OppFi, Inc. Reports Record Quarterly Performance and Raises FY25 Guidance
TL;DR
OppFi's record revenue and adjusted net income growth offer investors a competitive edge with a raised FY25 guidance and strong market positioning.
OppFi achieved a 12.8% y/y revenue increase to $142.4M, with adjusted net income up 59.0% y/y, driven by algorithmic credit decisioning and expense discipline.
OppFi's improved credit quality and lending standards contribute to a more inclusive financial ecosystem, enhancing access to credit for underserved borrowers.
OppFi's Model 6 platform boosts auto-approval rates to 80%, showcasing how technology is revolutionizing credit accessibility and risk assessment.
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OppFi, Inc. (NYSE: OPFI) has reported a standout performance for the second quarter of 2025, with revenue, adjusted net income, and adjusted EPS reaching $142.4 million, $39.4 million, and $0.45, respectively. This performance not only surpasses the company's previous records but also exceeds consensus estimates, showcasing OppFi's robust growth trajectory and operational efficiency.
The company's net revenue margin expanded to 70.4%, a 206 basis points increase from the previous year, driven by a 12.8% year-over-year growth in total revenue. Despite a 58.5% decrease in net income due to a non-cash warrant revaluation, adjusted net income saw a significant 59.0% increase, highlighting the underlying strength of OppFi's business model.
OppFi's financial health remains solid, with $78.3 million in cash and restricted cash at the end of the quarter. The company's strategic financial management, including the repayment of its corporate term loan and the upsizing of its revolving credit facility by $50.0 million, underscores its commitment to maintaining a strong balance sheet. Additionally, OppFi's ability to generate $64.0 million in free cash flow during the first half of 2025 enabled a $28.1 million special dividend payment to shareholders.
Originations and credit quality also saw notable improvements, with total net originations increasing by 14% year-over-year to $233.9 million. The auto-approval rate rose to 80%, reflecting enhancements in OppFi's Model 6 platform. Credit quality metrics improved, with the net charge-off rate declining to 31.9% of total revenue, and portfolio yield reaching a record 136%.
In light of these strong results, OppFi has raised its full-year 2025 guidance, now expecting revenue between $578 million and $605 million, and adjusted net income between $125 million and $130 million. This upward revision reflects the company's confidence in its continued growth and operational excellence.
Stonegate Capital Partners, in its updated coverage, values OppFi with a P/E multiple range of 9.0x to 11.0x, suggesting a valuation range of $13.11 to $16.02. This analysis underscores the potential for OppFi's stock, given its current performance and future prospects.
For more information on OppFi's financial performance and strategic initiatives, visit https://www.oppfi.com.
Curated from Reportable
