OppFi (NYSE:OPFI) Q4 2025 Earnings call March 11, 2026 09:00 AM ET Company Participants Good morning, and welcome to OppFi's Q4 and fiscal year 2025 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 host, Mike Gallentine, Hea ...

Financial Data and Key Metrics Changes - Total revenue for 2025 increased by 13.5% year-over-year, reaching $597 million, while adjusted net income rose by 69% year-over-year to $140 million [3][12][14] - In Q4 2025, revenues were $159 million, a 17% increase compared to Q4 2024, with adjusted net income reaching a record $26 million, up 27% from the previous year [8][10] - GAAP net income for the full year increased by 175% to $146 million, driven by higher revenues and lower expenses [11][13] Business Line Data and Key Metrics Changes - Originations for 2025 totaled $899 million, a 12% increase compared to 2024, contributing to a 16% increase in ending receivables to $493 million [12][14] - In Q4, originations increased by 8% to $230 million compared to the prior year quarter, with ending receivables growing by 16% [8][10] Market Data and Key Metrics Changes - The auto-approval rate in Q4 was 79%, facilitating more customer approvals without human interaction [3] - The company maintained a stable revenue yield of 130% in Q4, reflecting effective risk management [8] Company Strategy and Development Direction - The company plans to release Model 6.1 in the first half of 2026, which is expected to enhance originations and reduce risk through better risk segmentation [4] - The development of Lola, a new origination and servicing system, is underway, with a planned migration in Q3 2026, aimed at leveraging AI tools for improved efficiency [5][6] - A new line of credit product is expected to launch in summer 2026, designed to provide fair and transparent credit access [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit revenue and earnings growth in 2026, supported by improving vintage metrics and strong recovery indicators [4][19] - The impact of inflation and rising gas prices on customer repayment ability is being closely monitored, with management prepared to adjust strategies as needed [25][52] Other Important Information - The company ended Q4 with $93 million in cash equivalents and restricted cash, alongside $321 million in total debt [11] - Total funding capacity stood at $618 million, including $204 million in unused debt capacity [12] Q&A Session Summary Question: Impact of geopolitical events on loss emergence - Management indicated that early indicators of repayment issues can be observed within 28 to 42 days of loan origination, with a focus on monitoring consumer sentiment [17][18] Question: Adjustments in response to rising gas prices - Management acknowledged that inflation affects discretionary income and repayment ability, and they are prepared to target lower-risk customers and adjust pricing if necessary [25][51] Question: Learnings from higher losses in summer vintages - Management noted that no specific type of loan or risk tier stood out as a cause for higher losses, but consumer sentiment is being monitored as an early indicator [36][38] Question: Changes in model development processes - Management confirmed that the advent of AI tools has significantly reduced the cycle times for developing new models, allowing for faster and more predictive model rollouts [54][56]