NASDAQ$OPRT

Oportun Financial Corporation · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Oportun reported strong results driven by superior customer offering and differentiated A.I.-driven capabilities.

Oportun Financial Corporation reported strong second-quarter results, with aggregate originations growth of 175% year-over-year. Diluted EPS was $0.24, and Adjusted EPS was $0.56. The company's growth is attributed to broader engagement with new and returning customers across its digital platform and delivering some of the best credit metrics in the company's history.

  • Aggregate originations increased by 175% year-over-year, reaching $433 million.
  • The managed principal balance at the end of the period was $1.87 billion, a decrease of 3% year-over-year.
  • The 30+ Day Delinquency Rate improved to 2.5% compared to 3.7% in the prior-year period.
  • The Annualized Net Charge-Off Rate decreased to 6.4% compared to 10.6% in the prior-year period.

Headline financials

Total Revenue

$138M

Previous: $143M-3.1%
EPS (adj)

$0.56

Previous: -$1.26+144.4%
Net Charge-Off Rate

6.4%

Previous: 10.6%-39.6%
30+ Day Delinquency Rate

2.5%

No prior period
Aggregate Originations

$433M

No prior period
ROE

6.1%

Previous: -29.4%+120.7%
Adjusted ROE

14.2%

Previous: -29.9%+147.5%
Managed Principal Balance

$1.87B

Previous: $1.94B-3.5%
Capital Expenditures

-$1.85M

Previous: -$3.18M+41.9%
Free Cash Flow

$5.41M

Previous: -$37.4M+114.4%
Net Income

$7.25M

Previous: -$34.2M+121.2%
Operating Income

$126M

Previous: $132M-4.5%
Gross Profit

$138M

Previous: $143M-3.1%
Cash & Equivalents

$138M

Previous: $139M-0.6%
Total Assets

$2.22B

Previous: $1.97B+12.5%
Stock-Based Comp

$5.37M

Previous: $4.97M+7.9%

Revenue & EPS history

Oportun · Revenue · Quarterly

$138M

Q2 2021-3.1%vs Q2 2020
Beat estimate in 8 of 11 quarters(73%)
ActualEstimate

Revenue by segment

Oportun · $260M total across 2 segments · Q1 2023

  • Interest Income
    $238M
  • Non-interest Income
    $21.9M

Forward guidance

Oportun provided financial outlook for the third quarter and full year 2021.

Tailwinds

  • Aggregate Originations for 3Q 2021 are expected to be $600 million.
  • Total Revenue for 3Q 2021 is expected to be $152 million.
  • Adjusted EBITDA for 3Q 2021 is expected to be between $3 million and $5 million.
  • Adjusted Net Income for 3Q 2021 is expected to be between $12 million and $14 million.
  • Adjusted EPS for 3Q 2021 is expected to be between $0.40 and $0.46.

Headwinds

  • Annualized Net Charge-Off Rate for 3Q 2021 is expected to be 6.7% +/- 10 bps.
  • Aggregate Originations for the full year 2021 are expected to be $2.125 billion.
  • Total Revenue for the full year 2021 is expected to be between $602 million and $606 million.
  • Adjusted EBITDA for the full year 2021 is expected to be between $7 million and $10 million.
  • Adjusted Net Income for the full year 2021 is expected to be between $55 million and $58 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+3.1%

Avg return

Earnings day

+4.2%

Avg return

5 days after

+1.9%

Avg return

30 days after

68%

21 / 31 earnings

Positive

+37.6%

Q1 2023

Best reaction

-51.5%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.1%-7.8%
Q4 2025-5.1%-2.7%-17.9%
Q3 2025+1.6%-7.6%+3.9%
Q1 2025+9.1%+16.3%+14.3%
Q4 2024+8.3%+47.2%-6.6%
Q3 2024-6.3%-3.1%+20.9%
Q2 2024-2.4%+7.3%-1.4%
Q1 2024+21.4%+16.2%-19.2%
Q4 2023-2.1%-17.7%-37.5%
Q3 2023-51.5%-59.0%-52.6%
Q2 2023+27.4%+24.4%+39.5%
Q1 2023+37.6%+26.9%+51.0%
Q4 2022-36.6%-15.7%-7.4%
Q3 2022+22.0%+53.1%+28.1%
Q2 2022-24.1%-24.1%-50.6%
Q1 2022+1.8%-1.6%+4.5%
Q4 2021-0.5%-10.2%-20.0%
Q3 2021+8.9%+15.1%-11.4%
Q2 2021+15.1%+14.9%+18.7%
Q1 2021+10.8%+2.6%+4.5%
Q4 2020-1.1%-3.8%+27.3%
Q3 2020+5.8%+10.5%+20.7%
Q2 2020+5.3%+0.4%-11.5%
Q1 2020+9.4%+9.9%+104.5%
Q4 2017+9.5%+9.3%-41.7%
Q4 2019+4.7%+5.4%-42.8%
Q1 2019+4.4%+3.8%+8.0%
Q4 2018+4.4%+3.8%+8.0%
Q3 2018+4.4%+3.8%+8.0%
Q2 2019+4.4%+3.8%+8.0%
Q3 2019+8.5%+7.7%+6.3%
Q2 2018
Q1 2018
Q3 2017
Q2 2017
Q1 2017

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro