Oportun Reports First Quarter 2025 Financial Results GAAP EPS of $0.21 increased $0.89 year-over-year Adjusted EPS of $0.40 increased $0.31 year-over-year Operating expenses of $93 million reduced 15% year-over-year Reiterating full year 2025 credit performance and profit expectations SAN CARLOS, CA – May 8, 2025 – Oportun Financial Corporation (Nasdaq: OPRT) ("Oportun", or the "Company") today reported financial results for the first quarter ended March 31, 2025. "We started 2025 with a strong first quarte ...

Core Insights - Oportun Financial Corporation reported a GAAP net income of $9.8 million for Q1 2025, a significant increase of $36 million year-over-year, marking the second consecutive quarter of GAAP profitability [1][2] - The company achieved an adjusted EPS of $0.40, up from $0.09 in the prior year, reflecting strong operational performance [1][13] - Operating expenses were reduced by 15% year-over-year to $93 million, demonstrating effective cost management [1][11] Financial Performance - Total revenue for Q1 2025 was $236 million, down 6% from $250 million in Q1 2024, primarily due to the absence of $11 million from the sold credit card receivable portfolio [3][10] - Adjusted net income rose to $19 million from $3.6 million in the prior year, driven by reduced operating expenses and improved credit performance [12][13] - The annualized net charge-off rate was 12.2%, slightly up from 12.0% year-over-year, while dollar net charge-offs decreased by 5% [15][5] Operational Metrics - Aggregate originations reached $469 million, a 39% increase compared to $338 million in the prior-year quarter [5][8] - The portfolio yield improved to 33.0%, up 49 basis points from 32.5% in the prior year, attributed to increased loan pricing [5][9] - The 30+ day delinquency rate decreased to 4.7%, down from 5.2% in the prior year, marking the fifth consecutive quarterly decline [6][15] Guidance and Outlook - The company is moderating its full-year loan originations growth expectation to approximately 10%, down from the previous range of 10% to 15% [2] - Oportun reiterated its full-year 2025 adjusted EPS guidance of $1.10 to $1.30 per share, indicating a growth of 53% to 81% [2][21] - For Q2 2025, total revenue is expected to be between $237 million and $242 million, with an annualized net charge-off rate projected at 11.90% [21]

Core Viewpoint - Oportun Financial (OPRT) is set to release its first-quarter 2025 results on May 8, with expectations of mixed performance due to various factors impacting revenue and expenses [1][4]. Financial Performance - In the last reported quarter, OPRT's earnings exceeded the Zacks Consensus Estimate, driven by lower operating expenses and increased loans receivable, although lower interest and non-interest income were challenges [1][4]. - The Zacks Consensus Estimate for earnings is 9 cents per share, unchanged over the past week, matching the prior-year quarter [3]. - The consensus estimate for sales is $229.08 million, reflecting an 8.6% decrease year-over-year [3]. Revenue Drivers - The Federal Reserve's decision to maintain interest rates at 4.25-4.5% is expected to positively influence OPRT's interest income, despite a projected 6.4% decline to $215.9 million [5][6]. - Oportun's servicing fees are estimated at $3.08 million, indicating a 9.7% year-over-year decline, while gain on loan sales is expected to grow by 12.7% to $1.69 million [7][8]. - Management anticipates total revenues between $225-$230 million, down from $250.5 million in the previous year [9]. Expense Management - Oportun has seen a consistent decline in expenses due to workforce diversification and reduced vendor spending, but rising headcount and inflationary pressures may lead to increased overall expenses in Q1 [10][22]. Stock Performance - OPRT's stock has increased by 41.5% in Q1 2025, outperforming the industry, which declined by 12.7% [13]. - The stock is currently trading at a price-to-book ratio of 0.54, above its five-year median of 0.47, indicating a significant discount compared to the industry average of 3.30 [15]. Growth Potential - Oportun is positioned for growth through solid loan growth, diverse offerings, and technology-driven initiatives aimed at improving underwriting and customer service [19][21]. - The company is focusing on reducing customer acquisition costs and enhancing operational efficiency through technology [20][21]. Financial Stability - Oportun maintains a strong balance sheet and diversified funding sources, contributing to its liquidity position [22].

Core Viewpoint - Findell Capital Management is advocating for a significant change in the board of Oportun Financial Corporation, urging stockholders to elect Warren Wilcox as an independent director to enhance governance and refocus on the core lending business [1][4][11]. Group 1: Board Composition and Governance - Findell Capital Management holds approximately 9.5% of Oportun's outstanding common stock and has been pushing for the board to act as a fiduciary rather than enabling the current CEO, Raul Vazquez [2][3]. - The legacy board has been criticized for failing to effectively oversee CEO Vazquez, who has been accused of mismanaging the company and inflating costs [6][9]. - The addition of independent directors in 2024 has led to some improvements, but the board is still seen as lacking independence and expertise in lending [3][7][9]. Group 2: Performance Metrics - Oportun has experienced a 40% dilution since Findell's engagement began, attributed to strategic missteps by the management [7]. - The company's total return has improved since the addition of new directors, but it remains underperforming compared to industry benchmarks [9]. - Key performance metrics show that Oportun's operational expenses per loan have increased significantly, contrasting with competitors like OneMain Holdings, which maintained flat operating expenses [12]. Group 3: Proposed Changes - Findell is advocating for a reduction in the board size from 10 to 8 members and the appointment of directors with lending experience to enhance oversight [12][13]. - The company is urged to reduce its operating expense ratio from 15% to 10% and remove the self-imposed interest rate cap of 36% to better serve its customers [13]. - The campaign emphasizes the need for a fully independent board with no ties to management to ensure accountability and effective governance [12][13]. Group 4: Nominee Profile - Warren Wilcox is presented as a highly qualified candidate for the board, with extensive experience in consumer financial services and a strong track record in fintech and credit card businesses [15][16]. - His background includes leadership roles in various financial institutions and companies, making him well-suited to contribute to Oportun's strategic direction [15][16].

