NEW YORK, June 17, 2025 /PRNewswire/ -- Findell Capital Partners, LP, (together with its affiliates, "Findell," "we" or "us") one of the largest stockholders of Oportun Financial Corporation (NASDAQ: OPRT) ("Oportun" or the "Company"), today issued the following statement:"While we have gone to great lengths to engage privately with the Board on ideas for creating value and a settlement, we have been met with sustained resistance. Oportun is wasting millions of stockholder dollars to fight one of its larges ...

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].

Core Insights - Oportun Financial Corporation's shares have increased by 80.7% in 2025, outperforming both its peers and the broader Finance sector [1][5] - The company has shown solid loan growth and revenue performance, although there are concerns regarding tariff-related issues and geopolitical tensions [2][3] Financial Performance - Oportun's total revenues and loans receivable at fair value have experienced a 5-year compound annual growth rate (CAGR) of 10.8% and 8.1%, respectively [3] - The company expects total revenues to be between $945 million and $970 million in 2025, down from $1 billion in 2024 [12][24] - Management anticipates adjusted earnings per share (EPS) to rise to a range of $1.10 to $1.30 in 2025, up from $0.72 in 2024 [5][24] Growth Drivers - Oportun is driving loan growth through diverse offerings, including personal loans and "lending as a service" programs, which help expand its client base [7] - The company has been leveraging technology, particularly AI and machine learning, to enhance underwriting standards and improve customer service [13][15] - Rising non-interest income has been supported by higher subscriptions and servicing fees, with a CAGR of 6.4% over the five years ended 2024 [8] Valuation and Market Position - Oportun's price-to-book (P/B) ratio is 0.72X, significantly lower than the industry average of 3.48X, indicating that the stock is undervalued [18][20] - The company's return on equity (ROE) stands at 10.12%, which is favorable compared to the industry average of 8.06% [26][29] Challenges - Operating expenses have shown a 5-year CAGR of 2.5%, driven by increased sales, marketing, and technology costs [30] - The company has faced weak asset quality, with net charge-offs (NCOs) reflecting a CAGR of 19.7% over the past five years [31]

Core Insights - Dave Inc.'s CashAI underwriting engine is a significant differentiator in the fintech space, contributing to a 235% year-over-year increase in adjusted EBITDA in Q1 2025 [1][8] - The company experienced a 67% year-over-year increase in non-GAAP variable profit, with a variable margin of 77%, up 950 basis points, attributed to CashAI's cost management capabilities [2][8] - ExtraCash originations rose by 46% year-over-year, exceeding $1.5 billion, showcasing CashAI's effectiveness in underwriting larger amounts for members [3][4] Performance Metrics - The 28-day delinquency rate improved by 18% year-over-year, with a reduction in credit loss provisions to 0.69% from 0.94% in the previous year [4][8] - CashAI's ability to analyze real-time bank account transaction data is expected to enhance risk identification and profitability, positioning the company favorably against traditional lending models [5] Stock Performance - Dave's stock price surged 456% over the past year, outperforming competitors CoreCard and Loop Industries, which increased by 52.3% and 79.1% respectively, while Loop Industries declined by 33.1% [6][10] - In the last three months, the stock rose by 150.9%, again outperforming the industry and its competitors [10] Valuation and Estimates - The forward price-to-earnings ratio for Dave is 21.03, below the industry average of 24.73, indicating a potentially attractive valuation [13] - The Zacks Consensus Estimate for Dave's earnings for 2025 has increased by 33.8% over the past month, reflecting positive market sentiment [15]

Core Insights - Upstart offers personal loans tailored for individuals with bad credit, utilizing an AI-powered platform that evaluates more than just credit scores, providing a viable option for those traditionally rejected by banks [1][9][30] Group 1: Loan Options for Bad Credit - The lending landscape has evolved, with companies like Upstart using holistic approaches to assess borrowers, allowing those with low credit scores to access loans [3][4] - Upstart's loan amounts range from $1,000 to $50,000, with APRs between 6.70% and 35.99%, and funding can occur as soon as one business day after approval [16][31] - Interest rates for bad credit loans typically range from 8.99% to 35.99% APR, with origination fees varying from 0% to 12% [7][16] Group 2: Upstart's Unique Approach - Upstart differentiates itself from traditional lenders by using AI to analyze over 1,000 data points, including education, employment history, and income, rather than relying solely on credit scores [11][23] - The platform allows for approvals even for applicants with credit scores as low as 300, making it accessible to a broader range of borrowers [16][23] - Upstart's application process is streamlined, taking about 10-15 minutes, and includes a "soft pull" pre-qualification that does not impact the applicant's credit score [28][30] Group 3: Customer Experiences - Real customer stories, such as that of Michael, illustrate the effectiveness of Upstart's loans in consolidating high-interest debt and improving credit scores through timely payments [17][18] - Customers report a less stressful application process, with a focus on stable job history and education rather than past credit mistakes [26][30] Group 4: Comparison with Traditional Lenders - Upstart provides a middle ground between traditional banks, which often deny applications, and predatory lenders that charge excessive rates, making it a favorable option for borrowers with sub-580 credit scores [20][23] - Traditional banks typically require credit scores of 630 or higher and have slower approval processes, limiting options for those with bad credit [23][30]

