Oportun Financial to sell its credit card portfolio to Continental Finance

Oportun announced that it has signed a definitive agreement to sell its credit card portfolio to Continental Finance. This transaction reflects a key milestone towards Oportun’s initiative to enhance profitability in 2024 and beyond by simplifying the business and driving performance in its three core products: unsecured personal loans, secured personal loans, and its award-winning Set & Save savings product. The closing date is now anticipated to be on or around November 10, 2024, rather than by the end of the third quarter as indicated on the August 8th second quarter earnings call. Due to the revised closing date, the sale is expected to be accretive by approximately $2M to Adjusted EBITDA in 2024 as compared to the $4M previously indicated. Oportun continues to expect that the transaction will result in Adjusted EBITDA favorability of approximately $11M in 2025.