Stonegate Capital Partners Updates Coverage on OppFi, Inc. (NYSE: OPFI) 2Q26

DALLAS, TX -- AUGUST 11, 2026 4 min read
Key Takeaways
  • Revenue increased 1.9% y/y to a second-quarter record of $145.2M, while adjusted net income declined 27.0% to $28.8M and adjusted EPS fell to $0.33 from $0.45. Although the quarter resulted in a lower FY26 outlook, adjusted operating expenses remained well controlled at approximately 34% of revenue, suggesting the earnings reset was driven primarily by origination timing and credit trends rather than deterioration in the underlying cost structure.
  • Credit performance showed encouraging sequential improvement, with net charge-offs declining to 39.5% of revenue and 52.3% of average receivables from 42.5% and 55.5%, respectively, in 1Q26, while total net originations improved 20.5% q/q. We believe this supports management’s decision to prioritize underwriting discipline and risk-adjusted returns over near-term volume, with further credit normalization and the September LOC launch providing a potential path back toward stronger origination growth.
  • The longer-term growth framework remains intact despite the FY26 guidance reduction, with LOC, LOLA migration, and the pending BNCC acquisition still representing the primary strategic catalysts. Management continues to target a 4Q26 BNCC close and approximately $3.00 of EPS by 2028, and we believe the acquisition could materially expand OppFi’s geographic reach, product breadth, and access to lower-cost funding as revenue synergies begin to emerge in 2027.
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DALLAS, TX -- August 11, 2026 -- OppFi, Inc. (NYSE: OPFI): Stonegate Capital Partners Updates Coverage on OppFi (NYSE: OPFI). OppFi’s 2Q26 results weaken the near-term earnings outlook but do not change the longer-term thesis. The FY26 reset reflects delayed LOC and LOLA-related initiatives alongside macro pressure on consumer affordability, with management deliberately pacing product rollout and underwriting rather than pursuing volume at the expense of credit quality. Controlled adjusted expenses and sequentially improving charge-offs suggest the model remains intact, while OppFi prioritizes balance-sheet strength, unit economics, and risk-adjusted returns. LOC launch, LOLA migration, and improving originations should clarify a return to growth, while BNCC approval remains the larger strategic driver.

Quarterly Results: Revenue increased 1.9% y/y to a 2Q record $145.2M, adjusted net income declined 27.0% to $28.8M, and adjusted EPS fell to $0.33 from $0.45. Adjusted operating expenses were approximately $49M, or 34% of revenue versus 35% last year, suggesting the shortfall was driven more by origination and credit trends than expense pressure. GAAP results include $7.9M of BNCC transaction and corporate-simplification costs. Liquidity remains ample, with $64.3M of unrestricted cash, $173.5M of unused debt capacity, and $541.8M of total funding capacity.

Originations / Credit: Total net originations declined 9.3% y/y to $212.0M but improved 20.5% q/q, while retained originations fell 14.1% y/y to $176.8M and increased 16.7% sequentially. Ending receivables were $440.1M, essentially flat y/y. Net charge-offs were 39.5% of revenue and 52.3% of average receivables versus 31.9% and 43.5% last year. These metrics improved from 42.5% and 55.5% in 1Q26. Recoveries increased to $15M from $11M. While continued loan growth could provide some benefit to the reported credit ratios, the sequential improvements suggest underlying credit trends are also moving in the right direction. Further improvement would increase our confidence in this trajectory.

Technology / Product Expansion: LOC is expected to launch in September, roughly two months later than planned, beginning in three new geographies. Testing reinforced customer preference for lower monthly payments and longer repayment terms, while LOC allows smaller, flexible draws over time. LOLA was pushed back several months, delaying high-ROI origination initiatives. The auto approval rate increased to 81.2% from 79.7% y/y. Management targets a 70% reduction in product-development cycle times over the next year, further improving speed-to-market as migration advances. The delays appear timing related rather than structural, reflecting an effort to align the Company’s initiatives onto a unified platform. This makes execution during 2H26 an important indicator of the timing and magnitude of renewed origination growth.

BNCC Acquisition: Regulatory applications have been submitted to the OCC and other agencies, with management targeting a 4Q26 close. The transaction remains central to geographic expansion, product diversification, and lower-cost funding, with revenue synergies expected to begin in 2027. In our view, BNCC remains the larger strategic driver beyond the current earnings reset and should increasingly shape the earnings framework into 2027.

Guidance: FY26 revenue guidance was reduced to $600M-$625M from $650M $675M, adjusted net income to $115M-$130M from $153M-$160M, and adjusted EPS to $1.34-$1.51 from $1.76-$1.84. Management maintained its 2027 and 2028 expectations and continues to target approximately $3.00 of EPS by 2028.

Valuation: We use a P/E comp analysis to guide our valuation. Our valuation relies on a P/E multiple range of 6.5x to 7.0x with a midpoint of 6.8x This arrives at a valuation range of $13.55 to $14.59 with a price target of $14.07.

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.

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Dave Storms
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Stonegate Capital Partners
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OppFi reported a 1.9% year-over-year revenue increase to a record $145.2 million for 2Q26, while adjusted net income declined by 27.0% to $28.8 million and adjusted EPS decreased to $0.33 from $0.45. Despite these challenges, controlled operating expenses and improving charge-offs indicate resilience in the business model.

Management is focusing on product rollout and underwriting at a controlled pace to ensure credit quality. Additionally, improving metrics in originations and charge-offs point to a stabilization of consumer credit trends, alongside a strategic emphasis on balance-sheet strength.

The LOC product, scheduled to launch in September, is crucial as it meets customer demands for lower monthly payments and flexible payment options. This launch, alongside the migration to the LOLA platform, is expected to enhance the company's growth trajectory and product offering.

The BNCC acquisition is a strategic move for geographic expansion, product diversification, and achieving lower-cost funding. Expected revenue synergies beginning in 2027 are anticipated to reshape OppFi's earnings framework, making it a key driver of long-term growth.

OppFi has revised its FY26 revenue guidance down to $600 million-$625 million from $650 million-$675 million, and adjusted net income guidance has been updated to $115 million-$130 million from $153 million-$160 million, reflecting a more cautious outlook due to market pressures.

Source: Stonegate, Inc.
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