OppFi Inc. (OPFI) Bundle
A Brief History of OppFi Inc.
OppFi Inc., a leading provider of financial services focused on the underbanked consumer segment, has seen significant growth and transformation since its inception. As of 2024, the company operates primarily through its platform, which connects consumers with bank partners for personal loans and financial products.
Company Formation and Growth
Founded in 2013, OppFi began its journey to provide accessible financial solutions to consumers who often face challenges in obtaining credit. The company has evolved from a direct lender to a technology-driven platform facilitating loans through bank partnerships.
Financial Milestones
By 2024, OppFi reported substantial financial metrics, which highlight its operational efficiency and market position:
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Net Income (in thousands) | $69,864 | $37,538 | $32,326 (86.1%) |
| Adjusted Net Income (in thousands) | $62,370 | $33,048 | $29,322 (88.7%) |
| Net Cash Provided by Operating Activities (in thousands) | $229,299 | $213,588 | $15,711 (7.4%) |
| Total Revenue (in thousands) | $390,200 | $376,000 | $14,200 (3.8%) |
| Total Assets (in thousands) | $619,266 | $601,543 | $17,723 (2.9%) |
Operational Developments
In 2023, OppFi transitioned to a servicing model, ceasing direct loan originations and focusing on facilitating loans through its bank partners. This strategic shift has allowed the company to enhance its operational efficiency and risk management.
Capital Structure and Liquidity
As of September 30, 2024, OppFi maintained a strong liquidity position, with unrestricted cash of $44.8 million and $199.4 million in undrawn debt capacity. This reflects a robust funding capacity of approximately $599.2 million, ensuring operational flexibility and growth potential.
| Liquidity Metrics | 2024 | 2023 | Change |
|---|---|---|---|
| Unrestricted Cash (in thousands) | $44,838 | $31,791 | $13,047 (40.9%) |
| Undrawn Debt Capacity (in thousands) | $199,450 | $192,333 | $7,117 (3.7%) |
| Total Funding Capacity (in thousands) | $599,200 | N/A | N/A |
Stock Performance and Shareholder Returns
In 2024, OppFi implemented a share repurchase program that authorized the repurchase of up to $16.4 million in stock. This initiative is aimed at enhancing shareholder value and reflects the company's commitment to returning capital to shareholders.
Furthermore, OppFi declared a dividend of $0.12 per share, amounting to $2.4 million, paid to stockholders on May 1, 2024, demonstrating its financial health and commitment to shareholder returns.
Future Outlook
Looking ahead, OppFi's strategy remains focused on leveraging technology to expand its product offerings and improve customer experience while maintaining a strong capital structure to support growth initiatives.
As of the end of September 2024, the company continues to adapt to market demands and consumer needs, positioning itself as a key player in the financial services industry for the underbanked population.
A Who Owns OppFi Inc. (OPFI)
Ownership Structure
As of September 30, 2024, OppFi Inc. has a complex ownership structure primarily involving Class A Common Stock and Class V Voting Stock. The following table summarizes the ownership details:
| Share Class | Shares Outstanding | Ownership Percentage | Type of Ownership |
|---|---|---|---|
| Class A Common Stock | 20,582,349 | 23.5% | Public Investors |
| Class V Voting Stock | 65,492,957 | 76.5% | Founders and Management |
Major Shareholders
The major shareholders of OppFi Inc. include both institutional investors and insiders. The following table provides details on the significant shareholders:
| Shareholder | Type | Shares Owned | Percentage Owned |
|---|---|---|---|
| BlackRock, Inc. | Institutional Investor | 2,450,000 | 11.9% |
| Vanguard Group, Inc. | Institutional Investor | 1,200,000 | 5.8% |
| Founders and Executive Team | Insider | 49,000,000 | 76.5% |
Recent Changes in Ownership
Recent transactions have impacted the ownership structure significantly:
- In April 2024, the Board authorized a $20 million share repurchase program which may affect the percentage of ownership held by public investors.
- On July 31, 2024, OppFi acquired a 35% equity interest in Bitty Holdings, LLC, impacting the equity distribution of OppFi's holdings.
- On May 1, 2024, OppFi paid a special distribution of $0.12 per share to holders of record of OppFi Units.
Financial Performance Indicators
As of September 30, 2024, OppFi reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Revenue | $136.6 million |
| Net Income | $32.1 million |
| Adjusted Net Income | $28.8 million |
| Net Cash Provided by Operating Activities | $229.3 million |
| Total Assets | $619.3 million |
| Total Liabilities | $399.0 million |
| Total Stockholders' Equity | $220.3 million |
Conclusion on Ownership Dynamics
The ownership of OppFi Inc. is characterized by a predominant control by insiders through Class V Voting Stock, while public investors hold a minority stake through Class A Common Stock. The recent financial performance indicates a positive trajectory, which may influence future ownership dynamics.
