DALLAS, TX -- May 8th, 2026 -- OppFi, Inc. (NYSE: OPFI): Stonegate Capital Partners Updates Coverage on OppFi (NYSE: OPFI). OppFi’s 1Q26 results were steady, but the bigger development was its shift toward a bank-enabled, deposit-funded model through the pending BNCC acquisition. Revenue and receivables grew despite lower originations, as tighter credit, inflation, weaker sentiment, and higher average tax refunds temporarily reduced loan demand. Higher charge-offs pressured adjusted earnings, but expense discipline held as management invested across LOLA, Model 7, LOC, SMB lending, and BNC integration. In our view, OppFi is prioritizing credit discipline and long-term platform expansion over near-term volume growth.
Quarterly Results: OppFi reported record 1Q revenue of $151.9M, up 8.3% y/y, while GAAP net income rose 165.0% to $54.0M. Adjusted net income declined 11.2% to $30.0M and adjusted EPS declined 9.3% to $0.35, primarily due to elevated charge-offs tied partly to higher expected delinquencies from loans originated last summer. Total expenses were 34.2% of revenue, down 20 bps y/y, showing operating leverage remained intact even as credit normalized. OppFi also repurchased 1.0M shares for $9.9M at an average price of $9.54.
Originations / Credit: Total net originations declined 7.0% y/y to $176.0M, while retained net originations declined 10.4% to $151.4M. Ending receivables still increased 9.4% y/y to $444.9M, supporting revenue growth despite lower new volume. Net charge-offs rose to 42.5% of revenue from 34.6%, while annualized net charge-offs as a percentage of average receivables increased to 55.5% from 47.0%. Management framed this as normalization against an unusually favorable prior-year comparison and emphasized caution over forcing near-term origination growth.
Technology / Product Expansion: OppFi deployed Model 6.1 in 1Q26 and expects Model 7 to launch in fall 2026. Initial LOLA migration is planned for May, with substantial completion expected in 3Q26, and is expected to improve funnel metrics, auto-approvals, cycle times, and speed-to-market. OppFi also plans to launch an OppLoans LOC product in summer 2026, initially adding three new geographies. In SMB, management sees Bitty plus BNC’s commercial/SBA capabilities expanding sub-$150K working-capital products, including revenuebased finance, installment, and LOC offerings.
BNCC Acquisition / Corporate Simplification: OppFi agreed to acquire BNCCORP for ~$130.7M. The transaction brings ~$1.0B of deposits, with more than 80% costing less than 2%, and should reduce reliance on third-party bank partners while supporting broader products and national expansion. Management expects $60M+ of synergies the first year post-close, $90M+ in year two, and $115M+ in year three, with adjusted EPS accretion of 25%+, 40%+, and 50%+, respectively. OppFi also completed its Up-C simplification into a traditional C-Corp, creating ~$466M of tax amortizable goodwill and expected ~$111M of future cash tax savings.
Guidance: Management maintained FY26 guidance for revenue of $650M- $675M, adjusted net income of $153M-$160M, and adjusted EPS of $1.76- $1.84. The Board also approved a new $40M repurchase program, replacing the prior authorization. For the balance of 2026, investor focus should remain on credit stabilization, LOLA migration, LOC launch, Model 7, and BNCC closing.
Valuation: We use a P/E comp analysis to guide our valuation. Our valuation relies on a P/E multiple range of 7.0x to 8.0x with a midpoint of 7.5x This arrives at a valuation range of $16.38 to $18.71 with a mid-point of $17.54.
About Stonegate
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, equity research and capital raising for public and private companies.
SOURCE: Stonegate, Inc.
