Oportun Reports First Quarter 2026 Results; Extends GAAP Profitability Streak
Rhea-AI Summary
Oportun (Nasdaq: OPRT) reported Q1 2026 results on May 7, 2026, delivering its sixth consecutive quarter of GAAP profitability. Q1 total revenue was $229M; net income was $2.3M and diluted EPS was $0.05. Aggregate originations were $417M; owned principal balance was $2.6B.
Management reiterated full‑year 2026 guidance, including Adjusted EPS $1.50–$1.65 and Adjusted EBITDA $150–$165M, and provided Q2 revenue and charge‑off ranges.
Positive
- Sixth consecutive quarter of GAAP profitability
- Full‑year 2026 Adjusted EPS guidance of $1.50–$1.65
- Undrawn warehouse capacity of $922M
- Cost of debt improved by 91 bps to 7.0%
Negative
- Total revenue down 3% YoY to $229M
- Aggregate originations declined 11% YoY to $417M
- Annualized net charge‑off rate rose to 12.7%
- Net income fell to $2.3M from $10M a year ago
Key Figures
Market Reality Check
Peers on Argus
OPRT gained 4.5% while key credit-services peers showed mixed moves: FOA, MFIN and CPSS were modestly positive, PMTS declined sharply, and LPRO was flat, indicating a company-specific reaction rather than a broad sector trade.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| May 08 | Q1 2025 earnings | Positive | +9.1% | Second GAAP-profitable quarter with strong EPS and originations growth. |
| Feb 12 | Q4 2024 earnings | Positive | +8.3% | Return to GAAP profitability and sharp Adjusted EBITDA improvement. |
| Nov 12 | Q3 2024 earnings | Positive | -3.5% | Met or beat guidance with better credit and lower expenses. |
| Aug 08 | Q2 2024 earnings | Positive | +6.2% | Adjusted EBITDA more than doubled despite GAAP loss and lower revenue. |
| May 09 | Q1 2024 earnings | Positive | +20.8% | Cost cuts and guidance raise drove strong positive price reaction. |
Earnings releases have generally driven positive reactions, with 4 of the last 5 tagged earnings events moving up and an average move of 8.17% on the day after prior reports.
Over the last two years, Oportun’s earnings reports have marked a transition from losses to sustained profitability. Prior updates highlighted returns to GAAP profit, strong Adjusted EBITDA growth, and tighter credit performance alongside lower operating expenses. Guidance has generally trended constructive, with raised Adjusted EPS targets into 2025. Today’s Q1 2026 report extends the GAAP profitability streak to six quarters while reiterating full-year 2026 guidance and emphasizing tighter credit posture, lower funding costs, and expanding secured personal loans, fitting into this profitability and balance-sheet improvement narrative.
Historical Comparison
In the past 5 earnings releases, OPRT moved an average of 8.17% with mostly positive reactions. Today’s first-quarter 2026 results, extending the GAAP profitability streak and reiterating guidance, fit the pattern of earnings acting as key trading catalysts.
Earnings updates show a progression from losses in 2023 to consecutive GAAP-profitable quarters in 2024–2026, supported by cost reductions, improving credit metrics, and increasingly confident Adjusted EPS guidance into 2025 and 2026.
Market Pulse Summary
This announcement reports a sixth consecutive GAAP-profitable quarter, with Q1 2026 revenue of $229M, net income of $2.3M, and Adjusted EPS of $0.21. Originations and earnings declined year-over-year, but credit metrics such as the 4.5% 30+ day delinquency rate and lower cost of debt show ongoing balance-sheet work. Full-year 2026 Adjusted EPS guidance of $1.50–$1.65 is reiterated. Investors may watch future originations growth, net charge-off trends, and execution of risk-based pricing to assess sustainability.
Key Terms
gaap financial
adjusted eps financial
adjusted ebitda financial
annualized net charge-off rate financial
30+ day delinquency rate financial
operating expense ratio financial
return on equity financial
debt-to-equity financial
AI-generated analysis. Not financial advice.
