Oportun Reports First Quarter 2025 Financial Results

Core Insights - Oportun Financial Corporation reported a GAAP net income of $9.8 million for Q1 2025, a significant increase of $36 million year-over-year, marking the second consecutive quarter of GAAP profitability [1][2] - The company achieved an adjusted EPS of $0.40, up from $0.09 in the prior year, reflecting strong operational performance [1][13] - Operating expenses were reduced by 15% year-over-year to $93 million, demonstrating effective cost management [1][11] Financial Performance - Total revenue for Q1 2025 was $236 million, down 6% from $250 million in Q1 2024, primarily due to the absence of $11 million from the sold credit card receivable portfolio [3][10] - Adjusted net income rose to $19 million from $3.6 million in the prior year, driven by reduced operating expenses and improved credit performance [12][13] - The annualized net charge-off rate was 12.2%, slightly up from 12.0% year-over-year, while dollar net charge-offs decreased by 5% [15][5] Operational Metrics - Aggregate originations reached $469 million, a 39% increase compared to $338 million in the prior-year quarter [5][8] - The portfolio yield improved to 33.0%, up 49 basis points from 32.5% in the prior year, attributed to increased loan pricing [5][9] - The 30+ day delinquency rate decreased to 4.7%, down from 5.2% in the prior year, marking the fifth consecutive quarterly decline [6][15] Guidance and Outlook - The company is moderating its full-year loan originations growth expectation to approximately 10%, down from the previous range of 10% to 15% [2] - Oportun reiterated its full-year 2025 adjusted EPS guidance of $1.10 to $1.30 per share, indicating a growth of 53% to 81% [2][21] - For Q2 2025, total revenue is expected to be between $237 million and $242 million, with an annualized net charge-off rate projected at 11.90% [21]