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Dec 31, 2024
Oportun Q4 2024 Earnings Report
Oportun reported a return to GAAP profitability with increased Adjusted EBITDA and reduced operating expenses in the fourth quarter of 2024.
Key Takeaways
Oportun finished the year stronger than anticipated, returning to GAAP profitability in Q4 2024 with $9 million in net income, a significant increase from a net loss in the prior year. Adjusted EBITDA more than quadrupled, and operating expenses were substantially reduced, contributing to improved financial performance.
Returned to GAAP profitability with net income of $9 million in the fourth quarter.
Adjusted EBITDA of $41 million, up 315% year-over-year.
Total quarterly operating expenses of $89 million, reduced 31% year-over-year.
Quarterly annualized net charge-off rate of 11.7%, lowest since third quarter of 2022.
Oportun
Oportun
Forward Guidance
Oportun is raising its full year 2025 expectations for Adjusted EPS to $1.10 to $1.30 per share, implying 53% to 81% growth, driven by continued focus on cost discipline and improved credit performance.
Positive Outlook
- Raising full year 2025 Adjusted EPS expectations to $1.10 to $1.30 per share.
- Implies 53% to 81% growth in Adjusted EPS for full year 2025.
- Anticipated full year 2025 Adjusted EBITDA of $135 million to $145 million.
- Projected full year 2025 Adjusted Net Income of $53 million to $63 million.
- Expected full year 2025 Annualized Net Charge-Off Rate of 11.5% +/- 50 bps.
Challenges Ahead
- First quarter 2025 total revenue guidance of $225 million to $230 million, lower than Q4 2024.
- First quarter 2025 Adjusted EBITDA guidance of $18 million to $22 million, lower than Q4 2024.
- First quarter 2025 net income is projected to be a loss of $(5.4) million to $(2.2) million.
- Uncertainty in macroeconomic conditions and quarterly volatility in fair value mark-to-market adjustments.
- First quarter 2025 Annualized Net Charge-Off Rate expected to be 12.30% +/- 15 bps, higher than Q4 2024.