Online lender OppFi's Q3 profit beats on higher auto approval rates

Overview

• OppFi Q3 revenue grows 13.5% yr/yr, setting a company record

• Adjusted EPS for Q3 beats analyst expectations

• Company raises full-year guidance for revenue and adjusted EPS

Outlook

• OppFi raises full-year revenue guidance to between $590 mln and $605 mln

• Company expects full-year adjusted net income between $137 mln and $142 mln

• OppFi forecasts full-year adjusted EPS between $1.54 and $1.60

Result Drivers

• AUTO-APPROVAL RATE - Increased to 79.1%, improving operating efficiency and contributing to record net income

• STRATEGIC POSITIONING - CEO Todd Schwartz cites Model 6.1 refit, risk-based pricing, and dynamic seasonal modeling as key strategies to mitigate economic volatility

• GUIDANCE RAISE - Co raises EPS guidance for the third time this year, reflecting confidence in ongoing performance

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for OppFi Inc is $14.00, about 28.6% above its October 28 closing price of $9.99

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nPn4rwPzpa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)