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1. Company Snapshot

1.a. Company Description

Oportun Financial Corporation provides financial services.It offers personal loans, auto loans, and credit cards.The company serves customers online and over-the-phone, as well as through retail locations.


It operates in 24 states in the United States, which include Arkansas, Delaware, Indiana, Kentucky, Mississippi, Montana, North Dakota, New Hampshire, Oregon, South Carolina, South Dakota, and Virginia.Oportun Financial Corporation was founded in 2005 and is headquartered in San Carlos, California.

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1.b. Last Insights on OPRT

Oportun Financial Corporation's recent performance was negatively impacted by decreasing tangible book value per share, primarily due to warrant exercises. Despite achieving three consecutive quarters of GAAP profitability and reduced delinquency rates, the company's stock faced challenges. However, Oportun completed several asset-backed securitizations, including a $538 million and a $441 million transaction, demonstrating its access to low-cost funding. Additionally, the company reduced operating expenses by 11% year-over-year, supporting margin expansion. Its Q3 2025 earnings call revealed a GAAP net income of $5.2 million, reflecting a $35 million year-over-year improvement.

1.c. Company Highlights

2. Oportun Financial's Strong Q3 2025 Earnings: A Story of Disciplined Execution

Oportun Financial's third-quarter 2025 results were impressive, with GAAP profitability for the fourth consecutive quarter. The company's net income was $5.2 million, up $35 million year-over-year, with an ROE of 5%, up 40 percentage points. Adjusted EBITDA was $41 million, up $10 million year-over-year, driven by cost reductions and credit performance improvement. The actual EPS came out at $0.39, beating estimates at $0.26. Revenue was not explicitly mentioned but the company guided for full-year 2025 total revenue of $950 million to $955 million.

Publication Date: Nov -24

📋 Highlights
  • GAAP Profitability & ROE Growth: Achieved $5.2M net income (up $35M YoY) with a 5% ROE (up 40 percentage points), marking the fourth consecutive quarter of GAAP profitability.
  • Expense Reduction & Efficiency: Operating expenses fell 11% YoY to $91M, with full-year 2025 guidance at $370M (a $40M improvement over 2024) and an adjusted OpEx ratio of 12.6% of the portfolio.
  • Credit Performance & Risk Management: Annualized net charge-offs at 11.8% (down 44 bps YoY) and 30-day delinquency at 4.7%, supported by credit tightening and disciplined originations of $512M (+7% YoY).
  • Capital Structure Optimization: Debt-to-equity ratio reduced to 7.1x from 8.7x, with ABS financings at <6% yields and adjusted EBITDA up $10M YoY to $41M.
  • Guidance & Growth Prospects: Raised 2025 adjusted EPS guidance to $1.30-$1.40 (+4% at midpoint) and full-year revenue guidance to $950M-$955M, with adjusted EBITDA of $137M-$143M (34% YoY growth midpoint).

Credit Performance and Origination Growth

Credit performance improved, with an annualized net charge-off rate of 11.8% and a 30-plus day delinquency rate of 4.7%, down 44 basis points year-over-year. The company took additional credit tightening actions during the quarter, which led to slightly lower originations. Originations were $512 million, up 7% year-over-year, with a focus on members with higher free cash flow and channels that deliver strong results.

Capital Structure and Expense Management

The company strengthened its capital structure by executing ABS financings at weighted average yields below 6% and proactively repaying higher-cost corporate debt. The debt-to-equity ratio was 7.1x, down significantly from 8.7x in the prior year quarter. Operating expenses were $91 million, down 11% year-over-year, and the company expects full-year 2025 GAAP operating expenses of approximately $370 million, a $40 million improvement from 2024.

Guidance and Valuation

The company raised its full-year adjusted EPS guidance to $1.30-$1.40 per share, up 4% at the midpoint, reflecting strong year-over-year growth of 81%-94%. Analysts estimate next year's revenue growth at 4.8%. With a P/E Ratio of 7.13 and an ROE of 8.27%, the company's valuation appears reasonable. The P/B Ratio is 0.57, indicating that the stock may be undervalued. The EV/EBITDA ratio is 1.9, suggesting a relatively low valuation compared to its earnings.

Consumer Behavior and Growth Prospects

Oportun's data shows that people are still resilient but with pressure points, such as inflation and wage growth disparities. The company has been focusing on decreasing average loan size and has seen positive trends in repayment rates. The secured personal loan portfolio grew 48% year-over-year to $209 million, representing 8% of the portfolio. Oportun plans to continue to focus on secured personal lending as a pillar of growth in 2026.

