Los Angeles, California--(Newsfile Corp. - May 21, 2025) - Singular Research, a leading provider of independent research on small-cap companies, today released its analysis of Oportun Financial Corporation's (NASDAQ: OPRT) first quarter 2025 financial results.
A link to the report is available here: https://files.constantcontact.com/1683279a601/2d706010-a709-4c43-8de7-4b7083b5cd54.pdf?rdr=true
Key Financial Highlights:
Q1 earnings exceeded expectations as the Company delivered its second consecutive quarter of GAAP profitability
Total revenue for Q1 was $235.9 million
Adjusted EPS for Q1 was $0.40, compared to $0.09 in Q1 2024
Adjusted EBITDA totaled $34 million, compared to $1.9 million in Q1 2024
Operational Analysis:
The Company demonstrated significant improvement in key operational metrics during Q1 2025. Total originations reached $469.3 million, up 38.7% year-over-year, marking the second consecutive quarter of originations growth. The annualized net charge-off rate improved to 12.2%, at the low end of the Company's guidance range.
Cost Management:
Adjusted operating expenses showed substantial improvement at $89 million, down 13% year-over-year. Operating expenses as a percentage of average daily principal balance improved by 160 basis points year-over-year to 13.9% in Q1 2025.
Credit Quality:
The decreasing volume of loans in the back book and strong performance of the front book indicates improving credit quality. The front book demonstrated an annualized net charge-off rate of 11.5% in Q1 2025, slightly above the Company's target range of 9% to 11%. Importantly, the back book continues to decline and was only 4% of the loan portfolio in Q1 2025, expected to further decrease to 1% by year-end.
2025 Outlook Reaffirmed:
Management has reaffirmed its guidance for FY 2025 despite moderating loan originations growth expectations to 10%:
Revenue projected between $945-$970 million
Adjusted EBITDA expected between $135-$145 million (up 34% YOY at midpoint)
Adjusted EPS forecasted between $1.10-$1.30 (up 73% YOY at midpoint)
Net charge-off rate expected at 11.5% (±50 basis points)
The Company expects to achieve GAAP profitability by the end of FY 2025
Unit Economics:
The Company's business model targets a long-term Return on Equity in the range of 20%-28%, which appears achievable as the back book continues to shrink and operating expenses decline further.
Contact:
Singular Research
818-222-6234
research@singularresearch.com
About Singular Research
Singular Research aims to be the most trusted supplier of independent research, providing unbiased research on small-cap companies. Visit www.singularresearch.com for more information.
About Oportun Financial Corporation
Oportun (NASDAQ: OPRT) is a financial services company that leverages its digital platform, proprietary technology, and over 17 years of data to provide hardworking people with responsible, affordable, and empowering alternatives to payday and auto title loans.
Disclaimer: This press release contains forward-looking statements and analysis based on current information. Actual results may differ materially from those projected. For full disclosures, please visit www.singularresearch.com.
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