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].

Core Insights - Opportun Financial (NASDAQ: OPRT) is a microcap company in the consumer finance sector, which went public in 2019 and has seen its stock decline by 30% over the past five years [1] Company Analysis - The analysis approach focuses on value investing, adopting an owner's mindset, and maintaining a long-term investment horizon [1] - The company does not engage in writing sell articles, as these are viewed as short theses, nor does it recommend shorting stocks [1] Market Context - The performance of Opportun Financial reflects broader trends in the consumer finance industry, particularly for microcap stocks, which can be more volatile and sensitive to market conditions [1]

Core Insights - Oportun Financial Corporation reported significant improvements in its Q1 2025 financial results, demonstrating growth in originations and profitability metrics [3][7]. Financial Highlights - Total originations reached $469.3 million, reflecting a 38.7% year-over-year increase, marking the second consecutive quarter of growth [3]. - Total revenue for Q1 was $235.9 million, with adjusted EPS of $0.40 compared to $0.09 in Q1 2024 [7]. - Adjusted EBITDA totaled $34 million, a substantial increase from $1.9 million in Q1 2024 [7]. Operational Analysis - The annualized net charge-off rate improved to 12.2%, at the low end of the company's guidance range [3]. - Adjusted operating expenses were $89 million, down 13% year-over-year, with operating expenses as a percentage of average daily principal balance improving by 160 basis points to 13.9% [4]. Credit Quality - The front book's annualized net charge-off rate was 11.5%, slightly above the target range of 9% to 11%, while the back book declined to only 4% of the loan portfolio, expected to decrease to 1% by year-end [5]. 2025 Outlook - Management reaffirmed its guidance for FY 2025, moderating loan originations growth expectations to 10% [6]. - Revenue is projected between $945 million and $970 million, with adjusted EBITDA expected between $135 million and $145 million, representing a 34% year-over-year increase at the midpoint [8]. Unit Economics - The company's business model targets a long-term Return on Equity in the range of 20%-28%, which appears achievable as the back book continues to shrink and operating expenses decline further [9]. Future Projections - Adjusted EPS is forecasted between $1.10 and $1.30, indicating a 73% year-over-year increase at the midpoint [14]. - The net charge-off rate is expected to be at 11.5% (±50 basis points), with the company aiming for GAAP profitability by the end of FY 2025 [14].

Oportun Financial Corporation (OPRT) closed the last trading session at $6.90, gaining 57.8% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $9.04 indicates a 31% upside potential.The mean estimate comprises seven short-term price targets with a standard deviation of $1.70. While the lowest estimate of $6.50 indicates a 5.8% decline from the current price level, the most optimistic ...

Core Insights - Oportun has been recognized as a Top Workplace for 2025 by San Francisco Bay Area Top Workplaces, marking its seventh consecutive year of recognition by the San Francisco Chronicle and ten years overall by various publications [1][2] Company Overview - Oportun is a mission-driven financial services company that aims to make financial health accessible to everyone, providing intelligent borrowing, savings, and budgeting capabilities [4] - Since its inception, Oportun has issued over $20.3 billion in responsible and affordable credit, saving its members more than $2.4 billion in interest and fees, and helping them set aside an average of over $1,800 annually [4] Employee Engagement - The recognition as a top workplace is based on employee feedback collected through a third-party survey by Energage LLC, which measures various aspects of the employee experience, including respect, support, growth opportunities, and empowerment [2] - CEO Raul Vazquez emphasized the company's commitment to fostering a supportive environment that enables team members to excel in their mission [2]

Oportun Financial Corporation (OPRT) reported $235.9 million in revenue for the quarter ended March 2025, representing a year-over-year decline of 5.8%. EPS of $0.40 for the same period compares to $0.09 a year ago.The reported revenue represents a surprise of +2.98% over the Zacks Consensus Estimate of $229.08 million. With the consensus EPS estimate being $0.09, the EPS surprise was +344.44%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they co ...

Oportun Financial Corporation (OPRT) came out with quarterly earnings of $0.40 per share, beating the Zacks Consensus Estimate of $0.09 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 344.44%. A quarter ago, it was expected that this company would post earnings of $0.12 per share when it actually produced earnings of $0.49, delivering a surprise of 308.33%.Over the last four quarte ...

