Oportun Financial (US:OPRT) Newsfile·2025-02-14 22:02Core Insights - Oportun Financial Corporation reported significant improvements in its Q4 and full year 2024 financial results, indicating a turnaround in operational performance and credit quality [1][2][6]. Financial Highlights - Total originations for Q4 2024 reached $522.1 million, reflecting a 19.4% increase year-over-year, marking a recovery after previous declines [2]. - Total revenue for Q4 was $251 million, with adjusted EPS for Q4 at $0.49, a significant improvement from $(0.21) in Q4 2023 [6]. - Full year 2024 adjusted EPS was $0.69, compared to $(1.93) in 2023, showcasing a strong recovery [6]. Operational Analysis - The annualized net charge-off rate improved to 11.7%, the lowest since Q3 2022, indicating better credit performance [2]. - Adjusted operating expenses decreased to $89.2 million, down 17% year-over-year, with operating expenses as a percentage of average daily principal balance improving by 141 basis points to 13.1% in Q4 2024 [3]. Credit Quality - The front book's annualized net charge-off rate was 10.5% in Q4 2024, within the target range of 9% to 11%, suggesting improving credit quality [4]. 2025 Outlook - Management provided guidance for FY 2025, projecting revenue between $945-$970 million and adjusted EBITDA between $135-$145 million [7]. - Adjusted EPS is forecasted between $1.10-$1.30, with loan originations growth projected at 10-15% year-over-year and a net charge-off rate expected at 11.5% (±50 basis points) [7]. - The company's business model aims for a long-term Return on Equity in the range of 20%-28% as operational efficiencies continue to improve [5].