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NEW YORK - Findell Capital Partners, LP, a major stockholder of Oportun Financial Corporation (NASDAQ:OPRT), released an investor presentation Monday highlighting what it describes as governance failures at the consumer finance company. Despite recent challenges, InvestingPro data shows OPRT has delivered a remarkable 134.8% return over the past year, with the stock currently trading at $7.32.
The presentation criticizes CEO Raul Vazquez for transforming "Oportun’s simple lending business into a money-losing fintech platform," which Findell claims destroyed nearly $1.5 billion in stockholder value. The activist investor specifically cited the approximately $211 million acquisition of Hello Digit, Inc. as a "disastrous" decision.
According to Findell, these strategic missteps led to deteriorating revenue and earnings, resulting in a roughly 76% stock price decline from September 2019 through March 2023. The presentation also claims Oportun has underperformed its closest public peer, OneMain Holdings, Inc., in key metrics including net charge-offs and operating expense ratio. However, InvestingPro analysis reveals the company maintains a strong financial position with a current ratio of 10.91, indicating robust liquidity. The company’s overall financial health score is rated as "Good" by InvestingPro’s comprehensive assessment system.
The investor criticizes the current board for lacking lending experience, particularly in subprime lending, and alleges potential conflicts of interest among directors based on previous working relationships.
Findell notes that its previous engagement with Oportun, including the appointment of two directors with lending expertise, has led to positive changes including a 61% reduction in operating expenses per loan and a more than 206% total stockholder return.
The activist investor is urging stockholders to vote for its independent director candidate Warren Wilcox and against the reelection of CEO Vazquez.
The presentation outlines several recommendations for Oportun, including reducing corporate overhead by $80 million, removing its self-imposed 36% interest rate cap, and targeting specific return metrics.
This article is based on information from a press release statement issued by Findell Capital.
In other recent news, Oportun Financial Corporation reported a nearly 40% year-over-year increase in aggregate originations for the first quarter of 2025. The company also highlighted a significant improvement in its adjusted operating expense ratio, marking its second-lowest as a public entity. Oportun is projecting an adjusted EPS of $1.10 to $1.30 for 2025, indicating potential growth of 53% to 81% over the previous year. Meanwhile, Findell Capital, a major shareholder, is advocating for changes to Oportun’s board, urging stockholders to elect Warren Wilcox, citing his expertise in financial services. The firm also supports the reelection of Carlos Minetti but opposes the continuation of CEO Raul Vazquez on the board. Oportun, on the other hand, has defended its board nominees, emphasizing the strategic decisions made under Vazquez’s leadership, including a focus on profitability and streamlined operations. Despite these internal disputes, analysts at JMP have maintained a Market Perform rating on Oportun, noting the company’s successful exit from unprofitable ventures and improved credit performance. The analysts suggest a cautious approach, citing Oportun’s history of credit volatility.
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