Key Takeaways DAVE delivered 63% y/y revenue growth in 3Q25, driven by a 49% jump in ExtraCash originations.OPFI grew 3Q25 revenues 13.5% and lifted adjusted net income 41.4%, supported by disciplined expense control.Dave cut 28-day delinquency rates to about 2% in 3Q25, reflecting gains from its CashAI v5.5 rollout.Both OppFi Inc. (OPFI) and Dave (DAVE) operate in the fintech space, addressing customer needs surrounding digital lending. DAVE’s primary service is to offer small, interest-free cash advances ...

Key Takeaways OPFI Model 6 boosted auto approvals to 79.1%, cut expense ratios by 500 bps and drove net income by 136.9%.GDOT's B2B segment grew 30% in 3Q25, fueled by the Arc platform, major partnerships and faster onboarding.EVTC posted 8% 3Q25 revenue growth on Latin America expansion, acquisitions and a stronger liquidity profile.Investing in undervalued stocks with robust fundamentals is a sound way to create long-term wealth. Buying a stock that trades below its intrinsic value provides a margin of sa ...

Core Insights - OppFi Inc. (OPFI) shares have increased by 32.5% year-to-date, outperforming its industry which declined by 11.6% and the Zacks S&P 500 Composite which grew by 19.8% [1][7] - The company has consistently raised its earnings guidance for 2025, indicating strong investor confidence in its profitability outlook [9][10] Performance Comparison - Over the past month, OPFI gained 2.2%, surpassing Cantaloupe's 0.2% and Fidelity National Information Services' 1.5% [4] - Year-to-date, OPFI has outperformed Cantaloupe's 11.2% rise and Fidelity National Information Services' 17.4% decline [1][4] Operational Efficiency - OPFI improved its auto approval rate to 79.1% in Q3 2025 from 76.8% in the previous year, contributing to a 500-basis-point decline in total expenses as a percentage of revenues [5] - The company experienced a 13.5% year-over-year increase in revenue, leading to a 136.9% increase in net income [5][7] - Model 6 also reduced net charge-offs as a percentage of total revenues by 430 basis points year-over-year [6] Financial Guidance - For 2025, OPFI expects adjusted net income to range from $106 million to $142 million across the first three quarters, with adjusted EPS projected between $1.18 and $1.60 [9][10] - The Zacks Consensus Estimate for OPFI's 2025 revenues is $598 million, reflecting a 13.6% year-over-year growth [15] Valuation Metrics - OPFI is currently priced at 5.99 times forward 12-month earnings per share, significantly below the industry average of 20.1 times [11] - The trailing 12-month EV-to-EBITDA ratio for OPFI is 5.03 times, compared to the industry average of 10.94 times, indicating undervaluation [11] Analyst Confidence - Over the past 60 days, EPS estimates for both 2025 and 2026 have been revised upward, with the 2025 earnings estimate rising by 10.6% [16] - This upward revision trend highlights strong analyst confidence in OPFI's financial performance [16] Investment Recommendation - Given the operational improvements, consistent earnings guidance increases, and undervaluation relative to the industry, OPFI is recommended as a strong buy for investors seeking long-term capital gains [17][18]

Core Insights - OppFi's (OPFI) third-quarter 2025 performance showcases operational efficiency, driven by technology and disciplined cost management, resulting in improved profitability [1] - The company achieved a 13.5% year-over-year revenue growth, indicating sustained customer demand [1][8] Financial Performance - Total expenses saw a marginal increase, but expenses as a percentage of revenues decreased by 500 basis points from the previous year [2] - The implementation of Model 6 and LOLA led to a 230 basis point increase in auto-approval rates, reaching 79.1%, which reduced reliance on human underwriters [2] - Adjusted net income surged by 41.4% year-over-year in Q3 2025, with margins expanding by 500 basis points [3] - Over the nine months ending September 30, adjusted net income increased by 82.7%, translating to a 1,000 basis point margin expansion [3] Operational Efficiency - The disparity between revenue growth and adjusted net income growth highlights operational efficiency, crucial for scaling the business and ensuring long-term profitability [4] - The company's reliance on technology optimizes its cost structure, creating a buffer against credit default risk [5] Guidance and Valuation - Management revised the adjusted net income guidance for the year to $137-$142 million, reflecting confidence in operational performance [5] - OppFi's stock has increased by 27.4% over the past year, outperforming the industry average decline of 12.2% [6] - The stock trades at a forward price-to-earnings ratio of 5.77, significantly lower than the industry average of 20.16 [10] - OppFi holds a Value Score of A, while its peers Corpay and Cantaloupe have scores of B and C, respectively [13]

Core Insights - OppFi (OPFI) raised its adjusted earnings per share (EPS) guidance for 2025 to $1.54-$1.60, up from $1.39-$1.44, following a strong quarterly performance with an adjusted EPS of 46 cents, reflecting a 39.1% year-over-year increase [2][8] Financial Performance - The company experienced a 13.5% year-over-year increase in revenue, driven by the predictive capabilities of Model 6, which improved loan management and boosted originations and receivables [3][8] - Adjusted net income rose by 41.4% compared to the same quarter last year, supported by effective expense management [3] Credit Risk Management - OPFI achieved a significant reduction in credit risk, with net charge-offs declining by 430 basis points or 11.2% year-over-year as a percentage of total revenues [4] - The company's future performance hinges on its ability to scale sustainably while leveraging its credit risk mitigation technology [4][5] Future Outlook - The management plans to roll out Model 6.1 in Q4 2025, aimed at enhancing risk detection and increasing volume growth [5] - The absence of major macroeconomic challenges is expected to facilitate the achievement of the new EPS guidance [5] Stock Performance and Valuation - OPFI's stock has increased by 28.4% year-to-date, outperforming competitors like Corpay (CPAY) and Global Payments (GPN), which have seen declines of 17.5% and 33.2%, respectively [6][8] - The company trades at a forward price-to-earnings ratio of 5.82, significantly lower than the industry average of 21.13 [10] Earnings Estimates - The Zacks Consensus Estimate for OppFi's earnings for 2025 has increased by 10.6% over the past 30 days [12]

Company Overview - OppFi Inc. (NYSE: OPFI) specializes in providing high-interest loans through partnerships with banks, utilizing a technological tool known as Model 6 to automate the loan process [1] Business Model - The primary activity of the company involves offering loans, which are facilitated through its banking partnerships, indicating a reliance on technology to streamline operations [1]

Core Insights - OppFi's net charge-off rate has significantly improved, indicating better credit quality and risk management strategies [1][2][5] - The company's adjusted net income has surged, reflecting the positive impact of reduced charge-offs on profitability [5][6] Performance Metrics - In Q1 2025, OppFi reported a net charge-off rate of 35%, a decrease of 700 basis points from the previous quarter and 1300 basis points year-over-year [2][9] - Adjusted net income reached $33.8 million, marking a 285.1% increase year-over-year [5][9] Risk Management Strategies - The implementation of Model 6 has enhanced OppFi's ability to identify long-term credit risks and target higher-quality borrowers [3][9] - Effective loan recovery efforts have contributed to minimizing losses on defaulted loans, further reducing net charge-offs [4][9] Market Position - OppFi's stock has increased by 252.9% over the past year, outperforming competitors and the industry average [7][9] - The company trades at a forward price-to-earnings ratio of 9.32, significantly lower than the industry average of 22.58 [11] Future Outlook - The Zacks Consensus Estimate for OppFi's earnings for 2025 has risen by 15% over the last 60 days, indicating positive market sentiment [13] - OppFi holds a Zacks Rank 1 (Strong Buy), reflecting strong investor confidence [15]