Oportun Q2 adjusted EPS beats estimates, raises FY profit guidance
Overview
Oportun Q2 revenue falls 6% to $234 mln, missing analyst expectations, per LSEG data
Adjusted EPS rises 288% to $0.31, beating analyst estimates, per LSEG data
Co raises full year 2025 adjusted EPS guidance by 8% at midpoint
Outlook
Oportun expects full-year 2025 revenue of $945 mln to $960 mln
Company raises full-year 2025 Adjusted EPS guidance to $1.20-$1.40
Oportun anticipates 3Q 2025 revenue of $237 mln to $242 mln
Company sees full-year 2025 Net Charge-Off Rate at 11.9% +/- 30 bps
Result Drivers
COST REDUCTION - Operating expenses decreased by 13% year-over-year due to cost reduction initiatives
CREDIT PERFORMANCE - Improved credit performance with lower net charge-offs and delinquency rates contributed to profitability
REVENUE DECLINE - Total revenue fell 6% primarily due to the sale of the credit cards receivable portfolio and lower portfolio yield
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $234.30 mln | $240 mln (7 Analysts) |
Q2 Adjusted EPS | Beat | $0.31 | $0.23 (8 Analysts) |
Q2 EPS |
| $0.14 |
|
Q2 Net Income |
| $6.90 mln |
|
Q2 Adjusted EBITDA | Miss | $31 mln | $32.70 mln (4 Analysts) |
Q2 Operating Expenses |
| $94.40 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the consumer lending peer group is "buy"
Wall Street's median 12-month price target for Oportun Financial Corp is $10.00, about 36.7% above its August 5 closing price of $6.33
The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 4 three months ago
Press Release: ID:nGNX4QhclN
