OppFi's Shift to Bank-Enabled Model Through BNCC Acquisition Signals Long-Term Growth Strategy
OppFi's Q1 results show steady performance as it prioritizes credit discipline and platform expansion via the pending BNCC acquisition, which is expected to provide low-cost deposits and drive EPS accretion.
Stonegate Capital Partners updated its coverage on OppFi, Inc. (NYSE: OPFI) following the company's first-quarter 2026 results, highlighting a strategic shift toward a bank-enabled, deposit-funded model through the pending acquisition of BNCC. The move marks a significant pivot for the financial technology company, which has traditionally relied on alternative funding sources.
OppFi's Q1 2026 results demonstrated steady performance, with revenue and receivables growing despite a decline in loan originations. Net originations fell 7.0% year-over-year to $176.0 million, yet total receivables increased 9.4% to $444.9 million, and revenue reached a record $151.9 million, up 8.3% from the prior year. The divergence was attributed to tighter credit standards, inflationary pressures, weaker consumer sentiment, and higher average tax refunds that temporarily reduced loan demand.
Higher charge-offs weighed on adjusted earnings, but the company maintained expense discipline while investing across its product portfolio, including LOLA, Model 7, LOC, SMB lending, and BNCC integration. According to Stonegate, OppFi is prioritizing credit discipline and long-term platform expansion over near-term volume growth.
The pending BNCC acquisition is expected to meaningfully expand OppFi's growth runway. The deal adds approximately $1.0 billion in low-cost deposits, supports national expansion, and is projected to drive over 25% adjusted EPS accretion in the first year. This transition to a deposit-funded model could lower OppFi's cost of capital and enhance its competitive positioning in the consumer lending market.
Management also outlined several product and technology catalysts for 2026. The LOLA migration is scheduled to begin in May, Model 7 is expected in fall 2026, and a new line of credit (LOC) product launches this summer. The company's full-year 2026 guidance remains intact, with revenue forecasted between $650 million and $675 million and adjusted EPS of $1.76 to $1.84.
For more details, see the full announcement here.