OppFi: Preparing for a Swift Exit with Rating Upgrade

OppFi Inc. (NYSE:OPFI) has seen its share price decline 8.5% to $11.74 since last covered in May. Despite this, the company remains an interesting entity. As a finance expert with experience at Bloomberg, I assign OppFi a rating upgrade.

OppFi Inc. (OPFI), a tech-enabled digital finance platform, has seen its share price decline 8.5% to $11.74 since last covered in May. Despite this, the company remains an interesting entity. As a finance expert with experience at Bloomberg, I assign OppFi a rating upgrade.

OppFi reported its second quarter (Q2) earnings on June 30, 2025, with earnings per share (EPS) of $0.450, $0.15 better than the analyst estimate of $0.300. Revenue for the quarter came in at $142.44 million versus the consensus estimate of $141.19 million. The company's forward-looking guidance for fiscal year 2025 (FY 2025) also shows promise, with EPS expected to range between $1.390 and $1.440, compared to the analyst consensus of $1.240. Revenue is expected to be between $578.00 million and $605.00 million, versus the analyst consensus of $581.80 million [1].

The company's performance is driven by its advanced AI-driven underwriting system, Model 6, which achieved an 80% auto-approval rate in Q2 2025, a 7 percentage-point increase from the prior year. This efficiency not only accelerates customer acquisition but also reduces operational costs, contributing to a 285% year-over-year jump in adjusted net income during the first quarter of 2025 [2].

OppFi's risk management is also commendable. The net charge-off rate plummeted to 31.9% in Q2 2025, a 700-basis-point decline year-over-year, demonstrating the effectiveness of its machine learning models in identifying creditworthy borrowers [2].

Despite the strong earnings, the stock price has declined due to broader market conditions and economic uncertainties. Justin Paget, an analyst at Seeking Alpha, has expressed concerns about the company's vulnerability to an economic contraction. However, the recent price decline has made OppFi more attractive, and the company's robust risk management and diversified bank-partner model mitigate these concerns [4].

In conclusion, OppFi Inc. (OPFI) has delivered strong earnings and demonstrated its ability to adapt to market conditions. The company's AI-driven platform and focus on subprime borrowers align with long-term demographic trends. Despite the recent decline in share price, the company's fundamentals remain strong, and its forward guidance is promising. For investors seeking exposure to a high-growth sector with a company that combines innovation, operational discipline, and customer loyalty, OppFi represents a compelling opportunity.

References:
[1] https://www.investing.com/news/earnings/oppfi-earnings-beat-by-015-revenue-topped-estimates-4172905
[2] https://www.ainvest.com/news/oppfi-record-breaking-q2-2025-results-catalyst-long-term-growth-specialty-finance-sector-2508/
[3] https://www.nasdaq.com/articles/new-strong-buy-stocks-august-11th
[4] https://seekingalpha.com/article/4812526-oppfi-make-ready-for-a-quick-exit