Oppfi Inc. · NYSE:OPFI

Oppfi — Q3 2023 Earnings Presentation

27 slides from Oppfi's earnings presentation, Nov 9, 2023

  1. Slide 1: Q3 2023 Earnings Presentation

    A Tech-Enabled, Mission-Driven Specialty Finance Platform that Broadens the Reach of Community Banks to Extend Credit Access to Everyday Americans Q3 2023 Earnings Presentation November 9, 2023

  2. Slide 2: Disclaimer

    Disclaimer This presentation (the “Presentation”) of OppFi Inc. (“OppFi” or the “Company”) is for information purposes only. Certain information contained herein has been derived from sources prepared by third parties. While such information is believed to be reliable for the purposes used herein, t

  3. Slide 3: Q3 2023 Highlights

    Q3 2023 Highlights Net income grew to $15.5 million 7% increase year over year in from net loss of $0.7 million and total revenue adjusted net income1 grew to $13.8 million from $0.8 million Raised full-year guidance for 7%, or 8 percentage point, increase adjusted net income and year over year in y

  4. Slide 4: Key Company Highlights

    Key Company Highlights Profitable Across Solid Revenue CEO and Executive Chairman Business Cycles Growth as Largest Shareholder 8 consecutive years of 45% 5-year CAGR2 Owner / operator dynamic aligns profitability1 incentives to maximize shareholder value Leading Proprietary Significant Scale Except

  5. Slide 5: 60 million U.S. adults lack access to traditional credit

    High Percentage of Americans Lack Savings and/or Credit Access 60 million U.S. 62% of U.S. 43% of U.S. adults consumers adults lack access to live paycheck have savings to traditional credit to paycheck2 cover a $1,000 at choice1 unplanned expense3 1. Hamdani, Kausar, et al. “UNEQUAL ACCESS TO CREDI

  6. Slide 6: OppFi Offers Market Leading Terms & Excellent Customer Experience

    OppFi Offers Market Leading Terms & Excellent Customer Experience Market Leading Terms OppFi Customers Can Use Exceptional Customer Proceeds for any Unexpected Reviews ▪ Simple interest, amortizing installment Expense loans with no balloon payments 4.5/5.0 ▪ No origination, late, or NSF fees Trustpi

  7. Slide 7: OppFi Growth Strategy: Accelerate Profitable Growth

    OppFi Growth Strategy Accelerate Profitable Growth Serve more customers through Drive profitable OppLoans Diversify into new customer new relationships and volume growth and product types via M&A products • Continue to refine and enhance • Acquire platforms or assets • Form new strategic channel und

  8. Slide 8: Q3 2023 Financial Highlights

    Q3 2023 Financial Highlights $15.5M Total Revenue Net Income • Total revenue increased 7% year over year to $13.8M $133M Adj. Net Income1 Net Originations2 $0.13 Basic EPS • Net originations increased 8% year over year to $196M $0.13 Diluted EPS Ending Receivables2 $0.16 • Ending receivables increas

  9. Slide 9: Year to Date 2023 Financial Highlights

    Year to Date 2023 Financial Highlights $37.5M Total Revenue Net Income • Total revenue increased 13% year over year to $34.5M $376M Adj. Net Income1 Net Originations2 $0.29 Basic EPS • Net originations decreased 2% year over year to $556M $0.29 Diluted EPS Ending Receivables2 $0.41 • Ending receivab

  10. Slide 10: Q3 2023 Performance

    Q3 2023 Performance Greater demand led to increased originations and ending receivables year over year. Higher credit quality receivables drove total revenue growth of 7% year over year for Q3. $196 $416 $133 $403 +3% $182 +8% $124 +7% $163 $292 $92 Q3 2021 Q3 2022 Q3 2023 Q3 2021 Q3 2022 Q3 2023 Q3

  11. Slide 11: Year to Date 2023 Performance

    Year to Date 2023 Performance Credit adjustments led to lower YTD net originations year over year. Higher credit quality receivables drove total revenue growth of 13% year over year for the first nine months of the year. $567 $556 $416 $376 -2% $403 +3% $333 +13% $407 $292 $255 YTD 2021 YTD 2022 YTD

  12. Slide 12: Q3 2023 Key Performance Indicators

    Q3 2023 Key Performance Indicators UNAUDITED PERIOD ENDED Key Highlights6 Net originations increased 8% year over year as a result of ($ in millions) 9/30/2023 9/30/2022 increased demand within the tighter credit standards that were enacted with our bank partners mid-year 2022 Net Originations1 $196

  13. Slide 13: Condensed Balance Sheet

    Condensed Balance Sheet UNAUDITED ($ in millions) 9/30/2023 12/31/2022 Key Highlights Assets Total cash increased by $16 million driven by an increase in received Cash and Restricted Cash $66.0 $49.7 payments relative to originated loans Finance Receivables at Fair Value 466.5 457.3 Finance receivab

  14. Slide 14: Reduced Cost of Financing and Strong Balance Sheet to Power Growth

    Expanded funding capacity more Reduced Cost of Financing and than 5x since 2017 Strong Balance Sheet to Power Growth Decreased cost of borrowing Ample debt capacity provides a means to fund anticipated spread by 500+ bps since 2017 short-term future growth without equity Diversified institutional ca

