Oportun reports Q1 growth, defends board nominees

Published 02/06/2025, 13:14
Oportun reports Q1 growth, defends board nominees

SAN CARLOS, Calif. - Oportun Financial Corporation (NASDAQ: OPRT), a financial services provider with a market capitalization of $291.74 million, has released a statement to stockholders ahead of its 2025 Annual Meeting, emphasizing its recent performance and strategic decisions. The company reported nearly a 40% year-over-year increase in aggregate originations for Q1 2025 and an adjusted operating expense ratio of 13.3%, marking its second lowest as a public company. Additionally, Oportun highlighted a fifth consecutive year-over-year decline in its 30+ day delinquency rate. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 10.91, indicating robust short-term financial health.

The company is guiding an adjusted EPS of $1.10 to $1.30 for 2025, projecting a growth of 53% to 81% over the previous year. Oportun’s total stockholder returns have notably exceeded those of its peers and broader markets in various time frames, with InvestingPro data showing impressive returns of 71.39% year-to-date and 96.75% over the past year. Subscribers to InvestingPro can access 10+ additional exclusive insights and detailed financial metrics to better understand OPRT’s momentum.

In the statement, Oportun’s Board urged stockholders to vote for its two nominees, CEO Raul Vazquez and Carlos Minetti, on the GREEN proxy card for the upcoming Annual Meeting scheduled on July 18, 2025. The Board emphasized that the leadership of Vazquez has been instrumental in navigating the company through economic cycles and that his removal, as proposed by Findell Capital Management, could disrupt the company’s progress. With OPRT showing strong price momentum and analysts expecting profitability this year, as revealed in InvestingPro’s comprehensive research report, the upcoming meeting could be crucial for maintaining this trajectory.

Oportun’s management has refocused the company’s strategy from growth to profitability and predictability, responding to macroeconomic changes that began in early 2022, such as inflation and increased cost of capital. The company has made cuts in operating expenses, streamlined business operations, and sold off its credit card portfolio to improve its cost structure.

The company’s Board has nominated Vazquez and Minetti for their expertise in financial services and consumer lending, critical for Oportun’s business. The Board is also proposing amendments to the company’s governing documents to declassify the Board and allow stockholders to amend and approve amendments with a simple majority vote, reflecting a commitment to governance and enhancing stockholder rights.

This news is based on a press release statement from Oportun Financial Corporation.

In other recent news, Oportun Financial Corp reported its Q1 2025 earnings, surpassing market expectations with an earnings per share (EPS) of $0.40 against the forecasted $0.05. The company’s revenue also exceeded predictions, reaching $235.9 million compared to the anticipated $228.66 million. This performance underscores the company’s effective cost management and strategic focus on high-quality customer acquisition. Oportun Financial also reported a 59% year-over-year growth in secured personal loans and reduced operating expenses by 15% year-over-year. The company maintained its full-year 2025 guidance, projecting adjusted EPS growth of 53-81% within the range of $1.1 to $1.3. JMP analysts have maintained a Market Perform rating on Oportun Financial stock, highlighting the company’s strategic downsizing of costs and successful exit from unprofitable ventures. The firm’s credit performance is viewed positively, with the most recent loans constituting 96% of the loan portfolio, expected to rise to 99% by the end of 2025. JMP suggests that investors reassess the company’s performance after observing a few more quarters due to Oportun’s history of credit volatility.

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