OppFi 2025 Q1 Earnings Strong Performance with Net Income Growth of 101%

OppFi (NYSE: OPFI) announced its fiscal 2025 Q1 earnings on May 08, 2025, reporting a substantial increase in net income compared to the previous year. The company exceeded earnings expectations with a reported EPS of $0.38, surpassing forecasts of $0.26. Additionally, OppFi raised its full-year adjusted net income guidance, reflecting optimism for continued growth in 2025. Despite a reported loss per share, the increase in adjusted EPS indicates improved financial performance and operational efficiency, aligning with the company’s strategic goals.

Revenue

OppFi achieved a 43.7% increase in total revenue, reaching $90.81 million in Q1 2025, up from $63.21 million in Q1 2024. Interest and loan-related income saw significant growth, totaling $139.12 million. Other revenue contributed $1.15 million, while changes in the fair value of finance receivables negatively impacted total revenue by $49.46 million. The net revenue was $90.81 million, illustrating a robust financial quarter.

Earnings/Net Income

OppFi reported a loss of $0.48 per share in Q1 2025, contrasting with a profit of $0.29 per share in the same quarter last year, reflecting a 265.5% negative change. However, the company’s net income improved significantly, rising to $20.39 million from $10.13 million in Q1 2024, marking a notable 101.3% growth. Despite the per-share loss, the increase in net income reflects a positive trend in profitability.

Price Action

The stock price of OppFi increased by 1.93% during the latest trading day, surged 20.94% over the past week, and climbed 42.28% month-to-date.

Post-Earnings Price Action Review

Over the past five years, a strategy involving purchasing OppFi shares after a quarter with a revenue drop and holding for 30 days has demonstrated strong performance. This approach yielded an annualized return of 26.78%, generating a total profit of $2,621.67. This pattern suggests that the strategy effectively leveraged stock rebounds following temporary revenue declines, highlighting a consistent trend observed over the period.

CEO Commentary

Todd Schwartz, CEO and Executive Chairman, expressed pride in OppFi’s record-breaking first quarter, noting a 10% revenue increase and a 285% surge in adjusted net income year-over-year. He attributed the success to disciplined growth, enhanced credit modeling, and operational efficiency. Schwartz emphasized the company’s strong balance sheet, positioning it for sustained profitable growth in 2025, and highlighted ongoing investments in new marketing initiatives to drive further growth.

Guidance

OppFi maintained its full-year 2025 revenue guidance between $563 million and $594 million, projecting 7% to 13% growth compared to 2024. The company raised its adjusted net income guidance to $106 million to $113 million, up from $95 million to $97 million previously. Adjusted earnings per share expectations increased to $1.18 to $1.26, compared to earlier guidance of $1.06 to $1.07.

Additional News

Recently, OppFi announced a special dividend of $21.7 million, reflecting the company’s strong financial position and commitment to rewarding shareholders. The company also expanded its Blue Owl facility to accommodate increased capacity for future growth. OppFi’s proactive approach to paying down corporate debt further strengthens its balance sheet, allowing it to invest in high-ROI initiatives and explore inorganic growth opportunities. These strategic moves signify OppFi's intent to leverage its financial health to drive growth and shareholder value.