OPRT

Oportun Financial Corporation (OPRT) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company. Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. For Oportun Financial Corporation, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: The company is expected to earn $0.43 per share for the current quarter, which represents a year-over-year change of +10.3%. Over the last 30 days, the Zacks Consensus Estimate for Oportun Financial has increased 13.04% because one estimate has moved higher compared to no negative revisions. The company is expected to earn $1.57 per share for the full year, which represents a change of +15.4% from the prior-year number. The revisions trend for the current year also appears quite promising for Oportun Financial, with one estimate moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 6.05%. Thanks to promising estimate revisions, Oportun Financial currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Investors have been betting on Oportun Financial because of its solid estimate revisions, as evident from the stock's 18.5% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away. 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 Oportun Financial Corporation (OPRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 5 p.m. ET Chief Executive Officer - Doug Bland Interim Chief Financial Officer, Treasurer and Head of Capital Markets - Paul Appleton Investor Relations - Dorian Hare Operator: Greetings, and welcome to the Oportun Financial Second Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. And now it is my pleasure to introduce Dorian Hare of Investor Relations. Please go ahead. Dorian Hare: Thanks, and hello, everyone. With me to discuss Oportun's second quarter 2026 results are Doug Bland, our Chief Executive Officer; and Paul Appleton, our Interim Chief Financial Officer, Treasurer and Head of Capital Markets. I remind everyone on the call or webcast that some of the remarks made today will include forward-looking statements related to our business, future results of operations and financial position, including projected adjusted ROE attainment and expected originations growth, planned products and services, business strategy, expense savings measures and plans and objectives of management for our future operations. Actual results may differ materially from those contemplated or implied by these forward-looking statements, and we caution you not to place undue reliance on these forward-looking statements. A more detailed discussion of the risk factors that could cause these results to differ materially are set forth in our earnings press release and in our filings with the Securities and Exchange Commission under the caption Risk Factors, including our upcoming Form 10-Q filing for the quarter ended June 30, 2026. Any forward-looking statement that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events other than as required by law. Also on today's call, we will present both GAAP and non-GAAP financial measures, which we believe can be useful measures for the period-to-period comparisons of our core business and which will provide useful information to investors regarding our financial condition and results of operations. A full list of definitions can be found in our earnings materials available at the Investor Relations section of our website. Non-GAAP financial measures are presented in addition to and not as a substitute for financial measures calculated in accordance with GAAP. A reconciliation of non-GAAP to GAAP financial measures is included in our earnings press release, our second quarter 2026 financial supplement and the appendix section of the second quarter 2026 earnings presentation, all of which will be available at the Investor Relations section of our website at investor.oportun.com. In addition, this call is being webcast and an archived version will be available after the call, along with a copy of our prepared remarks. With that, I will turn the call over to Doug. Doug Bland: Thanks, Dorian, and good afternoon, everyone. Thank you for joining us. Q2 was a strong quarter and an important step forward for Oportun. We exceeded the high end of each of the second quarter guidance ranges provided last quarter. Total revenue was $233 million, $1 million above the high end of our guidance range, supported by modest year-over-year originations growth. We generated $49 million in adjusted EBITDA. This was well above our guidance range and represented 56% year-over-year growth. And our annualized net charge-off rate improved 65 basis points sequentially to 12%, outperforming our guidance range of 12.2%, plus or minus 15 basis points. I want to thank the team for the focus and execution behind these results. Our bottom line performance was also strong. We delivered our seventh consecutive quarter of GAAP profitability with our GAAP EPS of $0.17, growing 21% year-over-year and adjusted EPS of $0.42, growing 35%. The quarter demonstrates the company is executing. Revenue was better than expected, profitability improved, credit performance improved sequentially relative to our expectations and the balance sheet continued to strengthen. Our revised full year guidance that Paul will share reflects an improved annualized net charge-off rate and increased adjusted EBITDA at the respective midpoints. The improved charge-off rate reflects continuing operational improvement, and Paul will explain how our EBITDA guidance includes a favorable noncash change in interest expense recognition. On our first quarter call, I said I would return with a more defined path forward. My conclusion is that Oportun has a differentiated franchise and a materially stronger financial foundation, but our next phase depends on making growth broader, more precise and more repeatable. Near term, we are focused on 3 priorities: responsibly rebuilding new member growth, deepening our member relationships in lower-risk segments and preserving the funding expense and capital discipline that has restored profitability. I am now just over 100 days into my tenure as CEO. During this period, I completed a broad assessment of the business. I spent time with our teams, reviewed our products, risk management framework, funding position, operations, technology and member experience. I also met with key external stakeholders, including investors and capital providers. I have begun working with the Board and leadership team on a long-range planning process. While we are not ready to share the full details of that work today, I do want to share the conclusions that are already shaping how we operate. First, Oportun has built something genuinely differentiated over the past 20 years. We serve a large and underserved market that continues to need responsible access to credit and tools to manage everyday financial needs. We do this seamlessly through a bilingual omnichannel model designed to serve consumers whom traditional providers often overlook. Our mission to empower members to build a better future remains highly relevant. Our members also demonstrate strong trust in Oportun. Across our app stores, Google and Trustpilot, we have earned more than 365,000 5-star reviews and 9 out of 10 members tell us they would recommend Oportun to a friend. We believe that trust is a real asset, and we intend to protect and build upon it. Second, the team has done meaningful work to stabilize the business. Over the past year, Oportun has improved its balance sheet, reduced funding costs, managed expenses with discipline and increased liquidity. That progress continued in Q2. Unrestricted cash increased to $140 million at quarter end. Operating expenses remained stable and the balance sheet optimization actions we have taken provide greater flexibility to further diversify funding and evaluate opportunities to refinance or retire our higher cost debt over time. Third, our next phase requires disciplined growth. Originations returned to modest year-over-year growth in Q2, driven by returning members and secured lending. The resulting mix delivered strong credit performance demonstrating the value of our existing member relationships and the attractive risk-adjusted economics of secured lending. To sustain growth over time, we also need to expand responsible access for new members, strengthening our new member engine through more precise selection and the right product fit is one of our highest priorities. Delinquencies are performing better than anticipated, and we strengthened the leadership team with the appointment of Sean Rowles as Chief Risk Officer. Sean brings deep experience in consumer credit, fraud, collections and financial services operations. Our goal is not to loosen credit, it is to become more precise. We are focused on optimizing the balance between risk and reward using data and analytics to make the best decisions about approval, pricing, amount and term. One important step to balance risk and reward was the launch of risk-based pricing in July. It gives us greater flexibility to differentiate terms more precisely across risk tiers. This can help us retain attractive lower-risk and returning members while responsibly serving additional qualified applicants. We are still early in the rollout and will scale based on observed cohort economics. We also continue to execute on our payment protection offering launched in April. This is designed to support members during qualifying disruptions to their loan payments and to improve portfolio resilience over time. Overall, we will scale deliberately, pursuing growth only where it expands responsible access and meets our standards for attractive risk-adjusted returns and durable credit performance. To execute against these priorities, we are also increasing operating cadence and accountability across the business. We are establishing defined routines and performance monitoring, using technology and data to improve decision-making and focusing the organization on the critical few priorities that can move the company forward. My conclusion is clear. Oportun has a strong mission, a differentiated member franchise and a much stronger financial foundation than it had a year ago. We are now focused on translating these advantages into durable growth and more predictable returns. Q2 was an encouraging early proof point. We exceeded guidance, improved profitability, reduced charge-offs faster than expected and continued strengthening the balance sheet. We are moving from stabilization toward disciplined growth, and we intend to scale only where member outcomes and risk-adjusted returns meet our standards. With that, I will turn the call over