OppFi (OPFI) - 2024 Q4 - Annual Results

Financial Performance - Net income for Q4 2024 increased by $12.0 million year over year to$ 14.0 million, with an adjusted net income of $20.3 million, reflecting a growth of 140%[9] - For the full year 2024, net income increased by$ 44.4 million year over year to $83.8 million, with an adjusted net income of$ 82.7 million, representing a growth of 99%[12] - Q4 2024 net income reached $13.973 million, a significant increase from$ 1.942 million in Q4 2023, representing a variance of $12.031 million[58] - Full year 2024 net income totaled$ 83.837 million, compared to $39.479 million in 2023, marking an increase of$ 44.358 million[59] - Adjusted earnings per share for Q4 2024 was $0.23, compared to$ 0.10 in Q4 2023[60] - Full year 2024 adjusted earnings per share increased to $0.95 from$ 0.49 in 2023[61] Revenue Growth - Total revenue for Q4 2024 rose by 2.1% year over year to $135.7 million, driven by an annualized average yield increase of 320 basis points[26] - Total revenue for the full year 2024 increased by 3.3% year over year to$ 526.0 million, attributed to a 410 basis point increase in average yield[28] - Total revenue for Q4 2024 was $135.723 million, slightly higher than$ 132.924 million in Q4 2023[58] - Total revenue for the full year 2024 was $525.963 million, a 3.3% increase from$ 508.949 million in 2023[51] Cash Flow and Financial Management - Full year free cash flow generation for FY 2023 was $51.9 million[44] - Free cash flow for the year ended December 31, 2024, was$ 96.330 million, up from $51.854 million in 2023, an increase of$ 44.476 million[63] - The company plans to allocate $30 million for repayment of corporate term loan debt in Q1 2025[43] Credit Quality and Risk Management - The net charge-off rate as a percentage of total revenue decreased by 450 basis points year over year to 41.9%, indicating improved credit initiatives[26] - The net charge-off rate as a percentage of average receivables decreased to 54% from 59% year over year, driven by lower gross charge-offs and higher recoveries[36] - The net charge-off rate as a percentage of total revenue decreased to 39% from 44% year over year, indicating a healthier portfolio[41] Operational Efficiency - The automatic approval rate improved to 79% from 73% year over year, reflecting advancements in algorithmic automation projects[36] - Automatic approval rate improved to 76% from 72% year over year, reflecting successful algorithmic automation projects[41] Originations and Portfolio Management - Total net originations for 2024 reached$ 802 million, with a 11% year-over-year increase due to bank partners' expansion and enhanced lead evaluation capabilities[39] - Total net originations increased by 7% year over year, driven by bank partners' expansion and enhanced lead evaluation capabilities[41] - Ending receivables increased by 2% year over year to $425 million, supported by growth in retained net originations and healthier portfolio management[36] - Ending receivables rose by 2% year over year, supported by growth in retained net originations and improved credit modeling[41] Yield and Pricing - Average yield increased to 131% from 127% year over year, attributed to a decrease in delinquent loans and pricing initiatives[41] Fair Value Changes - The company reported a change in fair value of warrant liabilities of$ 10.994 million in Q4 2024, compared to $5.814 million in Q4 2023[58] Earnings Before Tax - Adjusted EBT for the full year 2024 was$ 108.002 million, significantly higher than $54.283 million in 2023[61] Shareholder Information - Weighted average diluted shares outstanding increased to 87,504,493 in Q4 2024 from 85,721,167 in Q4 2023[60]