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OppFi Rallies 33% YTD: Should You Still Purchase the Stock?
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Key Takeaways
OppFi shares have jumped 32.5% YTD, outpacing its industry and market benchmarks.
Model 6 boosted auto approvals and cut expenses, driving a 136.9% upsurge in net income.
OppFi raised the 2025 earnings guidance each quarter, reinforcing optimism in its outlook.
OppFi Inc. (OPFI - Free Report) shares have gained 32.5% in the year-to-date period. It has surpassed the 11.6% decline of its industry and 19.8% growth of the Zacks S&P 500 Composite.
OPFI has outperformed its industry peers, Cantaloupe’s (CTLP - Free Report) 11.2% rise and Fidelity National Information Services’ (FIS - Free Report) 17.4% dip.
YTD Share Price Performance
Image Source: Zacks Investment Research
The recent performance also shows that OppFi has outperformed Cantaloupe and Fidelity National Information Services. Over the past month, OPFI has gained 2.2%, beating Cantaloupe’s and Fidelity National Information Services’ 0.2% and 1.5% rallies, respectively.
Let us analyze further to conclude whether this stock is fit for an investor’s portfolio.
OppFi’s Operational Efficiency & Risk Management
OPFI utilized its proprietary AI and machine learning (ML)-based Model 6 to improve its auto approval rate to 79.1% in the third quarter of 2025 from the year-ago quarter’s 76.8%. This significant increment contributed toward the 500-basis-point (bps) year-over-year decline in total expenses as a percentage of revenues, which, when combined with a 13.5% year-over-year increase in the top line, led to a whopping 136.9% boost in net income. This disproportionate increase in revenues and profitability highlights OppFi’s operational efficiency.
Aside from strengthening the core business, Model 6 lowered the net charge-off as a percentage of total revenues by 430 basis points year over year for the nine months ending Sept. 30, 2025. Similarly, net charge-off as a percentage of average receivables decreased by 480 basis points for the same period. The significant decline in these metrics indicates improved loan quality, emphasizing OPFI’s success in risk mitigation.
Additionally, the company plans to introduce Model 6.1 refit in the upcoming quarters, which is expected to enhance its risk-mitigation capabilities.
OPFI Raises Guidance, Bolsters Investor Morale
OppFi has maintained its streak of hiking guidance for the full year in the third quarter of 2025 as well. In the fourth quarter of 2024, the company disclosed that it expects adjusted net income of $95-$97 million and an adjusted EPS of $1.06-$1.07 for 2025. Following that, it raised the outlook for adjusted net income to $106-$113 million, $125-$130 million and $137-$142 million in the first, second and third quarters of 2025, respectively.
On a similar note, the guidance for adjusted EPS was increased to $1.18-$1.26 in the first quarter and $1.39-$1.44 and $1.54-$1.6 in the second and third quarters of 2025, respectively. This trend reveals an obvious optimism among investors in the company’s profitability, which is a major green flag for investors.
OppFi Trades Discounted to the Industry
OPFI is priced at 5.99 times forward 12-month earnings per share, substantially below the industry average of 20.1 times. On a similar note, the company’s trailing 12-month EV-to-EBITDA ratio is 5.03 times, standing below the industry average of 10.94 times. These metrics validate OPFI’s undervaluation, appealing to value-based investors.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
OPFI’s Promising Top & Bottom-Line Outlook
The Zacks Consensus Estimate for OPFI’s 2025 revenues is set at $598 million, indicating 13.6% year-over-year growth. For 2026, the top line is expected to grow 9.1%. The consensus estimate for OPFI’s 2025 earnings per share stands at $1.57, hinting at a 65.3% year-over-year increment. For 2026, the estimate is pegged at 8.6% growth.
Over the past 60 days, two EPS estimates for both 2025 and 2026 have been revised upward without downward adjustment. In the same period, the Zacks Consensus Estimate for 2025 earnings has risen 10.6%, and the estimate for 2026 has gained 15.5%, highlighting analyst confidence.
OppFi: A Must-Buy Stock
OPFI’s AI and ML-based Model 6 is the backbone behind improving the company’s core operations and lowering credit risk. These technological advancements led management to make consistent improvements in the profitability outlook for the full year across the past few quarters, boosting investors' morale. Moreover, the stock is fundamentally strong and undervalued when compared with its industry.
