Oportun Financial Corporation (OPRT) reported $250 million in revenue for the quarter ended September 2024, representing a year-over-year decline of 6.8%. EPS of $0.02 for the same period compares to -$0.46 a year ago. ...

Lending and Credit Performance - The company has extended over $19.2 billion in responsible credit through more than 7.3 million loans and credit cards in its 18-year lending history [125]. - As of September 30, 2024, the average loan size for personal loans originated was $3,173, with a weighted average term of 41 months and an APR of 33.9% [128]. - The average loan size for secured personal loans originated during the three months ended September 30, 2024, was $7,088, with a weighted average term of 51 months and an APR of 30.7% [129]. - The average APR of outstanding credit card receivables was 34.1% as of September 30, 2024, with credit lines ranging from $300 to $3,000 [130]. - Aggregate Originations decreased to $480.2 million for the three months ended September 30, 2024, representing a 0.5% decrease from $482.7 million for the same period in 2023 [141]. - For the nine months ended September 30, 2024, Aggregate Originations decreased to $1,253.1 million, an 8.9% decrease from $1,375.8 million in 2023 [142]. - The company has implemented tighter credit standards since July 2022, which has positively impacted credit performance on newly originated loans [146]. Financial Performance - Total revenue for the three months ended September 30, 2024, was $249.951 million, down from $268.220 million in 2023 [154]. - Net loss for the three months ended September 30, 2024, was $(29.956) million compared to $(21.138) million in 2023 [154]. - Operating expenses for the three months ended September 30, 2024, totaled $102.081 million, a decrease from $122.506 million in 2023 [154]. - Interest income decreased by $13.2 million, or 5.4%, from $243.3 million for the three months ended September 30, 2023, to $230.0 million for the same period in 2024, primarily due to a 7.2% decline in Average Daily Principal Balance [155]. - Non-interest income decreased by $5.1 million, or 20.3%, from $25.0 million for the three months ended September 30, 2023, to $19.9 million for the same period in 2024, driven by decreases in fees related to the Pathward program and loan sales [157]. - Total interest expense increased by $8.8 million, or 18.7%, from $47.0 million for the three months ended September 30, 2023, to $55.7 million for the same period in 2024, due to a 153 basis point increase in Cost of Debt [161]. - Adjusted EBITDA for the three months ended September 30, 2024, was $31.366 million, compared to $14.455 million for the same period in 2023, reflecting a significant increase [213]. - Adjusted Net Income for the three months ended September 30, 2024, was $931, compared to a loss of $11.771 million for the same period in 2023, indicating improved profitability [216]. Delinquency and Charge-Off Rates - The 30+ Day Delinquency Rate improved to 5.2% as of September 30, 2024, down from 5.5% in 2023, attributed to enhanced credit quality [144]. - Annualized Net Charge-Off Rate for the three months ended September 30, 2024, was 11.9%, slightly up from 11.8% in 2023, while remaining flat at 12.1% for the nine months [145]. - Total charge-offs, net of recoveries for the nine months ended September 30, 2024, were $251.6 million, a decrease of $21.5 million or 7.9% from $273.0 million in 2023 [172]. - Annualized Net Charge-Off Rate remained flat at 12.1% for the nine months ended September 30, 2024, compared to 12.1% for the same period in 2023 [172]. Cost Management and Operational Efficiency - The company plans to reduce operating expenses by an additional $30 million on an annualized basis to improve profitability [137]. - A workforce reduction of approximately 12% of corporate staff was implemented, resulting in nonrecurring, pre-tax charges of $2.0 million for the nine months ended September 30, 2024 [137]. - Technology and facilities expense decreased by $36.4 million, or 22.1%, from $164.7 million for the nine months ended September 30, 2023, to $128.3 million for the same period in 2024 [177]. - Sales and marketing expenses decreased by $7.6 million, or 13.2%, from $57.2 million for the nine months ended September 30, 2023, to $49.7 million for the same period in 2024 [179]. - Customer Acquisition Cost (CAC) decreased by 22.5% from $169 for the nine months ended September 30, 2023, to $131 for the same period in 2024 [179]. - Personnel expense decreased by $29.3 million, or 30.3%, from $96.7 million for the nine months ended September 30, 2023, to $67.5 million for the same period in 2024 [183]. Tax and Deferred Assets - Income tax benefit decreased by $6.7 million, or 41.4%, from $16.2 million for the three months ended September 30, 2023, to $9.5 million for the three months ended September 30, 2024 [192]. - Income tax benefit decreased by $26.6 million, or 46%, from $58.2 million for the nine months ended September 30, 2023, to $31.7 million for the nine months ended September 30, 2024 [193]. - As of September 30, 2024, the company has $79.6 million of U.S. net deferred tax assets, with $83.4 million related to tax-effected net operating losses and other carryforwards [194]. Liquidity and Financing - Total liquidity as of September 30, 2024, was $1.44 billion, with $704.89 million utilized [226]. - The company had $1.9 billion of outstanding asset-backed notes as of September 30, 2024 [232]. - As of September 30, 2024, the company had secured financing facilities with warehouse lines totaling $611.7 million, with an undrawn capacity of $482.9 million [233]. - The company believes its existing cash balance and anticipated positive cash flows will be sufficient to meet its cash operating expense and capital expenditure requirements for at least the next 12 months [250]. Market and Economic Conditions - The company expects continued volatility in fair value primarily due to macroeconomic conditions [171]. - The company expects interest expense to increase as lower interest rate asset-backed notes amortize and are replaced with more expensive current funding [163]. Compliance and Legal Matters - As of September 30, 2024, the company was in compliance with all covenants and requirements on its outstanding debt and available credit [243]. - The company is not currently involved in any legal proceedings that would materially affect its business or financial condition [259].