  15. Slide 15: Full Year 2023 Earnings Guidance Raised For Third Time

    Full Year 2023 Earnings Guidance Raised For Third Time $500M to $40M to $0.47 to $520M $42M $0.49 Total Revenue Adjusted Net Income1 Adjusted EPS1,2 Affirmed approximately Raised from Increased from 10% to 15% growth $29 million to $35 million $0.34 to $0.41 Growth Profitability Profitability 1. Non

  16. Slide 16: Appendix

    Appendix 15

  17. Slide 17: Pro Forma Share Count as of September 30, 2023

    Pro Forma Share Count as of September 30, 2023 Share Price Shares Notes $10.00 $12.00 $13.00 $14.00 Class A Common Stock 17,411,842 17,411,842 17,411,842 17,411,842 Class V Common Stock Excludes 25,500,000 shares of Class V Common Stock outstanding with Held for the benefit of Pre-Business 67,680,73

  18. Slide 18: Fair Value Valuation

    Fair Value Valuation Key Highlights UNAUDITED ($ in thousands) 9/30/2023 12/31/2022 Outstanding Principal $415,933 $402,180 • Interest rate increased by 300 bps due to Interest Rate 155.4% 152.4% relative increase in base APR loans in the portfolio and a shift away from states with Discount Rate 26.

  19. Slide 19: Q3 GAAP Income Statement

    Q3 GAAP Income Statement (in Thousands, except share and per share data) Three Months Ended September 30, Variance (Unaudited) 2023 2022 $ % Interest and loan related income $ 132,090 $ 123,605 $ 8,485 6.9% Other revenue 1,075 639 436 68.2% Total revenue 133,165 124,244 8,921 7.2% Change in fair val

  20. Slide 20: Year to Date GAAP Income Statement

    Year to Date GAAP Income Statement (in Thousands, except share and per share data) Nine Months Ended September 30, Variance (Unaudited) 2023 2022 $ % Interest and loan related income $ 373,615 $ 331,814 $ 41,801 12.6% Other revenue 2,410 1,015 1,395 137.4% Total revenue 376,025 332,829 43,196 13.0%

  21. Slide 21: Condensed Balance Sheet

    Condensed Balance Sheet (in Thousands) September 30, December 31, Variance (Unaudited) 2023 2022 $ % Assets Cash and restricted cash $ 66,027 $ 49,670 $ 16,357 32.9% Finance receivables at fair value 466,465 457,296 9,169 2.0% Finance receivables at amortized cost, net 209 643 (434) (67.5%) Other as

  22. Slide 22: Condensed Cash Flow Statement

    Condensed Cash Flow Statement (in Thousands) Nine Months Ended September 30, Variance (Unaudited) 2023 2022 $ % Net cash provided by operating activities $ 213,588 $ 172,263 $ 41,325 24.0% Net cash (used in) investing activities (179,983) (243,445) 63,462 (26.1%) Net cash (used in) provided by finan

  23. Slide 23: Q3 Net Income to Adjusted EBT, Adjusted Net Income and Adjusted EBITDA Reconciliation

    Q3 Net Income to Adjusted EBT, Adjusted Net Income and Adjusted EBITDA Reconciliation (in Thousands, except share and per share data) Three Months Ended September 30, Variance (Unaudited) 2023 2022 $ % Net income (loss) $ 15,532 $ (661) $ 16,193 2449.8% Provision for income taxes 463 1,015 (552) (54

  24. Slide 24: Year to Date Net Income to Adjusted EBT, Adjusted Net Income and Adjusted EBITDA Reconciliation

    Year to Date Net Income to Adjusted EBT, Adjusted Net Income and Adjusted EBITDA Reconciliation (in Thousands, except share and per share data) Nine Months Ended September 30, Variance (Unaudited) 2023 2022 $ % Net income $ 37,538 $ 8,539 $ 28,999 339.6% Provision for income taxes 1,297 1,757 (460)

  25. Slide 25: Q3 and Year to Date Diluted Shares as Reflected in Adjusted Earnings Per Share

    Q3 and Year to Date Diluted Shares as Reflected in Adjusted Earnings Per Share Three Months Ended September 30, (Unaudited) 2023 2022 Weighted average Class A common stock outstanding 16,772,275 13,972,971 Weighted average Class V voting stock outstanding 93,730,327 95,397,996 Elimination of earnout

  26. Slide 26: Q3 Adjusted Earnings Per Share

    Q3 Adjusted Earnings Per Share (in Thousands, except share and per share data) Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 (Unaudited) $ Per Share $ Per Share Weighted average diluted shares outstanding 85,288,105 84,080,808 Net income (loss) $ 15,532 $ 0.18 $ (661) $

  27. Slide 27: Year to Date Adjusted Earnings Per Share

    Year to Date Adjusted Earnings Per Share (in Thousands, except share and per share data) Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 (Unaudited) $ Per Share $ Per Share Weighted average diluted shares outstanding 84,826,413 84,277,277 Net income $ 37,538 $ 0.44 $ 8,539

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