Oportun Achieves Third Straight Quarter of GAAP Profitability and Raises Full-Year 2025 Outlook
Oportun (Nasdaq: OPRT) reported strong Q2 2025 financial results, marking its third consecutive quarter of GAAP profitability. The company achieved GAAP net income of $6.9 million, representing a significant $38 million year-over-year improvement, and GAAP EPS of $0.14, up $0.92 from the previous year.
Key highlights include Adjusted EPS of $0.31 (up 288% year-over-year), operating expenses reduction of 13%, and aggregate originations of $481 million (up 11%). The company raised its full-year 2025 Adjusted EPS guidance by 8% to $1.20-$1.40 per share, while adjusting total revenue guidance to $945-960 million.
Credit performance improved with an Annualized Net Charge-Off Rate of 11.9% (down 41 basis points) and a 30+ Day Delinquency Rate of 4.4% (down 54 basis points year-over-year).
Oportun (Nasdaq: OPRT) ha riportato solidi risultati finanziari nel secondo trimestre del 2025, segnando il terzo trimestre consecutivo di redditività secondo i principi contabili GAAP. La società ha raggiunto un utile netto GAAP di 6,9 milioni di dollari, con un miglioramento significativo di 38 milioni di dollari rispetto all'anno precedente, e un utile per azione GAAP di 0,14 dollari, in aumento di 0,92 dollari rispetto all'anno precedente.
I punti salienti includono un utile per azione rettificato di 0,31 dollari (in crescita del 288% su base annua), una riduzione delle spese operative del 13% e originazioni aggregate pari a 481 milioni di dollari (in aumento dell'11%). La società ha rivisto al rialzo la guidance sull'utile per azione rettificato per l'intero anno 2025, portandola a 1,20-1,40 dollari per azione, mentre ha adeguato la previsione dei ricavi totali a 945-960 milioni di dollari.
La performance creditizia è migliorata con un tasso annualizzato di perdite nette su crediti del 11,9% (in calo di 41 punti base) e un tasso di insolvenza oltre i 30 giorni del 4,4% (in diminuzione di 54 punti base su base annua).
Oportun (Nasdaq: OPRT) reportó sólidos resultados financieros en el segundo trimestre de 2025, marcando su tercer trimestre consecutivo de rentabilidad bajo GAAP. La compañía logró un ingreso neto GAAP de 6.9 millones de dólares, representando una mejora significativa de 38 millones de dólares año tras año, y un EPS GAAP de 0.14 dólares, un aumento de 0.92 dólares respecto al año anterior.
Los aspectos destacados incluyen un EPS ajustado de 0.31 dólares (un aumento del 288% interanual), una reducción del 13% en gastos operativos y originaciones totales de 481 millones de dólares (un incremento del 11%). La compañía elevó su guía de EPS ajustado para todo el año 2025 en un 8%, situándola entre 1.20 y 1.40 dólares por acción, mientras ajustaba la guía de ingresos totales a 945-960 millones de dólares.
El desempeño crediticio mejoró con una tasa anualizada de cancelaciones netas del 11.9% (una reducción de 41 puntos básicos) y una tasa de morosidad de más de 30 días del 4.4% (una disminución de 54 puntos básicos año tras año).
Oportun (나스닥: OPRT)는 2025년 2분기 강력한 재무 실적을 보고하며 GAAP 기준으로 세 번째 연속 분기 흑자를 기록했습니다. 회사는 GAAP 순이익 690만 달러를 달성했으며, 이는 전년 대비 3,800만 달러의 큰 개선이며, GAAP 주당순이익(EPS) 0.14달러로 전년 대비 0.92달러 상승했습니다.
주요 하이라이트로는 조정 EPS 0.31달러 (전년 대비 288% 증가), 운영비용 13% 감소, 총 대출 실행액 4억 8,100만 달러 (11% 증가)가 있습니다. 회사는 2025년 전체 조정 EPS 가이던스를 8% 상향 조정하여 주당 1.20~1.40달러로 제시했으며, 총 매출 가이던스는 9억 4,500만~9억 6,000만 달러로 조정했습니다.
신용 성과도 개선되어 연간 순대손비율 11.9% (41 베이시스 포인트 하락)과 30일 이상 연체율 4.4% (전년 대비 54 베이시스 포인트 감소)를 기록했습니다.
Oportun (Nasdaq : OPRT) a annoncé de solides résultats financiers pour le deuxième trimestre 2025, marquant son troisième trimestre consécutif de rentabilité selon les normes GAAP. La société a réalisé un revenu net GAAP de 6,9 millions de dollars, soit une amélioration significative de 38 millions de dollars par rapport à l'année précédente, et un bénéfice par action GAAP de 0,14 dollar, en hausse de 0,92 dollar par rapport à l'année précédente.
Les points clés incluent un BPA ajusté de 0,31 dollar (en hausse de 288 % sur un an), une réduction des dépenses d'exploitation de 13 % et des originations totales de 481 millions de dollars (en hausse de 11 %). La société a relevé ses prévisions de BPA ajusté pour l'ensemble de l'année 2025 de 8 %, à 1,20-1,40 dollar par action, tout en ajustant ses prévisions de revenus totaux à 945-960 millions de dollars.
La performance du crédit s'est améliorée avec un taux annuel net de pertes sur créances de 11,9 % (en baisse de 41 points de base) et un taux de défaillance de plus de 30 jours de 4,4 % (en baisse de 54 points de base sur un an).
Oportun (Nasdaq: OPRT) meldete starke Finanzergebnisse für das zweite Quartal 2025 und verzeichnete damit das dritte aufeinanderfolgende Quartal mit GAAP-Gewinn. Das Unternehmen erzielte einen GAAP-Nettogewinn von 6,9 Millionen US-Dollar, was eine deutliche Verbesserung von 38 Millionen US-Dollar im Jahresvergleich darstellt, sowie ein GAAP-Gewinn pro Aktie (EPS) von 0,14 US-Dollar, ein Anstieg um 0,92 US-Dollar gegenüber dem Vorjahr.
Wesentliche Highlights sind ein bereinigtes EPS von 0,31 US-Dollar (ein Anstieg von 288 % im Jahresvergleich), eine Reduzierung der Betriebskosten um 13 % und aggregierte Kreditvergaben von 481 Millionen US-Dollar (ein Anstieg um 11 %). Das Unternehmen hat seine Prognose für das bereinigte EPS im Gesamtjahr 2025 um 8 % auf 1,20–1,40 US-Dollar pro Aktie angehoben und die Umsatzprognose auf 945–960 Millionen US-Dollar angepasst.
Die Kreditqualität verbesserte sich mit einer annualisierten Nettoausfallquote von 11,9 % (Rückgang um 41 Basispunkte) und einer 30+ Tage Zahlungsverzugsrate von 4,4 % (Rückgang um 54 Basispunkte im Jahresvergleich).
- GAAP net income improved by $38 million year-over-year to $6.9 million
- Adjusted EPS grew 288% to $0.31 compared to prior-year quarter
- Operating expenses decreased 13% year-over-year
- Aggregate Originations increased 11% to $481 million
- Net Charge-Off Rate improved to 11.9%, marking seventh consecutive quarterly decrease
- 30+ Day Delinquency Rate decreased to 4.4%, sixth consecutive quarterly decline
- Full year 2025 Adjusted EPS guidance raised by 8% to $1.20-$1.40
- Total revenue decreased 6% year-over-year to $234 million
- Portfolio Yield declined 106 basis points to 32.8%
- Net Interest Margin Ratio decreased 244 basis points to 26.3%
- Cost of Debt increased to 8.6% from 7.7% in prior-year quarter
- Company lowered high-end of full-year revenue guidance by $10 million
Insights
Oportun's third consecutive profitable quarter shows operational improvement despite revenue headwinds, with raised 2025 EPS guidance signaling continued momentum.
Oportun delivered $6.9 million in GAAP net income for Q2 2025, marking a remarkable $38 million improvement year-over-year. This represents the company's third consecutive quarter of GAAP profitability, a significant turnaround for the consumer lender.
Despite total revenue declining 6% to $234 million, primarily due to the credit card portfolio divestiture in November 2024 and lower portfolio yield, the company demonstrated strong operational execution. Net revenue surged 74% to $105 million, driven by reduced fair value marks and lower net charge-offs. Operating expenses decreased 13% year-over-year to $94 million, reflecting the company's ongoing cost-cutting initiatives.
Credit metrics continue to improve, with the Annualized Net Charge-Off Rate declining to 11.9% from 12.3% year-over-year, and the 30+ Day Delinquency Rate improving to 4.4% from 5.0%. This marks the seventh consecutive quarterly decrease in dollar Net Charge-Offs and sixth consecutive quarterly decline in delinquencies.
Oportun is transitioning toward a more secure lending model, with secured personal loans growing to 7% of the owned principal balance, up from 5% a year ago. These loans generate approximately twice the revenue per loan compared to unsecured products while experiencing charge-off rates approximately 500 basis points lower.
The company's Return on Equity improved dramatically to 7% from -34% in the prior-year quarter, with Adjusted ROE reaching 16%, moving closer to management's long-term target of 20-28%.
Management has revised full-year guidance, lowering the top end of revenue expectations by $10 million to $945-960 million, but raising Adjusted EPS guidance by 8% at the midpoint to $1.20-1.40. This guidance implies 67-94% growth in Adjusted EPS year-over-year, reflecting confidence in continued expense control and credit performance despite anticipated higher loan repayment rates and a slower decline in charge-offs in the second half.
While the company's cost of debt increased to 8.6% from 7.7% year-over-year, its recent ABS transaction earned a first-time AAA rating, suggesting improving capital markets access. With $618 million in undrawn warehouse capacity and $228 million in total cash, Oportun appears well-positioned to fund its planned origination growth of approximately 10% for the full year.
GAAP Net income of
GAAP EPS of
Adjusted EPS of
Operating expenses down
Raising full year 2025 Adjusted EPS guidance by
SAN CARLOS, Calif., Aug. 06, 2025 (GLOBE NEWSWIRE) -- Oportun Financial Corporation (Nasdaq: OPRT) (“Oportun”, or the "Company") today reported financial results for the second quarter ended June 30, 2025.
