DALLAS, TX -- March 12th, 2026 -- OppFi, Inc. (NYSE: OPFI): Stonegate Capital Partners Updates Coverage on OppFi (NYSE: OPFI). OppFi exited FY25 with strong momentum, delivering record revenue of $597.1M, adj net income of $139.8M, and adj EPS of $1.59, up 13.5%, 69.1%, and $0.64 y/y, respectively, while GAAP net income rose 74.4% to $146.2M. Results were driven by Model 6, broader use of risk-based pricing, and solid operating discipline, which improved unit economics and margin conversion. Management also returned capital, repurchasing $15.5M of shares at an average price of $10.04, with $20.9M remaining under authorization. Overall, FY25 marked a meaningful step forward in profitability, underwriting, and capital return capacity.
Quarterly Results: OppFi delivered a strong Q4, with record revenue of $159.2M rising 17.3% y/y and adj net income / adj EPS of $25.8M / $0.30, up 27.2% and 27.7%, respectively. The key takeaway, in our view, was continued improvement in core earnings power, as total expenses declined 710 bps y/y as a percentage of revenue to 34.3%, reflecting better operating leverage and expense control.
Liquidity and Balance Sheet: OppFi ended FY25 with $93.2M in cash and restricted cash which including $49.5M in unrestricted cash. The Company also had $618.3M of total funding capacity, including $203.6M of undrawn debt. In FY25, the Company generated $93.5M of free cash flow, funded a $21.7M special dividend, continued its share repurchases, and replaced its prior revolver with a new $150.0M Castlelake facility, lowering financing costs by 150 bps.
Originations: Total net originations in 4Q25 increased 8% y/y to $230.1M, while retained net originations rose 5.0% y/y to $201.0M. Ending receivables increased 16.0% y/y to $493.1M, reflecting continued demand and healthy balance growth. More importantly, the quarter showed OppFi’s ability to grow receivables in a measured way while maintaining pricing discipline. We view that as supportive of revenue durability moving into 2026.
Lending Standards: Credit trends were stable to slightly softer in Q4, with net charge-offs as a percentage of total revenue rising to 45% from 42% and net charge-offs as a percentage of average receivables increasing to 59% from 54%. Management framed the pressure as largely tied to weaker summer vintages rather than a broader deterioration. Encouragingly, improving December and January performance suggests credit costs should become more manageable through 2026. In our view, this looks more like normalization than a break in the earnings story.
Guidance: OppFi introduced FY26 guidance for revenue of $650M-$675M, adjusted net income of $153M-$160M, and adjusted EPS of $1.76-$1.84, implying growth of 9%-13%, 9%-14%, and 11%-16%, respectively. We view the outlook as positive and reflective of stronger underwriting, better operating efficiency, and solid momentum exiting FY25.
Valuation: We use a P/E comp analysis to guide our valuation. Our valuation relies on a P/E multiple range of 7.5x to 8.0x with a midpoint of 7.8x This arrives at a valuation range of $15.17 to $16.18 with a mid-point of $15.67.
