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- **GAAP Profitability Milestone**: Fourth consecutive quarter of GAAP net income ($5.2M) and 5% ROE, up 40 percentage points YoY.
- **Credit Improvement**: 11.8% annualized NCO rate, 44 basis point decline in 30+ day delinquency to 4.7%.
- **Cost Efficiency**: Operating expenses down 11% YoY to $91M, with full-year 2025 guidance of $370M.
- **Strategic Growth**: 7% YoY originations growth to $512M, 70% to returning members, and 48% YoY secured loan portfolio expansion.
- **Capital Strength**: Debt-to-equity ratio reduced to 7.1x, ABS issuances at sub-6% yields, and 20% adjusted ROE driven by unit economics progress.

**【CEO Summary Section】**
- Achieved GAAP net income of $5.2 million, marking the fourth consecutive quarter of profitability with a 5% ROE, up 40 percentage points year-over-year.
- Annualized net charge-off rate improved to 11.8%, with a 44 basis point decline in 30+ day delinquency to 4.7%.
- Operating expenses reduced by 11% YoY to $91 million, with full-year 2025 guidance of $370 million, a $40 million improvement from 2024.
- Originations growth of 7% YoY to $512 million, with 70% of Q3 originations to returning members, reflecting credit tightening.
- Full-year 2025 adjusted EPS guidance raised to $1.30-$1.40, up 81%-94% YoY, driven by expense discipline and lower cost of capital.

**【CFO Financial Commentary】**
- GAAP net income of $5.2 million, with adjusted EPS of $0.39, up 81% YoY.
- Risk-adjusted net interest margin improved 231 basis points YoY to 16.4%, with adjusted OpEx ratio at 12.6%, near 12.5% target.
- Debt-to-equity ratio reduced to 7.1x, down from 8.7x YoY, with $50 million repayment of high-cost corporate debt.
- ABS issuances at sub-6% yields, expanding warehouse capacity and extending average maturity.
- Unit economics progress: adjusted ROE of 20%, up 19 percentage points YoY, targeting 20%-28% GAAP ROE by 2026.

**【Q&A Key Highlights】**
- Consumer behavior: 5% YoY reduction in average loan size for unsecured loans, 7% for secured, driven by affordability focus.
- Repayment trends: Slight increase in repayment rates due to smaller loan sizes, no concern over portfolio health.
- OpEx reductions: Sales & marketing down $1M, personnel expenses down $2M, G&A down $2M YoY.
- Net charge-off outlook: Temporary 12.45% Q4 rate expected to ease by Q2 2026 due to credit tightening and returning member focus.
- Secured loan growth: $209M portfolio (8% of total), up 48% YoY, with dedicated marketing campaigns for car-owning customers.
- Balance sheet: Targeting 6x debt-to-equity ratio, with progress on cost of capital reduction and liquidity enhancement.

Oportun Financial Corporation (OPRT) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

OPRT

OPRT fundamentals

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