“We delivered a strong second quarter, marking our third consecutive quarter of GAAP profitability with a
Vazquez added, “While first half results exceeded expectations, we expect higher loan repayment rates and a slower decline in our Net Charge-Off rate than previously anticipated for the second half. We’ve responded by recalibrating credit and implementing additional cost controls. Incorporating these actions, we now expect full year 2025 total revenue of
Second Quarter 2025 Results
| Metric | GAAP | Adjusted1 | |||||||
| 2Q25 | 2Q24 | 2Q25 | 2Q24 | ||||||
| Total revenue2 | |||||||||
| Net income (loss) | |||||||||
| Diluted EPS | |||||||||
| Adjusted EBITDA | |||||||||
| Dollars in millions, except per share amounts. | |||||||||
| 1 See the section entitled “About Non-GAAP Financial Measures” for an explanation of non-GAAP measures, and the table entitled “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of non-GAAP to GAAP measures. | |||||||||
| 2 2Q24 total revenue includes | |||||||||
| Business Highlights |
- Aggregate Originations were
$481 million , an11% increase compared to$435 million in the prior-year quarter - Owned Principal Balance at end-of-period was
$2.6 billion , a decrease of3% compared to$2.7 billion in the prior-year quarter - Annualized Net Charge-Off Rate of
11.9% , a decrease of 41 basis points compared to12.3% in the prior-year quarter; dollar Net Charge-Offs declined6% year-over-year, marking the seventh consecutive quarterly decrease - 30+ Day Delinquency Rate of
4.4% , a decrease of 54 basis points compared to5.0% for the prior-year quarter; sixth consecutive quarterly decline
| Financial and Operating Results |
All figures are as of or for the quarter ended June 30, 2025, unless otherwise noted.
Operational Drivers
Originations – Aggregate Originations for the second quarter were
Portfolio Yield - Portfolio Yield for the second quarter was
Net Interest Margin Ratio - Net Interest Margin Ratio for the second quarter was
Risk Adjusted Net Interest Margin Ratio - Risk Adjusted Net Interest Margin Ratio, which includes Portfolio Yield, cost of funds, Net Charge-Offs, and loan-related fair value adjustments increased year-over-year by 192 basis points to
Financial Results
Revenue – Total revenue for the second quarter was
Operating Expense and Adjusted Operating Expense – Total operating expense was
Net Income (Loss) and Adjusted Net Income (Loss) – Net income was
Earnings (Loss) Per Share and Adjusted EPS – GAAP earnings per share, basic and diluted, were
Adjusted EBITDA – Adjusted EBITDA was
Credit and Operating Metrics
Net Charge-Off Rate – The Annualized Net Charge-Off Rate for the quarter was
30+ Day Delinquency Rate – The Company's 30+ Day Delinquency Rate was
Operating Expense Ratio and Adjusted Operating Expense Ratio – Operating Expense Ratio for the quarter was
Return On Equity ("ROE") and Adjusted ROE – ROE for the quarter was
Secured Personal Loans
As of June 30, 2025, the Company had a secured personal loan receivables balance of
Funding and Liquidity
As of June 30, 2025, total cash was
| Financial Outlook for Third Quarter and Full Year 2025 |
Oportun is providing the following guidance for 3Q 2025 and full year 2025 as follows:
| 3Q 2025 | Full Year 2025 | ||
| Total Revenue | |||
| Annualized Net Charge-Off Rate | |||
| Adjusted EBITDA1 | |||
| Adjusted Net Income1 | — | ||
| Adjusted EPS1 | — | ||
| GAAP Net Income | — | GAAP Profitable | |
| 1 See the section entitled “About Non-GAAP Financial Measures” for an explanation of non-GAAP measures, and the table entitled “Reconciliation of Forward Looking Non-GAAP Financial Measures” for a reconciliation of non-GAAP to GAAP measures. | |||
| Conference Call |
As previously announced, Oportun’s management will host a conference call to discuss second quarter 2025 results at 5:00 p.m. ET (2:00 p.m. PT) today. A live webcast of the call will be accessible from the Investor Relations page of Oportun's website at https://investor.oportun.com. The dial-in number for the conference call is 1-866-604-1698 (toll-free) or 1-201-389-0844 (international). Participants should call in 10 minutes prior to the scheduled start time. Both the call and webcast are open to the general public. For those unable to listen to the live broadcast, a webcast replay of the call will be available at https://investor.oportun.com for one year. A file that includes supplemental financial information and reconciliations of certain non-GAAP measures to their most directly comparable GAAP measures, will be available on the Investor Relations page of Oportun's website at https://investor.oportun.com following the conference call.
| About Non-GAAP Financial Measures |
This press release presents information about the Company’s Adjusted Net Income (Loss), Adjusted EPS, Adjusted EBITDA, Adjusted Operating Expense, Adjusted Operating Expense Ratio, Adjusted ROE, Risk Adjusted Net Interest Margin, and Risk Adjusted Net Interest Margin Ratio, all of which are non-GAAP financial measures provided as a supplement to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company believes these non-GAAP measures can be useful measures for period-to-period comparisons of its core business and provide useful information to investors and others in understanding and evaluating its operating results. Non-GAAP financial measures are provided in addition to, and not as a substitute for, and are not superior to, financial measures calculated in accordance with GAAP. In addition, the non-GAAP measures the Company uses, as presented, may not be comparable to similar measures used by other companies. Reconciliations of non-GAAP to GAAP measures can be found below.
