OPFI

OppFi Inc. (OPFI) came out with quarterly earnings of $0.37 per share, missing the Zacks Consensus Estimate of $0.38 per share. This compares to earnings of $0.46 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -2.63%. A quarter ago, it was expected that this company would post earnings of $0.48 per share when it actually produced earnings of $0.33, delivering a surprise of -31.25%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. OppFi, which belongs to the Zacks Financial Transaction Services industry, posted revenues of $149.23 million for the quarter ended September 2026, missing the Zacks Consensus Estimate by 4.55%. This compares to year-ago revenues of $155.09 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. OppFi shares have lost about 47.9% since the beginning of the year versus the S&P 500's gain of 12.8%. While OppFi has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for OppFi was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.35 on $158.48 million in revenues for the coming quarter and $1.40 on $611.85 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial Transaction Services is currently in the bottom 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, RB Global (RBA), is yet to report results for the quarter ended September 2026. The results are expected to be released on November 9. This heavy equipment auctioneer is expected to post quarterly earnings of $0.99 per share in its upcoming report, which represents a year-over-year change of +6.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. RB Global's revenues are expected to be $1.17 billion, up 7.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report OppFi Inc. (OPFI) : Free Stock Analysis Report RB Global, Inc. (RBA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Launched new Line of Credit product, representing a significant milestone in the expansion of OppFi's product suite Continued execution of product and pricing initiatives designed to expand addressable market opportunities and enhance customer choice Repurchased $6.7 million of common stock during the third quarter under the share repurchase program CHICAGO, Oct. 28, 2026 /PRNewswire/ -- OppFi Inc. (NYSE: OPFI) ("OppFi" or the "Company"), a tech-enabled digital finance platform that partners with banks to offer financial products and services to everyday Americans, today reported financial results for the third quarter ended September 30, 2026. "The strategic transformation of OppFi continued to gain momentum during the third quarter as we delivered strong execution across a number of priorities that we believe will drive our next phase of growth," said Todd Schwartz, CEO and Executive Chairman. "From launching our line of credit product and advancing the migration to our LOLA platform, to progressing key product innovation initiatives, we are building a more diversified, technology-enabled financial platform designed to better serve customers across their financial journeys. We believe these initiatives will broaden our capabilities, strengthen our long-term earnings power, and position OppFi to create substantial long-term value." Financial Summary The following tables present a summary of OppFi's results for the three and nine months ended September 30, 2026 and 2025 (in thousands, except per share data). Certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts. | | Three Months Ended September 30, | | Change (Unaudited) | | 2026 | | 2025 | | % Total revenue(1) | | $ 149,230 | | $ 155,089 | | (3.8) % Net income | | $ 34,479 | | $ 75,933 | | (54.6) % Net income attributable to OppFi Inc. | | $ 34,479 | | $ 41,635 | | (17.2) % Adjusted net income(2) | | $ 31,559 | | $ 40,727 | | (22.5) % Basic EPS | | $ 0.41 | | $ 1.48 | | (72.6) % Diluted EPS(3) | | $ 0.40 | | $ 0.77 | | (47.6) % Adjusted EPS(2,3) | | $ 0.37 | | $ 0.46 | | (20.1) % | | | | | | (1) Total revenue is calculated as the sum of interest on finance receivables and other revenue. (2) Adjusted Net Income and Adjusted EPS are non-GAAP financial measures. See "Reconciliation of Non-GAAP Financial Measures" below for a detailed description and reconciliation of such non-GAAP financial measures to their most directly comparable GAAP financial measures. (3) Diluted EPS calculated on a GAAP basis excludes dilutive securities, including Class V Voting Stock, restricted stock units, performance stock units, and stock options in any periods in which their inclusion would have an antidilutive effect. | | Nine Months Ended September 30, | | Change (Unaudited) | | 2026 | | 2025 | | % Total revenue(1) | | $ 446,281 | | $ 437,800 | | 1.9 % Net income | | $ 104,129 | | $ 107,803 | | (3.4) % Net income attributable to OppFi Inc. | | $ 77,722 | | $ 9,483 | | 719.6 % Adjusted net income(2) | | $ 90,363 | | $ 113,945 | | (20.7) % Basic EPS | | $ 1.29 | | $ 0.36 | | 257.3 % Diluted EPS(3) | | $ 1.14 | | $ 0.36 | | 214.0 % Adjusted EPS(2,3) | | $ 1.05 | | $ 1.29 | | (18.6) % | | | | | | (1) Total revenue is calculated as the sum of interest on finance receivables and other revenue. (2) Adjusted Net Income and Adjusted EPS are non-GAAP financial measures. See "Reconciliation of Non-GAAP Financial Measures" below for a detailed description and reconciliation of such non-GAAP financial measures to their most directly comparable GAAP financial measures. (3) Diluted EPS calculated on a GAAP basis excludes dilutive securities, including Class V Voting Stock, restricted stock units, performance stock units, and stock options in any periods in which their inclusion would have an antidilutive effect. Key Performance Metrics The following tables represent key quarterly metrics as of and for the three and nine months ended September 30, 2026 and 2025 (in thousands, except percentage metrics). | | Three Months Ended September 30, | | Change (Unaudited) | | 2026 | | 2025 | | % Total net originations(a) | | $ 229,348 | | $ 246,109 | | (6.8) % Total retained net originations(a) | | $ 190,671 | | $ 215,237 | | (11.4) % Ending receivables(b) | | $ 458,631 | | $ 481,037 | | (4.7) % Net charge-offs as % of total revenue(c) | | 40.1 % | | 35.1 % | | 14.2 % Net charge-offs as % of average receivables, annualized(c) | | 52.6 % | | 46.7 % | | 12.7 % Average yield, annualized(d) | | 131.4 % | | 133.2 % | | (1.3) % Auto-approval rate(e) | | 80.1 % | | 79.1 % | | 1.2 % | | (a) Total net originations are defined as gross originations net of transferred balance on refinanced loans, while total retained net originations are defined as the portion of total net originations with respect to which the Company ultimately purchased a receivable from bank partners. (b) Ending receivables are defined as the unpaid principal balances of loans at the end of the reporting period. (c) Net charge-offs as a percentage of total revenue and net charge-offs as a percentage of average receivables represent total charge-offs from the period less recoveries as a percentage of total revenue and as a percentage of average receivables. Net charge-offs as a percentage of average receivables is presented as an annualized metric. Finance receivables are charged off at the earlier of the time when accounts reach 90 days past due on a recency basis, when OppFi receives notification of a customer bankruptcy or is otherwise deemed uncollectible. (d) Average yield is defined as total revenue from the period as a percent of average receivables and is presented as an annualized metric. (e) Auto-approval rate is calculated by taking the number of approved loans that are not decisioned by a loan processor or underwriter (auto-approval) divided by the total number of loans approved. | | Nine Months Ended September 30, | | Change (Unaudited) | | 2026 | | 2025 | | % Total net originations(a) | | $ 617,360 | | $ 669,150 | | (7.7) % Total retained net originations(a) | | $ 518,881 | | $ 589,905 | | (12.0) % Ending receivables(b) | | $ 458,631 | | $ 481,037 | | (4.7) % Net charge-offs as % of total revenue(c) | | 40.7 % | | 33.9 % | | 20.0 % Net charge-offs as % of average receivables, annualized(c) | | 53.2 % | | 45.5 % | | 16.9 % Average yield, annualized(d) | | 130.8 % | | 134.3 % | | (2.6) % Auto-approval rate(e) | | 80.2 % | | 79.2 % | | 1.3 % | | | | | | (a) Total net originations are defined as gross originations net of transferred balance on refinanced loans, while total retained net originations are defined as the portion of total net originations with respect to which the Company ultimately purchased a receivable from bank partners. (b) Ending receivables are defined as the unpaid principal balances of loans at the end of the reporting period. (c) Net charge-offs as a percentage of total revenue and net charge-offs as a percentage of average receivables represent total charge-offs from the period less recoveries as a percentage of total revenue and as a percentage of average receivables. Net charge-offs as a percentage of average receivables is presented as an annualized metric. Finance receivables are charged off at the earlier of the time when accounts reach 90 days past due on a recency basis, when OppFi receives notification of a customer bankruptcy or is otherwise deemed uncollectible. (d) Average yield is defined as total revenue from the period as a percent of average receivables and is presented as an annualized metric. (e) Auto-approval rate is calculated by taking the number of approved loans that are not decisioned by a loan processor or underwriter (auto-approval) divided by the total number of loans approved. Share Repurchase Program During the nine months ended September 30, 2026, OppFi repurchased $17.9 million of its Class A common stock at an average purchase price of $8.91 per share. Full Year 2026 Guidance Update OppFi is refining its full year 2026 guidance as follows: - Total revenue between $600 million and $610 million; - Adjusted net income1 between $115 million and $120 million; and - Adjusted EPS1 between $1.34 and $1.40, based on an approximate weighted average diluted share count of 86 million shares (1) Non-GAAP Financial Measures: Adjusted Net Income and Adjusted EPS are non-GAAP financial measures. See "Reconciliation of Non-GAAP Financial Measures" below for a detailed description and reconciliation of such non-GAAP financial measures to their most directly comparable GAAP financial measures. A reconciliation of projected full year 2026 Adjusted Net Income and Adjusted EPS to the most directly comparable GAAP financial measures is not included in this press release because, without unreasonable efforts, the Company is unable to predict with reasonable certainty the amount or timing of non-GAAP adjustments that are used to calculate these measures. Conference Call Management will host a conference call today at 8:30 a.m. ET to discuss OppFi's financial results and business outlook. The webcast of the conference call will be made available on the Investor Relations page of the Company's website. The conference call can also be accessed with the following dial-in information: - Domestic: (833) 354-6854 - International: (785) 838-9343 - Conference ID: OPPFI An archived version of the webcast will be available on OppFi's website. About OppFi OppFi (NYSE: OPFI) is a tech-enabled digital finance platform that partners with banks to offer financial products and services to everyday Americans. Through this transparent and responsible platform, which emphasizes financial inclusion and exceptional customer experience, the Company assists consumers who are underserved by traditional financing options in building improved financial health. OppLoans by OppFi maintains a 4.4/5.0 star rating on Trustpilot based on over 5,800 reviews, positioning the Company among the top consumer-rated financial platforms online. OppFi also holds a 35% equity interest in Bitty Holdings, LLC ("Bitty"), a credit access company that provides revenue-based financing and other working capital solutions to small businesses. For additional information, please visit oppfi.com. Important Additional Information and Where to Find It In connection with the proposed transaction between OppFi and BNCCORP, Inc. ("BNCC"), OppFi has filed with the U.S. Securities and Exchange Commission (the "SEC") a registration statement on Form S-4 (File No. 333-297733) (the "registration statement"), which includes a proxy statement of BNCC and a prospectus of OppFi (the "proxy statement/prospectus"), and OppFi may file with the SEC other relevant documents regarding the proposed transaction. