Oportun Financial (OPRT) AI Stock Analysis

• Market Cap: $243.15M
• Dividend Yield: N/A
• Average Volume (3M): 352.55K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.58
• Revenue Growth: -5.29%
• EPS Growth: N/A
• Country: US
• Employees: 2,312
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.39
• Shares Outstanding: 44,129,020
• 10 Day Avg. Volume: 305,323
• 30 Day Avg. Volume: 352,549
• PEG Ratio: 0.03
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 0.42
• Enterprise Value/Market Cap: 11.59
• Enterprise Value/Revenue: 4.30
• Enterprise Value/Gross Profit: 6.89
• Enterprise Value/Ebitda: 33.21
• 1Y Price Target: $7.25
• Price Target Upside: 33.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.36
• Revenue Forecast (FY): $949.35M

• Rating: 64 Neutral
• Price Target: $5.50 ▲(0.92% 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 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 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 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

• Technical Analysis Sentiment: Neutral
• Last Price: 5.45
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 5.45 is above the 20-day moving average (MA) of 5.22, above the 50-day MA of 5.20, and below the 200-day MA of 5.93, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 59.25 is Neutral, neither overbought nor oversold. The STOCH value of 48.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OPRT.

Oportun Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MFIN	79 Outperform	$243.97M	6.14	10.79%	4.40%	15.52%	2.05%
CPSS	71 Outperform	$209.90M	11.89	6.58%	―	16.94%	-10.46%
YRD	70 Outperform	$374.14M	2.17	12.53%	9.61%	10.48%	-30.67%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
OPRT	64 Neutral	$243.15M	8.28	8.59%	―	-5.29%	―
RM	64 Neutral	$378.12M	9.44	11.43%	3.00%	9.63%	77.14%
LPRO	43 Neutral	$205.65M	-1.34	-102.53%	―	-82.33%	-3365.80%

Oportun Financial Corporate Events

Oportun Financial Amends Agreement with Pathward

On September 26, 2025, Oportun Financial Corporation announced an amendment to its agreement with Pathward, National Association, which will simplify their partnership by ceasing Pathward’s retention of Oportun loans by February 2026. Effective October 1, 2025, Oportun will purchase all loans originated by Pathward, with the initial purchase scheduled for October 3, 2025, involving approximately $115 million in loans. This strategic move is expected to eliminate derivative accounting and streamline operations, potentially impacting stakeholders by altering financial structures and obligations.