GAAP Net income of
GAAP EPS of
Adjusted EPS of
Operating expenses of
Reiterating full year 2025 credit performance and profit expectations
“We started 2025 with a strong first quarter, building on the momentum from last year. I’m pleased to report our second consecutive quarter of GAAP profitability, with net income increasing by
First Quarter 2025 Results
| Metric | GAAP | Adjusted1 | |||||||
| 1Q25 | 1Q24 | 1Q25 | 1Q24 | ||||||
| Total revenue2 | |||||||||
| Net income (loss) | |||||||||
| Diluted EPS | |||||||||
| Adjusted EBITDA | |||||||||
| Dollars in millions, except per share amounts. | |||||||||
| 1 See the section entitled “About Non-GAAP Financial Measures” for an explanation of non-GAAP measures, and the table entitled “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of non-GAAP to GAAP measures. | |||||||||
| 2 1Q24 total revenue includes | |||||||||
Business Highlights
- Aggregate Originations were
$469 million , a 39% increase compared to$338 million in the prior-year quarter - Portfolio Yield was 33.0%, an increase of 49 basis points compared to 32.5% in the prior-year quarter
- Owned Principal Balance at end-of-period was
$2.7 billion , a decrease of 3% compared to$2.8 billion in the prior-year quarter - Annualized Net Charge-Off Rate of 12.2%, an increase of 16 basis points compared to 12.0% in the prior-year quarter; dollar Net Charge-Offs declined 5% year-over-year, marking the sixth consecutive quarterly decrease
- 30+ Day Delinquency Rate of 4.7%, a decrease of 56 basis points compared to 5.2% for the prior-year quarter; fifth consecutive quarterly decline
Financial and Operating Results
All figures are as of or for the quarter ended
Operational Drivers
Originations – Aggregate Originations for the first quarter were
Portfolio Yield - Portfolio Yield for the first quarter was 33.0%, an increase of 49 basis points as compared to 32.5% in the prior-year quarter, primarily attributable to increased pricing on loans.
Financial Results
Revenue – Total revenue for the first quarter was
Operating Expense and Adjusted Operating Expense – For the first quarter, total operating expense was
Net Income (Loss) and Adjusted Net Income (Loss) – Net income was
Earnings (Loss) Per Share and Adjusted EPS – GAAP earnings per share, basic and diluted, were both
Adjusted EBITDA – Adjusted EBITDA was
Credit and Operating Metrics
Net Charge-Off Rate – The Annualized Net Charge-Off Rate for the quarter was 12.2%, compared to 12.0% for the prior-year quarter. Net Charge-offs in dollars for the quarter were down 5% to
30+ Day Delinquency Rate – The Company's 30+ Day Delinquency Rate was 4.7% at the end of the quarter, compared to 5.2% at the end of the prior-year quarter.
Following the first quarter, the Company's 30+ Day Delinquency Rate declined to 4.5% at the end of April.
Operating Expense Ratio and Adjusted Operating Expense Ratio – Operating Expense Ratio for the quarter was 13.9% as compared to 15.5% in the prior-year quarter, a 157 basis points improvement. Adjusted Operating Expense Ratio was 13.3% as compared to 14.3% in the prior-year quarter, a 102 basis points improvement. The Adjusted Operating Expense Ratio excludes stock-based compensation expense and certain non-recurring charges. The improvement in Adjuste d Operating Expense Ratio is primarily attributable to the Company's focus on reducing operating expenses, partially offset by a decrease in Average Daily Principal Balance including the impact from the sale of the credit cards receivable portfolio in
Return On Equity ("ROE") and Adjusted ROE – ROE for the quarter was 11%, as compared to (27)% in the prior-year quarter. The improvement was attributable to the increase in net income. Adjusted ROE for the quarter was 21%, as compared to 4% in the prior-year quarter.
