Findell Capital Releases Presentation on Oportun Financial

Core Viewpoint - Findell Capital Partners emphasizes the need for increased independence and consumer finance expertise on the board of Oportun Financial Corporation, criticizing the current board's oversight and management accountability [1][2]. Group 1: Board Performance and Management Issues - The legacy Board of Directors has failed to effectively oversee management, leading to significant losses and a decline in stockholder capital, with nearly $1.5 billion lost due to poor strategic decisions [3]. - CEO Raul Vazquez's management has resulted in a 76% decline in stock price from September 2019 to March 2023, with Oportun underperforming compared to its peer, OneMain Holdings, in key financial metrics [3]. - The current board lacks lending experience, particularly in subprime lending, and several members have potential conflicts of interest due to past relationships [3]. Group 2: Proposed Changes and Opportunities - Findell advocates for the election of Warren Wilcox, an independent director with relevant subprime lending expertise, to improve board oversight and eliminate legacy control [2][3]. - The company has the potential to reduce corporate overhead by $80 million and achieve an operating expense ratio of less than 12%, aligning more closely with competitors [3]. - Oportun could target a pre-tax return on assets (ROA) of 8-10% and maintain a conservative leverage ratio to achieve over 40% return on equity (ROE) [3]. Group 3: Financial Projections - If Oportun reduces annual operating expenses to $325 million by the end of 2026, the stock could potentially reach over $22 per share, assuming a pre-tax ROA of 8-10% and a market multiple of 6-7X earnings [3][4].