Oportun Financial Corporation (OPRT) Bundle
A Brief History of Oportun Financial Corporation (OPRT)
Foundation and Early Development
Oportun Financial Corporation, founded in 2005 by Oscar Munoz, started with a mission to provide affordable personal loans to individuals with limited or no credit history. Initially established in San Carlos, California, it aimed at addressing the financial needs of the underserved population.
Growth and Expansion
In 2012, Oportun received an investment of $40 million from QED Investors and Wellington Management, facilitating its expansion into additional states. By 2015, the company operated over 300 locations, providing over $1 billion in loans.
Initial Public Offering (IPO)
Oportun conducted its IPO on November 14, 2019, trading under the ticker symbol OPRT on the NASDAQ. The IPO was priced at $10 per share, raising approximately $70 million in gross proceeds.
Financial Performance
According to the 2022 annual report, Oportun's total revenue was approximately $440 million, representing a year-over-year growth of 15%. The net income for the same period was reported at $20 million.
Customer Base and Impact
As of 2023, Oportun has served over 1.5 million customers, providing more than $10 billion in loans. The average loan amount issued is $3,500, with an average repayment term of 24 months.
Partnerships and Collaborations
In 2021, Oportun partnered with Bank of America to offer a unique small dollar loan program aimed at enhancing financial access for low-income individuals. This partnership aims to leverage both companies' strengths to improve customer experiences.
Social Responsibility Initiatives
Oportun is committed to social responsibility, offering free financial literacy programs to its customers. In 2022, the company reported hosting over 300 workshops, reaching approximately 5,000 participants.
| Year | Funding Amount | Number of Locations | Customer Loans Issued | Annual Revenue | Net Income |
|---|---|---|---|---|---|
| 2005 | N/A | 1 | $0 | $0 | $0 |
| 2012 | $40 million | 100 | $400 million | N/A | N/A |
| 2015 | N/A | 300 | $1 billion | N/A | N/A |
| 2019 | $70 million | 500 | $2 billion | N/A | N/A |
| 2022 | N/A | 600 | $2.5 billion | $440 million | $20 million |
| 2023 | N/A | 650 | $3 billion | N/A | N/A |
Recent Developments
In 2023, Oportun announced new initiatives focused on enhancing digital lending practices, aiming to increase its online loan origination by 30% by the end of the year.
Future Outlook
The company plans to expand its footprint into additional states by 2024, targeting a 15% growth in its loan portfolio year-over-year.
A Who Owns Oportun Financial Corporation (OPRT)
Ownership Structure
Oportun Financial Corporation (NASDAQ: OPRT) has a diverse ownership structure characterized by institutional investors, retail investors, and company insiders. As of the latest data, the breakdown of ownership is as follows:
| Owner Type | Percentage Owned |
|---|---|
| Institutional Investors | 73.12% |
| Insiders | 6.45% |
| Retail Investors | 20.43% |
Major Institutional Shareholders
The following are the major institutional shareholders of Oportun Financial Corporation:
| Institution | Shares Held | Percentage of Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 2,913,063 | 17.11% |
| BlackRock, Inc. | 2,490,680 | 14.51% |
| Dimensional Fund Advisors LP | 2,174,355 | 12.91% |
| Renaissance Technologies LLC | 1,012,500 | 5.98% |
| State Street Corporation | 1,086,873 | 6.44% |
Insider Ownership
Insider ownership consists of key executives and board members who hold shares in the company. The following details outline the major insider owners:
| Name | Title | Shares Owned | Percentage of Ownership |
|---|---|---|---|
| Luis P. P. C. de la Calle | CEO | 350,000 | 2.08% |
| Alfredo J. Ochoa | Chairman | 200,000 | 1.19% |
| Mary C. O’Connor | CFO | 100,000 | 0.59% |
Recent Stock Performance
As of October 2023, Oportun Financial Corporation’s stock performance is detailed below:
| Date | Closing Price (USD) | Market Capitalization (USD) |
|---|---|---|
| October 1, 2023 | 16.50 | 765 million |
| October 15, 2023 | 15.85 | 739 million |
| October 31, 2023 | 14.75 | 696 million |
Financial Performance Overview
The following financial metrics illustrate Oportun Financial Corporation's recent performance:
| Fiscal Year | Total Revenue (USD) | Net Income (USD) |
|---|---|---|
| 2022 | 529 million | 25 million |
| 2023 (Projected) | 550 million | 30 million |
Recent Developments
Recent announcements indicate movements in ownership and partnerships:
- In 2023, Oportun partnered with various fintech firms to expand its offerings.
- The company launched new products aimed at enhancing financial literacy.
- Oportun's board approved a share buyback program, with an allocation of $50 million.
Oportun Financial Corporation (OPRT) Mission Statement
Company Overview
Oportun Financial Corporation (OPRT) focuses on providing accessible and affordable financial products to underserved consumers in the United States. As of 2023, Oportun reports a customer base exceeding 1.8 million individuals.
Mission Statement
The mission of Oportun is to offer a broad range of financial services that help improve the financial lives of their customers by providing easy access to credit and financial education.
Core Values
- Empowerment: Focused on empowering consumers through financial access.
- Integrity: Committed to maintaining transparency in every transaction.
- Education: Prioritizes financial literacy among its clientele.
- Community: Works to foster community development through responsible lending.
Financial Performance
In 2022, Oportun reported a total revenue of $559 million. The net income for the year was approximately $36 million, demonstrating a significant improvement in profitability.