Achieves all first quarter guidance metrics
Delivers sixth consecutive quarter of GAAP profitability
Strengthens balance sheet and liquidity position
Reiterates full-year 2026 guidance
SAN MATEO, Calif., May 07, 2026 (GLOBE NEWSWIRE) -- Oportun Financial Corporation (Nasdaq: OPRT) (“Oportun”, or the "Company") today reported financial results for the first quarter ended March 31, 2026.
“Having joined Oportun last month, I’m encouraged by the team’s disciplined execution in the first quarter,” said Doug Bland, CEO of Oportun. “The business has made meaningful progress strengthening its foundation, including continued GAAP profitability, lower funding costs and improved liquidity. At the same time, it is clear there is more work ahead to improve through-cycle credit performance and rebuild durable, profitable growth. Based on my review to date, we are reiterating our full year 2026 guidance.”
Added Paul Appleton, Oportun's Interim Chief Financial Officer: “We expect to ramp originations from first quarter levels through the remainder of the year while maintaining credit discipline and reducing our loss rates. We are also advancing our risk-based pricing initiative, which we expect to launch in the second half of the year, expanding access to customers we are not able to serve today. I am pleased that our full year 2026 Adjusted EPS guidance of
First Quarter 2026 Results
| Metric | GAAP | Adjusted1 | |||||||
| 1Q26 | 1Q25 | 1Q26 | 1Q25 | ||||||
| Total revenue | |||||||||
| Net income | |||||||||
| Diluted EPS | |||||||||
| Adjusted EBITDA | |||||||||
| Dollars in millions, except per share amounts. | |||||||||
| 1See 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. | |||||||||
Financial and Operating Results
All figures are as of or for the quarter ended March 31, 2026, unless otherwise noted.
Operational Drivers
Originations – In line with expectations under a tight credit posture, Aggregate Originations for the first quarter were
Owned Principal Balance - Owned Principal Balance at the end of the first quarter was
Portfolio Yield - Portfolio Yield for the first quarter was
Net Interest Margin Ratio - Net Interest Margin Ratio for the first quarter was relatively flat at
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 decreased year-over-year by 271 basis points to
Financial Results
Revenue – Total revenue for the first quarter was
Operating Expense and Adjusted Operating Expense – Total operating expense was
Net Income and Adjusted Net Income – Net income was
Earnings 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 – 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 March 31, 2026, the Company had a secured personal loan receivables balance of
Funding and Liquidity
As of March 31, 2026, total cash was
Financial Outlook for Second Quarter and Full Year 2026
Oportun is providing the following guidance for 2Q 2026 and full year 2026:
| 2Q 2026 | Full Year 2026 | ||
| Total Revenue | |||
| Annualized Net Charge-Off Rate | |||
| Adjusted EBITDA1 | |||
| Adjusted Net Income1 | |||
| Adjusted EPS1 |
| 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 first quarter 2026 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 second quarter and full year 2026 outlook; the Company’s expectations regarding Adjusted EPS in full year 2026; 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 March 31, | ||||||||
| 2026 | 2025 | |||||||
| Revenue | ||||||||
| Interest income | $ | 215.7 | $ | 220.2 | ||||
| Non-interest income | 13.1 | 15.7 | ||||||
| Total revenue | 228.8 | 235.9 | ||||||
| Less: | ||||||||
| Interest expense | 48.0 | 57.4 | ||||||
| Net decrease in fair value | (85.9 | ) | (72.7 | ) | ||||
| Net revenue | 94.9 | 105.8 | ||||||
| Operating expenses: | ||||||||
| Technology and facilities | 34.1 | 36.4 | ||||||
| Sales and marketing | 15.9 | 19.9 | ||||||
| Personnel | 25.5 | 21.0 | ||||||
| Outsourcing and professional fees | 8.7 | 8.0 | ||||||
| General, administrative and other | 7.0 | 7.4 | ||||||
| Total operating expenses | 91.3 | 92.7 | ||||||
| Income before taxes | 3.6 | 13.2 | ||||||
| Income tax expense | 1.2 | 3.4 | ||||||
| Net income | $ | 2.3 | $ | 9.8 | ||||
| Diluted Earnings per Common Share | $ | 0.05 | $ | 0.21 | ||||
| Diluted Weighted Average Common Shares | 48,498,763 | 47,037,799 | ||||||
Note: Numbers may not foot or cross-foot due to rounding.
