incorporating data from the inflationary period, which aligns with conservative credit standards [2] - OPRT's annualized net charge-off (NCO) rate decreased to 12% in 2024 from 12.2% in 2023, although it rose to 12.2% in Q1 2025 due to a reduction in back-book loan exposure [3] - The lending database allows OPRT to scale operations efficiently with minimal infrastructure investment [4] - OPRT's technological advancements provide a competitive edge over traditional lending peers, enabling rapid market share growth and cost efficiency [5] Industry Comparison - Peers such as Enova International, Inc. (ENVA) and Regional Management Corp. (RM) are also leveraging technology to enhance credit underwriting capabilities [6] - Enova employs The Colossus Analytics Engine, with approximately 90% of its models being ML-based [6] - Regional Management has improved its technological infrastructure, achieving a delinquency rate of 7.1% in Q1 2025 [7] Financial Performance - OPRT's shares have increased by 80.4% this year, contrasting with a 6.3% decline in the industry [8] - The company trades at a price-to-book ratio of 0.72, significantly below the industry average [10] - Zacks Consensus Estimate indicates OPRT's earnings growth of 63.9% and 39.2% for 2025 and 2026, respectively, although estimates have been revised downward recently [12]

Core Points - Oportun is urging stockholders to vote "FOR" its nominees, CEO Raul Vazquez and Carlos Minetti, using the GREEN proxy card in the upcoming Annual Meeting scheduled for July 18, 2025 [1][2] - The company emphasizes its commitment to driving long-term stockholder value through proactive steps taken by its Board and management [1] - Oportun has provided over $20.3 billion in responsible and affordable credit since its inception, saving members more than $2.4 billion in interest and fees [3] Company Overview - Oportun is a mission-driven financial services company focused on empowering its members with intelligent borrowing, savings, and budgeting capabilities [3] - The average amount saved by members annually is over $1,800, reflecting the company's dedication to helping members achieve their financial goals [3]

NEW YORK, June 17, 2025 /PRNewswire/ -- Findell Capital Partners, LP, (together with its affiliates, "Findell," "we" or "us") one of the largest stockholders of Oportun Financial Corporation (NASDAQ: OPRT) ("Oportun" or the "Company"), today issued the following statement:"While we have gone to great lengths to engage privately with the Board on ideas for creating value and a settlement, we have been met with sustained resistance. Oportun is wasting millions of stockholder dollars to fight one of its larges ...

Core Viewpoint - Findell Capital Partners emphasizes the need for increased independence and consumer finance expertise on the board of Oportun Financial Corporation, criticizing the current board's oversight and management accountability [1][2]. Group 1: Board Performance and Management Issues - The legacy Board of Directors has failed to effectively oversee management, leading to significant losses and a decline in stockholder capital, with nearly $1.5 billion lost due to poor strategic decisions [3]. - CEO Raul Vazquez's management has resulted in a 76% decline in stock price from September 2019 to March 2023, with Oportun underperforming compared to its peer, OneMain Holdings, in key financial metrics [3]. - The current board lacks lending experience, particularly in subprime lending, and several members have potential conflicts of interest due to past relationships [3]. Group 2: Proposed Changes and Opportunities - Findell advocates for the election of Warren Wilcox, an independent director with relevant subprime lending expertise, to improve board oversight and eliminate legacy control [2][3]. - The company has the potential to reduce corporate overhead by $80 million and achieve an operating expense ratio of less than 12%, aligning more closely with competitors [3]. - Oportun could target a pre-tax return on assets (ROA) of 8-10% and maintain a conservative leverage ratio to achieve over 40% return on equity (ROE) [3]. Group 3: Financial Projections - If Oportun reduces annual operating expenses to $325 million by the end of 2026, the stock could potentially reach over $22 per share, assuming a pre-tax ROA of 8-10% and a market multiple of 6-7X earnings [3][4].

Core Insights - Oportun Financial Corporation's shares have increased by 80.7% in 2025, outperforming both its peers and the broader Finance sector [1][5] - The company has shown solid loan growth and revenue performance, although there are concerns regarding tariff-related issues and geopolitical tensions [2][3] Financial Performance - Oportun's total revenues and loans receivable at fair value have experienced a 5-year compound annual growth rate (CAGR) of 10.8% and 8.1%, respectively [3] - The company expects total revenues to be between $945 million and $970 million in 2025, down from $1 billion in 2024 [12][24] - Management anticipates adjusted earnings per share (EPS) to rise to a range of $1.10 to $1.30 in 2025, up from $0.72 in 2024 [5][24] Growth Drivers - Oportun is driving loan growth through diverse offerings, including personal loans and "lending as a service" programs, which help expand its client base [7] - The company has been leveraging technology, particularly AI and machine learning, to enhance underwriting standards and improve customer service [13][15] - Rising non-interest income has been supported by higher subscriptions and servicing fees, with a CAGR of 6.4% over the five years ended 2024 [8] Valuation and Market Position - Oportun's price-to-book (P/B) ratio is 0.72X, significantly lower than the industry average of 3.48X, indicating that the stock is undervalued [18][20] - The company's return on equity (ROE) stands at 10.12%, which is favorable compared to the industry average of 8.06% [26][29] Challenges - Operating expenses have shown a 5-year CAGR of 2.5%, driven by increased sales, marketing, and technology costs [30] - The company has faced weak asset quality, with net charge-offs (NCOs) reflecting a CAGR of 19.7% over the past five years [31]