| About Oportun |
Oportun (Nasdaq: OPRT) is a mission-driven financial services company that puts its members' financial goals within reach. With intelligent borrowing, savings, and budgeting capabilities, Oportun empowers members with the confidence to build a better financial future. Since inception, Oportun has provided more than
| Forward-Looking Statements |
This press release contains forward-looking statements. These forward-looking statements are subject to the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this press release, including statements as to future performance, results of operations and financial position; achievement of the Company's strategic priorities and goals; the Company's expectations regarding macroeconomic conditions; the Company's profitability and future growth opportunities including expected revenue growth in connection with increasing originations; the effect of and trends in fair value mark-to-market adjustments on the Company's loan portfolio and asset-backed notes; the Company's third quarter and full year 2025 outlook; the Company’s expectations regarding Adjusted EPS in full year 2025; the Company's expectations related to future profitability on an adjusted basis, and the plans and objectives of management for our future operations, are forward-looking statements. These statements can be generally identified by terms such as “expect,” “plan,” “goal,” “target,” “anticipate,” “assume,” “predict,” “project,” “outlook,” “continue,” “due,” “may,” “believe,” “seek,” or “estimate” and similar expressions or the negative versions of these words or comparable words, as well as future or conditional verbs such as “will,” “should,” “would,” “likely” and “could.” These forward-looking statements speak only as of the date on which they are made and, except to the extent required by federal securities laws, Oportun disclaims any obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. In light of these risks and uncertainties, there is no assurance that the events or results suggested by the forward-looking statements will in fact occur, and you should not place undue reliance on these forward-looking statements. These statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause Oportun’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Oportun has based these forward-looking statements on its current expectations and projections about future events, financial trends and risks and uncertainties that it believes may affect its business, financial condition and results of operations. These risks and uncertainties include those risks described in Oportun's filings with the Securities and Exchange Commission, including Oportun's most recent annual report on Form 10-K, and include, but are not limited to, Oportun's ability to retain existing members and attract new members; Oportun's ability to accurately predict demand for, and develop its financial products and services; the effectiveness of Oportun's A.I. model; macroeconomic conditions, including fluctuating inflation and market interest rates; increases in loan non-payments, delinquencies and charge-offs; Oportun's ability to increase market share and enter into new markets; Oportun's ability to realize the benefits from acquisitions and integrate acquired technologies; the risk of security breaches or incidents affecting the Company's information technology systems or those of the Company's third-party vendors or service providers; Oportun’s ability to successfully offer loans in additional states; Oportun’s ability to compete successfully with other companies that are currently in, or may in the future enter, its industry; and changes in Oportun's ability to obtain additional financing on acceptable terms or at all.
| Contacts |
Investor Contact
Dorian Hare
(650) 590-4323
ir@oportun.com
Media Contact
Michael Azzano
Cosmo PR for Oportun
(415) 596-1978
michael@cosmo-pr.com
Oportun and the Oportun logo are registered trademarks of Oportun, Inc.
| Oportun Financial Corporation CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except share and per share data, unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue | ||||||||||||||||
| Interest income | $ | 218.3 | $ | 231.4 | $ | 438.5 | $ | 462.0 | ||||||||
| Non-interest income | 16.1 | 19.0 | 31.7 | 38.9 | ||||||||||||
| Total revenue | 234.3 | 250.4 | 470.3 | 500.9 | ||||||||||||
| Less: | ||||||||||||||||
| Interest expense | 59.5 | 54.2 | 116.9 | 108.7 | ||||||||||||
| Net decrease in fair value | (70.3 | ) | (136.1 | ) | (142.9 | ) | (253.0 | ) | ||||||||
| Net revenue | 104.6 | 60.0 | 210.4 | 139.2 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Technology and facilities | 36.6 | 40.6 | 73.1 | 87.7 | ||||||||||||
| Sales and marketing | 18.1 | 16.3 | 38.0 | 32.3 | ||||||||||||
| Personnel | 20.2 | 21.9 | 41.2 | 46.4 | ||||||||||||
| Outsourcing and professional fees | 9.7 | 8.4 | 17.7 | 18.6 | ||||||||||||
| General, administrative and other | 9.8 | 22.0 | 17.1 | 33.8 | ||||||||||||
| Total operating expenses | 94.4 | 109.2 | 187.1 | 218.8 | ||||||||||||
| Income (loss) before taxes | 10.1 | (49.1 | ) | 23.3 | (79.6 | ) | ||||||||||
| Income tax expense (benefit) | 3.2 | (18.1 | ) | 6.6 | (22.2 | ) | ||||||||||
| Net income (loss) | $ | 6.9 | $ | (31.0 | ) | $ | 16.6 | $ | (57.5 | ) | ||||||
| Diluted Earnings (Loss) per Common Share | $ | 0.14 | $ | (0.78 | ) | $ | 0.35 | $ | (1.46 | ) | ||||||
| Diluted Weighted Average Common Shares | 47,893,172 | 39,816,996 | 47,468,455 | 39,358,936 | ||||||||||||
Note: Numbers may not foot or cross-foot due to rounding.
| Oportun Financial Corporation CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, unaudited) | ||||||||
| June 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 96.8 | $ | 60.0 | ||||
| Restricted cash | 131.4 | 154.7 | ||||||
| Loans receivable at fair value | 2,755.5 | 2,778.5 | ||||||
| Capitalized software and other intangibles | 78.3 | 86.6 | ||||||
| Right of use assets - operating | 9.7 | 9.8 | ||||||
| Other assets | 129.4 | 137.6 | ||||||
| Total assets | $ | 3,201.1 | $ | 3,227.1 | ||||
| Liabilities and stockholders' equity | ||||||||
| Liabilities | ||||||||
| Secured financing | $ | 331.1 | $ | 535.5 | ||||
| Asset-backed notes at fair value | 617.9 | 1,080.7 | ||||||
| Asset-backed borrowings at amortized cost | 1,605.6 | 984.3 | ||||||
| Acquisition and corporate financing | 193.9 | 203.8 | ||||||
| Lease liabilities | 15.0 | 18.2 | ||||||
| Other liabilities | 61.6 | 50.9 | ||||||
| Total liabilities | 2,825.1 | 2,873.3 | ||||||
| Stockholders' equity | ||||||||
| Common stock | — | — | ||||||
| Common stock, additional paid-in capital | 618.2 | 612.6 | ||||||
| Accumulated deficit | (235.9 | ) | (252.5 | ) | ||||
| Treasury stock | (6.3 | ) | (6.3 | ) | ||||
| Total stockholders’ equity | 376.0 | 353.8 | ||||||
| Total liabilities and stockholders' equity | $ | 3,201.1 | $ | 3,227.1 | ||||
Note: Numbers may not foot or cross-foot due to rounding.
