Oportun Financial Corporation · NASDAQ:OPRT
Oportun Financial — Q2 2025 Earnings Presentation
35 slides from Oportun Financial's earnings presentation, Aug 6, 2025
Slide 1: 2Q 2025 Earnings Presentation
2Q 2025 Earnings Presentation August 6, 2025
Slide 2: Forward-looking statements
Forward-looking statements This presentation and the accompanying oral presentation contain forward-looking statements. All statements other than statements of historical fact contained in this presentation and the accompanying oral presentation, including statements as to future performance, result
Slide 3: 2Q25 earnings overview
Earnings Presentation 2Q25 earnings overview Raising 2025 Adjusted EPS expectations by 8% at the midpoint Strong momentum continues with Q2 financial • FY25 Adjusted EPS guidance of performance $1.20-$1.40 reflects 67%-94% growth GAAP profitable for third • Expect to be GAAP profitable in FY25 • Adj
Slide 4: Consistent strategic focus delivering measurable results
Earnings Presentation Consistent strategic focus delivering measurable results Improving Credit Strengthening Identifying Outcomes Business Economics High-Quality • 30+ day delinquency rate and • 15%+ Adjusted ROEs attained Originations dollar net charge-offs have over last three quarters, • Q2 refe
Slide 5: Second quarter performance vs. guidance
Earnings Presentation Second quarter performance vs. guidance While a higher than expected loan repayment rate resulted in Total Revenue below our guidance range, we successfully delivered on our annualized Net Charge-Off rate and Adjusted EBITDA targets 2Q 2025 Guidance 2Q 2025 Actual Total Revenue
Slide 6: Second quarter 2025 highlights
Earnings Presentation Second quarter 2025 highlights GAAP Net Income (Loss) and Adjusted Financial Highlights Net Income Trends ($M)(1) $38 Total Revenue GAAP Net Income $234M $6.9M $11 $19 (1) (1) $15 Adjusted EBITDA Adjusted Net Income $9.8 $31M $15M $6.9 $3.2 $(31) GAAP Diluted EPS Adjusted EPS(1
Slide 7: Improvement in net lifetime loss rate increases from 400 bps to up to 600+
Earnings Presentation Improvement in net lifetime loss rate increases from 400 bps to up to 600+ bps after month 12 on book(1) Up to 600+ bps lower front book losses 12+ months post-disbursement (1) 3Q22 vintage only includes August and September 2022; please see slides 16 and 17 for definitions of
Slide 8: Back book has decreased to 2% of portfolio
Earnings Presentation Back book (from pre-July 2022 credit tightening) has decreased to 2% of portfolio as of 2Q25; reiterating anticipated reduction to 1% by YE25 Pre-July 2022 Credit Tightening 2Q25 Annualized Net Quarter-End Back Book Portfolio % of Owned Principal Balance Outstanding(1) Charge-O
Slide 9: Annualized net charge-off rate declines 41 bps Y/Y, delinquency declined
Earnings Presentation Annualized net charge-off rate declines 41 bps Y/Y, and 30+ day delinquency rate declined 54 bps Y/Y Annualized Net Charge-off Rate and NCOs ($M)(1) 30+ Day Delinquency Rate(1) (41)bps (54)bps 12.3% 12.2% 11.9% 11.8% 5.0% 4.7% 4.4% (2) 2Q24 1Q25 2Q25 3Q25E 2Q24 1Q25 2Q25 (1) Se
Slide 10: Disciplined credit stance reflects member stability
Earnings Presentation Disciplined credit stance reflects member stability Strong employment and residential stability, with 93% of loans disbursed to U.S. bank accounts Income Verified 100% Of applicants, ~$50K median gross income Loan Disbursement 94% Of borrowers receive in U.S. bank accounts Empl
Slide 11: Second quarter 2025 capital and liquidity
Earnings Presentation Second quarter 2025 capital and liquidity Reduced leverage from 7.6x to 7.3x Q/Q, while repaying $55M of debt during 2Q; issued $439 million in ABS notes at a 5.67% weighted average yield in June, 128 bps lower than prior January transaction Sources of Liquidity ($M) Fixed Rate
Slide 12: Third quarter and Full Year 2025 guidance