Portfolio Overview
As of the end of Q3 2023, Oportun's loan portfolio totaled approximately $1.2 billion, with a focus on personal installment loans ranging from $300 to $10,000 per customer.
| Year | Total Revenue ($ million) | Net Income ($ million) | Loan Portfolio ($ billion) |
|---|---|---|---|
| 2020 | 392 | 14 | 0.8 |
| 2021 | 469 | 18 | 1.0 |
| 2022 | 559 | 36 | 1.2 |
| 2023 (Q3) | 400 | 30 (estimated) | 1.2 |
Customer Base and Demographics
Oportun's customer demographics reveal a significant focus on Hispanic communities. Approximately 80% of the customers identify as Hispanic, reflecting the company's commitment to serving diverse populations.
Technological Integration
Oportun leverages technology to streamline the loan application process, with over 91% of applications being completed online. The real-time underwriting process allows for immediate decisions in most cases.
Community Impact
Oportun has made notable contributions to community development, with over $5 billion disbursed in loans since inception in 2006. This has positively affected the financial stability of its customer base.
Future Goals
- Expand product offerings to include more financial literacy programs.
- Increase loan offerings to $2 billion by 2025.
- Enhance online platform for a better customer experience.
- Foster partnerships with community organizations for outreach.
How Oportun Financial Corporation (OPRT) Works
Business Model
Business Model
Oportun Financial Corporation (OPRT) operates primarily in the consumer finance sector, specializing in providing accessible and affordable personal loans to underserved borrowers. The company leverages technology to offer loans through various channels, including online and in-store. As of December 31, 2022, Oportun had originated over $9 billion in loans since its inception.
Loan Products
Oportun offers a range of personal loan products tailored to meet the needs of its clients. The typical loans range from $300 to $10,000 with repayment terms of up to 48 months. The average loan amount issued is around $3,300.
Target Market
The company primarily targets individuals with limited access to credit, including those with no credit history. Approximately 80% of Oportun’s customers fall under the low-to-moderate income category. In 2021, about 60% of the borrowers had a credit score below 600.
Operational Locations
As of September 30, 2023, Oportun had over 300 retail locations across 12 states, including California, Texas, and Nevada. The company is expanding its online platform to reach a broader audience.
Financial Performance
| Metric | Q2 2023 | Q2 2022 |
|---|---|---|
| Revenue | $157 million | $136 million |
| Net Income | $5 million | $10 million |
| Loan Origination Volume | $470 million | $389 million |
| Delinquency Rate | 5.2% | 4.9% |
| Return on Assets (ROA) | 1.1% | 1.6% |
Funding Sources
Oportun funds its operations through a combination of equity and debt. As of September 2023, the company's total debt was approximately $940 million, while its equity stood at around $450 million. The funding helps Oportun in loan origination and expansion efforts.
Technology and Innovation
The company uses data-driven analytics to evaluate creditworthiness, allowing it to provide loans efficiently. Its proprietary technology platform facilitates quicker application processing, resulting in an average loan approval time of less than 10 minutes.
Customer Experience
Oportun aims to enhance customer experience through a simplified application process available both online and in physical locations. The company reports over 90% customer satisfaction ratings based on a 2022 survey.
Social Responsibility
Oportun is committed to social impact initiatives, focusing on financial education and responsible borrowing. The company has pledged $10 million towards community outreach programs aimed at improving financial literacy since 2021.
How Oportun Financial Corporation (OPRT) Makes Money
Loan Products
Oportun Financial Corporation primarily generates revenue through the origination of personal loans. The company offers unsecured installment loans, typically ranging from $300 to $10,000. In 2022, Oportun reported a total loan origination of approximately $1.2 billion.
Interest Income
Oportun's main source of revenue is the interest earned on personal loans. The company charges an annual percentage rate (APR) that generally ranges from 18% to 35% depending on the borrower's creditworthiness and loan terms. In the second quarter of 2023, the interest income was reported at $152 million.
Fee Income
In addition to interest income, Oportun also earns fee income from various sources. This includes origination fees, late fees, and other miscellaneous charges that can range up to 10% of the loan amount. For the fiscal year 2022, the total fee income was approximately $50 million.
Customer Base and Growth
Oportun targets a unique customer segment, focusing on individuals who may not have access to traditional credit. As of the last reporting period, Oportun had served over 1.4 million customers throughout its operations.
Operational Efficiency
Oportun aims to maintain a low cost of operations to enhance profitability. The company reported a streamlined operational efficiency ratio of approximately 40% in recent financial reports, which indicates its ability to manage operational costs efficiently while maximizing revenue.
Financial Performance Metrics
The following table outlines key financial metrics for Oportun Financial Corporation for the fiscal year 2022:
| Metric | Amount |
|---|---|
| Total Revenue | $640 million |
| Net Income | $30 million |
| Loan Originations | $1.2 billion |
| Interest Income | $590 million |
| Fee Income | $50 million |
| Customer Count | 1.4 million |
Partnerships and Collaborations
Oportun also engages in partnerships with various organizations to expand its customer reach. Collaborations with fintech platforms and community organizations help in acquiring new customers at lower costs. In 2023, partnerships contributed to a growth of 15% in new loan originations.
Investment in Technology
Oportun has invested in technology to enhance its underwriting processes, enabling faster loan approvals and improved customer experience. In recent years, the technology expenditure was recorded at approximately $25 million annually, aimed at optimizing operational capabilities.
Market Position and Competitiveness
Oportun holds a significant share in the personal loan market, particularly in the underserved community segments. The company ranked among the top 10 personal loan providers in the United States as of 2023, according to market analysis reports.
Future Growth Initiatives
Looking ahead, Oportun plans to expand its offerings by introducing new financial products and services. By 2024, the company aims to increase its loan portfolio by 20%, focusing on additional credit products to cater to diverse customer needs.
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