| Oportun Financial Corporation CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions, unaudited) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Cash flows from operating activities | |||||||||||||||
| Net income (loss) | $ | 6.9 | $ | (31.0 | ) | $ | 16.6 | $ | (57.5 | ) | |||||
| Adjustments for non-cash items | 86.5 | 129.9 | 169.7 | 258.2 | |||||||||||
| Proceeds from sale of loans in excess of originations of loans sold and held for sale | 1.5 | 2.0 | 4.5 | 3.2 | |||||||||||
| Changes in balances of operating assets and liabilities | 9.7 | 6.8 | 14.6 | (10.2 | ) | ||||||||||
| Net cash provided by operating activities | 104.5 | 107.7 | 205.5 | 193.6 | |||||||||||
| Cash flows from investing activities | |||||||||||||||
| Net loan principal repayments (loan originations) | (45.8 | ) | (58.8 | ) | (95.5 | ) | (20.5 | ) | |||||||
| Proceeds from loan sales originated as held for investment | — | 0.8 | — | 2.2 | |||||||||||
| Capitalization of system development costs | (6.4 | ) | (5.3 | ) | (12.0 | ) | (8.4 | ) | |||||||
| Other, net | (0.1 | ) | (0.2 | ) | (0.4 | ) | (0.4 | ) | |||||||
| Net cash used in investing activities | (52.3 | ) | (63.4 | ) | (107.9 | ) | (27.0 | ) | |||||||
| Cash flows from financing activities | |||||||||||||||
| Borrowings | 702.4 | 227.6 | 1,447.8 | 487.8 | |||||||||||
| Repayments | (757.5 | ) | (231.8 | ) | (1,531.5 | ) | (623.6 | ) | |||||||
| Net stock-based activities | 0.1 | — | (0.4 | ) | (0.2 | ) | |||||||||
| Net cash used in financing activities | (54.9 | ) | (4.2 | ) | (84.0 | ) | (136.0 | ) | |||||||
| Net increase (decrease) in cash and cash equivalents and restricted cash | (2.8 | ) | 40.1 | 13.6 | 30.6 | ||||||||||
| Cash and cash equivalents and restricted cash beginning of period | 231.0 | 196.6 | 214.6 | 206.0 | |||||||||||
| Cash and cash equivalents and restricted cash end of period | $ | 228.2 | $ | 236.6 | $ | 228.2 | $ | 236.6 | |||||||
Note: Numbers may not foot or cross-foot due to rounding.
| Oportun Financial Corporation CONSOLIDATED KEY PERFORMANCE METRICS (unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| Key Financial and Operating Metrics | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Aggregate Originations (Millions) | $ | 480.8 | $ | 434.8 | $ | 950.2 | $ | 773.0 | ||||||||
| Portfolio Yield (%) | 32.8 | % | 33.9 | % | 32.9 | % | 33.2 | % | ||||||||
| 30+ Day Delinquency Rate (%) | 4.4 | % | 5.0 | % | 4.4 | % | 5.0 | % | ||||||||
| Annualized Net Charge-Off Rate (%) | 11.9 | % | 12.3 | % | 12.0 | % | 12.2 | % | ||||||||
| Other Metrics(1) | ||||||||||||||||
| Managed Principal Balance at End of Period (Millions) | $ | 2,939.8 | $ | 2,997.8 | $ | 2,939.8 | $ | 2,997.8 | ||||||||
| Owned Principal Balance at End of Period (Millions) | $ | 2,636.4 | $ | 2,719.0 | $ | 2,636.4 | $ | 2,719.0 | ||||||||
| Average Daily Principal Balance (Millions) | $ | 2,666.8 | $ | 2,745.7 | $ | 2,685.9 | $ | 2,798.7 | ||||||||
| (1) As of June 30, 2024, Managed Principal Balance at End of Period, and Owned Principal Balance at End of Period included credit card amounts of | ||||||||||||||||
Note: Numbers may not foot or cross-foot due to rounding.
| Oportun Financial Corporation ABOUT NON-GAAP FINANCIAL MEASURES (unaudited) |
This press release dated August 6, 2025 contains non-GAAP financial measures. The following tables reconcile the non-GAAP financial measures in this press release to the most directly comparable financial measures prepared in accordance with GAAP.
The Company believes that the provision of these non-GAAP financial measures can provide useful measures for period-to-period comparisons of Oportun's core business and useful information to investors and others in understanding and evaluating its operating results. However, non-GAAP financial measures are not calculated in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same names, and may differ from non-GAAP financial measures with the same or similar names that are used by other companies.
