Oportun Financial Corporation · NASDAQ:OPRT
Oportun Financial — Investor Presentation (May 2025)
40 slides from Oportun Financial's investor presentation, May 2025
Slide 1: Investor Presentation
Investor Presentation May 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: Company Overview
Company Overview
Slide 4: Company Overview: Mission and Target Market
Company Overview Borrowing, savings and budgeting for hardworking individuals Unsecured Secured Mission Empowering members to build a better future Personal Loans Personal Loans Savings Comprehensive Unique Servicing Strong Customer Proprietary Award Winning Physical and Digital and Collections Valu
Slide 5: Addressing the biggest challenges facing U.S. consumers
Company Overview Addressing the biggest challenges facing U.S. consumers of U.S. households struggle with 70% spending, saving, borrowing and planning(2) 59% would struggle to come up with 75% $1,000 in an emergency(3) 51% had bank-related account fees in the past year(4) of Americans do not feel th
Slide 6: Responsibly structured credit products
Company Overview Responsibly structured credit products Member Solution Unsecured Personal Loans Secured Personal Loans Simple-to-understand, affordable, Personal installment loan product Use Case unsecured, fully-amortizing installment secured by an automobile, allowing loans with fixed payments me
Slide 7: Compelling customer value proposition compared to the alternatives
Company Overview Compelling customer value proposition compared to the alternatives Cost of borrowing $1,500(6) Positive social impact Approx. $2,000 savings $3,562 $3,490 1.3M $3,141 Credit histories $2,439 established(7) $1,310 $1,027 $2,495 Certified by the $498 US Treasury Online-only Online Sin
Slide 8: Credit Risk Platform Enables Highly Granular Decision Making and Competitive Advantage
Company Overview Credit Risk Platform Enables Highly Granular Decision Making and Competitive Advantage 100% centralized, automated underwriting with no overrides or exceptions Billions of data points analyzed using A.I. (machine learning) to develop credit and fraud models 1,000+ end nodes 3 indepe
Slide 9: Multi-channel loan fulfillment and servicing
Company Overview Multi-channel loan fulfillment and servicing 43% of 1Q25 applicants used more than one channel to apply; 75% utilized Mobile / Digital channel for at least part of their applications, even if they initiated in Retail or with a Contact Center Loan Fulfillment Channels* Payment Channe
Slide 10: Savings remains a 2025 priority
Company Overview Savings remains a 2025 priority Problem #1 Savings App of 2025 59% according to Bankrate 9 Best Money-Saving of U.S. consumers would struggle to come up with $1,000 in the event of an emergency(3) Apps of 2025 Solution Excellent Personal Finance Apps A.I.-driven saving according to
Slide 11: Strategic Priorities
Strategic Priorities
Slide 12: Consistent strategic focus delivering measurable results
Strategic Priorities 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 13: Disciplined credit stance reflects member stability
Strategic Priorities 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 Emplo
Slide 14: Improvement in net lifetime loss rate increases from 400 bps to up to 600+ bps
Strategic Priorities Improvement in net lifetime loss rate increases from 400 bps to up to 600+ bps after month 12 on book(11) Up to 600 bps lower front book losses 12+ months post-disbursement See Appendix for Key Definitions. 14
Slide 15: Back book decreased to 4% of portfolio
Strategic Priorities 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 Back Book Credit Tightening 1Q25 Annualized Net Quarter-End Back Book Portfolio % of Owned Principal Balance Outstanding(12
Slide 16: Financial Overview
Financial Overview
Slide 17: Attractive unit economic model
Financial Overview 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%(14) 7.6:1 Leverage 35% F 33% 32
Slide 18: 1Q25 earnings overview
Financial Overview 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 53%-
