NASDAQ$OPRT

Oportun Financial Corporation · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported record revenue and lowest quarterly operating expenses in two years.

Oportun Financial Corporation reported record revenue of $268 million, a 7% year-over-year growth. The company's operating expenses were the lowest in two years. However, the impact of fair value adjustments and higher interest expense caused the company to fall short of Adjusted EBITDA expectations.

  • Revenue reached a record $268 million, reflecting a 7% year-over-year increase.
  • Operating expenses decreased to $123 million, the lowest in two years.
  • Two new personal loan financing agreements totaling up to $267 million were executed.
  • The company is implementing additional cost reductions aiming for $105 million in quarterly run rate expenses by the end of 2024 and streamlining product suite.

Headline financials

Total Revenue

$268M

Previous: $250M+7.3%
EPS (adj)

-$0.46

Previous: $0.25-284.0%
Net Charge-Off Rate

11.8%

Previous: 9.8%+20.4%
Aggregate Originations

$483M

Previous: $634M-23.8%
Managed Principal Balance

$3.23B

No prior period
Capital Expenditures

-$6.45M

No prior period
Free Cash Flow

-$21.1M

Previous: -$106M+80.0%
Net Income

-$21.1M

Previous: -$106M+80.0%
Operating Income

$171M

Previous: $116M+46.5%
Gross Profit

$268M

Previous: $250M+7.3%
Cash & Equivalents

$81.9M

Previous: $176M-53.4%
Total Assets

$3.43B

Previous: $3.54B-3.1%
Stock-Based Comp

$4.36M

Previous: $7.05M-38.1%

Revenue & EPS history

Oportun · Revenue · Quarterly

$268M

Q3 2023+7.3%vs Q3 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

Oportun is providing the following guidance for 4Q 2023 and full year 2023.

Tailwinds

  • Total Revenue 4Q 2023: $260 - $265 M
  • Total Revenue Full Year 2023: $1,054 - $1,059 M
  • Annualized Net Charge-Off Rate 4Q 2023: 12.3% +/- 15 bps
  • Annualized Net Charge-Off Rate Full Year 2023: 12.2% +/- 10 bps
  • Adjusted EBITDA 4Q 2023: $5 - $10 M

Headwinds

  • Adjusted EBITDA Full Year 2023: $0.5 - $5.5 M

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 Q3 2023

Historical avgQ3 2023

+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

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