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS CAREFULLY AND IN THEIR ENTIRETY AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC BY OPPFI, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT OPPFI, BNCC, BNC NATIONAL BANK AND THE PROPOSED TRANSACTION. A definitive copy of the proxy statement/prospectus has been mailed to stockholders of BNCC. Investors and security holders will be able to obtain the registration statement and the proxy statement/prospectus, as well as other filings containing information about OppFi, free of charge from OppFi or from the SEC's website. The documents filed by OppFi with the SEC may be obtained free of charge at OppFi's website, at https://investors.oppfi.com/financials/sec-filings/default.aspx, or by requesting them by mail at 130 E. Randolph Street, Suite 3400, Chicago, IL 60601 or by email at [email protected]. Contacts: Investor Relations: [email protected] Media Relations: [email protected] Forward-Looking Statements This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. OppFi's actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "opportunity," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "possible," "continue," "positions," and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, without limitation, OppFi's expectations with respect to its full year 2026 guidance, the future performance of OppFi's platform and underwriting models, the anticipated performance of its recently launched line of credit product, the expected benefits of its ongoing migration to the LOLA platform, statements regarding OppFi's proposed acquisition of BNCC, including the anticipated timing, structure, benefits and strategic rationale of the transaction, OppFi's expectations with respect to the geographic expansion and product diversification that may come from the acquisition, and expectations for OppFi's growth and future financial performance. These forward-looking statements are based on OppFi's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside OppFi's control and are difficult to predict. Factors that may cause such differences include, but are not limited to, the impact of general economic conditions, including economic slowdowns, inflation, interest rate changes, recessions, the impact of tariffs, and tightening of credit markets on OppFi's business; the impact of challenging macroeconomic and marketplace conditions; the impact of stimulus or other government programs; risks related to the proposed acquisition of BNCC including the risk that the transactions may not be completed in a timely manner or at all, the failure to satisfy closing conditions or obtain required regulatory approvals, the impact of the transaction on OppFi's governance structure, integration or execution challenges, and adverse reactions from customers or stockholders; whether OppFi will be successful in obtaining declaratory relief against the Commissioner of the Department of Financial Protection and Innovation for the State of California; whether OppFi will be subject to AB 539; whether OppFi's bank partners will continue to lend in California and whether OppFi's financing sources will continue to finance the purchase of participation rights in loans originated by OppFi's bank partners in California; OppFi's ability to scale and grow the Bitty business; the impact that events involving financial institutions or the financial services industry generally, such as actual concerns or events involving liquidity, defaults, or non-performance, may have on OppFi's business; risks related to any material weakness in OppFi's internal controls over financial reporting; the ability of OppFi to grow and manage growth profitably and retain its key employees; risks related to new products; the implementation and migration of technology platforms; risks related to evaluating and potentially consummating acquisitions; concentration risk; risks related to OppFi's ability to comply with various covenants in its corporate and warehouse credit facilities; risks related to potential litigation; changes in applicable laws or regulations, including, but not limited to, impacts from the One Big Beautiful Bill Act; the possibility that OppFi may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties indicated from time to time in OppFi's filings with the United States Securities and Exchange Commission, in particular, contained in the section captioned "Risk Factors." OppFi cautions that the foregoing list of factors is not exclusive, and readers should not place undue reliance upon any forward-looking statements, which speak only as of the date made. OppFi does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Non-GAAP Financial Measures This press release includes certain non-GAAP financial measures that are unaudited and do not conform to GAAP, such as Adjusted EBT, Adjusted Net Income, and Adjusted EPS. Adjusted EBT is defined as Net Income, adjusted for (1) income tax expense; (2) change in fair value of warrant liabilities; (3) other adjustments, net; and (4) other income. Adjusted Net Income is defined as Adjusted EBT as defined above, adjusted for taxes assuming a tax rate for each period presented that reflects the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes, in order to allow for a comparison with other publicly traded companies. Adjusted EPS is defined as Adjusted Net Income as defined above, divided by weighted average diluted shares outstanding, which represents shares of both classes of common stock outstanding and includes the impact of dilutive securities, such as restricted stock units, performance stock units, and stock options. These non-GAAP financial measures have not been prepared in accordance with accounting principles generally accepted in the United States and may be different from non-GAAP financial measures used by other companies. OppFi believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. These non-GAAP measures with comparable names should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. See "Reconciliation of Non-GAAP Financial Measures" below for reconciliations for OppFi's non-GAAP financial measures to the most directly comparable GAAP financial measures. Consolidated Statements of Operations The following tables present consolidated statements of operations for the three and nine months ended September 30, 2026 and 2025 (in thousands, except share and per share data). Certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts. | | Three Months Ended September 30, | | Change (Unaudited) | | 2026 | | 2025 | | $ | | % Revenue: | | | | | | | | Interest on finance receivables | | $ 147,652 | | $ 153,706 | | $ (6,054) | | (3.9) % Other revenue | | 1,578 | | 1,383 | | 195 | | 14.1 | | 149,230 | | 155,089 | | (5,859) | | (3.8) Change in fair value of finance receivables | | (56,476) | | (50,532) | | (5,944) | | 11.8 Net revenue | | 92,754 | | 104,557 | | (11,803) | | (11.3) Expenses: | | | | | | | | Direct marketing costs | | 13,044 | | 14,514 | | (1,470) | | (10.1) Salaries and employee benefits | | 12,718 | | 14,513 | | (1,795) | | (12.4) Interest expense and amortized debt issuance costs | | 8,659 | | 10,079 | | (1,420) | | (14.1) Professional fees | | 7,538 | | 6,100 | | 1,438 | | 23.6 Technology costs | | 3,934 | | 3,131 | | 803 | | 25.6 Depreciation and amortization | | 1,945 | | 1,133 | | 812 | | 71.7 Payment processing fees | | 1,675 | | 1,712 | | (37) | | (2.2) Occupancy | | 985 | | 1,030 | | (45) | | (4.4) General, administrative and other | | 5,212 | | 3,900 | | 1,312 | | 33.6 Total expenses | | 55,710 | | 56,112 | | (402) | | (0.7) Income from operations | | 37,044 | | 48,445 | | (11,401) | | (23.5) Other income: | | | | | | | | Change in fair value of warrant liabilities | | 2,842 | | 31,688 | | (28,846) | | (91.0) Income from equity method investment | | 774 | | 1,365 | | (591) | | (43.3) Other income | | 86 | | 82 | | 4 | | 4.9 Income before income taxes | | 40,746 | | 81,580 | | (40,834) | | (50.1) Income tax expense | | 6,267 | | 5,647 | | 620 | | 11.0 Net income | | 34,479 | | 75,933 | | (41,454) | | (54.6) Less: net income attributable to noncontrolling interest | | — | | 34,298 | | (34,298) | | (100.0) Net income attributable to OppFi Inc. | | $ 34,479 | | $ 41,635 | | $ (7,156) | | (17.2) % | | | | | | | | Earnings per common share attributable to OppFi Inc.: | | | | | | Earnings per common share: | | | | | | | | Basic | | $ 0.41 | | $ 1.48 | | | | Diluted | | $ 0.40 | | $ 0.77 | | | | Weighted average common shares outstanding: | | | | | | | | Basic | | 85,066,885 | | 28,163,404 | | | | Diluted | | 85,571,877 | | 88,236,591 | | | | | | Nine Months Ended September 30, | | Change (Unaudited) | | 2026 | | 2025 | | $ | | % Revenue: | | | | | | | | Interest on finance receivables | | $ 441,904 | | $ 433,968 | | $ 7,936 | | 1.8 % Other revenue | | 4,377 | | 3,832 | | 545 | | 14.2 | | 446,281 | | 437,800 | | 8,481 | | 1.9 Change in fair value of finance receivables | | (180,058) | | (142,187) | | (37,871) | | 26.6 Net revenue | | 266,223 | | 295,613 | | (29,390) | | (9.9) Expenses: | | | | | | | | Salaries and employee benefits | | 43,266 | | 46,045 | | (2,779) | | (6.0) Direct marketing costs | | 34,832 | | 36,692 | | (1,860) | | (5.1) Professional fees | | 28,415 | | 15,091 | | 13,324 | | 88.3 Interest expense and amortized debt issuance costs | | 25,294 | | 29,965 | | (4,671) | | (15.6) Technology costs | | 10,788 | | 9,474 | | 1,314 | | 13.9 Payment processing fees | | 4,967 | | 4,869 | | 98 | | 2.0 Depreciation and amortization | | 4,045 | | 4,395 | | (350) | | (8.0) Occupancy | | 2,843 | | 3,099 | | (256) | | (8.3) General, administrative and other | | 15,012 | | 10,238 | | 4,774 | | 46.6 Total expenses | | 169,462 | | 159,868 | | 9,594 | | 6.0 Income from operations | | 96,761 | | 135,745 | | (38,984) | | (28.7) Other income (expense): | | | | | | | | Change in fair value of warrant liabilities | | 24,338 | | (23,223) | | 47,561 | | 204.8 Income from equity method investment | | 2,707 | | 3,562 | | (855) | | (24.0) Other income | | 405 | | 241 | | 164 | | 68.1 Income before income taxes | | 124,211 | | 116,325 | | 7,886 | | 6.8 Income tax expense | | 20,082 | | 8,522 | | 11,560 | | 135.7 Net income | | 104,129 | | 107,803 | | (3,674) | | (3.4) Less: net income attributable to noncontrolling interest | | 26,407 | | 98,320 | | (71,913) | | (73.1) Net income attributable to OppFi Inc. | | $ 77,722 | | $ 9,483 | | $ 68,239 | | 719.6 % | | | | | | | | Earnings per common share attributable to OppFi Inc.: | | | | | | Earnings per common share: | | | | | | | | Basic | | $ 1.29 | | $ 0.36 | | | | Diluted | | $ 1.14 | | $ 0.36 | | | | Weighted average common shares outstanding: | | | | | | | | Basic | | 60,027,387 | | 26,168,321 | | | | Diluted | | 85,933,941 | | 26,168,321 | | | | Condensed Consolidated Balance Sheets The following table presents consolidated balance sheets as of September 30, 2026 and December 31, 2025 (in thousands). Certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts. | | (Unaudited) | | | | | | | | September 30, | | December 31, | | Change | | 2026 | | 2025 | | $ | | % Assets | | | | | | | | Cash and restricted cash | | $ 140,673 | | $ 93,263 | | $ 47,410 | | 50.8 % Finance receivables at fair value | | 518,884 | | 546,236 | | (27,352) | | (5.0) Equity method investment | | 20,348 | | 19,076 | | 1,272 | | 6.7 Other assets | | 162,495 | | 95,515 | | 66,980 | | 70.1 Total assets | | $ 842,400 | | $ 754,090 | | $ 88,310 | | 11.7 % Liabilities and stockholders' equity | | | | | | | | Accounts payable and accrued expenses | | $ 37,406 | | $ 46,171 | | $ (8,765) | | (19.0) % Total debt | | 349,639 | | 321,353 | | 28,286 | | 8.8 Warrant liabilities | | 2,117 | | 26,455 | | (24,338) | | (92.0) Other liabilities | | 9,915 | | 51,235 | | (41,320) | | (80.6) Total liabilities | | 399,077 | | 445,214 | | (46,137) | | (10.4) Total stockholders' equity | | 443,323 | | 308,876 | | 134,447 | | 43.5 Total liabilities and stockholders' equity | | $ 842,400 | | $ 754,090 | | $ 88,310 | | 11.7 % Condensed Consolidated Statement of Cash Flows The following table presents the consolidated statement of cash flows for the nine months ended September 30, 2026 and 2025 (in thousands). Certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts. | | Nine Months Ended September 30, | | Change (Unaudited) | | 2026 | | 2025 | | $ | | % Net cash provided by operating activities | | $ 268,129 | | $ 284,481 | | $ (16,352) | | (5.7) % Net cash used in investing activities | | (160,606) | | (218,419) | | 57,813 | | (26.5) Net cash used in financing activities | | (60,113) | | (79,157) | | 19,044 | | (24.1) Net increase (decrease) in cash and restricted cash | | $ 47,410 | | $ (13,095) | | $ 60,505 | | 462.0 % Financial Capacity and Capital Resources As of September 30, 2026, OppFi had $102.7 million in unrestricted cash, an increase of $53.2 million from December 31, 2025. As of September 30, 2026, OppFi had an additional $198.5 million of unused debt capacity under its financing facilities for future availability, representing a 36% overall undrawn capacity, a decrease from $203.6 million as of December 31, 2025. The decrease in undrawn debt was driven primarily by the termination of the Gray Rock SPV LLC revolving line of credit. Including total financing commitments of $550.0 million and cash and restricted cash on the