Oportun Financial (OPRT) AI Stock Analysis

• Market Cap: $297.06M
• Dividend Yield: N/A
• Average Volume (3M): 561.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• Revenue Growth: -5.87%
• EPS Growth: 94.07%
• Country: US
• Employees: 2,312
• Sector: Financial
• Sector Strength: 75
• Industry: Financial - Credit Services
• EPS (TTM): 0.31
• Shares Outstanding: 44,009,400
• 10 Day Avg. Volume: 619,948
• 30 Day Avg. Volume: 561,296
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 9.69
• Enterprise Value/Revenue: 3.52
• Enterprise Value/Gross Profit: 5.20
• Enterprise Value/Ebitda: 47.62
• 1Y Price Target: $9.50
• Price Target Upside: 40.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 56 Neutral
• Price Target: $6.50 ▼(-3.70% Downside)

Oportun Financial's overall stock score is driven by its financial performance challenges, particularly in profitability and valuation. However, positive earnings call sentiment and successful corporate events provide some optimism. Technical indicators suggest neutral market sentiment.

Positive Factors

Financial Performance

Oportun Financial reported a return to positive GAAP net income due to improving credit trends and operational cost-saving initiatives, leading to better bottom-line performance.

Growth

4Q originations were up 19% year-over-year as the company begins leaning back into growth.

Negative Factors

Debt Concerns

Ongoing operational and liquidity progress comes at a steep cost, with dilution being a significant concern.

Leadership Uncertainty

The announcement of the CFO's retirement and the search for a replacement might bring uncertainty to the company's financial leadership.

Oportun Financial Business Overview & Revenue Model

Company Description

Oportun 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 Money

Oportun Financial generates revenue primarily through the interest and fees associated with its personal loans. The core revenue model is based on providing unsecured personal loans to consumers, many of whom may not qualify for traditional credit products due to lack of credit history or low credit scores. Additionally, the company may earn revenue from ancillary products such as credit insurance. Oportun's partnerships with various data providers and financial institutions enhance its lending capabilities, allowing it to assess creditworthiness accurately and expand its customer base. Factors contributing to its earnings include the growing demand for alternative financing solutions, effective risk management practices, and the company's commitment to responsible lending.

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 reduced debt, provide some 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	817.03M	1.00B	1.06B	859.50M	578.15M	525.37M
Gross Profit	553.72M	295.20M	877.50M	859.50M	530.40M	525.37M
EBITDA	60.44M	-64.02M	-198.77M	-27.75M	89.90M	-37.87M
Net Income	-4.57M	-78.68M	-179.95M	-77.80M	47.41M	-45.10M
Balance Sheet
Total Assets	3.20B	3.23B	3.41B	3.61B	2.95B	2.01B
Cash, Cash Equivalents and Short-Term Investments	96.82M	59.97M	91.19M	98.82M	131.00M	136.20M
Total Debt	14.97M	2.82B	2.94B	2.97B	2.21B	1.71B
Total Liabilities	2.83B	2.87B	3.01B	3.07B	2.34B	1.54B
Stockholders Equity	375.99M	353.81M	404.40M	547.60M	603.80M	466.30M
Cash Flow
Free Cash Flow	394.58M	374.33M	361.50M	199.00M	136.90M	126.30M
Operating Cash Flow	405.42M	393.52M	392.76M	247.90M	163.40M	152.90M
Investing Cash Flow	-274.57M	-193.69M	-286.18M	-1.17B	-884.80M	16.40M
Financing Cash Flow	-139.26M	-191.22M	-104.39M	934.50M	745.70M	-136.80M

Oportun Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 6.75 is above the 20-day moving average (MA) of 6.19, above the 50-day MA of 6.44, and above the 200-day MA of 5.57, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 59.49 is Neutral, neither overbought nor oversold. The STOCH value of 77.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OPRT.

Oportun Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MFIN	81 Outperform	$250.83M	5.94	11.25%	4.31%	15.88%	-1.83%
RM	74 Outperform	$429.59M	12.64	9.81%	2.74%	7.32%	38.85%
Sector *	68 Neutral	$18.05B	11.73	10.24%	3.73%	9.66%	1.70%
LC	67 Neutral	$1.91B	25.53	5.50%	―	7.54%	70.26%
FOA	64 Neutral	$634.20M	30.12	33.40%	―	276.86%	―
CPSS	62 Neutral	$172.68M	9.08	6.66%	―	16.13%	-28.76%
OPRT	56 Neutral	$297.06M	―	-1.26%	―	-5.87%	94.07%

Oportun Financial Corporate Events

Oportun Financial Issues $538M Asset-Backed Notes

On August 21, 2025, Oportun Financial Corporation announced the issuance of approximately $538 million in two-year revolving fixed rate asset-backed notes, secured by a pool of unsecured and secured installment loans. This transaction, which included five classes of fixed rate notes, was rated by Fitch with the most senior bonds receiving a AAA rating. The issuance reflects strong demand for Oportun’s asset-backed securities, allowing the company to lower funding costs and strengthen its balance sheet by paying down $10 million of higher-cost corporate debt.

Oportun Financial Amends Agreement with Pathward

On August 5, 2025, Oportun Financial Corporation announced an amended agreement with Pathward, National Association, effective August 11, 2025, to continue originating personal loans under Oportun’s programs. The agreement includes provisions for loan origination capacity, retention terms, and compliance updates. In its financial results for the second quarter ended June 30, 2025, Oportun reported a third consecutive quarter of GAAP profitability with a net income of $6.9 million, a significant improvement from the previous year. The company also raised its full-year 2025 outlook, reflecting strong growth in adjusted earnings per share and operational improvements.

Oportun Financial Appoints New Principal Financial Officer

On July 22, 2025, Oportun Financial Corporation appointed Joseph Schueller as the Principal Financial Officer and Principal Accounting Officer, succeeding CEO Raul Vazquez in these roles. Schueller, who joined the company on July 21, 2025, brings extensive experience from previous senior finance positions at various financial institutions. Additionally, at the 2025 annual meeting held on July 18, stockholders approved significant amendments to the company’s Certificate of Incorporation, including the elimination of supermajority voting provisions and the declassification of the board of directors, which are expected to impact corporate governance positively.

Oportun Financial Issues $439M Asset-Backed Notes

On June 5, 2025, Oportun Financial Corporation announced the issuance of $439 million in two-year asset-backed notes through Oportun Issuance Trust 2025-B, secured by a pool of unsecured and secured installment loans. This transaction, which achieved a AAA rating on the most senior bonds for the first time, reflects the company’s growing recognition in the market and demonstrates robust investor demand, as evidenced by a 5.67% yield that is 1.28% lower than their previous asset-backed securities transaction in January.