OppFi, Inc. (NYSE: OPFI) has reported a significant increase in its second-quarter revenue, reaching a record $142.4M, a 12.8% year-over-year growth. This performance, as updated by Stonegate Capital Partners, surpasses both their and consensus estimates, highlighting the company's robust financial health and operational efficiency. The adjusted net income also saw a remarkable increase, setting a new quarterly record at $39.4M, up 59.0% from the previous year, with adjusted EPS rising to $0.45 from $0.29.
The company's success this quarter is attributed to higher receivables, portfolio yield, and an improved net revenue margin, which expanded by 206 basis points year-over-year to 70.4%. Despite a decrease in net income due to a non-cash warrant revaluation, the underlying financial metrics indicate a strong upward trajectory. OppFi's strategic focus on algorithmic credit decisioning, expense discipline, and enhancing credit quality has paid off, with the adjusted net income margin expanding by 810 basis points to 27.7%.
On the liquidity front, OppFi ended the quarter with $78.3M in cash and restricted cash, demonstrating solid financial management. The company's total funding capacity stands at $603.3M, including $219.1M in undrawn debt, providing ample room for future growth initiatives. A notable achievement is the generation of $64.0M in free cash flow during the first half of the year, enabling a $28.1M special dividend payment and the full repayment of its corporate term loan.
Originations have also seen a healthy increase, with total net originations up 14% year-over-year to $233.9M, driven by strong refinancing activity and demand from returning customers. The auto-approval rate improved to 80%, reflecting advancements in automation and risk stratification through OppFi’s Model 6 platform. Credit quality improvements are evident, with the net charge-off rate declining and portfolio yield reaching a company record of 136%.
In light of these positive developments, OppFi has raised its FY25 revenue guidance to $578–$605M and adjusted net income guidance to $125–$130M. This upward revision is based on the company's strong first-half performance and its strategic initiatives aimed at sustaining growth. For more details on OppFi's financial performance and future outlook, visit https://www.oppfi.com.
