Oportun 3Q 2025 Earnings Presentation November 4, 2025 Forward-looking statements This presencation and the easomariy poral presentation contain forward Housing statements of histian nents other ther statements of isitericas fract contained in the succ statements as to future performance, results of cceation and financial position achiever of our stransept of our stransept sinci ites and qadest on regercines con experion conditions and julye continins cour de change cif rate cologic innsan le exceptations o ...

Financial Data and Key Metrics Changes - Capital generation was $272 million, up 29% year over year [4] - C&I adjusted earnings were $1.90 per share, up 51% [4] - Total revenue grew 9% to $1.6 billion, with interest income also increasing by 9% [18] - Managed receivables ended the quarter at $25.9 billion, up $1.6 billion or 6% from a year ago [16] - Third quarter GAAP net income was $199 million, or $1.67 per diluted share, up 27% from the previous year [15] Business Line Data and Key Metrics Changes - Originations increased by 5% year over year, totaling $3.9 billion [16] - Credit card receivables reached $834 million, with over 1 million credit card customers [9] - Auto finance receivables were over $2.7 billion, up about $100 million from the last quarter [10] - Consumer loan yield was 22.6%, flat from the second quarter but up 49 basis points year over year [17] Market Data and Key Metrics Changes - 30-plus day delinquency rate was 5.41%, down 16 basis points year over year [5] - C&I net charge-offs were 7%, down 51 basis points compared to the previous year [5] - Consumer loan net charge-offs were 6.7%, down 66 basis points year over year [23] Company Strategy and Development Direction - The company is focused on innovation across products, digital experience, and data science to drive growth [31] - A conservative underwriting posture is maintained while exploring growth opportunities in high credit quality segments [17][38] - The company plans to increase its dividend by $0.01 quarterly, reflecting confidence in business strength [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the consumer and the stability of the non-prime market [32][34] - There is a cautious optimism regarding macroeconomic factors, with expectations for continued year-over-year improvement in credit metrics [36] - The company anticipates capital generation in 2025 will significantly exceed 2024, reflecting strong business momentum [30] Other Important Information - The company has been recognized as one of America's top 100 most loved workplaces for 2025 [12] - A $1 billion share repurchase program was approved, indicating confidence in the company's capital generation [14] - The company has expanded its whole loan sale forward flow agreement, enhancing capital and funding flexibility [27] Q&A Session Summary Question: What is the current health of the non-prime consumer? - Management noted that they are not seeing negative trends in auto credit and that consumers are holding up well, with stable disposable income [32][33] Question: Can you provide insights on the direction of delinquencies? - Management expects continued year-on-year improvement in consumer loan net charge-offs and believes delinquencies are in line with expectations [36] Question: What is the company's stance on underwriting standards? - The company maintains a conservative underwriting posture and is focused on booking loans that meet risk-adjusted return thresholds [38] Question: How is the company managing funding costs? - Funding costs have come in lower than expected due to successful bond issuances and proactive debt management [41][42] Question: What are the company's plans regarding share buybacks? - The company anticipates increasing buybacks as excess capital generation grows, with a $1 billion program approved through 2028 [44] Question: How does the competitive environment look for originations? - The company sees a constructive competitive environment, with originations up 10% year-to-date, and pricing has remained stable [48][49]

Financial Performance - Originations reached $3.9 billion, a 5% year-over-year increase[13] - Capital Generation increased to $272 million, up 29% year-over-year[14] - Managed Receivables totaled $25.9 billion, reflecting a 6% year-over-year growth[15] - Consumer & Insurance (C&I) Adjusted Diluted EPS increased significantly to $1.90, a 51% year-over-year increase[17] Portfolio Quality - C&I Net Charge-offs decreased by 51 basis points year-over-year to 70%[17] - Consumer Loan Net Charge-offs decreased by 66 basis points year-over-year to 67%[17] - The company's 30+ delinquency rate was 541%, down 16bps year-over-year[47,50] New Products & Receivables - Credit Card Receivables grew to $834 million[16] - Auto Managed Receivables reached $2.7 billion[15] - BrightWay credit card rollout saw 11% quarter-over-quarter receivables growth[38] Capital Allocation - The company declared a dividend of $105 per share, an increase from $104[17] - The dividend yield is approximately 7% based on the closing share price on October 29, 2025[17] - The board authorized a $1 billion share repurchase program through December 31, 2028[17]