Core Viewpoint - Oportun Financial Corporation (OPRT) and Enova International Inc. (ENVA) are fintech companies focused on providing credit solutions to underserved consumers, leveraging advanced analytics and digital platforms to serve non-prime borrowers in the alternative lending sector [1][5]. Group 1: Company Performance - Oportun's shares have increased by 32.2% this year, while Enova's shares have risen by 2.1% [2]. - Oportun's total revenues are projected to be between $225 million and $230 million in Q1 2025, down from $250.5 million in the same quarter last year, with 2025 revenues expected to be in the range of $945 million to $970 million compared to $1 billion in 2024 [8]. - Enova's revenues have experienced a compound annual growth rate (CAGR) of 17.7% over the last five years [16]. Group 2: Revenue Growth and Strategies - Oportun has achieved a five-year CAGR of 10.8% in total revenues, with loans receivable at fair value and interest income growing at CAGRs of 8.1% and 10.8%, respectively [7][11]. - Enova's loans and finance receivables recorded a five-year CAGR of 48.6%, supported by its diverse lending programs and acquisition of OnDeck [21]. - Oportun's non-interest income has shown a CAGR of 6.4% over the past five years, indicating a growing revenue stream beyond interest [12]. Group 3: Financial Position - As of December 31, 2024, Oportun had cash and cash equivalents totaling $214.6 million and a debt of $69.1 million, indicating a strong liquidity position [14]. - Enova's cash and cash equivalents were $322.7 million, with a long-term debt of $3.6 billion and $944 million in available revolving credit facilities [22][23]. Group 4: Future Estimates - The Zacks Consensus Estimate for Oportun's 2025 revenues implies a year-over-year decline of 3.6%, while 2026 revenues are expected to rise by 8.4% [24]. - Enova's consensus estimates suggest a year-over-year revenue increase of 16.1% for 2025 and 15% for 2026, with earnings growth of 26% and 19% for the same years, respectively [28]. Group 5: Valuation Analysis - Oportun is currently trading at a price-to-tangible book (P/TB) ratio of 0.84X, which is higher than its three-year median, while Enova's P/TB ratio is 2.99X, lower than its three-year median [31]. - Oportun's stock is considered inexpensive compared to Enova, which may present a better investment opportunity [39]. Group 6: Investment Recommendation - Oportun's focus on community-based lending and expansion into new markets, despite near-term profitability challenges, positions it as a potentially better investment choice compared to Enova, which has a broader portfolio but may face risks from exposure to subprime borrowers [38][39]. - Oportun holds a Zacks Rank 1 (Strong Buy), while Enova has a Zacks Rank 2 (Buy), indicating a stronger recommendation for Oportun [40].

Core Viewpoint - Oportun is set to release its financial results for the first quarter of 2025 on May 8, 2025, and will host a conference call to discuss these results [1][2]. Company Information - Oportun is a mission-driven financial services company that has provided over $19.7 billion in responsible and affordable credit since its inception, saving its members more than $2.4 billion in interest and fees, with an average annual saving of over $1,800 per member [4]. - The record date for stockholders entitled to vote at Oportun's 2025 annual meeting is May 27, 2025 [3]. Proxy and Meeting Information - Oportun plans to file a proxy statement with the SEC for the 2025 Annual Meeting of Stockholders, which will include details about the solicitation of proxies [5]. - Members of Oportun's board of directors are participating in the proxy solicitation, and additional information regarding their interests will be included in the 2025 Proxy Statement [6]. - Stockholders will receive the definitive 2025 Proxy Statement and a GREEN proxy card after it is filed with the SEC [7].

