Los Angeles, California--(Newsfile Corp. - December 18, 2024) - Singular Research highlights Oportun Financial Corp (NASDAQ: OPRT), a leading financial services provider focused on credit solutions for underserved markets. Following an exceptional Q3 2024 performance, Oportun demonstrated significant financial improvements and operational efficiencies.
Highlights from the Q3 2024 Update
Solid Financial Results: Oportun achieved $31 million in adjusted EBITDA, up 117% year-over-year, driven by lower net charge-offs and cost reductions. Adjusted net income reached $0.9 million or $0.02 per share, marking a return to profitability.
Improved Credit Metrics: Annualized net charge-off rate decreased to 11.9%, with the front book loans performing within the target range of 9%-11%.
Growth in Loan Originations: Loan originations for the quarter totaled $480 million, a flat performance year-over-year but a milestone following prior declines.
Operational Efficiency: Adjusted operating expenses decreased by 17% year-over-year, demonstrating strong cost management.
Outlook for Q4 and FY:25
Q4 2024 Expectations: Loan originations are projected to grow by 10% year-over-year, with revenues estimated between $246-$250 million. Adjusted EBITDA guidance is set at $28-$30 million.
FY:25 Preliminary Guidance: The company anticipates continued growth in loan originations, positioning Oportun for significant expansion.
Investment Thesis
Oportun Financial Corp leverages AI-driven technology and proprietary credit assessment algorithms to address a significant gap in financial services for low-to-moderate-income individuals. This unique capability enables the company to deliver cost-effective and scalable credit solutions, enhancing financial inclusion for underserved markets.
Singular Research highlights Oportun's robust financial turnaround, strong credit quality, and long-term target return on equity (ROE) as key drivers of value.
Read the Full Report Here: Q3 2024 Oportun Financial Report
About Singular Research
Singular Research is a leading provider of independent equity research for underfollowed small and micro-cap public companies. We provide unbiased, high-quality equity research aimed at identifying value and growth opportunities.
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Singular Research
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Disclaimer: This report is for informational purposes only and is not a solicitation to buy or sell any securities.
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