balance sheet of $140.7 million, OppFi had approximately $690.7 million in funding capacity as of September 30, 2026. Reconciliation of Non-GAAP Financial Measures The following tables present reconciliations of non-GAAP financial measures for the three and nine months ended September 30, 2026 and 2025 (in thousands, except share and per share data). Certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts. Adjusted EBT and Adjusted Net Income Comparison of the three months ended September 30, 2026 and 2025 | | Three Months Ended September 30, | | Change (Unaudited) | | 2026 | | 2025 | | $ | | % Net income | | $ 34,479 | | $ 75,933 | | $ (41,454) | | (54.6) % Income tax expense | | 6,267 | | 5,647 | | 620 | | 11.0 Other income | | (86) | | (82) | | (4) | | 4.9 Change in fair value of warrant liabilities | | (2,842) | | (31,688) | | 28,846 | | (91.0) Other adjustments, net(a) | | 3,691 | | 3,393 | | 298 | | 8.8 Adjusted EBT | | 41,509 | | 53,203 | | (11,694) | | (22.0) Less: pro forma taxes(b) | | 9,950 | | 12,476 | | (2,526) | | (20.2) Adjusted net income | | $ 31,559 | | $ 40,727 | | $ (9,168) | | (22.5) % | | | | | | | | Adjusted earnings per share | | $ 0.37 | | $ 0.46 | | | | Weighted average diluted shares outstanding | | 85,571,877 | | 88,236,591 | | | | | | | | | | | | (a) For the three months ended September 30, 2026, other adjustments, net of $3.7 million included $1.8 million in expenses related to the proposed acquisition of BNCC (the "Transaction"), $1.6 million in expenses related to stock compensation, and $0.3 million in expenses related to severance. For the three months ended September 30, 2025, other adjustments, net of $3.4 million included $1.9 million in expenses related to stock compensation, $1.0 million in expenses related to corporate development, $0.4 million in expenses related to legal matters, and $0.1 million in expenses related to severance. The sum of the individual components of other adjustments, net may not equal the total presented due to the use of rounded numbers for disclosure purposes. (b) Assumes a tax rate of 23.97% for the three months ended September 30, 2026 and 23.45% for the three months ended September 30, 2025, reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes. Comparison of the nine months ended September 30, 2026 and 2025 | | Nine Months Ended September 30, | | Change (Unaudited) | | 2026 | | 2025 | | $ | | % Net income | | $ 104,129 | | $ 107,803 | | $ (3,674) | | (3.4) % Income tax expense | | 20,082 | | 8,522 | | 11,560 | | 135.7 Other income | | (405) | | (241) | | (164) | | 68.1 Change in fair value of warrant liabilities | | (24,338) | | 23,223 | | (47,561) | | (204.8) Other adjustments, net(a) | | 19,385 | | 9,544 | | 9,841 | | 103.1 Adjusted EBT | | 118,853 | | 148,851 | | (29,998) | | (20.2) Less: pro forma taxes(b) | | 28,490 | | 34,906 | | (6,416) | | (18.4) Adjusted net income | | $ 90,363 | | $ 113,945 | | $ (23,582) | | (20.7) % | | | | | | | | Adjusted earnings per share | | $ 1.05 | | $ 1.29 | | | | Weighted average diluted shares outstanding | | 85,933,941 | | 88,218,365 | | | | | | | | | | | | (a) For the nine months ended September 30, 2026, other adjustments, net of $19.4 million included $10.6 million in expenses related to the Transaction and the series of transactions which resulted in OppFi becoming the sole owner of OppFi-LLC and the termination of the Tax Receivable Agreement (the "Corporate Simplification"), $6.4 million in expenses related to stock compensation, $1.9 million in expenses related to severance, and $0.5 million in expenses related to legal matters. For the nine months ended September 30, 2025, other adjustments, net of $9.5 million included $8.3 million in expenses related to stock compensation, $1.0 million in expenses related to corporate development, $0.9 million in expenses related to legal matters, $0.7 million in expenses related to severance, and $0.2 million in expenses related to an adjustment to the Company's outstanding lease obligations, partially offset by a $1.4 million addback related to the partial forgiveness of remaining expenses related to OppFi Card's exit activities. The sum of the individual components of other adjustments, net may not equal the total presented due to the use of rounded numbers for disclosure purposes. (b) Assumes a tax rate of 23.97% for the nine months ended September 30, 2026 and 23.45% for the nine months ended September 30, 2025, reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes. Adjusted Earnings Per Share Comparison of the three months ended September 30, 2026 and 2025 | Three Months Ended September 30, (Unaudited) | 2026 | | 2025 Weighted average Class A common stock outstanding | 85,066,885 | | 28,163,404 Weighted average Class V voting stock outstanding | — | | 58,852,443 Dilutive impact of restricted stock units | 361,279 | | 969,852 Dilutive impact of performance stock units | — | | 31,906 Dilutive impact of stock options | 143,713 | | 218,986 Weighted average diluted shares outstanding | 85,571,877 | | 88,236,591 | Three Months Ended September 30, (In thousands, except share and per share data) | 2026 | | 2025 (Unaudited) | $ | | Per Share | | $ | | Per Share Weighted average diluted shares outstanding | | | 85,571,877 | | | | 88,236,591 Net income | $ 34,479 | | $ 0.40 | | $ 75,933 | | $ 0.86 Income tax expense | 6,267 | | 0.07 | | 5,647 | | 0.06 Other income | (86) | | — | | (82) | | — Change in fair value of warrant liabilities | (2,842) | | (0.03) | | (31,688) | | (0.36) Other adjustments, net(a) | 3,691 | | 0.04 | | 3,393 | | 0.04 Adjusted EBT | 41,509 | | 0.49 | | 53,203 | | 0.60 Less: pro forma taxes(b) | 9,950 | | 0.12 | | 12,476 | | 0.14 Adjusted net income | $ 31,559 | | $ 0.37 | | $ 40,727 | | $ 0.46 | | | | | | | (a) For the three months ended September 30, 2026, other adjustments, net of $3.7 million included $1.8 million in expenses related to the Transaction, $1.6 million in expenses related to stock compensation, and $0.3 million in expenses related to severance. For the three months ended September 30, 2025, other adjustments, net of $3.4 million included $1.9 million in expenses related to stock compensation, $1.0 million in expenses related to corporate development, $0.4 million in expenses related to legal matters, and $0.1 million in expenses related to severance. The sum of the individual components of other adjustments, net may not equal the total presented due to the use of rounded numbers for disclosure purposes. (b) Assumes a tax rate of 23.97% for the three months ended September 30, 2026 and 23.45% for the three months ended September 30, 2025, reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes. Comparison of the nine months ended September 30, 2026 and 2025 | Nine Months Ended September 30, (Unaudited) | 2026 | | 2025 Weighted average Class A common stock outstanding | 60,027,387 | | 26,168,321 Weighted average Class V voting stock outstanding | 25,275,155 | | 60,590,252 Dilutive impact of restricted stock units | 477,232 | | 1,205,261 Dilutive impact of performance stock units | 5,421 | | 45,237 Dilutive impact of stock options | 148,746 | | 209,294 Weighted average diluted shares outstanding | 85,933,941 | | 88,218,365 | Nine Months Ended September 30, (In thousands, except share and per share data) | 2026 | | 2025 (Unaudited) | $ | | Per Share | | $ | | Per Share Weighted average diluted shares outstanding | | | 85,933,941 | | | | 88,218,365 Net income | $ 104,129 | | $ 1.21 | | $ 107,803 | | $ 1.22 Income tax expense | 20,082 | | 0.23 | | 8,522 | | 0.10 Other income | (405) | | — | | (241) | | — Change in fair value of warrant liabilities | (24,338) | | (0.28) | | 23,223 | | 0.26 Other adjustments, net(a) | 19,385 | | 0.23 | | 9,544 | | 0.11 Adjusted EBT | 118,853 | | 1.38 | | 148,851 | | 1.69 Less: pro forma taxes(b) | 28,490 | | 0.33 | | 34,906 | | 0.40 Adjusted net income | $ 90,363 | | $ 1.05 | | $ 113,945 | | $ 1.29 | | | | | | | (a) For the nine months ended September 30, 2026, other adjustments, net of $19.4 million included $10.6 million in expenses related to the Transaction and the Corporate Simplification, $6.4 million in expenses related to stock compensation, $1.9 million in expenses related to severance, and $0.5 million in expenses related to legal matters. For the nine months ended September 30, 2025, other adjustments, net of $9.5 million included $8.3 million in expenses related to stock compensation, $1.0 million in expenses related to corporate development, $0.9 million in expenses related to legal matters, $0.7 million in expenses related to severance, and $0.2 million in expenses related to an adjustment to the Company's outstanding lease obligations, partially offset by a $1.4 million addback related to the partial forgiveness of remaining expenses related to OppFi Card's exit activities. The sum of the individual components of other adjustments, net may not equal the total presented due to the use of rounded numbers for disclosure purposes. (b) Assumes a tax rate of 23.97% for the nine months ended September 30, 2026 and 23.45% for the nine months ended September 30, 2025, reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Launched a new Line of Credit (LOC) product to address shifting consumer preferences for flexible borrowing options and to unlock new marketing funnel opportunities. - Implemented 'Pricing Test 5,' the company's most significant rate and payment reduction initiative, based on data suggesting that more affordable monthly payments over longer durations improve key loss indicators. - Transitioned substantially all new customers to the LOLA platform, a modular architecture that shortened the development cycle for the LOC product to less than six months. - Developed Model 7 underwriting, which demonstrated a 20% improvement in aligning marketing pre-screening with bank partner criteria to drive higher application-to-funded conversion rates. - Expanded the Bitty small business funding segment by launching a premier product for the near-prime segment, offering larger funding amounts and longer repayment terms. - Attributed the 3.8% revenue decrease and 7% origination decline to tightened marketing partner screening criteria and a disciplined focus on margins over volume growth. - Maintained a robust recovery stream of approximately $15 million, which management views as a distinct competitive advantage that partially offsets elevated net charge-offs. - Expects the Line of Credit product to be a primary growth lever in 2027 as it scales in new geographies and undergoes testing in existing markets. - Plans to launch an Earned Wage Access (EWA) product in 2027 to complement the LOC and installment offerings and access more mainstream marketing opportunities. - Anticipates the development of AI agents for origination and servicing workflows starting in 2027, enabled by the completed migration to the LOLA platform. - Refined full-year 2026 guidance to revenue of $600 million to $610 million and adjusted EPS of $1.34 to $1.40, while maintaining a long-term target of $3 EPS by the end of 2028. - Continues to work toward regulatory approval for the BNCC acquisition, with a potential resolution timeline ranging from Q4 2026 to Q1 2027. - Investing over $150 million in 2026 across key initiatives, including the BNCC transaction, LOLA platform development, and Bitty small business funding. - Utilized the board-authorized $40 million repurchase program, citing a belief that the current share price does not reflect the company's intrinsic value or long-term earnings potential. - Drew $75 million from a Castlelake facility at approximately 12% interest to provide capital structure flexibility and optionality for 2027. - Structured the pending BNCC acquisition as a 50% stock and 50% cash transaction, requiring no additional external financing. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management noted that a subset of customers now prefers the flexibility of Line of Credit products over the stringent nature of installment loans. - The LOC product allows for more frequent draws and opens up new geographies that were previously inaccessible with the core installment product. - Management expressed a willingness to reduce yields for higher-quality customers to improve recruitment on partnership sites. - Despite potential yield adjustments, management intends to remain disciplined on acquisition costs, which they noted are significantly lower than some peers. - Management is responding to qualitative and quantitative regulatory inquiries and remains hopeful for a Q4 2026 closing. - If the process extends into Q1 2027, management believes the application remains strong on a merit basis. - Management views Earned Wage Access as having strong product-market fit for daily cash flow management. - The product is expected to qualify for mainstream marketing opportunities that are currently ineligible for the core installment product.