to Paul for a more detailed review of our second quarter financial results. He will also provide our third quarter guidance and discuss our updated full year outlook. Over to you, Paul. Paul Appleton: Thank you, Doug, and good afternoon, everyone. Turning to Q2 highlights on Slide 6. As Doug mentioned, we recorded our seventh consecutive quarter of GAAP profitability with net income of $8.5 million and diluted EPS of $0.17 a share. We also generated adjusted net income of $21 million and adjusted EPS of $0.42 a share. Total revenue was $233 million, down $1.1 million or less than 0.5% year-over-year. Total revenue exceeded our expectations and the high end of our guidance range, driven by higher originations. We returned to originations growth in Q2 with originations up 1% year-over-year. Net decrease in fair value was $86 million. The majority of this amount was $79 million of net charge-offs. The remaining impact included a $6 million (sic) [ $5.6 million ] unfavorable mark on the loan portfolio, primarily driven by a slight decline in weighted average life. Compared with the prior year period, net decrease in fair value was $15 million higher as the prior year period benefited from a favorable $9 million mark-to-market adjustment on loans. Second quarter interest expense was $42 million, down $18 million year-over-year. This improvement reflects ongoing balance sheet optimization actions, which I will discuss in more detail shortly and a favorable noncash change in interest expense recognition associated with asset-backed borrowings. Regarding the noncash change, revisions to forecasted cash flows used to recognize interest expense associated with $140 million of asset-backed borrowings contributed approximately $7 million of lower interest expense in the second quarter. Our revised guidance reflects an estimated $3 million of additional noncash interest expense benefits in the second half of this year. Net revenue was $106 million, up $1 million year-over-year as lower interest expense more than offset the unfavorable impact of net decrease in fair value. Operating expenses were $90 million, down $4.4 million or 5% year-over-year, reflecting continued cost discipline. Together, net revenue growth and expense discipline supported pretax income of $16 million, up $5.5 million or 55% year-over-year. Adjusted EBITDA, which excludes the impact of fair value mark-to-market adjustments on our loan portfolio and notes, was $49 million in the second quarter, up $17 million or 56% year-over-year, driven primarily by lower interest expense and adjusted operating expense. Those same drivers, along with higher total revenue and lower net charge-offs drove the outperformance of our $34 million to $39 million guidance range. Adjusted net income was $21 million, up $5.9 million or 40% year-over-year due to lower interest expense and adjusted operating expense, partially offset by the unfavorable net change in fair value in the loan portfolio. Adjusted EPS increased 35% year-over-year from $0.31 to $0.42 per share. GAAP net income was $8.5 million, up $1.7 million or 24% year-over-year due to similar drivers, partially offset by higher taxes driven by the settlement of a state tax audit. Turning to credit performance on Slide 7. Q2's annualized net charge-off rate was 12%, down 65 basis points sequentially from Q1 and outperforming our guidance range. We remained in a tight credit posture and continue to benefit from disciplined portfolio mix and the strong performance of returning members. Returning members accounted for 82% of origination volume in Q2, and that was up 64% from the prior year quarter. This higher returning mix contributed to our improved credit performance in the quarter and reflects the strength of our existing member relationships. Over time, our goal is to add new member growth responsibly using improved pricing, decisioning, secured lending and disciplined channel management. The loan portfolio continued to benefit from deliberate growth in our secured personal loan portfolio, which features average loan sizes approximately twice those of unsecured loans and materially lower losses. SPL originations grew 15% during Q2 and secured personal loans accounted for 9% of our total portfolio, up from 7% at the end of the prior year period. We are guiding to further improvement in annualized net charge-off rate to 11%, plus or minus 15 basis points in Q3. Reinforcing our confidence in our outlook, Q2's 30-plus day delinquency rate was 4%, below the 4.1% to 4.2% expectation we set and the lowest level since the fourth quarter of 2021. We also launched our V13 credit model for new members in June. The model is designed to improve risk differentiation by incorporating more recent performance trends and additional data signals. We expect this to support better selection and more disciplined new member growth over time. Turning to capital and liquidity on Slide 9. We continue to strengthen our debt capital structure through balance sheet optimization, further reducing higher cost corporate debt, lowering our overall cost of capital and enhancing liquidity. We continue to make meaningful progress deleveraging the balance sheet, ending the quarter with 6.5x debt-to-equity ratio. This is down from 7.3x a year ago and materially lower than the peak leverage of 8.7x reported in 3Q '24. The improvements achieved since then and through the end of the second quarter include consistent GAAP profitability, an $80 million or 21% increase in shareholder equity and a $187 million or 7% reduction in total debt outstanding. Q2 interest expense was $42 million, down $18 million or 30% from the prior year quarter, driven by our ongoing balance sheet optimization efforts and the favorable noncash change in interest expense recognition I mentioned earlier. Balance sheet optimization actions reducing our Q2 interest expense included corporate debt repayments as well as actions related to our ABS notes and warehouse facilities. During the quarter, we paid down $30 million of high-cost corporate debt, reducing our remaining corporate debt principal balance to $135 million. Corporate debt repayments now total $100 million since the facility's inception in October 2024, resulting in $15 million in annualized run rate interest expense savings. Strong cash flow generation in the underlying business enabled us to strengthen our liquidity position. As shown on the slide, compared to the prior year quarter, unrestricted cash increased by $43 million to $140 million, while corporate debt was down $88 million to $135 million. The progress made in increasing liquidity, reducing leverage and reducing interest expense gives us greater strategic and financial flexibility to fund responsible growth and evaluate opportunities to further optimize the debt structure over time. Before I review our Q3 and revised full year guidance, let me provide a brief review of our ROE performance. Although our long-term targets are GAAP targets, I'll reference adjusted metrics because they remove nonrecurring items and better reflect our future run rate. As shown on Slide 10, we generated an adjusted ROE of 20.5% in the second quarter, which is within our 20% to 28% target range and reflects a 463 basis point improvement from the prior year period. Adjusted ROA of 2.6% also improved year-over-year and approached our 3% to 4% target range. Drivers of the year-over-year improvement in Q2 adjusted ROE included reducing our cost of debt from 8.6% to 6.3% through lower interest expense as well as ongoing expense discipline, which improved our adjusted OpEx ratio from 13.3% to 12.8% of owned principal balance. We drove Q2's ROE improvement while delevering the business, and we continue to expect to approach 6x leverage by the end of the year. With originations continuing to ramp and lower credit losses embedded in our full year guidance, we expect to improve on our first half adjusted ROE performance of 15.6% in the balance of the year and to outpace full year 2025's 17.5% adjusted ROE. I'll share our updated guidance as shown on Slide 11. While our member base remains resilient, inflation above the Federal Reserve's target, uneven job creation, policy uncertainty and higher gas prices continue to create a cautious environment for low to moderate income consumers. While we have not seen any deterioration in our credit metrics as a result, we understand the pressure this can place on our customers, particularly if higher prices persist. Consequently, our outlook prudently assumes we maintain a tight credit posture through the balance of the year. We remain well positioned to adjust quickly as conditions evolve. Our outlook for the third quarter is total revenue of $235 million to $240 million, annualized net charge-off rate of 11% plus or minus 15 basis points and adjusted EBITDA of $43 million to $48 million. At the midpoint, our Q3 total revenue guidance implies a sequential increase from Q2 as originations ramp up in line with our seasonal pattern. Our Q3 annualized net charge-off rate midpoint guidance of 11%, which would be our lowest in the last 4 years, implies another sharp sequential improvement of 100 basis points, along with year-over-year improvement of 80 basis points. As a reminder, our improving credit outlook is supported by the favorable 30-plus delinquency trends I discussed earlier. And our Q3 adjusted EBITDA guidance at the midpoint of $46 million approaches Q2's level while including additional marketing investment and year-over-year growth of 10%, driven primarily by lower interest expense and net charge-offs. Our full year 2026 guidance continues to be underpinned by our expectations for mid-single-digit originations growth, a 1% to 2% decline in average daily principal balance and substantially flat operating expenses compared with the prior year. Our guidance also includes the expectation that interest expense will decline by at least 15% in 2026, which is higher than the 10% guidance we shared on our last earnings call. Our revised full year 2026 guidance includes total revenue of $935 million to $955 million, annualized net charge-off rate of 11.7%, plus or minus 30 basis points, adjusted EBITDA of $160 million to $175 million, adjusted net income of $74 million to $82 million and adjusted EPS of $1.50 to $1.65. Our full year annualized net charge-off rate midpoint guidance of 11.7% reflects 20 basis points of improvement from our prior guidance and would reflect our lowest annual level since 2022. We're also increasing our full year adjusted EBITDA outlook at the midpoint by $10 million or 6% to $168 million, now reflecting 13% growth. And