Banking on these factors, we recommend that investors add this stock to their portfolio to draw in significant capital gains in the long run.
Image: Bigstock
OppFi Rallies 33% YTD: Should You Still Purchase the Stock?
Key Takeaways
OppFi Inc. (OPFI - Free Report) shares have gained 32.5% in the year-to-date period. It has surpassed the 11.6% decline of its industry and 19.8% growth of the Zacks S&P 500 Composite.
OPFI has outperformed its industry peers, Cantaloupe’s (CTLP - Free Report) 11.2% rise and Fidelity National Information Services’ (FIS - Free Report) 17.4% dip.
YTD Share Price Performance
The recent performance also shows that OppFi has outperformed Cantaloupe and Fidelity National Information Services. Over the past month, OPFI has gained 2.2%, beating Cantaloupe’s and Fidelity National Information Services’ 0.2% and 1.5% rallies, respectively.
Let us analyze further to conclude whether this stock is fit for an investor’s portfolio.
OppFi’s Operational Efficiency & Risk Management
OPFI utilized its proprietary AI and machine learning (ML)-based Model 6 to improve its auto approval rate to 79.1% in the third quarter of 2025 from the year-ago quarter’s 76.8%. This significant increment contributed toward the 500-basis-point (bps) year-over-year decline in total expenses as a percentage of revenues, which, when combined with a 13.5% year-over-year increase in the top line, led to a whopping 136.9% boost in net income. This disproportionate increase in revenues and profitability highlights OppFi’s operational efficiency.
Aside from strengthening the core business, Model 6 lowered the net charge-off as a percentage of total revenues by 430 basis points year over year for the nine months ending Sept. 30, 2025. Similarly, net charge-off as a percentage of average receivables decreased by 480 basis points for the same period. The significant decline in these metrics indicates improved loan quality, emphasizing OPFI’s success in risk mitigation.
Additionally, the company plans to introduce Model 6.1 refit in the upcoming quarters, which is expected to enhance its risk-mitigation capabilities.
OPFI Raises Guidance, Bolsters Investor Morale
OppFi has maintained its streak of hiking guidance for the full year in the third quarter of 2025 as well. In the fourth quarter of 2024, the company disclosed that it expects adjusted net income of $95-$97 million and an adjusted EPS of $1.06-$1.07 for 2025. Following that, it raised the outlook for adjusted net income to $106-$113 million, $125-$130 million and $137-$142 million in the first, second and third quarters of 2025, respectively.
On a similar note, the guidance for adjusted EPS was increased to $1.18-$1.26 in the first quarter and $1.39-$1.44 and $1.54-$1.6 in the second and third quarters of 2025, respectively. This trend reveals an obvious optimism among investors in the company’s profitability, which is a major green flag for investors.
OppFi Trades Discounted to the Industry
OPFI is priced at 5.99 times forward 12-month earnings per share, substantially below the industry average of 20.1 times. On a similar note, the company’s trailing 12-month EV-to-EBITDA ratio is 5.03 times, standing below the industry average of 10.94 times. These metrics validate OPFI’s undervaluation, appealing to value-based investors.
OPFI’s Promising Top & Bottom-Line Outlook
The Zacks Consensus Estimate for OPFI’s 2025 revenues is set at $598 million, indicating 13.6% year-over-year growth. For 2026, the top line is expected to grow 9.1%. The consensus estimate for OPFI’s 2025 earnings per share stands at $1.57, hinting at a 65.3% year-over-year increment. For 2026, the estimate is pegged at 8.6% growth.
Over the past 60 days, two EPS estimates for both 2025 and 2026 have been revised upward without downward adjustment. In the same period, the Zacks Consensus Estimate for 2025 earnings has risen 10.6%, and the estimate for 2026 has gained 15.5%, highlighting analyst confidence.
OppFi: A Must-Buy Stock
OPFI’s AI and ML-based Model 6 is the backbone behind improving the company’s core operations and lowering credit risk. These technological advancements led management to make consistent improvements in the profitability outlook for the full year across the past few quarters, boosting investors' morale. Moreover, the stock is fundamentally strong and undervalued when compared with its industry.
Banking on these factors, we recommend that investors add this stock to their portfolio to draw in significant capital gains in the long run.
OPFI flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.