In This Article:
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Revenue: Increased to a record $140 million, up 10% year over year.
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Net Originations: Grew 16% to $189 million.
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Retained Net Originations: Increased 11% to $169 million.
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Net Charge-Off Rate: Improved to 35% as a percentage of revenue, down from 48% the prior year.
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Net Revenue: Increased 44% to $91 million.
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Average Yield: Improved by 630 basis points to a record 136%.
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Total Expenses Before Interest: Declined 18% to $38 million.
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Interest Expense: Reduced to 7% of total revenue, down from 9% the prior year.
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Adjusted Net Income: Increased 285% to $34 million, up from $9 million.
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Adjusted Earnings Per Share: Grew to $0.38 from $0.10 last year.
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Cash Equivalents and Restricted Cash: Ended the quarter with $91 million.
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Total Debt: $288 million.
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Total Stockholders' Equity: $238 million.
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Total Funding Capacity: $616 million, including $237 million in unused debt capacity.
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Full Year 2025 Revenue Guidance: Expected to be $563 million to $594 million, a 7% to 13% increase from 2024.
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Full Year 2025 Adjusted Net Income Guidance: Increased to $106 million to $113 million, a 28% to 37% increase from 2024.
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Full Year 2025 Adjusted EPS Guidance: Expected to be between $1.18 and $1.26.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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OppFi Inc (NYSE:OPFI) reported a record quarter with significant increases in revenue, adjusted net income, and operating margin.
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The company achieved a 16% increase in originations and a 10% increase in revenue year over year.
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OppFi Inc (NYSE:OPFI) improved its net charge-off rate to 35% from 48% the previous year, indicating better credit performance.
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The auto approval rate for loans improved to 79% in Q1 2025, enhancing operational efficiency.
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The company paid off its corporate debt and expanded its blue out facility, strengthening its financial position.
Negative Points
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Despite strong performance, macroeconomic uncertainties such as tariffs and economic volatility remain a concern.
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The company has not committed to a regular quarterly dividend, opting instead for occasional special dividends.
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There is a potential risk associated with the company's focus on inorganic growth opportunities, which may not always yield expected returns.
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The company's reliance on Model 6 for credit risk assessment may face challenges if economic conditions change unexpectedly.
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While the company has improved operational efficiencies, there is ongoing pressure to maintain cost discipline and further enhance efficiency.