DALLAS, TX -- May 8th, 2025 -- OppFi, Inc. (NYSE: OPFI) : Stonegate Capital Partners Updates Coverage on OppFi (NYSE: OPFI). OPFI reported revenue, adj. Net Income, and adj. EPS of $140.3M, $33.8M, and $0.38, respectively. This compares to our/consensus estimates of $141.5M/$137.7M, $23.4M/$22.5M, and $0.26/$0.25. Net revenue margin was 64.7% for the quarter, reflecting a year-over-year expansion of 1,100 bps from 1Q24. This quarter’s strong performance was driven by record total revenue of $140.3M, a 10.1% y/y increase, alongside significant improvements in profitability. Net income grew by 101.3% y/y to $20.4M, while adjusted net income surged 285.1% y/y to $33.8M—both setting new quarterly records for the Company. Adjusted EPS rose to $0.38, compared to $0.10 in the prior-year period. The Company also expanded its adjusted net income margin to 24.1%, up from 6.9% in1Q24. These results highlight the benefits of OppFi’s ongoing focus on algorithmic credit decisioning, operational efficiency, and disciplined expense management.
Company Updates:
Liquidity and Balance Sheet: OppFi ended 1Q25 with $90.8M in cash and restricted cash, including $58.0M in unrestricted cash, up from $88.3M in 4Q24. The Company had $237.0M in unused debt capacity, bringing total funding capacity to $615.8M. During the quarter, OPFI fully repaid its remaining $30.0M corporate term loan and upsized its revolving credit facility with Blue Owl Capital by $50.0M. Reflecting confidence in its financial strength, the Company declared a $0.25 per share special dividend, paid on April 18, 2025—its second as a public company.
Originations: Total net originations for 1Q25 rose 16% y/y to $189.2M, driven by strong demand from returning customers and enhancements in credit modeling. Retained net originations grew 11% to $169.0M, while ending receivables increased 9% to $406.6M, supported by improved credit performance and a more seasoned portfolio. The auto-approval rate remained high at 79%, up from 73% last year, reflecting the continued rollout of OppFi’s Model 6 underwriting engine and expanded lead evaluation capabilities through its bank partner network.
Lending Standards: Credit quality improved in 1Q25, with the net charge-off rate declining to 35% of total revenue, down from 48% a year ago and 42% in 4Q24. Annualized net charge-offs as a percentage of average receivables also fell to 47% from 62% last year, driven by enhanced credit modeling and fewer delinquent accounts. Recoveries on charged-off accounts rose 24.9% y/y, and the average portfolio yield increased to 136%, up ~630 bps. These improvements reflect OppFi’s continued focus on automation, risk evaluation, and a shift toward higher-quality borrowers.
Guidance: Following a strong quarter, OppFi raised its full-year 2025 guidance, reaffirming revenue of $563–$594M and increasing adjusted net income to $106–$113M, up from $95–$97M. Adjusted EPS was also raised to $1.18–$1.26, based on a projected 90 million diluted shares We believe OppFi is positioned to meet its guidance and have adjusted our model accordingly.
Valuation: We use a P/E comp analysis to guide our valuation. Our valuation relies on a P/E multiple range of 9.0x to 11.0x with a midpoint of 10.0x This arrives at a valuation range of $12.05 to $14.73 with a mid-point of $13.39.
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.
