Oportun Financial Corporation · NASDAQ:OPRT
Oportun Financial — Q1 2025 Earnings Presentation
34 slides from Oportun Financial's earnings presentation, May 8, 2025
Slide 1: 1Q 2025 Earnings Presentation
1Q 2025 Earnings Presentation May 8, 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: 1Q25 earnings overview
Earnings Presentation 1Q25 earnings overview Reiterating 2025 Adjusted EPS expectations, indicating Y/Y profitability Strong Q1 signifies turning growth and lower credit the corner on improving losses financial performance • FY25 Adjusted EPS guidance of $1.10 to GAAP profitable for $1.30 reflects 5
Slide 4: First quarter performance vs. guidance
Earnings Presentation First quarter performance vs. guidance 1Q 2025 Guidance 1Q 2025 Actual Total Revenue $225 - $230M $236M Annualized Net Charge-Off 12.30% +/- 15 bps 12.2% Rate (%) Adjusted EBITDA (1) $18 - $22M $34M (1) See Appendix for Key Definitions and non-GAAP reconciliation to the most co
Slide 5: Consistent strategic focus delivering measurable results
Earnings Presentation Consistent strategic focus delivering measurable results Improving Credit Strengthening Identifying Outcomes Business Economics High-Quality • 30+ day delinquency rate and • 20%+ Adjusted ROEs attained Originations dollar net charge-offs have over last two quarters on path • 59
Slide 6: First quarter 2025 highlights
Earnings Presentation First quarter 2025 highlights GAAP Net Income (Loss) and Adjusted Financial Highlights Net Income Trends ($M)(1) Total Revenue GAAP Net Income GAAP Net Income (Loss) $22 $236M $9.8M Adjusted Net Income $19 $8.7 $9.8 Adjusted EBITDA(1) Adjusted Net Income(1) $3.6 $34M $19M GAAP
Slide 7: Improvement in net lifetime loss rate increases from 400 bps to up to 600+ bps
Earnings Presentation Improvement in net lifetime loss rate increases from 400 bps to up to 600+ bps after month 12 on book(1) Up to 600 bps lower front book losses 12+ months post-disbursement (1) 3Q22 vintage only includes August and September 2022; please see slides 16 and 17 for definitions of F
Slide 8: Back book has decreased to 4% of portfolio as of 1Q25
Earnings Presentation Back book (from pre-July 2022 credit tightening) has decreased to 4% of portfolio as of 1Q25; reiterating anticipated reduction to 1% by YE25 Pre-July 2022 Credit Tightening 1Q25 Annualized Net Quarter-End Back Book Portfolio % of Owned Principal Balance Outstanding(1) Charge-O
Slide 9: 30+ day delinquency rate and dollar net charge-offs have improved Y/Y
Earnings Presentation 30+ day delinquency rate and dollar net charge-offs have improved Y/Y for five and six consecutive quarters, respectively 30+ Days Delinquency Rate(1) Annualized Net Charge-off Rate and NCOs ($M)(1) (56)bps 16bps 12.0% 12.2% 11.9% 5.2% 11.7% 4.8% 4.7% (5)% $85 $81 (2) 1Q24 4Q24
Slide 10: Disciplined credit stance reflects member stability
Earnings Presentation Disciplined credit stance reflects member stability Strong employment and residential stability, with 92% of loans disbursed to U.S. bank accounts Income Verified 100% Of applicants, ~$50K median gross income Loan Disbursement 92% Of borrowers receive in U.S. bank accounts Empl
Slide 11: First quarter 2025 capital and liquidity
Earnings Presentation First quarter 2025 capital and liquidity Reduced leverage from 7.9x to 7.6x Q/Q, while repaying $29M of debt during 1Q; closed on two-year $187.5 million committed warehouse facility in April, increasing total warehouse capacity to $954 million Sources of Liquidity ($M) Fixed R
Slide 12: Second quarter and Full Year 2025 guidance
