OppFi Q2 2026 Earnings: Record Revenue, Lower Adjusted Profit

OppFi (NYSE: OPFI) reported Q2 2026 total revenue of $145.2 million, up 1.9% year over year, and diluted EPS of $0.18, compared with a loss of $0.78 a year earlier. Net income increased 36% to $15.6 million, but adjusted EPS fell 25% as higher credit losses and operating expenses pressured underlying profitability.

Core Earnings Data

OppFi achieved record revenue for a second quarter, but net revenue—which reflects the change in the fair value of finance receivables—declined 14%. Operating income consequently fell 45.6%, indicating that the improvement in GAAP net income did not come from stronger core operating results.

The contrast was also visible in adjusted results: adjusted net income declined 27% and adjusted EPS fell to $0.33. GAAP earnings benefited from a $0.2 million warrant-liability fair-value gain, compared with a $33.3 million loss in the prior-year quarter.

Adjusted net income and adjusted EPS are non-GAAP measures. The quarter ended June 30, 2026.

Higher Charge-Offs and Deal Costs Outweighed Revenue Growth

The larger negative fair-value adjustment on finance receivables was the main reason total revenue growth did not translate into higher net revenue. That adjustment increased to $59.0 million from $42.2 million, while net charge-offs rose to 39.5% of total revenue from 31.9%. Annualized net charge-offs as a percentage of average receivables increased to 52.3% from 43.5%.

Lending activity also slowed. Total net originations declined 9.3% to $212.0 million, and retained net originations fell 14.1% to $176.8 million. Ending receivables were nearly unchanged at $440.1 million, up 0.5%, while annualized average yield decreased to 132.4% from 136.1%. The auto-approval rate increased to 81.2% from 79.7%.

Expenses added to the pressure. Total expenses rose 11.5% to $61.8 million, led by professional fees, which increased to $13.6 million from $4.8 million. OppFi identified $7.9 million of Q2 expenses related to the pending BNCCORP transaction and its corporate simplification. Lower salaries, marketing costs, and interest expense provided partial offsets.

Cash Flow, Balance Sheet, and Capital Allocation

OppFi disclosed cash-flow figures for the first six months of 2026 rather than Q2 alone. First-half operating cash flow increased 1.9% to $182.8 million. Investing cash outflow declined to $78.5 million from $115.6 million, while financing cash outflow increased to $105.7 million from $73.8 million.

At June 30, cash and restricted cash totaled $91.8 million, including $64.3 million of unrestricted cash. Total debt declined 14% from year-end to $276.5 million, while stockholders’ equity increased 34.1% to $414.3 million.

OppFi reported approximately $541.8 million of total funding capacity, including $173.5 million of unused debt capacity. Unused capacity was down from $203.6 million at year-end, primarily because of the termination of the Gray Rock revolving credit line.

During the first half, OppFi repurchased $11.2 million of Class A common stock at an average price of $9.46 per share. The company began repurchases during Q2 under the $40 million program authorized on May 6, 2026.

Full-Year 2026 Guidance

OppFi updated its full-year guidance, providing ranges for revenue, adjusted net income, and adjusted EPS. The supplied release did not include the previous ranges, so the direction of the update cannot be determined from the available information.

The adjusted EPS range assumes approximately 86 million weighted-average diluted shares. Adjusted net income and adjusted EPS are non-GAAP measures, and the company did not provide a reconciliation to projected GAAP results because it could not reasonably predict the timing or amount of the necessary adjustments.

Management Commentary

CEO and Executive Chairman Todd Schwartz emphasized OppFi’s transition toward a more diversified financial platform. Management’s current initiatives include completing the pending acquisition of BNCCORP and BNC National Bank, preparing a new line-of-credit product, and expanding the broader product roadmap.

Management believes operating as a national bank, combined with a wider product suite and additional technology capabilities, could improve long-term earnings consistency. These benefits remain dependent on transaction completion and successful execution.

Recent Insider Transactions

The supplied insider data showed several director stock grants in June 2026 alongside three disclosed sales. These transactions are presented objectively and do not, by themselves, establish insiders’ views about the company’s outlook.

Risks Investors Need to Watch

• Credit performance: Higher charge-off ratios and the larger negative fair-value adjustment reduced net revenue. Further deterioration could continue to pressure operating and adjusted earnings.
• Originations and yield: Lower total and retained originations, combined with a reduced average yield, could limit revenue growth if the trends persist.
• BNCCORP acquisition execution: The transaction remains subject to closing conditions and regulatory approvals. Integration challenges or additional transaction costs could affect expected benefits and near-term expenses.
• Funding availability: OppFi still reported substantial funding capacity, but unused debt capacity declined after a revolving credit facility was terminated. Future lending growth depends partly on continued access to financing.

Summary

OppFi’s Q2 2026 results featured record second-quarter revenue and higher GAAP net income, but underlying performance weakened as charge-offs increased, net revenue declined, and professional fees rose. The next important indicators are credit performance, origination trends, expense normalization, progress on the BNCCORP acquisition, and execution against the updated full-year guidance.