OppFi (OPFI) - 2025 Q2 - Quarterly Results

Cover Page This section identifies the document as OppFi's Q2 2025 Earnings Presentation - OppFi Q2 2025 Earnings Presentation, dated August 6, 2025[1][2] Legal Disclosures This section outlines disclaimers, forward-looking statements, non-GAAP measures, and website usage Disclaimer This section clarifies the presentation is for informational purposes only and not investment advice - Presentation for informational purposes only; no representation or warranty on accuracy; not investment advice[3][4] Forward-Looking Statements This section warns that forward-looking statements are subject to risks and uncertainties that may cause actual results to differ - Presentation contains forward-looking statements subject to risks and uncertainties, including economic downturns, inflation, interest rates, and regulatory changes[5] Non-GAAP Financial Measures This section defines non-GAAP measures and states they are supplemental to GAAP, with reconciliations in the appendix - Non-GAAP measures (Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, Free Cash Flow) are provided as additional tools for investors, with definitions and reconciliation to GAAP in the appendix[6] No Offer or Solicitation This section clarifies that the presentation is not an offer to sell or a solicitation to buy securities - Presentation does not constitute an offer to sell or solicit securities[7] Website This section states website and mobile content references are for information only and not incorporated into SEC filings - Website and mobile content references are for informational purposes only and not incorporated into SEC filings[8] Q2 2025 Earnings Highlights OppFi achieved record total revenue and Adjusted Net Income in Q2 2025, driven by 12.8% YoY revenue growth and improved operating efficiency Q2 2025 Financial Highlights | Metric | Q2 2025 | Change YoY | | :--- | :--- | :--- | | GAAP Net Income ($M) | $11.5 | -$16.2 (decrease) | | Adjusted Net Income ($M) | $39.4 | +$14.6 (increase) | | Total Revenue (%) | $142.4 | +12.8% | | Net Income Margin (%) | 8.1% | | | Adjusted Net Income Margin (%) | 27.7% | +810 bps (expansion) | | Total Expenses as % of Total Revenue (%) | 38.9% | -610 bps (decrease) | | Net Charge-Off Rate as % of Total Revenue (%) | 31.9% | -60 bps (decrease) | | Recoveries of Previously Charged Off Receivables (%) | | +26.7% (increase) | - Record quarterly total revenue and Adjusted Net Income achieved[9] Company Overview & Strengths OppFi is a mission-driven digital finance platform with significant scale, consistent profitability, and strong customer satisfaction At-A-Glance OppFi is a tech-enabled digital finance platform serving credit-insecure Americans through bank partnerships - OppFi is a tech-enabled digital finance platform partnering with banks to offer financial products to US consumers facing credit insecurity[11][12] Mission-driven Platform The company delivers best-in-class products and customer service, reflected in a 79 NPS Score® - Achieved a 79 NPS Score® for best-in-class products and customer service[12] Significant Economic Scale Since inception, OppFi has facilitated over $7.8 billion in gross loan issuance across 4.3 million loans - Facilitated over $7.8 billion in gross loan issuance and 4.3 million loans since inception[12] Profitable Across Business Cycles OppFi has demonstrated consistent profitability with 10 consecutive years of positive net income - Achieved 10 consecutive years of positive net income[12] Large Addressable Market The company targets over 60 million US consumers facing credit insecurity and limited traditional credit access - Targets 60+ million US consumers facing credit