OppFi Reports Record Third Quarter Net Income and Revenue, Raises Full-Year Earnings Outlook

Net income increased 106.4% year over year to $32.1 million, a Company record for any quarter

Adjusted net income(1) increased 116.2% year over year to $28.8 million, a Company record for any quarter

Basic and diluted EPS of $0.21 and $0.21, respectively

Adjusted EPS(1) increased 112.4% year over year to $0.33

Net charge-off rate as a percentage of total revenue decreased 810 basis points year over year to 34.3%

Average yield, annualized increased by 540 basis points year over year to 133.9%

Total revenue increased 2.6% year over year to $136.6 million, a Company record for any quarter

Adjusted EPS(1) guidance for full-year 2024 increased to $0.85 to $0.87 from $0.73 to $0.75

CHICAGO--(BUSINESS WIRE)--November 07, 2024-- 

OppFi Inc. $(OPFI)$ ("OppFi" or the "Company"), a tech-enabled, mission-driven specialty finance platform that broadens the reach of community banks to extend credit access to everyday Americans, today reported financial results for the third quarter ended September 30, 2024.

"We're proud to report our third quarter 2024 results, in which we achieved the highest total revenue and net income for any quarter in Company history," said Todd Schwartz, Chief Executive Officer and Executive Chairman of OppFi. "The record net income was a result of credit initiatives that continue to drive strong loss, payment, and recovery performance, marketing cost efficiency, and prudent expense discipline across the organization."

"We have continued to demonstrate our commitment to returning value to stockholders by repurchasing an additional $1.0 million of shares of Class A common stock in the third quarter," Schwartz added. "Given our results and current business trends, we have raised full-year earnings guidance for the third time this year and we look forward to ending the year strong."

 
(1) Non-GAAP Financial Measures: Adjusted Net Income and Adjusted EPS are 
financial measures that have not been prepared in accordance with GAAP. See 
"Reconciliation of Non-GAAP Financial Measures" below for a detailed 
description and reconciliation of such Non-GAAP financial measures to their 
most directly comparable GAAP financial measures. 
 

Financial Summary

The following tables present a summary of OppFi's results for the three and nine months ended September 30, 2024 and 2023 (in thousands, except per share data). Certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts.

 
                      Three Months Ended September 30,        Change 
                   --------------------------------------  ------------- 
(unaudited)                  2024               2023             % 
                   ---  --------------      -------------  ------------- 
Total revenue        $         136,593   $        133,165       2.6% 
Net income           $          32,057   $         15,532     106.4% 
Adjusted net 
 income(1,2)         $          28,808   $         13,325     116.2% 
Basic EPS            $            0.21   $           0.13      62.8% 
Diluted EPS(3)       $            0.21   $           0.13      63.6% 
Adjusted 
 EPS(1,2,3)          $            0.33   $           0.16     112.4% 
 
(1) Non-GAAP Financial Measures: Adjusted Net Income and Adjusted EPS 
are financial measures that have not been prepared in accordance with 
GAAP. See "Reconciliation of Non-GAAP Financial Measures" below for a 
detailed description and reconciliation of such Non-GAAP financial 
measures to their most directly comparable GAAP financial measures. 
(2) Beginning with the quarter ended March 31, 2024, for all periods 
presented, the Company has updated its presentation and calculation of 
Adjusted EBT, and the corresponding presentations and calculations of 
Adjusted Net Income and Adjusted EPS, to no longer add back debt 
issuance cost amortization. 
(3) Diluted EPS calculated on a GAAP basis excludes dilutive securities, 
including Class V Voting Stock, restricted stock units, performance 
stock units, and stock options in any periods in which their inclusion 
would have an antidilutive effect. 
 
