Oportun Announces Definitive Agreement to Sell its Credit Card Portfolio

Core Insights - Oportun has signed a definitive agreement to sell its credit card portfolio to Continental Finance, marking a significant step towards enhancing profitability and simplifying its business model [1][3] - The closing date for the transaction is now expected around November 10, 2024, with an anticipated Adjusted EBITDA impact of approximately $2 million in 2024, down from the previously indicated $4 million [2] - The company expects the transaction to yield an Adjusted EBITDA benefit of about $11 million in 2025 [2] Company Overview - Oportun is a mission-driven financial services company that has provided over $18.7 billion in responsible credit since its inception, saving members more than $2.4 billion in interest and fees [4] - The company focuses on three core products: unsecured personal loans, secured personal loans, and the Set & Save™ savings product [1] Continental Finance Overview - Continental Finance has managed over 5.3 million credit cards and emphasizes excellent customer service and access to innovative credit products for consumers with poor or limited credit [5]