Oportun Financial Corporation CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, unaudited) |
| March 31, | December 31, | |||||||
| 2026 | 2025 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 130.4 | $ | 105.5 | ||||
| Restricted cash | 79.5 | 93.4 | ||||||
| Loans receivable at fair value | 2,771.8 | 2,874.1 | ||||||
| Capitalized software and other intangibles | 69.4 | 71.7 | ||||||
| Right of use assets - operating | 10.5 | 9.4 | ||||||
| Other assets | 106.0 | 103.7 | ||||||
| Total assets | $ | 3,167.5 | $ | 3,257.9 | ||||
| Liabilities and stockholders' equity | ||||||||
| Liabilities | ||||||||
| Secured financing | $ | 212.5 | $ | 199.4 | ||||
| Asset-backed notes at fair value | 194.3 | 263.8 | ||||||
| Asset-backed borrowings at amortized cost | 2,154.4 | 2,192.6 | ||||||
| Acquisition and corporate financing | 145.1 | 143.7 | ||||||
| Lease liabilities | 11.4 | 11.5 | ||||||
| Other liabilities | 53.6 | 56.8 | ||||||
| Total liabilities | 2,771.3 | 2,867.8 | ||||||
| Stockholders' equity | ||||||||
| Common stock | — | — | ||||||
| Common stock, additional paid-in capital | 627.5 | 623.7 | ||||||
| Accumulated deficit | (224.9 | ) | (227.3 | ) | ||||
| Treasury stock | (6.3 | ) | (6.3 | ) | ||||
| Total stockholders’ equity | 396.3 | 390.1 | ||||||
| Total liabilities and stockholders' equity | $ | 3,167.5 | $ | 3,257.9 | ||||
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 March 31, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities | ||||||||
| Net income | $ | 2.3 | $ | 9.8 | ||||
| Adjustments for non-cash items | 104.9 | 83.2 | ||||||
| Proceeds from sale of loans in excess of originations of loans sold and held for sale | 1.4 | 3.0 | ||||||
| Changes in balances of operating assets and liabilities | (4.9 | ) | 4.9 | |||||
| Net cash provided by operating activities | 103.7 | 101.0 | ||||||
| Cash flows from investing activities | ||||||||
| Net loan principal repayments (loan originations) | 14.6 | (49.7 | ) | |||||
| Capitalization of system development costs | (6.5 | ) | (5.6 | ) | ||||
| Other, net | (0.2 | ) | (0.2 | ) | ||||
| Net cash provided by (used in) investing activities | 8.0 | (55.5 | ) | |||||
| Cash flows from financing activities | ||||||||
| Borrowings | 558.9 | 745.4 | ||||||
| Repayments | (659.3 | ) | (774.0 | ) | ||||
| Net stock-based activities | (0.5 | ) | (0.5 | ) | ||||
| Net cash used in financing activities | (100.8 | ) | (29.1 | ) | ||||
| Net increase in cash and cash equivalents and restricted cash | 10.9 | 16.3 | ||||||
| Cash and cash equivalents and restricted cash beginning of period | 198.9 | 214.6 | ||||||
| Cash and cash equivalents and restricted cash end of period | $ | 209.9 | $ | 231.0 | ||||
Note: Numbers may not foot or cross-foot due to rounding.
Oportun Financial Corporation CONSOLIDATED KEY PERFORMANCE METRICS (unaudited) |
| Three Months Ended March 31, | ||||||||
| Key Financial and Operating Metrics | 2026 | 2025 | ||||||
| Aggregate Originations (Millions) | $ | 416.9 | $ | 469.4 | ||||
| Portfolio Yield (%) | 32.1 | % | 33.0 | % | ||||
| 30+ Day Delinquency Rate (%) | 4.5 | % | 4.7 | % | ||||
| Annualized Net Charge-Off Rate (%) | 12.7 | % | 12.2 | % | ||||
| Other Metrics | ||||||||
| Managed Principal Balance at End of Period (Millions) | $ | 2,804.3 | $ | 2,955.0 | ||||
| Owned Principal Balance at End of Period (Millions) | $ | 2,640.6 | $ | 2,659.4 | ||||
| Average Daily Principal Balance (Millions) | $ | 2,721.6 | $ | 2,705.2 | ||||
| Average Daily Debt Balance (Millions) | $ | 2,764.1 | $ | 2,839.1 | ||||
| Annualized interest expense (Millions) | $ | 194.6 | $ | 232.8 | ||||
| Cost of Debt (%) | 7.0 | % | 8.2 | % | ||||
| Customer Acquisition Cost(2) | $ | 134 | $ | 139 | ||||
Note: Numbers may not foot or cross-foot due to rounding.
