Raytheon awarded $71 million in Navy contracts for missile systems
NEW YORK - Findell Capital Partners, a top shareholder of Oportun Financial Corporation (NASDAQ:OPRT), has disputed claims made by the consumer lender regarding its cost-cutting initiatives and operational improvements. The company, currently valued at $308 million, has shown strong market performance with a 138% return over the past year, according to InvestingPro data.
In a letter to fellow stockholders issued Friday, Findell Capital, which owns approximately 7.4% of Oportun’s outstanding shares, contested the company’s assertion that management proactively addressed cost structure issues beginning in mid-2022. Despite operational challenges, InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 10.91, indicating robust short-term financial health.
The activist investor argued that significant improvements in operating expenses per loan only materialized following Findell’s advocacy in early 2023 and the subsequent appointment of directors Scott Parker and Richard Tambor to Oportun’s board in 2024.
Findell is currently seeking to elect Warren Wilcox, described as a consumer finance industry veteran, to Oportun’s board at the upcoming annual meeting scheduled for July 18. The investment firm contends that additional independent oversight is needed following what it characterized as "value-destructive acquisitions" and "slow operational improvements."
The letter specifically challenged Oportun’s February 2023 plan to reduce expenses by $38 million, which Findell deemed insufficient. The investor noted that it had called for minimum cuts of $150 million when it approached the company in March 2023.
Findell also highlighted that Oportun’s operating expenses per loan improved by 61% from the first quarter of 2023 through the fourth quarter of 2024, attributing much of this reduction to the arrival of the new directors.
The dispute comes as Oportun shareholders prepare to vote on board composition at next month’s annual meeting. The information in this article is based on statements contained in Findell Capital’s press release.
In other recent news, Oportun Financial Corporation reported strong financial results for Q1 2025, surpassing market expectations with earnings per share (EPS) of $0.40 against a forecast of $0.05 and revenue of $235.9 million compared to the anticipated $228.66 million. The company achieved a 59% year-over-year growth in secured personal loans and reduced operating expenses by 15%. Oportun continues to focus on profitability, projecting an adjusted EPS growth of 53% to 81% for the full year 2025. Meanwhile, Findell Capital Management, a major shareholder, is pushing for changes in Oportun’s board, advocating for the election of Warren Wilcox and the reelection of Carlos Minetti, while opposing CEO Raul Vazquez’s continued board service. Oportun’s board, however, is urging stockholders to support Vazquez and Minetti, emphasizing the company’s strategic shift toward profitability. In response to macroeconomic conditions, Oportun has implemented cost-saving measures, resulting in $240 million in savings since mid-2022. JMP analysts have maintained a Market Perform rating on Oportun Financial, noting the company’s strategic downsizing and successful exit from unprofitable ventures.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.