OppFi Reports Record Third Quarter Results and Raises Full-Year Guidance

Stonegate Capital Partners has updated its coverage on OppFi, Inc. following the company's third quarter 2025 financial results that exceeded expectations across multiple key metrics. OppFi reported revenue of $155.1 million, adjusted net income of $40.7 million, and adjusted earnings per share of $0.46 for the quarter, surpassing both Stonegate and consensus estimates. The performance represents significant year-over-year growth, with revenue increasing 13.5% and adjusted net income rising 41.0% compared to the same period last year.

The company's net revenue margin expanded to 67.4% for the quarter, reflecting a 70 basis point improvement from the third quarter of 2024. This strong performance was driven by record total revenue complemented by growth in originations from new customers, operating discipline, and scale benefits. Adjusted net income margin showed even more substantial improvement, expanding 520 basis points year-over-year to 26.3%. Net income increased dramatically by 136.9% year-over-year to $75.9 million, primarily due to lower expenses and a $32.0 million non-cash gain from lower warrant fair value.

OppFi ended the third quarter with $75.2 million in cash and restricted cash, including $45.4 million in unrestricted cash. The company maintains a total funding capacity of $600.2 million, including $204.2 million in undrawn debt. Year-to-date, OppFi generated $66.1 million in free cash flow, enabling continued investment in growth and a $21.7 million special dividend paid during the third quarter. The company also executed $7.4 million of share repurchases and secured a new $150 million Castlelake facility that reduces financing costs by 150 basis points.

Total net originations for the third quarter increased 12.5% year-over-year to $246.1 million, driven by stronger demand and credit-model upgrades enabling larger average loans. Retained net originations grew 8% year-over-year to $215.2 million, while receivables ended the quarter up 16% year-over-year at $481.0 million. The auto-approval rate improved to 79%, up from 77% in the prior-year period, reflecting ongoing enhancements in automation and risk stratification through OppFi's Model 6 platform.

Credit quality remained stable to slightly softer in the third quarter, with the net charge-off rate increasing to 35.1% of total revenue, up approximately 100 basis points from a year ago but down from 42% in the fourth quarter of 2024. Annualized net charge-offs as a percentage of average receivables increased to 47% from 46% last year, driven by elevated early-summer charge-offs that were partially offset by improved recoveries. These losses reflect the continued use of risk-based pricing and the ongoing implementation of the Model 6.1 refit, which is rolling out in the fourth quarter and will be fully implemented in the first quarter of 2026 to tighten higher-risk segments while sustaining growth.

Based on continued momentum, OppFi raised the low end of its full-year 2025 revenue guidance to $590–$605 million, up 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, based on approximately 89.0 million diluted shares. Stonegate Capital Partners believes OppFi remains well positioned to meet or exceed this guidance based on full-year 2025 trends. The firm's valuation analysis utilizes a price-to-earnings multiple range of 8.5x to 9.5x with a midpoint of 9.0x, arriving at a valuation range of $14.56 to $16.28 with a midpoint of $15.42.