Oportun Financial Corporation ABOUT NON-GAAP FINANCIAL MEASURES (unaudited) |
This press release dated May 7, 2026 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 March 31, | |||||||
| Adjusted EBITDA | 2026 | 2025 | |||||
| Net income | $ | 2.3 | $ | 9.8 | |||
| Adjustments: | |||||||
| Income tax expense | 1.2 | 3.4 | |||||
| Interest on corporate financing | 7.0 | 9.7 | |||||
| Depreciation and amortization | 9.0 | 11.1 | |||||
| Stock-based compensation expense | 3.0 | 2.8 | |||||
| Other non-recurring charges(1) | 6.0 | 1.7 | |||||
| Fair value mark-to-market adjustment | 0.8 | (4.9 | ) | ||||
| Adjusted EBITDA | $ | 29.4 | $ | 33.5 | |||
| Three Months Ended March 31, | ||||||||
| Adjusted Net Income | 2026 | 2025 | ||||||
| Net income | $ | 2.3 | $ | 9.8 | ||||
| Adjustments: | ||||||||
| Income tax expense | 1.2 | 3.4 | ||||||
| Stock-based compensation expense | 3.0 | 2.8 | ||||||
| Other non-recurring charges(1) | 6.0 | 1.7 | ||||||
| Mark-to-market adjustment on ABS notes | 1.4 | 7.9 | ||||||
| Adjusted income before taxes | 14.0 | 25.5 | ||||||
| Normalized income tax expense | 3.8 | 6.9 | ||||||
| Adjusted Net Income | $ | 10.2 | $ | 18.6 | ||||
| Stockholders' equity | $ | 396.3 | $ | 366.1 | ||||
| GAAP ROE | 2.4 | % | 11.0 | % | ||||
| Adjusted ROE (%)(2) | 10.5 | % | 21.0 | % | ||||
(1) Certain prior-period financial information has been reclassified to conform to current period presentation.
(2) Calculated as Adjusted Net Income 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 March 31, | ||||||||
| Adjusted Operating Expense Ratio | 2026 | 2025 | ||||||
| OpEx Ratio | 13.6 | % | 13.9 | % | ||||
| Total Operating Expense | $ | 91.3 | $ | 92.7 | ||||
| Adjustments: | ||||||||
| Stock-based compensation expense | (3.0 | ) | (2.8 | ) | ||||
| Other non-recurring charges(1) | (3.1 | ) | (0.9 | ) | ||||
| Total Adjusted Operating Expense | $ | 85.2 | $ | 88.9 | ||||
| Average Daily Principal Balance | $ | 2,721.6 | $ | 2,705.2 | ||||
| Adjusted OpEx Ratio | 12.7 | % | 13.3 | % | ||||
(1) Certain prior-period financial information has been reclassified to conform to current period presentation.
