FAQ on Stonegate Capital Partners' 2Q25 Report Update on OppFi, Inc. (NYSE: OPFI)

Summary
Stonegate Capital Partners has updated its coverage on OppFi, Inc., highlighting a strong quarterly performance with record revenues and adjusted net income, despite a decrease in net income due to non-cash warrant revaluation.
What were OppFi’s reported revenue, adj. Net Income, and adj. EPS for 2Q25?
OppFi reported revenue, adj. Net Income, and adj. EPS of $142.4M, $39.4M, and $0.45, respectively, for 2Q25.
How does OppFi’s 2Q25 performance compare to estimates?
OppFi’s performance compared to estimates was mixed, with revenue slightly below estimates at $142.4M vs. $146.4M/$141.2M, but adj. Net Income and adj. EPS exceeded estimates at $39.4M/$0.45 vs. $26.9M/$26.4M and $0.30/$0.30, respectively.
What contributed to OppFi’s strong performance in 2Q25?
The strong performance was driven by a record total revenue of $142.4M, a 12.8% y/y increase, higher receivables, portfolio yield, and improvements in credit quality and expense discipline.
Why did OppFi’s net income decrease by 58.5% y/y?
The decrease in net income to $11.5M was primarily due to a non-cash warrant revaluation, despite an increase in adjusted net income by 59.0% y/y to $39.4M.
What updates were provided regarding OppFi’s liquidity and balance sheet?
OppFi ended 2Q25 with $78.3M in cash and restricted cash, down from $88.3M in 4Q24, but maintains a total funding capacity of $603.3M, including $219.1M in undrawn debt, and generated $64.0M in free cash flow in 1H25.
How did OppFi’s originations perform in 2Q25?
Total net originations rose 14% y/y to $233.9M, with retained net originations growing 9% y/y to $205.7M, and receivables ending up 13% y/y to $437.8M, driven by strong refinancing activity and increased demand from returning customers.
What improvements were noted in OppFi’s lending standards?
Credit quality improved with the net charge-off rate declining to 31.9%, portfolio yield reaching a record 136%, and recoveries on charged-off accounts increasing 26.7% y/y, due to enhanced underwriting models and a shift toward higher-quality borrowers.
What is OppFi’s updated guidance for FY25?
OppFi raised its FY25 revenue guidance to $578–$605M, adjusted net income guidance to $125–$130M, and adjusted EPS to $1.39–$1.44, based on continued momentum and 1H trends.
How is OppFi’s valuation determined according to the report?
The valuation uses a P/E comp analysis with a P/E multiple range of 9.0x to 11.0x, arriving at a valuation range of $13.11 to $16.02 with a mid-point of $14.57.
Who is Stonegate Capital Partners?
Stonegate Capital Partners is a capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies, with an affiliate offering investment banking services.

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