This article first appeared on GuruFocus. - Revenue: $149 million, down 3.8% year over year. - Originations: $229 million, down approximately 7% year over year. - Net Charge-Offs (% of Revenue): Approximately 40%, up from 35% in the prior-year period. - Net Charge-Offs (% of Receivables): Approximately 53%, up from 47% in the prior-year period. - Recoveries: Approximately $15 million, up from $11 million in the prior-year period. - Adjusted Operating Expenses: Approximately $52 million, or 35% of revenue, versus 34% in the prior-year period. - Unadjusted Operating Expenses: 37% of revenue (including one-time BNC transaction expenses), versus 36% in the prior period. - Adjusted Net Income: Approximately $32 million, down 23% year over year. - Adjusted EPS: $0.37, down from $0.46 in the prior-year period. - Cash and Equivalents (incl. Restricted Cash): Approximately $141 million at quarter end. - Total Debt: $350 million at quarter end. - Total Stockholders' Equity: $443 million at quarter end. - Total Funding Capacity: $691 million at quarter end, including $199 million of unused debt capacity. - Share Repurchases: Began repurchasing shares under the Board-authorized $40 million program during the quarter. - FY2026 Revenue Guidance: $600 million to $610 million. - FY2026 Adjusted Net Income Guidance: $115 million to $120 million. - FY2026 Adjusted EPS Guidance: $1.34 to $1.40. - Long-Term EPS Target: Approximately $3 of EPS by the end of 2028. - Warning! GuruFocus has detected 3 Warning Signs with PRG. - Is OPFI fairly valued? Test your thesis with our free DCF calculator. Release Date: October 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - OppFi Inc (NYSE:OPFI) launched its new line of credit product with bank partners in Q3, expanding credit access and opening new marketing funnel opportunities for growth in 2027. - The company's new Lola platform enabled the launch of the line of credit product in under six months and is expected to accelerate product development and AI integration. - OppFi Inc (NYSE:OPFI) is launching Model 7 in Q4, which shows a 20% improvement in aligning marketing prescreening scores with underwriting criteria, expected to drive higher conversion rates. - Recoveries increased to approximately $15 million from $11 million year-over-year, demonstrating a competitive advantage in collections. - OppFi Inc (NYSE:OPFI) maintains a strong balance sheet with $141 million in cash and $199 million of unused debt capacity, supporting strategic investments and share repurchases. - Revenue decreased 3.8% year-over-year to $149 million in Q3 2026, and originations fell 7% to $229 million due to tightened marketing partner screening criteria. - Net charge-offs as a percentage of revenue increased to approximately 40% from 35% in the prior-year period, reflecting elevated credit losses. - Adjusted net income decreased 23% to approximately $32 million, and adjusted EPS fell to $0.37 from $0.46 year-over-year. - The pending acquisition of BNC still requires regulatory approval, with timing uncertain and potentially slipping into Q1 2027. - Higher for longer inflation and subdued consumer sentiment continue to pressure OppFi Inc (NYSE:OPFI)'s customer base, impacting demand and credit performance. Q: Michael Grondahl of Northland asked about the timing of the pending BNC bank acquisition, which was previously expected to close by year-end. Any updates? A: CEO Todd Schwartz said OppFi is responding to regulators "promptly, qualitatively and quantitatively" and remains hopeful the deal can be resolved in Q4 2026, though it could slip into Q1 2027. He added that the application remains strong on a merit basis and the company continues to provide solid answers to regulators. Q: David Scharf of Citizens Capital Market asked whether there was anything incremental versus three months ago on volume headwinds, including consumer preference and competitive products. A: CEO Todd Schwartz pointed to the Q3 launch of the new line of credit product, which addresses customers who prefer flexibility over the stricter installment product and opens new geographies and marketing channels. He also cited earned wage access as a potential 2027 addition, noted the company is being "a little bit more cautious" given the bank transaction and its ~$140 million cash position, and highlighted growing recoveries as a dependable stream supporting 2027 growth. Q: Michael Grondahl asked about the dollar amount being invested in key strategic initiatives and whether any of it is one-off in nature. A: CEO Todd Schwartz said total investment could exceed $150 million when all is said and done, citing roughly $18 million in buybacks this year, a $42 million TRA that collapsed the FC structure, about $35 million to rebuild the operating and servicing system on Lola, the Bitty investment (with a call option coming in 2027), and the bank transaction. Q: Michael Grondahl asked about the $75 million drawn from the Castle Lake facility, including the interest rate and repayment flexibility. A: CEO Todd Schwartz said the rate is around 12%, but the facility was secured primarily for flexibility in the capital structure for 2027 and beyond, with payback flexibility. He noted OppFi had been paying down debt over the past couple of years and this largely replenishes the debt-to-equity ratio. Q: Michael Grondahl asked whether OppFi would use all cash for the roughly $130 million bank purchase price or take on other financing. A: CEO Todd Schwartz said the announced deal is 50% stock and 50% cash, so no financing is needed and the company has ample cash to complete the transaction. Q: Dave Storms of Stonegate asked what was learned from the initial line of credit rollout, including customer demand, and how those learnings might apply to the earned wage access product. A: CEO Todd Schwartz said the rollout has gone as expected, with additional marketing sources being added and plans to offer the product in existing states, providing data ahead of 2027. He said EWA has strong product-market fit for managing daily cash flows and offers marketing capabilities the installment product cannot access, and that scaling line of credit plus adding EWA is likely enough for next year. Q: Dave Storms asked whether anything from a macro or OppFi-specific standpoint might disrupt typical seasonality in 2027, ahead of Model 7 going live in Q4. A: CEO Todd Schwartz said Model 7's more accurate targeting drives higher conversions and will be included in the 2027 forecast. He noted 100% of net new volume now originates on the Lola platform, with the migration of existing customers substantially complete this year, giving confidence that OppFi will return to unit and origination growth trends in 2027. Q: David Scharf asked for granularity on how to model yields in Q4 and going forward in light of the pricing adjustments discussed. A: CEO Todd Schwartz said OppFi runs at a higher margin than most peers and would be comfortable reducing yield for higher-quality customers to win them, especially on partnership sites, while noting Q4 yield is expected to be flat year over year. He added that some competitors pay nearly double as a percentage of principal in acquisition costs, and OppFi has stayed disciplined on yields and acquisition costs while exploring new products and growth avenues. Q: David Scharf opened by noting Q3 results and commentary were very similar to three months ago and asked for an update on the quarter's trajectory. A: CEO Todd Schwartz credited the quarter as one of the most productive in company history on strategic execution, citing the line of credit launch, the Lola platform, the upcoming Model 7 underwriting model, and Bitty surpassing $1 billion in total funding since 2021. He reiterated that the share price does not reflect long-term intrinsic value and that OppFi intends to use its $40 million repurchase authorization when shares are undervalued. Q: Analysts pressed on credit performance given elevated losses in the quarter. A: CFO Pamela Johnson said net charge-offs rose to about 40% of revenue from 35% a year earlier and to about 53% of receivables from 47%, partly a denominator effect from slower growth. She said losses are broadly in line with historical averages, credit has reverted to the mean but is overall stable, and recoveries improved to about $15 million from $11 million, an area where OppFi believes it holds a distinct competitive advantage. Q: Analysts asked about the updated full-year 2026 outlook and long-term targets. A: CFO Pamela Johnson said OppFi refined 2026 guidance by adjusting the top end of the range, now expecting revenue of $600 million to $610 million, adjusted net income of $115 million to $120 million, and adjusted EPS of $1.34 to $1.40. She said expectations for 2027 and 2028 remain intact, including the long-term objective of approximately $3 of earnings per share by the end of 2028. Q: Analysts asked about capital return and balance sheet strength. A: CFO Pamela Johnson said OppFi ended Q3 with about $141 million in cash, equivalents and restricted cash, $350 million in total debt, $443 million in stockholders' equity, and $691 million in total funding capacity including $199 million of unused debt capacity. She said the company began repurchasing shares under the $40 million program in Q3 and intends to remain active when shares are undervalued. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Wednesday, Oct. 28, 2026 - Host - Jared Pollack - Executive Chairman and Chief Executive Officer - Todd G. Schwartz - Chief Financial Officer - Pamela D. Johnson Operator: Thank you for your continued patience. Your meeting will begin shortly. You need assistance at any time, please press 0, and the member of our team will be happy to help you. Good morning, and welcome to the OppFi Third Quarter 26 Earnings Conference Call. All participants are in a listen-only mode. As a reminder, this conference call is being recorded. Following management's presentation, a question and answer session will be held. For those listening by dial in, you will be prompted to enter the queue after the prepared remarks. I am pleased to introduce your host, Jared Pollack. You may begin. Jared Pollack: Thank you, operator. Good morning, and welcome to OppFi's Third Quarter 26 Earnings Call. Our Executive Chairman and CEO, Todd G. Schwartz, and CFO, Pamela D. Johnson, will present our financial results followed by a question and answer session. You can access the earnings presentation on our website at investors.opphi.com. During this call, OppFi may discuss certain forward looking information. The company's filings with the SEC describe essential factors that could cause actual results developments, and business decisions to differ materially from forward looking statements. Please refer to Slide 2 of the earnings presentation and press release for our disclaimer statement covering forward looking statements and references to information about non GAAP financial measures, which will be discussed throughout today's call. Reconciliations of those measures to GAAP measures can be found in the appendix to our earnings presentation and press release. In addition, certain important information related to the BNCC transaction will be included in the registration statement on Form S-4 filed by OppFi in conjunction with the transaction. Investors are encouraged to read the Form S-4 and other documents filed with the SEC in conjunction with the transaction. Please refer to the disclaimer information included in our earnings release. With that, I would like to turn the call over to Todd. Todd G. Schwartz: Thanks, Jared, and good morning, everyone. Thank you for joining us today. I will begin with a business update and then Pamela will walk through our strategic investments and third quarter financial results in detail. Q3 was 1 of the most productive quarters in our company's history in executing across key strategic initiatives. At the same time, we believe our current share price does not reflect the long term intrinsic value of the business. Our stock trades well below pure multiples on both a trailing and forward basis. When the market is not getting us credit for our investment, and long term earnings potential, we intend to utilize our board authorized $40 million repurchase program when we believe repurchases represent an attractive use of capital. First, an update on our pending acquisition of BNCC. On September 17, BNCC Corp stockholders overwhelmingly approved the transaction, leaving regulatory approval as the final step. We continue to work constructively with regulators on our bank merger applications and we remain confident the combination will benefit our customers through a broader product set and lower costs and BNCC's customers through enhanced digital banking capabilities. Next, I am pleased to share that we launched our new line of credit product with our bank partners in Q3. LOC expands credit access while responding to consumers' growing preference for more flexible products. We are beginning to scale it in new geographies and we will test it in existing markets to give customers more flexible options. We believe the product will also open new marketing funnel opportunities. Which we plan to test in Q4. We see considerable growth potential for LOC in 2027. We built and launched the technology behind LOC in less than 6 months. Thanks to our new LOLA platform. Its clean modular architecture lets our product and technology teams move faster, shortening development cycle times for new products and other initiatives, across originations, servicing and risk. The increased agility allows us to deliver more roadmap priorities and innovations at a faster pace. Our core installment, we--we continue to focus on affordability and supporting our program's reach. Our latest pricing initiative, Pricing Test 5, represents our most significant rate and payment reduction opportunity to date. Alongside flexibility, customers want more affordable payments and lower APRs. And we are responding by lowering monthly payments and rates for a large portion of customers. This initiative reflects a combination of macro conditions and competitive dynamics as well as insights from our customer data which suggests that offering more affordable monthly payments over longer durations can lead to improvement across key loss indicators. Early indicators are positive, and we expect this to support origination growth in Q4 and into 2027. Below the migration for our installment business, is progressing well. Substantially, all new customers now run on the new system. The next step is migrating existing customers and data which we expect to be substantially complete heading into 2027. LOLA has meaningfully strengthened our ability to launch and service multiple products. Shortened cycle times for product enhancements, compliance, and other workflows, and the LOLA platform now enables us to embed AI agents across originations and servicing workflows over time. We expect development of these capabilities to begin in 2027. and look forward to sharing updates as we progress. In Q4, expect to launch Model 7, our most powerful underwriting and targeting model yet. Early results show a 20% improvement in aligning marketing prescreening scores with our bank partners' established underwriting criteria, enabling us to make more accurate and better targeted offers to potential customers. Particularly on partner sites. When customers receive offers that more closely match the loan amount, they ultimately qualify for, application to funded rates are significantly higher. By improving our accuracy, we expect to drive higher conversion, and application to funded rates. The model is currently in validation, and we look forward to launching it this quarter. Lastly, Bitty, our small business funding investment, recently surpassed $1 billion in total funding since 