Oppfi Inc ((OPFI)) has held its Q4 earnings call. Read on for the main highlights of the call.
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OppFi’s latest earnings call carried an upbeat tone, as management celebrated record revenue, sharply higher profits, and leaner operations while openly addressing emerging credit pressures. Executives framed recent delinquency and charge-off spikes as manageable and temporary, pointing to upgraded underwriting models, new technology, and disciplined funding as drivers of sustained momentum.
Record 2025 Revenue and Growth
OppFi reported fiscal 2025 revenue of $597,000,000, a 14% increase from the prior year that underscored robust demand for its products. The full-year revenue yield inched up to 133% from 131%, signaling the company is not just growing volume but also maintaining strong pricing power on its loan book.
Profitability Surges on Higher Scale
GAAP net income jumped to $146,000,000 from $84,000,000 in 2024, highlighting meaningful operating leverage. Adjusted net income climbed to $140,000,000 from $83,000,000, and adjusted EPS rose to $1.59 from $0.95, reflecting both earnings strength and efficiency gains across the platform.
Fourth-Quarter Records and Momentum
Fourth-quarter revenue hit $159,000,000, up 17% year over year, setting a new high for the company. Q4 adjusted net income reached a record $26,000,000 with adjusted EPS of $0.30, up 27% and 28% respectively, showing that OppFi exited the year with accelerating earnings power.
Originations and Receivables Expansion
Full-year originations increased 12% to $899,000,000, while fourth-quarter originations rose 8% to $230,000,000, underscoring continued customer demand. Ending receivables climbed 16% to $493,000,000, expanding the earning asset base that will support future revenue streams if credit performance holds.
Improved Unit Economics and Yield Management
Management highlighted Underwriting Model 6 and upcoming versions 6.1 and 7.0 as key drivers of better risk-based pricing and the ability to offer larger loans to higher-quality borrowers. With a stable Q4 revenue yield of 130% and a full-year average of 133%, OppFi appears to be balancing growth with disciplined yield management.
Lower Operating and Interest Expense Ratios
Total expenses before interest dropped to 28% of revenue in Q4 from 33% a year earlier, bringing the full-year ratio down to 29% from 35% and showcasing tighter cost control. Interest expense fell to 6% of revenue from 8% as the company paid down debt and upsized facilities at better terms, enhancing net margins.
Tech Investments, LOLA, and New Products
OppFi has completed build and testing of LOLA, its new origination and servicing platform, and is currently in quality assurance with a major migration anticipated in the third quarter of 2026. Management also plans to launch a line-of-credit product in 2026, aimed at broadening its product suite and entering additional geographies.
Liquidity, Capital Actions, and Funding Capacity
The company ended the quarter with $93,000,000 in cash and equivalents and total funding capacity of $618,000,000, including $204,000,000 in unused debt capacity for further growth. OppFi also repurchased 515,000 shares for $5,000,000 and reiterated expectations for solid free cash flow, signaling confidence in its balance sheet and valuation.
Credit Headwinds from Summer Vintages
Management acknowledged higher delinquencies on loans originated over the summer, which pressured near-term credit metrics even as early indicators improved in December and January. While the company sees these vintages as a temporary challenge, they remain a key area of focus as underwriting models are refined and marketing is adjusted.
Q4 Spike in Net Charge-Offs
Net charge-offs rose to 45% of revenue in the fourth quarter from 42% a year earlier, reflecting the impact of those weaker summer cohorts. As a percentage of receivables, net charge-offs increased to 59% from 54%, reminding investors that growth in non-prime lending still comes with heightened credit risk.
Macro Sensitivity and Inflation Risk
Executives called out inflation and recent spikes in gas prices as notable risks to borrowers’ discretionary income and repayment capacity. The company said it is closely tracking customer sentiment and stands ready to tighten targeting or adjust pricing should macro conditions weaken further.
Bank Partner Retention and Leverage Considerations
Some bank partners have opted to retain a higher share of originations in certain states, which can reduce OppFi’s net originations and requires careful monitoring of margins. Total debt stood at $321,000,000 at quarter-end, and while leverage is being managed and interest costs are down, it remains an important factor as the company scales.
2026 Outlook and Forward Strategy
For 2026, OppFi guided to total revenue of $650,000,000 to $675,000,000, implying top-line growth of 9% to 13% from 2025. Management expects adjusted net income of $153,000,000 to $160,000,000 and EPS of $1.76 to $1.84, or 11% to 16% growth, emphasizing double-digit expansion supported by improving early-vintage performance and ongoing model and operational upgrades.
OppFi’s earnings call painted a picture of a lender delivering record growth and profitability while navigating the inevitable bumps of non-prime credit cycles. With stronger unit economics, a growing receivables base, cautious credit oversight, and confident 2026 guidance, the company is leaning into expansion even as it keeps a watchful eye on delinquencies, macro risks, and leverage.