OppFi (OPFI) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 net income of $27.7M, up 53.1% year-over-year, and total revenue of $126.3M, up 3.1% year-over-year, prompting a 20%+ increase in full-year earnings guidance.

• Adjusted net income rose 56.2% to $24.8M; adjusted EPS increased to $0.29, up from $0.19 year-over-year.

• Operational and credit initiatives improved loss, payment, and recovery performance, driving higher net profit margin.

• Strategic actions included a $0.12/share special dividend, $2.5M in share repurchases, and $10M in debt reduction.

• Entered the small business financing market with an equity investment in Bitty Advance, aiming to diversify product offerings.

Financial highlights

• Q2 2024 total revenue was $126.3M (+3.1% YoY); adjusted net income was $24.8M (+56.2% YoY); adjusted EPS was $0.29.

• Net income margin expanded by 710 bps to 21.9%; adjusted net income margin by 660 bps to 19.6%.

• Revenue yield improved by 6 percentage points to 134.8%; recoveries up 30% year-over-year.

• Free cash flow for Q2 was $18M; cash, cash equivalents, and restricted cash totaled $80.8M at quarter-end.

• Total assets as of June 30, 2024, were $573.1M; stockholders' equity was $201.7M.

Outlook and guidance

• Full-year 2024 revenue guidance affirmed at $510M–$530M, with adjusted net income guidance raised to $63M–$65M and adjusted EPS to $0.73–$0.75.

• Q3 2024 guidance: adjusted net income of $17M–$19M and adjusted EPS of $0.20–$0.22.

• Q4 revenue expected to be slightly higher than Q3; annualized net charge-off rate to be lower in Q3 than Q4, with year-over-year improvement in both.

• Management expects liquidity needs to be met for at least the next 12 months with $46.6M in unrestricted cash and $223.2M in undrawn debt as of June 30, 2024.