Oportun Financial reports Q2 EPS (8c), consensus (18c)

Reports Q2 revenue $250.4M, consensus $245.27M. “Overall, I’m pleased with our second quarter results and the progress we are making towards our long-term profitability targets. In addition, we performed at the better end or outperformed each of, our guidance metrics as we continued our 2024 business recovery,” said Raul Vazquez, CEO of Oportun. “Enhancing our focus on our core products, we signed a non-binding letter of intent to sell our credit card portfolio. While this resulted in a $(36) million mark-to-market impact lowering our quarterly GAAP earnings, we expect the credit card sale to enhance Adjusted EBITDA by approximately $11 million during 2025, following its expected closing by the end of the third quarter of 2024 and subsequent wind-down of operations. We grew second quarter Adjusted EBITDA by 109% year-over-year to $30 million and were profitable on an adjusted basis for the second consecutive quarter. I’m excited that our new lending-as-a-service collaboration with Western Union will enhance Oportun’s brand awareness and application funnel while providing us with the potential to reach their millions of customers. Our capital partners have continued to demonstrate confidence in the quality of our loans and business model, as evidenced by our raising a new $245 million warehouse facility since the end of the quarter. Overall, I’m pleased with our second quarter results and year-to-date performance, and I believe we are positioned to improve upon our performance in the second half, most notably with markedly higher adjusted profitability.”