2021, marking a significant milestone in its growth. During the quarter, Bitty launched a new premier funding product as part of its strategy to become a full spectrum small business funder. The offering expands Bitty's competitive reach into the near-prime segment providing larger funding amounts, more attractive pricing, and longer repayment terms. Allowing Bitty to compete more effectively across a broader range of small business customers. Bitty is also advancing its AI and automation strategy across the entire funding cycle. From underwriting and credit decisioning to funding and servicing. These initiatives are designed to streamline the customer experience accelerate decision making, enhance portfolio performance, and create a more efficient, scalable operating platform. Early results are encouraging, and we believe the combination of expanded market reach AI driven innovation, and a scalable operating platform creates a compelling opportunity for Bitty to accelerate growth in 2027. and beyond. Taken together, this was an important quarter of progress in building the foundation of OPPHI's next phase of growth. We are well underway in strategically transforming the business. Investing more than $150 million this year to support continued growth on our path to our objective of $500 million in adjusted net income within 5 years. We remain focused on our vision of becoming a leading technology enabled bank platform that provides essential credit access and community banking services to everyday Americans and businesses. With that, I will turn the call over to Pamela. Pamela D. Johnson: Thanks, Todd, and good morning, everyone. I want to build on Todd's comments regarding the quarter. Higher for longer inflation and subdued consumer sentiment continue to affect our customer base. Which tends to be disproportionately impacted relative to the broader population. Against this backdrop, we remain focused on maintaining a strong balance sheet with healthy profit margins over shorter term volume growth. OppFi has repeatedly demonstrated throughout its history with disciplined underwriting, strong credit performance, superior unit economics, and sustainable profitability create more long term value than pursuing growth at any cost in the near term. Turning to our financial performance for the third quarter. We generated revenue of $149 million, a 3.8% decrease from Q3 25. Originations for the quarter decreased by approximately 7% to $229 million compared to the prior year quarter, primarily driven by tightened marketing partner screening criteria. We expect the introduction of model 7 to help improve future performance. While credit losses are elevated compared with the prior year period, net charge offs as a percentage of average receivables remain broadly in line with the historical averages. Driven in part by our strong recoveries. Net charge offs as a percentage of revenue during the quarter increased to 40% from 35% in the prior year period. And net charge offs as a percentage of receivables increased to 53% from 47% in the prior year period. Given the denominator effect, these charge off metrics appear inflated in times of slower growth. Moreover, we saw a reversion to the mean and credit, but note we believe it is overall stable. Importantly, these charge offs are partially offset by a meaningful improvement in recoveries, an area where we believe we maintain a distinct competitive advantage. Recoveries increased to approximately $15 million from $11 million in the prior year period. We continue to closely monitor consumer payment behavior and adjust our underwriting posture with agility as conditions evolve. And we remain confident that the actions we have taken position the portfolio for stronger performance over time. Operating expenses remained well controlled, as we continue to balance investment and strategic initiatives with disciplined expense management. Total adjusted operating expenses were $52 million or 35% of revenue compared with 34% in the prior year period. On an unadjusted basis, including onetime expenses related to the BNCC transaction, Expenses were 37% of revenue compared with 36% of revenue in the prior period. While we continue investing in strategic initiatives, particularly those related to the BNCC transaction and platform development, we maintained a disciplined expense management across the rest of the organization. Taken together, adjusted net income decreased by 23% in the third quarter to $32 million compared to the prior year period. And adjusted earnings per share decreased to $0.37 from $0.46 in the prior year period. Looking at the balance sheet, we continue to maintain a robust financial position, ending the quarter with approximately $141 million in cash, cash equivalents and restricted cash, alongside $350 million in total debt $443 million in total stockholders' equity. Our total funding capacity was $691 million at quarter end, including $199 million of unused debt capacity. The strong liquidity position and balance sheet flexibility continues to provide a solid foundation for our capital allocation strategy and long term growth objectives. On capital allocation, our balance sheet remains a significant source of strength. Our business continues to generate meaningful free cash flow, allowing us to invest in growth initiatives while simultaneously returning capital to shareholders. During the quarter, we began repurchasing shares under the Board authorized $40 million repurchase program. Reflecting our belief that the current valuation does not appropriately reflect the long term earnings potential of the company. As Todd mentioned, we intend to remain active in repurchasing our shares when we believe they are undervalued. With greater visibility into the remainder of the year, we are refining our full year 2026 guidance by adjusting the top end of the range. We now expect total revenue of $600 million to $610 million adjusted net income of $115 million to $120 million and adjusted EPS of $1.34 to $1.40 Moreover, our confidence in the long term earnings potential of the company remains unchanged. Our expectations for 2027 and 2028 remain intact. And we continue to believe OppFi is building a stronger, more diversified, and more valuable platform. We remain confident in our path toward achieving our long term objective of approximately $3 of earnings per share by the end of 28. With that, I will now turn the call over to the operator for Q&A. Operator? Operator: A question, press 1 on your keypad. To leave the queue at any time, press 2. Once again, that is *1 to ask a question. And we will take our first question from David Scharf with Citizens Capital Market. Please go ahead. Your line is now open. David Scharf: Hi, thanks. Good morning, and thanks for taking my questions. Todd, maybe to start, just kind of a high level broad question. It sounds like both the actual results of the quarter as well as the commentary was very similar to, you know, what we heard 3 months ago. And I. You know, I am just wondering, is there any--as you have done more research into maybe just some of the headwinds in volumes, Is there anything incremental from a quarter ago that you feel more comfortable getting your arms around as it relates either to the consumer preference, competitive products, just any. Anything that you can potentially add? Todd G. Schwartz: Yeah. I mean, I think the fact that we launched our line of credit product, we are very excited about it. You know, we are seeing you know, in the competitive landscape, a lot of growth in the line of credit product. From. You know, we are going to. It opens up new geographies, but also some of the marketing capabilities of it. Customers--you know, there is a subset of customers that prefer the flexibility. You know, especially in this environment, over the more stringent nature of the installment product. Provides customers the ability to draw more frequently. And, you know, we are very encouraged by the early you know, testing, and now it is fully launched so that we are going to have that as a growth lever for next year. So that is that is pretty considerable. We are also--we--we are on for the product road map for next year. I did not really talk about it much. On this, you know, earnings call. But you know, we were encouraged by some of the product road map initiatives we have. We are looking at, earned wage access as another complement to the line of credit product for next year and figuring out the best way for us to get that in market next year. So you know, we are encouraged by that. We are also being cautious. I just--you know, a little bit more cautious probably than most. We are undergoing you know, a significant strategic transaction with banks. We want to keep our balance sheet. You know, we have about a $140 million of cash we are sitting on. So you know, and I think that the stock is trading at a really unfair multiple for the amount of strategic initiatives and growth potential that the company has. But we are positioned really well with a lot of optionality for growth in 2027. And think, you know, listen. I would credit for the quarter although, you know, slightly elevated on the gross side, you look at our recoveries, it is a really strong story, so we are very encouraged by that. When looking at the unit P&L and looking at growth going ahead for the future, our, you know, our recovery stream has really been dependable and growing, and it gives us confidence to grow in 2027. David Scharf: Got it. Thank you. And maybe just, as a follow-up, is there any I guess, granularity you can provide on how we should be thinking about modeling yields either in the fourth quarter or going forward? You know, in lieu of the pricing adjustments you discussed? Todd G. Schwartz: I think you know, what--1 thing that we are comfortable. We have a very high margin. We run at a higher margin, you know, than most of our peers. And feel that you know, obviously, new product initiatives and marketing are part of, you know, getting back to some of the growth on units and originations. But it is also product marketing. right? Offering customers meeting them with a price and term that matches their risk profiles. Right? And so I think, you know, we would be comfortable reducing yield for higher quality customers to be able to you know, recruit them and especially in some of these partnership sites. But it is not gonna, you know, largely be impacted, you know? And Q4 was flat year over year. But it is something we are looking at. In addition to acquisition costs, we know that in our peer set, you know, a lot of competitors are paying So it is in some cases almost double as a percentage of principal that we pay. So we have been very disciplined on keeping yields strong and, you know, our acquisition cost. But it is something we are looking at in addition to you know, like I said, new products and finding new ways to grow. David Scharf: Got it. Thank you very much. Operator: Thank you. We will take our next question from David Joseph Storms with Stonegate. Dave Storms: Good morning, and thank you for taking my questions. Todd G. Schwartz: Todd, I want to start with the line of credit product. Maybe just any more you could tell us about what you learned from the initial rollout. Anything around customer demand? And then also, maybe more specifically, the learnings as they might apply to that earned wage products. Any other products going forward. Love to hear more about that. Dave Storms: Yeah. I mean, the rollout, has gone as we are starting to add additional marketing sources. And we are we are also starting to plan for offering it in existing states as well, as I mentioned. So we are, you know, we are excited about, you know, starting to scale that in the next 2 months of the year to. And it will give us a lot of good data and learnings. Going into 2027 as we start to put our forecast together. So encourage And that, you know, the team did a great job. I think it was. We announced it was slightly delayed, but, you know, after that slight delay, the team came together and got it got it, you know, launched in Q3, which was a big milestone for us. earned wage access is something that is a we think, it is not only a product that has a lot of product market fit. We are seeing a lot of customers using it in their daily lives to manage cash flows. But we think that it also just you know, has a lot of marketing capabilities. That some of our installment product that is not eligible for. So we are excited about that more mainstream opportunities on the marketing side. Right now, we--you know, we are thinking that is probably gonna be you know, enough for us next year, getting line of credit scaled and adding an earned wage access product. There are other products out there that know, we will be looking at and considering, but nothing to report as of now. that is great. I really appreciate that. Todd G. Schwartz: And then just looking into 2027, I know, you are obviously not giving guidance at this point. But with Model 7 hopefully being up in Q4, is there anything you can see there from a macro standpoint or an OppFi specific standpoint that might, throw a wrench in the typical seasonality. that you tend to see? No. I mean, you know, like, you know, 1 of the benefits of the model's strength, the ability to more accurately target customers for, you know, their. what segment they fall in and kind of target, their the loan amount or advanced amount on the on the line of credit that they are looking for. We found that the targeting customers more accurately provides for higher conversion. So we are we are excited to get that validated and rolled out. That will be included, obviously, in our in our forecast for 2027. But, no, there is--you know, we are continuing to believe that a lot of these strategic initiatives, including, you know, the LOLA migration, which is, you know, we are we are originating a 100% of our new. Net new volume through this system now. And we will soon. You know, we will be finishing up the migration substantially this year, which will give us a lot of opportunities in our product road map initiatives. Going into next year. So we feel confident we are gonna get back to our you know, growth trends on a unit and origination basis for 2027. Dave Storms: that is perfect. Appreciate the commentary, and good luck in the next quarter. Thank you. Operator: Thank you. We will take our next question from Mike Grondahl with Northland. Please go ahead. Your line is now open. Mike Grondahl: Hey, thank you. So I am looking at Slide 6, and it is kind of titled investment in key strategic initiatives. Can you kind of talk through the dollar amount you are investing in those initiatives And is there anything to call out that sort of 1 off, or is this sort of just part of running the business? Todd G. Schwartz: I am not. I do not have slides 6 in front of me, but, I can kind of talk about it at a high level. It--what is the what is the dollar amount it is referencing? Mike Grondahl: Yeah. The investments that you are making in strategic initiatives. Todd G. Schwartz: Yeah. The 150 million. Yeah. Well, you know, starting you know, the company, you know, has almost bought back almost $18 million this year. So far, we had a $42 million TRA which collapsed the FC structure. You know, the contemplated the system the LOLA system, is another $35 million of investment to rebuild our whole operating and servicing system. We have we made an investment into Bitty, which, we have a call option coming. In 2027 and then also the bank transaction. So if you kind of add it all together, it probably even it probably even might be over a $150 million, when all said and done. Mike Grondahl: Got it. And then on the bank transaction, I think last quarter when you announced it, you kind of thought you would, you know, have this sort of nailed down by year end. Any