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Oportun Financial Corp (OPRT)
NASDAQ:OPRT
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Oportun Financial
(NASDAQ:OPRT)
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Rating:64Neutral
Price Target:
$5.50
▲(3.38% Upside)
Oportun Financial's overall stock score is driven by its positive earnings call sentiment and undervaluation, despite technical challenges and high leverage. The company's recovery signs and improved credit performance are promising, but managing debt and profitability remain critical.
Positive Factors
Profitability Improvement
Achieving GAAP profitability for four consecutive quarters indicates a strong turnaround and effective cost management, enhancing long-term financial stability.
Expense Management
Significant reduction in operating expenses reflects efficient management practices, which can lead to sustained profitability and competitive positioning.
Secured Loan Growth
Growth in secured loans indicates a strategic shift towards lower-risk lending, potentially stabilizing revenue streams and enhancing credit quality.
Negative Factors
High Leverage
High leverage poses financial risks, limiting the company's ability to maneuver in adverse conditions and potentially affecting long-term viability.
Low Profit Margins
Persistently low profit margins suggest challenges in achieving operational efficiency, which may hinder long-term profitability and growth potential.
Delinquency Concerns
Higher delinquency rates can lead to increased credit losses, impacting financial performance and necessitating tighter credit controls.
Oportun Financial (OPRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$234.77M
Dividend YieldN/A
Average Volume (3M)275.46K
Price to Earnings (P/E)8.1
Beta (1Y)1.59
Revenue Growth-5.29%
EPS GrowthN/A
CountryUS
Employees2,312
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.39
Shares Outstanding44,129,020
10 Day Avg. Volume242,436
30 Day Avg. Volume275,462
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.44
Price to Sales (P/S)0.16
P/FCF Ratio0.42
Enterprise Value/Market Cap12.00
Enterprise Value/Revenue4.30
Enterprise Value/Gross Profit6.89
Enterprise Value/Ebitda33.21
Forecast
1Y Price Target
$7.25Price Target Upside36.28% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Oportun Financial Business Overview & Revenue Model
Company DescriptionOportun Financial Corporation provides financial services. It offers personal loans, auto loans, and credit cards. The company serves customers online and over-the-phone, as well as through retail locations. It operates in 24 states in the United States, which include Arkansas, Delaware, Indiana, Kentucky, Mississippi, Montana, North Dakota, New Hampshire, Oregon, South Carolina, South Dakota, and Virginia. Oportun Financial Corporation was founded in 2005 and is headquartered in San Carlos, California.
How the Company Makes MoneyOportun makes money primarily through interest income generated from its personal loans. The company charges interest rates that are competitive yet higher than traditional banks, reflecting the risk associated with lending to consumers with limited credit histories. Additionally, Oportun generates revenue through origination fees charged at the time of loan issuance. The company may also benefit from partnerships with various organizations that refer customers, as well as from ancillary services such as credit monitoring that can provide additional revenue streams. Overall, Oportun's focus on providing accessible credit solutions to underserved markets plays a crucial role in its revenue generation strategy.
Oportun Financial Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 12, 2026
Earnings Call Sentiment Positive
The earnings call reflected a positive sentiment overall with continued profitability, improved credit performance, and effective cost management. However, challenges such as slightly lower originations and higher than expected delinquency rates were acknowledged.Q3-2025 Updates
Positive Updates
Fourth Consecutive Quarter of GAAP Profitability
Oportun Financial reported GAAP profitability for the fourth consecutive quarter with a net income of $5.2 million, reflecting a $35 million year-over-year improvement.
Improved Credit Performance
The annualized net charge-off rate improved slightly to 11.8% from 11.9% in the prior year period, with a year-over-year improvement in 30-plus day delinquency rate by 44 basis points to 4.7%.
Expense Reduction
Operating expenses were reduced by 11% year-over-year to $91 million, marking the second lowest quarterly expense level since going public in 2019.
Enhanced Capital Structure
The debt-to-equity ratio decreased to 7.1x from 8.7x the previous year, with new ABS financings at weighted average yields below 6% and expanded warehouse financing capacity.
Growth in Secured Personal Loans
Secured personal loan originations increased 22% year-over-year, and the secured portfolio grew 48% year-over-year to $209 million.
Negative Updates
Slightly Lower Originations
Q3 originations were $512 million, up 7% year-over-year but slightly below prior expectations due to credit tightening actions.
Higher Than Expected Delinquency Rate
The 30-plus day delinquency rate, while improved year-over-year, was at the higher end of internal expectations.
Temporary Increase in Net Charge-off Rate Expected
The net charge-off rate is expected to temporarily increase, with a full year 2025 annualized net charge-off rate midpoint guidance raised by 20 basis points to 12.1%.