3. NewsRoom

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Oportun Financial: Trading At A Discount To Book Value Amid Macro Uncertainty

Nov -27

Source: seekingalpha.com

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MULTIMEDIA UPDATE - Holiday Savings Surge: Oportun Reports $6.5 Million Saved for 2025, Up 30% From 2024

Nov -19

Source: globenewswire.com

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Holiday Savings Surge: Oportun Reports $6.5 Million Saved for 2025, Up 30% From 2024

Nov -19

Source: globenewswire.com

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Oportun Financial Corporation (OPRT) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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Oportun Financial Corporation (OPRT) Q3 Earnings Surpass Estimates

Nov -05

Source: zacks.com

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Oportun Delivers Fourth Consecutive Quarter of GAAP Profitability, Increases Full-Year 2025 Adjusted EPS Guidance

Nov -04

Source: globenewswire.com

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Oportun to Report Third Quarter 2025 Financial Results on Tuesday, November 4, 2025

Oct -21

Source: globenewswire.com

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Oportun Completes $441 Million Asset Backed Securitization

Oct -20

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.00%)

6. Segments

Banking and Related Activities

Expected Growth: 12%

Oportun Financial Corporation's 12% growth in Banking and Related Activities is driven by increasing demand for affordable credit solutions, expansion into new markets, and strategic partnerships. Additionally, the company's AI-driven lending platform and commitment to financial inclusion have contributed to its growth. Furthermore, the rise of digital banking and mobile payments has also fueled the segment's growth.

7. Detailed Products

Personal Loans

Oportun Financial Corporation offers personal loans with affordable interest rates and flexible repayment terms, allowing customers to borrow money for various personal expenses.

Auto Loans

Oportun Financial Corporation provides auto loans for customers to purchase or refinance a vehicle, with competitive interest rates and flexible repayment options.

Credit Cards

Oportun Financial Corporation offers credit cards with no annual fee, competitive interest rates, and rewards programs, allowing customers to build credit and earn rewards.

Insurance Services

Oportun Financial Corporation offers insurance services, including life insurance, accident insurance, and involuntary unemployment insurance, to protect customers and their families.

8. Oportun Financial Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Oportun Financial Corporation operates in a niche market, providing financial services to underserved communities. While there are some substitutes available, such as traditional banks and credit unions, Oportun's unique value proposition and focus on financial inclusion mitigate the threat of substitutes.

Bargaining Power Of Customers

Oportun's customers are largely individuals and small businesses with limited bargaining power. The company's focus on financial inclusion and provision of essential financial services reduces the bargaining power of customers.

Bargaining Power Of Suppliers

Oportun Financial Corporation has a diversified supplier base, and its suppliers have limited bargaining power. The company's scale and operational efficiency also reduce its dependence on individual suppliers.

Threat Of New Entrants

While there are some barriers to entry in the financial services industry, new entrants can still disrupt the market. Oportun's established brand, operational efficiency, and focus on financial inclusion provide some protection against new entrants.

Intensity Of Rivalry

The financial services industry is highly competitive, with many established players and new entrants vying for market share. Oportun Financial Corporation faces intense competition from traditional banks, fintech companies, and other financial institutions.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 87.85%
Debt Cost 8.61%
Equity Weight 12.15%
Equity Cost 9.58%
WACC 8.72%
Leverage 722.78%

11. Quality Control: Oportun Financial Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Oportun Financial

A-Score: 5.1/10

Value: 9.4

Growth: 3.3

Quality: 6.0

Yield: 0.0

Momentum: 10.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Green Dot

A-Score: 4.5/10

Value: 9.1

Growth: 2.9

Quality: 4.9

Yield: 0.0

Momentum: 7.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Mill City Ventures III

A-Score: 4.2/10

Value: 1.6

Growth: 5.4

Quality: 8.2

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
PRA Group

A-Score: 4.2/10

Value: 9.3

Growth: 2.6

Quality: 7.9

Yield: 0.0

Momentum: 1.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Consumer Portfolio Services

A-Score: 3.8/10

Value: 7.3

Growth: 5.0

Quality: 4.8

Yield: 0.0

Momentum: 2.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Open Lending

A-Score: 1.5/10

Value: 4.6

Growth: 0.7

Quality: 1.4

Yield: 0.0

Momentum: 0.5

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.33$

Current Price

5.33$

Potential

-0.00%

Expected Cash-Flows