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

Dallas-based Stonegate Capital Partners has updated its coverage on OppFi, Inc. (NYSE: OPFI), following the company's second-quarter 2026 earnings report. The results, while showing record revenue, also revealed a reset in the near-term earnings outlook due to delayed strategic initiatives and macroeconomic pressures on consumer affordability. However, the longer-term thesis remains intact, according to the research update.

OppFi's second-quarter revenue increased 1.9% year-over-year to a record $145.2 million, but adjusted net income declined 27.0% to $28.8 million, with adjusted EPS falling to $0.33 from $0.45. The lower full-year 2026 guidance reflects the delayed launch of its line of credit (LOC) product and the migration of its LOLA (likely a product or platform) initiatives, as well as broader macro pressures. Management has deliberately chosen to pace product rollout and tighten underwriting rather than pursue volume at the expense of credit quality. This approach is reflected in the company's controlled adjusted expenses, which remained at approximately 34% of revenue, indicating that the earnings reset was driven by origination timing and credit trends, not a deterioration in the cost structure.

Credit performance showed encouraging sequential improvement. Net charge-offs declined to 39.5% of revenue and 52.3% of average receivables, down from 42.5% and 55.5% in the first quarter. Total net originations improved 20.5% quarter-over-quarter. Stonegate believes 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, there is a potential path back to stronger origination growth.

The longer-term growth framework remains intact despite the FY26 guidance reduction. Key strategic catalysts include the LOC launch, the LOLA migration, and the pending acquisition of BNCC (likely a bank or financial institution). Management continues to target a 4Q26 close for the BNCC acquisition and approximately $3.00 of EPS by 2028. Stonegate believes the acquisition could materially expand OppFi's geographic reach, product breadth, and access to lower-cost funding, with revenue synergies beginning to emerge in 2027.

For investors and industry observers, this update underscores the importance of balancing growth with credit quality in the consumer lending space. OppFi's focus on unit economics and risk-adjusted returns, even at the expense of short-term earnings, may position the company for sustainable long-term growth. The BNCC acquisition, if completed, could significantly alter the competitive landscape by providing a more diversified and cost-efficient platform. As the company navigates these strategic moves, stakeholders will be watching for signs of execution and the eventual return to growth.