Business
Oportun Reports Strong Second Quarter 2023 Financial Results
Record revenue of $267 million, 18% year-over-year growth Guiding to lower losses in second half Lowest quarterly operating expense since 2021, 14%
About this update from Oportun Financial Corporation
[{"type":"text","content":"Record revenue of $267 million, 18% year-over-year growth Guiding to lower losses in second half Lowest quarterly operating expense since 2021, 14% year-over-year decline Two new whole loan flow sale agreements totaling up to $700 million executed Total members exceed 2 million SAN CARLOS, CA, Aug. 08, 2023 (GLOBE NEWSWIRE) -- Oportun Financial Corporation (Nasdaq: OPRT) (“Oportun”, or the \"Company\") today reported financial results for the second quarter ended June 30, 2023. \"Our second quarter results marked a significant turning point as our strong top-line performance came in tandem with our lowest quarterly operating expenses since mid-2021, and we met or exceeded each of our guidance metrics,\" said Raul Vazquez, CEO of Oportun. \"We've made great strides in addressing credit losses, and expect to see meaningful declines in loss rates starting with Q3. We also achieved record total revenue of $267 million, representing 18% year-over-year growth, despite a full year under a tightened credit posture. In addition, we demonstrated Oportun’s ability to access diversified sources of capital by completing two new significant financing agreements to sell up to $700 million in personal loan production over the next twelve months. Entering the back-half of 2023 with over two million members, we see the emergence of a leaner, more profitable Oportun. Our revised guidance reflects that we will generate $90 to $95 million in Adjusted EBITDA over the next two quarters, more than we generated over the prior sixteen quarters combined as a public company.\" Second Quarter 2023 Results MetricGAAP Adjusted1 2Q232Q22 2Q232Q22Total revenue$267$226 Net income (loss)$(15)$(9.2) $2.3$3.8Diluted EPS$(0.41)$(0.28) $0.06$0.11Adjusted EBITDA $4.3$(4.5)Dollars in millions, except per share amounts. Business Highlights Members were 2.0 million, an increase of 10% compared to the prior-year quarterProducts were 2.2 million, an increase of 12% compared to the prior-year quarterAggregate Originations were $485M, down 45% compared to the prior-year quarterManaged Principal Balance at End of Period was $3.25B, flat compared to the prior-year quarterAnnualized Net Charge-Off Rate of 12.5% as compared to 8.6% for the prior-year quarter30+ Day Delinquency Rate of 5.3% as compared to 4.3% for the prior-year quarter, and 5.5% in prior-quarter 1 See the sectio...