Findell Capital Provides Facts in Response to Oportun's Misleading Narrative

Rhea-AI Summary

Findell Capital Partners, a 7.4% stakeholder in Oportun Financial (OPRT), issued a response letter challenging Oportun's recent statements about its operational improvements. Findell disputes management's claims about proactive cost-cutting, highlighting that operating expenses quadrupled from $162M in 2016 to over $600M in 2022. The firm criticizes Oportun's initial $38M cost reduction plan as insufficient, noting they had advocated for at least $150M in cuts. Findell attributes recent operational improvements, including a 61% reduction in OpEx per loan, to their advocacy and their identified director appointments (Scott Parker and Richard Tambor). The activist investor is now seeking to elect Warren Wilcox to the board at the July 18, 2025 Annual Meeting, aiming to strengthen independent oversight and reduce control by long-tenured directors who have overseen a 55-72% decline in shareholder value.

Positive

• Findell Capital successfully advocated for significant cost reductions, leading to a 61% improvement in OpEx per loan
• Previously appointed directors (Parker and Tambor) have demonstrated positive impact with total stockholder returns of +206% and +149% respectively
• Findell owns 7.4% stake as a top two stockholder, showing significant investment commitment
• New board nominee Warren Wilcox brings valuable consumer finance and lending industry expertise

Negative

• Company's operating expenses quadrupled from $162M in 2016 to over $600M in 2022
• Management's slow response to cost-cutting needs led to 42% share dilution
• Long-tenured directors have overseen significant value destruction with -55% to -72% stockholder returns
• Company nearly faced bankruptcy due to management's decisions and insufficient cost controls

Insights

Corporate Governance Analyst

Findell Capital's activist campaign highlights leadership failures at Oportun while seeking board changes to improve performance and governance.

Findell Capital, a 7.4% stakeholder in Oportun Financial, has issued a shareholder letter criticizing the company's leadership and advocating for board changes ahead of the July 18 annual meeting. The activist investor is pushing to elect Warren Wilcox, described as a "consumer finance and lending industry veteran," to strengthen independent oversight and challenge what Findell characterizes as an entrenched board.

The letter directly challenges Oportun's narrative about its cost-cutting initiatives, claiming the company's improvements in operating expenses per loan were driven by Findell's advocacy and its previously nominated directors (Scott Parker and Richard Tambor) rather than management's initiatives. Findell cites CEO Raul Vazquez's November 2022 statement that the "organization is right sized today" despite what Findell describes as bloated operating expenditures that had quadrupled from $162 million in 2016 to over $600 million in 2022.

Particularly notable is Findell's assertion that Oportun was "on the verge of bankruptcy" and that management's "slow and insufficient cost cuts" resulted in 42% shareholder dilution from Q1 2023 to present. The letter presents a stark contrast in total shareholder returns between long-tenured directors (all showing -55% or worse) versus newer directors (showing returns from +99% to +206%).

This proxy contest represents a critical juncture for Oportun's governance structure. Findell's criticism centers on what it views as leadership failures in capital allocation, cost management, and strategic focus. The activist's campaign highlights the tension between established leadership and shareholders dissatisfied with performance, with Findell explicitly stating that the company's core lending business has potential but requires stronger oversight and industry expertise at the board level to reach it.

Highlights that the Improvement in the Company's OpEx per Loan Was Driven by Findell's Advocacy and its Identified Director Appointments – Not by Management or the Current Board

Reiterates its Belief That Additional Independence and Consumer Finance Industry Expertise Is Urgently Needed in the Boardroom to Achieve Oportun's Full Potential

NEW YORK, June 13, 2025 /PRNewswire/ -- Findell Capital Partners, LP today issued the below letter to its fellow stockholders of Oportun Financial Corporation (NADSAQ: OPRT) ("Oportun" or the "Company") to address the misleading statements included in Oportun's recent materials.

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Fellow Stockholders,

Findell Capital Partners, LP (together with its affiliates, "Findell," "we" or "us") is the beneficial owner of approximately 7.4% of the outstanding common shares of Oportun Financial Corporation ("Oportun" or the "Company"), making us a top two stockholder. Given our multi-year investment in the Company and our involvement in the successful addition of independent lending experts Scott Parker and Richard Tambor to the Board of Directors (the "Board") in 2024, we are intimately familiar with the operational and governance issues that are preventing Oportun from achieving its full potential.

At the 2025 Annual Meeting of Stockholders (the "Annual Meeting") on July 18, we are seeking to elect Warren Wilcox to the Board to strengthen independent oversight of management and ensure the Board is no longer controlled by long-tenured directors resistant to change. Mr. Wilcox is a consumer finance and lending industry veteran who has no ties to Findell and whose appointment would, we believe, empower the Board to effectively oversee the business after years of what we can only describe as value-destructive acquisitions, slow operational improvements and entrenchment maneuvers.