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Risk Adjusted Net Interest Margin | ||||||||
| Total Revenue | 228.8 | 235.9 | ||||||
| Less: Interest Expense | 48.0 | 57.4 | ||||||
| Net Interest Margin | $ | 180.8 | $ | 178.5 | ||||
| Net Interest Margin Ratio | 26.9 | % | 26.8 | % | ||||
| Adjustments: | ||||||||
| Mark-to-market adjustment on loans | (0.7 | ) | 12.4 | |||||
| Mark-to-market adjustment on derivatives | 1.2 | 0.4 | ||||||
| Net settlements on derivative instruments | (0.2 | ) | 3.7 | |||||
| Net charge-offs | (84.9 | ) | (81.3 | ) | ||||
| Other non-recurring charges | 0.6 | 0.7 | ||||||
| Risk Adjusted Net Interest Margin | $ | 96.9 | $ | 114.5 | ||||
| Average Daily Principal Balance | $ | 2,721.6 | $ | 2,705.2 | ||||
| Risk Adjusted Net Interest Margin Ratio | 14.4 | % | 17.2 | % | ||||
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 March 31, | ||||||
| GAAP Earnings per Share | 2026 | 2025 | ||||
| Net income | $ | 2.3 | $ | 9.8 | ||
| Net income attributable to common stockholders | $ | 2.3 | $ | 9.8 | ||
| Basic weighted-average common shares outstanding | 47,436,155 | 45,496,705 | ||||
| Weighted average effect of dilutive securities: | ||||||
| Stock options | — | — | ||||
| Restricted stock units | 1,062,608 | 1,541,094 | ||||
| Diluted weighted-average common shares outstanding | 48,498,763 | 47,037,799 | ||||
| Earnings per share: | ||||||
| Basic | $ | 0.05 | $ | 0.21 | ||
| Diluted | $ | 0.05 | $ | 0.21 | ||
Three Months Ended March 31, | ||||||
| Adjusted Earnings Per Share | 2026 | 2025 | ||||
| Diluted earnings per share | $ | 0.05 | $ | 0.21 | ||
| Adjusted Net Income | $ | 10.2 | $ | 18.6 | ||
| Basic weighted-average common shares outstanding | 47,436,155 | 45,496,705 | ||||
| Weighted average effect of dilutive securities: | ||||||
| Stock options | — | — | ||||
| Restricted stock units | 1,062,608 | 1,541,094 | ||||
| Diluted adjusted weighted-average common shares outstanding | 48,498,763 | 47,037,799 | ||||
| Adjusted Earnings Per Share | $ | 0.21 | $ | 0.40 | ||
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) |
| 2Q 2026 | FY 2026 | |||||||||||||
| Low | High | Low | High | |||||||||||
| Adjusted EBITDA | ||||||||||||||
| Net income | $ | 6.9 | * | $ | 10.8 | * | $ | 51.0 | $ | 59.2 | ||||
| Adjustments: | ||||||||||||||
| Income tax expense (benefit) | 2.1 | 3.2 | 15.3 | 17.8 | ||||||||||
| Interest on corporate financing | 6.2 | 6.2 | 23.0 | 23.0 | ||||||||||
| Depreciation and amortization | 8.8 | 8.8 | 35.2 | 35.2 | ||||||||||
| Stock-based compensation expense | 3.2 | 3.2 | 11.3 | 11.3 | ||||||||||
| Other non-recurring charges | 6.8 | 6.8 | 17.2 | 17.2 | ||||||||||
| Fair value mark-to-market adjustment | * | * | (2.9 | ) | 1.4 | |||||||||
| Adjusted EBITDA | $ | 34.0 | $ | 39.0 | $ | 150.0 | $ | 165.0 | ||||||
*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) information presented above assumes no change in the fair value mark-to-market adjustment.
| FY 2026 | ||||||
| Adjusted Net Income and Adjusted EPS | Low | High | ||||
| Net income | $ | 51.0 | $ | 59.2 | ||
| Adjustments: | ||||||
| Income tax expense (benefit) | 17.3 | 20.1 | ||||
| Stock-based compensation expense | 11.3 | 11.3 | ||||
| Other non-recurring charges | 17.2 | 17.2 | ||||
| Mark-to-market adjustment on ABS notes | 4.5 | 4.5 | ||||
| Adjusted income before taxes | $ | 101.4 | $ | 112.3 | ||
| Normalized income tax expense | 27.4 | 30.3 | ||||
| Adjusted Net Income | $ | 74.0 | $ | 82.0 | ||
| Diluted weighted-average common shares outstanding | 49.5 | 49.5 | ||||
| Diluted earnings per share | $ | 1.03 | $ | 1.19 | ||
| Adjusted Earnings Per Share | $ | 1.50 | $ | 1.65 | ||
Note: Numbers may not foot or cross-foot due to rounding.
