Overview
Oportun Q3 adjusted EPS beat analyst expectations
Net income for Q3 rises by $35 mln yr/yr
Operating expenses decreased 11% yr/yr, supporting margin expansion
Outlook
Oportun expects full-year 2025 revenue between $950 mln and $955 mln
Company raises full-year adjusted EPS guidance to $1.30 - $1.40
Annualized net charge-off rate expected at 12.1% +/- 10 bps for 2025
Result Drivers
OPERATING EXPENSES - Co reduced operating expenses by 11% yr/yr, aiding margin expansion
CAPITAL STRUCTURE - Co strengthened capital structure with ABS financings and expanded warehouse capacity
CREDIT PERFORMANCE - Improved credit performance with lower net charge-offs and delinquency rates
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $238.70 mln | $238.52 mln (6 Analysts) |
Q3 Adjusted EPS | Beat | $0.39 | $0.26 (8 Analysts) |
Q3 EPS | $0.11 | ||
Q3 Net Income | $5.20 mln | ||
Q3 Adjusted EBITDA | Beat | $41 mln | $36.60 mln (3 Analysts) |
Q3 Operating Expenses | $90.80 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the consumer lending peer group is "buy"
Wall Street's median 12-month price target for Oportun Financial Corp is $9.50, about 43.6% above its November 3 closing price of $5.36
The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 4 three months ago
Press Release: ID:nGNX9gpWpP
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.
(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.)
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