we are maintaining our prior adjusted net income and adjusted EPS guidance as higher fair value headwinds from the current rate outlook offset the benefits of lower interest expense. Importantly, the outlook I've shared today is not dependent on credit expansion. We will continue to scale deliberately and focus on growth that meets our standards for responsible access, adjusted risk returns and durable credit performance. With that, Doug, back over to you. Doug Bland: Thanks, Paul. To close, in my first 100 days as CEO, I have confirmed Oportun's strong foundation and aligned the team around the actions needed for our next phase. Q2 provides an encouraging early proof point. We exceeded guidance, improved credit performance and profitability and continued to strengthen the balance sheet. We are continuing to work with our Board and leadership team to refine our long-term strategy, and we look forward to sharing more once that work is complete. In the meantime, our priorities are clear: responsibly broaden growth, sustain credit discipline and continue improving funding and operating efficiency. As I look to the future, I see a larger scale, more financially resilient version of the Oportun that exists today, serving significantly more members, delivering more predictable financial outcomes and creating substantially greater long-term shareholder value. That's the company we are building, and I'm excited about the journey ahead. With that, operator, let's open the line for questions. Operator: [Operator Instructions] And the first question comes from the line of John Hecht with Jefferies. John Hecht: Congratulations on what looks to be a very strong quarter and I appreciate the, call it, strategic update as well, Doug. So Doug, I know you're 100 days into your tenure there, and there's a lot to continue to be learned. But maybe you guys did do the Column deal a couple of weeks -- or a few weeks back. Maybe give your sense on your distribution system and where you might emphasize any kind of growth objectives or optimization objectives in that portion of your business? Doug Bland: Yes. John, thank you so much for the question and appreciate the comment around this being a strong quarter. I'm super proud of the team for the results and the focus. So thank you for that. Yes, we were able to execute the Column agreement in July, the first part of July, just as we had communicated on the last earnings call. And this is going to enable us, along with our other bank partner program to start testing into risk-based pricing across our business. So in the second half of this year, we do have a robust test-and-learn agenda that we are executing against, which is going to help inform us how do we position risk-based pricing as we go into 2027 and beyond. So this was a real fundamental step change for us to create this capability that I think is going to drive real benefits for our business going forward. John Hecht: And then maybe just -- do you have any other perspectives on other channels, whether they are branch or non-branch partnerships have you -- that you might be able to kind of guide us through what your strategic thoughts might be about those elements? Doug Bland: Yes. We are -- I continue to go through a review of our channel strategies. We're thinking about, as I mentioned in my comments before, we're doing a long-range planning exercise with the Board and the leadership team. Part of that is rationalizing our channel and distribution strategies and thinking through are there areas where we should invest further into as well as optimize. I would say it's too early to provide that information at this point, but it is work that is underway right now. John Hecht: Okay. And then a follow-up question is that you mentioned you don't intend at this point to loosen the credit aperture, but to become more precise which to me seems like you may be able to pick up more volume by just getting some more tools in place to evaluate that. Maybe looking at it from a different angle, like where are approval rates now? Where can they go or where kind of -- if you can look back the history, where have they been in normal periods? Doug Bland: Yes. It's a really good question. And when we talk about precision, when it comes to approval, it's really around how do we further refine the models that we have, the data that we are ingesting and how do we increase the predictability of those models. So that's a strong area of focus. As I mentioned in my earnings, we just hired Sean Rowles brought him in as our new Chief Risk Officer. He has a tremendous amount of experience with managing through sophisticated data modeling that will help us improve in this area. So that's an example of what we're doing. I would say the other thing when we're saying we're maintaining a tight credit posture, we are looking at over-indexing on our lowest risk segments within the portfolio from a growth standpoint as well. So you're clearly seeing that happen this quarter as we're looking at delinquencies and losses starting to both converge on a 5-year low for the business. So we expect that to continue as well while being tight within our overall posture just given the continued uncertainty within the economy. Operator: The next question comes from the line of Zachary Oster with Citizens Capital Markets. Zachary Oster: Congratulations on a strong quarter and good dynamics coming out of the quarter. I wanted to dig in a little bit more on the macro side, see if we can get a little bit more color, including just more insights on potentially any kind of changes in consumer behavior, which includes anything on payment rates. Doug Bland: Yes. Thanks, Zachary. I'll start and Paul, if you have anything you want to add on this. But at this point in time, we are not seeing anything come through our metrics in terms of changes in consumer behavior. In fact, we continue to see better-than-expected trends from a delinquency and as it flows through from a loss perspective, which is reflected in our updated guidance. We are closely monitoring things like first pay defaults, the vintage early month on book delinquencies and making sure that we're not seeing that come through. And at this time, it's just not coming. So our customer base is very resilient through some of these challenging times that we're experiencing. Paul, anything you would add? Paul Appleton: I think you said it well, Doug. Just to add, I think on payment rates, nothing material there, Zach. As we pointed out on the credit side, with the 4.0% 30-day past due. That's a multiyear low. And when you look at the guidance, 11% for the third quarter and what that implies for the fourth quarter, given our full year guidance, these are 4- and 5-year lows. So we feel very good about how the consumer is navigating. And a lot of that is reflected again by the mix that Doug pointed out a moment ago, leading into these lower-risk segments, the growth is there in secured personal loans and returning members. And so we're very pleased with the credit outcomes we're driving. Zachary Oster: Got it. Understood. And then I guess one kind of follow-up related to that. I want to see if you're seeing anything specifically in consumer purchasing behavior or spending behavior as much as you could see, especially around energy prices? If you guys are kind of seeing any kind of movement in how people are spending their money or anything like that? Paul Appleton: Look, I mean, this consumer continues to be resilient. And I think the segment we serve is able to calibrate their behaviors in ways that some of us don't imagine, right? You think about when you go fill up the car with gas and gas is at $6 a share a gallon on Tuesday and then on Thursday, it might be $5.50. Well, the way this consumer calibrates is they put less gas in the car, right? They have a certain amount to spend. And so it's actions like that, that they're taking to manage through the volatility we're seeing in prices, particularly at the gas pump, and they appear to be navigating that very well. Operator: The next question comes from the line of Kyle Joseph with Stephens Inc. Kyle Joseph: Sorry, I hopped on a little bit late. But yes, I just wanted to hop back on credit. Obviously, the DQs and NCOs are looking better. I think I heard you say that's a function of mix shift in terms of loans. And just kind of how you think about that positioning originations growth going forward? I know you guys talked about being conservative given everything going on macro. Doug Bland: Yes. We expect, Kyle, through the rest of this year to have a similar mix that comes through. And so focusing on continuing to expand and grow our secured lending business as well as leaning in on our returning customers. The new member growth, we have pulled back on that, and that's reflected -- and if you look at overall year-over-year originations that we discussed, it will be somewhere single-digit type growth, and that's very deliberate on our part in terms of how we're thinking about mix, and that's allowing us to control overall risk, which is translating through these delinquencies and loss rates. So we expect that to continue through this year as we continue to work on thinking about new member originations and doing that in a very risk disciplined way to ensure that's something we restart as we look into the future. Kyle Joseph: Got it. And then, yes, in terms of your cost of debt, your leverage and then even OpEx, obviously, really strong performance year-over-year. Is there more room for kind of growth or expansion there? Or how much more juice is there to squeeze, if you will? Paul Appleton: Yes. On the financing side, obviously, we continue to look at opportunities to improve the capital structure. We've -- as we pointed out, right, we've made good progress paying down the high-cost corporate debt, $30 million this quarter and $100 million since the facility's inception. So that is clearly driving benefits that you can see. And then on the OpEx side, as we talked about, we expect OpEx to be substantially flat this year, but that includes increases in marketing, particularly in the back half of the year. So I think within the OpEx, you're seeing a decline in sort of run rate, but also investments in the growth of the business on the marketing side. And we continue to look for opportunities, right? When we look at replacing staff, we're looking at, can we reassign work, can we hire at a lower level. And so we're being very prudent. So no firm guidance that we can give beyond what we've shared. But I think clearly, this is something we continue to be focused on is