Secured Personal Loans
As of
Funding and Liquidity
As of
Financial Outlook for Second Quarter and Full Year 2025
| 2Q 2025 | Full Year 2025 | ||
| Total Revenue | |||
| Annualized Net Charge-Off Rate | 11.90% +/- 15 bps | 11.5% +/- 50 bps | |
| Adjusted EBITDA1 | |||
| Adjusted Net Income1 | — | ||
| Adjusted EPS1 | — | ||
| GAAP Net Income | — | GAAP Profitable |
| 1 See the section entitled “About Non-GAAP Financial Measures” for an explanation of non-GAAP measures, and the table entitled “Reconciliation of Forward Looking Non-GAAP Financial Measures” for a reconciliation of non-GAAP to GAAP measures. | ||||
As previously indicated in a
Conference Call
As previously announced, Oportun’s management will host a conference call to discuss first quarter 2025 results at 5:00 p.m. ET (
About Non-GAAP Financial Measures
This press release presents information about the Company’s Adjusted Net Income (Loss), Adjusted EPS, Adjusted EBITDA, Adjusted Operating Expense, Adjusted Operating Expense Ratio, and Adjusted ROE, all of which are non-GAAP financial measures provided as a supplement to the results provided in accordance with accounting principles generally accepted in
About
Forward-Looking Statements
This press release contains forward-looking statements. These forward-looking statements are subject to the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this press release, including statements as to future performance, results of operations and financial position; achievement of the Company's strategic priorities and goals; expectations regarding the Company’s interim CFO; the Company's expectations regarding macroeconomic conditions; the Company's profitability and future growth opportunities including expected revenue growth in connection with increasing originations; the effect of and trends in fair value mark-to-market adjustments on the Company's loan portfolio and asset-backed notes; the Company's second quarter and full year 2025 outlook; the Company’s expectations regarding Adjusted EPS in full year 2025; the Company's expectations related to future profitability on an adjusted basis, and the plans and objectives of management for our future operations, are forward-looking statements. These statements can be generally identified by terms such as “expect,” “plan,” “goal,” “target,” “anticipate,” “assume,” “predict,” “project,” “outlook,” “continue,” “due,” “may,” “believe,” “seek,” or “estimate” and similar expressions or the negative versions of these words or comparable words, as well as future or conditional verbs such as “will,” “should,” “would,” “likely” and “could.” These forward-looking statements speak only as of the date on which they are made and, except to the extent required by federal securities laws,
Contacts
Investor Contact
(650) 590-4323
ir@oportun.com
Media Contact
Cosmo PR for
(415) 596-1978
michael@cosmo-pr.com
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except share and per share data, unaudited) | ||||||||
| Three Months Ended | ||||||||
| 2025 | 2024 | |||||||
| Revenue | ||||||||
| Interest income | $ | 220.2 | $ | 230.6 | ||||
| Non-interest income | 15.7 | 19.9 | ||||||
| Total revenue | 235.9 | 250.5 | ||||||
| Less: | ||||||||
| Interest expense | 57.4 | 54.5 | ||||||
| Net decrease in fair value | (72.7 | ) | (116.9 | ) | ||||
| Net revenue | 105.8 | 79.2 | ||||||
| Operating expenses: | ||||||||
| Technology and facilities | 36.4 | 47.1 | ||||||
| Sales and marketing | 19.9 | 16.0 | ||||||
| Personnel | 21.0 | 24.5 | ||||||
| Outsourcing and professional fees | 8.0 | 10.2 | ||||||
| General, administrative and other | 7.4 | 11.8 | ||||||
| Total operating expenses | 92.7 | 109.6 | ||||||
| Income (loss) before taxes | 13.2 | (30.5 | ) | |||||
| Income tax expense (benefit) | 3.4 | (4.0 | ) | |||||
| Net income (loss) | $ | 9.8 | $ | (26.4 | ) | |||
| Diluted Earnings (Loss) per Common Share | $ | 0.21 | $ | (0.68 | ) | |||
| Diluted Weighted Average Common Shares | 47,037,799 | 38,900,876 | ||||||
Note: Numbers may not foot or cross-foot due to rounding.
CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, unaudited) | ||||||||
| 2025 | 2024 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 78.5 | $ | 60.0 | ||||
| Restricted cash | 152.4 | 154.7 | ||||||
| Loans receivable at fair value | 2,770.5 | 2,778.5 | ||||||
| Capitalized software and other intangibles | 81.9 | 86.6 | ||||||
| Right of use assets - operating | 9.3 | 9.8 | ||||||
| Other assets | 133.6 | 137.6 | ||||||
| Total assets | $ | 3,226.3 | $ | 3,227.1 | ||||
| Liabilities and stockholders' equity | ||||||||
| Liabilities | ||||||||
| Secured financing | $ | 445.5 | $ | 535.5 | ||||
| Asset-backed notes at fair value | 863.9 | 1,080.7 | ||||||
| Asset-backed borrowings at amortized cost | 1,281.3 | 984.3 | ||||||
| Acquisition and corporate financing | 199.7 | 203.8 | ||||||
| Lease liabilities | 16.1 | 18.2 | ||||||
| Other liabilities | 53.8 | 50.9 | ||||||
| Total liabilities | 2,860.2 | 2,873.3 | ||||||
| Stockholders' equity | ||||||||
| Common stock | — | — | ||||||
| Common stock, additional paid-in capital | 615.2 | 612.6 | ||||||
| Accumulated deficit | (242.8 | ) | (252.5 | ) | ||||
| (6.3 | ) | (6.3 | ) | |||||
| Total stockholders’ equity | 366.1 | 353.8 | ||||||
| Total liabilities and stockholders' equity | $ | 3,226.3 | $ | 3,227.1 | ||||
Note: Numbers may not foot or cross-foot due to rounding.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions, unaudited) | |||||||
| Three Months Ended | |||||||
| 2025 | 2024 | ||||||
| Cash flows from operating activities | |||||||
| Net income (loss) | $ | 9.8 | $ | (26.4 | ) | ||
| Adjustments for non-cash items | 83.2 | 128.2 | |||||
| Proceeds from sale of loans in excess of originations of loans sold and held for sale | 3.0 | 1.1 | |||||
| Changes in balances of operating assets and liabilities | 4.9 | (17.0 | ) | ||||
| Net cash provided by operating activities | 101.0 | 85.9 | |||||
| Cash flows from investing activities | |||||||
| Net loan principal repayments (loan originations) | (49.7 | ) | 38.3 | ||||
| Proceeds from loan sales originated as held for investment | — | 1.4 | |||||
| Capitalization of system development costs | (5.6 | ) | (3.1 | ) | |||
| Other, net | (0.2 | ) | (0.1 | ) | |||
| Net cash provided by (used in) investing activities | (55.5 | ) | 36.5 | ||||
| Cash flows from financing activities | |||||||
| Borrowings | 745.4 | 260.3 | |||||
| Repayments | (774.0 | ) | (391.8 | ) | |||
| Net stock-based activities | (0.5 | ) | (0.2 | ) | |||
| Net cash used in financing activities | (29.1 | ) | (131.8 | ) | |||
| Net increase (decrease) in cash and cash equivalents and restricted cash | 16.3 | (9.5 | ) | ||||
| Cash and cash equivalents and restricted cash beginning of period | 214.6 | 206.0 | |||||
| Cash and cash equivalents and restricted cash end of period | $ | 231.0 | $ | 196.6 | |||
Note: Numbers may not foot or cross-foot due to rounding.
CONSOLIDATED KEY PERFORMANCE METRICS (unaudited) | ||||||||
| Three Months Ended | ||||||||
| Key Financial and Operating Metrics | 2025 | 2024 | ||||||
| Aggregate Originations (Millions) | $ | 469.4 | $ | 338.2 | ||||
| Portfolio Yield (%) | 33.0 | % | 32.5 | % | ||||
| 30+ Day Delinquency Rate (%) | 4.7 | % | 5.2 | % | ||||
| Annualized Net Charge-Off Rate (%) | 12.2 | % | 12.0 | % | ||||
| Other Metrics | ||||||||
| Managed Principal Balance at End of Period (Millions) | $ | 2,955.0 | $ | 3,027.5 | ||||
| Owned Principal Balance at End of Period (Millions) | $ | 2,659.4 | $ | 2,752.4 | ||||
| Average Daily Principal Balance (Millions) | $ | 2,705.2 | $ | 2,851.7 | ||||
Note: Numbers may not foot or cross-foot due to rounding.
ABOUT NON-GAAP FINANCIAL MEASURES
(unaudited)
This press release dated
The Company believes that the provision of these non-GAAP financial measures can provide useful measures for period-to-period comparisons of
Adjusted EBITDA
The Company defines Adjusted EBITDA as net income, adjusted to eliminate the effect of certain items as described below. The Company believes that Adjusted EBITDA is an important measure because it allows management, investors and its board of directors to evaluate and compare operating results, including return on capital and operating efficiencies, from period to period by making the adjustments described below. In addition, it provides a useful measure for period-to-period comparisons of
- The Company believes it is useful to exclude the impact of income tax expense, as reported, because historically it has included irregular income tax items that do not reflect ongoing business operations.
- The Company believes it is useful to exclude depreciation and amortization and stock-based compensation expense because they are non-cash charges.
- The Company believes it is useful to exclude the impact of interest expense associated with the Company's corporate financing facilities, including the senior secured term loan and the residual financing facility, as it views this expense as related to its capital structure rather than its funding.
- The Company excludes the impact of certain non-recurring charges, such as expenses associated with our workforce optimization, and other non-recurring charges because it does not believe that these items reflect ongoing business operations. Other non-recurring charges include litigation reserve, impairment charges, debt amendment and warrant amortization costs related to our corporate financing facilities.
- The Company also excludes fair value mark-to-market adjustments on its loans receivable portfolio and asset-backed notes carried at fair value because these adjustments do not impact cash.
