Oportun Financial (OPRT) AI Stock Analysis

• Market Cap: $158.27M
• Dividend Yield: N/A
• Average Volume (3M): 554.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.63
• Revenue Growth: -5.22%
• EPS Growth: 60.29%
• Country: US
• Employees: 2,312
• Sector: Financial
• Sector Strength: 82
• Industry: Financial - Credit Services
• EPS (TTM): -2.01
• Shares Outstanding: 36,134,274
• 10 Day Avg. Volume: 480,714
• 30 Day Avg. Volume: 554,669
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.31
• Price to Cash Flow (P/CF): 0.60
• P/FCF Ratio: 0.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $8.67
• Price Target Upside: 87.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

Oportun Financial shows mixed results. While the company has returned to profitability and demonstrated strong cash flow management, it faces challenges with declining revenue and ongoing profitability issues. The technical analysis suggests potential for upward momentum, and the earnings call provided a positive outlook with strategic improvements. However, valuation remains a concern due to a negative P/E ratio. These factors combine to give the stock an overall score of 58, indicating moderate performance with potential for improvement.

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 Strategy

4Q originations were up 19% year-over-year as the company begins leaning back into growth.

Negative Factors

Credit Volatility

The shares are seen as fairly valued at approximately 10 times the 2025 GAAP EPS estimate, with a primary roadblock being the company's history of credit volatility.

Dilution 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 the interest and fees charged on the personal loans it offers. These loans are typically unsecured and cater to individuals who may not qualify for traditional credit products due to their credit profiles. The company uses proprietary scoring models to determine the risk and pricing of its loan products, allowing it to provide credit access while managing risk effectively. Additionally, Oportun may earn revenue from partnerships and collaborations with other financial institutions or service providers, expanding its reach and product offerings to a broader customer base.

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, positively impacting 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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.00B	1.06B	640.70M	530.40M	335.10M
	Gross Profit
1.00B	1.06B	640.70M	530.40M	335.10M
	EBIT
591.40M	-198.77M	17.76M	62.80M	-58.10M
	EBITDA
0.00	-198.77M	0.00	89.90M	-37.87M
	Net Income Common Stockholders
-78.68M	-179.95M	-77.80M	47.41M	-45.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
59.97M	91.19M	98.82M	131.00M	136.20M
	Total Assets
3.23B	3.41B	3.61B	2.95B	2.01B
	Total Debt
18.20M	2.94B	2.97B	2.21B	1.46B
	Net Debt
-41.77M	2.85B	2.87B	2.08B	1.33B
	Total Liabilities
2.87B	3.01B	3.07B	2.34B	1.54B
	Stockholders Equity
353.81M	404.40M	547.60M	603.80M	466.30M
Cash Flow		Free Cash Flow
374.33M	361.50M	199.00M	136.90M	126.30M
	Operating Cash Flow
393.52M	392.76M	247.90M	163.40M	152.90M
	Investing Cash Flow
-193.69M	-286.18M	-1.17B	-884.80M	16.40M
	Financing Cash Flow
-191.22M	-104.39M	934.50M	745.70M	-136.80M

Oportun Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.62
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 4.62 is below the 20-day moving average (MA) of 5.55, below the 50-day MA of 5.97, and above the 200-day MA of 3.85, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 44.23 is Neutral, neither overbought nor oversold. The STOCH value of 21.19 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
ENVA	77 Outperform	$2.22B	11.72	17.19%	―	25.51%	36.96%
WRLD	77 Outperform	$669.03M	8.04	19.28%	―	-2.78%	24.39%
RM	73 Outperform	$277.15M	6.81	12.14%	4.26%	6.73%	151.08%
OPFI	70 Outperform	$714.57M	43.05	33.59%	―	2.71%	―
Sector *	64 Neutral	$12.70B	9.08	9.19%	4.89%	16.29%	-8.64%
OPRT	58 Neutral	$158.27M	―	-20.76%	―	-5.22%	60.29%
LC	53 Neutral	$1.00B	18.82	3.96%	―	3.63%	27.77%

Oportun Financial Corporate Events

Oportun Financial Announces CFO Transition Amid Strong Results

Oportun Financial Corporation announced that its Chief Financial Officer, Jonathan Coblentz, will retire on March 28, 2025, with Casey Mueller stepping in as interim CFO. This leadership transition comes as Oportun reports its financial results for the fourth quarter and full year of 2024, highlighting a return to GAAP profitability with a net income of $9 million in the fourth quarter and a significant increase in adjusted EBITDA by 315% year-over-year. The company is raising its expectations for 2025, showcasing its strategic advancement and improved operational outcomes.