Oportun Financial Corp Stock Price, News & Analysis

Oportun (Nasdaq: OPRT) announced a sale of $228 million in loans through amortizing asset-backed notes, part of a $400 million total issuance. The transaction features loans secured by personal installment loans and achieved a yield of 6.75% on Oportun's share. Priced at a fixed interest rate of 3.83% per annum, the notes received favorable ratings from DBRS and Kroll. This strategic move allows Oportun to generate capital while reducing credit exposure. Oportun has provided over $12 billion in credit to its members since its inception.

Oportun Financial Corporation (OPRT) reported a robust performance for 4Q21, with aggregate originations of $865 million—up 93% year-over-year—bringing FY21 total to a record $2.3 billion. Total revenue for 4Q21 reached $194 million, a 38% increase, while net income rose to $14.2 million, or $0.46 per diluted share. Adjusted net income stood at $25.6 million, or $0.82 per diluted share. The company's member base grew to 1.48 million following the acquisition of Digit, boosting digital banking capabilities. Oportun forecasts continued growth in 2022 with projected revenue and originations increasing significantly.

Oportun Financial Corporation (Nasdaq: OPRT) will announce its financial results for the fourth quarter of 2021 on February 24, 2022, post-market close. A conference call and earnings webcast will occur at 5:00 pm ET. Interested participants can join via dial-in or through the company's investor relations website. Since its inception, Oportun has provided over $10 billion in loans to 1.4 million members, helping them save significantly on fees and interest. The firm is recognized as a Community Development Financial Institution (CDFI) since 2009.

Oportun partners with Sezzle to enhance its Lending-as-a-Service platform, becoming Sezzle’s first digital-only partner. This collaboration allows consumers to finance higher-value purchases at Sezzle's 44,000 merchants, benefiting from Oportun's machine learning capabilities to assess loan applicants. Historically, around half of Oportun's borrowers lacked credit scores, yet the company has aided nearly 1 million Americans in building their credit since 2006, saving them over $2 billion in fees. The partnership aims to provide affordable and transparent financing options.

Oportun (Nasdaq: OPRT) granted 385,268 restricted stock units to 16 employees on December 30, 2021, as part of the 2021 Inducement Equity Incentive Plan following its acquisition of Hello Digit, Inc. on December 22, 2021. The vesting periods for these stock units range from one to four years, contingent on continued employment. The grants were approved by Oportun’s Compensation and Leadership Committee as required by Nasdaq regulations and serve as a material inducement for new hires.

Oportun (Nasdaq: OPRT) has successfully acquired Digit, a neobanking platform, for approximately $211.1 million in cash and stock. This acquisition aims to enhance Oportun's AI and digital capabilities, benefiting its 1.4 million members. With Digit's automated savings tools and existing member base of 600,000, Oportun plans to provide a more comprehensive financial service. Digit will operate as a business unit under Oportun, retaining its leadership and workforce.

Oportun Closes $150 Million Credit Facility

On December 20, 2021, Oportun (Nasdaq: OPRT) announced the completion of a $150 million credit facility, enhancing its Oportun® Visa® Credit Card program. This facility, secured by credit card receivables and provided by WebBank, is set for a two-year revolving term and will replace the existing retention facility. The funds will support the anticipated growth of Oportun's credit card program, which is expected to reach $50 million in receivables by year-end 2021.

Oportun (Nasdaq: OPRT) announced its participation in upcoming investor conferences, highlighting its role in digital lending. CEO Raul Vazquez will lead a fireside chat titled “Trends in Digital Lending” at the JMP Financial Services and Real Estate Conference on November 18, 2021. Another appearance is scheduled for the Jefferies’ Crossover Consumer Finance Summit on December 9, 2021. The events will be accessible via live webcasts on Oportun’s investor relations website, and recordings will be available afterward.

Oportun (Nasdaq: OPRT) has announced its acquisition of Digit, a neobanking platform, for approximately $212.9 million. This strategic move aims to enhance Oportun's A.I. capabilities and digital banking services, targeting a combined membership of 1.4 million. The acquisition is expected to accelerate revenue growth and market expansion, allowing Oportun to offer a more holistic range of financial services, including savings and investing tools. The transaction is anticipated to close by early 2022, pending customary approvals.