Business
Oportun Announces Definitive Agreement to Sell its Credit Card Portfolio
SAN CARLOS, Calif., Sept. 25, 2024 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT), a mission-driven financial services company, today announced that it has signed
About this update from Oportun Financial Corporation
[{"type":"text","content":"SAN CARLOS, Calif., Sept. 25, 2024 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT), a mission-driven financial services company, today 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 $2 million to Adjusted EBITDA in 2024 as compared to the $4 million previously indicated. Oportun continues to expect that the transaction will result in Adjusted EBITDA favorability of approximately $11 million in 2025. \"We’re pleased to have signed a definitive agreement to sell our credit card portfolio to Continental Finance, a leading U.S. credit card marketer and servicer,\" said Jonathan Coblentz, Chief Financial Officer & Chief Administrative Officer of Oportun. \"This transaction underscores our commitment to focus on winning in the marketplace with our core product lines, thereby enhancing the value we can deliver to our shareholders.\" Tamer El-Rayess, Continental Finance’s Chairman of the Board, said \"Continental Finance is excited to enter into an agreement to acquire Oportun’s Visa credit card portfolio with its partner bank, The Bank of Missouri. The Continental Finance team will be collaborating with the Oportun team to ensure a seamless transition of their customers onto our platform. Our goal is to continue to provide exceptional, personalized service to these valued customers for many years to come.\" About OportunOportun (Nasdaq: OPRT) is a mission-driven financial services company that puts its members' financial goals within reach. With intelligent borrowing, savings, and budgeting capabilities, Oportun empowers members with the confidence to build a better financial future. Since inception, Oportun has provided more than $18.7 billion in responsible and affordable credit, saved its members more than $2.4 billion in in...