The Stakes of Oportun's Proxy Battle: Why Raul Vazquez's Leadership Is Non-Negotiable for Growth

Oportun Financial Corporation's upcoming shareholder meeting has become a battleground over its future. Activist investor Findell Capital Management has launched a proxy contest to remove CEO Raul Vazquez from the board, arguing that his leadership has stifled growth. But beneath the noise lies a critical question: Would replacing Vazquez risk the fragile yet tangible progress Oportun has achieved under his stewardship? The answer is a resounding yes.

The Financial Turnaround: A Testament to Vazquez's Leadership

Since 2022, Oportun has undergone a dramatic transformation under Vazquez, pivoting from aggressive growth to disciplined profitability. By tightening credit standards, exiting unprofitable ventures, and slashing costs, the company has stabilized its financials amid macroeconomic headwinds.

Key Metrics to Note:
- In Q4 2024, Oportun returned to GAAP profitability with a net income of $9 million, reversing a $42 million loss just one year prior.
- Adjusted EBITDA surged 315% year-over-year to $41 million in Q4, while the full-year 2024 figure jumped 463% to $105 million.
- Operating expenses fell 31% in Q4 to $89 million, with the adjusted operating expense ratio hitting 13.3%—its second-lowest level as a public company.

These figures underscore a stark reality: Vazquez's strategy has worked. Originations grew by 19% year-over-year in Q4 2024, the first such growth in over two years, while credit metrics like delinquency rates and charge-offs improved significantly.

Governance Reforms: Strengthening Accountability, Not Power

Vazquez's tenure has also seen meaningful corporate governance upgrades, directly addressing shareholder concerns:
1. Board Declassification: Oportun proposed ending staggered board terms, ensuring directors face annual re-election. This move enhances accountability and aligns with institutional investor expectations.
2. Cost Discipline: A $240 million annualized expense reduction program slashed costs without sacrificing growth, proving that profitability and mission-driven lending can coexist.
3. Strategic Focus: The shift toward secured loans—a product with 500 basis points lower loss rates than unsecured alternatives—has boosted margins while serving Oportun's core mission of serving underserved communities.

The Risks of Replacing Vazquez: More Than a Leadership Disruption

Findell's push to oust Vazquez is framed as a “fresh start,” but the math tells a different story. Replacing a CEO with 17 years of industry experience and deep operational knowledge risks destabilizing Oportun's fragile recovery. Consider the stakes:

1. Leadership Continuity Matters: Vazquez's expertise in navigating economic cycles is unmatched. During his tenure, he has:
2. Stabilized credit metrics amid rising inflation.
3. Negotiated a $227 million undrawn liquidity buffer, shielding the company from short-term shocks.

4. Expanded into five new states for secured loans, a high-margin product.

5. The Cost of Transition: A leadership change would likely halt momentum. New executives would need months to grasp Oportun's complex credit models and regulatory environment—a luxury the company cannot afford while competitors like Upstart (UPST) and LendingClub (LC) are closing the gap.

6. Governance vs. Grandstanding: Findell's nominee, while seasoned in corporate governance, lacks fintech and credit risk expertise. The board's current mix of financial services veterans, technology leaders, and consumer finance specialists forms a cohesive unit capable of executing Oportun's mission-driven strategy.

The Path Forward: Vote GREEN to Secure Long-Term Value

Shareholders face a binary choice: vote GREEN to retain Vazquez and his team, or risk surrendering hard-won gains to untested alternatives. The stakes are clear:

• Financial Predictability: Oportun's 2025 guidance projects $1.10–$1.30 adjusted EPS, a 53%–81% increase over 2024. This growth hinges on maintaining current leadership's focus on cost control and credit discipline.
• Market Differentiation: Oportun's Net Promoter Score (NPS) of >75 and loyal customer base are direct outcomes of its mission-first approach—a strategy Vazquez has safeguarded.
• Regulatory and Competitive Resilience: With the CFPB scrutinizing fintechs and interest rates still elevated, Oportun's ability to balance risk and growth requires steady hands at the helm.

Conclusion: A Vote for Continuity Is a Vote for Value

Removing Vazquez would be a leap into the dark. The data, the governance reforms, and the financial turnaround all point to one conclusion: Oportun's future lies with its current leadership. Historical data reinforces this: a backtest of buying Oportun shares 5 days before annual shareholder meetings and holding for 60 days from 2019 to 2024 showed an average return of -1.15%, with a maximum drawdown of -1.15%. This underscores the risks of betting on short-term volatility around governance changes, further reinforcing the case for continuity under Vazquez's leadership. Shareholders who vote GREEN will affirm their faith in a strategy that has delivered results—and safeguard the company's path to sustainable growth.

The proxy battle isn't about ideology or ego—it's about math. Vazquez's record speaks for itself. Don't gamble with progress.

Backtest the performance of Oportun (OPRT) when buying 5 days before annual shareholder meetings and holding for ing days, from 2019 to 2024.

Vote GREEN. Vote for continuity.