updates to that timing, or does that does that still feel good? Todd G. Schwartz: Yeah. I mean, listen. We are continuing to, you know, respond to regulators promptly. Qualitatively, and quantitatively. And you know, we are we are ready to continue to respond and work with them. You know, we are hopeful we can get this resolved. By, you know, Q4 if it does, you know, leak or bleed into Q1, of 2027, you know, we will we will provide those updates when they come available. But, you know, we continue to you know, work on the application and feel like our app from. For. On a merit basis, you know, it remains strong. And, you know, continue to feel like we are giving, really solid qualitative and quantitative answers to our regulators. Mike Grondahl: Got it. And then the $75 million drawn from that Castlelake facility, Can you remind us the interest rate on that and kind of the flexibility? If you end up not needing it, can you pay it back right away? How does that fit into your plan? Todd G. Schwartz: Yeah. I mean that is more of just a financing to allow for more flexibility in our in our capital structure and balance sheet. The interest rate is somewhere around 12%, but, we were more focused on allowing for a lot of flexibility of payback. To allow for flexibility in our capital structure. For 2027 and beyond. So, you know, it is something that positions us in our balance sheet, you know, very well going into 2027 To provide that optionality. Mike Grondahl: Got it. Okay. Thank you. And another thing, you know, to mention is we have been paying debt down over the years, and this was just kind of replenishing it. If you look at actually the last couple of years, you know, we have we have been on a trend of delevering. The business. You know, from a debt to equity ratio. So you know, we--this is really just kind of replenishing it. Okay. And then maybe just 1 more. You know, I think the purchase price of the bank is about a $130 million. Would you use all cash for that Or is there some other financing you would take on? Can you talk about how you envision that? Todd G. Schwartz: Yeah, and I mean, currently, the deal that was announced is 50% stock, 50% cash. You know? So there is there is no there is no financing needed We have ample amount of cash. To fulfill the transaction. Sure. Okay. Hey, thanks for that. Yep. Operator: Thank you. There are no further questions. And this brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect. Before you buy stock in OppFi, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and OppFi wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $337,166!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,339,143!* Now, it's worth noting Stock Advisor's total average return is 904% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of October 28, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. OppFi (OPFI) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

- Interested in OppFi Inc.? Here are five stocks we like better. - Third-quarter results declined: Revenue fell 3.8% year over year to $149 million, originations dropped 7% to $229 million, and adjusted net income declined 23% to about $32 million as OppFi maintained tighter underwriting. - Credit pressure remains elevated but manageable: Net charge-offs increased as a percentage of revenue and receivables, though management characterized overall credit performance as stable and highlighted improved recoveries of approximately $15 million. - OppFi is investing for future growth: The company launched a bank-partnered line-of-credit product, expanded its LOLA technology platform and plans to introduce an updated underwriting model. It also lowered the high end of its 2026 outlook and expects the pending BNCC acquisition to close in the fourth quarter or early 2027. - SoFi Stock's Next Test: Can It Justify Its Premium Valuation? OppFi (NYSE:OPFI) reported lower third-quarter revenue, originations and adjusted earnings as the company maintained a cautious underwriting posture amid continued pressure on its consumer customer base. Management said it is investing in new products, technology and a pending bank acquisition to support growth in 2027 and beyond. Revenue for the third quarter totaled $149 million, down 3.8% from the prior-year period. Originations declined about 7% to $229 million, which Chief Financial Officer Pam Johnson attributed primarily to tightened screening criteria for marketing partners. Adjusted net income fell 23% to approximately $32 million, while adjusted earnings per share declined to $0.37 from $0.46 a year earlier. → Comfort Systems Earnings: AI Slowdown or More Growth Ahead? - 4 AI-Powered Fintechs Revolutionizing the Future of Finance "Higher-for-longer inflation and subdued consumer sentiment continue to affect our customer base," Johnson said, adding that the company is prioritizing balance-sheet strength and profit margins over near-term volume growth. Net charge-offs remained elevated from the prior-year quarter. Net charge-offs as a percentage of revenue rose to about 40% from 35%, while charge-offs as a percentage of receivables increased to about 53% from 47%. Johnson said those percentages can appear elevated during periods of slower growth because of the denominator effect, and described credit performance overall as stable. → A 70% Rally Isn't Chord Energy's Only Selling Point - Tech Earnings Insights: Where Opportunity Meets Uncertainty OppFi also reported improved recoveries, which increased to roughly $15 million from $11 million in the prior-year period. Management said recoveries remain a competitive advantage and provide confidence in the unit economics supporting future growth. Adjusted operating expenses were approximately $52 million, or 35% of revenue, compared with 34% a year earlier. On an unadjusted basis, including one-time costs related to the pending BNCC transaction, expenses were 37% of revenue, compared with 36% in the prior-year period. → Not All Tech Is Getting Crushed: 5 Names Holding Up Through the AI Sell-Off The company ended the quarter with approximately $141 million in cash equivalents and restricted cash, $350 million of total debt and $443 million in total stockholders' equity. Total funding capacity stood at $691 million, including $199 million of unused debt capacity. Executive Chairman and CEO Todd Schwartz said OppFi launched its line-of-credit product with bank partners during the third quarter. The product is being expanded into new geographies and tested in existing markets, with additional marketing funnel tests planned for the fourth quarter. Schwartz said the line of credit gives consumers more flexibility than installment loans and could become a significant growth lever in 2027. OppFi built and launched the product's technology in less than six months through its new LOLA platform, according to management. Substantially all new installment-loan customers now use the LOLA system. OppFi expects migration of existing customers and data to be substantially completed heading into 2027. The company said the platform is intended to accelerate product development, servicing, compliance and other workflows, and could support the introduction of artificial intelligence agents across originations and servicing beginning in 2027. OppFi also plans to launch Model 7, its updated underwriting and targeting model, in the fourth quarter following validation. Schwartz said early results showed a 20% improvement in aligning marketing pre-screening scores with bank partners' underwriting criteria. The company expects the model to improve targeting, conversion and application-to-funded rates. Management said it is also considering an earned wage access product for 2027. Schwartz said the company views earned wage access as both a product with customer demand and an opportunity to access marketing channels that may not be available for some installment-loan offerings. BNCCORP stockholders approved OppFi's pending acquisition of BNCC on Sept. 17, leaving regulatory approval as the final required step, Schwartz said. Management said it continues to work with regulators and remains hopeful the deal can close in the fourth quarter, though it could extend into the first quarter of 2027. Schwartz said the announced transaction is structured as 50% stock and 50% cash, and that OppFi has sufficient cash to complete the purchase without additional financing. He also said the company drew $75 million from a Castlelake facility carrying an interest rate of around 12%, describing the financing as a source of flexibility for its capital structure. The company has been deleveraging over recent years, he said, and the facility replenishes balance-sheet capacity. OppFi began repurchasing shares during the quarter under its board-authorized $40 million repurchase program. Management said it expects to remain active when it views the shares as undervalued. The company refined its 2026 outlook by lowering the top end of its ranges. OppFi now expects: - Total revenue of $600 million to $610 million; - Adjusted net income of $115 million to $120 million; and - Adjusted earnings per share of $1.34 to $1.40. Management said its expectations for 2027 and 2028 remain unchanged, including its objective of approximately $3 in earnings per share by the end of 2028. Schwartz said OppFi has invested more than $150 million this year across initiatives including share repurchases, a tax receivable agreement, the LOLA platform, Bitty and the bank transaction. Bitty, OppFi's small-business funding investment, surpassed $1 billion in total funding since 2021 during the quarter. Bitty also introduced a premier funding product aimed at near-prime customers, featuring larger funding amounts, more attractive pricing and longer repayment terms. OppFi Inc is a financial technology company that provides access to credit for consumers who may have limited or impaired credit histories. Through its digital platform, the company offers personal installment loans and related financial products designed to provide borrowers with a structured repayment schedule and access to funds for everyday financial needs. OppFi's primary brand, OppLoans, uses technology and data-driven underwriting to deliver financial services online. The company has also offered products such as the OppFi Card and other credit-building or cash-flow management solutions, subject to availability and applicable regulatory requirements. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "OppFi Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

Image source: The Motley Fool. Monday, Aug. 10, 2026 at 5 p.m. ET Investor Relations - Jared Pollack Executive Chairman and Chief Executive Officer - Todd Schwartz Chief Financial Officer - Pamela Johnson Operator: Good afternoon, and welcome to OppFi's Second Quarter 2026 Earnings Conference Call. As a reminder, this conference is being recorded. I am pleased to introduce your host, [ Jared Pollack ]. You may begin. Jared Pollack: Thank you, operator. Good afternoon, and welcome to OppFi's Second Quarter 2026 Earnings Call. Today, our Executive Chairman and CEO, Todd Schwartz; and CFO, Pamela Johnson, will present our financial results, followed by a question-and-answer session. You can access the earnings presentation on our website at investors.oppfi.com. During this call, OppFi may discuss certain forward-looking information. The company's filings with the SEC describe factors that could cause actual results, developments and business decisions to differ materially from forward-looking statements. Please refer to Slide 2 of the earnings presentation and press release for our disclaimer statement covering forward-looking statements and references to information about non-GAAP financial measures, which will be discussed throughout today's call. Reconciliations of those measures to GAAP measures can be found in the appendix to our earnings presentation and press release. In addition, certain important information related to the BNCC transaction is included in the registration statement on Form S-4 filed by OppFi in conjunction with the transaction. Investors are encouraged to read the Form S-4 and other documents filed with the SEC in conjunction with the transaction. Additionally, OppFi and BNCC and their directors and officers may be deemed to be participating in a solicitation of proxies in favor of the proposed merger. Please refer to the disclaimer information included in our earnings release. With that, I'd like to turn the call over to Todd. Todd Schwartz: Thanks, Jared, and good afternoon, everyone. Thank you for joining us today. I'll first share a business update, and then Pam will review our strategic investments and Q2 financial performance in detail. While Q2 fell short of our original financial expectations, we believe it was one of our most productive quarters from a strategic standpoint. We invested meaningfully in testing new products and improving existing products with the goal of strengthening our competitive positioning. We also took the additional time needed to refine our LOLA system, laying what we believe to be a strong foundation for future growth and efficiency. That work pushed back rollout by a few months, but we're encouraged by the results and remain confident in our ability to hit our long-term financial targets. I will provide more detail on new product initiatives later in my remarks. First, I'd like to provide an update on our pending acquisition of BNC National Bank. We're pleased to announce that we've officially submitted our regulatory applications to the OCC and other governing agencies. We look forward to working with regulators throughout the approval process and aim to close the transaction in Q4 of this year. We're excited to work with the BNC team to integrate and build the strongest possible strategic footprint, expanding product offerings, consumer choice and credit access, while reducing costs for our customers and extending community banking access to more of them. We'll provide further updates on this throughout the year. Next, I'd like to highlight an important development at OppFi, the upcoming line of credit launch with one of our bank partners. During the second quarter, we completed extensive testing around pricing, term structure, and customer behavior, and we are very encouraged with the results. The testing reinforced our belief that the line of credit product fills an important need for consumers, particularly during macro periods when affordability and monthly payment flexibility become increasingly important. Customers are increasingly gravitating towards products with lower monthly payments but longer repayment terms, as these options offer greater affordability and cash flow flexibility on a month-to-month basis. That preference was reflected in our testing results and reinforces why the line of credit product is such an important addition to our platform. The testing demonstrated meaningful opportunities to drive additional growth from both new and existing customers while diversifying our product offerings. We expect to launch the line of credit product next month. That timing was intentional and reflects a deliberate measure twice, cut once approach. Before its launch, we wanted to be fully confident in its pricing structure, customer experience, conversion dynamics and expected performance. With testing now complete, we feel good about its readiness. The technical aspects of this product will have been developed and brought to market in under 6 months, a relatively short period of time. This is made possible by our new modular technology platform. Beyond enabling this launch, the modular platform creates a scalable foundation for future product innovation, allowing us to develop and introduce new offerings more efficiently. As a result of the slight timing shift in both the line of credit launch and LOLA migration