Core Viewpoint - Oportun's Board of Directors emphasizes proactive measures taken to enhance long-term stockholder value and urges stockholders to vote for the re-election of CEO Raul Vazquez and Carlos Minetti using the GREEN proxy card [1][2][18] Board Actions and Strategy - The Board has conducted a comprehensive review of CEO Raul Vazquez's performance and unanimously concluded he is the right leader for the company [4] - A detailed plan was announced in February 2023 to reduce expenses and streamline operations, which included multiple reductions in force and the sale of the credit card portfolio [8][9][12] - Oportun has achieved $240 million in cost savings since mid-2022 and returned to GAAP profitability over the last two quarters [8][9] Financial Performance - The company executed a $439 million asset-backed securitization transaction with AAA-rated notes, achieving a 5.67% average yield, which was 128 basis points lower than previous financing [10] - The financial performance has shown continual improvement in 2024 and the first quarter of 2025, indicating a positive trajectory for the company [16] Board Composition and Expertise - The Board has appointed four new independent directors in the last 16 months and is reducing its size from 10 to 8 members to enhance focus and effectiveness [14][15] - The expertise of the Board members, including backgrounds in consumer finance regulation, operational excellence, and financial reporting, is aligned with the company's needs [13] Call to Action - Stockholders are strongly encouraged to vote for the company's nominees, emphasizing the importance of their votes and the need to discard any opposing proxy cards [19][20]

Summary of Oportun Financial (OPRT) Conference Call - June 11, 2025 Company Overview - **Company**: Oportun Financial (Ticker: OPRT) - **Industry**: Financial Services, specifically focused on providing loans and savings products to underserved individuals - **Target Market**: Low to moderate income individuals with thin or no credit files, primarily English and Spanish speaking [4][5] Core Products - **Unsecured Personal Loans**: Largest and most profitable segment, average loan size of approximately $3,200, average term of 26 months, and weighted average APR of 35.7% [6] - **Secured Personal Loans**: Grew 59% year-over-year to $178 million, representing 7% of the portfolio, with average loan size of $6,700, average term of 35 months, and weighted average APR of 35.1% [6] - **Set and Save Savings Product**: Rated highly by Bankrate and Forbes, helping members save an average of $1,800 annually, contributing to over $11.7 billion saved since launch [12][13] Financial Performance - **Q1 2025 Results**: - Loan originations of $469 million, up 39% year-over-year - Total revenue of $236 million, down 6% year-over-year due to the absence of credit card revenue - Adjusted net income of $18.6 million, adjusted EPS of $0.40, and GAAP EPS of $0.21 [19][20] - **Charge Off Rates**: - Front book annualized net charge off rate of 11.5%, targeting a range of 9% to 11% [18][32] - Back book net loss rate at 23.1%, making up 4% of the loan portfolio [18] Strategic Priorities - **2025 Focus Areas**: - Improving credit outcomes - Strengthening business economics - Identifying high-quality originations [13][14] - **Growth Strategy**: - Targeting 10% growth in loan originations for the year - Emphasis on secured personal loans, which have superior credit performance [15][21] Underwriting and Technology - **AI-Driven Underwriting**: - 100% automated underwriting process using AI and machine learning to analyze billions of data points [8][9] - Focus on verifying incomes and assessing borrowers' ability to pay [10][16] - **Version 12 Underwriting Model**: - Incorporates inflation data and is continuously being enhanced [48][49] Capital and Liquidity - **Debt Management**: - Reduced debt to equity ratio from 8.7x to 7.6x, with no mandatory corporate debt repayments for the remainder of 2025 [22][23] - **Funding Capacity**: - Total cash of $231 million, with $317 million in available funding capacity through warehouse lines [23] Market Position and Future Outlook - **Market Expansion**: - Currently operating in 41-42 states, with interest in expanding to New York [46][47] - **Long-Term Goals**: - Aim to achieve a leverage ratio of 6x and maintain a focus on profitable growth and debt reduction [34][35] Additional Insights - **Customer Engagement**: - 75% of loan applicants used mobile or digital channels for applications, highlighting the importance of a multichannel strategy [11][45] - **Cross-Selling Opportunities**: - Synergies between credit and savings products are recognized, although specific cross-sales metrics are not disclosed [38][39] This summary encapsulates the key points discussed during the conference call, providing insights into Oportun Financial's operations, financial performance, strategic priorities, and market outlook.

