OppFi Reports Strong Q4 Performance, Projects Robust 2025 Growth

Online lending platform OppFi reported impressive fourth-quarter financial results, showcasing substantial year-over-year improvements in revenue, net income, and operational efficiency. The company's total revenue reached $135.7 million, representing a 2.1% increase from the previous year, while net income surged by 619.7% to approximately $14.0 million.

Key performance highlights include a net revenue margin expansion of 1,000 basis points, driven by strategic enhancements in credit risk management and technological innovations. The company's auto-approval rate increased to 79%, demonstrating improved algorithmic underwriting capabilities. Total net originations grew 11% year-over-year to $214.0 million, supported by expanded bank partnerships and advanced lead evaluation techniques.

OppFi's financial discipline is evident in its reduced charge-offs, which declined to 42% of total revenue from 46% in the prior year. This improvement stems from a healthier portfolio composition and more sophisticated credit modeling using its latest predictive model.

Looking forward, the company projected robust 2025 financial targets, including revenue guidance between $563.0 million and $594.0 million—representing a 7-13% year-over-year increase. Adjusted net income is expected to range from $95.0 million to $97.0 million, reflecting continued growth and operational efficiency.

The company's strong liquidity position, with $88.3 million in cash and restricted cash and an additional $206.2 million in unused debt capacity, provides flexibility for strategic investments and capital allocation. Post-quarter actions included repaying $30.0 million in corporate term loan debt and repurchasing $3.6 million of Class A common stock.

Stonegate Capital Partners values OppFi between $9.95 and $11.12 per share, based on a price-to-earnings multiple analysis, indicating confidence in the company's future performance and market positioning.