Curated News
By: NewsRamp Editorial Staff
October 31, 2025

OppFi Soars with Record Q3 Results, Raises 2025 Guidance

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Original Source

TLDR

  • OppFi's strong quarterly performance with record revenue and increased guidance offers investors potential advantage through improved profitability and shareholder returns.
  • OppFi achieved 13.5% revenue growth through credit-model upgrades, operational discipline, and scale benefits while maintaining stable lending standards and funding capacity.
  • OppFi's improved auto-approval rates and responsible lending practices help provide financial access to underserved customers while generating sustainable growth.
  • OppFi's Model 6 platform achieved a 79% auto-approval rate while reducing financing costs by 150 basis points through new funding arrangements.

Impact - Why it Matters

This financial performance demonstrates OppFi's growing strength in the competitive fintech lending space, particularly in serving non-prime borrowers. For investors, the substantial earnings beat and raised guidance signal strong operational execution and sustainable growth potential in a challenging economic environment. For the broader financial services industry, OppFi's success with its Model 6 platform and risk-based pricing approach shows how technology-driven underwriting can effectively serve underserved consumer segments while maintaining profitability. The company's ability to generate significant free cash flow while expanding originations suggests a scalable business model that could influence how traditional lenders approach the non-prime market. For consumers, OppFi's performance indicates continued access to credit options through innovative fintech solutions that balance risk management with customer accessibility.

Summary

Stonegate Capital Partners has released an updated coverage report on OppFi Inc. (NYSE: OPFI), highlighting the financial technology company's impressive third-quarter 2025 performance. The report reveals that OppFi achieved record-breaking results with revenue of $155.1 million, adjusted net income of $40.7 million, and adjusted EPS of $0.46, all significantly exceeding analyst expectations. The company demonstrated strong year-over-year growth with revenue increasing 13.5% and adjusted net income surging 41.0%, while adjusted EPS rose from $0.33 to $0.46 compared to the prior-year period. These outstanding results were driven by multiple factors including record total revenue, growth in originations from new customers, operational discipline, and scale benefits that contributed to a net revenue margin of 67.4%, representing a 70 basis point expansion year-over-year.

Beyond the headline financial metrics, OppFi showed robust operational strength across multiple dimensions. The company maintained solid liquidity with $75.2 million in cash and restricted cash, including $45.4 million in unrestricted cash, while boasting a total funding capacity of $600.2 million. OppFi generated $66.1 million in free cash flow year-to-date, enabling strategic investments in growth, a $21.7 million special dividend payment in the third quarter, and $7.4 million in share repurchases. The company's lending operations showed strong momentum with total net originations increasing 12.5% year-over-year to $246.1 million, driven by enhanced demand and credit-model upgrades that enabled larger average loans. The auto-approval rate improved to 79%, reflecting ongoing automation enhancements through OppFi's Model 6 platform, while receivables grew 16% year-over-year to $481.0 million.

Looking forward, OppFi has raised its full-year 2025 guidance based on continued positive momentum, increasing the low end of revenue guidance to $590–$605 million from $578–$605 million. The company also boosted adjusted net income guidance to $137–$142 million and adjusted EPS to $1.54–$1.60. Stonegate Capital Partners' valuation analysis suggests a price target range of $14.56 to $16.28 with a midpoint of $15.42, based on a P/E multiple range of 8.5x to 9.5x. The report indicates that OppFi remains well-positioned to meet or exceed its updated guidance, supported by strategic initiatives including a new $150 million Castlelake facility that reduces financing costs by 150 basis points and the ongoing rollout of the Model 6.1 refit designed to tighten higher-risk segments while sustaining growth momentum.

Source Statement

This curated news summary relied on content disributed by Reportable. Read the original source here, OppFi Soars with Record Q3 Results, Raises 2025 Guidance

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