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Oportun Surges 80.7% YTD: Is It Too Late to Buy OPRT Stock?
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Key Takeaways
OPRT has surged 80.7% in 2025, outperforming peers ENVA and RM and the broader Finance sector.
Strong tech use, product diversity and rising non-interest income are fueling revenues and efficiency gains.
Despite high costs and NCOs, OPRT expects EPS to rise to $1.10 to $1.30 range in 2025 from $0.72 in 2024.
Oportun Financial Corporation’s (OPRT - Free Report) shares have soared 80.7% this year, significantly outperforming the Zacks Finance sector. Additionally, the stock has performed extremely well compared with its close peers — Enova International, Inc. (ENVA - Free Report) and Regional Management Corp. (RM - Free Report) .
OPRT YTD Price Performance
Image Source: Zacks Investment Research
At present, tariff-related concerns and escalating geopolitical tensions pose major risks. Let us figure out whether OPRT stock can maintain its ongoing momentum.
Factors Supporting Oportun Stock
Solid Loan Growth to Support Revenues: Oportun’s revenue growth has been impressive over the past few years, driven by solid loan growth and higher interest rates. The company’s total revenues and loans receivable at fair value witnessed a 5-year (ended 2024) compound annual growth rate (CAGR) of 10.8% and 8.1%, respectively. Both metrics declined during the first three months of 2025 on a year-over-year basis.
Revenue Trend
Image Source: Zacks Investment Research
Oportun has been driving loan growth through its diverse offerings, including personal loans, secured personal loans and “lending as a service” partnership programs, to expand its client base and presence in several markets. Such offerings enable the company to generate a higher yield on its loan portfolio to boost interest income. Also, the company has been reducing its customer acquisition costs (CAC) through higher organic growth. As of March. 31, 2025, CAC was $139 compared with $138 as of March 31, 2024.
The company has been witnessing rising non-interest income through higher subscriptions and servicing fees. OPRT’s non-interest income reflected a CAGR of 6.4% over the five years ended 2024. Nonetheless, the metric declined during the first quarter of 2025 on a year-over-year basis.
Oportun’s solid loans receivables at fair value, solid fee income performance and product diversification efforts will continue to bolster its top-line growth. Though the company’s loan growth is likely to be subdued this year amid inflationary pressure and higher-for-longer rates, the same is likely to improve once the macroeconomic backdrop turns favorable.
Sales Estimates
Image Source: Zacks Investment Research
Management expects total revenues to be in the range of $237-$242 million in the second quarter of 2025, down from $250.4 million in the prior-year quarter. Also, the metric is expected to be $945-$970 million in 2025 compared with $1 billion in 2024.
Robust Technology Usage: Oportun has been leveraging technology to boost its underwriting standards and offer personalized customer service. The company uses artificial intelligence (AI), particularly machine learning (ML), to use alternative datasets to assess the credit profiles of its clients. This enables it to provide a score to roughly all its clients, including those who have little to no credit history.
This drives enhanced underwriting, leading to lower default risks, and ensures consistent revenue growth while mitigating costs. Further, the lending database allows OPRT to scale up its operations efficiently with minimal infrastructure investment.
Additionally, OPRT offers the Set & Save product, which helps its clients manage their money by analyzing their obligations and expense routines. Thus, the assimilation of sophisticated technology to address its customers’ needs offers Oportun a competitive edge over its traditional counterparts, who often rely on traditional datasets to provide credit scores. This enables OPRT to grow its market share rapidly and achieve efficiency alongside solid underwriting.
Solid Balance Sheet: As of March 31, 2025, Oportun's cash and cash equivalents (including restricted cash) totaled $231 million. It had a debt (including lease liabilities and other liabilities) of $69.9 million as of the same date.
OPRT has diverse sources to fund its loan growth, including cash flows from operations, securitizations, secured borrowings, corporate financing, and structured and whole loan sales.
Thus, a strong liquidity sheet position and a diversified funding profile will continue to support the company’s financials.
Oportun Stock Undervalued
In terms of valuation, Oportun’s price-to-book ratio (P/B) of 0.72X is lower than the industry's 3.48X. Thus, the stock is trading at a discount. This suggests that investors may pay a lower price than the company's expected earnings growth.
P/B Ratio
Image Source: Zacks Investment Research
On the other hand, Enova and Regional Management have P/B ratios of 2.01X and 0.81X, respectively. This reflects that Oportun stock is inexpensive compared with its peers.
