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Oportun Financial Corp (OPRT)
NASDAQ:OPRT
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Oportun Financial
(NASDAQ:OPRT)
Rating:59Neutral
Price Target:
$7.00
▲( 13.82% Upside)
Positive Factors
Financial Performance
Oportun Financial reported a return to positive GAAP net income due to improving credit trends and operational cost-saving initiatives, leading to better bottom-line performance.
Growth
4Q originations were up 19% year-over-year as the company begins leaning back into growth.
Negative Factors
Debt Concerns
Ongoing operational and liquidity progress comes at a steep cost, with dilution being a significant concern.
Leadership Uncertainty
The announcement of the CFO's retirement and the search for a replacement might bring uncertainty to the company's financial leadership.
Oportun Financial (OPRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$230.63M
Dividend YieldN/A
Average Volume (3M)351.20K
Price to Earnings (P/E)―
Beta (1Y)1.36
Revenue Growth-5.79%
EPS Growth59.24%
CountryUS
Employees2,312
SectorFinancial
Sector Strength82
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.40
Shares Outstanding37,501,163
10 Day Avg. Volume386,855
30 Day Avg. Volume351,200
Financial Highlights & Ratios
PEG Ratio-0.09
Price to Book (P/B)0.77
Price to Sales (P/S)0.00
P/FCF Ratio0.68
Enterprise Value/Market Cap13.07
Enterprise Value/Revenue0.80
Enterprise Value/Gross Profit3.57
Enterprise Value/Ebitda-9.91
Forecast
1Y Price Target
$9.00Price Target Upside46.34% Upside
Rating ConsensusHold
Number of Analyst Covering4
Oportun Financial Business Overview & Revenue Model
Company DescriptionOportun Financial Corporation (OPRT) is a financial services company that provides inclusive, affordable financial solutions to underserved communities. Headquartered in San Carlos, California, Oportun specializes in offering personal loans, credit cards, and other financial products designed to help individuals with limited or no credit history gain access to credit and improve their financial health. The company leverages advanced data analytics and artificial intelligence to assess creditworthiness, thereby enabling them to extend credit to a broader segment of the population.
How the Company Makes MoneyOportun Financial makes money primarily through interest income earned on its portfolio of personal loans and credit card products. The company charges interest on the loans it provides, which constitutes a significant portion of its revenue. Additionally, Oportun may collect fees associated with loan origination and late payment penalties. The company also benefits from partnerships with retail and financial institutions, which help expand its reach and customer base. Oportun's use of advanced technology to assess credit risk allows it to efficiently manage its lending operations while minimizing default rates, contributing to its overall profitability.
Oportun Financial Financial Statement Overview
Summary
Oportun Financial faces profitability challenges with a declining revenue trend and negative net income, despite strong gross margins and effective cash flow management. The company has reduced its debt, improving leverage, but the persistent negative net income highlights ongoing financial risks.Income Statement
Oportun Financial's income statement shows a decline in total revenue from $1,056 million in 2023 to $1,001 million in TTM (Trailing-Twelve-Months) 2024, indicating a negative revenue growth rate. The gross profit margin is notably high at 100.18%, but the net profit margin is negative at -7.85%, indicating ongoing profitability issues. The EBIT margin, though positive at 36.52%, is offset by a negative net income, highlighting challenges in covering expenses beyond operating income.50
Neutral
Balance Sheet
The balance sheet reveals a debt-to-equity ratio of 0.05 for TTM 2024, indicating low leverage, but this is primarily due to a significant reduction in total debt. The return on equity remains negative, aligning with the net income loss. The equity ratio is 10.97%, reflecting a modest proportion of equity in total assets, which suggests a moderate risk level in terms of financial stability.45
Neutral
Cash Flow
Cash flow analysis indicates a stable operating cash flow of $390 million in TTM 2024, with a free cash flow growth rate of 4.34% year over year. The operating cash flow to net income ratio is negative, due to negative net income, but free cash flow is strong, suggesting effective cash management despite profitability challenges.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.00B | 1.06B | 640.70M | 530.40M | 335.10M | Gross Profit |
| 1.00B | 1.06B | 640.70M | 530.40M | 335.10M | EBIT |
| 591.40M | -198.77M | 17.76M | 62.80M | -58.10M | EBITDA |
| 0.00 | -198.77M | 0.00 | 89.90M | -37.87M | Net Income Common Stockholders |
| -78.68M | -179.95M | -77.80M | 47.41M | -45.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 59.97M | 91.19M | 98.82M | 131.00M | 136.20M | Total Assets |
| 3.23B | 3.41B | 3.61B | 2.95B | 2.01B | Total Debt |
| 2.82B | 2.94B | 2.97B | 2.21B | 1.46B | Net Debt |
| 2.76B | 2.85B | 2.87B | 2.08B | 1.33B | Total Liabilities |
| 2.87B | 3.01B | 3.07B | 2.34B | 1.54B | Stockholders Equity |
| 353.81M | 404.40M | 547.60M | 603.80M | 466.30M |
| Cash Flow | Free Cash Flow | |||
| 374.33M | 361.50M | 199.00M | 136.90M | 126.30M | Operating Cash Flow |
| 393.52M | 392.76M | 247.90M | 163.40M | 152.90M | Investing Cash Flow |
| -193.69M | -286.18M | -1.17B | -884.80M | 16.40M | Financing Cash Flow |
| -191.22M | -104.39M | 934.50M | 745.70M | -136.80M |
Oportun Financial Technical Analysis
Positive
6.15
Price Trends
5.54
Positive
5.45
Positive
4.26
Positive
Market Momentum
0.36
Positive
51.63
Neutral
6.96
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPRT, the sentiment is Positive. The current price of 6.15 is below the 20-day moving average (MA) of 6.16, above the 50-day MA of 5.54, and above the 200-day MA of 4.26, indicating a neutral trend. The MACD of 0.36 indicates Positive momentum. The RSI at 51.63 is Neutral, neither overbought nor oversold. The STOCH value of 6.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OPRT.
