Oportun Financial (OPRT) AI Stock Analysis

• Market Cap: $321.13M
• Dividend Yield: N/A
• Average Volume (3M): 380.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.38
• Revenue Growth: -5.79%
• EPS Growth: 59.24%
• Country: US
• Employees: 2,312
• Sector: Financial
• Sector Strength: 74
• Industry: Financial - Credit Services
• EPS (TTM): 0.40
• Shares Outstanding: 43,870,400
• 10 Day Avg. Volume: 380,410
• 30 Day Avg. Volume: 380,435
• PEG Ratio: <0.01
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.91
• Enterprise Value/Market Cap: 9.49
• Enterprise Value/Revenue: 0.79
• Enterprise Value/Gross Profit: 4.36
• Enterprise Value/Ebitda: -22.17
• 1Y Price Target: $9.00
• Price Target Upside: 22.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 61 Neutral
• Price Target: $7.00 ▼(-4.37%Downside)

Oportun Financial's stock score reflects a balance of positive momentum and strong recent corporate developments against ongoing profitability challenges and valuation concerns. The recent earnings call and corporate event significantly bolster the outlook, though financial performance weighs down the overall score.

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 makes money primarily through interest income earned on its portfolio of personal loans and credit card products. The company charges interest on the loans it provides, which constitutes a significant portion of its revenue. Additionally, Oportun may collect fees associated with loan origination and late payment penalties. The company also benefits from partnerships with retail and financial institutions, which help expand its reach and customer base. Oportun's use of advanced technology to assess credit risk allows it to efficiently manage its lending operations while minimizing default rates, contributing to its overall profitability.

Oportun Financial Financial Statement Overview

Summary

Oportun Financial faces challenges in profitability despite strong gross margins and effective cash flow management. The company has managed to significantly reduce its debt burden, which positively impacts its leverage position. However, the persistent negative net income and declining revenue signal potential risks that need to be addressed to improve financial health.

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
903.34M	1.00B	1.06B	640.70M	530.40M	335.10M
	Gross Profit
699.56M	1.00B	1.06B	640.70M	530.40M	335.10M
	EBIT
135.18M	-115.18M	-198.77M	17.76M	62.80M	-58.10M
	EBITDA
39.62M	-64.02M	-198.77M	0.00	89.90M	-37.87M
	Net Income Common Stockholders
-42.48M	-78.68M	-179.95M	-77.80M	47.41M	-45.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
78.54M	59.97M	91.19M	98.82M	131.00M	136.20M
	Total Assets
3.23B	3.23B	3.41B	3.61B	2.95B	2.01B
	Total Debt
16.12M	2.82B	2.94B	2.97B	2.21B	1.46B
	Net Debt
-62.42M	2.76B	2.85B	2.87B	2.08B	1.33B
	Total Liabilities
2.86B	2.87B	3.01B	3.07B	2.34B	1.54B
	Stockholders Equity
366.10M	353.81M	404.40M	547.60M	603.80M	466.30M
Cash Flow		Free Cash Flow
386.95M	374.33M	361.50M	199.00M	136.90M	126.30M
	Operating Cash Flow
408.62M	393.52M	392.76M	247.90M	163.40M	152.90M
	Investing Cash Flow
-283.64M	-193.69M	-286.18M	-1.17B	-884.80M	16.40M
	Financing Cash Flow
-88.53M	-191.22M	-104.39M	934.50M	745.70M	-136.80M

Oportun Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 7.32 is above the 20-day moving average (MA) of 6.70, above the 50-day MA of 5.89, and above the 200-day MA of 4.56, indicating a bullish trend. The MACD of 0.26 indicates Positive momentum. The RSI at 52.52 is Neutral, neither overbought nor oversold. The STOCH value of 58.24 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	80 Outperform	$219.82M	5.91	10.39%	5.07%	13.93%	-23.70%
CPSS	75 Outperform	$209.99M	12.23	6.69%	―	13.23%	-47.36%
RM	71 Outperform	$279.36M	8.55	9.51%	4.26%	6.57%	44.84%
Sector *	64 Neutral	$12.86B	9.79	7.84%	78.10%	12.05%	-7.99%
FOA	62 Neutral	$244.52M	4.09	21.28%	―	4215.36%	―
OPRT	61 Neutral	$321.13M	―	-11.37%	―	-5.79%	59.24%
LC	57 Neutral	$1.26B	24.74	3.86%	―	5.72%	31.82%

Oportun Financial Corporate Events

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.

The most recent analyst rating on (OPRT) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Oportun Financial stock, see the OPRT Stock Forecast page.

Oportun Financial Appoints CEO as Financial Officer

On April 28, 2025, Oportun Financial Corporation’s board appointed CEO Raul Vazquez as the principal financial officer and principal accounting officer. This move consolidates leadership roles within the company, although it does not involve any changes to Vazquez’s compensation or suggest any new related party transactions.