OppFi (OPFI) - 2025 Q2 - Quarterly Report

Financial Performance - Total revenue for Q2 2025 was $142.4 million, a 12.5% increase from $126.3 million in Q2 2024[19] - Net income for Q2 2025 was $11.5 million, compared to $27.7 million in Q2 2024, resulting in a net loss attributable to OppFi Inc. of $20.8 million[19] - Net revenue for the first half of 2025 was $191,056,000, up 27.9% from $149,495,000 in the first half of 2024[90] - The company reported an income from operations of $44,808,000 for Q2 2025, compared to $29,487,000 in Q2 2024, reflecting a 51.9% increase[90] - For the three months ended June 30, 2025, OppFi Inc. reported a net loss of $20,780,000 compared to a net income of $3,066,000 for the same period in 2024, representing a significant decline[103] - The diluted loss per share for the six months ended June 30, 2025, was $(1.28), a decrease from $0.36 in the same period of 2024[103] - The company reported a basic loss per share of $(0.78) for the three months ended June 30, 2025, compared to a profit of $0.16 in the same period of 2024[103] Assets and Liabilities - Total assets increased to $673.4 million as of June 30, 2025, up from $641.2 million at the end of 2024, reflecting a growth of 5%[14] - Total liabilities rose to $455.7 million, an increase of 11.9% from $407.0 million at the end of 2024[14] - The company’s accumulated deficit increased to $91.5 million as of June 30, 2025, from $55.1 million at the end of 2024[14] - The unpaid principal balance of finance receivables outstanding for purchase was $9.1 million as of June 30, 2025, compared to $7.1 million as of December 31, 2024[36] - The balance of finance receivables at fair value was $491.5 million as of June 30, 2025, up from $473.7 million as of December 31, 2024[47] Cash Flow and Expenses - Cash flows from operating activities for the six months ended June 30, 2025, provided $179,357,000, an increase from $151,732,000 in 2024, representing a growth of about 18.3%[27] - The company incurred interest paid on borrowed funds of $18,135,000 for the six months ended June 30, 2025, compared to $21,592,000 in 2024, a decrease of about 16.4%[27] - Total expenses for Q2 2025 were $55,438,000, a decrease of 2.4% from $56,794,000 in Q2 2024[90] - Charge-offs, net for the first half of 2025 were $94,021,000, down 7.1% from $102,059,000 in the first half of 2024[90] Compensation and Stock - The company reported stock-based compensation expense of $6,352,000 for the six months ended June 30, 2025, compared to $3,096,000 in 2024, which is an increase of approximately 105.5%[27] - Stock-based compensation expense related to RSUs was $5,000,000 for the three months ended June 30, 2025, compared to $1,900,000 in 2024[70] - As of June 30, 2025, total unrecognized compensation expense related to RSUs was $13,400,000, expected to be recognized over approximately 3.4 years[70] - The company recognized ESPP compensation expense of $38 thousand for the three months ended June 30, 2025, compared to $19 thousand for the same period in 2024[73] Legal and Regulatory Matters - The company is currently involved in legal proceedings and regulatory matters, which may impact its financial condition, but management does not expect a material adverse effect[94] Taxation - For the three months ended June 30, 2025, OppFi recorded an income tax expense of $1.2 million on consolidated income before income taxes of $12.7 million, resulting in a 9.6% effective income tax rate[74] - For the six months ended June 30, 2025, OppFi's income tax expense was $2.9 million with consolidated income before income taxes of $34.7 million, leading to an 8.3% effective income tax rate[76] - The company did not report any income tax expense for the three and six months ended June 30, 2025[103] Other Financial Metrics - The change in fair value of finance receivables for the six months ended June 30, 2025, was $91,655,000, compared to $104,121,000 in 2024, indicating a decrease of approximately 12%[27] - The change in fair value of warrant liabilities resulted in an expense of $33,304,000 for Q2 2025, compared to $976,000 in Q2 2024[90] - The fair value of finance receivables at fair value, excluding accrued interest and fees receivable, was $470.2 million as of June 30, 2025, up from $455.3 million as of December 31, 2024[83]