Oportun Financial (US:OPRT)2025-08-06 23:27Financial Performance - Aggregate originations for the three months ended June 30, 2025, were $480.8 million, compared to $434.8 million for the same period in 2024, representing an increase of 10.4%[129] - Total revenue for the three months ended June 30, 2025, was $234.3 million, a decrease of 6.4% from $250.4 million in the same period of 2024[146] - Net income for the three months ended June 30, 2025, was $6.9 million, compared to a net loss of $31.0 million for the same period in 2024[145] - Adjusted EBITDA for the three months ended June 30, 2025, was $31.2 million, compared to $30.2 million for the same period in 2024[194] - Adjusted Net Income for Q2 2025 was $14.7 million, compared to $3.2 million in Q2 2024, representing a significant increase[198] - Diluted Adjusted EPS for Q2 2025 was $0.31, up from $0.08 in Q2 2024, indicating improved profitability[200] Loan and Portfolio Metrics - The portfolio yield for the three months ended June 30, 2025, was 32.8%, down from 33.9% in the same period of 2024[129] - The average loan size for personal loans originated during the three months ended June 30, 2025, was $2,937[121] - The average loan size for secured personal loans originated during the same period was $6,333[122] - The managed principal balance at the end of the period was $2.94 billion as of June 30, 2025, compared to $2.99 billion as of June 30, 2024[129] - The owned principal balance at the end of the period was $2.64 billion as of June 30, 2025, down from $2.72 billion as of June 30, 2024[129] - The average daily principal balance for the three months ended June 30, 2025, was $2.67 billion, compared to $2.75 billion for the same period in 2024[129] Delinquency and Charge-Off Rates - The 30+ day delinquency rate improved to 4.4% for the three months ended June 30, 2025, compared to 5.0% in the same period of 2024[129] - The annualized net charge-off rate decreased to 11.9% for the three months ended June 30, 2025, from 12.3% in the same period of 2024[129] - Total charge-offs, net of recoveries decreased by $4.9 million, or 5.9%, to $78.96 million for the three months ended June 30, 2025, compared to $83.88 million for the same period in 2024[161] - The Annualized Net Charge-Off Rate improved to 11.9% for the three months ended June 30, 2025, down from 12.3% in the same period of 2024, driven by better credit performance[161] Operating Expenses - Operating expenses totaled $94.4 million for the three months ended June 30, 2025, down from $109.2 million in the same period of 2024[145] - Technology and facilities expenses decreased by $4.0 million, or 9.8%, to $36.6 million for the three months ended June 30, 2025, compared to $40.6 million in 2024[164] - Sales and marketing expenses increased by $1.8 million, or 11.2%, to $18.1 million for the three months ended June 30, 2025, primarily due to higher marketing costs[167] - Personnel expenses decreased by $1.7 million, or 7.6%, to $20.2 million for the three months ended June 30, 2025, reflecting workforce optimization efforts[170] - General, administrative and other expenses dropped by $12.2 million, or 55.6%, to $9.8 million for the three months ended June 30, 2025, largely due to prior year impairments and workforce optimization costs[177] Tax and Deferred Assets - Income tax expense increased by $21.4 million, or 118%, from a benefit of $18.1 million for the three months ended June 30, 2024, to an expense of $3.2 million for the three months ended June 30, 2025[180] - As of June 30, 2025, the company has $78.0 million of U.S. net deferred tax assets, with $68.4 million related to tax-effected net operating losses and other carryforwards[182] Liquidity and Financing - Total liquidity as of June 30, 2025, was $1.23 billion, with remaining available capacity of $865.9 million[209] - Cash provided by operating activities for the six months ended June 30, 2025, was $205.5 million, an increase from $193.6 million in 2024[211] - Net cash used in investing activities increased to $107.9 million in 2025 from $27.0 million in 2024, primarily due to higher loan originations[212] - The company believes its existing cash balance, anticipated positive cash flows, and available borrowing capacity will be sufficient to meet cash operating expenses and capital expenditure requirements for at least the next 12 months[239] Debt and Compliance - As of June 30, 2025, the company had $1.9 billion of outstanding asset-backed notes[215] - The company was in compliance with all covenants and requirements of its asset-backed notes as of June 30, 2025[216] - The company entered into a Credit Agreement borrowing $235 million through a senior secured term loan, maturing on November 14, 2028[229] - As of June 30, 2025, the company was in compliance with all covenants and requirements on its outstanding debt and available credit[231] Market and Risk Assessment - The company has not reported any material changes in critical accounting policies from its 2024 Form 10-K[241] - The preparation of financial statements requires estimates and assumptions that may differ from actual results under different conditions[240] - As a "Smaller Reporting Company," the company is not required to provide quantitative and qualitative disclosures about market risk[243]