continue to get more efficient, using more tools and watching the efficiency very closely. Operator: The next question comes from the line of Brendan McCarthy with Sidoti & Company. Brendan Michael McCarthy: Congratulations on a strong quarter. Just wanted to start off on the balance sheet, really nice job bringing down leverage. It seems like you're going to hit that 6:1 leverage target very shortly. And you cited an improved outlook for interest expense. I think you're looking for a 15% reduction. And is that mostly just from that noncash benefit we saw in the quarter? Or is there -- are you just experiencing a benefit from more rapid debt paydown? Paul Appleton: Yes. We do -- it's both, Brendan. Thanks for the question. Clearly, we are continuing to delever. We do expect, as we've said on prior calls, to be at or around that 6:1 leverage target by the end of the year. So that continues to be a positive tailwind in terms of the interest expense. And then we did have this noncash benefit this quarter, which importantly, the biggest part of that benefit will be this quarter. It's not something we'll see as much in the future, about another $3 million for the rest of the year. So clearly, that is providing a benefit as well. My expectation is, we won't -- that won't continue beyond that $10 million benefit that we described, but that is also contributing as well. But I think 15% overall, at least 15% is the outlook for the year. Brendan Michael McCarthy: Got it. And on the credit front, how have early credit indicators looks for Q3? Do you expect a sequential improvement in that 30-day delinquency rate? Paul Appleton: That's a good question. Brendan, as you know, in the last couple of quarters, we have talked about the first month of the current quarter and how that 30-day past due trend has been, and it has been positive. And you can see here in the quarter that 4.0% 30-day past due trend is at multiyear lows. This quarter, I decided not to kind of put that monthly number out there. I think it was helpful to explain the peak loss we had in that first quarter, which was driven by higher new loan mix in 2025. So I think I'd point you to the net charge-off trends that continue to be very favorable, 100 basis points lower in third quarter than second quarter and rather than kind of put a precise number out there on the DQs for the third quarter. Operator: Thank you. This does conclude the question-and-answer session. And I'd like to turn the call back over to Doug Bland for closing remarks. Doug Bland: Thank you again for joining today's call. We appreciate your continued interest in Oportun and look forward to speaking with you again soon. Thank you. Operator: This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation. Before you buy stock in Oportun Financial, 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 Oportun Financial 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 $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 214% 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 12, 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. Oportun (OPRT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Total Revenue: $233 million, up $1.1 million or less than 0.1% year over year, exceeding the high end of guidance. GAAP Net Income: $8.5 million, up $1.7 million or 24% year over year. GAAP Diluted EPS: $0.17, up 21% year over year. Adjusted Net Income: $21 million, up $5.9 million or 40% year over year. Adjusted EPS: $0.42, up 35% year over year. Adjusted EBITDA: $49 million, up $17 million or 56% year over year. Annualized Net Charge-Off Rate: 12%, down 65 basis points sequentially from Q1. Interest Expense: $42 million, down $18 million or 30% year over year. Operating Expenses: $90 million, down $4.4 million or 5% year over year. Originations: Up 1% year over year, with returning members accounting for 82% of volume. Secured Personal Loan Originations: Grew 15% during Q2. Adjusted ROE: 20.5%, within the 20-28% target range. Adjusted ROA: 2.6%, approaching the 3-4% target range. Unrestricted Cash: $140 million at quarter end, up $43 million year over year. Corporate Debt Principal: Reduced to $135 million, down $88 million year over year. Debt-to-Equity Ratio: 6.5 times, down from 7.3 times in the prior year. Warning! GuruFocus has detected 3 Warning Signs with OPRT. Is OPRT fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Oportun Financial Corp (NASDAQ:OPRT) exceeded the high end of its Q2 2026 guidance for total revenue, adjusted EBITDA, and net charge-off rate, demonstrating strong operational execution. The company delivered its seventh consecutive quarter of GAAP profitability, with GAAP EPS growing 21% year-over-year and adjusted EPS growing 35%. Credit performance improved significantly, with the annualized net charge-off rate improving 65 basis points sequentially to 12%, and the 30+ day delinquency rate hitting a multi-year low of 4%. The balance sheet continues to strengthen, with unrestricted cash increasing to $140 million, corporate debt reduced by $88 million year-over-year, and leverage down to 6.5x debt-to-equity, approaching the 6x target. The launch of risk-based pricing and a new V13 credit model, along with the appointment of a new Chief Risk Officer, positions the company for more precise and disciplined growth in the future. Adjusted ROE improved to 20.5%, within the company's target range, driven by lower cost of debt and expense discipline. The company maintains a tight credit posture due to ongoing macroeconomic uncertainty, including inflation above target, uneven job creation, and higher gas prices, which could pressure consumer finances. Total revenue was essentially flat year-over-year, with only modest growth in originations, indicating limited top-line expansion. The net decrease in fair value of loans was $86 million, including a $6 million unfavorable mark-to-market adjustment, reflecting ongoing portfolio valuation headwinds. The company's guidance for the full year includes a 1-2% decline in average daily principal balance, indicating a shrinking loan portfolio. The favorable non-cash interest expense benefit is expected to be limited to approximately $3 million in the second half of 2026, suggesting that interest expense reductions may slow. New member growth remains deliberately constrained, with returning members accounting for 82% of originations, which could limit future growth potential. Q: Can you provide more color on the macro environment and any changes in consumer behavior, including payment rates?A: Doug Bland (CEO) stated that the company is not seeing any changes in consumer behavior through its metrics, with better-than-expected trends in delinquency and losses. Paul Appleton (CFO) added that payment rates are stable, and the 4.0% 30+ day past due rate is a multi-year low. The improved credit performance is attributed to a favorable portfolio mix, with growth in secured personal loans and returning members, who accounted for 82% of origination volume in Q2. Q: What is your strategic view on the distribution system and where might you emphasize growth or optimization objectives?A: Doug Bland (CEO) confirmed the completion of the Oportun agreement in July, which enables the company to test risk-based pricing across its business. He noted a robust test-and-learn agenda for the second half of the year to inform pricing strategies for 2027 and beyond. Regarding other channels, he stated that a long-range planning exercise with the board is underway to rationalize channel and distribution strategies, but it is too early to provide specific details. Q: You mentioned becoming more precise rather than loosening credit. Where are approval rates now, and where could they go compared to historical norms?A: Doug Bland (CEO) explained that precision involves refining models and data to increase predictability. The hiring of Sean Rowles as Chief Risk Officer is expected to enhance sophisticated data modeling. While maintaining a tight credit posture, the company is over-indexing on its lowest-risk segments, such as secured lending and returning members, which has driven delinquencies and losses to five-year lows. This approach is expected to continue given economic uncertainty. Q: How should we think about the mix of originations and growth going forward, given the improving credit trends?A: Doug Bland (CEO) stated that the company expects a similar mix for the rest of the year, focusing on growing secured lending and leaning into returning customers. New member growth has been deliberately pulled back, resulting in single-digit year-over-year originations growth. This deliberate mix control is translating into improved delinquency and loss rates, and the company will restart new member growth in a risk-disciplined way in the future. Q: Is there more room to improve the cost of debt, leverage, and operating expenses?A: Doug Bland (CEO) highlighted continued opportunities to improve the capital structure, noting the $30 million paydown of high-cost corporate debt in Q2 and $100 million total since inception, driving significant benefits. On OpEx, the company expects expenses to be substantially flat this year, which includes increased marketing investment in the back half. He emphasized ongoing efforts to improve efficiency through technology and prudent hiring practices, though no firm guidance was provided beyond current expectations. Q: Is the improved outlook for interest expense (at least a 15% reduction) mostly from the non-cash benefit, or from more rapid debt paydown?A: Paul Appleton (CFO) clarified that the improvement is driven by both factors. The company continues to deleverage, expecting to reach its 6x leverage target by year-end, which is a positive tailwind. The non-cash benefit was significant in Q2, with an additional $3 million expected in the second half, but it will not continue beyond that. The overall outlook remains for at least a 15% reduction in interest expense for the year. Q: How have early credit indicators looked for Q3, and do you expect a sequential improvement in the 30-day delinquency rate?A: Paul Appleton (CFO) noted that while the company has previously provided monthly 30-day past due trends, he chose not to disclose the specific number this quarter. He pointed to the favorable net charge-off trends, guiding to 11% in Q3, a 100 basis point sequential improvement, and the lowest level in four years. He emphasized that the improving credit outlook is supported by favorable delinquency trends. Q: Can you elaborate on the drivers behind the strong Q2 results and the revised full-year guidance?A: Doug Bland (CEO) and Paul Appleton (CFO) highlighted that Q2 exceeded guidance across all metrics, driven by higher originations, lower interest expense, and improved credit performance. The revised full-year guidance reflects a lower annualized net charge-off rate of 11.7% and increased adjusted EBITDA of $160-$175 million. The improved credit outlook is supported by a favorable portfolio mix and disciplined growth, while the guidance does not depend on credit expansion. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Oportun Financial Corporation? Here are five stocks we like better. Oportun exceeded Q2 guidance, reporting $233 million in revenue and $49 million in adjusted EBITDA, while GAAP net income reached $8.5 million for its seventh consecutive profitable quarter. Credit performance improved significantly: the annualized net charge-off rate fell to 12% and 30-plus-day delinquencies reached 4%, supported by growth in returning-member and secured-loan originations. Management raised its full-year adjusted EBITDA outlook midpoint by $10 million to $168 million and lowered its expected charge-off rate to 11.7%; it also continues to reduce debt and interest costs. Oportun Financial (NASDAQ:OPRT) reported second-quarter 2026 results that exceeded its guidance ranges, supported by modest origination growth, lower credit losses and reduced interest expense. The company also raised its full-year adjusted EBITDA outlook and lowered its expected annualized net charge-off rate. Chief Executive Officer Doug Bland said the quarter marked an “important step forward” as the company moves from stabilization toward what he described as disciplined growth. Oportun recorded total revenue of $233 million, $1 million above the high end of its guidance range, while adjusted EBITDA reached $49 million, exceeding the company’s $34 million to $39 million outlook. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control “We exceeded guidance, improved profitability, reduced charge-offs faster than expected, and continued strengthening the balance sheet,” Bland said. Oportun posted GAAP net income of $8.5 million, or $0.17 per diluted share, its seventh consecutive profitable quarter under GAAP. That compared with year-over-year growth of 24% in net income and 21% in GAAP earnings per share, according to Interim Chief Financial Officer Paul Appleton. → 3 Drone Stocks That Should Soar After the Summer Slump Adjusted net income was $21 million, or $0.42 per share, up 40% and 35%, respectively, from the prior-year period. Total revenue declined less than 1% year over year, but exceeded expectations as originations increased 1% from the year-earlier quarter. Net revenue rose $1 million year over year to $106 million. Operating expenses fell $4.4 million, or 5%, to $90 million, reflecting continued cost controls. Pretax income increased 55% to $16 million. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Interest expense declined $18 million year over year to $42 million. Appleton said the reduction reflected corporate debt repayments, other balance-sheet optimization actions and a favorable non-cash change in interest expense recognition tied to $140 million of asset-backed borrowings. Revisions to expected cash flows associated with those borrowings contributed about $7 million of lower interest expense during the quarter, with an additional estimated $3 million benefit expected in the second half. The company’s annualized net charge-off rate improved 65 basis points sequentially to 12%, better than Oportun’s prior guidance of 12.2%, plus or minus 15 basis points. Its 30-plus-day delinquency rate was 4%, below the company’s 4.1% to 4.2% expectation and its lowest level since the fourth quarter of 2021. Appleton attributed the credit performance partly to a higher mix of returning members and secured personal loans. Returning members accounted for 82% of second-quarter origination volume, with their volume rising 64% from a year earlier. Secured personal loan originations increased 15%, and those loans represented 9% of the portfolio at quarter-end, compared with 7% a year earlier. Bland said Oportun does not intend to loosen its credit posture, but is seeking to become more precise in its underwriting, pricing, loan amount and term decisions. The company appointed Sean Rowles as chief risk officer and launched its V13 credit model for new members in June, incorporating more recent performance trends and additional data signals. In July, Oportun also launched risk-based pricing, following an agreement with Column and alongside its other bank partner program. Bland said the company plans to conduct tests during the second half of the year to help determine how it positions risk-based pricing in 2027 and beyond. Management said it had not observed material changes in consumer payment behavior or deterioration in its credit metrics despite inflation, uneven job creation, policy uncertainty and higher gasoline prices. Appleton said the company’s customers have continued to demonstrate resilience, including by adjusting spending behavior amid price volatility. Oportun ended the quarter with $140 million in unrestricted cash, up $43 million from a year earlier. Total debt declined $187 million, or 7%, from the company’s peak period cited by management, while the debt-to-equity ratio fell to 6.5 times from 7.3 times a year earlier and 8.7 times in the third quarter of 2024. During the quarter, the company repaid $30 million of high-cost corporate debt, reducing the remaining principal balance to $135 million. Since the facility began in October 2024, Oportun has repaid $100 million, which Appleton said has produced $15 million in annualized run-rate interest expense savings. The company continues to expect leverage to approach six times by year-end. For the third quarter, Oportun guided for: Total revenue of $235 million to $240 million; An annualized net charge-off rate of 11%, plus or minus 15 basis points; and Adjusted EBITDA of $43 million to $48 million. At the midpoint, the third-quarter charge-off forecast would represent a further 100-basis-point sequential improvement and the company’s lowest quarterly level in four years, Appleton said. For full-year 2026, Oportun now expects total revenue of $935 million to $955 million, an annualized net charge-off rate of 11.7%, plus or minus 30 basis points, and adjusted EBITDA of $160 million to $175 million. The midpoint of the EBITDA outlook increased by $10 million to $168 million, while the charge-off-rate midpoint improved by 20 basis points from prior guidance. The company maintained its full-year adjusted net income forecast of $74 million to $82 million and adjusted EPS outlook of $1.50 to $1.65. Appleton said higher fair-value headwinds associated with the current interest-rate outlook offset the benefits of lower interest expense. Oportun Financial Corporation (NASDAQ: OPRT) is a financial technology company that provides consumer lending products aimed at serving the underbanked and credit-invisible population in the United States. Headquartered in Redwood City, California, Oportun operates a digital platform that enables borrowers to access credit through unsecured personal installment loans, secured credit-builder loans and a proprietary mobile wallet. The company leverages machine learning and alternative data sources to assess creditworthiness, extending financial services to customers with limited or no traditional credit history. The company's core offerings include fixed-term installment loans designed to help individuals cover unexpected expenses, consolidate debt or build credit. 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 "Oportun Financial Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

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 concluded a 100-day business assessment, shifting focus from stabilization toward broader, more precise, and repeatable growth models. Performance outperformance was driven by a deliberate mix shift toward returning members and secured personal loans (SPL), which carry lower risk-adjusted losses. Returning members accounted for 82% of Q2 origination volume, representing a 64% increase from the prior year quarter. The company is prioritizing 'precision over loosening' by utilizing data analytics to optimize approval, pricing, and terms rather than expanding the credit aperture. Operational efficiency improved through continued cost discipline, resulting in stable operating expenses despite increased marketing investments. The balance sheet was strengthened by reducing high-cost corporate debt by $30 million in Q2, totaling $100 million in repayments since October 2024. Full-year 2026 guidance assumes mid-single-digit originations growth while maintaining a tight credit posture due to macroeconomic uncertainty. Interest expense is expected to decline by at least 15% in 2026, an improvement from the previous 10% guidance, driven by debt optimization. Management expects to reach a 6x debt-to-equity leverage ratio by the end of the year, down from a peak of 8.7x in Q3 2024. The rollout of risk-based pricing, launched in July, is intended to differentiate terms across risk tiers and improve retention of lower-risk members. Q3 guidance anticipates an 11% annualized net charge-off rate, which would represent the lowest level in the last four years. Q2 interest expense benefited from a $7 million non-cash favorable change in interest expense recognition associated with asset-backed borrowings. The company expects an additional $3 million non-cash interest expense benefit in the second half of 2026. A $5.6 million unfavorable mark on the loan portfolio was recorded, primarily driven by a slight decline in weighted average life. Macroeconomic risks such as persistent inflation and high gas prices are noted as potential pressures on the low-to-moderate income consumer base. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The Column agreement enables testing of risk-based pricing across the business during the second half of the year. This capability is viewed as a fundamental step change to inform positioning for 2027 and beyond. Precision efforts focus on refining models and data ingestion to increase predictability rather than increasing approval rates. The company is over-indexing on the lowest-risk segments to drive growth while maintaining a tight overall posture. Management reported no material changes in consumer behavior or payment rates despite macro pressures. The 30-day delinquency rate of 4.0% is a multi-year low, suggesting the consumer base is successfully calibrating spending to manage price volatility.

