OppFi Q2 2022 Earnings Report
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.