Oportun Financial (OPRT) AI Stock Analysis

• Market Cap: $239.18M
• Dividend Yield: N/A
• Average Volume (3M): 426.12K
• Price to Earnings (P/E): 8.2
• 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: 737,565
• 30 Day Avg. Volume: 426,118
• PEG Ratio: 0.03
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 0.42
• Enterprise Value/Market Cap: 12.03
• Enterprise Value/Revenue: 4.39
• Enterprise Value/Gross Profit: 7.04
• Enterprise Value/Ebitda: 33.93
• 1Y Price Target: $8.50
• Price Target Upside: 56.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $6.50 ▲(19.93% Upside)

The score is driven primarily by improving operating performance and strong cash generation, supported by a constructive and guidance-raising earnings call. The main offsets are balance-sheet leverage risk and mixed technical momentum signals despite the prevailing uptrend, while valuation appears favorable given the low P/E.

Positive Factors

Strong operating cash generation

Oportun generates materially more operating cash than accounting earnings, indicating durable internal funding. Strong cash conversion supports loan book funding, ABS issuance economics, and cushions credit volatility, enabling reinvestment or debt paydown over months.

Sustained GAAP profitability and cost cuts

Consecutive GAAP profitability quarters and meaningful expense reductions reflect operational discipline and scalable cost structure. This improves sustainable earnings power and margins, making the business more resilient to credit cycles and supporting longer-term earnings visibility.

Secured loan growth and recovering originations

Growth in secured product mix and overall originations diversifies asset quality and increases recoverability. A larger secured portfolio reduces downside credit volatility per loan and supports durable revenue growth as returning members drive repeat originations.

Negative Factors

High leverage and low equity ratio

Material reliance on debt financing limits balance-sheet flexibility and raises refinancing and funding risk if market conditions tighten. Even with improved ABS terms, elevated leverage increases sensitivity to credit stress and constrains capital allocation over the medium term.

Elevated net charge-offs with expected increase

Persistently high charge-off rates materially pressure net margins and require higher provision expense and capital absorption. An expected uptick to ~12.1% suggests underwriting or economic stress remains, limiting durable profitability and increasing funding cushion needs.

CEO departure and leadership transition risk

A CEO exit during a recovery phase creates execution and strategic continuity risk. Transition can slow product, credit and funding initiatives, and raises short-to-medium term governance uncertainty until a successor is appointed and retains stakeholder confidence.

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

Income statement shows recovery with 7.07% TTM revenue growth and a healthy 37.7% gross margin, but profitability remains thin (3.8% net margin) with modest EBIT/EBITDA margins. Balance sheet risk is elevated due to high leverage and a low equity ratio, partially offset by improved ROE (8.3% TTM). Cash flow is a bright spot with strong operating cash generation (operating cash flow to net income of 29.8), though negative free cash flow growth is a concern.

Income Statement

Oportun Financial shows a positive revenue growth rate of 7.07% in the TTM, indicating recovery from previous declines. Gross profit margin is healthy at 37.7%, but net profit margin remains low at 3.8%, suggesting limited profitability. The EBIT and EBITDA margins are modest, reflecting operational challenges.

Balance Sheet

The company has a high debt-to-equity ratio, indicating significant leverage, which poses financial risk. However, the return on equity has improved to 8.3% in the TTM, showing better utilization of equity. The equity ratio is low, suggesting reliance on debt financing.

Cash Flow

Oportun Financial demonstrates strong operating cash flow, with a high operating cash flow to net income ratio of 29.8, indicating efficient cash generation. However, free cash flow growth is negative, highlighting potential cash flow management issues.

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: Negative
• Last Price: 5.42
• 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 Negative. The current price of 5.42 is above the 20-day moving average (MA) of 5.30, above the 50-day MA of 5.27, and below the 200-day MA of 5.90, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 51.41 is Neutral, neither overbought nor oversold. The STOCH value of 44.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OPRT.

Oportun Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MFIN	74 Outperform	$239.55M	6.03	10.79%	4.44%	15.52%	2.05%
YRD	73 Outperform	$343.03M	1.99	12.53%	10.37%	10.48%	-30.67%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
OPRT	65 Neutral	$239.18M	8.23	8.59%	―	-5.29%	―
RM	64 Neutral	$359.86M	8.98	11.43%	2.99%	9.63%	77.14%
CPSS	59 Neutral	$190.47M	10.72	6.58%	―	16.94%	-10.46%
LPRO	49 Neutral	$211.56M	-1.42	-102.53%	―	-82.33%	-3365.80%