Earnings Presentation Third quarter and Full Year 2025 guidance 3Q 2025E FY 2025E Total Revenue $237 - $242M $945 - $960M Annualized Net Charge-off Rate (%) 11.8% +/- 15 bps 11.9% +/- 30 bps Adjusted EBITDA (1) $34 - $39M $135 - $145M Adjusted Net Income (1) — $58 - $67M Adjusted EPS (1) — $1.20 - $
Slide 13: Q3 expected annualized NCO rate would be ~30 bps lower with flat ADPB
Earnings Presentation Q3 expected annualized NCO rate would be ~30 bps lower with flat Y/Y average daily principal balance (ADPB) 11.9% 11.8% 11.9% As Reported 11.5% 11.5% 11.5% Flat ADPB (avg. daily principal balance) 10.5% 10.5% 10.5% 10% ADPB Growth 2Q25 Actual 3Q25 Guidance Midpoint FY25 Guidanc
Slide 14: Attractive unit economic model
Earnings Presentation Attractive unit economic model 2Q25 Adjusted ROE of 16% was a 12 percentage point Y/Y improvement from 4% in 2Q24 2Q25 Metric Target Illustrative Unit Economics as a % of Owned Principal Balance Corporate Level Profitability Fair Value Marks: 2%(2) 7.3:1 Leverage 35% 36% F 33%
Slide 15: Appendix
Appendix
Slide 16: Key definitions
Appendix Key definitions • 30+ Day Delinquency Rate is the unpaid principal balance for our owned loans and credit cards receivable that are 30 or more calendar days contractually past due as of the end of the period divided by Owned Principal Balance as of such date • Adjusted EBITDA is a non-GAAP
Slide 17: Key definitions (cont'd)
Appendix Key definitions (cont’d) • Customer Acquisition Cost (or "CAC") is calculated as sales and marketing expenses, which include the costs associated with various paid marketing channels, including direct mail, digital marketing and brand marketing and the costs associated with our telesales an
Slide 18: 2Q25 performance: Significant Y/Y improvement on key metrics
Appendix 2Q25 performance: Significant Y/Y improvement on key metrics Aggregate Originations ($M) Risk Adjusted Net Interest Margin 11% 192bps 435 481 16.3% 14.4% 2Q24 2Q25 2Q24 2Q25 Adjusted Operating Expense ($M) Adjusted Operating Expense Ratio (5.9)% (46)bps $94 $89 13.8% 13.3% 2Q24 2Q25 2Q24 2Q
Slide 19: $33M Y/Y Adjusted EBITDA improvement during 1H25
Appendix $33MY/Y Adjusted EBITDA improvement during 1H25 Adjusted EBITDA ($M)(1) $1.0 $33 $65 $34 $31 $32 $30 2Q24 1Q25 2Q25 YTD 2024 YTD 2025 12.1% 14.2% 13.3% 6.4% 13.8% Adjusted EBITDA Margin (%)(1) Adjusted EBITDA Margin (%)(1) (1) See Appendix for Key Definitions and non-GAAP reconciliation to
Slide 20: $26M Y/Y Adjusted Net Income improvement during 1H25
Appendix $26M Y/Y Adjusted Net Income improvement during 1H25 Adjusted Net Income ($M)(1) $11 $26 $33 $19 $15 $3.2 $6.9 2Q24 1Q25 2Q25 YTD 2024 YTD 2025 3.5% 21.0% 15.9% 3.6% 18.4% Adjusted ROE (%)(1) Adjusted ROE (%)(1) (1) See Appendix for Key Definitions and non-GAAP reconciliation to the most co
Slide 21: 2Q net revenue grows 74% Y/Y
Appendix 2Q net revenue grows 74% Y/Y 2Q25 Highlights Total Revenue ($M) (6)% (6)% Total Revenue: $234M, down $16M Y/Y, primarily due the the $10M impact of credit $501 $470 card portfolio sale $250 $236 $234 2Q24 1Q25 2Q25 YTD 2024 YTD 2025 Net Revenue ($M) Net Revenue: $105M, up 74% 51% $45M Y/Y a
Slide 22: Key financial & operating metrics
Appendix Key financial & operating metrics Quarter Ended Six Months Ended June 30 Change Change 2Q25 1Q25 4Q24 3Q24 2Q24 Y/Y 2025 2024 Y/Y Aggregate Originations (Millions) $480.8 $469.4 $522.2 $480.2 $434.8 10.6% $950.2 $773.0 22.9% Portfolio Yield (%) 32.8% 33.0% 34.2% 33.2% 33.9% (106)bps 32.9% 3
Slide 23: Condensed consolidated income statement
Appendix Condensed consolidated income statement Quarter Ended Six Months Ended June 30 Change Change ($ Millions, except per share data. Shares in Millions) 2Q25 1Q25 4Q24 3Q24 2Q24 Y/Y 2025 2024 Y/Y Interest income $218.3 $220.2 $233.5 $230.0 $231.4 (5.7)% $438.5 $462.0 (5.1)% Non-interest income
Slide 24: Condensed consolidated balance sheet
