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Oportun Q1 2025 Earnings Report
Oportun reported a strong first quarter in 2025, achieving GAAP profitability for the second consecutive quarter, with significant increases in net income and EPS.
Key Takeaways
Oportun Financial Corporation reported a strong first quarter in 2025, achieving GAAP net income of $9.8 million, a $36 million increase year-over-year, and GAAP EPS of $0.21, up $0.89 year-over-year. Adjusted EPS increased to $0.40, and operating expenses were reduced by 15% year-over-year. The company reiterated its full-year 2025 credit performance and profit expectations.
GAAP net income increased by $36 million year-over-year to $9.8 million, marking the second consecutive quarter of GAAP profitability.
Adjusted EPS rose to $0.40, an increase of $0.31 year-over-year, and Adjusted Net Income was up $15 million year-over-year.
Operating expenses decreased by 15% year-over-year to $93 million, reflecting strong cost discipline.
Aggregate Originations increased by 39% to $469 million, and the 30+ Day Delinquency Rate decreased for the fifth consecutive quarter to 4.7%.
Oportun
Oportun
Forward Guidance
Oportun provided guidance for Q2 2025 and full year 2025, expecting continued profitability and strong credit performance, while prudently moderating loan originations growth.
Positive Outlook
- Full year 2025 GAAP Net Income is expected to be profitable.
- Full year 2025 Adjusted EPS guidance of $1.10 to $1.30 per share implies growth of 53% to 81%.
- Full year 2025 Adjusted EBITDA is projected to be between $135 million and $145 million.
- Full year 2025 total revenue is expected to be between $945 million and $970 million.
- Full year 2025 Annualized Net Charge-Off Rate is expected to be 11.5% +/- 50 bps, indicating stable credit performance.
Challenges Ahead
- Loan originations growth for full year 2025 is prudently moderated to approximately 10% from the previous 10% to 15% range.
- The company is unable to precisely forecast the fair value mark-to-market adjustments due to macroeconomic uncertainty and quarterly volatility.
- Q2 2025 total revenue is expected to be slightly lower than Q1 2025, ranging from $237 million to $242 million.
- Q2 2025 Adjusted EBITDA is projected to be between $29 million and $34 million, lower than the full year projection.
- The guidance assumes no change in the fair value mark-to-market adjustment, which could impact GAAP net income (loss).