Bearish Analyst Sentiments for OPRT Stock
Over the past month, the Zacks Consensus Estimate for Oportun’s 2025 and 2026 earnings of $1.18 and $1.65 per share has been revised 1.7% and 4.6% lower, respectively.
Estimate Revision Trend
Image Source: Zacks Investment Research
The projected figures imply year-over-year earnings growth of 63.9% and 39.2% for 2025 and 2026, respectively.
Management anticipates 2025 adjusted net income to be in the range of $53-$63 million compared with $29.3 million in 2024. Moreover, 2025 adjusted earnings per share are expected to be in the range of $1.10-$1.30, up from 72 cents in 2024. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
To Buy or Not to Buy OPRT Stock?
Oportun is well-positioned for growth, given its solid loan growth, partnership programs and improving fee income. Further, product diversification efforts and the usage of AI and ML are expected to drive growth.
Also, technology-driven lending will likely boost OPRT’s operational efficiency in the long run and support sophisticated credit underwriting. Moreover, a solid balance sheet and diversified funding profile suggest financial stability. Discounted valuation is another positive.
Further, Oportun is utilizing shareholders’ funds efficiently. This is demonstrated by the company’s return on equity (ROE) of 10.12%, which compares favorably with the industry’s 8.06%.
OPRT’s Return on Equity Trend
Image Source: Zacks Investment Research
On the contrary, Enova and Regional Management have ROEs of 21.79% and 10.57%, respectively.
However, a persistent increase in expenses is a headwind. Operating expenses recorded a five-year CAGR of 2.5% (ended 2024) due to higher sales and marketing, technological, and personnel expenses. Last year, the company introduced a plan to reduce expenses by $30 million on an annualized basis. Though operating expenses declined during the first three months of 2025 on a year-over-year basis, overall expenses are expected to be elevated as the company intends to enhance its technology and raise headcount as it expands into different markets.
Expense Trend
Image Source: Zacks Investment Research
Also, the company has been witnessing weak asset quality over the years. Its net charge-offs (NCOs) reflected a CAGR of 19.7% over the five years ended 2024. This has been primarily driven by the higher back book loans. It expects to have a lesser back book impact in 2025. Though the trend reversed during the first quarter of 2025, given a tough operating backdrop, NCOs are likely to remain elevated. Moreover, bearish analyst sentiments for OPRT stock remain a concern as well.
Thus, Oportun stock remains a cautious bet for investors. Those who own it can continue holding the stock for long-term gains.
Image: Shutterstock
Oportun Surges 80.7% YTD: Is It Too Late to Buy OPRT Stock?
Key Takeaways
Oportun Financial Corporation’s (OPRT - Free Report) shares have soared 80.7% this year, significantly outperforming the Zacks Finance sector. Additionally, the stock has performed extremely well compared with its close peers — Enova International, Inc. (ENVA - Free Report) and Regional Management Corp. (RM - Free Report) .
OPRT YTD Price Performance
Image Source: Zacks Investment Research
At present, tariff-related concerns and escalating geopolitical tensions pose major risks. Let us figure out whether OPRT stock can maintain its ongoing momentum.
Factors Supporting Oportun Stock
Solid Loan Growth to Support Revenues: Oportun’s revenue growth has been impressive over the past few years, driven by solid loan growth and higher interest rates. The company’s total revenues and loans receivable at fair value witnessed a 5-year (ended 2024) compound annual growth rate (CAGR) of 10.8% and 8.1%, respectively. Both metrics declined during the first three months of 2025 on a year-over-year basis.
Revenue Trend
Image Source: Zacks Investment Research
Oportun has been driving loan growth through its diverse offerings, including personal loans, secured personal loans and “lending as a service” partnership programs, to expand its client base and presence in several markets. Such offerings enable the company to generate a higher yield on its loan portfolio to boost interest income. Also, the company has been reducing its customer acquisition costs (CAC) through higher organic growth. As of March. 31, 2025, CAC was $139 compared with $138 as of March 31, 2024.
The company has been witnessing rising non-interest income through higher subscriptions and servicing fees. OPRT’s non-interest income reflected a CAGR of 6.4% over the five years ended 2024. Nonetheless, the metric declined during the first quarter of 2025 on a year-over-year basis.
Oportun’s solid loans receivables at fair value, solid fee income performance and product diversification efforts will continue to bolster its top-line growth. Though the company’s loan growth is likely to be subdued this year amid inflationary pressure and higher-for-longer rates, the same is likely to improve once the macroeconomic backdrop turns favorable.