Slide 19: First quarter 2025 capital and liquidity
Financial Overview 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 Rate
Slide 20: Second quarter and Full Year 2025 guidance
Financial Overview 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* $29 - $34M $135 - $145M Adjusted Net Income* — $53 - $63M Adjusted EPS* — $1.10 - $1.30 Based
Slide 21: Q2 expected annualized NCO rate would be ~30 bps lower with flat Y/Y ADPB
Financial Overview 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 Guidance M
Slide 22: Management Team
Management Team
Slide 23: Expertise Across Products and Industries
Management Team Expertise Across Products and Industries Raul Vazquez Patrick Kirscht Kathleen Layton Paul Appleton Chief Executive Officer and Chief Credit Officer Chief Legal Officer Treasurer, Head of Capital Markets Board Member 15+ years in Corporate and and Interim Chief Financial Officer 25+
Slide 24: Appendix
Appendix
Slide 25: 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 26: 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 27: 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 $338.2 38.8% Portfolio Yield (%) 33.0% 34.2% 33.2% 33.9% 32.5% 49bps 30+ Day Delinquency Rate (%) 4.7% 4.8% 5.2% 5.0% 5.2% (56)bps Annualized Net
Slide 28: Condensed consolidated income statement
Appendix Condensed consolidated income statement Quarter Ended Change ($ 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 $250.0
Slide 29: Condensed consolidated balance sheet
Appendix Condensed consolidated balance sheet Quarter Ended Change ($ 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 $196.6 17.5% Loans receivable at fair
Slide 30: Adjusted EBITDA reconciliation
Appendix Adjusted EBITDA reconciliation Quarter Ended Change ($ Millions) 1Q25 4Q24 3Q24 2Q24 1Q24 Y/Y Net income (loss) $9.8 $8.7 $(30.0) $(31.0) $(26.4) NM Adjustments: Income tax expense (benefit) 3.4 (4.8) (9.5) (18.1) (4.0) NM Interest on corporate financing 9.7 11.4 12.6 13.2 13.9 (30.0)% Depr
Slide 31: Adjusted net income reconciliation
Appendix Adjusted net income reconciliation Quarter Ended Change ($ Millions) 1Q25 4Q24 3Q24 2Q24 1Q24 Y/Y Net income (loss) $9.8 $8.7 $(30.0) $(31.0) $(26.4) NM Adjustments: Income tax expense (benefit) 3.4 (4.8) (9.5) (18.1) (4.0) NM Stock-based compensation expense 2.8 2.8 3.2 3.0 4.0 (28.9)% Wor
Slide 32: Adjusted operating expense and adjusted operating expense ratio reconciliation
Appendix Adjusted operating expense and adjusted operating expense ratio reconciliation Quarter Ended Change ($ 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 $109.6 (15.5)% Less: Stock-based compensation
Slide 33: Basic and diluted earnings per share reconciliation
Appendix Basic and diluted earnings per share reconciliation Quarter Ended Change ($ 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) $(31.0
Slide 34: Adjusted earnings per share reconciliation
Appendix Adjusted earnings per share reconciliation Quarter Ended Change ($ 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 35: 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 36: 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 37: 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 $33.4 Adjustments: Income tax expense (benefit) 0.9 1.9 6.3 9.0 Interest on corporate financing 9.0 9.0 36.5 36.5 Depreciation and amortization 10.7 10.7 41.1 41.1 St
Slide 38: Forward-looking adjusted net income and adjusted earnings per share reconciliation
Appendix Forward-looking adjusted net income and adjusted earnings per share reconciliation FY 2025 ($ 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 39: Endnotes
Appendix Endnotes 1. Bankrate’s Financial Freedom survey, July 2024 2. Financial Health Network (FHN): “Financial Health Pulse™ 2024 U.S. Trends Report” 3. Bankrate’s 2025 Annual Emergency Savings Report, February 2025 4. Financial Health Network: “The FinHealth Spend Report 2023” 5. Yahoo Finance/M
Slide 40: Investor Contact
Investor Contact Dorian Hare 650-590-4323 ir@oportun.com