DALLAS, TX -- October 30th, 2025 -- OppFi, Inc. (NYSE: OPFI) : Stonegate Capital Partners Updates Coverage on OppFi (NYSE: OPFI). OPFI reported revenue, adj. Net Income, and adj. EPS of $155.1M, $40.7M, and $0.46, respectively. This compares to our/consensus estimates of $155.2M/$153.4M, $27.4M/$28.9M, and $0.30/$0.32. Net revenue margin was 67.4% for the quarter, reflecting a year-over-year expansion of 70 bps from 3Q24. This quarter’s strong performance was driven by yet another record total revenue of $155.1M, a 13.5% y/y increase, complimented by growth in originations from new customers, operating discipline, and scale benefits. Net income increased by 136.9% y/y to $75.9M, primarily due to lower expenses and a $32.0M non-cash gain from lower warrant fair value. Adjusted net income increased by 41.0% y/y to $40.7M, setting another new quarterly record for the Company. Adjusted EPS rose to $0.46, compared to $0.33 in the prior-year period. Adjusted net income margin expanded 520 bps y/y to 26.3%, reflecting operating discipline and scale benefits.
Company Updates:
Liquidity and Balance Sheet: OppFi ended 3Q25 with $75.2M in cash and restricted cash, including $45.4M in unrestricted cash, down from $61.3M in 4Q24. The Company maintains a total funding capacity of $600.2M, including $204.2M in undrawn debt. Year-to-Date, OppFi generated $66.1M in free cash flow, enabling continued investment in growth and a $21.7M special dividend paid in 3Q25. The Company also made $7.4M of share repurchases in 3Q25 with a new $150M Castlelake facility that reduces financing costs by 150 bps.
Originations: Total net originations for 3Q25 increased 12.5% y/y to $246.1M, driven by stronger demand and credit-model upgrades enabling larger average loans. Retained net originations grew 8% y/y to $215.2M, while receivables ended rose 16% y/y to $481.0M. The auto-approval rate increased to 79%, up from 77% in the prior-year period, reflecting ongoing improvements in automation and risk stratification through OppFi’s Model 6 platform.
Lending Standards: Credit quality was stable to slightly softer in 3Q25, with the net charge-off rate increasing to 35.1% of total revenue, up ~100 bps from a year ago, but down from 42% in 4Q24. Annualized net charge-offs as a percentage of average receivables increased to 47% from 46% last year, driven by elevated early-summer charge-offs, offset by improved recoveries. Losses are a result of continued use of risk-based pricing and the Model 6.1 refit (rolling out in 4Q and fully in 1Q26) to tighten higher-risk segments while sustaining growth.
Guidance: On the back of continued momentum, OppFi raised the low end of its FY25 revenue guidance to $590–$605M, up from $578–$605M. The Company also increased adjusted net income guidance to $137–$142M (from $125–$130M) and adjusted EPS to $1.54–$1.60 (from $1.39–$1.44), based on ~89.0 million diluted shares. We believe OppFi remains well positioned to meet or exceed its guidance based on FY25 trends.
Valuation: We use a P/E comp analysis to guide our valuation. Our valuation relies on a P/E multiple range of 8.5x to 9.5x with a midpoint of 9.0x This arrives at a valuation range of $14.56 to $16.28 with a mid-point of $15.42.
About Stonegate
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.
