OppFi (OPFI) FY Conference August 12, 2025 03:45 PM ET Speaker0Hello, everybody, and thank you for attending the OpFund Investor Presentation at the Oppenheimer Conference this afternoon. Let me direct you to the fun slide, the Slide two, the disclaimer, the forward looking statements, cautionary language slide that we will be using in our presentation is we have some non GAAP measures that we present, and we do provide a full reconciliation for all non GAAP measures at the end of the presentation. This pre ...

OppFi (OPFI) Q2 2025 Earnings Call August 06, 2025 09:00 AM ET Speaker0morning, and welcome to OpFife's Second Quarter twenty twenty five Earnings Conference Call. All participants are in a listen only mode. As a reminder, this conference call is being recorded. Following management's presentation, a question and answer session will be held. For those listening by dial in, you will be prompted to enter the queue after the prepared remarks.I am pleased to introduce your Mike Gallantine, Head of Investor Rela ...

OppFi (OPFI) Q1 2025 Earnings Call May 07, 2025 09:00 AM ET Company Participants Mike Gallentine - Head of IRTodd Schwartz - Founder, Executive Chairman & CEOPamela Johnson - CFOZachary Oster - Equity Research AssociateDave Storms - Director of Equity Research Conference Call Participants Scott Buck - Managing Director & Senior Technology AnalystLuke Horton - VP - Senior Equity Research Analyst Operator Please standby, your program is about to begin. If you need assistance on today's conference, Good mornin ...

Financial Data and Key Metrics Changes - The first quarter of 2025 was a record quarter for the company, achieving record quarterly revenue, adjusted net income, and operating margin [5][11] - Total revenue increased to $140 million, up 10% year over year, while adjusted net income surged 285% to a record $34 million, up from $9 million [13][15] - Adjusted earnings per share grew significantly to $0.38 from $0.10 last year [15] - The annualized net charge off rate improved to 35% from 48%, and total expenses before interest expense declined to $38 million, an 18% decrease [8][15] Business Line Data and Key Metrics Changes - Net originations grew 16% to $189 million, with retained net originations increasing 11% to $169 million [13] - The auto approval rate improved to 79% in Q1 2025, up from 73% in Q1 2024, contributing to a 44% increase in net revenue to $91 million [8][14] - The company’s investment in Biddy continued to drive profitability and cash flow, indicating strong performance in the small business financing sector [10] Market Data and Key Metrics Changes - The company noted a significant imbalance between supply and demand for working capital among small businesses, highlighting growth opportunities in this market [10] - The credit quality of the customer base improved, resulting in a 15% decrease in gross charge offs to $59 million and a 25% increase in recoveries to $11 million [13] Company Strategy and Development Direction - The company is focused on becoming a leading tech-enabled digital finance platform, collaborating with banks to offer financial products and services to everyday Americans [11] - The strategy includes exploring new direct response initiatives and expanding marketing channel partners to sustain growth [6] - The company is actively looking for inorganic growth opportunities, particularly in the small business and consumer POS spaces [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong revenue momentum and profitable growth throughout 2025 and into 2026 [11] - The company anticipates that operational improvements and investments will continue to generate strong results for the foreseeable future [12] - Management noted stability in consumer behavior despite macroeconomic uncertainties, with no significant changes observed in customer patterns [42] Other Important Information - The company paid off its corporate debt in Q1 2025 and maintained a strong balance sheet with $91 million in cash and cash equivalents [6][15] - A special dividend of $21.7 million was paid, reflecting the company's financial strength and commitment to rewarding shareholders [7][25] Q&A Session Summary Question: What changed regarding the adjusted net income beat from the previous guidance? - Management indicated that operational efficiencies and strong repayment rates contributed to better-than-expected results [20][22] Question: Are there any hesitations in investing in small businesses due to macro uncertainty? - Management confirmed that they are actively assessing underwriting and believe Biddy's short-duration products position them well to navigate uncertainties [23][24] Question: What is the thought process behind moving towards regular dividends? - Management emphasized the importance of preserving flexibility for capital deployment while rewarding shareholders [26][27] Question: What are the criteria for potential inorganic opportunities? - Management is focused on the small business space and consumer POS, looking for synergies with current offerings [28] Question: How is the yield and credit box performing amid macro trends? - Management stated they have maintained discipline in their credit box, leading to improved yields due to better repayment rates [34] Question: Are there plans for share repurchases? - Management is considering share repurchases but is weighing it against other attractive capital options [36] Question: What are the current customer patterns in light of macro events? - Management reported stable customer behavior and no significant changes in borrowing activities [41][42] Question: How many more levers are available for cost discipline? - Management highlighted continuous improvement in operational efficiency as a core focus, with ongoing efforts to enhance auto approval rates [45][46] Question: What is the outlook for Q2 and the remainder of the year? - Management expressed optimism about growth momentum and the execution of their larger vision for the business [50][52]