DALLAS, TX -- August 6th, 2025 -- OppFi, Inc. (NYSE: OPFI) : Stonegate Capital Partners Updates Coverage on OppFi (NYSE: OPFI). OPFI reported revenue, adj. Net Income, and adj. EPS of $142.4M, $39.4M, and $0.45, respectively. This compares to our/consensus estimates of $146.4M/$141.2M, $26.9M/$26.4M, and $0.30/$0.30. Net revenue margin was 70.4% for the quarter, reflecting a year-over-year expansion of 206 bps from 2Q24. This quarter’s strong performance was driven by yet another record total revenue of $142.4M, a 12.8% y/y increase, complimented by higher receivables and portfolio yield. Net income decreased by 58.5% y/y to $11.5M, primarily due to a non-cash warrant revaluation. Despite this, adjusted net income increased by 59.0% y/y to $39.4M — setting another new quarterly record for the Company. Adjusted EPS rose to $0.45, compared to $0.29 in the prior-year period. Adjusted net income margin expanded 810 bps y/y to 27.7%, underpinned by algorithmic credit decisioning, expense discipline, and improving credit quality.
Company Updates:
Liquidity and Balance Sheet: OppFi ended 2Q25 with $78.3M in cash and restricted cash, including $45.2M in unrestricted cash, down from $88.3M in 4Q24. The Company maintains a total funding capacity of $603.3M, including $219.1M in undrawn debt. During 1H25, OppFi generated $64.0M in free cash flow, enabling continued investment in growth and a $28.1M special dividend paid in 2Q25. The Company also fully repaid its corporate term loan in Q1 and upsized its revolving credit facility by $50.0M.
Originations: Total net originations for 2Q25 rose 14% y/y to $233.9M, driven by strong refinancing activity and increased demand from returning customers. Retained net originations grew 9% y/y to $205.7M, while receivables ended rose 13% y/y to $437.8M. The auto-approval rate increased to 80%, up from 76% in the prior-year period, reflecting ongoing improvements in automation and risk stratification through OppFi’s Model 6 platform.
Lending Standards: Credit quality improved in 2Q25, with the net charge-off rate declining to 31.9%, of total revenue, down 60 bps from year ago and 42% in 4Q24. Annualized net charge-offs as a percentage of average receivables also fell to 43% from 44% last year, driven by enhanced credit modeling and fewer delinquent accounts. Recoveries on charged-off accounts increased 26.7% y/y, and portfolio yield reached 136%, up 130 bps y/y—a new company record. These gains are a result of enhanced underwriting models, pricing optimization, and a shift toward higher-quality borrowers.
Guidance: On the back of continued momentum, OppFi raised its FY25 revenue guidance to $578–$605M, up from $563–$594M. The Company also increased adjusted net income guidance to $125–$130M (from $106– $113M) and adjusted EPS to $1.39–$1.44 (from $1.18–$1.26), based on a projected 90 million diluted shares. We believe OppFi remains well positioned to meet or exceed its guidance based on 1H trends.
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 $13.11 to $16.02 with a mid-point of $14.57.
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.
