Core Insights - OppFi is innovating credit underwriting with its proprietary Model 6, which emphasizes long-term borrower behavior over traditional risk assessment methods [1] Company Overview - OppFi operates in the credit underwriting space, focusing on a model that looks beyond surface-level risks [1] - The company has developed a proprietary credit engine, Model 6, which is central to its transformation in credit assessment [1] Business Strategy - The company prioritizes long-term borrower behavior, aiming to create a more sustainable credit model [1] - OppFi's approach is designed to leverage market inefficiencies and contrarian insights to maximize long-term compounding [1] Financial Health - The company emphasizes sustainable revenue growth and efficient cash flow management [1] - OppFi maintains a strong balance sheet and a long-term survival runway, avoiding excessive dilution and financial weaknesses [1] Market Positioning - OppFi benefits from a strong technology moat and first-mover advantage in the credit underwriting industry [1] - The company is positioned in high-growth industries, leveraging network effects to drive exponential growth [1]

Financial Data and Key Metrics Changes - The company achieved a record-setting fourth quarter with total revenue reaching $100.9 million, a 38% increase year-over-year [32] - Adjusted EBITDA for the quarter was $33.4 million, with adjusted net income improving to $29.6 million compared to $6.6 million in Q4 2023 [42][43] - Non-GAAP variable profit increased 58% year-over-year to $72.6 million, achieving a 72% margin relative to total revenue [34] Business Line Data and Key Metrics Changes - Multi-transacting members (MTMs) grew 17% year-over-year to 2.5 million, supported by a 12% increase in marketing spend [14][12] - Extra cash originations reached a record $1.5 billion, up 44% year-over-year and 9% quarter-over-quarter [15] - Average extra cash size grew 17% year-over-year, driven by the new fee structure and the V5 cash AI underwriting model [16] Market Data and Key Metrics Changes - The 28-day delinquency rate improved by 24% year-over-year, reflecting the effectiveness of the cash AI underwriting model [18] - The average tenure of MTMs increased by 22% year-over-year, indicating improved member retention [20] Company Strategy and Development Direction - The company focuses on three strategic pillars: acquiring new members efficiently, engaging them through extra cash, and deepening relationships via the Dave Card [11] - A new fee structure for ExtraCash was implemented, which is expected to enhance monetization and member retention [9][10] - The partnership with Coastal Community Bank aims to leverage their scale and compliance capabilities to enhance product offerings [24] Management Comments on Operating Environment and Future Outlook - Management expressed optimism for continued growth in 2025, expecting another record year of revenue and profitability [29] - The company remains confident in its legal position regarding ongoing litigation and has implemented product changes to improve member experience [26][27] Other Important Information - The company plans to moderately expand marketing investments throughout 2025 while maintaining a disciplined focus on investment returns [13] - The balance sheet showed approximately $91.9 million in cash and cash equivalents, with total liquidity nearing $167 million [45] Q&A Session Summary Question: Can you elaborate on the new pricing model and its impact on monetization? - The new pricing model has improved monetization by providing a fixed fee structure, resulting in better ARPU and retention [52][53] Question: Are there enough opportunities to continue increasing marketing spend? - The company has diversified its acquisition channels and plans to invest where strong returns are observed [56][57] Question: What are the expectations for growth in service-based and transaction-based revenue? - Near-term opportunities are expected on the ARPU side due to the new fee model, with potential catalysts for service-based revenue growth [69][72] Question: How do you expect the provision for credit losses to change? - The provision for credit losses is expected to increase in absolute terms as originations grow, but the company remains confident in managing loss rates [73][75] Question: Can you explain the new partnership with Coastal Community Bank? - The partnership will enable the company to onboard new customers exclusively through Coastal, enhancing product offerings and operational efficiency [78][114]