[Management View]
OppFi reported a record-setting quarter with total revenue reaching $155 million, a 14% increase YoY. Net originations grew by 12.5%, with nearly 50% from new customers. Adjusted net income rose by 41% to $41 million. The company emphasized its strategic focus on enhancing financial flexibility, technology-driven upgrades, and shareholder returns through share repurchases.

[Outlook]
The company raised its full-year revenue guidance to $590 million–$605 million and adjusted net income to $137 million–$142 million. OppFi plans to roll out Model 6.1 for improved risk assessment and complete the LOLA migration by Q1 2026, aiming to enhance automation and operational throughput.

[Financial Performance]
OppFi's Q3 2025 financials showed a 15% increase in net revenue to $105 million. GAAP net income surged by 137% due to a $32 million non-cash gain. The yield slightly decreased to 133% from 134% YoY. Total expenses (excluding interest) declined to 30% of revenue, reflecting operational efficiency.

[Q&A Highlights]
Question 1: Are there any early indicators of household stress affecting credit performance?
Answer: Todd Schwartz noted that while macroeconomic conditions remain stable, some higher early payment stats led to slight tightening. The company maintains strong unit economics with Model 6, expecting charge-offs as a percentage of revenue to decrease YoY.

Question 2: How does Model 6 enable risk-based pricing, and what impact does it have?
Answer: Model 6 allows for dynamic risk-based pricing, targeting both high and low-risk customers. It helps in pricing risk properly and targeting growth, adapting to economic volatility.

Question 3: Can you discuss the potential of direct mail and connected TV for originations?
Answer: Direct mail, currently 4.2% of originations, is scalable and strategic. Connected TV is in early testing but shows promise for targeted customer reach and brand visibility.

Question 4: How sustainable is the current operational efficiency in scaling originations?
Answer: With LOLA and AI tools, OppFi expects to scale without significant fixed overhead increases, focusing on variable costs for growth.

Question 5: What are the expectations for yield trends and capital allocation?
Answer: Yield is expected to remain stable, with risk-based pricing supporting elevated levels. Capital allocation focuses on share repurchases and exploring M&A opportunities.

Question 6: How are marketing expenses and customer acquisition costs trending?
Answer: Marketing expenses have increased, with customer acquisition costs up by $20–$30 per account, aligning with growth efforts.

Question 7: What is the impact of the recent federal government shutdown on operations?
Answer: The shutdown has minimal impact, with a fair hardship program in place. The company is monitoring the situation closely.

[Sentiment Analysis]
Analysts showed interest in credit performance and strategic growth initiatives. Management maintained a confident tone, emphasizing operational efficiency and strategic flexibility.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|-------------------------|---------|---------|------------|
| Total Revenue | $155M | - | +14% |
| Net Originations | - | - | +12.5% |
| Adjusted Net Income | $41M | $29M | +41% |
| GAAP Net Income | $76M | - | +137% |
| Net Revenue | $105M | - | +15% |
| Yield | 133% | 134% | -1% |
| Total Expenses/Revenue | 30% | 33% | -3% |

[Risks and Concerns]
Potential risks include macroeconomic volatility affecting credit quality and the impact of external factors like the federal government shutdown. The company is focused on maintaining strong unit economics and adapting to changing conditions.

[Final Takeaway]
OppFi's Q3 2025 results highlight robust growth in revenue and net income, driven by strategic initiatives in risk assessment and operational efficiency. The company is well-positioned for continued growth, with a focus on leveraging technology and maintaining financial flexibility. Management's proactive approach to credit risk and capital allocation supports a positive outlook for the remainder of 2025 and into 2026.