Recent communications from Oportun, including the June 12^th letter from outgoing Lead Independent Director Neil Williams, apparently attempt to rewrite the Company's history. We want to correct what we see as clearly false and misleading statements made by Oportun so you can make an informed decision at the Annual Meeting:

OPORTUN'S CLAIM	THE FACTS
Claiming that Oportun was proactive in right-sizing its cost structure beginning in mid-2022.	•  This assertion directly contradicts management's own statements and actions. •  Consider CEO Raul Vazquez's remarks on a November 2022 conference call: "So, we feel that the organization is right sized today… So, we actually think that our posture on expenses is very sustainable." •  In FY 2022, Oportun's operating expenditures were more than $600mm – having quadrupled from $162mm in 2016. In 2023, the company was generating fewer loan originations than they had in 2016 despite a cost structure that several folds higher.
Boasting about its insufficient February 2023 plan to reduce expenses by a paltry $38mm over the course of a year.	•  That the Company thought $38mm in cost cuts was "very disciplined" speaks to how off base management was in assessing its own cost position.1 •  When we approached the Company in March 2023, we called for a minimum of $150mm in additional costs cuts and for Oportun to refocus on its core lending business. Management pushed back in our private calls before partially pivoting on costs, announcing an additional cost cut of $78mm-$83mm, far short of what we believed was necessary.
Excluding the fact that the Company was on the verge of bankruptcy at the time of its pivot on cost cuts.	•  Unforced errors by the Board and management almost bankrupted the Company.2 Oportun's leadership does not deserve credit for narrowly avoiding this crisis of their own making. •  Given the further deterioration in Oportun's credit performance over the 2023 period, the cost cuts required to right-size the business would grow considerably over the course of 2023. •  Management's slow and insufficient cost cuts led to the dilution of 42% of Oportun's outstanding shares from Q1 2023 to today.3
Ignoring Findell's advocacy for better capital allocation and the impact that Scott Parker and Richard Tambor have had on the Company.	•  Operating metrics, such as cost per loan, only began to improve after our entreaties in early 2023. •  OpEx per loan flatlined again during the second half of 2023 until Mr. Parker and Mr. Tambor – who we identified – joined the Board and drove a much further reduction in the Company's OpEx per loan. •  OpEx per loan improved by 61% from the date of our first letter to Oportun in Q1 2023 through Q4 2024 with much of that reduction coming after the arrival of Scott Parker.4

The attempts by the legacy Board members to take credit for these improvements are, in our view, part of a transparent effort to maintain their positions, despite a track record of poor total stockholder returns. The facts speak for themselves: the turnaround in Oportun's operations is directly tied Findell's engagement and the addition of Mr. Parker and Mr. Tambor.

TOTAL STOCKHOLDER RETURNS: DIRECTOR TENURE⁵

Raul Vazquez (13 Years)	Jo Ann Barefoot (11 Years)	R. Neil Williams (8 Years)	Louis B. Miramontes (4 Years)	Ginny Lee (4 Years)	Sandra Smith (4 Years)	Mohit Daswani (1 Year)	Carlos Minetti (1 Year)	Scott Parker (1 Year)	Richard Tambor (1 Year)
(55 %)	(55 %)	(55 %)	(55 %)	(72 %)	(72 %)	+99 %	+99 %	+206 %	+149 %

Oportun is a great lending business. We are confident that strengthening the Board with directors who have lending experience and are capable of providing independent oversight will drive the Company to new heights. Allowing the legacy directors, who have no lending experience, to retain majority control of the Board will only put Oportun at long-term risk. The choice for stockholders is that simple.

By voting for Mr. Wilcox, you will not only elect someone with a lifetime of experience in consumer lending, but you will also ensure that the future of your investment is not in the hands of entrenched Board members who have destroyed significant value and allowed management to make numerous strategic errors without accountability. We urge you to vote on the WHITE proxy card today to elect Mr. Wilcox.

Sincerely,
Brian Finn
CIO
Findell Capital

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We urge stockholders to vote FOR the election of Warren Wilcox and AGAINST the reelection of failed CEO Raul Vazquez on the WHITE proxy card. Visit www.OpportunityAtOportun.com to learn more.

Contact:
Findell Capital Management, LLC
88 Pine Street, 22nd Fl.
New York, NY 10005
info@findell.us 

OR

Saratoga Proxy Consulting LLC
John Ferguson
info@saratogaproxy.com 

¹ During Oportun's Q4 2022 earnings call, CFO Jonathan Coblentz said the Company was "very disciplined about OpEx."
² As indicated by the company's share price and deteriorating operating performance during 2023 and early 2024.
³ Company's weighted average shares outstanding including warrants as reported on Form 10-Q.
⁴ Company financial reports on Form 10-Q, Bloomberg.
⁵ Company proxy statement filed May 28, 2025 and Bloomberg. Total stockholder returns as of 6/12/2025.

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SOURCE Findell Capital Management, LLC

FAQ

What changes is Findell Capital seeking at Oportun (OPRT)?

Findell is seeking to elect Warren Wilcox to the Board at the July 18, 2025 Annual Meeting to strengthen independent oversight and reduce control by long-tenured directors.

How much has Oportun's (OPRT) operating expense increased since 2016?

Oportun's operating expenses quadrupled from $162 million in 2016 to over $600 million in 2022.

What is Findell Capital's ownership stake in Oportun (OPRT)?

Findell Capital owns approximately 7.4% of Oportun's outstanding common shares, making it a top two stockholder.

How have Oportun's (OPRT) long-tenured directors performed?

Long-tenured directors have overseen stockholder returns ranging from -55% to -72%, while newer directors appointed through Findell's advocacy have achieved positive returns of up to +206%.

What cost reductions did Findell Capital advocate for at Oportun (OPRT)?

Findell advocated for minimum cost cuts of $150 million, while management initially proposed only $38 million in reductions before partially increasing it to $78-83 million.