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Jun 30, 2021
Oportun Q2 2021 Earnings Report
Oportun reported strong results driven by superior customer offering and differentiated A.I.-driven capabilities.
Key Takeaways
Oportun Financial Corporation reported strong second-quarter results, with aggregate originations growth of 175% year-over-year. Diluted EPS was $0.24, and Adjusted EPS was $0.56. The company's growth is attributed to broader engagement with new and returning customers across its digital platform and delivering some of the best credit metrics in the company's history.
Aggregate originations increased by 175% year-over-year, reaching $433 million.
The managed principal balance at the end of the period was $1.87 billion, a decrease of 3% year-over-year.
The 30+ Day Delinquency Rate improved to 2.5% compared to 3.7% in the prior-year period.
The Annualized Net Charge-Off Rate decreased to 6.4% compared to 10.6% in the prior-year period.
Forward Guidance
Oportun provided financial outlook for the third quarter and full year 2021.
Positive Outlook
- Aggregate Originations for 3Q 2021 are expected to be $600 million.
- Total Revenue for 3Q 2021 is expected to be $152 million.
- Adjusted EBITDA for 3Q 2021 is expected to be between $3 million and $5 million.
- Adjusted Net Income for 3Q 2021 is expected to be between $12 million and $14 million.
- Adjusted EPS for 3Q 2021 is expected to be between $0.40 and $0.46.
Challenges Ahead
- Annualized Net Charge-Off Rate for 3Q 2021 is expected to be 6.7% +/- 10 bps.
- Aggregate Originations for the full year 2021 are expected to be $2.125 billion.
- Total Revenue for the full year 2021 is expected to be between $602 million and $606 million.
- Adjusted EBITDA for the full year 2021 is expected to be between $7 million and $10 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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