We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
OppFi Raises EPS Guidance for 2025: Is This Expectation Valid?
Read MoreHide Full Article
Key Takeaways
OPFI raised its 2025 EPS outlook to $1.18-$1.26 after Q1 EPS soared 277.5% to 38 cents.
Growth in net originations, higher average yield and lower charge-offs boosted profitability.
Machine learning-driven credit models and cost discipline enhanced OPFI's credit and operational strength.
OppFi (OPFI - Free Report) strengthened its 2025 adjusted earnings per share (EPS) in the first quarter of 2025, signaling optimism in its operational capabilities and market positioning.
The leading fintech platform raised its EPS guidance following the impressive first-quarter 2025 results, wherein the company reported 38 cents, which skyrocketed 277.5% from the year-ago quarter. Management hiked the EPS guidance to $1.18-$1.26 from the preceding quarter’s view of $1.06-$1.07. This upward revision is based on an expected weighted average share count of 90 million, reflecting management’s increased expectations for future profitability.
Several compelling metrics led to this optimistic trajectory. In the first quarter of 2025, the top line improved 10.1% year over year. This growth had a positive impact on the adjusted net income, resulting in a 285.1% year-over-year upsurge. Net originations increased 16% from the year-ago quarter. Improvement in OPFI’s credit quality was evidenced by a significant decline in the net charge-off rate as a percentage of total revenues to 34.6% from the year-ago quarter’s 48%. The company’s effective revenue generation capability was demonstrated by an improvement in the average yield on the loan portfolio to 136%.
In terms of credit risk enhancements, OPFI has been refining its credit modeling consistently, using advanced machine learning models. These models improve risk assessment, cater to charge-off risks and capture higher-quality borrowers, leading to enhanced credit performance and loss reduction. Improved operational efficiency, fueled by disciplined cost management and technological advancements, allows the company to scale operations effectively without a surge in expenses. Strong loan demand and a healthy credit performance bolster OppFi’s internal strength.
The combination of strong demand for OPFI’s products and an environment wherein borrowers are meeting obligations add to the company’s long-term sustainability and ability to thrive profitably. This strengthens management’s confidence in OppFi’s financial success in 2025, leading to an upgrade in the EPS guidance.
OPFI’s Price Performance, Valuation & Estimates
The stock has skyrocketed 308.3% in the past year, significantly outperforming its competitors, Green Dot (GDOT - Free Report) , FirstCash (FCFS - Free Report) , and the industry as a whole. The industry and FirstCash have rallied 29% and 11.2%, respectively. Green Dot did not observe price change over the past year.
1-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, OPFI trades at a forward price-to-earnings ratio of 10.29, lower than the industry’s 23.39. Green Dot trades at 7.37 and FirstCash hovers at 14.93. All three companies have a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for OppFi’s earnings for 2025 has increased 14.9% over the past 30 days.
Image: Bigstock
OppFi Raises EPS Guidance for 2025: Is This Expectation Valid?
Key Takeaways
OppFi (OPFI - Free Report) strengthened its 2025 adjusted earnings per share (EPS) in the first quarter of 2025, signaling optimism in its operational capabilities and market positioning.
The leading fintech platform raised its EPS guidance following the impressive first-quarter 2025 results, wherein the company reported 38 cents, which skyrocketed 277.5% from the year-ago quarter. Management hiked the EPS guidance to $1.18-$1.26 from the preceding quarter’s view of $1.06-$1.07. This upward revision is based on an expected weighted average share count of 90 million, reflecting management’s increased expectations for future profitability.
Several compelling metrics led to this optimistic trajectory. In the first quarter of 2025, the top line improved 10.1% year over year. This growth had a positive impact on the adjusted net income, resulting in a 285.1% year-over-year upsurge. Net originations increased 16% from the year-ago quarter. Improvement in OPFI’s credit quality was evidenced by a significant decline in the net charge-off rate as a percentage of total revenues to 34.6% from the year-ago quarter’s 48%. The company’s effective revenue generation capability was demonstrated by an improvement in the average yield on the loan portfolio to 136%.
In terms of credit risk enhancements, OPFI has been refining its credit modeling consistently, using advanced machine learning models. These models improve risk assessment, cater to charge-off risks and capture higher-quality borrowers, leading to enhanced credit performance and loss reduction. Improved operational efficiency, fueled by disciplined cost management and technological advancements, allows the company to scale operations effectively without a surge in expenses. Strong loan demand and a healthy credit performance bolster OppFi’s internal strength.
The combination of strong demand for OPFI’s products and an environment wherein borrowers are meeting obligations add to the company’s long-term sustainability and ability to thrive profitably. This strengthens management’s confidence in OppFi’s financial success in 2025, leading to an upgrade in the EPS guidance.
OPFI’s Price Performance, Valuation & Estimates
The stock has skyrocketed 308.3% in the past year, significantly outperforming its competitors, Green Dot (GDOT - Free Report) , FirstCash (FCFS - Free Report) , and the industry as a whole. The industry and FirstCash have rallied 29% and 11.2%, respectively. Green Dot did not observe price change over the past year.
1-Year Price Performance
From a valuation standpoint, OPFI trades at a forward price-to-earnings ratio of 10.29, lower than the industry’s 23.39. Green Dot trades at 7.37 and FirstCash hovers at 14.93. All three companies have a Value Score of A.
The Zacks Consensus Estimate for OppFi’s earnings for 2025 has increased 14.9% over the past 30 days.
OPFI currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.