NYSE$OPFI

Oppfi Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

OppFi's financial results for Q2 2022 were reported, showing revenue increase and growth in net originations and ending receivables.

OppFi reported a 38% year-over-year increase in revenue to $107.9 million for Q2 2022. Net originations increased by 57% year-over-year, and ending receivables increased by 54% year-over-year. The company reported a net income of $9.5 million and an adjusted net income of $6.8 million, with basic and diluted EPS at $0.26 and $0.10, respectively, and adjusted EPS at $0.08.

  • Revenue increased 38% year over year to $107.9 million.
  • Net originations increased 57% year over year to $226.2 million.
  • Ending receivables increased 54% year over year to $401.5 million.
  • Net income was reported at $9.5 million.

Headline financials

Total Revenue

$107M

Previous: $78.4M+37.1%
EPS (adj)

$0.08

Previous: -$1.48+105.4%
Auto-approval rate

62.0%

Previous: 51.0%+21.6%
Net charge-offs vs revenue

51.0%

Previous: 28.0%+82.1%
Free Cash Flow

$3.46M

No prior period
Net Income

$3.46M

Previous: $18M-80.8%
Operating Income

$6.4M

No prior period
Gross Profit

$107M

No prior period
Cash & Equivalents

$57.6M

Previous: $121M-52.3%
Total Assets

$578M

Previous: $437M+32.2%
Stock-Based Comp

$1.05M

No prior period

Revenue & EPS history

OppFi · Revenue · Quarterly

$107M

Q2 2022+37.1%vs Q2 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

OppFi reaffirms its full-year 2022 financial guidance of total revenue growth of 20% to 25% year over year. The Company now expects to report break-even results on an adjusted basis or a modest adjusted net loss for the full year.

Tailwinds

  • Reaffirms full-year 2022 financial guidance of total revenue growth of 20% to 25% year over year.
  • Operating expenses as a percentage of total revenue of 43% to 47%, excluding interest expense, add backs, and one-time items.
  • Company had $23.5 million in unrestricted cash as of June 30, 2022.
  • Company had an additional $212.4 million of unused debt capacity under its financing facilities for future availability as of June 30, 2022.
  • Total financing commitments of $550.0 million and cash on the balance sheet of $57.6 million, OppFi had $607.6 million in funding capacity as of June 30, 2022.

Headwinds

  • Given limited visibility considering the current macroeconomic environment.
  • Company now expects to report break-even results on an adjusted basis or a modest adjusted net loss for the full-year.
  • Due to persistent high inflation that caused significant credit deterioration in the latter half of the second quarter and early third quarter.
  • OppFi withdraws its previously issued guidance for metrics other than total revenue growth and operating expenses as a percentage of total revenue.
  • Total cash and restricted cash decreased by $4.7 million as of June 30, 2022 compared to December 31, 2021.

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 2022

Historical avgQ2 2022

+3.0%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+7.0%

Avg return

30 days after

63%

12 / 19 earnings

Positive

+20.6%

Q3 2024

Best reaction

-19.9%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.9%-4.7%-14.8%
Q4 2025-5.9%-9.9%-10.9%
Q3 2025+4.1%+0.6%-0.9%
Q1 2025+11.6%+25.4%+46.2%
Q4 2024+10.8%-3.2%-11.6%
Q3 2024+20.6%+32.0%+34.8%
Q2 2024+17.0%+36.0%+20.1%
Q1 2024+14.1%+13.3%+19.3%
Q4 2023-19.9%-29.6%-33.4%
Q3 2023+0.4%+5.7%+58.1%
Q2 2023+6.0%+17.4%+21.6%
Q1 2023+5.0%+2.5%+13.4%
Q4 2022+10.9%+13.2%+13.8%
Q3 2022-9.8%+5.1%+14.0%
Q2 2022+0.0%-19.9%-28.6%
Q1 2022-4.5%-19.6%-6.5%
Q4 2021-5.3%+5.3%+5.3%
Q3 2021+3.3%-10.8%-30.0%
Q2 2021-2.2%-16.7%+22.5%

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