PART I [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Oportun reported Q1 2025 net income of $9.8 million, a turnaround from a $26.4 million loss in Q1 2024, with stable assets and increased operating cash flow [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets remained stable at $3.226 billion as of March 31, 2025, with liabilities decreasing to $2.86 billion and stockholders' equity rising to $366.1 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $78,542 | $59,968 | | Loans receivable at fair value | $2,770,486 | $2,778,523 | | **Total assets** | **$3,226,305** | **$3,227,103** | | **Liabilities** | | | | Secured financing | $445,495 | $535,469 | | Asset-backed notes at fair value | $863,859 | $1,080,690 | | Asset-backed borrowings at amortized cost | $1,281,274 | $984,333 | | **Total liabilities** | **$2,860,206** | **$2,873,294** | | **Total stockholders' equity** | **$366,099** | **$353,809** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 net income reached $9.8 million, a turnaround from a $26.4 million loss in Q1 2024, due to reduced fair value adjustments and lower operating expenses Statement of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total revenue | $235,904 | $250,482 | | Interest expense | $57,403 | $54,465 | | Net decrease in fair value | $(72,672) | $(116,850) | | Net revenue | $105,829 | $79,167 | | Total operating expenses | $92,670 | $109,642 | | **Net income (loss)** | **$9,767** | **$(26,439)** | | **Diluted EPS** | **$0.21** | **$(0.68)** | [Condensed Consolidated Statements of Cash Flow](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flow) Net cash from operating activities increased to $101.0 million in Q1 2025, with a shift to cash used in investing activities and a significant decrease in financing cash usage Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $100,977 | $85,882 | | Net cash provided by (used in) investing activities | $(55,520) | $36,461 | | Net cash used in financing activities | $(29,109) | $(131,806) | | **Net increase (decrease) in cash** | **$16,348** | **$(9,463)** | | **Cash, cash equivalents and restricted cash, end of period** | **$230,973** | **$196,553** | [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, the significant role of VIEs in funding, fair value measurements for financial instruments, and potential tax liabilities - The company is a mission-driven financial services company and has been certified as a Community Development Financial Institution (CDFI) since 2009[21](index=21&type=chunk) - The company transfers loans to wholly owned special-purpose subsidiaries (VIEs) to collateralize asset-backed financing. As the primary beneficiary, Oportun consolidates these VIEs. As of March 31, 2025, consolidated VIEs held **$2.32 billion** in loans receivable and had **$2.16 billion** in related liabilities[30](index=30&type=chunk)[32](index=32&type=chunk) - In January 2025, the company issued **$425.1 million** of series 2025-A asset-backed notes with a weighted average yield of **6.95%**[51](index=51&type=chunk) - The company has a potential liability ranging from zero to **$3.8 million** related to a value-added tax dispute in Mexico for tax years 2017-2019, but has not recorded an accrual as the loss is not considered probable[93](index=93&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q1 2025 profitability was driven by improved credit performance, 38.8% growth in originations, increased net revenue, and a 15.5% reduction in operating expenses [Overview](index=25&type=section&id=Overview) Oportun, a certified CDFI, offers personal loans and savings products, leveraging a proprietary credit model and diversified capital markets funding - Oportun offers unsecured personal loans (**$300 to $10,000**) and secured personal loans (**$2,525 to $18,500**), with all loans capped at a **36% APR**[117](index=117&type=chunk)[118](index=118&type=chunk) - The company leverages its technology through a 'Lending as a Service' model, with partners like DolFinTech and a new collaboration with Western Union[121](index=121&type=chunk) - The company has a diversified capital markets funding program, having participated in **24 sponsored or co-sponsored bond offerings** since 2015[122](index=122&type=chunk) [Key Financial and Operating Metrics](index=27&type=section&id=Key%20Financial%20and%20Operating%20Metrics) Q1 2025 Aggregate Originations grew 38.8% to $469.4 million, with the 30+ Day Delinquency Rate improving to 4.7% and Net Charge-Off Rate stable at 12.2% Key Financial and Operating Metrics | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Aggregate Originations | $469,396 thousand | $338,216 thousand | | Portfolio Yield | 33.0% | 32.5% | | 30+ Day Delinquency Rate | 4.7% | 5.2% | | Annualized Net Charge-Off Rate | 12.2% | 12.0% | - The increase in Aggregate Originations was driven by additional marketing efforts, leading to a rise in the number of loans originated to **142,843** from **115,912** in the prior year period[129](index=129&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Q1 2025 total revenue decreased to $235.9 million, but net revenue increased to $105.8 million, and operating expenses fell 15.5%, resulting in $13.2 million income before taxes - Total revenue decreased by **$14.6 million (5.8%)** YoY, primarily due to a **5.1%** decrease in Average Daily Principal Balance, partially offset by a **49 basis point** increase in portfolio yield[143](index=143&type=chunk) - Interest expense increased by **$2.9 million (5.4%)** YoY, driven by a **65 basis point** increase in the Cost of Debt, reflecting higher interest rates on recent debt issuances[146](index=146&type=chunk) - The 'Net decrease in fair value' improved to **$(72.7) million** from **$(116.9) million** YoY. The Q1 2025 figure includes a **$4.9 million** positive mark-to-market adjustment on financial instruments, compared to a **$3.0 million** positive adjustment in Q1 2024, which also included a **$(33.5) million** mark on other loans sold[149](index=149&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk) - Total operating expenses decreased by **$17.0 million (15.5%)** YoY, with significant reductions in Technology and facilities (**-$10.7 million**), Personnel (**-$3.6 million**), and General, administrative and other (**-$4.4 million**)[142](index=142&type=chunk) [Non-GAAP Financial Measures](index=33&type=section&id=Non-GAAP%20Financial%20Measures) Q1 2025 non-GAAP measures show strong improvement, with Adjusted EBITDA at $33.5 million, Adjusted Net Income at $18.6 million, and Adjusted EPS at $0.40 Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) | Line Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income (loss) | $9,767 | $(26,439) | | Adjustments | $23,766 | $28,378 | | **Adjusted EBITDA** | **$33,533** | **$1,939** | Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) (in thousands) | Line Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income (loss) | $9,767 | $(26,439) | | Adjustments | $15,770 | $31,400 | | Adjusted income (loss) before taxes | $25,537 | $4,961 | | Normalized income tax expense | $6,895 | $1,339 | | **Adjusted Net Income** | **$18,642** | **$3,622** | Adjusted EPS | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Adjusted Net Income | $18,642 thousand | $3,622 thousand | | Diluted adjusted weighted-average shares | 47,037,799 | 39,336,639 | | **Adjusted EPS** | **$0.40** | **$0.09** | [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) Oportun maintains $1.05 billion in total liquidity capacity, with $580.3 million available as of March 31, 2025, ensuring sufficient funds for the next 12 months Total Liquidity Reserves as of March 31, 2025 (in thousands) | Source | Total capacity | Amount borrowed/utilized | Remaining available capacity | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $78,542 | N/A | $78,542 | | Restricted cash | $152,431 | N/A | $152,431 | | Secured financing | $766,130 | $448,937 | $317,193 | | Whole loan forward flow agreements | $50,000 | $17,915 | $32,085 | | **Total liquidity** | **$1,047,103** | **$466,852** | **$580,251** | - The company targets liquidity levels to support at least twelve months of expected net cash outflows without accessing its Corporate Financing facility or equity markets[195](index=195&type=chunk) - In October 2024, the company entered into a new **$235 million** senior secured term loan (Credit Agreement), maturing in November 2028, which was used to repay its previous credit agreement[216](index=216&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is classified as a "Smaller Reporting Company" and is therefore not required to provide the information for this item - As a "Smaller Reporting Company" as defined by Item 10 of Regulations S-K, the Company is not required to provide this information[229](index=229&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of the end of the reporting period, the Chief Executive Officer concluded that the company's disclosure controls and procedures were effective at the reasonable assurance level[230](index=230&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[232](index=232&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any legal proceedings expected to have a material adverse effect on its business or financial condition - The Company is not presently a party to any legal proceedings that, if determined adversely, would individually or taken together have a material adverse effect on its business, financial condition, cash flows or results of operations[94](index=94&type=chunk)[234](index=234&type=chunk) [Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including competition, reliance on its bank partner, macroeconomic sensitivity, fair value accounting volatility, and regulatory challenges - The company relies on its bank partner, Pathward, N.A., to originate a substantial portion of its loans (**97% of personal loans in Q1 2025**). The partnership agreement expires in August 2025, and a termination or failure to renew could materially and adversely affect the business[246](index=246&type=chunk)[247](index=247&type=chunk) - The company uses estimates in determining the fair value of its loans and asset-backed notes. Incorrect estimates could lead to write-downs of assets or write-ups of liabilities, adversely affecting results. As of March 31, 2025, Loans Receivable at Fair Value represented **86% of total assets**[251](index=251&type=chunk)[252](index=252&type=chunk) - The business is exposed to geographic concentration risk, with **39.0%** of its Owned Principal Balance from California, **26.4%** from Texas, and **10.4%** from Florida as of March 31, 2025[308](index=308&type=chunk)[309](index=309&type=chunk) - The financial services industry is highly regulated. Changes in regulations, particularly from the CFPB, or legal challenges to the 'true lender' status in bank partnerships could adversely affect the business[365](index=365&type=chunk)[370](index=370&type=chunk)[385](index=385&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=68&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of its equity securities during the reporting period - We had no unregistered sales of our securities in the reporting period not previously reported[411](index=411&type=chunk) [Defaults Upon Senior Securities](index=68&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reporting period - None[413](index=413&type=chunk) [Mine Safety Disclosures](index=68&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[414](index=414&type=chunk) [Other Information](index=68&type=section&id=Item%205.%20Other%20Information) During the first quarter of 2025, none of the company's directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - During the three months ended March 31, 2025, none of our directors or officers adopted, modified or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement"[415](index=415&type=chunk)