Oportun Achieves Third Straight Quarter of GAAP Profitability and Raises Full-Year 2025 Outlook

Core Insights - Oportun Financial Corporation reported a GAAP net income of $6.9 million for Q2 2025, marking a $38 million improvement year-over-year [1][2] - The company achieved a GAAP EPS of $0.14, an increase of $0.92 compared to the same quarter last year [1][2] - Adjusted EPS rose to $0.31, reflecting a 288% increase from the prior-year quarter [1][2] - Operating expenses decreased by 13% year-over-year, contributing to margin expansion [1][12] - The company raised its full-year 2025 Adjusted EPS guidance by 8% at the midpoint to a range of $1.20 to $1.40, indicating strong growth of 67% to 94% over the previous year [2][22] Financial Performance - Total revenue for Q2 2025 was $234 million, down 6% from $250 million in Q2 2024, primarily due to the absence of revenue from a sold credit card portfolio [11][12] - Net revenue increased by 74% year-over-year to $105 million, driven by reduced fair value marks and net charge-offs [11] - Adjusted EBITDA for Q2 2025 was $31 million, slightly up from $30 million in the prior-year quarter [15] Operational Metrics - Aggregate originations reached $481 million, an 11% increase compared to $435 million in the prior-year quarter [5][7] - The owned principal balance at the end of the period was $2.6 billion, a decrease of 3% from $2.7 billion in the prior-year quarter [5] - The annualized net charge-off rate improved to 11.9%, down 41 basis points from 12.3% in the prior-year quarter [5][17] - The 30+ day delinquency rate decreased to 4.4%, down from 5.0% in the prior-year quarter [5][17] Guidance and Outlook - For the full year 2025, total revenue is expected to be between $945 million and $960 million, with a slight reduction in the higher end of the range by $10 million [2][22] - The company anticipates an annualized net charge-off rate of 11.9% for the full year, with a range of +/- 30 basis points [22] - Adjusted EPS guidance for the full year remains at $1.20 to $1.40 per share [22] Funding and Liquidity - As of June 30, 2025, total cash was $228 million, including cash and cash equivalents of $97 million and restricted cash of $131 million [21] - The cost of debt was reported at 8.6%, with a debt-to-equity ratio of 7.3x [21] - The company had $618 million of undrawn capacity on its existing $954 million personal loan warehouse lines [21]