Core Viewpoint - Oportun has successfully issued $439 million in asset-backed notes, achieving its first AAA rating on the most senior bonds, reflecting the company's growth and resilience in providing affordable credit [1][4]. Group 1: Financial Details - The issuance consists of two-year revolving fixed rate asset-backed notes secured by a pool of unsecured and secured installment loans [1]. - The weighted average coupon on the transaction was 5.57%, with a weighted average yield of 5.67%, which is 128 basis points lower than the previous ABS financing in January [3][4]. - The Class A notes were priced with a coupon of 4.88% per annum, while Class B, C, D, and E notes had coupons of 5.28%, 5.52%, 6.45%, and 9.40% respectively, with Class E yielding 10.19% per annum [3]. Group 2: Ratings and Structure - The offering included five classes of fixed rate notes, rated by Fitch as AAA, AA-, A-, BBB-, and BB- for Classes A through E respectively [2]. - Goldman Sachs & Co. LLC acted as the sole structuring agent and co-lead, with Deutsche Bank Securities Inc., Jefferies, and Natixis Corporate & Investment Banking also serving as co-leads [2]. Group 3: Company Background - Oportun is a mission-driven financial services company that has provided over $20.3 billion in responsible and affordable credit since its inception, saving members more than $2.4 billion in interest and fees [6]. - The company aims to empower its members with intelligent borrowing, savings, and budgeting capabilities to help them build a better financial future [6].

Core Points - Findell Capital Partners has filed a definitive proxy statement urging Oportun Financial Corporation shareholders to vote against the legacy board members, particularly targeting Ms. Ginny Lee for her role in the removal of qualified director Scott Parker [1][2][4] - The legacy board members, including Ms. Lee, have overseen significant value destruction, with Ms. Lee's tenure resulting in a Total Shareholder Return (TSR) of -74% [5][7] - Mr. Parker, who had a TSR of +190% during his time on the board, is recommended for reappointment due to his relevant expertise in lending [3][9] Board Performance - Ms. Lee, as Chair of the Nominating, Governance and Social Responsibility Committee, is criticized for orchestrating the removal of Scott Parker, the most qualified board member with lending experience [2][4] - Other legacy board members, such as Louis Miramontes, Sandra Smith, and Jo Anne Barefoot, have also shown poor performance with TSRs of -75%, -58%, and -74% respectively, and lack lending experience [5][6][7] Concerns About Leadership - There are concerns that if Ms. Lee or other legacy directors become the lead independent director, it would be detrimental to the company, given their lack of qualifications and experience in lending [5][8] - Ms. Lee's prior relationship with Mr. Raul Vazquez raises questions about her ability to oversee his actions, which is critical for board governance [8] Call to Action - The company urges shareholders to vote for Findell's nominee Warren Wilcox and against Mr. Vazquez at the upcoming 2025 Annual Meeting to ensure better governance and oversight [9]

Core Viewpoint - Oportun is urging stockholders to support its management team and board nominees, emphasizing the company's strong financial performance and strategic direction ahead of the 2025 Annual Meeting [1][3][5]. Group 1: Financial Performance - Oportun's Q1 2025 performance showed aggregate originations grew by nearly 40% year-over-year [5]. - The adjusted operating expense ratio reached 13.3%, marking the second lowest in the company's history as a public entity [5][17]. - The company expects adjusted EPS for 2025 to be between $1.10 and $1.30, reflecting a year-over-year growth of 53% to 81% [5][18]. Group 2: Strategic Initiatives - Oportun has streamlined its product portfolio, reduced costs, and focused on improving credit outcomes and business economics [4][15]. - The company has taken decisive actions to enhance credit quality, resulting in a fifth consecutive year-over-year decline in the 30+ day delinquency rate [5][17]. - Oportun's strategic priorities include improving credit outcomes, strengthening business economics, and identifying high-quality originations [16][18]. Group 3: Governance and Board Nominees - Oportun is nominating Raul Vazquez and Carlos Minetti for election to the Board, highlighting their qualifications and alignment with stockholder interests [20][21]. - The Board emphasizes that removing CEO Raul Vazquez would disrupt the company's progress and leadership continuity [25][28]. - Stockholders are encouraged to vote using the GREEN proxy card to support the company's nominees [3][29]. Group 4: Company Background and Mission - Oportun has provided over $20 billion in credit, helping more than 1.3 million members build credit histories [7]. - The company aims to offer responsible credit at lower costs than traditional financial institutions, focusing on underserved communities [6][8]. - Oportun's mission is to provide inclusive, affordable financial services that empower individuals to build better futures [6].