DALLAS, TX -- March 5th, 2025 -- OppFi, Inc. (NYSE: OPFI) : Stonegate Capital Partners Updates Coverage on OppFi (NYSE: OPFI). OPFI reported revenue, adj. Net Income, and adj. EPS of $135.7M, $20.3M, and $0.23, respectively. This compares to our/consensus estimates of $133.3M/$133.5M, $12.7M/$12.6M, and $0.14/$0.15.Net revenue margin was 59.5% for the quarter, which was a year over year margin expansion of 1,000 bps from 4Q23. This quarter’s strong performance was driven by record total revenue of $135.7M, a 2.1% y/y increase, coupled with significant improvements in net income, which grew by 619.7% y/y to ~$14.0M, setting new records for the Company. Additionally, The Company achieved an adj. net income of $20.3M, marking a 140.3% increase from the prior year. When looking at the full year, total revenue increased 3.3% from FY23 and adj. net income grew by ~100%. We anticipate this momentum to continue in 2025, supported by OppFi’s strategic focus on operational efficiencies and credit risk management. 

Company Updates:

Liquidity and Balance Sheet: OPFI ended 4Q24 with $88.3M in cash and restricted cash, an increase of $14.3M from 4Q23. The Company had an additional $206.2M in unused debt capacity, bringing total funding capacity to $613.3M. This robust liquidity position allows OPFI to remain flexible when making capital allocation decisions to support growth initiatives. Key capital allocation decisions made subsequent to quarter end include the repayment of the remaining $30.0M in corporate term loan debt outstanding. Lastly, during 2024, OppFi repurchased $3.6M worth of Class A common stock at an average price of $3.41 per share.

Originations: Total net originations for the quarter were $214.0M, reflecting an 11% y/y increase, driven by the expansion of bank partnerships into additional states and enhanced lead evaluation capabilities. Notably, the auto-approval rate rose to 79%, compared to 73% in the same quarter last year, further demonstrating the effectiveness of OPFI’s algorithmic automation in the underwriting process. Lastly, we note that ending receivables reached $425.0M, a 2% increase from the previous year.

Lending Standards: Charge-offs as a percentage of total revenue declined to 42% in 4Q24, an improvement from 46% in the prior year. This reduction was attributed to a healthier portfolio composition and improved credit modeling as the Company is now using Model 6 to increase auto approvals and identify strong credit quality borrows. We expect the Company to continue focusing on higher-quality borrows going through FY25.

Guidance: In 4Q24, OppFi has provided full-year 2025 revenue guidance of $563.0M to $594.0M, representing a 7%-13% y/y increase. Adjusted net income is projected to range between $95.0M and $97.0M, reflecting a 15%- 17% annual growth. Adjusted EPS is expected to be between $1.06 and $1.07, an increase of 11%-13% from 2024. We note that the Company remains well-positioned to meet these targets, supported by disciplined cost management and continued demand for its products. We believe OppFi is positioned to meet its guidance and have adjusted our model accordingly.

Valuation: We use a P/E comp analysis to guide our valuation. Our valuation relies on a P/E multiple range of 8.5x to 9.5x with a midpoint of 9.0x This arrives at a valuation range of $9.95 to $11.12 with a mid-point of $10.54.

About Stonegate
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.

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