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OppFi's Adjusted EPS Guidance for 2025 Raised Again: Can it Deliver?
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Key Takeaways
OppFi raised its 2025 adjusted EPS guidance after posting strong quarterly growth and higher profitability.
OPFI saw top-line growth driven by Model 6's predictive power, boosting originations and receivables balances.
OppFi cuts net charge-offs and prepares Model 6.1 rollout to sharpen risk detection and boost volume growth.
OppFi (OPFI - Free Report) lifted its adjusted earnings per share (EPS) for 2025 on the back of strong financial and operational performance. During the recently reported quarter, OPFI registered an adjusted EPS of 46 cents, up 39.1% from the year-ago quarter. This lofty growth boosted management confidence, thus raising its adjusted EPS guidance to $1.54-$1.60 from the preceding quarter’s view of $1.39-$1.44. The anticipation was based on the approximate weighted average diluted share count of 89 million shares.
Augmenting the outlook indicates heightened expectations for future profitability. Multiple compelling metrics influenced management’s decision to raise the guidance. The top line gained 13.5% year over year due to Model 6’s impressive predictive power, resulting in better management of its loan economics, leading to growth in originations and receivables balances. This top-line growth, coupled with prudent expense management, improved adjusted net income by 41.4% from the year-ago quarter.
OPFI’s ability to hit the target largely depends on its ability to manage credit risk leveraging Model 6. During the nine months ending Sept. 30, 2025, the company witnessed a 430 bps or 11.2% year-over-year decline in net charge-offs as a percentage of total revenues, indicating a substantial reduction in credit risk and losses. The company’s ability to deliver this ambitious guidance depends on its ability to scale sustainably, leveraging its credit risk mitigation technology to accommodate higher origination volumes without credit degradation.
Given the absence of major macroeconomic headwinds, we expect the company to achieve what the management aspired to. The management disclosed the rollout of Model 6.1 refit during the fourth quarter of 2025, a substantial improvement designed to identify riskier borrower populations better while improving volume exponentially. It further cements management’s conviction in the consistent outperformance and risk management required to hit the targeted range of $1.54-$1.60.
OPFI’s Price Performance, Valuation & Estimates
The stock has increased 28.4% in the year-to-date period, significantly outperforming its competitors, Corpay (CPAY - Free Report) , Global Payments (GPN - Free Report) and the industry as a whole. The industry has declined 7.7%. Corpay and Global Payments have dropped 17.5% and 33.2%, respectively.
YTD Share Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, OPFI trades at a forward price-to-earnings ratio of 5.82, lower than the industry’s 21.13. Corpay trades at 11.45 and Global Payments hovers at 5.48.
P/E - F12M
Image Source: Zacks Investment Research
OppFi and Global Payments have a Value Score of A, while Corpay has a Value Score of B.
The Zacks Consensus Estimate for OppFi’s earnings for 2025 has increased 10.6% over the past 30 days.
Image: Bigstock
OppFi's Adjusted EPS Guidance for 2025 Raised Again: Can it Deliver?
Key Takeaways
OppFi (OPFI - Free Report) lifted its adjusted earnings per share (EPS) for 2025 on the back of strong financial and operational performance. During the recently reported quarter, OPFI registered an adjusted EPS of 46 cents, up 39.1% from the year-ago quarter. This lofty growth boosted management confidence, thus raising its adjusted EPS guidance to $1.54-$1.60 from the preceding quarter’s view of $1.39-$1.44. The anticipation was based on the approximate weighted average diluted share count of 89 million shares.
Augmenting the outlook indicates heightened expectations for future profitability. Multiple compelling metrics influenced management’s decision to raise the guidance. The top line gained 13.5% year over year due to Model 6’s impressive predictive power, resulting in better management of its loan economics, leading to growth in originations and receivables balances. This top-line growth, coupled with prudent expense management, improved adjusted net income by 41.4% from the year-ago quarter.
OPFI’s ability to hit the target largely depends on its ability to manage credit risk leveraging Model 6. During the nine months ending Sept. 30, 2025, the company witnessed a 430 bps or 11.2% year-over-year decline in net charge-offs as a percentage of total revenues, indicating a substantial reduction in credit risk and losses. The company’s ability to deliver this ambitious guidance depends on its ability to scale sustainably, leveraging its credit risk mitigation technology to accommodate higher origination volumes without credit degradation.
Given the absence of major macroeconomic headwinds, we expect the company to achieve what the management aspired to. The management disclosed the rollout of Model 6.1 refit during the fourth quarter of 2025, a substantial improvement designed to identify riskier borrower populations better while improving volume exponentially. It further cements management’s conviction in the consistent outperformance and risk management required to hit the targeted range of $1.54-$1.60.
OPFI’s Price Performance, Valuation & Estimates
The stock has increased 28.4% in the year-to-date period, significantly outperforming its competitors, Corpay (CPAY - Free Report) , Global Payments (GPN - Free Report) and the industry as a whole. The industry has declined 7.7%. Corpay and Global Payments have dropped 17.5% and 33.2%, respectively.
YTD Share Price Performance
From a valuation standpoint, OPFI trades at a forward price-to-earnings ratio of 5.82, lower than the industry’s 21.13. Corpay trades at 11.45 and Global Payments hovers at 5.48.
P/E - F12M
OppFi and Global Payments have a Value Score of A, while Corpay has a Value Score of B.
The Zacks Consensus Estimate for OppFi’s earnings for 2025 has increased 10.6% 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.