Oportun Financial Corporation (OPRT) came out with quarterly earnings of $0.42 per share, beating the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.31 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +27.27%. A quarter ago, it was expected that this company would post earnings of $0.21 per share when it actually produced earnings of $0.21, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Oportun Financial, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $233.2 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.88%. This compares to year-ago revenues of $234.3 million. The company has topped consensus revenue estimates two times 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. Oportun Financial shares have added about 13.6% since the beginning of the year versus the S&P 500's gain of 13%. While Oportun Financial has outperformed 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 Oportun Financial was favorable. 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 #2 (Buy) for the stock. So, the shares are expected to outperform 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 $0.41 on $236.05 million in revenues for the coming quarter and $1.53 on $941.98 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 - Miscellaneous Services is currently in the bottom 35% 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, Marathon Digital Holdings, Inc. (MARA), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This company is expected to post quarterly loss of $0.56 per share in its upcoming report, which represents a year-over-year change of +30.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Marathon Digital Holdings, Inc.'s revenues are expected to be $208.49 million, down 12.6% 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 Oportun Financial Corporation (OPRT) : Free Stock Analysis Report Marathon Digital Holdings, Inc. (MARA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

GAAP net income of $9 million grew 24% year-over-year Adjusted EBITDA of $49 million grew 56% year-over-year GAAP EPS of $0.17 grew 21% year-over-year Adjusted EPS of $0.42 grew 35% year-over-year 30-plus day delinquency rate of 4.0%, lowest since 4Q21 SAN MATEO, Calif., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Oportun Financial Corporation (Nasdaq: OPRT) (“Oportun”, or the "Company") today reported financial results for the second quarter ended June 30, 2026. “I'm pleased with our 2Q results," said Doug Bland, CEO of Oportun. “Disciplined execution, including a return to originations growth, a lower cost of capital and continued expense discipline, enabled us to deliver another quarter of GAAP profitability while outperforming the top end of our guidance ranges for both total revenue and Adjusted EBITDA. Our annualized net charge-off rate also outperformed our guidance range and our 30-plus day delinquency rate, our lowest since 4Q21, reinforces our confidence that credit performance will continue improving during the second half of the year." “Having crossed 100 days into my tenure as CEO, I’ve completed a comprehensive assessment of the business that reinforced a clear conclusion: Oportun has a differentiated platform, a trusted brand, and a mission to empower members to build a better future that is more important than ever. Appointing Sean Rowles as Chief Risk Officer in June and successfully launching our risk-based pricing initiative in July were key milestones in our path towards durable, sustainable growth.” “We have turned the page in Oportun's story and begun writing the next chapter: one focused on accelerating our execution of the mission that has guided this company since its founding. Given our second quarter performance and our outlook for the balance of the year, we are improving our annualized net charge-off range expectation by 20 basis points, and raising our full year Adjusted EBITDA range expectation by 6% at their respective midpoints.” Second Quarter 2026 Results Financial and Operating Results All figures are as of or for the quarter ended June 30, 2026, unless otherwise noted. Operational Drivers Originations – Under a tight credit posture, Aggregate Originations for the second quarter were $488 million, an increase of 1% compared to $481 million in the prior-year quarter. Management continues to expect to grow originations in the mid-single-digits range over the course of full year 2026. Owned Principal Balance - Owned Principal Balance at the end of the second quarter was $2,613 million, a 1% decrease as compared to $2,636 million in the prior-year quarter. Portfolio Yield - Portfolio Yield for the second quarter was 33.3%, modestly higher than 32.8% in the prior-year quarter. Net Interest Margin Ratio - Net Interest Margin Ratio for the second quarter increased by 274 basis points to 29.0%, from 26.3% in the prior-year quarter. Cost of Debt decreased by 228 basis points to 6.3% due to ongoing balance sheet optimization actions including the repayment of $87.5 million in corporate debt, and a favorable non-cash change in interest expense recognition associated with asset-backed borrowings. Furthermore, portfolio yield increased 45 basis points due to higher origination fees. Risk Adjusted Net Interest Margin Ratio - Risk Adjusted Net Interest Margin Ratio, which includes Portfolio Yield, cost of funds, Net Charge-Offs, and loan-related fair value adjustments for the second quarter was 17.0%, an increase of 69 basis points as compared to 16.3% in the prior-year quarter. The improvement is primarily due to the improvement in cost of debt; partially offset by the decline in fair value marks. Financial Results Revenue – Total revenue for the second quarter was substantially flat at $233 million relative to the prior-year quarter's $234 million. Operating Expense and Adjusted Operating Expense – Total operating expense was $90 million, a decrease of 5% as compared to $94 million in the prior-year quarter primarily due to expense discipline centered in technology and facilities, and general and administrative expenses. The Company continues to expect full year 2026 GAAP operating expenses to be substantially flat in comparison to 2025's $362 million. Adjusted Operating Expense, which excludes stock-based compensation expense and certain non-recurring charges, also decreased by 5% year-over-year to $84 million due to similar drivers. Pre-Tax Income – Pre-tax income was $15.6 million, a 55% increase as compared to $10.1 million in the prior-year quarter. The increased profitability was attributable to a $17.6 million decrease in interest expense and a $4.4 million decrease in operating expense, partially offset by unfavorable loan-related fair value adjustments. The decrease in interest expense was driven by ongoing balance sheet optimization actions and the aforementioned favorable non-cash change in interest expense recognition. Net Income and Adjusted Net Income – Net income was $8.5 million, a 24% increase as compared to $6.9 million in the prior-year quarter. The increased profitability was driven by the increase in pre-tax net income, partially offset by a higher tax rate due to settlement of a state tax audit. Adjusted Net Income was $21 million, a 40% increase compared to $15 million in the prior-year quarter, with the increase driven by higher pre-tax net income. Earnings Per Share and Adjusted EPS – GAAP earnings per share, basic and diluted, were $0.18 and $0.17, respectively, during the second quarter, compared to GAAP net income per share, basic and diluted of $0.15 and $0.14, respectively, in the prior-year quarter. Adjusted Earnings Per Share was $0.42 as compared to $0.31 in the prior-year quarter. Adjusted EBITDA – Adjusted EBITDA grew 56% to $49 million, up from $31 million in the prior-year quarter, primarily driven by lower interest expense and Adjusted Operating Expense. Credit and Operating Metrics Net Charge-Off Rate – Annualized Net Charge-Off Rate for the quarter was 12.0%, compared to 11.9% for the prior-year quarter. Net Charge-offs in dollars for the quarter were $79 million, flat in comparison to the prior-year quarter. 