Financial Data and Key Metrics Changes - For Q1 2025, the company generated distributable earnings of $0.21 per basic weighted average share of common stock, with net interest income of $4,500,000 and GAAP net income of $4,100,000, or $0.18 per share [9][13] - The weighted average portfolio yield to maturity was approximately 18% as of both March 31, 2025, and May 1, 2025 [14] - The CECL reserve was $29,900,000, approximately 9.75% of loans at carrying value, with total unrealized losses of $20,400,000 for loans held at fair value [14] Business Line Data and Key Metrics Changes - The company ended Q1 2025 with $366,300,000 of principal outstanding across 17 loans, which increased to $372,500,000 across 18 loans by May 1, 2025 [13] - The active pipeline as of May 1, 2025, included $287,000,000 of deals, with a focus on sourcing deals from operators with a successful track record [7][14] Market Data and Key Metrics Changes - The cannabis industry continues to experience a supply and demand imbalance for capital, with demand outpacing limited supply due to refinancing activity and increased M&A expected in the second half of the year [6] - Many capital market participants remain on the sidelines due to a lack of clarity around federal reform, impacting the availability of capital in the industry [6] Company Strategy and Development Direction - The company is focused on protecting principal in its investments and is selective in its originations, prioritizing high-quality borrowers and proven operators [7][19] - The company aims to unlock value from underperforming loans while evaluating new lending opportunities [12] Management's Comments on Operating Environment and Future Outlook - Management noted that the volatility in the cannabis market and uncertainty surrounding federal progress will influence their opportunistic approach to originations [19] - The board is expected to declare dividends on or about June 15, with a policy of distributing 85% to 100% of earnings over the year [20] Other Important Information - The company is engaged in legal proceedings related to a subsidiary, Justice Grown, and is focused on protecting shareholder capital amid ongoing litigation [12][30] - The company renewed its senior secured credit facility with a lead commitment from an FDIC insured bank, with a maturity date of April 29, 2028 [14] Q&A Session Summary Question: Can you unpack the decline in interest income from Q4 to Q1? - The decline was primarily due to lower income from a subsidiary and the absence of dividends from the TRS in Q1 [16][17] Question: How should we think about distributable earnings progression for the rest of the year? - Management indicated that they will be opportunistic in originations and will not set targets due to market volatility [19][20] Question: What can be assumed regarding inflows from the proceeds of the Georgia asset sale? - Management stated that they cannot provide guidance on timing or amounts due to the receiver's control over the process [21][23] Question: Is there an opportunity for private lenders in Pennsylvania's potential state-run framework? - Management noted that the Senate has rejected the state-run model, making it unlikely to be an opportunity for the company [34][35] Question: Are borrowers feeling the impact of tariffs on their costs? - Management indicated that the cannabis industry is likely to see minimal impact from tariffs, as many materials are sourced domestically [40][42]

Financial Data and Key Metrics Changes - For Q1 2025, the company generated distributable earnings of $0.21 per basic weighted average share, with net interest income of $4,500,000 and GAAP net income of $4,100,000 or $0.18 per basic weighted average share [10][15] - The weighted average portfolio yield to maturity was approximately 18% as of both March 31, 2025, and May 1, 2025 [16] - The CECL reserve was $29,900,000, approximately 9.75% of loans at carrying value, with total unrealized losses of $20,400,000 for loans held at fair value [16] Business Line Data and Key Metrics Changes - The active pipeline as of May 1, 2025, had $287,000,000 in deals, with a focus on sourcing deals from operators with a successful track record [7] - The company is currently managing 18 loans with a total principal outstanding of $372,500,000 [15] Market Data and Key Metrics Changes - The cannabis industry is experiencing a supply and demand imbalance for capital, with demand outpacing limited supply due to refinancing activity and increased M&A [6] - Many capital market participants remain on the sidelines due to a lack of clarity around federal reform, impacting the availability of capital in the industry [6] Company Strategy and Development Direction - The company aims to protect principal in its investments and is focused on selectively providing construction financing to operators with existing operations in other states [7] - The management is committed to supporting strong operators in attractive limited license states and diversifying the portfolio [11] Management's Comments on Operating Environment and Future Outlook - Management noted that earnings will be impacted by the underperformance of some legacy loans, but significant progress has been made in reducing exposure to underperforming credits [10] - The company is being opportunistic in its originations, focusing on high-quality borrowers amid market volatility [22] Other Important Information - The company renewed its senior secured credit facility with a lead commitment from an FDIC insured bank, with a maturity date of April 29, 2028 [16] - The board is expected to declare a dividend on or about June 15, with a policy of distributing 85% to 100% of earnings over the year [23] Q&A Session Summary Question: What caused the decline in interest income from Q4 to Q1? - The decline was attributed to lower income from a subsidiary of a private company and the absence of dividends from the TRS in Q1 [20][21] Question: How should investors think about progression for distributable earnings? - Management indicated that they will be opportunistic in originations and will not set targets due to market volatility [22][23] Question: What can be assumed regarding inflows from the proceeds of the Georgia asset? - Management stated that they cannot provide guidance on timing or amounts as it is uncertain and out of their control [24][26] Question: Can you provide updates on the situation with Justice Grown? - Management refrained from commenting further due to pending litigation and advised to refer to the 10-Q for details [32][34] Question: Is there an opportunity for private lenders in Pennsylvania's potential state-run framework? - Management noted that the Senate rejected the state-run model proposal, making it unlikely to be an opportunity for the company [36] Question: What is the expected yield on new originations? - Yields have generally remained consistent, with a focus on moving up the quality curve in lending [49]