insecurity[12] Strong Fundamentals and Balance Sheet Strong operating efficiency drives free cash flow and a robust balance sheet, supporting future growth - Strong operating efficiency drives free cash flow and a robust balance sheet, supporting growth[12] Outstanding Customer Satisfaction OppFi maintains high customer satisfaction with a 79 Net Promoter Score (NPS) in Q2 2025 - Achieved a 79 Net Promoter Score (NPS) in Q2 2025, with strong ratings on Trustpilot (4.5/5) and BBB (A+ Rating)[15] Financial Performance This section details OppFi's Q2 2025 financial highlights, including significant Adjusted Net Income expansion and improved profitability drivers Q2 2025 Financial Highlights OppFi reported significant Adjusted Net Income expansion in Q2 2025, with a 59% YoY increase to $39 million - Significant Adjusted Net Income expansion year over year, driven by record revenue, improved net charge-off rate, and prudent expense management[20] Adjusted Net Income and EPS Trends | Metric | Q2 2023 | Q2 2024 | Q2 2025 | YoY Change (Q2 2025 vs Q2 2024) (%) | | :--- | :--- | :--- | :--- | :--- | | Adjusted Net Income ($M) | $16 | $25 | $39 | +59% | | Adjusted EPS ($) | $0.19 | $0.29 | $0.45 | +55% | Q2 2025 Performance: Improvement Across Key Profitability Drivers OppFi improved profitability in Q2 2025 with 12.8% YoY revenue growth, reduced net charge-off rate, and lower operating expense margin Key Profitability Drivers (Q2 2025) | Metric | Q2 2023 | Q2 2024 | Q2 2025 | YoY Change (Q2 2025 vs Q2 2024) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue ($M) | $122 | $126 | $142 | +13% | | Net Charge-Off Rate (%) | 36.2% | 32.5% | 31.9% | -60 bps | | Operating Expense Margin (%) | 45.9% | 45.0% | 38.9% | -610 bps | - Total revenue increased 12.8% YoY due to higher receivables and a 130 bps increase in annualized average yield[25] - Net charge-offs as a percentage of total revenue decreased 60 bps YoY, attributed to a higher yielding portfolio and increased recovery efforts[25] - Prudent expense management reduced total expenses as a percentage of total revenue by 610 bps YoY[25] Key Performance Indicators (KPIs) OppFi's Q2 2025 KPIs show strong growth in originations and receivables, improved credit quality, and enhanced operational efficiency Q2 2025 Key Performance Indicators | Metric | 6/30/2025 | 6/30/2024 | YoY Change (pp) | | :--- | :--- | :--- | :--- | | Total Net Originations ($M) | $234 | $206 | +14% | | Total Retained Net Originations ($M) | $206 | $189 | +9% | | Ending Receivables ($M) | $438 | $387 | +13% | | Net Charge-Off Rate as % of Total Revenue (%) | 32% | 33% | -1 pp | | Net Charge-Off Rate as % of Avg. Receivables, Annualized (%) | 43% | 44% | -1 pp | | Average Yield, Annualized (%) | 136% | 135% | +1 pp | | Automatic Approval Rate (%) | 80% | 76% | +4 pp | - Total net originations increased 14% YoY due to increased demand from returning customers and credit model improvements[33] - Ending Receivables increased 13% YoY due to a higher starting balance, growth in retained net originations, and term extension initiatives[33] - Average yield increased to 136% from 135% YoY, driven by an increase in the average statutory rate due to pricing initiatives[33] Liquidity and Capital Allocation OppFi generated $63.8 million in Free Cash Flow in 1H 2025 and maintains strong funding capacity with strategic capital allocation Free Cash Flow Generation (1H) | Metric | 1H 2024 | 1H 2025 | YoY Change ($M) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Free Cash Flow ($M) | $74.4 | $63.8 | -$10.6 | -14.2% | Total Funding Capacity (6/30/2025) | Component | Amount ($M) | | :--- | :--- | | Restricted and Unrestricted Cash | $78.3 | | Undrawn Debt | $219.1 | | Drawn Debt | $305.9 | | Total Funding Capacity | $603.3 | - Key capital allocation activities in 2025 include $30.0 million repayment of corporate term loan debt, $50.0 million upsize to revolving credit facility, and $28.1 million for special dividend/distribution[39] Full Year 2025 Guidance OppFi raised its full-year 2025 earnings guidance, projecting Adjusted EPS of $1.39 to $1.44 and increased revenue and net income Full Year 2025 Guidance (Raised) | Metric | Previous Guidance | New Guidance | | :--- | :--- | :--- | | Total Revenue ($M) | | $563 - $594 | | Adjusted Net Income ($M) | | $106 - $113 | | Adjusted EPS ($) | $1.18 to $1.26 | $1.39 to $1.44 | - Adjusted EPS of $1.39 to $1.44 is based on weighted average diluted shares outstanding of approximately 90 million[43] Appendix This section provides detailed financial statements and reconciliations for Q2 and YTD 2025, including income, balance sheet, and cash flow Q2 2025 Income Statement Q2 2025 total revenue increased 12.8% YoY to $142.4 million, but net income attributable to OppFi Inc. was a $20.8 million loss Q2 2025 Income Statement Highlights (Thousands) | Metric | Q2 2025 ($) | Q2 2024 ($) | Variance ($) | Variance (%) | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $142,443 | $126,304 | $16,139 | 12.8% | | Net revenue | $100,246 | $86,281 | $13,965 | 16.2% | | Total expenses | $55,438 | $56,794 | ($1,356) | (2.4%) | | Income from operations | $44,808 | $29,487 | $15,321 | 52.0% | | Change in fair value of warrant liabilities | ($33,304) | ($976) | ($32,328) | 3310.8% | | Net income | $11,480 | $27,676 | ($16,196) | (58.5%) | | Net (loss) income attributable to OppFi Inc. | ($20,780) | $3,066 | ($23,846) | (777.7%) | | Diluted EPS ($) | ($0.78) | $0.16 | | | YTD 2025 Income Statement YTD 2025 total revenue increased 11.5% YoY to $282.7 million, but net income attributable to OppFi Inc. was a $32.2 million loss YTD 2025 Income Statement Highlights (Thousands) | Metric | YTD 2025 ($) | YTD 2024 ($) | Variance ($) | Variance (%) | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $282,711 | $253,647 | $29,064 | 11.5% | | Net revenue | $191,056 | $149,495 | $41,561 | 27.8% | | Total expenses | $103,756 | $114,724 | ($10,968) | (9.6%) | | Income from operations | $87,300 | $34,771 | $52,529 | 151.1% | | Change in fair value of warrant liabilities | ($54,911) | $4,195 | ($59,106) | (1409.1%) | | Net income | $31,870 | $37,807 | ($5,937) | (15.7%) | | Net (loss) income attributable to OppFi Inc. | ($32,152) | $8,603 | ($40,755) | (473.7%) | | Diluted EPS ($) | ($1.28) | $0.36 | | | Condensed Balance Sheet As of June 30, 2025, total assets increased 5.0% to $673.4 million, while total liabilities rose 12.0% to $455.7 million Condensed Balance Sheet Highlights (Thousands) | Metric | June 30, 2025 ($) | December 31, 2024 ($) | Variance ($) | Variance (%) | | :--- | :--- | :--- | :--- | :--- | | Cash and restricted cash | $78,265 | $88,288 | ($10,023) | (11.4%) | | Finance receivables at fair value | $491,488 | $473,696 | $17,792 | 3.8% | | Total assets | $673,375 | $641,171 | $32,204 | 5.0% | | Total debt | $305,897 | $318,758 | ($12,861) | (4.0%) | | Warrant liabilities | $70,019 | $15,108 | $54,911 | 363.5% | | Total liabilities | $455,670 | $406,958 | $48,712 | 12.0% | | Total stockholders' equity | $217,705 | $234,213 | ($16,508) | (7.0%) | Condensed Cash Flow Statement YTD 2025 net cash from operations increased 18.2% to $179.4 million, but increased investing and financing outflows led to a $10.0 million cash decrease Condensed Cash Flow Statement Highlights (Thousands) | Metric | YTD 2025 ($) | YTD 2024 ($) | Variance ($) | Variance (%) | | :--- | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $179,357 | $151,732 | $27,625 | 18.2% | | Net cash used in investing activities | ($115,561) | ($77,344) | ($38,217) | 49.4% | | Net cash used in financing activities | ($73,819) | ($67,494) | ($6,325) | 9.4% | | Net (decrease) increase in cash and restricted cash | ($10,023) | $6,894 | ($16,917) | (245.4%) | Q2 2025 Adjusted Net Income Reconciliation Q2 2025 Adjusted Net Income increased 59.0% YoY to $39.4 million, primarily due to adjustments for warrant liabilities Q2 2025 Adjusted Net Income Reconciliation (Thousands) | Metric | Q2 2025 ($) | Q2 2024 ($) | Variance ($) | Variance (%) | | :--- | :--- | :--- | :--- | :--- | | Net income | $11,480 | $27,676 | ($16,196) | (58.5%) | | Change in fair value of warrant liabilities | $33,304 | $976 | $32,328 | 3310.8% | | Other adjustments, net | $5,542 | $2,932 | $2,610 | 89.0% | | Adjusted EBT | $51,471 | $32,419 | $19,052 | 58.8% | | Adjusted net income | $39,401 | $24,781 | $14,620 | 59.0% | | Adjusted net income margin (%) | 27.7% | 19.6% | | | YTD 2025 Adjusted Net Income Reconciliation YTD 2025 Adjusted Net Income increased 118.2% YoY to $73.2 million, largely excluding warrant liability fair value changes YTD 2025 Adjusted Net Income Reconciliation (Thousands) | Metric | YTD 2025 ($) | YTD 2024 ($) | Variance ($) | Variance (%) | | :--- | :--- | :--- | :--- | :--- | | Net income | $31,870 | $37,807 | ($5,937) | (15.7%) | | Change in fair value of warrant liabilities | $54,911 | ($4,195) | $59,106 | 1409.1% | | Other adjustments, net | $6,152 | $9,136 | ($2,984) | (32.7%) | | Adjusted EBT | $95,649 | $43,907 | $51,742 | 117.8% | | Adjusted net income | $73,219 | $33,562 | $39,657 | 118.2% | | Adjusted net income margin (%) | 25.9% | 13.2% | | | Q2 2025 Adjusted Earnings per Share Reconciliation Q2 2025 Adjusted EPS was $0.45, significantly higher than GAAP diluted EPS of ($0.78) due to non-GAAP adjustments Q2 2025 Adjusted EPS Reconciliation (Thousands, except per share) | Metric | Q2 2025 ($) | Per Share (Q2 2025) ($) | Q2 2024 ($) | Per Share (Q2 2024) ($) | | :--- | :--- | :--- | :--- | :--- | | Net income | $11,480 | $0.13 | $27,676 | $0.32 | | Change in fair value of warrant liabilities | $33,304 | $0.38 | $976 | $0.01 | | Other adjustments, net | $5,542 | $0.06 | $2,932 | $0.03 | | Adjusted EBT | $51,471 | $0.58 | $32,419 | $0.38 | | Adjusted net income | $39,401 | $0.45 | $24,781 | $0.29 | | Weighted average diluted shares outstanding | 88,419,961 | | 86,268,511 | | YTD 2025 Adjusted Earnings per Share Reconciliation YTD 2025 Adjusted EPS was $0.83, contrasting with GAAP diluted EPS of ($1.28) due to non-GAAP adjustments YTD 2025 Adjusted EPS Reconciliation (Thousands, except per share) | Metric | YTD 2025 ($) | Per Share (YTD 2025) ($) | YTD 2024 ($) | Per Share (YTD 2024) ($) | | :--- | :--- | :--- | :--- | :--- | | Net income | $31,870 | $0.36 | $37,807 | $0.44 | | Change in fair value of warrant liabilities | $54,911 | $0.62 | ($4,195) | ($0.05) | | Other adjustments, net | $6,152 | $0.07 | $9,136 | $0.11 | | Adjusted EBT | $95,649 | $1.08 | $43,907 | $0.51 | | Adjusted net income | $73,219 | $0.83 | $33,562 | $0.39 | | Weighted average diluted shares outstanding | 88,208,125 | | 86,148,477 | | Free Cash Flow Reconciliation YTD 2025 Free Cash Flow decreased 14.2% YoY to $63.8 million, primarily due to increased net cash used in investing activities Free Cash Flow Reconciliation (Thousands) | Metric | YTD 2025 ($) | YTD 2024 ($) | Variance ($) | Variance (%) | | :--- | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $179,357 | $151,732 | $27,625 | 18.2% | | Net cash used in investing activities | ($115,561) | ($77,344) | ($38,217) | 49.4% | | Free cash flow | $63,796 | $74,388 | ($10,592) | (14.2%) |