Exhibit 10.1 Certain information identified with brackets ([***]) has been excluded from this exhibit because such information is both (i) not material and (ii) competitively harmful if publicly disclosed. Schedules 1.01(a) – 10.2 and Exhibits A-I to this exhibit have been omitted pursuant to Item 601(a)(5) of Regulation S-K. CREDIT AGREEMENT Dated as of October 23, 2024 | --- | --- | |------------------------------------|--------------| | | | | | | | | | | among | | | OPORTUN FINANCIAL as Parent, | CORPORA ...

SAN CARLOS, Calif., Nov. 12, 2024 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT), a mission-driven financial services company, today announced that it has closed the previously agreed upon sale of its credit card portfolio to Continental Finance. Completing the transaction reflects a key milestone towards Oportun’s initiative to enhance profitability in 2024 and beyond by simplifying the business and driving performance in its three core products: unsecured personal loans, secured personal loans, and its award- ...

Oportun Financial Corporation (NASDAQ: OPRT ) is a financial services company offering personal lending and savings services, mainly targeting people with thin or no credit files, underserved by the traditional banking system. The company is trying to escape Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in OPR ...

SAN CARLOS, Calif., Oct. 29, 2024 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT) ("Oportun", or the "Company"), a mission-driven financial services company, announced today another important step in its plans to optimize the Company's capital structure and drive improved profitability. Following an extensive review of a range of alternatives led by the Board of Directors, Oportun has entered into a Credit Agreement to refinance its existing corporate financing facility with a new $235 million Senior Secured Ter ...

SAN CARLOS, Calif., Sept. 25, 2024 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT), a mission-driven financial services company, today announced that it has signed a definitive agreement to sell its credit card portfolio to Continental Finance. This transaction reflects a key milestone towards Oportun's initiative to enhance profitability in 2024 and beyond by simplifying the business and driving performance in its three core products: unsecured personal loans, secured personal loans, and its award-winning Set & ...

SAN CARLOS, Calif., Sept. 23, 2024 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT), a mission-driven financial services company, today announced the closing of an amendment and extension to its long-term warehouse facility. Features of this facility include: $306 million total commitment Goldman Sachs as senior lender – and Jefferies, as mezzanine lender – both existing, longstanding lenders to Oportun A new two-year revolving period Collateralized by Oportun's unsecured and secured personal loan originations "T ...

SAN CARLOS, Calif., Sept. 16, 2024 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT), a mission-driven fintech, today announced that it will participate in the upcoming Sidoti September Virtual Investor Conference. Oportun's Chief Executive Officer, Raul Vazquez, and Chief Financial Officer & Chief Administrative Officer, Jonathan Coblentz, will present and participate in investor meetings at the conference. The presentation will begin at 2:30 pm ET on September 18th and can be accessed live at this link. A link t ...

SAN CARLOS, Calif., Aug. 29, 2024 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT), a mission-driven fintech, today announced the issuance of $223.25 million of fixed rate asset-backed notes secured by a pool of unsecured and secured installment loans. The offering included four classes of fixed rate notes: Class A, Class B, Class C, and Class D. KBRA rated all classes of notes, assigning ratings of AA-, A-, BBB-, and BB-, respectively. Jefferies served as the sole structuring agent and sole bookrunner while Deut ...