Slide 1: Q2 2023 Earnings Presentation
A Mission-Driven Fintech Platform that Helps Everyday Americans Gain Access to Credit with Specialty Finance Products Q2 2023 Earnings Presentation August 9, 2023
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
Slide 3: Q2 2023 Highlights
Q2 2023 Highlights Net income grew 90% year over 14% increase year over year in year to $18.1 million and adjusted total revenue net income1 increased 138% year over year to $16.3 million Raised full-year guidance for 23% decrease year over year in adjusted net income and marketing cost per funded l
Slide 4: Key Company Highlights
Key Company Highlights Profitable Across Solid Revenue CEO and Executive Chairman as Business Cycles Growth Largest Shareholder 8 consecutive years of 45% 5-year CAGR2 Owner / operator dynamic aligns profitability1 incentives to maximize shareholder value Leading Proprietary Credit Significant Scale
Slide 5: High Percentage of Americans Lack Savings and/or Credit Access
High Percentage of Americans Lack Savings and/or Credit Access 60 million U.S. 61% 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 4 1. Hamdani, Kausar, et al. “UNEQUAL ACCESS TO CRE
Slide 6: OppFi Advantage: Market Leading Terms and Excellent Customer Experience
OppFi Advantage: Market Leading Terms and Excellent Customer Experience Traditional financing options for the underbanked have been limited, with exorbitant interest rates and poor customer service Market Leading Terms OppFi customers can use proceeds for any unexpected expense ▪ Simple interest, am
Slide 7: OppFi Growth Strategy: Accelerate Profitable Growth
OppFi Growth Strategy Accelerate Profitable Growth Drive profitable core product Diversify into new customer Expand relationships volume growth and product types via M&A to serve more consumers • Acquire platforms or assets • Form new strategic channel • Continue to refine and providing accessible c
Slide 8: Q2 2023 Financial Highlights
Q2 2023 Financial Highlights $18.1M Total Revenue Net Income • Total revenue increased 14% year over year to $16.3M $122M Adj. Net Income1 Net Originations2 $0.14 Basic EPS • Net originations decreased 11% year over year to $201M $0.14 Diluted EPS Ending Receivables2 $0.19 • Ending receivables stead
Slide 9: Year to Date (YTD) 2023 Financial Highlights
Year to Date (YTD) 2023 Financial Highlights $22.0M Total Revenue Net Income • Total revenue increased 16% year over year to $20.7M $243M Adj. Net Income1 Net Originations2 $0.16 Basic EPS • Net originations decreased 6% year over year to $360M $0.16 Diluted EPS Ending Receivables2 $0.24 • Ending re
Slide 10: Q2 2023 Performance
Q2 2023 Performance Credit adjustments led to lower net originations. Despite relatively flat receivables, higher portfolio credit quality drove total revenue growth of 14% year over year. $225 $396 $398 $122 +0% $201 -11% $108 +14% $144 $260 $78 Q2 2021 Q2 2022 Q2 2023 Q2 2021 Q2 2022 Q2 2023 Q2 20
Slide 11: Year to Date (YTD) 2023 Performance
Year to Date (YTD) 2023 Performance Credit adjustments led to lower net originations. Despite relatively flat receivables, higher portfolio credit quality drove total revenue growth of 16% year over year for the first half of the year. $385 $396 $398 $243 $360 -6% +0% $209 +16% $260 $163 $244 YTD 20
Slide 12: Q2 2023 Key Performance Indicators
Q2 2023 Key Performance Indicators UNAUDITED PERIOD ENDED Key Highlights6 ($ in millions) 6/30/2023 6/30/2022 Net originations decreased 11% year over year as a result of credit adjustments made during 2022 Net Originations1 $201 $225 Ending receivables were steady year over year as a result of a hi
Slide 13: Condensed Balance Sheet
Condensed Balance Sheet UNAUDITED PERIOD ENDED ($ in millions) 6/30/2023 12/31/2022 Key Highlights Assets Cash and restricted cash $62.1 $49.7 Total cash increased by $12 million driven by higher payments on originated loans and partially offset by payments of debt Finance Receivables at Fair Value
Slide 14: Reduced Cost of Financing and Strong Balance Sheet to Power Growth
Grown 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 capit
