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Sep 30, 2023

OppFi Q3 2023 Earnings Report

OppFi's financial performance improved in Q3 2023, with increased revenue, net income, and adjusted EPS, leading to raised full-year earnings outlook.

Key Takeaways

OppFi reported a 7% year-over-year increase in total revenue, reaching $133.2 million for Q3 2023. Net income stood at $15.5 million, with an adjusted net income of $13.8 million. The company raised its full-year adjusted net income and adjusted earnings per share guidance for the third time this year.

Total revenue increased by 7% year-over-year to $133.2 million.

Net income reached $15.5 million.

Adjusted net income was reported at $13.8 million.

Adjusted EPS was $0.16 for the quarter.

Total Revenue
$75.7M
Previous year: $124M
-39.1%
EPS
$0.16
Previous year: $0.01
+1500.0%
Auto-approval rate
72%
Previous year: 69%
+4.3%
Net charge-offs vs revenue
42%
Previous year: 66%
-36.4%
Average yield (annualized)
129%
Gross Profit
$72.5M
Cash and Equivalents
$66M
Previous year: $50.5M
+30.8%
Free Cash Flow
$71.4M
Total Assets
$601M
Previous year: $580M
+3.6%

OppFi

OppFi

Forward Guidance

OppFi affirmed total revenue guidance and raised adjusted net income and adjusted earnings per share guidance for the full year 2023.

Positive Outlook

  • Affirm total revenue $500 million to $520 million, resulting in approximately 10% to 15% growth year over year
  • Raise adjusted net income $40 million to $42 million, from previous range of $29 million to $35 million
  • Increase adjusted earnings per share $0.47 to $0.49 based on approximate weighted average diluted share count of 85.5 million
  • Previous range of adjusted net income was $29 million to $35 million
  • Previous range of adjusted EPS was $0.34 to $0.41

Challenges Ahead

  • The guidance is based on current expectations and assumptions about future events
  • The guidance involves significant risks and uncertainties that could cause the actual results to differ materially from the expected results
  • Economic slowdowns could impact OppFi's business
  • Inflation and interest rate changes could impact OppFi's business
  • Recessions and tightening of credit markets on OppFi’s business