Oportun Financial (OPRT) investor relations material

Business overview and product strategy

• Offers unsecured and secured personal loans, plus an automated savings product, targeting underserved, low-to-moderate income individuals, with a bilingual approach and advanced AI-driven underwriting.

• Originated over 7.7 million loans and extended $20.8 billion in credit since 2005, generating $1 billion in 2024 revenue and $105 million in adjusted EBITDA.

• Secured personal loans grew 58% year over year, now 7% of portfolio, with lower credit losses and higher revenue per loan than unsecured loans.

• Automated underwriting leverages AI, alternative data, and 100% income verification, enabling rapid adaptation to market changes.

• Set and Save savings product helps members save $1,800 annually on average, with $11.9 billion saved since 2015.

Financial performance and guidance

• Achieved third consecutive quarter of GAAP profitability, with $6.9 million net income and $0.14 diluted EPS in Q2; adjusted net income was $15 million and adjusted EPS $0.31.

• Q2 originations reached $481 million, up 11% year over year; net revenue rose 74% year over year to $105 million, driven by improved credit performance and cost discipline.

• Adjusted ROE improved to 16%, up 12 percentage points year over year; operating expenses fell 13% from prior year.

• Full-year 2025 adjusted EPS guidance raised to $1.20–$1.40, representing 67%–94% growth over 2024; operating expenses expected to decline 7% year over year.

• Deleveraged balance sheet, reducing debt-to-equity from 8.7x to 7.3x, with $105 million in operating cash flow and $618 million in available funding capacity.

Credit quality and risk management

• Front book loans (originated since July 2022) show annualized net charge-off rate of 11.6%, outperforming back book and within target range.

• Ongoing refinements to credit model and focus on existing members have improved credit outcomes and reduced losses.

• Borrowers are resilient, with stable employment and housing; median gross income of $50,000 and average job/residence tenure over five years.

• Delinquencies and dollar losses have declined year over year for six and seven consecutive quarters, respectively.

• Minimal exposure to borrowers without ITIN or SSN, limiting impact from immigration policy changes.