OppFi Reports Record Q3 2024 Results, Raises Full-Year Guidance
TL;DR
Investors can benefit from OppFi's impressive financial performance, setting new records and projecting sustained growth.
OppFi's revenue, net income, and EPS exceeded estimates, demonstrating strategic initiatives for profitability and growth.
OppFi's success in managing credit quality and increasing originations without raising costs benefits customers and shareholders.
Stonegate Capital Partners updates coverage on OppFi, revealing impressive financial results and strategic initiatives for sustained growth.
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OppFi, Inc. (NYSE: OPFI) has announced impressive third-quarter results for 2024, marking a significant milestone in the company's financial performance. The fintech firm reported revenue of $136.6 million, adjusted net income of $31.5 million, and adjusted earnings per share (EPS) of $0.36, all exceeding analyst expectations.
The company's strong performance is attributed to substantial increases in both total revenue and net income, with net revenue margin expanding by 992 basis points year-over-year to 66.7%. This growth trajectory is expected to continue through the remainder of 2024, as OppFi focuses on strategic initiatives to enhance profitability and drive sustainable growth.
OppFi's liquidity position remains robust, with $273.6 million available at the end of the quarter, providing flexibility for potential shareholder value returns and growth initiatives. The company's originations have also shown improvement, with total net originations reaching $218.8 million, up from both the previous quarter and the same period last year. Notably, the auto-approval rate increased to 77%, indicating improved operational efficiency.
Credit quality management has been a key focus for OppFi, with charge-offs as a percentage of total revenue decreasing to 34.3%, down from 42% in the same quarter last year. This demonstrates the company's ability to grow revenues while effectively managing risk, particularly important as upmarket banks tighten their credit standards.
In light of these strong results, OppFi has raised its full-year guidance for adjusted net income to a range of $74 million to $76 million, up from the previous $63 million to $65 million. Adjusted EPS guidance has also been increased to a range of $0.85 to $0.87. The company maintained its revenue guidance at $510 million to $530 million for the full year.
The implications of OppFi's performance are significant for the fintech industry and investors. The company's ability to grow profitably in a challenging economic environment showcases the resilience of its business model and the demand for its financial products. As traditional banks tighten lending criteria, OppFi's focus on underserved markets positions it well for continued growth. The raised guidance suggests management's confidence in the company's trajectory, which could potentially lead to increased investor interest and valuation in the near term.
Curated from Reportable
