OppFi (OPFI) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 net income of $32.1M, up 106.4% year-over-year, and record total revenue of $136.6M, up 2.6% year-over-year.

• Adjusted net income rose 116.2% to $28.8M; adjusted EPS increased to $0.33, up from $0.16 in Q3 2023.

• Strategic execution included a 35% equity investment in Bitty Holdings to enter the small business financing market.

• Share repurchases totaled $3.6M YTD, with $16.4M remaining under repurchase authorization.

• Operational efficiencies, credit initiatives, and disciplined expense management drove profitability.

Financial highlights

• Total revenue for Q3 2024: $136.6M, up 2.6% year-over-year; net income: $32.1M, up 106.4% year-over-year.

• Adjusted net income: $28.8M, up 116.2% year-over-year; adjusted EPS: $0.33.

• Net charge-off rate as a percentage of total revenue decreased to 34.3% from 42% a year ago.

• Operating expense as a percentage of total revenue improved to 41.1%, down from 45.1% in Q3 2023.

• Free cash flow YTD 2024: $74.6M, more than double YTD 2023 ($33.6M).

Outlook and guidance

• Full-year 2024 total revenue guidance affirmed at $510M–$530M.

• Full-year adjusted net income guidance raised to $74M–$76M (prior: $63M–$65M); adjusted EPS guidance increased to $0.85–$0.87 (prior: $0.73–$0.75).

• Expects Q1 2025 adjusted net income growth to exceed 15% year-over-year, with full-year 2025 guidance to be provided in March.