Core Points - Oportun will release its financial results for the first quarter of 2025 on May 8, 2025, after market close [1] - A conference call and earnings webcast will be held on the same day at 5:00 pm ET / 2:00 pm PT to discuss the results [2] - The record date for stockholders entitled to vote at the 2025 annual meeting is set for May 27, 2025 [3] Company Overview - Oportun is a mission-driven financial services company that has provided over $19.7 billion in responsible and affordable credit since its inception [4] - The company has saved its members more than $2.4 billion in interest and fees, averaging over $1,800 in annual savings per member [4] Proxy Statement Information - Oportun plans to file a proxy statement with the SEC for the 2025 Annual Meeting of Stockholders [5] - The board of directors and certain executive officers are participants in the solicitation of proxies [6] - Stockholders will receive the definitive 2025 Proxy Statement and a GREEN proxy card after it is filed with the SEC [7]

Core Viewpoint - Oportun Financial Corporation (OPRT) has experienced significant stock price decline amid broader market volatility, primarily due to economic concerns and trade war fears, but the company shows potential for growth through solid loan growth and technological advancements [1][3][27]. Group 1: Market Performance - OPRT shares have decreased by 25.8% over the past month, underperforming both the Zacks Finance sector and the S&P 500 index [1]. - The stock has also lagged behind close peers such as Enova International, Inc. (ENVA) and Regional Management Corp. (RM) [1]. Group 2: Revenue and Growth Factors - Oportun's total revenues and loans receivable at fair value have shown a 5-year compound annual growth rate (CAGR) of 10.8% and 8.1%, respectively [4]. - The company has diversified its loan offerings, including personal loans and "lending as a service," which has helped in expanding its client base and increasing interest income [8]. - Non-interest income has also seen a CAGR of 6.4% over the past five years, contributing to overall revenue growth [9]. Group 3: Financial Estimates - Management expects total revenues for Q1 2025 to be between $225 million and $230 million, down from $250.5 million in the same quarter last year [13]. - The Zacks Consensus Estimate for total revenues in 2025 is projected to be between $945 million and $970 million, compared to $1 billion in 2024 [13]. Group 4: Technological Advancements - Oportun is leveraging technology, including AI and machine learning, to enhance underwriting standards and provide personalized customer service, which helps in assessing credit profiles more effectively [14][16]. - The use of advanced technology is expected to reduce default risks and improve operational efficiency [15][16]. Group 5: Financial Health - As of December 31, 2024, Oportun's cash and cash equivalents totaled $214.6 million, with total debt at $69.1 million, indicating a strong liquidity position [17]. - The company has multiple funding sources for loan growth, including cash flows from operations and securitizations [18]. Group 6: Analyst Sentiment and Valuation - The Zacks Consensus Estimate for Oportun's earnings per share for 2025 and 2026 has been revised upward by 11.2% and 6.4%, respectively, indicating positive analyst sentiment [20]. - Oportun's price-to-book ratio (P/B) stands at 0.45X, significantly lower than the industry average of 2.25X, suggesting the stock is undervalued [24][26]. Group 7: Challenges and Long-term Outlook - Operating expenses have recorded a five-year CAGR of 2.5%, and the company plans to reduce expenses by $30 million annually, although overall expenses are expected to remain elevated in the near term [28]. - Oportun's return on equity (ROE) is 5.50%, lower than the industry average of 9.68%, indicating inefficiencies in utilizing shareholders' funds [31]. Group 8: Conclusion - Despite challenges, Oportun is well-positioned for growth due to solid loan growth, technological advancements, and positive analyst sentiment, making it a potentially lucrative investment for long-term investors [27][34].

SAN CARLOS, Calif., March 27, 2025 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT), a mission-driven financial services company, today confirmed receipt of a notice from Findell Capital Management LLC (“Findell”) nominating two directors to stand for election to the Oportun Board of Directors (the “Board”) at the Company’s 2025 Annual Meeting of Shareholders. The Board issued the following statement in response: Over the past three years, the Oportun Board of Directors has overseen decisive and deliberate action ...

Core Viewpoint - Findell Capital Management expresses confidence in the expertise of nominated directors Sandra Bell and Warren Wilcox to improve governance and operations at Oportun Financial Corporation, highlighting the legacy board's record of value destruction and attributing recent stock price recovery to Findell's involvement [1][3][5]. Group 1: Governance Issues - The current board of Oportun is criticized for being controlled by six legacy directors lacking lending experience, raising concerns about their ability to oversee the company effectively [3][6]. - Findell believes the addition of Bell and Wilcox is essential to address governance issues that hinder long-term value realization [3][11]. Group 2: Stock Performance - Oportun's stock price peaked at $27.95 in November 2021 but fell to around $3 in early 2023 due to management errors, with a recovery to approximately $6 following Findell's engagement and the addition of new directors [5][6]. - The legacy board's claims of credit for the stock price improvement are viewed as unfounded, as the recovery is attributed to Findell's actions and the new directors' involvement [6][11]. Group 3: Financial Performance - Oportun has a loan book of approximately $3 billion generating $1 billion in interest revenue, with the potential to produce over $250 million in pre-tax income if managed effectively [7]. - The company reported a decline in origination volume from $3 billion in 2022 to $1.8 billion in 2024, indicating that cost reductions have not kept pace with declining income-producing assets [9][10]. Group 4: Director Qualifications - Sandra Bell has extensive experience in financial services, having served as CFO for multiple companies and holding significant roles in risk and audit committees [12]. - Warren Wilcox has a strong background in fintech and lending, having served on various boards and played a key role in creating new financial technology startups [13][14]. Group 5: Call to Action - Findell encourages shareholders to support the nomination of Bell and Wilcox to drive necessary changes at Oportun, emphasizing the importance of shareholder interests over those of the current board [15][16].