Sales Estimates
Image Source: Zacks Investment Research
Management expects total revenues to be in the range of $237-$242 million in the second quarter of 2025, down from $250.4 million in the prior-year quarter. Also, the metric is expected to be $945-$970 million in 2025 compared with $1 billion in 2024.
Robust Technology Usage: Oportun has been leveraging technology to boost its underwriting standards and offer personalized customer service. The company uses artificial intelligence (AI), particularly machine learning (ML), to use alternative datasets to assess the credit profiles of its clients. This enables it to provide a score to roughly all its clients, including those who have little to no credit history.
This drives enhanced underwriting, leading to lower default risks, and ensures consistent revenue growth while mitigating costs. Further, the lending database allows OPRT to scale up its operations efficiently with minimal infrastructure investment.
Additionally, OPRT offers the Set & Save product, which helps its clients manage their money by analyzing their obligations and expense routines. Thus, the assimilation of sophisticated technology to address its customers’ needs offers Oportun a competitive edge over its traditional counterparts, who often rely on traditional datasets to provide credit scores. This enables OPRT to grow its market share rapidly and achieve efficiency alongside solid underwriting.
Solid Balance Sheet: As of March 31, 2025, Oportun's cash and cash equivalents (including restricted cash) totaled $231 million. It had a debt (including lease liabilities and other liabilities) of $69.9 million as of the same date.
OPRT has diverse sources to fund its loan growth, including cash flows from operations, securitizations, secured borrowings, corporate financing, and structured and whole loan sales.
Thus, a strong liquidity sheet position and a diversified funding profile will continue to support the company’s financials.
Oportun Stock Undervalued
In terms of valuation, Oportun’s price-to-book ratio (P/B) of 0.72X is lower than the industry's 3.48X. Thus, the stock is trading at a discount. This suggests that investors may pay a lower price than the company's expected earnings growth.
P/B Ratio
Image Source: Zacks Investment Research
On the other hand, Enova and Regional Management have P/B ratios of 2.01X and 0.81X, respectively. This reflects that Oportun stock is inexpensive compared with its peers.
Bearish Analyst Sentiments for OPRT Stock
Over the past month, the Zacks Consensus Estimate for Oportun’s 2025 and 2026 earnings of $1.18 and $1.65 per share has been revised 1.7% and 4.6% lower, respectively.
Estimate Revision Trend
Image Source: Zacks Investment Research
The projected figures imply year-over-year earnings growth of 63.9% and 39.2% for 2025 and 2026, respectively.
Management anticipates 2025 adjusted net income to be in the range of $53-$63 million compared with $29.3 million in 2024. Moreover, 2025 adjusted earnings per share are expected to be in the range of $1.10-$1.30, up from 72 cents in 2024. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
To Buy or Not to Buy OPRT Stock?
Oportun is well-positioned for growth, given its solid loan growth, partnership programs and improving fee income. Further, product diversification efforts and the usage of AI and ML are expected to drive growth.
Also, technology-driven lending will likely boost OPRT’s operational efficiency in the long run and support sophisticated credit underwriting. Moreover, a solid balance sheet and diversified funding profile suggest financial stability. Discounted valuation is another positive.
Further, Oportun is utilizing shareholders’ funds efficiently. This is demonstrated by the company’s return on equity (ROE) of 10.12%, which compares favorably with the industry’s 8.06%.
OPRT’s Return on Equity Trend
Image Source: Zacks Investment Research
On the contrary, Enova and Regional Management have ROEs of 21.79% and 10.57%, respectively.
However, a persistent increase in expenses is a headwind. Operating expenses recorded a five-year CAGR of 2.5% (ended 2024) due to higher sales and marketing, technological, and personnel expenses. Last year, the company introduced a plan to reduce expenses by $30 million on an annualized basis. Though operating expenses declined during the first three months of 2025 on a year-over-year basis, overall expenses are expected to be elevated as the company intends to enhance its technology and raise headcount as it expands into different markets.
Expense Trend
Image Source: Zacks Investment Research
Also, the company has been witnessing weak asset quality over the years. Its net charge-offs (NCOs) reflected a CAGR of 19.7% over the five years ended 2024. This has been primarily driven by the higher back book loans. It expects to have a lesser back book impact in 2025. Though the trend reversed during the first quarter of 2025, given a tough operating backdrop, NCOs are likely to remain elevated. Moreover, bearish analyst sentiments for OPRT stock remain a concern as well.
Thus, Oportun stock remains a cautious bet for investors. Those who own it can continue holding the stock for long-term gains.
Currently, OPRT carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.