completion, originations came in below our original expectations during the quarter. Accordingly, we are revising our 2026 guidance. Our expectations for 2027 and 2028 remain unchanged, and we continue to believe we are on a path towards achieving approximately $3 of earnings per share by the end of 2028. Taken together, this has been an important quarter of progress for OppFi in laying the foundation for growth. We are well underway in our effort to strategically transform the business, investing more than $150 million this year to enable continued growth on our path to achieve $500 million of adjusted net income in the next five years. We remain focused on executing our shared vision of becoming a leading technology-enabled bank platform that offers essential credit access and community banking services to everyday Americans and businesses. With that, I'll turn the call over to Pam. Pamela Johnson: Thanks, Todd, and good afternoon, everyone. I want to build on Todd's comments regarding the quarter and our updated outlook. While we continue to see some variability in consumer credit trends, we are prioritizing balance sheet strength, unit economics and margin stability over shorter-term volume growth. OppFi has demonstrated throughout its history that disciplined underwriting, strong credit performance and sustainable profitability create more long-term value than pursuing growth at any cost in the near term. Importantly, we continue to direct our focus toward building the foundation to unlock new long-term growth and our planned acquisition of BNC is expected to be financially transformative. We anticipate significant revenue synergies beginning in 2027 as we expand our ability to deliver a broader suite of financial products across the larger geographic footprint. These synergies are expected to be driven primarily by geographic expansion and cross-selling opportunities. In addition, we believe OppFi will be able to leverage BNC's capabilities and relationships to further grow our existing business lines. The combination of OppFi and BNC is expected to create a banking organization with capital levels well in excess of regulatory and market standards. Looking ahead to 2028, we expect the combined company to generate return on assets at least 10% and returns on equity of at least 35%. Turning to our financial performance for the second quarter, we generated revenue of $145 million, a 1.9% increase over Q2 2025, and a company record for any second quarter. Originations for the quarter decreased by 9% to $212 million compared to the prior year quarter, as we tightened underwriting in segments where we believe risk-adjusted returns were less attractive. These actions were designed to help preserve portfolio quality and support long-term profitability. Net charge-offs as a percentage of revenue during the quarter increased to approximately 40% from 32% in the prior year period. And net charge-offs as a percentage of receivables increased to 52% from 43% in the prior year period. Given the denominator effect, these charge-off metrics appear inflated in times of slower growth. Importantly, these charge-offs are partially offset by a meaningful improvement in recoveries, an area where we believe we maintain a distinct competitive advantage. Recoveries increased to approximately $15 million from $11 million in the prior year period. We continue to closely monitor consumer payment behavior and adjust our underwriting posture with agility as conditions evolve. And we remain confident that the actions we have taken position the portfolio for stronger performance over time. Operating expenses remained well controlled as we continue to balance investment and strategic initiatives with disciplined expense management. Total adjusted operating expenses were approximately $49 million or 34% of revenue, down slightly from 35% in the prior year period. On an unadjusted basis, given one-time expenses related to the BNC transaction and corporate simplification, expenses were 43% of revenue compared with 39% of revenue in the prior year period. While we continued investing in strategic initiatives, particularly those related to the BNC transaction and platform development, we maintained disciplined expense management across the rest of the organization. Taken together, adjusted net income decreased by 27% in the second quarter to approximately $29 million compared to the prior year period. And adjusted earnings per share decreased to $0.33 from $0.45 in the prior year period. Despite that, our adjusted net income margin remained strong at 19.8%. Looking at the balance sheet, we continue to maintain a robust financial position, ending the quarter with $92 million in cash, cash equivalents, and restricted cash, alongside $277 million in total debt and $414 million in total stockholders' equity. Our total funding capacity was $541.8 million at quarter end, including $173.5 million of unused debt capacity. With strong liquidity position and balance sheet flexibility, it continues to provide a solid foundation for our capital allocation strategy and long-term growth objectives. On capital allocation, our balance sheet remains a significant source of strength. Our business continues to generate meaningful free cash flow, allowing us to invest in growth initiatives while simultaneously returning capital to shareholders. During the quarter, we began repurchasing shares under the Board-authorized $40 million repurchase program, reflecting our belief that the current valuation does not appropriately reflect the long-term earnings potential of the company. Given the timing shift in our launch of the line of credit product and completion of LOLA system migration, we are revising our full 2026 guidance to total revenue of $600 million to $625 million, adjusted net income of $115 million to $130 million and adjusted EPS of $1.34 to $1.51. While we are reducing our near-term outlook, our confidence in the long-term earnings potential of the company remains unchanged. Our expectations for 2027 and 2028 remain intact, but we continue to believe OppFi is building a stronger, more diversified and more valuable platform. We remain confident in our path toward achieving our long-term objective of approximately $3 of earnings per share by the end of 2028. With that, I will now turn the call over to the operator for Q&A. Operator? Operator: [Operator Instructions] We'll take our first question from David Scharf from Citizens Capital Markets. David Scharf: Todd, wondering if you can provide just a little more color on sort of your assessment of what you're seeing from your consumers vis-a-vis credit and what led to the tightening. Obviously, it's been another earnings season where there's been some pretty broad-based constructive commentary from most lenders about consumer resiliency in the face of inflation and whatnot. And maybe if you can just share a little more on what led to some of the tightening that you enacted in the quarter? Todd Schwartz: Yes, I mean, we actually -- it actually started last summer when we saw some consumer sentiment. Listen, I think if you look at the average in the last 4 years, the charge-offs are -- we had a really strong 2-year window there and we're still seeing some reversion on that back to -- but with our risk-based pricing and with some of the term testing we're doing, one of the things I mentioned in my remarks is that the affordability is becoming very, very important for the consumer. So consumers are opting for more total costs to keep their monthly payments affordable. And we need to be responsive to competition and to what others are providing in the marketplace. And I think that's why we're so excited about the line of credit product. There's also things we can be doing on installment better to better serve our customers. I think if you're getting the payment-to-income wrong with customers, that is the fundamental rule of underwriting. You're going to cause more customer delinquency or less repayments overall. I think with our risk-based pricing and some of our term and some of our new marketing initiatives, we feel like really, really good for the second half that we're going to start to grow again and start to get that back on track. There were some head fakes with the war and everything going on, but we feel, like, from our business standpoint, we can operate in any environment. And I think that if you look at our margin and our balance sheet, that was prioritized with everything going on with the transformation and the bank acquisition, it was prioritized, but we're getting back to growth now. And we think that there's a lot of opportunity. We're seeing some competitors provide some more affordability on the payments to allow for more growth. And so we think we can be very competitive and bring something to market that customers are going to be successful with. David Scharf: Got it. Understood. And maybe as a follow-up, as we think about the second half outlook, and the guidance reduction, is there a way to give us a sense for how much of that is related to the sort of a lower starting point in balances that you're exiting Q2 with and the delayed -- and maybe 1 month delay in rolling out kind of LOLA and line of credit. That being sort of one bucket and maybe the other could just be everything else, whether it be changes in loss rate assumptions, fair value, how much of it's just kind of the Q2 tightening and lower jumping off point versus are there any other factors that we should be aware of that's behind the guidance? Todd Schwartz: Yes, I mean, we've been operating in this credit environment now for over a year, so we're comfortable with where we're at there and see stability. It's really geared towards the late onset of some of the growth initiatives that we've had. In the second quarter, we're making great progress. I mean from a financial growth perspective, the way it reports out to you guys and the Street in this small 3-month window, it shows that we're growing. But when I think about what we're doing on a daily basis with the teams and the product initiatives, the migration, everything's going very well. And we think that we're just -- the business is going to -- we're trying to retool business to set this thing up for a much larger scale multi-product platform. And so it is definitely kind of more of a late onset situation where we're not getting the line of credit in market as soon as we thought we would. And then also some of the migration things with data that we're working through to make sure that we're taking -- I think I said it in my commentary, measure twice, cut once approach and making sure -- and while keeping the balance sheet strong. Operator: We'll take our next question from Dave Storms with Stonegate Capital Partners. Maximus Alexander-Nino: This is Maximus. I'll be asking questions for Dave Storms today. Just wanted to start off on LOLA. As the platform gets further rolled out in the second half of the year, kind of just wondering where you think the biggest benefit will be first. Is it more -- better conversion, servicing efficiencies, recoveries? Or if you have any other color, that would be great. Todd Schwartz: Yes, we think it -- I think one of the benefits you're going to be seeing here is we have a new product coming to market in less than 6 months. And that's because it was completely built on the new system, which took advantage of our modular architecture and all the benefits of it. We didn't have to go into the legacy system at all to be able to develop it as a new product. And so that's one of the biggest things. I'm excited about is cycle time for development and bringing things to market. And from a product standpoint, being able to work on things in a much faster clip. Our goal is to reduce our cycle times by 70% over the next year. And so that is -- also, it will allow us to push on some of these automated -- we actually made progress in the quarter. Our automated approval rate was up into the 80s first time the company has achieved that. So we're continuing to make progress even on the legacy system, but this will unlock us to our ability to start to move those metrics higher and better service our customer. We think that the cycle time from app-to-fund for some of the more manual applications is going to go down significantly. So that's another benefit of the new system. Maximus Alexander-Nino: I appreciate that. And then lastly, wanted to get a little bit more color on the line of credit as well. You had mentioned the testing that happened this past quarter. And I just wanted to see if you could dive in deeper into more of the findings or the discoveries that you guys have found out? And also wanted to see if the LOC, the line of credit, is more -- going to be more specifically for new customers or as well, current customers as well? Todd Schwartz: Yes, good question. Well, first of all, I think the way customers can draw on their lines and the flexibility of when they draw, as opposed to kind of the installment right now is done at a refinance or if someone's paid in full, they would reloan out. So that ability to draw smaller increments over time and give the customer the flexibility of when they choose to do that, also coupled with the payment stream being a little bit longer dated to allow for more affordability of monthly payment. So we feel like those 2 aspects of this are really going to do a great job to respond to kind of some of the market dynamics we're seeing. We're -- one of the things we will be testing is what customers select in a market where we're going to offer both. That isn't in the original launch plan. The original launch plan will allow for 3 new geographies for us to offer a line of credit to customers, so net new customers. But soon after, we will be in market with -- where customers can choose which product they desire and what best fits their financial needs. And so we'll -- as we run those tests, we'll be updating everyone with the results and kind of see where we think that the market -- the new product fits best in the market. Operator: We'll take our next question from Mike Grondahl with Northland Securities. Mike Grondahl: With the reduced outlook, just trying to understand between the line of credit product and the LOLA migration. Are those both about a month delayed? Trying to understand that a little bit better. And then revenue outlook down probably $40 million to $50 million, adjusted EPS about $0.40 at the midpoint. Is that more LOC versus LOLA? Just trying to understand the breakdown there because it's kind of big numbers for these 2 delays. Todd Schwartz: Yes, I mean, we -- the line of credit, like I said, opens up to 3 new geographies. And we think there's meaningful volume to come out of it. So every month that it gets delayed, it obviously impacts our origination targets. I do think though that on the LOLA side, less, it's less about that. It has delayed some of our product initiatives. So the way it would hurt originations for the LOLA is we are originating new loans into the LOLA system. It's the legacy products and it's the product initiatives that we have scheduled, but we're not able to enact because of the delay in the system. And so those are high ROI initiatives that we know will result in -- boost in origination growth. So when you couple that with the LOC and the delays, that is the reason for bringing down some of the origination targets. I do, however, feel though that we are hitting on some things now and I do feel like, we're going to be able to return to growth in the second half with some of the things we've been working on throughout the quarter and the testing with our customer intelligence. Mike Grondahl: Got it. And is it -- are you characterizing it as a 1-month delay, or how would you describe the LOC delay in terms of time? Todd Schwartz: Yes, our goal is to get this in