Adjusted EBITDA
The Company defines Adjusted EBITDA as net income, adjusted to eliminate the effect of certain items as described below. The Company believes that Adjusted EBITDA is an important measure because it allows management, investors and its board of directors to evaluate and compare operating results, including return on capital and operating efficiencies, from period to period by making the adjustments described below. In addition, it provides a useful measure for period-to-period comparisons of Oportun's business, as it removes the effect of income taxes, certain non-cash items, variable charges and timing differences.
- The Company believes it is useful to exclude the impact of income tax expense, as reported, because historically it has included irregular income tax items that do not reflect ongoing business operations.
- The Company believes it is useful to exclude depreciation and amortization and stock-based compensation expense because they are non-cash charges.
- The Company believes it is useful to exclude the impact of interest expense associated with the Company's corporate financing facilities, including the senior secured term loan and the residual financing facility, as it views this expense as related to its capital structure rather than its funding.
- The Company excludes the impact of certain non-recurring charges and other non-recurring charges because it does not believe that these items reflect ongoing business operations. Other non-recurring charges include litigation reserve, impairment charges, workforce optimization expenses, shareholder activism costs, debt amendment and warrant amortization costs related to our corporate financing facilities.
- The Company also excludes fair value mark-to-market adjustments on its loans receivable portfolio and asset-backed notes carried at fair value because these adjustments do not impact cash.
Adjusted Net Income
The Company defines Adjusted Net Income as net income adjusted to eliminate the effect of certain items as described below. The Company believes that Adjusted Net Income is an important measure of operating performance because it allows management, investors, and the Company's board of directors to evaluate and compare its operating results, including return on capital and operating efficiencies, from period to period, excluding the after-tax impact of non-cash, stock-based compensation expense and certain non-recurring charges.
- The Company believes it is useful to exclude the impact of income tax expense (benefit), as reported, because historically it has included irregular income tax items that do not reflect ongoing business operations. The Company also includes the impact of normalized income tax expense by applying a normalized statutory tax rate.
- The Company believes it is useful to exclude the impact of certain non-recurring charges and other non-recurring charges because it does not believe that these items reflect its ongoing business operations. Other non-recurring charges include litigation reserve, impairment charges, workforce optimization expenses, shareholder activism costs, debt amendment and warrant amortization costs related to our corporate financing facilities.
- The Company believes it is useful to exclude stock-based compensation expense because it is a non-cash charge.
- The Company also excludes the fair value mark-to-market adjustment on its asset-backed notes carried at fair value to align with the 2023 accounting policy decision to account for new debt financings at amortized cost.
Risk Adjusted Net Interest Margin and Risk Adjusted Net Interest Margin Ratio
The Company defines Risk Adjusted Net Interest Margin as total interest and non-interest income, less interest expense, credit losses and the impact of loan-related fair value adjustments. The Company defines Risk Adjusted Net Interest Margin Ratio as annualized Risk Adjusted Net Interest Margin divided by Average Daily Principal Balance. Average Daily Principal Balance represents the average loan balance outstanding over the reporting period. The Company believes Risk Adjusted Net Interest Margin and Risk Adjusted Net Interest Margin Ratio are important metrics because they reflect the net margin earned on its loan portfolio after accounting for both the cost of borrowing and the impact of credit performance, along with non-interest income. The Company believes that the Risk Adjusted Net Interest Margin measure provides management, investors, and Oportun's board of directors with a more complete understanding of the net margin of the Company’s loan portfolio and non-interest income on a risk-adjusted basis. The Company believes that the Risk Adjusted Net Interest Margin Ratio allows management, investors and Oportun's board of directors to evaluate its efficiency relative to its Average Daily Principal Balance.
Adjusted Operating Expense and Adjusted Operating Expense Ratio
The Company defines Adjusted Operating Expense as total operating expenses adjusted to exclude stock-based compensation expense and certain non-recurring charges, such as expenses associated with our workforce optimization, and other non-recurring charges. Other non-recurring charges include litigation reserve, impairment charges, workforce optimization expenses, shareholder activism costs, and debt amendment costs related to our Corporate Financing facility. The Company defines Adjusted Operating Expense Ratio as Adjusted Operating Expense divided by Average Daily Principal Balance. The Company believes Adjusted Operating Expense is an important measure because it allows management, investors and Oportun's board of directors to evaluate and compare its operating costs from period to period, excluding the impact of non-cash, stock-based compensation expense and certain non-recurring charges. The Company believes Adjusted Operating Expense Ratio is an important measure because it allows management, investors and Oportun's board of directors to evaluate how efficiently the Company is managing costs relative to revenue and Average Daily Principal Balance.
Adjusted Return on Equity
The Company defines Adjusted Return on Equity (“ROE”) as annualized Adjusted Net Income divided by average stockholders’ equity. Average stockholders’ equity is an average of the beginning and ending stockholders’ equity balance for each period. The Company believes Adjusted ROE is an important measure because it allows management, investors and its board of directors to evaluate the profitability of the business in relation to its stockholders' equity and how efficiently it generates income from stockholders' equity.
