OppFi (OPFI, Financial) has announced a stellar performance for the first quarter, reporting revenue of $140.27 million, surpassing analysts' expectations of $137.71 million. This achievement marks the highest quarterly revenue and adjusted net income in the company's history.
Guided by a strategic focus on growth and enhanced credit modeling, OppFi has improved its operational efficiency and maintained a robust balance sheet. These efforts have positioned the company to pursue ongoing profitable growth. As a result, OppFi has raised its full-year guidance for adjusted net income, projecting continued success into 2025.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for OppFi Inc (OPFI, Financial) is $13.00 with a high estimate of $13.00 and a low estimate of $13.00. The average target implies an upside of 34.02% from the current price of $9.70. More detailed estimate data can be found on the OppFi Inc (OPFI) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, OppFi Inc's (OPFI, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for OppFi Inc (OPFI, Financial) in one year is $4.90, suggesting a downside of 49.48% from the current price of $9.7. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the OppFi Inc (OPFI) Summary page.
OPFI Key Business Developments
Release Date: March 05, 2025
- Total Revenue (Q4 2024): $135.7 million, a 2.1% increase year-over-year.
- Net Originations (Q4 2024): $213.7 million, up 11.3% year-over-year.
- Retained Net Originations (Q4 2024): $192.5 million, a 6% increase.
- Net Revenue (Q4 2024): $80.8 million, a 22.9% increase year-over-year.
- Annualized Net Charge-Off Rate (Q4 2024): 54.5% of average receivables, improved by 430 basis points.
- Total Expenses Before Interest (Q4 2024): $45.1 million, 33.2% of total revenue.
- Interest Expense (Q4 2024): 8.1% of total revenue, down from 9.1% last year.
- Adjusted Net Income (Q4 2024): $20.3 million, more than doubled from $8.4 million last year.
- Adjusted EPS (Q4 2024): $0.23, up from $0.10 last year.
- Cash Equivalents and Restricted Cash (End of Q4 2024): $88.3 million.
- Total Debt (End of Q4 2024): $318.8 million.
- Total Stockholders' Equity (End of Q4 2024): $234.2 million.
- Total Revenue (Full Year 2024): $526 million, a 3.3% increase from 2023.
- GAAP Net Income (Full Year 2024): $83.8 million, up from $39.5 million in 2023.
- Diluted EPS (Full Year 2024): $0.36, compared with a loss of $0.06 in 2023.
- Adjusted Net Income (Full Year 2024): $82.7 million, up from $41.5 million in 2023.
- Adjusted EPS (Full Year 2024): $0.95, compared with $0.49 in 2023.
- 2025 Revenue Guidance: $563 million to $594 million, a 7% to 13% increase.
- 2025 Adjusted Net Income Guidance: $95 million to $97 million, a 15% to 17% increase.
- 2025 Adjusted EPS Guidance: $1.06 to $1.07.
- Q1 2025 Adjusted Net Income Guidance: $22 million to $24 million, more than double previous guidance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- OppFi Inc (OPFI, Financial) reported record Q4 and annual total revenue for 2024, with expectations for continued strong results in 2025.
- The company's auto approval percentage improved to almost 80% in Q4 2024, enhancing operational efficiency and funnel metrics.
- Net charge-off rates improved by 10% as a percentage of revenue compared to the prior year, indicating better credit quality.
- OppFi Inc (OPFI) successfully paid down corporate debt ahead of schedule, demonstrating financial strength and flexibility.
- The company exceeded its 2024 guidance and street estimates, driven by strategic initiatives and operational improvements.
Negative Points
- Despite strong performance, there are concerns about macroeconomic uncertainty and potential impacts on consumer behavior.
- The company faces challenges in maintaining growth while ensuring high credit quality amidst economic volatility.
- There is a risk of diminishing returns on automation improvements as the company approaches the upper bound of automation capabilities.
- Potential impacts of tariffs and inflation on consumer repayment behavior remain uncertain.
- The company must carefully manage its capital allocation strategy to balance growth initiatives, debt reduction, and shareholder returns.
