Oportun Financial (US:OPRT)2025-11-04 21:34Financial Performance - GAAP net income for Q3 2025 was $5.2 million, a $35 million improvement year-over-year[2] - Adjusted EPS increased to $0.39, up from $0.02 in Q3 2024, reflecting a significant year-over-year growth[4] - Total revenue for Q3 2025 was $239 million, a 5% decrease from $250 million in the prior-year quarter[11] - Net income for Q3 2025 was $5.2 million, compared to a net loss of $30.0 million in Q3 2024[32] - The company reported a diluted earnings per share of $0.11 for Q3 2025, compared to a loss of $0.75 per share in Q3 2024[32] - Adjusted net income for the nine months ended September 30, 2025, was $52.1 million, a significant improvement from a loss of $87.4 million in the same period of 2024[54] - The company reported a net income of $5.2 million for Q3 2025, a recovery from a loss of $30.0 million in Q3 2024[54] - For Q3 2025, Oportun Financial Corporation reported a net income of $5.2 million, a significant improvement from a net loss of $30.0 million in Q3 2024[58] - Adjusted net income for the nine months ended September 30, 2025, was $52.1 million, up from $7.8 million in the same period of 2024[58] Revenue and Originations - Total revenue for Q3 2025 was $238.7 million, a decrease of 4.8% from $250.0 million in Q3 2024[32] - Aggregate originations for Q3 2025 were $512 million, a 7% increase compared to $480 million in Q3 2024[15] - Aggregate originations for Q3 2025 reached $511.8 million, up 6.9% from $480.2 million in Q3 2024[39] Operational Efficiency - Operating expenses decreased by 11% year-over-year to $91 million, with a revised full-year outlook of approximately $370 million[12] - Total operating expenses for Q3 2025 were $90.8 million, down from $102.1 million in Q3 2024[32] - Adjusted Operating Expense Ratio for Q3 2025 improved to 12.6%, compared to 14.7% in Q3 2024, showing enhanced operational efficiency[56] - Total Operating Expense for the nine months ended September 30, 2025, was $277.9 million, down from $320.9 million in the same period of 2024[56] Credit Quality - Annualized net charge-off rate improved to 11.8%, down 7 basis points from 11.9% in the prior-year quarter[18] - The 30+ day delinquency rate improved to 4.7%, down from 5.2% in the prior-year quarter[18] - The 30+ day delinquency rate improved to 4.7% in Q3 2025, down from 5.2% in Q3 2024[39] - The annualized net charge-off rate was 11.8% for Q3 2025, slightly down from 11.9% in Q3 2024[39] Cash and Assets - Total cash as of September 30, 2025, was $224 million, with $788 million of undrawn capacity on existing personal loan warehouse lines[22] - Cash and cash equivalents at the end of Q3 2025 totaled $224.0 million, compared to $228.5 million at the end of Q3 2024[37] - Total assets as of September 30, 2025, were $3,186.2 million, a decrease from $3,227.1 million at the end of 2024[35] Future Guidance - The company expects full-year 2025 adjusted EPS guidance to increase by 4%, now ranging from $1.30 to $1.40 per share[3] - The company expects adjusted EBITDA for Q4 2025 to range between $31.0 million and $37.0 million[59] - For FY 2025, adjusted net income is projected to be between $63.0 million and $67.0 million, with diluted earnings per share expected to be between $0.73 and $0.82[60] - The total number of diluted weighted-average common shares outstanding for FY 2025 is estimated at 48.1 million[60] Stock and Compensation - Oportun's stock-based compensation expense for FY 2025 is projected to be $11.6 million[60] - The basic weighted-average common shares outstanding increased to 46,711,134 in Q3 2025 from 39,964,322 in Q3 2024[58] Profitability Metrics - Adjusted EBITDA for Q3 2025 was $41 million, a 31% increase from $31 million in the prior-year quarter[17] - Adjusted EBITDA for Q3 2025 was $41.2 million, compared to $31.4 million in Q3 2024, reflecting a year-over-year increase of 31.1%[54] - Risk Adjusted Net Interest Margin for Q3 2025 was $110.4 million, an increase from $97.6 million in Q3 2024, representing a growth of 13.7%[56] - Net Interest Margin Ratio for Q3 2025 was 27.1%, compared to 28.0% in Q3 2024, indicating a slight decline in profitability[56] - Adjusted Return on Equity (ROE) for Q3 2025 was 19.6%, a significant increase from 1.1% in Q3 2024[54] Debt and Costs - The cost of debt increased to 8.1% in Q3 2025, compared to 7.8% in Q3 2024[39]