Summary of Oportun Financial Conference Call - September 18, 2025 Company Overview - **Company**: Oportun Financial (Ticker: OPRT) - **Industry**: Financial Services, focusing on personal loans and savings solutions - **Founded**: February 2005 - **Key Metrics**: - Over 7.7 million loans originated - More than $20.8 billion in credit extended - 1.3 million members helped to build credit histories - Revenue of approximately $1 billion in 2024 - Adjusted EBITDA of $105 million in 2024 - Adjusted EPS of $0.72 in 2024 [4][5][21] Core Products and Market Focus - **Product Offerings**: - Unsecured personal loans - Secured personal loans (secured by auto) - "Set and Save" savings product - **Target Market**: Low to moderate income individuals, particularly those with thin or no credit files, including both English and Spanish speakers [5][6][13] Financial Performance - **Q2 2025 Results**: - Total revenue: $234 million (down 6% year-over-year) - Net income: $6.9 million; diluted EPS: $0.14 - Adjusted net income: $15 million; adjusted EPS: $0.31 (up from $0.08 year-over-year) - Originations: $481 million (up 11% year-over-year) [21][22][25] - **Credit Performance**: - Annualized net charge-off rate for Q2: 11.6% for front book loans - Back book charge-off rate: 11% [19][20] Strategic Initiatives - **Growth Strategy**: - Focus on expanding secured personal loans, which grew 58% year-over-year to $195 million - Aim to increase secured loans to 50% of the total loan portfolio over time [7][44][46] - **Underwriting Practices**: - Centralized and automated underwriting using AI and machine learning - 100% income verification for borrowers - Enhanced decisioning with transaction data from Plaid [10][11][17] Market Conditions and Resilience - **Economic Outlook**: - Borrowers are resilient despite economic challenges; focus on blue-collar job stability - Delinquencies have decreased year-over-year for six consecutive quarters [34][37] - **Impact of Immigration Policies**: - Business performance remains stable; minimal impact from immigration enforcement on loan performance [38][39] Savings Product Insights - **Set and Save Product**: - Rated highly by Bankrate and Forbes - Average savings of $1,800 annually per member - Revenue model includes a $5 monthly subscription fee and earnings from the Fed funds rate [13][42] Capital Management - **Debt Reduction**: - Debt-to-equity ratio improved from 8.7x to 7.3x - $105 million in operating cash flow used to pay down debt [26][53] - **Securitization**: - Issued $538 million in ABS notes at a 5.29% yield, lower than previous transactions - Strong investor demand and performance in securitization [27][55] Future Outlook - **Guidance for 2025**: - Loan originations growth expected in the 10% range - Full year adjusted EPS guidance increased to $1.20 - $1.40, representing 67% to 94% growth year-over-year [25][29] - **Long-term Goals**: - Continue to optimize credit performance and reduce expenses - Target adjusted ROE of 20% to 28% over time [28][52] Conclusion - **Management Confidence**: The management expresses confidence in the long-term value creation for shareholders and the ongoing recovery of the business, despite recent stock performance [57]

Core Insights - Inverite Insights Inc. has partnered with Xcash Financial Services to enhance credit decisioning through its Open Banking Ready AI Platform [1][4] - Xcash will utilize Inverite's technology to provide faster, data-driven credit decisions for over 50,000 Canadian customers [2][3] - The partnership aims to improve the efficiency and accuracy of lending services while maintaining responsible lending practices [4] Company Overview - Inverite Insights Inc. is an AI-driven software provider based in Vancouver, specializing in real-time financial data with a database of over 28 billion financial data points from more than seven million unique Canadian consumers [10] - Xcash Financial Services, founded in 2008 and based in Toronto, offers quick-access financial products including payday loans up to $1,500 and personal loans up to $5,000 [3][8] Financial Activities - Inverite plans to issue up to 4.67 million units or common shares to settle up to $700,000 in accounts payable and loans, alongside a non-brokered private placement of up to 5.33 million units at $0.15 per unit for gross proceeds of up to $800,000 [5] - Each unit consists of a common share and one-half warrant, with a whole warrant exercisable at $0.20 for two years [5]