Adjusted Net Income
The Company defines Adjusted Net Income as net income adjusted to eliminate the effect of certain items as described below. The Company believes that Adjusted Net Income is an important measure of operating performance because it allows management, investors, and the Company's board of directors to evaluate and compare its operating results, including return on capital and operating efficiencies, from period to period, excluding the after-tax impact of non-cash, stock-based compensation expense and certain non-recurring charges.
- The Company believes it is useful to exclude the impact of income tax expense (benefit), as reported, because historically it has included irregular income tax items that do not reflect ongoing business operations. The Company also includes the impact of normalized income tax expense by applying a normalized statutory tax rate.
- The Company believes it is useful to exclude the impact of certain non-recurring charges, such as expenses associated with our workforce optimization, and other non-recurring charges because it does not believe that these items reflect its ongoing business operations. Other non-recurring charges include litigation reserve, impairment charges, debt amendment and warrant amortization costs related to our corporate financing facilities.
- The Company believes it is useful to exclude stock-based compensation expense because it is a non-cash charge.
- The Company also excludes the fair value mark-to-market adjustment on its asset-backed notes carried at fair value to align with the 2023 accounting policy decision to account for new debt financings at amortized cost.
Adjusted Operating Expense and Adjusted Operating Expense Ratio
The Company defines Adjusted Operating Expense as total operating expenses adjusted to exclude stock-based compensation expense and certain non-recurring charges, such as expenses associated with our workforce optimization, and other non-recurring charges. Other non-recurring charges include litigation reserve, impairment charges, and debt amendment costs related to our Corporate Financing facility. The Company defines Adjusted Operating Expense Ratio as Adjusted Operating Expense divided by Average Daily Principal Balance. The Company believes Adjusted Operating Expense is an important measure because it allows management, investors and
Adjusted Return on Equity
The Company defines Adjusted Return on Equity (“ROE”) as annualized Adjusted Net Income divided by average stockholders’ equity. Average stockholders’ equity is an average of the beginning and ending stockholders’ equity balance for each period. The Company believes Adjusted ROE is an important measure because it allows management, investors and its board of directors to evaluate the profitability of the business in relation to its stockholders' equity and how efficiently it generates income from stockholders' equity.
Adjusted EPS
The Company defines Adjusted EPS as Adjusted Net Income divided by weighted average diluted shares outstanding.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, unaudited) | ||||||||
| Three Months Ended | ||||||||
| Adjusted EBITDA | 2025 | 2024 | ||||||
| Net income (Loss) | $ | 9.8 | $ | (26.4 | ) | |||
| Adjustments: | ||||||||
| Income tax expense (benefit) | 3.4 | (4.0 | ) | |||||
| Interest on corporate financing | 9.7 | 13.9 | ||||||
| Depreciation and amortization | 11.1 | 13.2 | ||||||
| Stock-based compensation expense | 2.8 | 4.0 | ||||||
| Workforce optimization expenses | (0.1 | ) | 0.8 | |||||
| Other non-recurring charges | 1.8 | 3.5 | ||||||
| Fair value mark-to-market adjustment | (4.9 | ) | (3.0 | ) | ||||
| Adjusted EBITDA | $ | 33.5 | $ | 1.9 | ||||
| Three Months Ended | ||||||||
| Adjusted Net Income | 2025 | 2024 | ||||||
| Net income (Loss) | $ | 9.8 | $ | (26.4 | ) | |||
| Adjustments: | ||||||||
| Income tax expense (benefit) | 3.4 | (4.0 | ) | |||||
| Stock-based compensation expense | 2.8 | 4.0 | ||||||
| Workforce optimization expenses | (0.1 | ) | 0.8 | |||||
| Other non-recurring charges | 1.8 | 3.5 | ||||||
| Mark-to-market adjustment on ABS notes | 7.9 | 27.1 | ||||||
| Adjusted income before taxes | 25.5 | 5.0 | ||||||
| Normalized income tax expense | 6.9 | 1.3 | ||||||
| Adjusted Net Income (Loss) | $ | 18.6 | $ | 3.6 | ||||
| Stockholders' equity | $ | 366.1 | $ | 382.0 | ||||
| GAAP ROE | 11.0 | % | (27.0 | )% | ||||
| Adjusted ROE (%) (1) | 21.0 | % | 3.7 | % | ||||
Note: Numbers may not foot or cross-foot due to rounding.