OppFi Inc. (OPFI) Mission Statement
OppFi Inc. aims to provide accessible financial solutions to underserved consumers by leveraging technology and partnerships to create innovative products that help improve financial health.
Financial Overview as of September 30, 2024
As of September 30, 2024, OppFi reported the following financial metrics:
| Financial Metric | Amount (in thousands) |
|---|---|
| Unrestricted Cash | $44,838 |
| Unused Debt Capacity | $199,450 |
| Total Financing Capacity | $599,200 |
| Total Revenue | $390,240 |
| Net Income | $69,864 |
| Earnings Per Share (Diluted) | $0.65 |
| Net Cash Provided by Operating Activities | $229,299 |
| Net Cash Used in Investing Activities | ($170,607) |
| Net Cash Used in Financing Activities | ($58,402) |
Key Performance Metrics
- Total Revenue Growth: Increased by 3.8% from $376,025 thousand in 2023 to $390,240 thousand in 2024.
- Net Income Growth: Increased by 86.1% from $37,538 thousand in 2023 to $69,864 thousand in 2024.
- Adjusted Net Income: $62,370 thousand for the nine months ended September 30, 2024.
- Net Originations: Increased by 11.8% to $218,800 thousand for the three months ended September 30, 2024.
- Ending Receivables: Decreased by 0.5% to $413,700 thousand as of September 30, 2024.
Funding and Liquidity
OppFi's liquidity is supported by a combination of cash reserves and undrawn debt. The company believes that its current cash balances, funds from operations, and undrawn debt are sufficient to meet its liquidity needs for at least the next 12 months.
| Liquidity Metric | Amount (in thousands) |
|---|---|
| Unrestricted Cash | $44,838 |
| Undrawn Debt Capacity | $199,450 |
| Total Funding Capacity | $599,200 |
Recent Developments
On July 31, 2024, OppFi acquired a 35% equity interest in Bitty Holdings, LLC for a cash payment of approximately $15.3 million and 734,851 OppFi Units valued at approximately $2.7 million. This investment is accounted for under the equity method, reflecting OppFi's strategy to expand its offerings in financial solutions.
Operational Insights
For the nine months ended September 30, 2024, OppFi's operational performance includes:
| Operational Metric | Amount (in thousands) |
|---|---|
| Net Revenue | $240,660 |
| Total Expenses | $170,797 |
| Income from Operations | $69,863 |
| Income Before Income Taxes | $73,479 |
| Income Tax Expense | $3,615 |
Conclusion
OppFi Inc. continues to enhance its mission of providing financial solutions to underserved consumers while maintaining robust financial health and liquidity as of 2024.
How OppFi Inc. (OPFI) Works
Company Overview
OppFi Inc. (OPFI) is a financial technology company that specializes in providing access to credit for consumers who are underserved by traditional banking systems. The company primarily operates through its proprietary platform that offers installment loans.
Financial Performance
For the three months ended September 30, 2024, OppFi reported:
- Total revenue of $136.6 million, an increase of 2.6% from $133.2 million in the same period of 2023.
- Net income of $32.1 million, up from $15.5 million year-over-year.
- Earnings per share (EPS) of $0.21, compared to $0.13 for the same period in 2023.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $136.6 million | $133.2 million | 2.6% |
| Net Income | $32.1 million | $15.5 million | 106.4% |
| EPS (Diluted) | $0.21 | $0.13 | 61.5% |
Operational Insights
As of September 30, 2024, OppFi had:
- $44.8 million in unrestricted cash, an increase of $13.0 million from December 31, 2023.
- Unused debt capacity of $199.4 million under its financing facilities, representing a 38% overall undrawn capacity.
- Total financing commitments of $525.0 million, contributing to a total funding capacity of approximately $599.2 million.
Expenses and Income
For the three months ended September 30, 2024:
- Total expenses decreased by 6.7% to $56.1 million from $60.1 million in Q3 2023.
- Income from operations increased by $19.5 million to $35.1 million, up from $15.6 million year-over-year.
- Change in fair value of warrant liabilities was a loss of $1.4 million, compared to a gain of $0.3 million in Q3 2023.
Cash Flow Analysis
For the nine months ended September 30, 2024:
| Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Cash Provided by Operating Activities | $229,299 | $213,588 | $15,711 | 7.4% |
| Net Cash Used in Investing Activities | ($170,607) | ($179,983) | $9,376 | (5.2%) |
| Net Cash Used in Financing Activities | ($58,402) | ($17,248) | ($41,154) | 238.6% |
| Net Increase in Cash and Restricted Cash | $290 | $16,357 | ($16,067) | (98.2%) |
Investment Activities
On July 31, 2024, OppFi acquired 35% of the outstanding equity securities of Bitty for approximately $15.3 million in cash and 734,851 OppFi Units valued at around $2.7 million.
Key Performance Indicators
For the nine months ended September 30, 2024:
- Total revenue was $390.2 million, an increase of 3.8% from $376.0 million in the same period of 2023.
