Findell Capital Releases Presentation on Oportun Financial

Rhea-AI Summary

Findell Capital Partners, a major stockholder of Oportun Financial (NASDAQ: OPRT), released an investor presentation criticizing the company's Board and management. The presentation highlights CEO Raul Vazquez's leadership failures, resulting in nearly $1.5 billion in stockholder capital destruction and a 76% stock price decline from September 2019 to March 2023. Key issues include increased cost per loan, high net charge-offs, and the questionable $211 million Hello Digit acquisition. Findell notes that after appointing two of their identified directors, the company saw a 61% reduction in OpEx per loan and 206% total stockholder return. The firm proposes removing the 36% interest rate cap and targeting pre-tax ROA of 8-10%, suggesting potential share value of $22 with reduced operating expenses of $325 million by 2026.

Positive

• Addition of Findell-identified directors led to 61% reduction in OpEx per loan and 206% total stockholder return
• Potential for $80 million reduction in corporate overhead to achieve OpEx ratio below 12%
• Company could reach $22 per share with proposed operational improvements by 2026

Negative

• 76% collapse in stock price from September 2019 through March 2023
• Nearly $1.5 billion of stockholder capital destroyed under current CEO
• Questionable $211 million Hello Digit acquisition
• Board lacks lending experience and has potential conflicts of interest
• Underperformance compared to peer OneMain Holdings in net charge-offs and OpEx ratio
• Self-imposed 36% interest rate cap limiting customer base and performance

Insights

Corporate Governance Analyst

Activist investor Findell criticizes Oportun's leadership, pushing for board changes amid claims of destroyed shareholder value and strategic failures.

This press release represents a significant activist campaign by Findell Capital Partners against Oportun Financial's management and board. Findell, identifying itself as one of Oportun's largest stockholders, has released a detailed presentation criticizing CEO Raul Vazquez and the current board while pushing for specific governance changes.

The activist's critique centers on several key allegations: that management destroyed nearly $1.5 billion in stockholder value, that the company's stock collapsed by approximately 76% between September 2019 and March 2023, and that Oportun has significantly underperformed peers like OneMain Holdings on critical metrics including net charge-offs and operating expense ratios.

Particularly concerning from a governance perspective is Findell's claim that the board lacks relevant industry expertise—specifically that no legacy board member has lending experience—and that several directors may have conflicts of interest based on prior relationships with the CEO. They further allege that directors have remained entrenched despite poor performance and even when failing to receive majority votes.

Findell points to positive changes since their involvement began, including the appointment of two Findell-identified directors, which they claim led to a 61% reduction in operating expenses per loan and a 206% total stockholder return. They're now advocating for the election of Warren Wilcox, their board candidate with subprime lending expertise, while opposing the reelection of CEO Vazquez.

The activist has outlined specific operational improvements including $80 million in potential overhead reductions, removing the company's 36% interest rate cap, and targeting pre-tax ROA of 8-10%. They suggest these changes could drive share price to more than $22 per share, representing significant potential upside if their thesis proves correct.

Visit www.OpportunityAtOportun.com to Download the Presentation

NEW YORK, June 16, 2025 /PRNewswire/ -- Findell Capital Partners, LP, (together with its affiliates, "Findell," "we" or "us") one of the largest stockholders of Oportun Financial Corporation (NASDAQ: OPRT) ("Oportun" or the "Company"), today released an investor presentation highlighting the urgent need for additional independence and consumer finance industry expertise in the Company's boardroom.

In the presentation, Findell outlines what it sees as the legacy Board of Directors' (the "Board") failure to effectively oversee management and instill accountability:

• CEO Raul Vazquez turned Oportun's simple lending business into a money-losing fintech platform – destroying nearly $1.5 billion of stockholder capital in the process – by exploding its cost per loan, massively increasing its net charge-offs and pursuing disastrous acquisitions, including the approximately $211 mm purchase of Hello Digit, Inc.

• As a result of these strategic missteps, the Company's revenue and earnings deteriorated, leading to a roughly 76% collapse in the stock price from September 2019 through March 2023.

• Oportun has severely underperformed its closest public peer, OneMain Holdings, Inc., in terms of net charge-offs, OpEx ratio and stock price performance.

• Management's long-term targets for return on assets ("ROA") and return on equity ("ROE") are subpar and conceal the Company's weak annual percentage rate and overly high leverage.

• Not a single legacy Board member has lending experience, let alone subprime lending experience. Several directors also appear to us to have conflicts of interest based on their previous working relationships with each other and with Mr. Vazquez, as described in the presentation.

• Despite the Company's poor performance under their oversight, the legacy directors have remained on the Board for years – even when failing to receive a majority of votes in favor of their election – and continue to control the Board's committees and other leadership positions.

Findell also notes how the addition of independent lending expertise has benefited Oportun over the past two years and details the Company's opportunities for value creation:

• Our engagement – including the appointment of Scott Parker and Richard Tambor, two Findell-identified directors with lending expertise – led to positive operating and governance changes, including a 61% reduction in OpEx per loan and a more than 206% total stockholder return.

• The election of independent director candidate Warren Wilcox, who has highly relevant expertise in subprime lending and a deep understanding of Oportun's business, will help eliminate the legacy directors' control of the Board and lead to better oversight of the Company.

• Oportun has ample room to reduce its corporate overhead by $80 mm and run at an OpEx ratio of less than 12%, which would bring the Company more in line with competitors.

• The Company should remove its self-imposed 36% interest rate cap, which has driven significant underperformance and prevented Oportun from serving large swaths of customers.

• Oportun should target pre-tax ROA of 8-10% while maintaining a conservative leverage ratio to yield >40% ROE.

• Findell believes Oportun could achieve more than $22 per share¹ if it reasonably reduces annual operating expenses to $325 mm by the end of 2026 and does not dilute stockholders any further.

***

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 Assuming a pre-tax ROA of 8-10%, $3 billion in outstanding loans and a market multiple of 6-7X earnings.

View original content:https://www.prnewswire.com/news-releases/findell-capital-releases-presentation-on-oportun-financial-302482852.html

SOURCE Findell Capital Management, LLC

FAQ

What are the main issues Findell Capital identified with Oportun Financial (OPRT)?

Findell identified several issues including $1.5 billion in destroyed stockholder capital, 76% stock price decline, high cost per loan, increased net charge-offs, and the questionable $211 million Hello Digit acquisition under CEO Raul Vazquez's leadership.

How has OPRT stock performed under current management?

Oportun's stock price declined approximately 76% from September 2019 through March 2023, significantly underperforming its peer OneMain Holdings.

What improvements has Findell Capital proposed for Oportun Financial?

Findell proposed reducing corporate overhead by $80 million, achieving an OpEx ratio below 12%, removing the 36% interest rate cap, and targeting 8-10% pre-tax ROA to potentially reach $22 per share by 2026.

What positive changes occurred after Findell's involvement with OPRT?

After Findell helped appoint two directors with lending expertise, the company achieved a 61% reduction in OpEx per loan and generated a more than 206% total stockholder return.

What is Findell Capital's voting recommendation for OPRT shareholders?

Findell urges shareholders to vote FOR Warren Wilcox and AGAINST the reelection of CEO Raul Vazquez on the WHITE proxy card.