(1) Calculated as Adjusted Net Income (Loss) divided by average stockholders’ equity.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, unaudited) | ||||||||
| Three Months Ended | ||||||||
| Adjusted Operating Expense Ratio | 2025 | 2024 | ||||||
| OpEx Ratio | 13.9 | % | 15.5 | % | ||||
| Total Operating Expense | $ | 92.7 | $ | 109.6 | ||||
| Adjustments: | ||||||||
| Stock-based compensation expense | (2.8 | ) | (4.0 | ) | ||||
| Workforce optimization expenses | 0.1 | (0.8 | ) | |||||
| Other non-recurring charges | (1.0 | ) | (3.1 | ) | ||||
| Total Adjusted Operating Expense | $ | 88.9 | $ | 101.7 | ||||
| Average Daily Principal Balance | $ | 2,705.2 | $ | 2,851.7 | ||||
| Adjusted OpEx Ratio | 13.3 | % | 14.3 | % | ||||
Note: Numbers may not foot or cross-foot due to rounding.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, except share and per share data, unaudited) | ||||||||
| Three Months Ended | ||||||||
| GAAP Earnings (loss) per Share | 2025 | 2024 | ||||||
| Net income (loss) | $ | 9.8 | $ | (26.4 | ) | |||
| Net income (loss) attributable to common stockholders | $ | 9.8 | $ | (26.4 | ) | |||
| Basic weighted-average common shares outstanding | 45,496,705 | 38,900,876 | ||||||
| Weighted average effect of dilutive securities: | ||||||||
| Stock options | — | — | ||||||
| Restricted stock units | 1,541,094 | — | ||||||
| Diluted weighted-average common shares outstanding | 47,037,799 | 38,900,876 | ||||||
| Earnings (loss) per share: | ||||||||
| Basic | $ | 0.21 | $ | (0.68 | ) | |||
| Diluted | $ | 0.21 | $ | (0.68 | ) | |||
| Three Months Ended | ||||||||
| Adjusted Earnings (loss) Per Share | 2025 | 2024 | ||||||
| Diluted earnings (loss) per share | $ | 0.21 | $ | (0.68 | ) | |||
| Adjusted Net Income | $ | 18.6 | $ | 3.6 | ||||
| Basic weighted-average common shares outstanding | 45,496,705 | 38,900,876 | ||||||
| Weighted average effect of dilutive securities: | ||||||||
| Stock options | — | — | ||||||
| Restricted stock units | 1,541,094 | 435,763 | ||||||
| Diluted adjusted weighted-average common shares outstanding | 47,037,799 | 39,336,639 | ||||||
| Adjusted Earnings (loss) Per Share | $ | 0.40 | $ | 0.09 | ||||
Note: Numbers may not foot or cross-foot due to rounding.
RECONCILIATION OF FORWARD LOOKING NON-GAAP FINANCIAL MEASURES (in millions, unaudited) | ||||||||||||||||
| 2Q 2025 | FY 2025 | |||||||||||||||
| Low | High | Low | High | |||||||||||||
| Adjusted EBITDA | ||||||||||||||||
| 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 | ||||||||||||
| Stock-based compensation expense | 3.7 | 3.7 | 13.7 | 13.7 | ||||||||||||
| Other non-recurring charges | 1.4 | 1.4 | 6.0 | 6.0 | ||||||||||||
| Fair value mark-to-market adjustment | * | * | 8.3 | 5.3 | ||||||||||||
| Adjusted EBITDA | $ | 29.0 | $ | 34.0 | $ | 135.0 | $ | 145.0 | ||||||||
*Due to the uncertainty in macroeconomic conditions and quarterly volatility in the fair value mark to market adjustment, we are unable to precisely forecast the fair value mark-to-market adjustments on our loan portfolio and asset-backed notes on a quarterly basis. As a result, while we fully expect there to be a fair value mark-to-market adjustment which could have an impact on GAAP net income (loss), the net income (loss) number shown above assumes no change in the fair value mark-to-market adjustment.
| FY 2025 | ||||||||
| Adjusted Net Income and Adjusted EPS | 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 charges | 6.0 | 6.0 | ||||||
| Mark-to-market adjustment on ABS notes | 23.5 | 23.5 | ||||||
| Adjusted income before taxes | $ | 72.6 | $ | 85.6 | ||||
| Normalized income tax expense | 19.6 | 23.1 | ||||||
| Adjusted Net Income | $ | 53.0 | $ | 62.5 | ||||
| Diluted weighted-average common shares outstanding | 48.0 | 48.0 | ||||||
| Diluted earnings per share | $ | 0.48 | $ | 0.70 | ||||
| Adjusted Earnings Per Share | $ | 1.10 | $ | 1.30 | ||||
Note: Numbers may not foot or cross-foot due to rounding.