Core Insights - Affirm is expanding its partnership with New York Life Insurance, indicating a trend where traditional financial institutions are increasingly engaging with fintech-driven consumer lending [1][2] - Under the new agreement, New York Life will purchase up to $750 million worth of Affirm's installment loans through 2026, which will support approximately $1.75 billion in annual loan volume for Affirm [1] - The partnership builds on a relationship initiated in 2023, where New York Life began investing in Affirm's asset-backed securities, contributing nearly $2 billion to Affirm's collateral pools to date [2] - This collaboration reflects a broader trend of insurers and private-credit investors entering consumer finance, driven by the attractiveness of these assets amid rising interest rates [2]

Financial Performance - OneMain Holdings reported pretax income of $263 million and net income of $199 million for Q3 2025, an increase from $207 million and $157 million in the same quarter last year [1] - Earnings per diluted share rose to $1.67 in Q3 2025, compared to $1.31 in the prior year quarter [1] - Total revenue for Q3 2025 was $1.6 billion, up 9% from $1.5 billion in the prior year quarter, driven by receivable growth and improved portfolio yield [8] Dividend and Share Repurchase - The company declared a quarterly dividend of $1.05 per share, a 1% increase from the previous dividend of $1.04 [2] - OneMain repurchased approximately 540 thousand shares of common stock for $32 million during the quarter and has approved a $1.0 billion share repurchase program expiring on December 31, 2028 [3] Consumer and Insurance Segment - The Consumer and Insurance segment reported adjusted pretax income of $303 million and adjusted net income of $227 million for Q3 2025, compared to $202 million and $151 million in the prior year quarter [5] - Adjusted earnings per diluted share for this segment were $1.90, up from $1.26 in the prior year quarter [5] Capital Generation and Receivables - Capital generation for Q3 2025 was $272 million, an increase from $211 million in the prior year quarter, driven by receivable growth and improved credit performance [6] - Managed receivables reached $25.9 billion as of September 30, 2025, a 6% increase from $24.3 billion a year earlier [7] Interest and Expenses - Interest income for Q3 2025 was $1.4 billion, up 9% from $1.3 billion in the prior year quarter, while interest expense increased to $320 million, a 7% rise from $299 million [8][9] - Operating expenses for Q3 2025 were $427 million, reflecting an 8% increase from $396 million in the prior year quarter [10] Delinquency and Loss Ratios - The 30+ days delinquency ratio for consumer loans was 5.55% as of September 30, 2025, compared to 5.63% a year earlier, indicating improved credit trends [10] - Net charge-offs were reported at 6.67%, down from 7.33% in the prior year [10] Funding and Liquidity - As of September 30, 2025, OneMain had principal debt balances of $22.6 billion, with 54% secured, and $658 million in cash and cash equivalents [11] - The company has significant liquidity resources, including $1.1 billion of undrawn committed capacity from an unsecured corporate revolver and $10.9 billion of unencumbered receivables [12]

Core Insights - The company has strengthened its executive team with the appointment of Hal Koury as Chief Financial Officer and Rebecca Wooters as Chief Growth Officer, both bringing extensive experience in financial services and digital transformation [1][5][51] - The company reported strong financial results for the quarter, with revenue increasing by 9% year-over-year to $1.16 billion and adjusted EBITDA rising by 5.7% to $123.6 million [6][20] - Asima achieved its eighth consecutive quarter of GMV growth, up 11% year-over-year, while Bridget experienced significant growth with a 40% increase in revenue and a 27% rise in subscribers [6][17][31] Executive Appointments - Hal Koury, previously CFO at Goeasy, brings relevant experience in non-prime lending and retail banking [1] - Rebecca Wooters, former Chief Digital Officer at Signet Jewelers, has a track record of transforming businesses into digital omnichannel retailers [1][5] Financial Performance - Revenue for the quarter reached $1.16 billion, a 9% increase from the previous year, driven by growth in Asima and the addition of Bridget [20] - Adjusted EBITDA was $123.6 million, reflecting a 5.7% year-over-year increase, with an adjusted EBITDA margin of 10.6% [20] - Non-GAAP diluted EPS was $1, up 5.3% from the year-ago quarter [20] Segment Performance - Asima's GMV grew by 11% year-over-year, with a focus on adding new merchants and enhancing customer experience [31][32] - Bridget's revenue increased by 40% year-over-year, with a significant rise in active subscribers and a strong average revenue per user (ARPU) [35][37] - Rent-A-Center reported a revenue of $461 million, down 4.7% year-over-year, but showed improvement in same-store sales, which were down 3.6% [39][40] Market Dynamics - The consumer environment is characterized by economic uncertainty, impacting spending priorities and payment behavior [8][59] - The company anticipates that these conditions may lead to increased demand for low weekly payments for durable goods [9] - Asima's underwriting has tightened in response to macroeconomic pressures, which may impact GMV growth in the near term [10][47] Strategic Initiatives - Asima activated its 100,000th merchant location, enhancing its merchant portfolio and customer experience [22] - Bridget is testing new financial products and marketing strategies to drive subscriber growth and improve customer acquisition [25][66] - Rent-A-Center has implemented operational improvements and promotional strategies to enhance customer engagement and sales performance [27][29] Future Outlook - The company expects revenue for the full year to be in the range of $4.6 billion to $4.075 billion, with adjusted EBITDA projected between $500 million and $510 million [47][49] - Asima is projected to achieve mid-single-digit GMV growth in the fourth quarter, while Bridget is expected to see high single-digit revenue growth [48][49] - The company remains focused on leveraging digital transformation and AI to enhance customer experiences and operational efficiency [51][70]

