OppFi Reports Record Third-Quarter Revenue and Raises Full-Year Guidance

OppFi Inc. reported third-quarter revenue of $155.1 million, representing a 13.5% year-over-year increase and setting a new quarterly record for the company. The financial technology platform's performance exceeded analyst expectations across multiple metrics, with adjusted net income reaching $40.7 million and adjusted earnings per share of $0.46, compared to consensus estimates of $28.9 million and $0.32 respectively.

The company's net revenue margin expanded to 67.4% for the quarter, reflecting a 70 basis point improvement from the same period last year. This margin expansion was driven by operating discipline and scale benefits, according to Stonegate Capital Partners' updated coverage report available at https://www.stonegateinc.com. Net income showed substantial growth, increasing 136.9% year-over-year to $75.9 million, primarily due to lower expenses and a $32.0 million non-cash gain from lower warrant fair value.

OppFi's lending operations showed strong momentum with total net originations increasing 12.5% year-over-year to $246.1 million. The growth was driven by stronger consumer demand and credit-model upgrades that enabled larger average loans. Retained net originations grew 8% year-over-year to $215.2 million, while receivables ended the quarter at $481.0 million, representing a 16% increase from the prior year period.

The company's automation improvements were evident in the auto-approval rate, which increased to 79% from 77% in the prior-year period. These enhancements reflect ongoing improvements in risk stratification through OppFi's Model 6 platform. Credit quality showed some softening with the net charge-off rate increasing to 35.1% of total revenue, approximately 100 basis points higher than a year ago, though improved from 42% in the fourth quarter of 2024.

Based on continued strong performance, OppFi raised the low end of its full-year 2025 revenue guidance to $590–$605 million, up from the previous range of $578–$605 million. The company also increased its adjusted net income guidance to $137–$142 million from $125–$130 million and adjusted EPS guidance to $1.54–$1.60 from $1.39–$1.44. The guidance assumes approximately 89.0 million diluted shares outstanding.

Stonegate Capital Partners' valuation analysis, detailed in their research available at https://www.stonegateinc.com/research, uses a price-to-earnings multiple range of 8.5x to 9.5x, resulting in a valuation range of $14.56 to $16.28 with a midpoint of $15.42. The company ended the quarter with $75.2 million in cash and restricted cash, including $45.4 million in unrestricted cash, and maintains total funding capacity of $600.2 million, including $204.2 million in undrawn debt.

Year-to-date free cash flow generation of $66.1 million enabled continued investment in growth initiatives, a $21.7 million special dividend paid in the third quarter, and $7.4 million of share repurchases during the same period. The company also secured a new $150 million Castlelake facility that reduces financing costs by 150 basis points, further strengthening its financial position.