Third Consecutive Quarter of GAAP Profitability
Oportun achieved a net income of $6.9 million, marking the third consecutive quarter of GAAP profitability, driven by a $38 million year-over-year improvement and an ROE of 7%, up 41 percentage points year-over-year.
Improved Credit Performance
Annualized net charge-off rate improved by 41 basis points to 11.9%, and the 30-plus day delinquency rate improved by 54 basis points to 4.4% year-over-year.
Expense Reduction and Efficiency Gains
Operating expenses were reduced by 13% year-over-year to $94 million. Full year 2025 GAAP operating expenses are expected to be approximately $380 million, down $10 million from prior expectation and $30 million from 2024's level.
Successful ABS Transaction
Completed a $439 million ABS transaction with a weighted average yield of 5.67%, improving by 128 basis points from the prior transaction, and received a AAA rating on the most senior bonds.
Originations Growth
Q2 originations of $481 million were up 11% year-over-year, with secured personal loans growing by 58% to $195 million, or 7% of the portfolio.
Increased Adjusted EPS Guidance
Full year adjusted EPS guidance increased by 8% at the midpoint, now targeting $1.20 to $1.40 per share, representing strong growth of 67% to 94% versus last year's levels.