Core Viewpoint - OneMain Holdings is considered a buyable company due to its 100-year history, transparent management, and a forward PE of 9, along with a 7% dividend yield [1] Group 1: Company Overview - OneMain Holdings has a long-standing history of 100 years, indicating stability and reliability [1] - The company is characterized by transparent management and reporting practices, which enhances investor confidence [1] - It trades at a forward price-to-earnings (PE) ratio of 9, suggesting a decent valuation compared to its earnings potential [1] - The company offers a 7% dividend, providing a stable income stream for investors [1] Group 2: Analyst Perspective - The analysis emphasizes the importance of value and growth trends, as well as the significance of corporate governance and accounting practices [1] - The analyst aims to provide insights that go beyond typical analyses, utilizing academic research and modeling secular trends [1]

Core Viewpoint - OneMain Holdings is considered a buyable company due to its 100-year history, transparent management, and a forward PE of 9, along with a 7% dividend yield [1] Group 1: Company Overview - OneMain Holdings has a long-standing history of 100 years, indicating stability and reliability in its operations [1] - The company is characterized by transparent management and reporting practices, which enhances investor confidence [1] Group 2: Financial Metrics - The forward price-to-earnings (PE) ratio is noted to be 9, which is considered tolerable and suggests decent valuation [1] - OneMain Holdings offers a dividend yield of 7%, providing a stable income stream for investors [1] Group 3: Analyst Perspective - The analysis emphasizes a focus on value, growth, secular trends, and accounting practices, indicating a comprehensive approach to evaluating investment opportunities [1]

Core Viewpoint - World Acceptance Corporation (WRLD) is assigned a 'Hold' rating, viewed as a compelling but high-risk turnaround case at a significant inflection point [1] Group 1: Investment Thesis - The forward bull argument for WRLD is based on two catalysts that could drive future performance [1]

Core Insights - Lufax Holdings has reported significant changes in its operational metrics and leadership, including a decrease in total loan balance and an increase in consumer finance loans [1][2][5][7][8] Financial Performance - As of September 30, 2025, Lufax's total loan balance was RMB 189.6 billion, a decrease of 11.0% compared to RMB 213.1 billion in the same period of 2024 [2][5] - The consumer finance loan balance increased to RMB 58.9 billion, reflecting a year-on-year growth of 26.7% [5] - New loans issued in Q3 2025 totaled RMB 56.9 billion, up 12.8% from RMB 50.5 billion in Q3 2024, with consumer finance loans contributing RMB 31.7 billion, a 20.1% increase from RMB 26.4 billion [7] Asset Quality - The proportion of overdue loans (30 days or more) reached 5.1% as of September 30, 2025, up from 4.6% on June 30, 2025 [7] - The default rate for unsecured loans was 5.1%, an increase from 4.4%, while the rate for mortgage loans was slightly lower at 5.1%, compared to 5.3% previously [7] Leadership Changes - Lufax announced the appointment of Cheng Jianbo as the new Chief Risk Officer, effective October 24, 2025, following the resignation of Lin Yunzhen [8] - Cheng Jianbo has extensive experience in risk management, having held key positions in various financial institutions, including JD Digital Technology [8]