Adjusted EPS
The Company defines Adjusted EPS as Adjusted Net Income divided by weighted average diluted shares outstanding.
| Oportun Financial Corporation RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| Adjusted EBITDA | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net income (Loss) | $ | 6.9 | $ | (31.0 | ) | $ | 16.6 | $ | (57.5 | ) | ||||||
| Adjustments: | ||||||||||||||||
| Income tax expense (benefit) | 3.2 | (18.1 | ) | 6.6 | (22.2 | ) | ||||||||||
| Interest on corporate financing | 9.4 | 13.2 | 19.2 | 27.1 | ||||||||||||
| Depreciation and amortization | 10.7 | 13.0 | 21.8 | 26.2 | ||||||||||||
| Stock-based compensation expense | 2.7 | 3.0 | 5.5 | 7.0 | ||||||||||||
| Other non-recurring charges(1) | 4.0 | 12.5 | 5.6 | 16.8 | ||||||||||||
| Fair value mark-to-market adjustment | (5.7 | ) | 37.7 | (10.7 | ) | 34.7 | ||||||||||
| Adjusted EBITDA | $ | 31.2 | $ | 30.2 | $ | 64.7 | $ | 32.2 | ||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| Adjusted Net Income | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net income (Loss) | $ | 6.9 | $ | (31.0 | ) | $ | 16.6 | $ | (57.5 | ) | ||||||
| Adjustments: | ||||||||||||||||
| Income tax expense (benefit) | 3.2 | (18.1 | ) | 6.6 | (22.2 | ) | ||||||||||
| Stock-based compensation expense | 2.7 | 3.0 | 5.5 | 7.0 | ||||||||||||
| Other non-recurring charges(1) | 4.0 | 12.5 | 5.6 | 16.8 | ||||||||||||
| Net decrease in fair value of credit cards receivable | — | 36.2 | — | 36.2 | ||||||||||||
| Mark-to-market adjustment on ABS notes | 3.4 | 1.9 | 11.3 | 29.0 | ||||||||||||
| Adjusted income (loss) before taxes | 20.1 | 4.4 | 45.7 | 9.4 | ||||||||||||
| Normalized income tax expense | 5.4 | 1.2 | 12.3 | 2.5 | ||||||||||||
| Adjusted Net Income | $ | 14.7 | $ | 3.2 | $ | 33.3 | $ | 6.9 | ||||||||
| Stockholders' equity | $ | 376.0 | $ | 354.1 | $ | 376.0 | $ | 354.1 | ||||||||
| GAAP ROE | 7.4 | % | (33.9 | )% | 9.2 | % | (30.5 | )% | ||||||||
| Adjusted ROE (%)(2) | 15.9 | % | 3.5 | % | 18.4 | % | 3.6 | % | ||||||||
| (1) Certain prior-period financial information has been reclassified to conform to current period presentation. (2) Calculated as Adjusted Net Income (Loss) divided by average stockholders’ equity. | ||||||||||||||||
Note: Numbers may not foot or cross-foot due to rounding.
| Oportun Financial Corporation RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| Adjusted Operating Expense Ratio | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| OpEx Ratio | 14.2 | % | 16.0 | % | 14.0 | % | 15.7 | % | ||||||||
| Total Operating Expense | $ | 94.4 | $ | 109.2 | $ | 187.1 | $ | 218.8 | ||||||||
| Adjustments: | ||||||||||||||||
| Stock-based compensation expense | (2.7 | ) | (3.0 | ) | (5.5 | ) | (7.0 | ) | ||||||||
| Other non-recurring charges(1) | (3.2 | ) | (12.1 | ) | (4.1 | ) | (16.0 | ) | ||||||||
| Total Adjusted Operating Expense | $ | 88.6 | $ | 94.1 | $ | 177.5 | $ | 195.8 | ||||||||
| Average Daily Principal Balance | $ | 2,666.8 | $ | 2,745.7 | $ | 2,685.9 | $ | 2,798.7 | ||||||||
| Adjusted OpEx Ratio | 13.3 | % | 13.8 | % | 13.3 | % | 14.1 | % | ||||||||
| (1) Certain prior-period financial information has been reclassified to conform to current period presentation. | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Risk Adjusted Net Interest Margin | ||||||||||||||||
| Total Revenue | 234.3 | 250.4 | 470.3 | 500.9 | ||||||||||||
| Less: Interest Expense | 59.5 | 54.2 | 116.9 | 108.7 | ||||||||||||
| Net Interest Margin | $ | 174.8 | $ | 196.2 | $ | 353.3 | $ | 392.2 | ||||||||
| Net Interest Margin Ratio | 26.3 | % | 28.7 | % | 26.5 | % | 28.2 | % | ||||||||
| Adjustments: | ||||||||||||||||
| Mark-to-market adjustment on loans | 9.1 | (36.7 | ) | 21.5 | (7.8 | ) | ||||||||||
| Mark-to-market adjustment on derivatives | — | 1.0 | 0.5 | 2.1 | ||||||||||||
| Net settlements on derivative instruments | 3.0 | 3.8 | 6.7 | 2.7 | ||||||||||||
| Fair value mark on loans sold | — | (18.4 | ) | — | (51.8 | ) | ||||||||||
| Net decrease in Fair Value of Credit Card | — | 36.2 | — | 36.2 | ||||||||||||
| Net charge-offs | (79.0 | ) | (83.9 | ) | (160.3 | ) | (169.2 | ) | ||||||||
| Other non-recurring charges | 0.8 | 0.4 | 1.5 | 0.8 | ||||||||||||
| Risk Adjusted Net Interest Margin | $ | 108.7 | $ | 98.5 | $ | 223.1 | $ | 205.2 | ||||||||
| Average Daily Principal Balance | $ | 2,666.8 | $ | 2,745.7 | $ | 2,685.9 | $ | 2,798.7 | ||||||||
| Risk Adjusted Net Interest Margin Ratio | 16.3 | % | 14.4 | % | 16.8 | % | 14.7 | % | ||||||||
Note: Numbers may not foot or cross-foot due to rounding.