Earnings Presentation Second quarter and Full Year 2025 guidance 2Q 2025E FY 2025E Total Revenue $237 - $242M $945 - $970M Annualized Net Charge-off Rate (%) 11.90% +/- 15 bps 11.5% +/- 50 bps Adjusted EBITDA (1) $29 - $34M $135 - $145M Adjusted Net Income (1) — $53 - $63M Adjusted EPS (1) — $1.10 -
Slide 13: Q2 expected annualized NCO rate would be ~30 bps lower with flat Y/Y ADPB
Earnings Presentation Q2 expected annualized NCO rate would be ~30 bps lower with flat Y/Y average daily principal balance (ADPB) 12.2% 11.9% 11.6% 11.5% As Reported 11.4% 11.1% Flat ADPB (avg. daily principal balance) 10.4% 10.5% 10% ADPB Growth 10.1% 1Q25 Actual 2Q25 Guidance Midpoint FY25 Guidanc
Slide 14: Attractive unit economic model
Earnings Presentation Attractive unit economic model 1Q25 Adjusted ROE of 21% was a 17 percentage point Y/Y improvement from 4% in 1Q24 1Q25 Metric Target Illustrative Unit Economics as a % of Owned Principal Balance Corporate Level Profitability 36% Fair Value Marks: 2%(2) 7.6:1 Leverage 35% F 33%
Slide 15: Appendix
Appendix
Slide 16: Key definitions
Appendix Key definitions • 30+ Day Delinquency Rate is the unpaid principal balance for our owned loans and credit cards receivable that are 30 or more calendar days contractually past due as of the end of the period divided by Owned Principal Balance as of such date • Adjusted EBITDA is a non-GAAP
Slide 17: Key definitions (cont'd)
Appendix Key definitions (cont’d) • Customer Acquisition Cost (or "CAC") is calculated as sales and marketing expenses, which include the costs associated with various paid marketing channels, including direct mail, digital marketing and brand marketing and the costs associated with our telesales an
Slide 18: 1Q25 performance: Significant Y/Y improvement on key metrics
Appendix 1Q25 performance: Significant Y/Y improvement on key metrics Portfolio Yield Risk Adjusted Yield +49 bps +34 bps 33.0% 20.5% 20.8% 32.5% 1Q24 1Q25 1Q24 1Q25 Net Charge-offs ($M) Adjusted Operating Expense ($M) (4.7)% (12.6)% $85 $102 $89 $81 1Q24 1Q25 1Q24 1Q25 18
Slide 19: Reduced OpEx and credit losses support Adjusted Net Income and EBITDA improvement
Appendix Reduced OpEx and credit losses support $15M Y/Y Adjusted Net Income improvement, $32M Y/Y Adjusted EBITDA improvement during 1Q25 Adjusted Net Income ($M)(1) Adjusted EBITDA ($M)(1) $15 $32 $41 $34 $22 $19 $3.6 $1.9 1Q24 4Q24 1Q25 1Q24 4Q24 1Q25 3.7% 25.2% 21.0% 0.8% 16.3% 14.2% Adjusted RO
Slide 20: Owned principal balance declines moderating with originations growth
Appendix Owned principal balance declines moderating with two consecutive quarters of Y/Y aggregate originations growth Owned Principal Balance at EOP ($B) Aggregate Originations ($M) (3)% 39% $2.8 $2.7 $2.7 $522 $469 $338 1Q24 4Q24 1Q25 1Q24 4Q24 1Q25 20
Slide 21: 1Q net revenue grows 34% Y/Y
Appendix 1Q net revenue grows 34% Y/Y 1Q25 Highlights Total Revenue ($M) (6)% Total Revenue: $236M, down $15M Y/Y, primarily due the the $11M impact of credit card portfolio sale, partially offset by 49 bps higher $250 $251 $236 portfolio yield 1Q24 4Q24 1Q25 Net Revenue ($M) Net Revenue: $106M, up
Slide 22: Key financial & operating metrics
Appendix Key financial & operating metrics Quarter Ended Change 1Q25 4Q24 3Q24 2Q24 1Q24 Y/Y Aggregate Originations (Millions) $469.4 $522.2 $480.2 $434.8 $338.2 38.8% Portfolio Yield (%) 33.0% 34.2% 33.2% 33.9% 32.5% 49bps 30+ Day Delinquency Rate (%) 4.7% 4.8% 5.2% 5.0% 5.2% (56)bps Annualized Net
Slide 23: Condensed consolidated income statement
