Oportun Raises 2026 Outlook as Q3 Revenue and Profit Rise

Oportun Financial Corp. (NASDAQ: OPRT) raised its full-year 2026 revenue and profitability outlook after third-quarter results exceeded the high end of its guidance, supported by higher loan originations, lower funding costs and improved credit performance.

Revenue rose 3.2% year over year to $246.3 million, marking the consumer lender’s first year-over-year revenue growth since the fourth quarter of 2023. That exceeded its guidance range of $235 million to $240 million. Net revenue, which reflects interest expense and changes in fair value, increased 20.5% to $126.6 million as quarterly interest expense fell 27.4% to $41.1 million.

GAAP net income climbed to $22.9 million from $5.2 million a year earlier. Diluted earnings were $0.45 per share, compared with $0.11. GAAP return on equity reached 21.6%, up from 5.4% in the prior-year period.

On a non-GAAP basis, adjusted net income increased 37.8% to $25.9 million, while adjusted earnings per share rose 30.6% to $0.51. Adjusted EBITDA advanced 37% to $56.5 million, above Oportun’s $43 million-to-$48 million guidance range, and the adjusted EBITDA margin expanded to 22.9% from 17.3%.

Originations Grow as Credit Metrics Improve

Aggregate originations increased 11.7% year over year to $571.8 million. Oportun said growth was concentrated in lower-risk segments: unsecured loans to returning members and secured personal-loan originations totaled $470 million, up 25% overall. Unsecured returning-member originations rose 25%, while secured originations increased 24%.

The annualized net charge-off rate declined to 10.6% from 11.8% a year earlier and 12.0% in the second quarter, outperforming the company’s guidance of 11.0%, plus or minus 15 basis points. Dollar net charge-offs fell 10.3% year over year to $71.4 million. The 30-plus-day delinquency rate was 4.1%, down from 4.7% a year earlier but slightly above 4.0% in the preceding quarter.

Portfolio yield rose 136 basis points year over year to 34.4%. Together with the lower charge-off rate and reduced funding costs, that contributed to stronger profitability. The company’s risk-adjusted net interest margin increased 15.8% to $127.9 million, with the corresponding ratio rising to 19.0% from 16.4%.

Operating expenses increased 1.3% to $92.0 million. Sales and marketing costs rose 28% to $21.1 million, while other operating expenses declined 4.6% to $70.9 million. Customer acquisition cost increased to $131 from $103 a year earlier.

Liquidity and Funding

Oportun ended the quarter with $181.2 million of unrestricted cash, up from $104.6 million a year earlier. Corporate financing declined 31% to $121.2 million, while leverage fell to 6.2 times equity from 7.1 times.

The company’s cost of debt decreased to 6.1% from 8.1%, and annualized interest expense fell to $163.2 million from $224.6 million. Oportun had $433.4 million of stockholders’ equity at quarter-end, an increase of 12.9% from a year earlier.

Full-Year Outlook Raised

For the fourth quarter, management expects total revenue of $247 million to $252 million, an annualized net charge-off rate of 11.05%, plus or minus 15 basis points, and adjusted EBITDA of $49 million to $54 million.

Oportun raised its full-year guidance across the disclosed metrics. It now expects 2026 revenue of $955 million to $960 million and adjusted EBITDA of $183 million to $188 million. The company projects adjusted net income of $80 million to $85 million and adjusted EPS of $1.60 to $1.70, based on 50.2 million fully diluted shares. Its full-year annualized net charge-off rate is expected to be 11.6%, plus or minus 10 basis points.

The company’s strategy remains focused on expanding responsible new-member acquisition, offering returning members more tailored products and reducing performance volatility across economic cycles. It also announced three leadership appointments: Bill Franklin as chief financial officer, Bernardo Martinez as chief retail and sales officer, and Garrett Hope as chief product officer.

Oportun cautioned that its outlook remains subject to risks including inflation and interest-rate changes, loan delinquencies and charge-offs, access to financing, regulatory requirements, competition, member retention and acquisition, technology and cybersecurity issues, and the effectiveness of its artificial-intelligence model. The company also noted that fair-value adjustments can affect reported revenue and earnings.