Oportun Completes Sale of Credit Card Portfolio

Oportun, a leading fintech company, has recently completed the sale of its credit card portfolio to Continental Finance. This strategic move is expected to simplify Oportun's product offerings and enhance its focus on core products, driving profitability and customer satisfaction. The transaction, announced in August 2024, is anticipated to have a significant impact on Oportun's financial performance and customer experience.

The sale of Oportun's credit card portfolio to Continental Finance, a credit card marketer and servicer, is expected to contribute approximately $2 million to Oportun's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2024. Although this is lower than the initially projected $4 million, it still represents a substantial contribution to Oportun's bottom line. Furthermore, the company continues to expect Adjusted EBITDA favorability of around $11 million in 2025, indicating long-term benefits from the sale.

The transaction is expected to simplify Oportun's product portfolio, allowing the company to concentrate on its core offerings: unsecured personal loans, secured personal loans, and its award-winning Set & Save savings product. This strategic move enables Oportun to better serve its customers by focusing resources on its most successful and impactful offerings. Additionally, the sale is anticipated to result in improved operational efficiency and customer experience.

The Continental Finance team has been actively involved in the transition process, working to ensure a seamless transfer of Oportun's customers onto their platform. This proactive approach aims to maintain and enhance the quality of service, reassuring customers that their service will continue uninterrupted. Tamer El-Rayess, Continental Finance's board chairman, stated that they are committed to providing exceptional, personalized service to these valued customers for many years to come.



In conclusion, Oportun's completion of the credit card portfolio sale to Continental Finance is a strategic move that is expected to drive profitability, simplify the company's product offerings, and enhance customer experience. The transaction is anticipated to have a significant impact on Oportun's financial performance, with contributions to adjusted EBITDA in 2024 and 2025. The sale allows Oportun to focus on its core products and better serve its customers, while the Continental Finance team ensures a smooth transition for customers. This transaction is a testament to Oportun's commitment to growth, innovation, and customer satisfaction.