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Jun 30, 2021
OppFi Q2 2021 Earnings Report
OppFi's financial performance rebounded significantly in Q2 2021, driven by economic recovery and strong credit quality.
Key Takeaways
OppFi reported strong Q2 2021 results with significant growth in net originations and ending receivables. The company's profitability remained strong, driven by improved credit quality and operating efficiency. OppFi also made progress on its growth strategies, including new products and partnerships.
Net originations increased by 84% year-over-year and 44% sequentially.
Ending receivables grew by 19% year-over-year.
Revenue increased by 28% compared to Q2 2020.
Auto approval rate improved from 41% in Q1 to 51% in Q2.
OppFi
OppFi
Forward Guidance
OppFi expects revenue between $350 and $360 million, adjusted EBITDA between $120 and $125 million, and adjusted net income between $62 and $66 million for the full year 2021.
Positive Outlook
- Ending receivables of approximately $380-400 million, approaching 50% growth over Q2 ending levels.
- Origination levels returning to pre-COVID levels by year-end.
- Potential upside to guidance should the realized impact of exogenous factors be less pronounced than currently assumed.
- Launch of OppFi Card to select customers.
- Agreements signed for SalaryTap with Brightside and Best Money Moves.
Challenges Ahead
- Reduced consumer demand due to the current surge in the COVID Delta variant.
- Expected continuation of government stimulus programs that began in the second half of July.
- Original outlook for 2021 did not contemplate any 2021 government stimulus.
- Timing delays in demand due to exogenous factors.
- Uncertainty regarding the return of normalized demand due to the surge in COVID's Delta variant and extension of government stimulus programs.