| Oportun Financial Corporation RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, except share and per share data, unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| GAAP Earnings (loss) per Share | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net income (loss) | $ | 6.9 | $ | (31.0 | ) | $ | 16.6 | $ | (57.5 | ) | ||||||
| Net income (loss) attributable to common stockholders | $ | 6.9 | $ | (31.0 | ) | $ | 16.6 | $ | (57.5 | ) | ||||||
| Basic weighted-average common shares outstanding | 46,571,524 | 39,816,996 | 46,037,084 | 39,358,936 | ||||||||||||
| Weighted average effect of dilutive securities: | ||||||||||||||||
| Stock options | — | — | — | — | ||||||||||||
| Restricted stock units | 1,321,648 | — | 1,431,371 | — | ||||||||||||
| Diluted weighted-average common shares outstanding | 47,893,172 | 39,816,996 | 47,468,455 | 39,358,936 | ||||||||||||
| Earnings (loss) per share: | ||||||||||||||||
| Basic | $ | 0.15 | $ | (0.78 | ) | $ | 0.36 | $ | (1.46 | ) | ||||||
| Diluted | $ | 0.14 | $ | (0.78 | ) | $ | 0.35 | $ | (1.46 | ) | ||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| Adjusted Earnings (loss) Per Share | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Diluted earnings (loss) per share | $ | 0.14 | $ | (0.78 | ) | $ | 0.35 | $ | (1.46 | ) | ||||||
| Adjusted Net Income | $ | 14.7 | $ | 3.2 | $ | 33.3 | $ | 6.9 | ||||||||
| Basic weighted-average common shares outstanding | 46,571,524 | 39,816,996 | 46,037,084 | 39,358,936 | ||||||||||||
| Weighted average effect of dilutive securities: | ||||||||||||||||
| Stock options | — | — | — | — | ||||||||||||
| Restricted stock units | 1,321,648 | 469,445 | 1,431,371 | 458,515 | ||||||||||||
| Diluted adjusted weighted-average common shares outstanding | 47,893,172 | 40,286,441 | 47,468,455 | 39,817,451 | ||||||||||||
| Adjusted Earnings (loss) Per Share | $ | 0.31 | $ | 0.08 | $ | 0.70 | $ | 0.17 | ||||||||
Note: Numbers may not foot or cross-foot due to rounding.
| Oportun Financial Corporation RECONCILIATION OF FORWARD LOOKING NON-GAAP FINANCIAL MEASURES (in millions, unaudited) | ||||||||||||||||
| 3Q 2025 | FY 2025 | |||||||||||||||
| Low | High | Low | High | |||||||||||||
| Adjusted EBITDA | ||||||||||||||||
| Net income | $ | 6.8 | * | $ | 10.7 | * | $ | 31.8 | $ | 41.6 | ||||||
| Adjustments: | ||||||||||||||||
| Income tax expense (benefit) | 1.8 | 2.9 | 8.6 | 11.2 | ||||||||||||
| Interest on corporate financing | 8.8 | 8.8 | 36.9 | 36.9 | ||||||||||||
| Depreciation and amortization | 9.9 | 9.9 | 40.9 | 40.9 | ||||||||||||
| Stock-based compensation expense | 3.2 | 3.2 | 12.5 | 12.5 | ||||||||||||
| Other non-recurring charges | 3.5 | 3.5 | 10.5 | 10.5 | ||||||||||||
| Fair value mark-to-market adjustment | * | * | (6.2 | ) | (8.6 | ) | ||||||||||
| Adjusted EBITDA | $ | 34.0 | $ | 39.0 | $ | 135.0 | $ | 145.0 | ||||||||
*Due to the uncertainty in macroeconomic conditions and quarterly volatility in the fair value mark to market adjustment, we are unable to precisely forecast the fair value mark-to-market adjustments on our loan portfolio and asset-backed notes on a quarterly basis. As a result, while we fully expect there to be a fair value mark-to-market adjustment which could have an impact on GAAP net income (loss), the net income (loss) number shown above assumes no change in the fair value mark-to-market adjustment.
| FY 2025 | ||||||||
| Adjusted Net Income and Adjusted EPS | Low | High | ||||||
| Net income | $ | 31.8 | $ | 41.6 | ||||
| Adjustments: | ||||||||
| Income tax expense (benefit) | 8.6 | 11.2 | ||||||
| Stock-based compensation expense | 12.5 | 12.5 | ||||||
| Other non-recurring charges | 10.5 | 10.5 | ||||||
| Mark-to-market adjustment on ABS notes | 16.0 | 16.0 | ||||||
| Adjusted income before taxes | $ | 79.4 | $ | 91.8 | ||||
| Normalized income tax expense | 21.5 | 24.8 | ||||||
| Adjusted Net Income | $ | 58.0 | $ | 67.0 | ||||
| Diluted weighted-average common shares outstanding | 48.0 | 48.0 | ||||||
| Diluted earnings per share | $ | 0.66 | $ | 0.87 | ||||
| Adjusted Earnings Per Share | $ | 1.20 | $ | 1.40 | ||||
Note: Numbers may not foot or cross-foot due to rounding.
FAQ
What were Oportun's (OPRT) key financial results for Q2 2025?
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