Business
Oportun Reports Second Quarter 2024 Financial Results
Met or exceeded each guidance metric Total operating expenses declined 20% year-over-year New collaboration with Western Union to provide lending service
About this update from Oportun Financial Corporation
[{"type":"text","content":"Met or exceeded each guidance metric Total operating expenses declined 20% year-over-year New collaboration with Western Union to provide lending service Signed letter of intent to sell credit card portfolio $245M warehouse facility executed after quarter-end SAN CARLOS, Calif., Aug. 08, 2024 (GLOBE NEWSWIRE) -- Oportun Financial Corporation (Nasdaq: OPRT) (“Oportun”, or the \"Company\") today reported financial results for the second quarter ended June 30, 2024. \"Overall, I'm pleased with our second quarter results and the progress we are making towards our long-term profitability targets. In addition, we performed at the better end or outperformed each of, our guidance metrics as we continued our 2024 business recovery,\" said Raul Vazquez, CEO of Oportun. \"Enhancing our focus on our core products, we signed a non-binding letter of intent to sell our credit card portfolio. While this resulted in a $(36) million mark-to-market impact lowering our quarterly GAAP earnings, we expect the credit card sale to enhance Adjusted EBITDA by approximately $11 million during 2025, following its expected closing by the end of the third quarter of 2024 and subsequent wind-down of operations. We grew second quarter Adjusted EBITDA by 109% year-over-year to $30 million and were profitable on an adjusted basis for the second consecutive quarter. I'm excited that our new lending-as-a-service collaboration with Western Union will enhance Oportun's brand awareness and application funnel while providing us with the potential to reach their millions of customers. Our capital partners have continued to demonstrate confidence in the quality of our loans and business model, as evidenced by our raising a new $245 million warehouse facility since the end of the quarter. Overall, I'm pleased with our second quarter results and year-to-date performance, and I believe we are positioned to improve upon our performance in the second half, most notably with markedly higher adjusted profitability.\" Second Quarter 2024 Results MetricGAAP Adjusted1 2Q242Q23 2Q242Q232Total revenue$250$267 Net income (loss)$(31)$(15) $3.2$6.2Diluted EPS$(0.78)$(0.41) $0.08$0.17Adjusted EBITDA $30$14Dollars in millions, except per share amounts. 1 See the section entitled “About Non-GAAP Financial Measures” for an explanation of non-GAAP measures, and the table entitled “Reconcil...