OppFi (US:OPFI)2025-10-29 11:14Financial Performance - Q3 2025 net income reached $75.9 million, a year-over-year increase of $43.9 million, achieving a net income margin of 49.0%[9] - Adjusted net income for Q3 2025 was $40.7 million, up $11.9 million year-over-year, with an adjusted net income margin of 26.3%, expanding by 520 basis points[9] - Total revenue for Q3 2025 increased by 13.5% year-over-year to $155.1 million, marking a new company quarter record[9] - Total net originations for Q3 2025 were $246.1 million, an increase of $27.3 million year-over-year, also a new company quarter record[10] - Total revenue for YTD 2025 reached $437.8 million, a 12.2% increase from $390.2 million in YTD 2024[50] - Net income attributable to OppFi Inc. for Q3 2025 was $41.6 million, representing an increase of 876.5% compared to $4.3 million in Q3 2024[48] - For the three months ended September 30, 2025, net income increased to $75,933,000, representing a 136.9% increase compared to $32,057,000 in the same period of 2024[58] - Total revenue for the three months ended September 30, 2025, was $155,089,000, up from $136,593,000 in 2024, indicating a growth of 13.5%[58] - Adjusted net income for the three months ended September 30, 2025, was $40,727,000, a 41.4% increase from $28,808,000 in 2024[58] - For the nine months ended September 30, 2025, net income was $107,803,000, reflecting a 54.3% increase from $69,864,000 in 2024[62] - Total revenue for the nine months ended September 30, 2025, reached $437,800,000, compared to $390,240,000 in 2024, marking an increase of 12.1%[62] - Adjusted net income for the nine months ended September 30, 2025, was $113,945,000, an 82.7% increase from $62,370,000 in 2024[62] Operational Metrics - Ending receivables as of Q3 2025 were $481.0 million, representing a year-over-year increase of 16%[31] - The net charge-off rate as a percentage of total revenue increased to 35% from 34% year-over-year, while the annualized net charge-off rate as a percentage of average receivables rose to 47% from 46%[35] - The average yield decreased to 133% from 134% year-over-year, primarily due to elevated charge-offs from early summer vintages[35] - The automatic approval rate improved to 79% from 77% year-over-year, reflecting advancements in algorithmic automation projects[35] - Total expenses as a percentage of total revenue decreased by 490 basis points year-over-year to 36.2%[9] - Total expenses for YTD 2025 decreased by 6.4% to $159.9 million from $170.8 million in 2024[50] Cash Flow and Assets - Free cash flow generated was $66 million for the first nine months of 2025, despite accelerating issuance growth[37] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $284.5 million, a 24.1% increase from $229.3 million in 2024[55] - Total assets as of September 30, 2025, were $720.6 million, a 12.4% increase from $641.2 million at the end of 2024[52] - Free cash flow for the nine months ended September 30, 2025, was $66,062,000, down 11.5% from $74,621,000 in 2024[71] Future Guidance and Plans - Adjusted EPS guidance for full year 2025 is raised to a range of $1.39 to $1.44, up from previous estimates[43] - The company plans a $150 million replacement revolving credit facility, reducing financing costs by 150 basis points[41] - The weighted average diluted shares outstanding for adjusted EPS calculation is approximately 89 million[45] Other Notable Changes - The company reported a significant increase in income before income taxes for Q3 2025, which was $81.6 million, up 137.5% from $34.4 million in Q3 2024[48] - The net income margin for the three months ended September 30, 2025, was 49.0%, significantly higher than 23.5% in 2024[58] - The company reported a change in fair value of warrant liabilities of $(31,688,000) for the three months ended September 30, 2025, compared to $1,445,000 in 2024, indicating a significant negative variance[58]