 
                       Nine Months Ended September 30,        Change 
                    -------------------------------------  ------------- 
(unaudited)                  2024               2023             % 
                    ---  -------------      -------------  ------------- 
Total revenue         $        390,240   $        376,025       3.8% 
Net income            $         69,864   $         37,538      86.1% 
Adjusted net 
 income(1,2)          $         62,370   $         33,048      88.7% 
Basic EPS             $           0.65   $           0.29     126.4% 
Diluted EPS(3)        $           0.65   $           0.29     125.2% 
Adjusted 
 EPS(1,2,3)           $           0.72   $           0.39      85.4% 
 
(1) Non-GAAP Financial Measures: Adjusted Net Income and Adjusted EPS 
are financial measures that have not been prepared in accordance with 
GAAP. See "Reconciliation of Non-GAAP Financial Measures" below for a 
detailed description and reconciliation of such Non-GAAP financial 
measures to their most directly comparable GAAP financial measures. 
(2) Beginning with the quarter ended March 31, 2024, for all periods 
presented, the Company has updated its presentation and calculation of 
Adjusted EBT, and the corresponding presentations and calculations of 
Adjusted Net Income and Adjusted EPS, to no longer add back debt 
issuance cost amortization. 
(3) Diluted EPS calculated on a GAAP basis excludes dilutive securities, 
including Class V Voting Stock, restricted stock units, performance 
stock units, and stock options in any periods in which their inclusion 
would have an antidilutive effect. 
 

Key Performance Metrics

The following table represents key quarterly metrics (in thousands, except percentage metrics). The key performance metrics presented are for the OppLoans product only and exclude the SalaryTap and OppFi Card products.

 
                          As of and for the Three Months Ended, 
                   --------------------------------------------------- 
                     September 30,       June 30,      September 30, 
(unaudited)               2024           2024              2023 
                   ---  --------  ---   -------          --------- 
Total net 
 originations(a)     $   218,801       $205,549       $    195,671 
Total retained 
 net 
 originations(a)     $   198,441       $189,344       $    190,727 
Ending 
 receivables(b)      $   413,714       $387,086       $    415,933 
% of Originations 
 by bank 
 partners                    100%           100%                98% 
Net charge-offs 
 as % of total 
 revenue(c)                   34%            33%                42% 
Net charge-offs 
 as % of average 
 receivables, 
 annualized(c)                46%            44%                55% 
Average yield, 
 annualized(d)               134%           135%               129% 
Auto-approval 
 rate(e)                      77%            76%                73% 
 
(a) Total net originations are defined as gross originations net of 
transferred balance on refinanced loans, while total retained net 
originations are defined as the portion of total net originations with 
respect to which the Company ultimately purchased a receivable from 
bank partners or originated directly. 
(b) Ending receivables are defined as the unpaid principal balances of 
loans at the end of the reporting period. 
(c) Net charge-offs as a percentage of total revenue and net 
charge-offs as a percentage of average receivables represent total 
charge-offs from the period less recoveries as a percentage of total 
revenue and as a percentage of average receivables. Net charge-offs as 
a percentage of average receivables is presented as an annualized 
metric. Finance receivables are charged off at the earlier of the time 
when accounts reach 90 days past due on a recency basis, when OppFi 
receives notification of a customer bankruptcy or is otherwise deemed 
uncollectible. 
(d) Average yield is defined as total revenue from the period as a 
percent of average receivables and is presented as an annualized 
metric. 
(e) Auto-approval rate is calculated by taking the number of approved 
loans that are not decisioned by a loan processor or underwriter 
(auto-approval) divided by the total number of loans approved. 
 

Share Repurchase Program Update

As of September 30, 2024, $16.4 million of the repurchase authorization under OppFi's previously announced Repurchase Program remained available. During the three months ended September 30, 2024, OppFi repurchased 264,995 shares of Class A Common Stock, which were held as treasury stock as of September 30, 2024, for an aggregate purchase price of $1.0 million at an average purchase price per share of $3.82. During the nine months ended September 30, 2024, the Company repurchased 1,034,710 shares of Class A Common Stock, which were held as treasury stock as of September 30, 2024, for an aggregate purchase price of $3.6 million at an average purchase price per share of $3.41.

Full Year 2024 Guidance Update

   -- Affirm total revenue 
 
          -- $510 million to $530 million 
 
   -- Raise adjusted net income 
 
          -- $74 million to $76 million, from previous range of $63 million to 
             $65 million; and 
 
   -- Increase adjusted earnings per share 
 
          -- $0.85 to $0.87 from previous range of $0.73 to $0.75, based on 
             approximate weighted average diluted share count of 86.5 million 

Conference Call

Management will host a conference call today at 9:00 a.m. ET to discuss OppFi's financial results and business outlook. The webcast of the conference call will be made available on the Investor Relations page of the Company's website.

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November 07, 2024 05:30 ET (10:30 GMT)