On November 7, 2024, OppFi Inc (OPFI, Financial) released its 8-K filing detailing its financial results for the third quarter ended September 30, 2024. OppFi Inc, a tech-enabled, mission-driven specialty finance platform, reported record net income and revenue, significantly surpassing analyst estimates.
Company Overview
OppFi Inc is a specialty finance platform that partners with community banks to extend credit access to everyday Americans. The company generates revenue primarily through finance charges on installment and SalaryTap contracts.
Performance Highlights
OppFi Inc reported a record net income of $32.1 million for the third quarter, marking a 106.4% increase year-over-year. Adjusted net income rose by 116.2% to $28.8 million. The company achieved basic and diluted earnings per share (EPS) of $0.21, with adjusted EPS increasing by 112.4% to $0.33. These figures fell short of the analyst estimate of $0.36 EPS for the quarter.
Revenue and Financial Achievements
Total revenue for the quarter reached $136.6 million, a 2.6% increase from the previous year and a company record. This performance is crucial for OppFi Inc as it demonstrates the effectiveness of its credit initiatives and cost management strategies in the competitive credit services industry.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $136.6 million | $133.2 million | 2.6% |
| Net Income | $32.1 million | $15.5 million | 106.4% |
| Adjusted Net Income | $28.8 million | $13.3 million | 116.2% |
| Basic EPS | $0.21 | $0.13 | 62.8% |
| Adjusted EPS | $0.33 | $0.16 | 112.4% |
Operational Insights
OppFi Inc's operational efficiency is highlighted by a decrease in the net charge-off rate as a percentage of total revenue, which fell by 810 basis points to 34.3%. The average yield, annualized, increased by 540 basis points to 133.9%, reflecting improved profitability from its lending operations.
Balance Sheet and Cash Flow
As of September 30, 2024, OppFi Inc reported total assets of $619.3 million, with a slight increase in cash and restricted cash to $74.2 million. The company also maintained a robust financial capacity with $199.4 million of unused debt capacity, indicating strong liquidity and financial flexibility.
Management Commentary
“We’re proud to report our third quarter 2024 results, in which we achieved the highest total revenue and net income for any quarter in Company history,” said Todd Schwartz, Chief Executive Officer and Executive Chairman of OppFi.
Future Outlook
OppFi Inc has raised its full-year 2024 guidance, increasing adjusted EPS expectations to a range of $0.85 to $0.87, up from the previous range of $0.73 to $0.75. This upward revision reflects the company's confidence in its ongoing business trends and strategic initiatives.
OppFi Inc's strong third-quarter performance and optimistic outlook position it well within the credit services industry, appealing to value investors seeking growth opportunities in the financial sector. For more detailed insights and analysis, visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from OppFi Inc for further details.
