OppFi Inc

OppFi Inc (NYSE: OPFI) is a technology-driven specialty finance platform with a mission-focused approach. The company is committed to delivering a superior customer experience while helping banks provide access to credit products. Its flagship offering is delivered through the OppLoans platform. Through its mobile-friendly online platform, qualified applicants can apply for credit and choose to participate in the OppFi TurnUp Program if they wish.

Key Financial Updates:

• Strong Growth in Net Income and Adjusted Earnings: OppFi Inc. reported a significant increase in net income for the first quarter ended March 31, 2025. The company achieved net income of USD 20.4 million, representing a 101.3% increase year-over-year, despite absorbing an USD 11.4 million loss attributable to OppFi Inc. itself. Furthermore, adjusted net income reached a record USD 33.8 million for the quarter, reflecting a 285.1% rise compared to the prior-year period.
• Record-Breaking Revenue Performance: Total revenue for the first quarter reached USD 140.3 million, marking a 10.1% year-over-year increase and setting a new quarterly record for the company. This strong performance was supported by enhanced credit modeling and operational efficiencies, contributing to sustained growth and profitability.
• Improved Credit Metrics and Yield: OppFi demonstrated notable improvement in its credit metrics during the quarter. The average yield, annualized, rose by 630 basis points year-over-year to 135.8%. At the same time, the net charge-off rate as a percentage of total revenue declined by 1,330 basis points to 34.6%, highlighting strengthened portfolio performance and more effective risk management.
• Operational Highlights and Key Metrics: During the quarter, total net originations amounted to USD 189.2 million, while total retained net originations were USD 169.0 million. The company reported ending receivables of USD 406.6 million. Net charge-offs as a percentage of average receivables, on an annualized basis, improved to 47% from 62% in the comparable period of 2024. Additionally, the auto-approval rate increased to 79%, reflecting the continued success of the company’s automated underwriting process.
• Upgraded Full-Year Guidance: In the light of the strong first-quarter results, OppFi revised its full-year 2025 guidance upwards. The company now projects adjusted net income in the range of USD 106 million to USD 113 million, up from the previously forecasted USD 95 million to USD 97 million. Adjusted earnings per share are now expected to range between USD 1.18 and USD 1.26, compared to the earlier estimate of USD 1.06 to USD 1.07.

Technical Observation (on the daily chart):

The chart for OPFI shows the stock in a broader uptrend, with recent price action holding above the 50-day moving average (USD 11.08) while facing resistance near the 21-day moving average (USD 12.86). After a strong rally and pullback earlier in the year, the stock is consolidating with neutral momentum, as indicated by the RSI around 52.

OppFi Inc. delivered a strong first quarter of 2025, achieving record highs in revenue and adjusted net income, driven by disciplined growth, enhanced credit modeling, and operational efficiency. Total revenue rose 10.1% year-over-year to USD 140.3 million, while adjusted net income surged 285.1% to USD 33.8 million. The company also reported improved credit quality, with a substantial reduction in net charge-off rates and a higher average yield. Reflecting this solid performance, OppFi raised its full-year 2025 adjusted net income guidance, underscoring confidence in its ability to sustain profitable growth.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Buy’ rating has been given to OppFi Inc (NYSE: OPFI) at the closing market price of USD 12.58 as of June 18,2025. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is June 18,2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.