I believe that Oportun Financial (NASDAQ: OPRT ) is one of the most attractive risk rewards in the market. Due to a unique series of events, the company now finds itself below tangible book, on the cusp of profitable, and likely to grow revenues andAnalyst’s Disclosure: I/we have a beneficial long position in the shares of OPRT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ...

Core Insights - Singular Research highlights Oportun Financial Corp as a leading financial services provider focused on credit solutions for underserved markets, showcasing significant financial improvements and operational efficiencies following an exceptional Q3 2024 performance [2][3]. Financial Performance - Oportun achieved $31 million in adjusted EBITDA for Q3 2024, representing a 117% increase year-over-year, driven by lower net charge-offs and cost reductions [3]. - Adjusted net income reached $0.9 million, or $0.02 per share, indicating a return to profitability [3]. - The annualized net charge-off rate decreased to 11.9%, with front book loans performing within the target range of 9%-11% [3]. Operational Metrics - Loan originations for the quarter totaled $480 million, remaining flat year-over-year but marking a milestone after previous declines [4]. - Adjusted operating expenses decreased by 17% year-over-year, reflecting strong cost management [4]. Future Outlook - For Q4 2024, loan originations are projected to grow by 10% year-over-year, with revenues estimated between $246 million and $250 million [5]. - Adjusted EBITDA guidance for Q4 is set at $28 million to $30 million [5]. - Preliminary guidance for FY:25 anticipates continued growth in loan originations, positioning Oportun for significant expansion [5]. Investment Thesis - Oportun Financial Corp utilizes AI-driven technology and proprietary credit assessment algorithms to fill a significant gap in financial services for low-to-moderate-income individuals, enabling cost-effective and scalable credit solutions [6]. - The company's robust financial turnaround, strong credit quality, and long-term target return on equity (ROE) are identified as key drivers of value [7].

SAN CARLOS, Calif., Nov. 20, 2024 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT) today shared results from its 2024 Holiday Savings Report showing that annual holiday have been higher than standard and people are now using set-aside funds to pay for holiday expenses. The report analyzes member year-over-year savings amounts and behaviors for those savings goals tagged as “holiday” in its Set & SaveTM product. “The 2024 Holiday Savings Report shows that setting goals and saving towards them works,” said Oportun ...

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].

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 ...

Core Insights - Oportun has signed a definitive agreement to sell its credit card portfolio to Continental Finance, marking a significant step towards enhancing profitability and simplifying its business model [1][3] - The closing date for the transaction is now expected around November 10, 2024, with an anticipated Adjusted EBITDA impact of approximately $2 million in 2024, down from the previously indicated $4 million [2] - The company expects the transaction to yield an Adjusted EBITDA benefit of about $11 million in 2025 [2] Company Overview - Oportun is a mission-driven financial services company that has provided over $18.7 billion in responsible credit since its inception, saving members more than $2.4 billion in interest and fees [4] - The company focuses on three core products: unsecured personal loans, secured personal loans, and the Set & Save™ savings product [1] Continental Finance Overview - Continental Finance has managed over 5.3 million credit cards and emphasizes excellent customer service and access to innovative credit products for consumers with poor or limited credit [5]

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 ...