Key Takeaways OppFi posted Q2 revenue growth of 12.8% and raised the 2025 revenue view to $578-$605M.Futu Holdings delivered a 69.7% revenue surge and a 1570 bps margin jump in 2Q25.Estimates indicate 2025 EPS growth of 49.5% for OppFi and 64.5% for Futu Holdings.Both OppFi Inc. (OPFI) and Futu Holdings Limited (FUTU) are eminent fintech players sailing through the market, leveraging advanced technologies. FUTU operates as an online brokerage and wealth management services provider, while OPFI serves the un ...

Financial Data and Key Metrics Changes - The company achieved record quarterly revenue of $142 million, representing a 13% year-over-year increase [13] - Adjusted net income increased by 59% to a record $39 million, up from $25 million in the previous year [14] - Adjusted earnings per share grew significantly to $0.45 from $0.29 year-over-year [14] - The net charge-off rate improved to 32% of revenue compared to 33% in the prior year [7] - Total expenses before interest expense declined to 39% of revenue from 45% in the same quarter last year [13] Business Line Data and Key Metrics Changes - Total net originations increased by 14% year-over-year [6] - The auto approval rate improved to 80% in Q2 2025, up from 76% in Q2 2024 [7] - Finance receivables increased by 13% to $438 million year-over-year [12] Market Data and Key Metrics Changes - The company noted a strong performance in the small business lending space, capitalizing on supply-demand imbalances [9] - The average loan size increased by approximately $100 year-over-year, reflecting a 10% increase [25][27] Company Strategy and Development Direction - The company plans to migrate to a new loan origination system named LOLA, designed to enhance customer experience and operational efficiencies [8] - The focus remains on becoming a leading tech-enabled digital finance platform collaborating with banks to offer financial products [10] - The company is exploring opportunities for investment and acquisitions to expand its product offerings in the alternative credit space [51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued healthy revenue momentum and profitable growth throughout 2025 [10] - The company is cautious about macroeconomic factors such as inflation and unemployment but remains optimistic about its growth trajectory [20][32] - Management indicated that they are closely monitoring consumer health and charge-off trends while maintaining a disciplined credit approach [32][34] Other Important Information - The company ended the quarter with $78 million in cash and cash equivalents, alongside $306 million in total debt [15] - Total funding capacity was reported at $633 million, including $219 million in unused debt capacity [15] Q&A Session Summary Question: Long-term margin structure and ROE expectations - Management indicated satisfaction with current performance and mentioned a target margin of around 20% as healthy [20][22] Question: Average loan size increase context - The average loan size has increased by about $100 year-over-year, with a focus on adjusting for inflation [25][27] Question: Macro trends and credit quality - Management remains cautious about macroeconomic indicators but has seen strong early data regarding repayment rates [32][44] Question: Marketing expenses and competitive factors - Marketing expenses have increased, but management is optimistic about the results from new initiatives [35][36] Question: Expectations for yields - Management expects yields to remain stable with slight increases due to risk-based pricing strategies [38] Question: LOLA initiative rollout and success metrics - Success will be measured by maintaining current performance levels while integrating new technologies [56] Question: Seasonal trends in guidance - Management expects typical seasonal trends for Q3 and Q4, with no extraordinary macro factors anticipated [61]