OppFi (OPFI) AI Stock Analysis

• Market Cap: $714.57M
• Dividend Yield: N/A
• Average Volume (3M): 1.50M
• Price to Earnings (P/E): 43.0
• Beta (1Y): 1.17
• Revenue Growth: 2.71%
• EPS Growth: N/A
• Country: US
• Employees: 445
• Sector: Financial
• Sector Strength: 81
• Industry: Software - Application
• EPS (TTM): 0.19
• Shares Outstanding: 24,226,696
• 10 Day Avg. Volume: 1,220,841
• 30 Day Avg. Volume: 1,501,286
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.60
• Price to Cash Flow (P/CF): 2.20
• P/FCF Ratio: 2.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $13.00
• Price Target Upside: 59.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

OppFi's strong financial performance and positive earnings call outlook are key strengths, reflecting robust revenue growth and improved profitability. However, the high valuation and mixed technical indicators, along with concerns about leverage, temper the overall score. The company is well-positioned for future growth, but potential investors should be mindful of valuation levels and leverage risks.

Positive Factors

Credit Performance

The company continued demonstrating operating leverage in 4Q along with higher yields on the portfolio and improving credit performance, leading to strong bottom-line outperformance versus expectations.

Financial Performance

Shares traded up ~11% following strong fourth-quarter performance and guidance for continued earnings growth in 2025.

Negative Factors

Dilution Concerns

Investors must revisit the additional dilution from SPAC-era warrants, which add approximately 3.6M shares to the diluted share count.

Valuation Concerns

Analyst remains on the sidelines based purely on a valuation perspective with shares fairly valued at ~9x the updated 2025 adjusted EPS estimate.

OppFi Business Overview & Revenue Model

Company Description

OppFi (OPFI) is a financial technology company that specializes in providing accessible and transparent credit products to underserved consumers. Operating primarily in the consumer finance sector, the company offers a range of products designed to help individuals who lack access to traditional financial services. Its core offerings include installment loans and other credit products tailored to meet the needs of consumers with lower credit scores.

How the Company Makes Money

OppFi makes money primarily through the interest and fees generated from the financial products it offers, such as installment loans. The company partners with banks to facilitate its lending services, enabling it to reach a wider customer base while maintaining compliance with regulatory standards. Additionally, OppFi leverages its proprietary technology platform to assess credit risk and streamline the lending process, which helps in optimizing its revenue generation. By focusing on a segment of the market that is often overlooked by traditional financial institutions, OppFi is able to charge higher interest rates, which in turn contributes significantly to its earnings.

OppFi Financial Statement Overview

Summary

OppFi has shown strong financial performance characterized by robust revenue growth, improved profit margins, and efficient cash flow management. However, the high debt-to-equity ratio remains a concern, impacting overall financial stability.

Income Statement

OppFi shows strong revenue growth with a consistent upward trend over the past few years, culminating in a significant increase in 2024. The gross profit margin remains robust at 100%, indicating effective cost management. The net profit margin improved substantially from negative in 2023 to a healthy 15.94% in 2024, reflecting enhanced profitability. EBIT and EBITDA margins have also improved significantly, showing operational efficiency gains.

Balance Sheet

The company has a high debt-to-equity ratio due to substantial debt levels combined with limited equity, which poses a leverage risk. However, the increase in stockholders' equity from previous years is a positive sign. The equity ratio improved to 36.51% in 2024, indicating enhanced financial stability. Return on equity turned positive and reached 35.79% in 2024, showing effective utilization of equity to generate profits.

Cash Flow

The cash flow statement is robust, with significant free cash flow growth from 2023 to 2024. The operating cash flow to net income ratio indicates strong cash generation relative to net income, signaling healthy cash flow management. The free cash flow to net income ratio is exceptionally high, pointing towards efficient cash conversion and strong liquidity position.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
525.96M	508.95M	452.86M	350.57M	291.01M
	Gross Profit
420.78M	388.98M	344.67M	251.34M	239.19M
	EBIT
94.54M	46.35M	-6.34M	57.26M	77.52M
	EBITDA
308.60M	46.35M	55.32M	118.20M	103.53M
	Net Income Common Stockholders
7.26M	-1.00M	7.10M	25.55M	77.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
61.34M	31.79M	16.24M	25.06M	25.60M
	Total Assets
641.17M	601.54M	579.84M	502.11M	285.84M
	Total Debt
332.05M	349.18M	363.62M	274.02M	158.10M
	Net Debt
270.71M	317.39M	347.38M	248.96M	132.50M
	Total Liabilities
406.96M	407.51M	420.69M	344.23M	186.51M
	Stockholders Equity
234.21M	10.44M	-494.00K	-9.04M	99.33M
Cash Flow		Free Cash Flow
323.81M	287.15M	230.05M	152.97M	181.39M
	Operating Cash Flow
323.81M	296.15M	243.30M	167.35M	192.11M
	Investing Cash Flow
-243.44M	-244.29M	-317.24M	-199.47M	-98.31M
	Financing Cash Flow
-66.02M	-27.58M	61.26M	48.83M	-84.12M

OppFi Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPFI, the sentiment is Negative. The current price of 8.16 is below the 20-day moving average (MA) of 9.37, below the 50-day MA of 11.13, and above the 200-day MA of 7.05, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 42.59 is Neutral, neither overbought nor oversold. The STOCH value of 22.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OPFI.

OppFi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QFIN	84 Outperform	$5.69B	6.67	27.18%	3.03%	3.88%	56.29%
ENVA	77 Outperform	$2.22B	11.72	17.19%	―	25.51%	36.96%
WRLD	77 Outperform	$646.73M	8.24	19.28%	―	-2.78%	24.39%
OPFI	70 Outperform	$714.57M	43.05	33.59%	―	2.71%	―
Sector *	63 Neutral	$12.88B	9.21	9.18%	4.78%	16.30%	-8.66%
LC	53 Neutral	$1.00B	18.82	3.96%	―	3.63%	27.77%
UPST	53 Neutral	$3.26B	―	-20.27%	―	24.50%	49.38%

OppFi Corporate Events

OppFi Reports Record 2024 Financial Results and Growth

On March 4, 2025, OppFi-LLC, a subsidiary of OppFi Inc., repaid all outstanding obligations under its Senior Secured Multi-Draw Term Loan Agreement, effectively terminating the agreement. The following day, OppFi Inc. announced its financial results for the fourth quarter and full year 2024, highlighting a significant increase in net income by 112.4% year over year to $83.8 million, and adjusted net income by 99.2% to $82.7 million, both setting company records. The company also raised its adjusted net income guidance for 2025, indicating strong anticipated growth, which positions OppFi favorably in the market and suggests potential positive implications for stakeholders.

OppFi Expands Credit Facility with Blue Owl Capital

On February 13, 2025, OppFi announced a Second Amended and Restated Revolving Credit Agreement, increasing its credit facility with affiliates of Blue Owl Capital from $250 million to $300 million. This amendment extends the maturity date to February 2029 and aims to support OppFi’s growth by financing receivables and extinguishing corporate debt ahead of schedule. The increase in the credit facility highlights the company’s commitment to enhancing credit access for consumers and supporting its mission of financial inclusion.