OPFI Lifts EPS Guidance for 2025: Can It Meet the Expectation?

Core Insights - OppFi (OPFI) has raised its adjusted EPS guidance for 2025 to a range of $1.39-$1.44, up from the previous range of $1.18-$1.26, indicating strong growth expectations [1][8] - The adjusted net income guidance for 2025 has also increased to $125-$130 million from $106-$113 million, reflecting a positive growth trajectory [2][8] - Despite a 44% sequential decline in net income during the June quarter, adjusted net income saw significant increases of 67% in Q1 and 117% in Q2, driven by changes in fair value of warrant liabilities [3][8] - Total revenues for 2025 are expected to be between $578 million and $605 million, representing a 10% to 15% increase from 2024 actuals, supported by consistent top-line growth and prudent expense management [4] - OPFI's stock has surged 139.6% over the past year, outperforming competitors Green Dot (GDOT) and FirstCash (FCFS), which rose 18% and 25.5% respectively [5][8] Valuation and Estimates - OPFI trades at a forward price-to-earnings ratio of 6.62, significantly lower than the industry average of 22.11, with Green Dot at 9.2 and FirstCash at 16.24 [9] - The Zacks Consensus Estimate for OppFi's earnings for 2025 and 2026 has increased by 15.4% and 4.9% respectively over the past 60 days, indicating positive market sentiment [12]