30+ Day Delinquency Rate – The Company's 30+ Day Delinquency Rate was 4.0% at the end of the quarter, compared to 4.4% at the end of the prior-year quarter. Operating Expense Ratio and Adjusted Operating Expense Ratio – Operating Expense Ratio for the quarter was 13.7% as compared to 14.2% in the prior-year quarter, a 54 basis point improvement. Adjusted Operating Expense Ratio was 12.8% as compared to 13.3% in the prior-year quarter, a 55 basis point improvement. The Adjusted Operating Expense Ratio excludes stock-based compensation expense and certain non-recurring charges. The improvement in the Company's Adjusted Operating Expense Ratio is attributable to its focus on operating expense efficiency. Return On Equity ("ROE") and Adjusted ROE – ROE for the quarter was 9%, as compared to 7% in the prior-year quarter. The increase was attributable to the increase in net income. Adjusted ROE for the quarter was 21%, as compared to 16% in the prior-year quarter, with the increase attributable to the improvement in Adjusted Net Income. Secured Personal Loans As of June 30, 2026, the Company had a secured personal loan receivables balance of $245 million, or 9% of owned principal balance, up from $195 million, or 7% of owned principal balance at the end of the second quarter of 2025. Oportun currently offers secured personal loans in California, Texas, Florida, Arizona, New Jersey, Illinois, Nevada and Utah. During the second quarter, secured personal loans losses were substantially lower than for unsecured personal loans. Furthermore, secured personal loans are expected to generate approximately twice the revenue per loan compared to unsecured personal loans, primarily due to higher average loan sizes. Funding and Liquidity As of June 30, 2026, total cash was $212 million, consisting of cash and cash equivalents of $140 million and restricted cash of $73 million. Cost of Debt and Debt-to-Equity were 6.3% and 6.5x, respectively, for and at the end of the second quarter 2026 as compared to 8.6% and 7.3x, respectively, for and at the end of the prior-year quarter. As of June 30, 2026, the Company had $880 million of undrawn capacity on its existing $1,189 million personal loan warehouse lines. The Company's personal loan warehouse lines as of June 30, 2026 were committed through 2028 and up to 2030. Financial Outlook for Third Quarter and Full Year 2026 Oportun is providing the following guidance for 3Q 2026 and full year 2026: Conference Call As previously announced, Oportun’s management will host a conference call to discuss second quarter 2026 results at 5:00 p.m. ET (2:00 p.m. PT) today. A live webcast of the call will be accessible from the Investor Relations page of Oportun's website at https://investor.oportun.com. The dial-in number for the conference call is 1-866-604-1698 (toll-free) or 1-201-389-0844 (international). Participants should call in 10 minutes prior to the scheduled start time. Both the call and webcast are open to the general public. For those unable to listen to the live broadcast, a webcast replay of the call will be available at https://investor.oportun.com for one year. A file that includes supplemental financial information and reconciliations of certain non-GAAP measures to their most directly comparable GAAP measures, will be available on the Investor Relations page of Oportun's website at https://investor.oportun.com following the conference call. About Non-GAAP Financial Measures This press release presents information about the Company’s Adjusted Net Income (Loss), Adjusted EPS, Adjusted EBITDA, Adjusted Operating Expense, Adjusted Operating Expense Ratio, Adjusted ROE, Risk Adjusted Net Interest Margin, and Risk Adjusted Net Interest Margin Ratio, all of which are non-GAAP financial measures provided as a supplement to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company believes these non-GAAP measures can be useful measures for period-to-period comparisons of its core business and provide useful information to investors and others in understanding and evaluating its operating results. Non-GAAP financial measures are provided in addition to, and not as a substitute for, and are not superior to, financial measures calculated in accordance with GAAP. In addition, the non-GAAP measures the Company uses, as presented, may not be comparable to similar measures used by other companies. Reconciliations of non-GAAP to GAAP measures can be found below. About Oportun Oportun (Nasdaq: OPRT) is a mission-driven financial services company that puts its members' financial goals within reach. With intelligent borrowing, savings, and budgeting capabilities, Oportun empowers members with the confidence to build a better financial future. Since inception, Oportun has provided more than $22.7 billion in responsible and affordable credit, saved its members more than $2.5 billion in interest and fees, and helped its members set aside an average of more than $1,800 annually. For more information, visit Oportun.com. Forward-Looking Statements This press release contains forward-looking statements. These forward-looking statements are subject to the safe harbor provisions under 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. All statements other than statements of historical fact contained in this press release, including statements as to future performance, results of operations and financial position; achievement of the Company's strategic priorities and goals; the Company's expectations regarding macroeconomic conditions; the Company's profitability and future growth opportunities including expected revenue growth in connection with increasing originations; the effect of and trends in fair value mark-to-market adjustments on the Company's loan portfolio and asset-backed notes; the Company's third quarter and full year 2026 outlook; the Company's expectations related to future profitability on an adjusted basis, and the plans and objectives of management for our future operations, are forward-looking statements. These statements can be generally identified by terms such as “expect,” “plan,” “goal,” “target,” “anticipate,” “assume,” “predict,” “project,” “outlook,” “continue,” “due,” “may,” “believe,” “seek,” or “estimate” and similar expressions or the negative versions of these words or comparable words, as well as future or conditional verbs such as “will,” “should,” “would,” “likely” and “could.” These forward-looking statements speak only as of the date on which they are made and, except to the extent required by federal securities laws, Oportun disclaims any obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. In light of these risks and uncertainties, there is no assurance that the events or results suggested by the forward-looking statements will in fact occur, and you should not place undue reliance on these forward-looking statements. These statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause Oportun’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Oportun has based these forward-looking statements on its current expectations and projections about future events, financial trends and risks and uncertainties that it believes may affect its business, financial condition and results of operations. These risks and uncertainties include those risks described in Oportun's filings with the Securities and Exchange Commission, including Oportun's most recent annual report on Form 10-K, and include, but are not limited to, Oportun's ability to retain existing members and attract new members; Oportun's ability to accurately predict demand for, and develop its financial products and services; the effectiveness of Oportun's A.I. model; macroeconomic conditions, including fluctuating inflation and market interest rates; increases in loan non-payments, delinquencies and charge-offs; Oportun's ability to increase market share and enter into new markets; Oportun's ability to realize the benefits from acquisitions and integrate acquired technologies; the risk of security breaches or incidents affecting the Company's information technology systems or those of the Company's third-party vendors or service providers; Oportun’s ability to successfully offer loans in additional states; Oportun’s ability to compete successfully with other companies that are currently in, or may in the future enter, its industry; and changes in Oportun's ability to obtain additional financing on acceptable terms or at all. Contacts Investor ContactDorian Hare(650) [email protected] Media ContactMichael AzzanoCosmo PR for Oportun(415) [email protected] Oportun and the Oportun logo are registered trademarks of Oportun, Inc. Note: Numbers may not foot or cross-foot due to rounding. Note: Numbers may not foot or cross-foot due to rounding. Note: Numbers may not foot or cross-foot due to rounding. Note: Numbers may not foot or cross-foot due to rounding. This press release dated August 5, 2026 contains non-GAAP financial measures. The following tables reconcile the non-GAAP financial measures in this press release to the most directly comparable financial measures prepared in accordance with GAAP. The Company believes that the provision of these non-GAAP financial measures can provide useful measures for period-to-period comparisons of Oportun's core business and useful information to investors and others in understanding and evaluating its operating results. However, non-GAAP financial measures are not calculated in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same names, and may differ from non-GAAP financial measures with the same or similar names that are used by other companies. Adjusted EBITDA The Company defines Adjusted EBITDA as net income, adjusted to eliminate the effect of certain items as described below. The Company believes that Adjusted EBITDA is an important measure because it allows management, investors and its board of directors to evaluate and compare operating results, including return on capital and operating efficiencies, from period to period by making the adjustments described below. In addition, it provides a useful measure for period-to-period comparisons of Oportun's business, as it removes the effect of income taxes, certain non-cash items, variable charges and timing differences. The Company believes it is useful to exclude the impact of income tax expense, as reported, because historically it has included irregular income tax items that do not reflect ongoing business operations. The Company believes it is useful to exclude depreciation and amortization and stock-based compensation expense because they are non-cash charges. The Company believes it is useful to exclude the impact of interest expense associated with the Company's