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Jun 30, 2022
OppFi Q2 2022 Earnings Report
OppFi's financial results for Q2 2022 were reported, showing revenue increase and growth in net originations and ending receivables.
Key Takeaways
OppFi reported a 38% year-over-year increase in revenue to $107.9 million for Q2 2022. Net originations increased by 57% year-over-year, and ending receivables increased by 54% year-over-year. The company reported a net income of $9.5 million and an adjusted net income of $6.8 million, with basic and diluted EPS at $0.26 and $0.10, respectively, and adjusted EPS at $0.08.
Revenue increased 38% year over year to $107.9 million.
Net originations increased 57% year over year to $226.2 million.
Ending receivables increased 54% year over year to $401.5 million.
Net income was reported at $9.5 million.
OppFi
OppFi
Forward Guidance
OppFi reaffirms its full-year 2022 financial guidance of total revenue growth of 20% to 25% year over year. The Company now expects to report break-even results on an adjusted basis or a modest adjusted net loss for the full year.
Positive Outlook
- Reaffirms full-year 2022 financial guidance of total revenue growth of 20% to 25% year over year.
- Operating expenses as a percentage of total revenue of 43% to 47%, excluding interest expense, add backs, and one-time items.
- Company had $23.5 million in unrestricted cash as of June 30, 2022.
- Company had an additional $212.4 million of unused debt capacity under its financing facilities for future availability as of June 30, 2022.
- Total financing commitments of $550.0 million and cash on the balance sheet of $57.6 million, OppFi had $607.6 million in funding capacity as of June 30, 2022.
Challenges Ahead
- Given limited visibility considering the current macroeconomic environment.
- Company now expects to report break-even results on an adjusted basis or a modest adjusted net loss for the full-year.
- Due to persistent high inflation that caused significant credit deterioration in the latter half of the second quarter and early third quarter.
- OppFi withdraws its previously issued guidance for metrics other than total revenue growth and operating expenses as a percentage of total revenue.
- Total cash and restricted cash decreased by $4.7 million as of June 30, 2022 compared to December 31, 2021.