Bullish indicating open at $55-$60, IPO prices at $37
OppFi Inc. (NYSE:OPFI) shares surged 11.71% in premarket trading after the fintech lender released its Q2 2025 earnings presentation on August 6, showcasing record-breaking financial performance and raising its full-year guidance. The company reported its second consecutive quarter of strong results, building on momentum from Q1 when it significantly beat analyst expectations.
Quarterly Performance Highlights
OppFi delivered total revenue of $142.4 million in Q2 2025, a 12.8% increase year-over-year and a new company quarterly record. While GAAP net income decreased to $11.5 million from $27.7 million in the prior year period, adjusted net income reached a record $39.4 million, up $14.6 million or 59% year-over-year.
The company’s profitability metrics showed significant improvement, with adjusted net income margin expanding 810 basis points to 27.7%. This expansion was driven by operational efficiencies, as total expenses as a percentage of revenue decreased 610 basis points year-over-year to 38.9%.
As shown in the following quarterly earnings highlights:
Todd Schwartz, CEO of OppFi, had previously emphasized the company’s growth potential during the Q1 earnings call, stating, "We are now beginning to unlock its full growth potential, increasing profitability and strengthening our balance sheet." The Q2 results appear to validate this strategic direction.
Detailed Financial Analysis
OppFi’s financial performance shows improvement across multiple key metrics. The company’s net charge-off rate as a percentage of total revenue decreased 60 basis points year-over-year to 31.9%, while recoveries of previously charged-off receivables increased 26.7% compared to Q2 2024.
The following chart illustrates the company’s key profitability drivers:
Total (EPA:TTEF) net originations increased 14% year-over-year to $234 million, with ending receivables growing to $438 million compared to $387 million in the prior year period. The company’s automatic approval rate improved to 80% from 76% a year ago, while maintaining an annualized average yield of 136%, up from 135% in Q2 2024.
OppFi’s operational metrics demonstrate the company’s continued focus on efficiency and scale:
The company’s adjusted earnings per share reached $0.45 in Q2 2025, a 55% increase from $0.29 in Q2 2024 and significantly higher than the $0.19 reported in Q2 2023. This strong EPS growth reflects both improved operational performance and effective capital allocation.
Strategic Initiatives & Market Position
OppFi continues to position itself as a mission-driven financial platform serving credit-insecure consumers. The company has facilitated more than $7.8 billion in gross loan issuance covering over 4.3 million loans since inception, targeting a market of over 60 million U.S. consumers who face credit insecurity.
The company’s strategic positioning is outlined in this overview:
Customer satisfaction remains high, with a Net Promoter Score of 79, along with strong ratings on Google (NASDAQ:GOOGL) (4.80 stars from 11,971 reviews) and Trustpilot (4.5 stars from 5,145 reviews). These metrics suggest OppFi’s product offerings continue to resonate with its target market.
The company has also strengthened its balance sheet through several capital allocation initiatives in 2025, including repaying $30 million in corporate term loan debt in Q1, securing a $50 million upsize to its revolving credit facility, and distributing a $0.25 per share special dividend in Q2.
The following slide details OppFi’s free cash flow generation and funding capacity:
Forward-Looking Statements
Following its strong Q2 performance, OppFi raised its full-year 2025 guidance across all key metrics. The company now expects total revenue between $578 million and $605 million, up from its previous guidance of $563 million to $594 million provided after Q1 results.
Adjusted net income guidance was raised to $125 million to $130 million, a significant increase from the previous range of $106 million to $113 million. Similarly, adjusted EPS guidance was raised to $1.39 to $1.44, up from $1.18 to $1.26.
The updated guidance reflects management’s confidence in continued strong performance:
This marks the second consecutive quarter of raised guidance, suggesting accelerating momentum in OppFi’s business model. The company’s focus on operational efficiency, combined with its strong market position in the alternative credit space, appears to be yielding sustainable improvements in financial performance.
Market Context
OppFi’s stock has shown significant volatility over the past year, trading between a 52-week low of $3.47 and a high of $17.728. The positive premarket reaction to the Q2 presentation suggests investors are responding favorably to the company’s improved performance and raised guidance.
The fintech lender continues to demonstrate its ability to maintain profitability across business cycles, having now achieved 10 consecutive years of positive net income. This track record, combined with the company’s strong free cash flow generation and robust balance sheet, positions OppFi well for continued growth in the alternative credit market.
Full presentation:
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