Oppfi Inc ((OPFI)) has held its Q4 earnings call. Read on for the main highlights of the call.
The recent earnings call for OppFi Inc. painted a positive picture for the company, with strong revenue growth, improved credit quality, and operational efficiencies taking center stage. Despite some concerns about macroeconomic uncertainties, the overall sentiment was optimistic, leading to an increased guidance for 2025.
Record Revenue Achievement
OppFi reported record-breaking revenue figures for both the fourth quarter and the entire year of 2024. The company achieved a 2.1% increase in Q4 revenue, reaching $135.7 million, and a full-year revenue of $526 million, which was near the high end of their guidance. This achievement underscores the company’s robust financial performance.
Strong Growth in Net Revenue and Adjusted EPS
The earnings call highlighted a significant increase in net revenue, which rose by 22.9% to $80.8 million in Q4 2024. Additionally, the adjusted earnings per share (EPS) saw substantial growth, climbing to $0.23 from $0.10. For the full year, the adjusted EPS was $0.95, surpassing the guidance range of $0.85 to $0.87, reflecting strong profitability.
Improvement in Credit Quality
OppFi demonstrated improved credit performance, with the annualized net charge-off rate as a percentage of average receivables decreasing by 430 basis points to 54.5%. This improvement in credit quality is a positive indicator of the company’s financial health and risk management.
Operational Efficiency Gains
The company achieved notable operational efficiencies, with automated loan approvals reaching 79.5% in Q4 2024, an increase of 630 basis points from the previous year. This advancement in automation has contributed to effective cost control and streamlined operations.
Debt Reduction
OppFi made significant strides in reducing its corporate debt, paying down $10 million in Q4 2024 and an additional $20 million in Q1 2025. This proactive debt management has allowed the company to extinguish its corporate debt ahead of schedule, strengthening its financial position.
Positive Guidance for 2025
Looking ahead, OppFi provided optimistic guidance for 2025, forecasting a 7% to 13% growth in total revenue and a 15% to 17% increase in adjusted net income. The company expects adjusted EPS to be between $1.06 and $1.07, driven by strong growth, operational efficiency, and improved credit quality. Strategic initiatives, such as debt extinguishment and expanded marketing efforts, are expected to further bolster growth and profitability.
Macroeconomic Concerns
Despite the positive outlook, OppFi acknowledged concerns about macroeconomic uncertainties, inflation, and potential impacts of tariffs. However, the company expressed confidence in its ability to navigate these challenges and maintain stability.
In summary, OppFi’s earnings call conveyed a strong performance and an optimistic outlook for 2025. The company’s achievements in revenue growth, credit quality improvement, and operational efficiencies were key highlights, with strategic initiatives and positive guidance setting the stage for continued success.