Oportun Financial Risk Analysis
Oportun Financial disclosed 69 risk factors in its most recent earnings report. Oportun Financial reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Oportun Financial Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $214.24M | 5.76 | 10.39% | 4.55% | 13.93% | -23.70% | |
71 Outperform | $260.91M | 7.99 | 9.51% | 4.56% | 6.57% | 44.84% | |
64 Neutral | $12.67B | 9.74 | 7.58% | 17015.08% | 12.21% | -6.96% | |
64 Neutral | $189.08M | 11.02 | 6.69% | ― | 9.56% | -58.56% | |
59 Neutral | $230.63M | ― | -11.37% | ― | -5.79% | 59.24% | |
58 Neutral | $228.04M | 4.09 | 21.28% | ― | 4712.71% | ― | |
56 Neutral | $1.13B | 22.18 | 3.86% | ― | 5.72% | 31.82% |
* Financial Sector Average
Performance Comparison
OPRT
Oportun Financial
6.15
2.77
81.95%
CPSS
Consumer Portfolio Services
8.77
0.84
10.59%
MFIN
Medallion Financial
9.22
1.29
16.27%
RM
Regional Management
26.30
-0.17
-0.64%
LC
LendingClub
9.86
0.85
9.43%
FOA
Finance of America Companies
20.62
14.81
254.91%
Oportun Financial Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 0.00%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance in terms of profitability, credit performance, and disciplined expenses, despite a decline in total revenue and a cautious approach to origination growth due to macroeconomic uncertainties.Q1-2025 Updates
Positive Updates
GAAP Profitability Achieved
Oportun was GAAP profitable for the second consecutive quarter with a net income of $9.8 million, a $36 million improvement year-over-year, driving an ROE of 11%.
Strong Credit Performance
Annualized net charge-off rate was 12.2%, at the low end of guidance, with dollar net charge-offs down year-over-year for the sixth consecutive quarter. 30-plus day delinquency rate improved to 4.7%, marking a decline of 56 basis points year-over-year.
Robust Origination Growth
Originations were $469 million during Q1, up 39% year-over-year, driven by secured personal loans which accounted for 19% of personal loan growth.
Expense Discipline and Reduction
Operating expenses were reduced by 15% year-over-year to $93 million, while marketing expenditures were increased by 24% to drive origination growth.
Improved Adjusted EBITDA
Adjusted EBITDA was $34 million, a significant increase of $32 million year-over-year, driven by cost reductions and credit performance improvement.
Negative Updates
Decline in Total Revenue
Total revenue of $236 million declined by $15 million or 6% year-over-year, primarily due to the absence of $11 million of credit card revenue from the prior year.
Reduced Origination Growth Outlook
The full-year 2025 originations growth outlook was moderated to approximately 10%, down from the prior 10% to 15% range due to macroeconomic uncertainty.
Company Guidance
During the Oportun Financial First Quarter 2025 Earnings Conference Call, the company provided guidance with several key metrics. They reported a GAAP net income of $9.8 million, marking a $36 million year-over-year improvement and driving a return on equity (ROE) of 11%. Additionally, adjusted net income was $19 million, up by $15 million from the previous year. The company achieved $34 million in adjusted EBITDA, a $32 million increase year-over-year. Oportun's annualized net charge-off rate was reported at 12.2%, at the low end of their guidance range, with a 30-plus day delinquency rate of 4.7%. Originations in the first quarter were $469 million, a 39% increase year-over-year, though they adjusted their full-year 2025 originations growth outlook to approximately 10%. Operating expenses were reduced by 15% year-over-year to $93 million. For the full year 2025, Oportun reiterated guidance for total revenue between $945 million to $970 million, with an adjusted EPS expectation of $1.10 to $1.30, reflecting growth of 53% to 81% compared to 2024's adjusted EPS of $0.72.Oportun Financial Corporate Events
Executive/Board Changes
Oportun Financial Appoints CEO as Financial Officer
Neutral
Apr 30, 2025
On April 28, 2025, Oportun Financial Corporation’s board appointed CEO Raul Vazquez as the principal financial officer and principal accounting officer. This move consolidates leadership roles within the company, although it does not involve any changes to Vazquez’s compensation or suggest any new related party transactions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.