Appendix Condensed consolidated balance sheet Quarter Ended Change ($ Millions) 2Q25 1Q25 4Q24 3Q24 2Q24 Y/Y Cash and cash equivalents $96.8 $78.5 $60.0 $71.8 $72.9 32.9% Restricted cash 131.4 152.4 154.7 156.7 163.8 (19.8)% Total cash $228.2 $231.0 $214.6 $228.5 $236.6 (3.6)% Loans receivable at fa
Slide 25: Adjusted EBITDA reconciliation
Appendix Adjusted EBITDA reconciliation Quarter Ended Six Months Ended June 30, Change Change ($ Millions) 2Q25 1Q25 4Q24 3Q24 2Q24 Y/Y 2025 2024 Y/Y Net income (loss) $6.9 $9.8 $8.7 $(30.0) $(31.0) NM $16.6 $(57.5) NM Adjustments: Income tax expense (benefit) 3.2 3.4 (4.8) (9.5) (18.1) NM 6.6 (22.2
Slide 26: Adjusted net income reconciliation
Appendix Adjusted net income reconciliation Quarter Ended Six Months Ended June 30, Change Change ($ Millions) 2Q25 1Q25 4Q24 3Q24 2Q24 Y/Y 2025 2024 Y/Y Net income (loss) $6.9 $9.8 $8.7 $(30.0) $(31.0) NM $16.6 $(57.5) NM Adjustments: Income tax expense (benefit) 3.2 3.4 (4.8) (9.5) (18.1) NM 6.6 (
Slide 27: Adjusted operating expense and adjusted operating expense ratio reconciliation
Appendix Adjusted operating expense and adjusted operating expense ratio reconciliation Quarter Ended Six Months Ended June 30, Change Change ($ Millions) 2Q25 1Q25 4Q24 3Q24 2Q24 Y/Y 2025 2024 Y/Y OpEx Ratio 14.2% 13.9% 13.1% 14.7% 16.0% 14.0% 15.7% Total operating expense $94.4 $92.7 $89.5 $102.1
Slide 28: Risk adjusted net interest margin reconciliation
Appendix Risk adjusted net interest margin reconciliation Quarter Ended Six Months Ended June 30, Change Change ($ Millions) 2Q25 1Q25 4Q24 3Q24 2Q24 Y/Y 2025 2024 Y/Y Total Revenue 234.3 235.9 250.9 250.0 250.4 (6.4)% 470.3 500.9 (6.1)% (1) Less: Interest Expense 59.5 57.4 57.1 55.7 54.2 9.8% 116.9
Slide 29: Basic and diluted earnings per share reconciliation
Appendix Basic and diluted earnings per share reconciliation Quarter Ended Six Months Ended June 30 Change Change ($ Millions, except per share data. Shares in Millions) 2Q25 1Q25 4Q24 3Q24 2Q24 Y/Y 2025 2024 Y/Y Net income (loss) $6.9 $9.8 $8.7 $(30.0) $(31.0) NM $16.6 $(57.5) NM Net income (loss)
Slide 30: Adjusted earnings per share reconciliation
Appendix Adjusted earnings per share reconciliation Quarter Ended Six Months Ended June 30 Change Change ($ Millions, except per share data. Shares in Millions) 2Q25 1Q25 4Q24 3Q24 2Q24 Y/Y 2025 2024 Y/Y Diluted earnings (loss) per share $0.14 $0.21 $0.20 $(0.75) $(0.78) NM $0.35 $(1.46) NM Adjusted
Slide 31: Net change in fair value
Appendix Quarter Ended Change $ Millions 2Q25 1Q25 2Q24 1Q24 Q/Q Y/Y Net change Loan Portfolio Drivers Discount rate 7.0% 7.7% 8.7% 9.1% (0.7)% (1.6)% in fair value Remaining cumulative charge-offs as a % of principal balance Average life in years (1) 12.0% 1.08 11.8% 1.10 11.6% 1.02 11.9% 1.03 0.1%
Slide 32: Net lifetime loan loss rates by vintage
Appendix Net lifetime loan loss rates by vintage Cumulative Net Principal Charge-offs Year of Origination 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Dollar Weighted Average Original Term for Vintage (Months) 22.3 24.2 26.3 29.0 30.0 32.0 33.3 37.8 39.2 35.6 Net Lifetime Loan Losses as % of Or
Slide 33: Forward-looking adjusted EBITDA reconciliation
Appendix Forward-looking adjusted EBITDA reconciliation 3Q 2025 FY 2025 ($ Millions) Low High Low High Net income $6.8 * $10.7 * $31.8 $41.6 Adjustments: Income tax expense (benefit) 1.8 2.9 8.6 11.2 Interest on corporate financing 8.8 8.8 36.9 36.9 Depreciation and amortization 9.9 9.9 40.9 40.9 St
Slide 34: Forward-looking adjusted net income and adjusted earnings per share reconciliation
Appendix Forward-looking adjusted net income and adjusted earnings per share reconciliation FY 2025 ($ Millions, except per share data. Shares in Millions) Low High Net Income $31.8 $41.6 Adjustments: Income tax expense (benefit) 8.6 11.2 Stock-based compensation expense 12.5 12.5 Other non-recurrin
Slide 35: Oportun
Oportun