OppFi (US:OPFI) ZACKS·2026-01-13 16:45Core Insights - OppFi (OPFI) achieved a record auto-approval rate of 79.1% in Q3 2025, an increase of 230 basis points year-over-year, driven by its AI and machine-learning credit assessment technology, Model 6 [1][8] - The company reported revenues of $155 million in Q3 2025, reflecting a 13.5% increase from the previous year, alongside a 490-basis point reduction in the expense-to-revenue ratio [2][8] - Net income and adjusted net income surged by 136.9% and 41.4% year-over-year, respectively, indicating significant operational efficiency [3] Operational Efficiency - The high auto-approval rates contributed to improved margins by decoupling top-line growth from manual underwriting costs, with the sustainability of this efficiency reliant on the upcoming Model 6.1 refit [4] - The Loan Origination Lending Application (LOLA) is set to be migrated in Q1 2026, which, combined with the credit assessment tool, aims to transition labor-intensive processes into a high-margin software-first business [5] Market Performance and Valuation - OppFi's stock has decreased by 4.8% over the past year, compared to a 4.6% decline in its industry and a 23.4% increase in the Zacks S&P 500 Composite [6] - The forward 12-month price-to-earnings ratio for OPFI is 5.92X, which is lower than WEX's 9.06X but higher than Global Payments' 5.75X [10] - The Zacks Consensus Estimate for OppFi's earnings per share remains unchanged at $1.57 for 2025 and $1.71 for 2026 [13]