Slide 15: Full Year 2023 Guidance
Full Year 2023 Guidance $500M to $29M to $0.34 to $520M $35M $0.41 Total Revenue Adjusted Net Income1 Adjusted EPS1,2 Affirmed approximately Raised from Increased from 10% to 15% growth $24 million to $30 million $0.28 to $0.35 Growth Profitability Profitability 1. Non-GAAP Financial Measures: Adjus
Slide 16: Appendix
Appendix 15
Slide 17: Pro Forma Share Count as of June 30, 2023
Pro Forma Share Count as of June 30, 2023 (Unaudited) Share Price Notes Shares $10.00 $12.00 $13.00 $14.00 Class A Common Stock 16,280,397 16,280,397 16,280,397 16,280,397 Class V Common Stock Excludes 25,500,000 shares of Class V Common Stock outstanding with Held for the benefit of Pre-Business 68
Slide 18: Fair Value Valuation
Fair Value Valuation UNAUDITED PERIOD ENDED Key Highlights ($ in thousands) 6/30/2023 12/31/2022 Outstanding Principal $397,754 $402,180 • Interest rate increased by 210 bps due to Accrued Interest $14,022 $15,802 relative increase in base APR loans in the portfolio and a shift away from originating
Slide 19: Q2 GAAP Income Statement
Q2 GAAP Income Statement (in Thousands, except share and per share data) Three Months Ended June 30, Variance (Unaudited) 2023 2022 $ % Interest and loan related income $ 121,583 $ 107,873 $ 13,710 12.7% Other revenue 903 2 901 45050.0% Total revenue 122,486 107,875 14,611 13.5% Change in fair value
Slide 20: Year to Date GAAP Income Statement
Year to Date GAAP Income Statement (in Thousands, except share and per share data) Six Months Ended June 30, Variance (Unaudited) 2023 2022 $ % Interest and loan related income $ 241,525 $ 208,209 $ 33,316 16.0% Other revenue 1,335 376 959 255.1% Total revenue 242,860 208,585 34,275 16.4% Change in
Slide 21: Condensed Balance Sheet
Condensed Balance Sheet (in Thousands) June 30, December 31, Variance (Unaudited) 2023 2022 $ % Assets Cash and restricted cash $ 62,108 $ 49,670 $ 12,438 25.0% Finance receivables at fair value 446,956 457,296 (10,340) (2.3%) Finance receivables at amortized cost, net 325 643 (318) (49.5%) Other as
Slide 22: Condensed Cash Flow Statement
Condensed Cash Flow Statement (in Thousands) Six Months Ended June 30, Variance (Unaudited) 2023 2022 $ % Net cash provided by operating activities $ 138,566 $ 102,784 $ 35,782 34.8% Net cash (used in) investing activities (103,199) (164,390) 61,191 37.2% Net cash (used in) provided by financing act
Slide 23: Q2 Net Income to Adjusted EBT, Adjusted Net Income and Adjusted EBITDA Reconciliation
Q2 Net Income to Adjusted EBT, Adjusted Net Income and Adjusted EBITDA Reconciliation (in Thousands, except share and per share data) Three Months Ended June 30, Variance (Unaudited) 2023 2022 $ % Net income $ 18,076 $ 9,497 $ 8,579 90.3% Provision for income taxes 688 202 486 240.6% Debt amortizati
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) Six Months Ended June 30, Variance (Unaudited) 2023 2022 $ % Net income $ 22,006 $ 9,200 $ 12,806 139.2% Provision for income taxes 834 742 92 12.4% Debt am
Slide 25: Q2 and Year to Date Diluted Shares as Reflected in Adjusted Earnings Per Share
Q2 and Year to Date Diluted Shares as Reflected in Adjusted Earnings Per Share Three Months Ended June 30, (Unaudited) 2023 2022 Weighted average Class A common stock outstanding 15,632,120 13,525,101 Weighted average Class V voting stock outstanding 94,376,910 96,114,373 Elimination of earnouts at
Slide 26: Q2 Adjusted Earnings Per Share
Q2 Adjusted Earnings Per Share (in Thousands, except share and per share data) Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 (Unaudited) $ Per Share $ Per Share Weighted average diluted shares outstanding 84,750,663 84,283,102 Net Income $ 18,076 $ 0.21 $ 9,497 $ 0.11 Provision f
Slide 27: Year to Date Adjusted Earnings Per Share
Year to Date Adjusted Earnings Per Share (in Thousands, except share and per share data) Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 (Unaudited) $ Per Share $ Per Share Weighted average diluted shares outstanding 84,592,228 84,377,754 Net Income $ 22,006 $ 0.26 $ 9,200 $ 0.11 Provi