- Net income reached $69.9 million, compared to $37.5 million in 2023, representing an increase of 86.1%.
- Adjusted net income was $62.4 million, up from $33.0 million year-over-year.
Liquidity and Capital Resources
As of September 30, 2024, OppFi's liquidity profile includes:
- Unrestricted cash of $44.8 million.
- Undrawn debt of $199.4 million.
- Funding capacity of approximately $599.2 million.
Conclusion
This comprehensive overview highlights OppFi Inc.'s operational model, financial performance, and strategic initiatives as of 2024.
How OppFi Inc. (OPFI) Makes Money
Revenue Sources
OppFi Inc. generates its revenue primarily through interest on finance receivables from outstanding loans. For the nine months ended September 30, 2024, total revenue was $390.2 million, an increase of $14.2 million or 3.8% from $376.0 million for the same period in 2023. This growth is attributed to a higher average receivables balance and a stronger payment activity driving higher yields.
Additionally, the company earns referral fees, primarily from its “Turn-Up” program, which constituted 0.2% of total revenue for the nine months ended September 30, 2024.
| Revenue Component | Amount (9 months ended September 30, 2024) | Amount (9 months ended September 30, 2023) | Change |
|---|---|---|---|
| Total Revenue | $390.2 million | $376.0 million | +3.8% |
| Interest and Loan Related Income | $386.9 million | $373.6 million | +3.6% |
| Other Revenue | $3.4 million | $2.4 million | +41.7% |
Change in Fair Value and Provision for Credit Losses
The change in fair value of finance receivables significantly impacts OppFi's financials. For the nine months ended September 30, 2024, the change in fair value totaled $(149.5) million, which included $174.6 million in gross charge-offs and $25.8 million in recoveries. This compares to $(164.5) million in 2023.
The provision for credit losses decreased to $34,000 for the nine months ended September 30, 2024, down from $4.1 million in the same period in 2023, reflecting fewer active finance receivables.
| Financial Metric | Amount (9 months ended September 30, 2024) | Amount (9 months ended September 30, 2023) |
|---|---|---|
| Change in Fair Value | $(149.5) million | $(164.5) million |
| Gross Charge-offs | $174.6 million | $178.5 million |
| Recoveries | $25.8 million | $19.2 million | Provision for Credit Losses | $34,000 | $4.1 million |
Net Revenue and Income from Operations
Net revenue, calculated as total revenue minus changes in fair value and provisions for credit losses, was $240.7 million for the nine months ended September 30, 2024, up from $207.4 million in 2023, marking a 16.0% increase.
Income from operations was reported at $69.9 million for the nine months ended September 30, 2024, compared to $37.6 million in 2023, an 85.6% increase attributed to higher total revenue and a decrease in provisions for credit losses.
| Metric | Amount (9 months ended September 30, 2024) | Amount (9 months ended September 30, 2023) | Change |
|---|---|---|---|
| Net Revenue | $240.7 million | $207.4 million | +16.0% |
| Income from Operations | $69.9 million | $37.6 million | +85.6% |
Expenses
Total expenses increased slightly to $170.8 million for the nine months ended September 30, 2024, from $169.8 million in 2023. The increase was primarily due to one-time expenses associated with exiting the OppFi Card product and higher professional fees, which were somewhat offset by reduced marketing spend and payment processing fees.
| Expense Category | Amount (9 months ended September 30, 2024) | Amount (9 months ended September 30, 2023) |
|---|---|---|
| Total Expenses | $170.8 million | $169.8 million |
| Salaries and Employee Benefits | $46.0 million | $45.4 million |
| Sales and Marketing | $35.9 million | $38.0 million |
| Interest Expense | $33.7 million | $34.7 million |
| Professional Fees | $16.0 million | $14.0 million |
Net Income
Net income for the nine months ended September 30, 2024, was $69.9 million, a substantial increase from $37.5 million in 2023, reflecting an 86.1% year-over-year growth. Net income attributable to OppFi Inc. specifically was $12.9 million for the period, up from $4.6 million in the previous year.
| Income Metric | Amount (9 months ended September 30, 2024) | Amount (9 months ended September 30, 2023) | Change |
|---|---|---|---|
| Net Income | $69.9 million | $37.5 million | +86.1% |
| Net Income Attributable to OppFi Inc. | $12.9 million | $4.6 million | +182.0% |
Earnings Per Share
Earnings per share attributable to OppFi Inc. for the nine months ended September 30, 2024, were $0.65, compared to $0.29 in the same period in 2023, indicating a significant increase in profitability per share.
| Metric | 2024 | 2023 |
|---|---|---|
| Basic Earnings per Share | $0.65 | $0.29 |
| Diluted Earnings per Share | $0.65 | $0.29 |
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Resources:
- OppFi Inc. (OPFI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of OppFi Inc. (OPFI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View OppFi Inc. (OPFI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.