Oportun Financial Corp Stock Price, News & Analysis

Oportun (NASDAQ: OPRT) has issued a letter to stockholders and mailed definitive proxy materials for its 2025 Annual Meeting. The company highlights strong Q1 2025 performance with 40% year-over-year growth in originations, a 13.3% adjusted operating expense ratio, and improving credit metrics. Oportun maintains its 2025 adjusted EPS guidance of $1.10-$1.30, representing 53-81% growth. The company is facing a proxy contest from Findell Capital Management, which seeks to remove CEO Raul Vazquez from the Board. Oportun urges stockholders to vote FOR its two nominees - Raul Vazquez and Carlos Minetti - on the GREEN proxy card. The company emphasizes its successful business transformation, focusing on improving credit outcomes, strengthening economics, and identifying quality originations. The Annual Meeting is scheduled for July 18, 2025, with stockholders of record as of May 27, 2025 eligible to vote.

Oportun (NASDAQ: OPRT), a mission-driven financial services company, has been recognized as a Top Workplace for 2025 by San Francisco Bay Area Top Workplaces. This marks the seventh consecutive recognition from the San Francisco Chronicle and extends the company's streak of workplace awards from regional or national publications to ten years. The recognition is based on an anonymous employee survey conducted by Energage LLC, measuring various aspects of employee experience including growth opportunities, support, and empowerment.

Oportun Financial (NASDAQ: OPRT) reported strong Q1 2025 results, marking its second consecutive quarter of GAAP profitability. The company achieved GAAP net income of $9.8 million, a $36 million improvement year-over-year, with GAAP EPS of $0.21 and Adjusted EPS of $0.40. Total revenue was $236 million, with aggregate originations reaching $469 million, up 39% year-over-year. Operating expenses decreased 15% to $93 million. Credit performance showed improvement with 30+ day delinquencies at 4.7% and net charge-off rate at 12.2%. The company maintains its full year 2025 Adjusted EPS guidance of $1.10-$1.30 but moderates loan originations growth expectations to approximately 10%. Secured personal loans showed strong performance with a $178 million receivables balance.

Findell Capital Management, Oportun Financial's (NASDAQ: OPRT) largest stockholder, has criticized the company's decision to reduce its Board size from 10 to 8 members. The key controversy centers around the decision not to renominate Scott Parker, a highly qualified director with valuable CFO experience. Findell is actively seeking to replace CEO Raul Vazquez with Warren Wilcox, an experienced lending executive, at the 2025 Annual Meeting. Brian Finn, Findell's Founder and CIO, views the board reduction as an attempt by legacy directors to maintain control and prevent accountability. Findell, which owns 2,131,000 shares directly through Findell Partners and 1,310,300 shares through managed accounts, has launched a proxy campaign at www.OpportunityAtOportun.com, urging stockholders to vote on the WHITE proxy card for Wilcox.

Oportun (OPRT) announced changes to its Board of Directors, with Carlos Minetti and Raul Vazquez nominated for election at the 2025 Annual Meeting. Current board members Scott Parker and R. Neil Williams will not seek reelection, resulting in a reduction of the board size from ten to eight members. This restructuring means three of the seven independent directors will have joined within 18 months of the Annual Meeting. The board will select a new Lead Independent Director following Williams' departure. The changes align with industry benchmarks and corporate governance practices, aiming for a more conventional and efficient board structure while maintaining diversity of experience and expertise.

Findell Capital Management, owning 9.5% of Oportun Financial Corporation (NASDAQ: OPRT), has issued a letter to stockholders ahead of the 2025 Annual Meeting. The activist investor is nominating Warren Wilcox, an independent director with extensive consumer finance experience, to challenge the company's current board structure. Findell criticizes CEO Raul Vazquez and the legacy board for value destruction, citing a 72.67% stock decline since IPO and a 40% shareholder dilution. The investor highlights operational inefficiencies, including a 109% increase in operating expenses per loan from 2019-2023, and the questionable $211 million Hello Digit acquisition. Despite some improvements following the 2024 appointment of directors Scott Parker and Richard Tambor, Findell argues that further board changes are needed to improve governance and refocus on core lending operations.

Oportun (OPRT), a mission-driven financial services company, has scheduled its first quarter 2025 financial results release for Thursday, May 8, 2025, after market close. The company will host a conference call and earnings webcast on the same day at 5:00 pm ET / 2:00 pm PT.

Investors can access the live webcast through Oportun's investor relations website at investor.oportun.com, with a replay available for one year. For those joining via phone, the dial-in numbers are 1-888-396-8049 (toll-free) or 1-416-764-8646 (international). Participants are advised to join 10 minutes before the scheduled start time.

Additionally, the company has set Tuesday, May 27, 2025, as the record date for stockholder voting eligibility at its 2025 annual meeting.

Oportun (Nasdaq: OPRT) has successfully closed a new $187.5 million warehouse facility, increasing its total committed warehouse capacity to $954 million. The facility features a two-year revolving period and will be collateralized by Oportun's unsecured and secured personal loan originations.

The new facility is structured with Natixis Corporate & Investment Banking as the senior lender and Neuberger Berman, representing client funds, as the mezzanine lender. According to Paul Appleton, Interim CFO, this financing will support Oportun's responsible growth strategy. The company maintains diverse capital sources, including committed warehouse facilities, asset-backed securitizations, corporate-level debt financing, and whole loan sales.

Oportun (OPRT) has acknowledged receiving a notice from Findell Capital Management nominating two directors for election to the company's Board at the 2025 Annual Meeting of Shareholders. The Board highlighted its achievements over the past three years, including improved credit performance and high-quality originations.

The company emphasized its recent Board refreshment process, which included input from Findell and resulted in the appointment of four new independent directors in the last 14 months. The current Board members possess expertise in critical areas such as credit and risk management, finance, mobile technologies, software, marketing, and regulatory matters.

The Nominating and Governance Committee will evaluate Findell's nominees and make recommendations to shareholders. The company has retained Wilson Sonsini Goodrich & Rosati as legal advisor and FGS Global as strategic communications advisor.