market in September. So that would effectively be a 2-month delay from where we originally planned. But we feel pretty confident now that we're getting a lot closer and feel that there's a high likelihood that we can get this thing launched in September, which is exciting. Mike Grondahl: Got it. And then lastly net charge-offs on average receivables, 52% from 43%. On revenue, 40% versus 32%, I mean, despite that, I think you're kind of saying the credit environment is pretty stable. It's nothing that you're worried about. But those increases seem kind of significant. Could you just reconcile that for us? Todd Schwartz: Yes, I mean, listen, I think, first of all, our recoveries are doing from a percentage -- not only on a dollar basis collecting more, but as a percentage as well. So the net number, those are real, the recoveries. But what I will say is if we were growing at 9%, 10%, those numbers come down to about 500 basis points, right? So the 40% comes down to 35%. So there is some elevation. We acknowledge that, and we have talked about that over the last 2 quarters from the lows of early '25. But I do think it's a little bit exacerbated because of our -- on the origination side, a little bit of slower growth. So it exacerbates those numbers a little bit from our standpoint. But we are very happy to see this strong performance and recoveries, which always is welcome when looking at the total picture. Mike Grondahl: Lastly, I guess any update on the bank merger? Todd Schwartz: Yes, I mean, all I can say, we're in the middle of our comments here. So all I can really say is we've submitted our application and are working with the regulatory agencies at this time. As soon as we have updates to provide, we will in the coming quarters. But as of now that's -- we can't really comment on it more to say than we've submitted our business application and are working with the regulatory agencies. Mike Grondahl: Got it. Is it reasonable to still think by year end? Has that timeline changed in your guys' view at all? Todd Schwartz: Yes, I mean, I would like to think so. We're ready to fulfill on that timeline. Obviously, it's a little bit out of our control, but that would be our plan as of now is Q4. Operator: Thank you. This concludes our question-and-answer session and brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect. Before you buy stock in OppFi, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and OppFi wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,511!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,960!* Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 216% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 17, 2026. This article is a transcript of this conference call produced for The Motley Fool. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management characterized Q2 as a highly productive strategic period despite missing financial expectations, focusing on product testing and the LOLA system migration. Performance was impacted by a deliberate 'measure twice, cut once' approach to new product launches, prioritizing pricing and conversion readiness over speed to market. The company tightened underwriting in specific segments where risk-adjusted returns were deemed unattractive, prioritizing balance sheet strength and unit economics over volume. A shift in consumer preference toward lower monthly payments and longer repayment terms drove the strategic decision to launch a line of credit product. The new modular technology platform enabled the development of the line of credit product in under six months, establishing a scalable foundation for future innovation. Management attributes the current elevation in charge-off metrics to a 'denominator effect' caused by slower origination growth rather than a fundamental breakdown in credit quality. Full-year 2026 guidance was revised downward to reflect the two-month delay in the line of credit launch and the timing shift of the LOLA system migration. Management reaffirmed long-term targets for 2027 and 2028, including a goal of approximately $3 earnings per share by the end of 2028. The acquisition of BNC National Bank is expected to close in Q4 2026, pending regulatory approval, and is projected to be financially transformative starting in 2027. The company aims to reduce development cycle times by 70% over the next year by leveraging the new modular architecture of the LOLA system. Future growth is expected to be driven by geographic expansion into three new territories via the line of credit product and enhanced cross-selling opportunities. Net charge-offs as a percentage of receivables increased to 52% from 43% year-over-year, though partially offset by a rise in recoveries to $15 million. One-time expenses related to the BNC transaction and corporate simplification increased unadjusted operating expenses to 43% of revenue. The company initiated a $40 million share repurchase program, citing a belief that current market valuation does not reflect long-term earnings potential. Regulatory applications for the BNC acquisition have been officially submitted to the OCC and other governing agencies. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that while the consumer remains resilient, they are seeing a reversion to historical norms following a very strong two-year window. The tightening was a response to affordability concerns, as consumers increasingly prioritize lower monthly payments to manage cash flow. Management expressed confidence that risk-based pricing and new product flexibility will allow for a return to growth in the second half of the year. The guidance reduction is primarily attributed to the 'late onset' of growth initiatives rather than a change in the underlying credit environment. The line of credit launch is now targeted for September, representing a two-month delay from the original plan. Delays in the LOLA migration prevented the enactment of high-ROI product initiatives that were expected to boost origination growth in Q2. The new system has already enabled an automated approval rate in the 80% range, a company record. Management expects significant reductions in 'app-to-fund' cycle times for manual applications once the migration is fully complete.

This article first appeared on GuruFocus. Revenue: $145 million, a 1.9% increase over Q2 2025 and a company record for any second quarter. Originations: Decreased by approximately 9% to $212 million compared to the prior year quarter. Net Charge-offs: Increased to approximately 40% of revenue (from 32%) and approximately 52% of receivables (from 43%) in the prior year period. Recoveries: Increased to approximately $15 million from $11 million in the prior year period. Adjusted Operating Expenses: Approximately $49 million, or 34% of revenue, down slightly from 35% in the prior year period. Adjusted Net Income: Decreased by 27% to approximately $29 million compared to the prior year period. Adjusted Earnings Per Share (EPS): Decreased to $0.33 from $0.45 in the prior year period. Adjusted Net Income Margin: Remained strong at 19.8%. Cash and Equivalents: Ended the quarter with approximately $92 million in cash equivalents and restricted cash. Total Debt: $277 million. Total Stockholders' Equity: $414 million. Total Funding Capacity: $541.8 million at quarter end, including $173.5 million of unused debt capacity. 2026 Guidance: Revised to total revenue of $600 million to $625 million, adjusted net income of $115 million to $130 million, and adjusted EPS of $1.34 to $1.51. Warning! GuruFocus has detected 3 Warning Signs with RPAY. Is OPFI fairly valued? Test your thesis with our free DCF calculator. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. OppFi Inc (NYSE:OPFI) achieved record second-quarter revenue of $145 million, a 1.9% increase year-over-year. The company made strategic progress, including submitting regulatory applications for the BNC National Bank acquisition, which is expected to be financially transformative with significant revenue synergies from 2027. OppFi Inc (NYSE:OPFI) is launching a new line of credit product in September, which testing showed meets consumer demand for affordability and flexibility, and can drive growth from new and existing customers. The new modular technology platform enabled rapid product development, with the line of credit built in under six months, and is expected to reduce development cycle times by 70% over the next year. OppFi Inc (NYSE:OPFI) maintained a strong balance sheet with $92 million in cash, $173.5 million in unused debt capacity, and initiated a $40 million share repurchase program, reflecting confidence in long-term earnings potential. The company achieved a record automated approval rate in the 80s, improving operational efficiency and customer service. Recoveries increased to approximately $15 million from $11 million year-over-year, demonstrating a competitive advantage in collections. Adjusted net income margin remained strong at 19.8%, and adjusted operating expenses as a percentage of revenue improved to 34% from 35%. Management reaffirmed long-term targets, including approximately $3 of earnings per share by 2028 and $500 million of adjusted net income in five years. The company is prioritizing disciplined underwriting and balance sheet strength, which positions it for sustainable long-term profitability. OppFi Inc (NYSE:OPFI) revised its 2026 guidance downward, with revenue expected at $600-$625 million (down from prior) and adjusted EPS at $1.34-$1.51, due to delayed product launches and migration. Originations decreased approximately 9% year-over-year to $212 million, as the company tightened underwriting in less attractive risk segments. Net charge-offs as a percentage of revenue increased to approximately 40% from 32% year-over-year, and as a percentage of receivables rose to 52% from 43%. Adjusted net income decreased 27% year-over-year to approximately $29 million, and adjusted EPS fell to $0.33 from $0.45. The LOLA system migration was delayed by a few months, pushing back product initiatives and impacting origination growth. The line of credit product launch was delayed by approximately two months, reducing near-term origination targets. Consumer credit trends remain variable, with customers opting for longer terms and higher total costs to manage monthly payments, which can increase credit risk. Unadjusted operating expenses increased to 43% of revenue (from 39%) due to one-time costs related to the BNC transaction and corporate simplification. The BNC acquisition timeline is subject to regulatory approval, with closing expected in Q4 but not guaranteed, creating uncertainty. The company acknowledged that charge-off metrics are inflated due to slower growth, indicating potential underlying credit stress. Q: Can you provide more color on your assessment of consumer credit trends and what led to the tightening of underwriting standards in the quarter? A: Todd Schwartz (CEO): The tightening began last summer due to shifts in consumer sentiment. We are seeing a reversion in charge-offs back to historical averages after a strong two-year period. Consumers are increasingly prioritizing affordability, opting for products with lower monthly payments even if it means higher total costs. We are responding with risk-based pricing and term testing. The upcoming line of credit product is designed to address this demand for flexibility. We believe we can operate in any environment and are confident in returning to growth in the second half of the year. Q: Can you break down the factors behind the revised 2026 guidance, specifically the impact of the delayed line of credit launch and LOLA migration versus other factors like credit trends? A: Todd Schwartz (CEO): The guidance revision is primarily due to the late onset of growth initiatives. We have been operating in this credit environment for over a year and see stability. The delay is mainly from the line of credit product not launching as soon as expected and the LOLA migration taking longer to complete. We are taking a "measure twice, cut once" approach to ensure these initiatives are launched correctly, which has pushed back the expected financial benefits. Q: As the LOLA platform is rolled out, where do you expect the biggest benefit to be firstconversion, servicing efficiencies, or recoveries? A: Todd Schwartz (CEO): The biggest immediate benefit is the speed of product development. We built the new line of credit product in under six months entirely on the new modular system, without touching the legacy system. This significantly reduces cycle times, with a goal of reducing them by 70% over the next year. We also achieved a record automated approval rate in the 80s during the quarter, and the new system will help improve this further and reduce the time from application to funding for manual applications. Q: Can you provide more detail on the findings from the line of credit testing and whether it will be offered to new or existing customers? A: Todd Schwartz (CEO): The testing confirmed that customers value the flexibility to draw on their line in smaller increments over time, as opposed to a lump-sum installment loan. This, combined with a longer payment stream for affordability, addresses key market dynamics. The initial launch will target three new geographies to acquire net new customers. Shortly after, we will test offering both products in the same market to see which customers prefer, and we will update on those results. Q: Can you clarify the timeline for the delays in the line of credit and LOLA migration, and how they impact the revenue and EPS guidance reduction? A: Todd Schwartz (CEO): The line of credit launch is now targeted for September, a two-month delay from the original plan. The LOLA delay impacts originations indirectly by postponing high-ROI product initiatives that were scheduled to run on the new system. These delays, combined, are the primary reason for lowering the origination targets and the 2026 guidance. We are confident in returning to growth in the second half with the initiatives we are working on. Q: Net charge-offs increased significantly year-over-year (to 52% of receivables from 43%). Can you reconcile this with your view that the credit environment is stable? A: Todd Schwartz (CEO): The charge-off metrics are inflated by the denominator effect of slower growth. If we were growing at 9-10%, the ratio would be about 500 basis points lower. We acknowledge the elevation from the lows of early 2025, but it is exacerbated by slower origination growth. Importantly, recoveries are performing strongly, both in dollar terms and as a percentage, which is a distinct competitive advantage and partially offsets the charge-offs. Q: Can you provide an update on the pending acquisition of BNC National Bank and the expected timeline for closing? A: Todd Schwartz (CEO): We have officially submitted our regulatory applications to the OCC and other governing agencies. We are currently in the comment period and working with the regulators. We cannot comment further at this time, but our plan remains to close the transaction in Q4 of this year, assuming the regulatory process proceeds as expected. Q: Given the increased charge-offs and slower growth, how are you balancing the need to invest in strategic initiatives with maintaining profitability? A: Pamela Johnson (CFO): We are prioritizing balance sheet strength, unit economics, and margin stability over short-term volume growth. Our adjusted net income margin remained strong at 19.8% in Q2. We are investing in strategic initiatives like the BNC transaction and platform development while maintaining disciplined expense management across the rest of the organization. Total adjusted operating expenses were 34% of revenue, down slightly from the prior year. For the complete transcript of the earnings call, please refer to the full earnings call transcript.