OppFi Reports Record Quarterly Results and Raises Full-Year Guidance
OppFi delivered strong third-quarter performance with record revenue and adjusted net income, prompting the company to raise its full-year financial guidance amid continued growth in loan originations and improved operational efficiency.
OppFi Inc. reported exceptional third-quarter financial results that significantly exceeded analyst expectations, demonstrating robust growth across key metrics. The financial technology platform achieved revenue of $155.1 million, adjusted net income of $40.7 million, and adjusted earnings per share of $0.46, outperforming consensus estimates across all measures. This performance represents a 13.5% year-over-year revenue increase and a 41% surge in adjusted net income, setting new quarterly records for the company.
The company's net revenue margin expanded to 67.4%, reflecting a 70 basis point improvement from the same period last year. This margin expansion, combined with operational discipline and scale benefits, drove the adjusted net income margin to 26.3%, representing a substantial 520 basis point year-over-year increase. The strong quarterly performance was supported by record total originations of $246.1 million, marking a 12.5% increase from the prior year period, while retained net originations grew 8% to $215.2 million.
OppFi's balance sheet and liquidity position remained solid, with the company ending the quarter with $75.2 million in cash and restricted cash, including $45.4 million in unrestricted cash. The company maintains total funding capacity of $600.2 million, including $204.2 million in undrawn debt. Year-to-date free cash flow generation of $66.1 million enabled continued investment in growth initiatives, a $21.7 million special dividend payment, and $7.4 million in share repurchases during the third quarter.
The company's improved operational efficiency is evident in its enhanced automation capabilities, with the auto-approval rate increasing to 79% from 77% in the prior-year period. This improvement reflects ongoing enhancements to OppFi's Model 6 platform and risk stratification processes. Credit quality remained relatively stable, though the net charge-off rate increased to 35.1% of total revenue, approximately 100 basis points higher than the previous year but significantly improved from 42% in the fourth quarter of 2024.
Based on continued strong performance trends, OppFi raised the lower end of its full-year 2025 revenue guidance to $590-$605 million from the previous range of $578-$605 million. The company also increased its adjusted net income guidance to $137-$142 million from $125-$130 million and adjusted earnings per share guidance to $1.54-$1.60 from $1.39-$1.44. These upward revisions reflect management's confidence in the company's ability to sustain current growth momentum through the remainder of the fiscal year.
The company's valuation analysis, conducted by Stonegate Capital Partners, utilizes a price-to-earnings multiple range of 8.5x to 9.5x, resulting in a valuation range of $14.56 to $16.28 with a midpoint of $15.42. This valuation framework suggests potential upside from current trading levels, supported by the company's strong financial performance and raised guidance. The improved financial outlook positions OppFi favorably within the competitive fintech lending landscape as it continues to execute on its growth strategy while maintaining operational discipline.