Company Guidance
In the third quarter of 2025, Oportun Financial demonstrated strong performance, marking its fourth consecutive quarter of GAAP profitability with a net income of $5.2 million, reflecting a $35 million improvement year-over-year. The company's return on equity (ROE) reached 5%, an increase of 40 percentage points from the previous year. Key performance highlights included an annualized net charge-off rate of 11.8%, a slight improvement from 11.9% in the prior year, and a 30-plus day delinquency rate improvement of 44 basis points to 4.7%. Operating expenses were reduced by 11% year-over-year to $91 million, with full-year 2025 projections set at approximately $370 million, a $10 million improvement from prior guidance. Originations grew 7% year-over-year to $512 million, driven by a focus on returning members, who accounted for 70% of Q3 originations. The company's adjusted EPS guidance for 2025 was raised to a range of $1.30 to $1.40 per share, with expectations for continued adjusted EPS growth in 2026.Oportun Financial Financial Statement Overview
Summary
Oportun Financial faces challenges in profitability with a negative net profit margin and declining revenue. However, strong gross margins and effective cash flow management, along with a significant reduction in debt, positively impact its financial stability.Income Statement
Oportun Financial's income statement shows a decline in total revenue from $1,056 million in 2023 to $1,001 million in TTM (Trailing-Twelve-Months) 2024, indicating a negative revenue growth rate. The gross profit margin is notably high at 100.18%, but the net profit margin is negative at -7.85%, indicating ongoing profitability issues. The EBIT margin, though positive at 36.52%, is offset by a negative net income, highlighting challenges in covering expenses beyond operating income.Balance Sheet
The balance sheet reveals a debt-to-equity ratio of 0.05 for TTM 2024, indicating low leverage, but this is primarily due to a significant reduction in total debt. The return on equity remains negative, aligning with the net income loss. The equity ratio is 10.97%, reflecting a modest proportion of equity in total assets, which suggests a moderate risk level in terms of financial stability.Cash Flow
Cash flow analysis indicates a stable operating cash flow of $390 million in TTM 2024, with a free cash flow growth rate of 4.34% year over year. The operating cash flow to net income ratio is negative, due to negative net income, but free cash flow is strong, suggesting effective cash management despite profitability challenges.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 656.08M | 533.36M | 460.08M | 733.70M | 578.15M | 393.43M |
| Gross Profit | 408.82M | 295.20M | 280.67M | 640.66M | 530.48M | 335.06M |
| EBITDA | 84.84M | -64.02M | -198.77M | -27.75M | 89.90M | -37.87M |
| Net Income | 30.58M | -78.68M | -179.95M | -77.74M | 47.41M | -45.08M |
Balance Sheet | ||||||
| Total Assets | 3.19B | 3.23B | 3.41B | 3.61B | 2.95B | 2.01B |
| Cash, Cash Equivalents and Short-Term Investments | 104.61M | 59.97M | 91.19M | 98.82M | 130.96M | 136.19M |
| Total Debt | 2.74B | 2.82B | 3.23B | 3.28B | 2.60B | 1.71B |
| Total Liabilities | 2.80B | 2.87B | 3.01B | 3.07B | 2.34B | 1.54B |
| Stockholders Equity | 383.85M | 353.81M | 404.40M | 547.60M | 603.88M | 466.63M |
Cash Flow | ||||||
| Free Cash Flow | 383.82M | 374.33M | 361.50M | 198.98M | 136.97M | 131.10M |
| Operating Cash Flow | 395.99M | 393.52M | 392.76M | 247.88M | 163.45M | 152.87M |
| Investing Cash Flow | -236.92M | -193.69M | -286.18M | -1.17B | -884.79M | 16.38M |
| Financing Cash Flow | -163.65M | -191.22M | -104.39M | 934.53M | 745.71M | -136.80M |
Oportun Financial Technical Analysis
Positive
5.32
Price Trends
5.18
Positive
5.64
Negative
5.88
Negative
Market Momentum
>-0.01
Positive
50.73
Neutral
56.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPRT, the sentiment is Positive. The current price of 5.32 is below the 20-day moving average (MA) of 5.40, above the 50-day MA of 5.18, and below the 200-day MA of 5.88, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.73 is Neutral, neither overbought nor oversold. The STOCH value of 56.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OPRT.
Oportun Financial Risk Analysis
Oportun Financial disclosed 68 risk factors in its most recent earnings report. Oportun Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Oportun Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $240.94M | 5.96 | 10.79% | 4.44% | 15.52% | 2.05% | |
73 Outperform | $369.82M | 2.04 | 12.53% | 10.37% | 10.48% | -30.67% | |
71 Outperform | $203.72M | 11.46 | 6.58% | ― | 16.94% | -10.46% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $234.77M | 8.08 | 8.59% | ― | -5.29% | ― | |
64 Neutral | $378.80M | 9.48 | 11.43% | 2.99% | 9.63% | 77.14% | |
43 Neutral | $203.29M | -1.36 | -102.53% | ― | -82.33% | -3365.80% |
* Financial Sector Average
OPRT
Oportun Financial
5.32
1.66
45.36%
CPSS
Consumer Portfolio Services
9.23
-1.80
-16.32%
MFIN
Medallion Financial
10.35
1.63
18.69%
RM
Regional Management
39.00
7.75
24.80%
YRD
Yiren Digital
4.28
0.00
0.00%
LPRO
Open Lending
1.72
-3.43
-66.60%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.