Oportun reports strong shareholder returns and board changes

Published 20/03/2025, 20:34
Oportun reports strong shareholder returns and board changes

SAN CARLOS, Calif. - Oportun Financial Corporation (NASDAQ:OPRT), a financial services company currently trading at $6.16, has announced significant enhancements to its business operations and governance in response to dialogues with shareholders, including Findell Capital Management LLC. According to InvestingPro analysis, the stock appears undervalued compared to its Fair Value, suggesting potential upside for investors. The company’s management and Board of Directors have actively engaged with shareholders to foster a collaborative relationship aimed at increasing shareholder value.

The company has implemented a series of initiatives that have led to a marked improvement in its financial performance. These include exceeding its fourth-quarter outlook, returning to GAAP profitability, and reducing operating expenses by approximately 40%, amounting to over $240 million in annualized costs. With revenue of $763.62M and a strong current ratio of 9.47, InvestingPro data shows the company maintains robust liquidity. Oportun has also refined its product portfolio and executed a comprehensive review of strategic options, resulting in the successful refinancing of its corporate financing facility.

Additionally, Oportun has streamlined its operations to focus on core offerings, such as personal loans and savings products. This strategic move included the divestiture of its credit card portfolio in November 2024. The company has reported a 121% total shareholder return over the past 12 months, outperforming industry peers and benchmarks. InvestingPro analysts have set price targets ranging from $6.50 to $11.00, with expectations of positive earnings growth this year. Get access to 10+ additional ProTips and comprehensive analysis with an InvestingPro subscription.

Looking ahead, Oportun has set ambitious goals for 2025, with full-year earnings guidance suggesting a significant increase in net income and an expected Adjusted Return on Equity (ROE) in the teens. These projections are based on prudent full-year originations growth and a continued reduction in operating expenses. The company’s next earnings report is scheduled for May 12, 2025, which will be crucial in validating these projections.

Oportun’s Board has been strengthened with the addition of four independent directors since February 2024, two of which were suggested by Findell. This evolution of the Board is part of the company’s commitment to maintaining strong, independent oversight and supporting the management team’s strategy for sustainable value creation.

The company’s press release contains forward-looking statements, which are subject to risks and uncertainties. These statements are based on current expectations and projections and should not be relied upon as guarantees of future performance.

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

In other recent news, Oportun Financial Corp reported a strong performance for Q4 2024, significantly exceeding earnings expectations. The company achieved an earnings per share (EPS) of $0.49, far surpassing the forecast of $0.0013, and reported a total revenue of $251 million. This robust financial performance was accompanied by a GAAP net income of $9 million, marking a notable $51 million improvement year-over-year. BTIG initiated coverage on Oportun Financial with a Buy rating and a price target of $10.00, citing potential earnings growth and alignment with peers such as OneMain Financial and Regional Management. BTIG anticipates a 211% year-over-year GAAP EPS growth for 2026 and a further 22% increase in 2027. Meanwhile, Findell Capital Management, which holds a 9.1% stake in Oportun, is advocating for changes to the company’s board, criticizing the current leadership for lack of lending expertise. Findell has nominated two new candidates to enhance shareholder value and align Oportun with industry standards. These developments reflect a dynamic period for Oportun Financial, with significant implications for its operational and financial strategies.

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