Appendix Condensed consolidated income statement Quarter Ended Change ($ Millions, except per share data. Shares in Millions) 1Q25 4Q24 3Q24 2Q24 1Q24 Y/Y Interest income $220.2 $233.5 $230.0 $231.4 $230.6 (4.5)% Non-interest income 15.7 17.5 19.9 19.0 19.9 (21.2)% Total revenue $235.9 $250.9 $250.0
Slide 24: Condensed consolidated balance sheet
Appendix Condensed consolidated balance sheet Quarter Ended Change ($ Millions) 1Q25 4Q24 3Q24 2Q24 1Q24 Y/Y Cash and cash equivalents $78.5 $60.0 $71.8 $72.9 $69.2 13.5% Restricted cash 152.4 154.7 156.7 163.8 127.4 19.7% Total cash $231.0 $214.6 $228.5 $236.6 $196.6 17.5% Loans receivable at fair
Slide 25: Adjusted EBITDA reconciliation
Appendix Adjusted EBITDA reconciliation Quarter Ended Change ($ Millions) 1Q25 4Q24 3Q24 2Q24 1Q24 Y/Y Net income (loss) $9.8 $8.7 $(30.0) $(31.0) $(26.4) NM Adjustments: Income tax expense (benefit) 3.4 (4.8) (9.5) (18.1) (4.0) NM Interest on corporate financing 9.7 11.4 12.6 13.2 13.9 (30.0)% Depr
Slide 26: Adjusted net income reconciliation
Appendix Adjusted net income reconciliation Quarter Ended Change ($ Millions) 1Q25 4Q24 3Q24 2Q24 1Q24 Y/Y Net income (loss) $9.8 $8.7 $(30.0) $(31.0) $(26.4) NM Adjustments: Income tax expense (benefit) 3.4 (4.8) (9.5) (18.1) (4.0) NM Stock-based compensation expense 2.8 2.8 3.2 3.0 4.0 (28.9)% Wor
Slide 27: Adjusted operating expense and adjusted operating expense ratio reconciliation
Appendix Adjusted operating expense and adjusted operating expense ratio reconciliation Quarter Ended Change ($ Millions) 1Q25 4Q24 3Q24 2Q24 1Q24 Y/Y OpEx Ratio (%) 13.9% 13.1% 14.7% 16.0% 15.5% (10.2)% Total operating expense $92.7 $89.5 $102.1 $109.2 $109.6 (15.5)% Less: Stock-based compensation
Slide 28: Basic and diluted earnings per share reconciliation
Appendix Basic and diluted earnings per share reconciliation Quarter Ended Change ($ Millions, except per share data. Shares in Millions) 1Q25 4Q24 3Q24 2Q24 1Q24 Y/Y Net income (loss) $9.8 $8.7 $(30.0) $(31.0) $(26.4) NM Net income (loss) attributable to common stockholders $9.8 $8.7 $(30.0) $(31.0
Slide 29: Adjusted earnings per share reconciliation
Appendix Adjusted earnings per share reconciliation Quarter Ended Change ($ Millions, except per share data. Shares in Millions) 1Q25 4Q24 3Q24 2Q24 1Q24 Y/Y Diluted earnings (loss) per share $0.21 $0.20 $(0.75) $(0.78) $(0.68) NM Adjusted Net Income $18.6 $21.5 $0.9 $3.2 $3.6 $— Basic weighted-aver
Slide 30: Net change in fair value
Appendix Quarter Ended Change $ Millions 1Q25 4Q24 1Q24 4Q23 Q/Q Y/Y Net change Loan Portfolio Drivers Discount rate 7.7% 7.9% 9.1% 10.1% (0.2)% (1.4)% in fair value Remaining cumulative charge-offs as a % of principal balance Average life in years (1) 11.8% 1.10 11.7% 1.11 11.9% 1.03 12.1% 1.01 0.2
Slide 31: 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 32: Forward-looking adjusted EBITDA reconciliation
Appendix Forward-looking adjusted EBITDA reconciliation 2Q 2025 FY 2025 ($ Millions) Low High Low High Net income $3.3 * $7.2 * $23.2 $33.4 Adjustments: Income tax expense (benefit) 0.9 1.9 6.3 9.0 Interest on corporate financing 9.0 9.0 36.5 36.5 Depreciation and amortization 10.7 10.7 41.1 41.1 St
Slide 33: Forward-looking adjusted net income and adjusted earnings per share reconciliation
Appendix Forward-looking adjusted net income and adjusted earnings per share reconciliation FY 2025 ($ Millions, except per share data. Shares in Millions) Low High Net Income $23.2 $33.4 Adjustments: Income tax expense (benefit) 6.3 9.0 Stock-based compensation expense 13.7 13.7 Other non-recurring
Slide 34: Oportun
Oportun