Stephens has begun coverage on OppFi (OPFI, Financial), assigning it an 'Equal Weight' rating and setting a $14.50 price target. The analyst's assessment within the FinTech sector involves considering the relatively short operating histories and recent financial inflows of the eight companies now under evaluation. For OppFi, the analysis pays close attention to its growth prospects, past credit performance, and its position among both online non-prime lenders and the wider sphere of alternative consumer finance firms.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for OppFi Inc (OPFI, Financial) is $14.75 with a high estimate of $16.00 and a low estimate of $13.50. The average target implies an upside of 6.12% from the current price of $13.90. 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 2.0, 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 $4.48, suggesting a downside of 67.77% from the current price of $13.9. 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: May 07, 2025
- Revenue: Increased to a record $140 million, up 10% year over year.
- Net Originations: Grew 16% to $189 million.
- Retained Net Originations: Increased 11% to $169 million.
- Net Charge-Off Rate: Improved to 35% as a percentage of revenue, down from 48% the prior year.
- Net Revenue: Increased 44% to $91 million.
- Average Yield: Improved by 630 basis points to a record 136%.
- Total Expenses Before Interest: Declined 18% to $38 million.
- Interest Expense: Reduced to 7% of total revenue, down from 9% the prior year.
- Adjusted Net Income: Increased 285% to $34 million, up from $9 million.
- Adjusted Earnings Per Share: Grew to $0.38 from $0.10 last year.
- Cash Equivalents and Restricted Cash: Ended the quarter with $91 million.
- Total Debt: $288 million.
- Total Stockholders' Equity: $238 million.
- Total Funding Capacity: $616 million, including $237 million in unused debt capacity.
- Full Year 2025 Revenue Guidance: Expected to be $563 million to $594 million, a 7% to 13% increase from 2024.
- Full Year 2025 Adjusted Net Income Guidance: Increased to $106 million to $113 million, a 28% to 37% increase from 2024.
- Full Year 2025 Adjusted EPS Guidance: Expected to be between $1.18 and $1.26.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- OppFi Inc (OPFI, Financial) reported a record quarter with significant increases in revenue, adjusted net income, and operating margin.
- The company achieved a 16% increase in originations and a 10% increase in revenue year over year.
- OppFi Inc (OPFI) improved its net charge-off rate to 35% from 48% the previous year, indicating better credit performance.
- The auto approval rate for loans improved to 79% in Q1 2025, enhancing operational efficiency.
- The company paid off its corporate debt and expanded its blue out facility, strengthening its financial position.
Negative Points
- Despite strong performance, macroeconomic uncertainties such as tariffs and economic volatility remain a concern.
- The company has not committed to a regular quarterly dividend, opting instead for occasional special dividends.
- There is a potential risk associated with the company's focus on inorganic growth opportunities, which may not always yield expected returns.
- The company's reliance on Model 6 for credit risk assessment may face challenges if economic conditions change unexpectedly.
- While the company has improved operational efficiencies, there is ongoing pressure to maintain cost discipline and further enhance efficiency.
