OppFi Reports Record Third Quarter 2025 Results with Strong Revenue Growth and Increased Guidance

OppFi Inc. (NYSE: OPFI) reported impressive third quarter 2025 financial results, achieving record revenue and adjusted net income while demonstrating significant year-over-year growth across key metrics. The financial technology platform reported revenue of $155.1 million, adjusted net income of $40.7 million, and adjusted earnings per share of $0.46 for the quarter ending September 30, 2025. These results exceeded consensus estimates and reflected the company's continued operational excellence and strategic execution.

The company's strong quarterly performance was driven by multiple factors, including a 13.5% year-over-year increase in total revenue to $155.1 million, marking another record quarter. This growth was complemented by increased originations from new customers, operating discipline, and scale benefits that contributed to margin expansion. The net revenue margin reached 67.4% for the quarter, reflecting a 70 basis point improvement compared to the third quarter of 2024. Adjusted net income increased by 41.0% year-over-year to $40.7 million, setting a new quarterly record for the company, while adjusted EPS rose to $0.46 compared to $0.33 in the prior-year period.

OppFi's lending operations showed robust growth with total net originations increasing 12.5% year-over-year to $246.1 million. This growth was driven by stronger consumer demand and credit-model upgrades that enabled larger average loans. Retained net originations grew 8% year-over-year to $215.2 million, while receivables ended the quarter at $481.0 million, representing a 16% increase compared to the same period last year. The company's automation and risk management capabilities showed improvement, with the auto-approval rate increasing to 79% from 77% in the prior-year period, reflecting ongoing enhancements to OppFi's Model 6 platform.

Credit quality remained relatively stable during the quarter, with the net charge-off rate increasing to 35.1% of total revenue, approximately 100 basis points higher than the previous year but significantly improved from 42% in the fourth quarter of 2024. Annualized net charge-offs as a percentage of average receivables increased to 47% from 46% last year, primarily driven by elevated early-summer charge-offs that were partially offset by improved recoveries. The company continues to employ risk-based pricing strategies and is implementing the Model 6.1 refit, which is rolling out in the fourth quarter and will be fully implemented in the first quarter of 2026, designed to tighten higher-risk segments while sustaining growth.

Based on continued strong performance and momentum, OppFi raised the low end of its full-year 2025 revenue guidance to $590–$605 million, up from the previous range of $578–$605 million. The company also increased its adjusted net income guidance to $137–$142 million from $125–$130 million and adjusted EPS guidance to $1.54–$1.60 from $1.39–$1.44. These guidance increases reflect approximately 89.0 million diluted shares and demonstrate management's confidence in the company's ongoing operational performance and market position.

The company maintained strong liquidity and balance sheet metrics, ending the third quarter with $75.2 million in cash and restricted cash, including $45.4 million in unrestricted cash. OppFi maintains a total funding capacity of $600.2 million, including $204.2 million in undrawn debt. Year-to-date, the company generated $66.1 million in free cash flow, enabling continued investment in growth initiatives and supporting a $21.7 million special dividend paid during the third quarter. Additionally, OppFi made $7.4 million of share repurchases in the third quarter and secured a new $150 million Castlelake facility that reduces financing costs by 150 basis points, enhancing the company's financial flexibility and cost structure.

Stonegate Capital Partners, which provides coverage and analysis of OppFi, utilized a price-to-earnings comparable analysis to guide its valuation assessment. The firm applied a P/E multiple range of 8.5x to 9.5x with a midpoint of 9.0x, arriving at a valuation range of $14.56 to $16.28 with a midpoint of $15.42. This valuation reflects the company's strong financial performance, growth trajectory, and market position within the financial technology sector. The combination of record financial results, improved guidance, and strategic financial management positions OppFi for continued success in the evolving digital lending landscape.