Upstart (UPST) Update / Briefing May 14, 2025 09:00 AM ET Speaker0 Please welcome VP of Investor Relations, Sonia Banerjee. Speaker1 Good morning. Good morning. Can you hear me? Just making sure. Welcome to Upstart AI Day. My name is Sonia. I'm the Head of Investor Relations for Upstart. And on behalf of the entire team, we are so glad that you were able to make it today. If you're here in the room with us or joining us on the webcast, we appreciate your engagement and your time. We have a fantastic morning ...

Financial Data and Key Metrics Changes - For Q1 2025, total investment income was $22.5 million with a portfolio yield of 14.4%, compared to $29.3 million and 15.4% in the prior year period [26] - Net investment income for Q1 2025 was $10.7 million or $0.27 per share, down from $15.5 million or $0.41 per share in Q1 2024 [27] - The company's net increase in net assets resulting from operations for Q1 2025 was $12.7 million or $0.32 per share, compared to $8 million or $0.21 per share in Q1 2024 [28] Business Line Data and Key Metrics Changes - In Q1 2025, the company signed $315 million in term sheets with venture growth stage companies, up from $130 million in Q1 2024 [14] - Funded investments in Q1 2025 totaled $28 million, compared to $14 million in Q1 2024 [15] - The weighted average annualized portfolio yield for funded investments was 13.3%, slightly down from 13.5% in Q4 2024 [15] Market Data and Key Metrics Changes - The company noted a significant increase in demand for venture lending driven by a backlog of high-quality companies in the IPO queue and companies seeking financing for growth and acquisitions [8] - The company has observed no material impact from tariffs on its AI, software, B2B, and enterprise-focused portfolio companies [17] Company Strategy and Development Direction - The company is focused on portfolio diversification and investment sector rotation, particularly in high-potential sectors such as AI, software solutions, and cybersecurity [11] - The management aims to increase net investment income through debt investment portfolio growth and increasing balance sheet leverage [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving market conditions in the venture capital market, with increased fundraising activity and positive outlook for capital markets [21] - The company is monitoring the impact of geopolitical uncertainties and tariffs on its portfolio, but has not seen immediate effects [20][36] Other Important Information - The company ended Q1 2025 with total liquidity of $337 million, consisting of cash and available capacity under its revolving credit facility [25] - The Board declared a regular quarterly dividend of $0.30 per share, with an estimated spillover income of $42.5 million at the end of the period [29] Q&A Session Summary Question: Can you share your fundings outlook for the second quarter and beyond? - Management confirmed that the outlook for Q2 remains unchanged at $25 million to $50 million in fundings, expecting to make up for the shortfall from Q1 [33] Question: Can you speak to your views on credit today and the outlook going forward? - Management noted improved market conditions and increased fundraising activity, but acknowledged the challenges posed by geopolitical uncertainty [34][36] Question: What is your willingness to do share repurchase versus making new investments? - Management indicated a preference for growing the portfolio with debt capital rather than repurchasing shares, aiming to achieve long-term objectives [39] Question: What is the expected repayment and prepayment activity in the second quarter? - Management expects one to two prepayments per quarter, primarily from older vintages, which should have a low impact on net investment income [42] Question: Can you walk me through the dynamic of your debt investments at their floors? - Management explained that 35% of the portfolio is at the floor, which means they will not see a reduction in yield as rates go down [65][68]

Artificial intelligence (AI) lending stock Upstart Holdings Inc (NASDAQ:UPST) was last seen down 11.9% at $45.27, brushing off upbeat first-quarter results as well as a strong full-year forecast, after the company's second-quarter outlook spooked investors. No fewer than four analysts slashed their price targets after the event, including Morgan Stanley all the way to $50 from $70. Options traders are blasting Upstart stock in response. So far today, 62,000 calls and 47,000 puts have been exchanged , which ...