Stonegate Capital Partners has updated its coverage on OppFi, Inc. (NYSE: OPFI), highlighting the company's steady first-quarter results and a pivotal strategic shift toward a bank-enabled, deposit-funded model through the pending acquisition of BNCC. The update, released on May 8, 2026, emphasizes OppFi's focus on credit discipline and long-term platform expansion over near-term volume growth.
In the first quarter of 2026, OppFi reported revenue of $151.9 million, an 8.3% increase year-over-year, despite a 7.0% decline in net originations to $176.0 million. Receivables grew 9.4% to $444.9 million, reflecting a higher-quality revenue base. The decline in originations was attributed to tighter credit standards, inflation, weaker consumer sentiment, and higher average tax refunds temporarily reducing loan demand. Higher charge-offs pressured adjusted earnings, but expense discipline remained intact as management invested across multiple growth initiatives, including LOLA, Model 7, LOC, SMB lending, and BNC integration.
The most significant development highlighted in the update is OppFi's pending acquisition of BNCC, which is expected to add approximately $1.0 billion of low-cost deposits, support national expansion, and drive over 25% adjusted EPS accretion in the first year. This shift toward a bank-enabled model is seen as a key catalyst for long-term growth, providing a stable funding source and reducing reliance on more expensive capital.
Looking ahead, OppFi has several product and technology catalysts planned for 2026. The LOLA migration is set to begin in May, Model 7 is expected to launch in the fall, and LOC will debut this summer. The company's fiscal year 2026 guidance remains intact, with revenue projected between $650 million and $675 million and adjusted EPS in the range of $1.76 to $1.84.
The update from Stonegate Capital Partners underscores the importance of OppFi's strategic pivot. By transitioning to a bank-enabled model, OppFi aims to enhance its competitive position in the fintech lending space, potentially lowering funding costs and improving profitability. For investors, this move could signal a more sustainable growth trajectory, as the company balances credit quality with platform expansion. The industry as a whole may take note of this trend, as fintech lenders increasingly seek partnerships with traditional banks to access stable deposit funding.
For the full announcement, including downloadable images and bios, please visit the Stonegate Capital Partners update.
