Oportun Financial Corp. Q3 2024 Earnings Overview

Oportun Financial Corp. ( (OPRT) ) has released its Q3 earnings. Here is a breakdown of the information Oportun Financial Corp. presented to its investors.

Oportun Financial Corporation is a mission-driven financial services company specializing in providing responsible and affordable credit to consumers, leveraging intelligent financial tools to assist its members in achieving their financial goals.

In its third-quarter 2024 earnings report, Oportun Financial Corp. announced it met or exceeded guidance metrics, highlighting significant reductions in operating expenses and a completed sale of its credit card portfolio. The company also anticipates the closing of a corporate debt refinancing deal soon.

Key financial metrics for the quarter include a total revenue of $250 million, a 7% decrease from the previous year, primarily due to a reduced average daily principal balance. The company reported a GAAP net loss of $30 million but achieved an adjusted net income of $0.9 million, marking a substantial improvement from the $12 million adjusted net loss in the prior-year quarter. Additionally, operating expenses fell by 17%, contributing to a more than doubling of adjusted EBITDA year-over-year to $31 million.

The company’s credit and operating metrics showed a slight increase in the annualized net charge-off rate to 11.9% and a decrease in the 30+ day delinquency rate to 5.2%. Oportun’s strategic cost reduction efforts and improved credit performance have positioned it well to enhance profitability and resume growth in originations responsibly.

Looking ahead, Oportun remains optimistic about its financial trajectory, with fourth-quarter revenue expectations of $246 to $250 million and a full-year revenue forecast of $997 to $1,001 million. As the company moves into 2025, it aims to achieve full-year GAAP profitability and continue to advance its credit performance.