corporate financing facilities, including the senior secured term loan and the residual financing facility, as it views this expense as related to its capital structure rather than its funding. The Company excludes the impact of certain non-recurring charges and other non-recurring charges because it does not believe that these items reflect ongoing business operations. Other non-recurring charges include litigation reserve, impairment charges, workforce optimization expenses, shareholder activism costs, debt amendment and warrant amortization costs related to our corporate financing facilities. The Company also excludes fair value mark-to-market adjustments on its loans receivable portfolio and asset-backed notes carried at fair value because these adjustments do not impact cash. Adjusted Net Income The Company defines Adjusted Net Income as net income adjusted to eliminate the effect of certain items as described below. The Company believes that Adjusted Net Income is an important measure of operating performance because it allows management, investors, and the Company's board of directors to evaluate and compare its operating results, including return on capital and operating efficiencies, from period to period, excluding the after-tax impact of non-cash, stock-based compensation expense and certain non-recurring charges. The Company believes it is useful to exclude the impact of income tax expense (benefit), as reported, because historically it has included irregular income tax items that do not reflect ongoing business operations. The Company also includes the impact of normalized income tax expense by applying a normalized statutory tax rate. The Company believes it is useful to exclude the impact of certain non-recurring charges and other non-recurring charges because it does not believe that these items reflect its ongoing business operations. Other non-recurring charges include litigation reserve, impairment charges, workforce optimization expenses, shareholder activism costs, debt amendment and warrant amortization costs related to our corporate financing facilities. The Company believes it is useful to exclude stock-based compensation expense because it is a non-cash charge. The Company also excludes the fair value mark-to-market adjustment on its asset-backed notes carried at fair value to align with the 2023 accounting policy decision to account for new debt financings at amortized cost. Risk Adjusted Net Interest Margin and Risk Adjusted Net Interest Margin Ratio The Company defines Risk Adjusted Net Interest Margin as total interest and non-interest income, less interest expense net of debt restructuring costs and warrant amortization, credit losses and the impact of loan-related fair value adjustments. The Company defines Risk Adjusted Net Interest Margin Ratio as annualized Risk Adjusted Net Interest Margin divided by Average Daily Principal Balance. Average Daily Principal Balance represents the average loan balance outstanding over the reporting period. The Company believes Risk Adjusted Net Interest Margin and Risk Adjusted Net Interest Margin Ratio are important metrics because they reflect the net margin earned on its loan portfolio after accounting for both the cost of borrowing and the impact of credit performance, along with non-interest income. The Company believes that the Risk Adjusted Net Interest Margin measure provides management, investors, and Oportun's board of directors with a more complete understanding of the net margin of the Company’s loan portfolio and non-interest income on a risk-adjusted basis. The Company believes that the Risk Adjusted Net Interest Margin Ratio allows management, investors and Oportun's board of directors to evaluate its efficiency relative to its Average Daily Principal Balance. Adjusted Operating Expense and Adjusted Operating Expense Ratio The Company defines Adjusted Operating Expense as total operating expenses adjusted to exclude stock-based compensation expense and certain non-recurring charges, such as expenses associated with our workforce optimization, and other non-recurring charges. Other non-recurring charges include litigation reserve, impairment charges, workforce optimization expenses, shareholder activism costs, and debt amendment costs related to our Corporate Financing facility. The Company defines Adjusted Operating Expense Ratio as Adjusted Operating Expense divided by Average Daily Principal Balance. The Company believes Adjusted Operating Expense is an important measure because it allows management, investors and Oportun's board of directors to evaluate and compare its operating costs from period to period, excluding the impact of non-cash, stock-based compensation expense and certain non-recurring charges. The Company believes Adjusted Operating Expense Ratio is an important measure because it allows management, investors and Oportun's board of directors to evaluate how efficiently the Company is managing costs relative to revenue and Average Daily Principal Balance. Adjusted Return on Equity The Company defines Adjusted Return on Equity (“ROE”) as annualized Adjusted Net Income divided by average stockholders’ equity. Average stockholders’ equity is an average of the beginning and ending stockholders’ equity balance for each period. The Company believes Adjusted ROE is an important measure because it allows management, investors and its board of directors to evaluate the profitability of the business in relation to its stockholders' equity and how efficiently it generates income from stockholders' equity. Adjusted EPS The Company defines Adjusted EPS as Adjusted Net Income divided by weighted average diluted shares outstanding. (1) Calculated as Adjusted Net Income divided by average stockholders’ equity. Note: Numbers may not foot or cross-foot due to rounding. Note: Numbers may not foot or cross-foot due to rounding. Note: Numbers may not foot or cross-foot due to rounding. *Due to the uncertainty in macroeconomic conditions and quarterly volatility in the fair value mark to market adjustment, we are unable to precisely forecast the fair value mark-to-market adjustments on our loan portfolio and asset-backed notes on a quarterly basis. As a result, while we fully expect there to be a fair value mark-to-market adjustment which could have an impact on GAAP net income (loss), the net income (loss) information presented above assumes no change in the fair value mark-to-market adjustment. Note: Numbers may not foot or cross-foot due to rounding.

Wall Street expects a year-over-year increase in earnings on lower revenues when Oportun Financial Corporation (OPRT) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 5, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This company is expected to post quarterly earnings of $0.33 per share in its upcoming report, which represents a year-over-year change of +6.5%. Revenues are expected to be $231.17 million, down 1.3% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 4.17% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Oportun Financial, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.54%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination makes it difficult to conclusively predict that Oportun Financial will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Oportun Financial would post earnings of $0.21 per share when it actually produced earnings of $0.21, delivering no surprise. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Oportun Financial doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. 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 Oportun Financial Corporation (OPRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Oportun Financial Corporation (OPRT) came out with quarterly earnings of $0.21 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.4 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $0.26 per share when it actually produced earnings of $0.27, delivering a surprise of +3.85%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Oportun Financial, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $228.8 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.46%. This compares to year-ago revenues of $235.9 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. Oportun Financial shares have added about 9.8% since the beginning of the year versus the S&P 500's gain of 7.6%. While Oportun Financial has outperformed 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 Oportun Financial was unfavorable. 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 #4 (Sell) for the stock. So, the shares are expected to underperform 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 $0.29 on $233.77 million in revenues for the coming quarter and $1.47 on $949.94 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 - Miscellaneous Services is currently in the top 37% 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. Another stock from the broader Zacks Finance sector, Simon Property (SPG), has yet to report results for the quarter ended March 2026. The results are expected to be released on May 11. This shopping mall real estate investment trust is expected to post quarterly earnings of $2.98 per share in its upcoming report, which represents a year-over-year change of +1%. The consensus EPS estimate for the quarter has been revised 0.3% higher over the last 30 days to the current level. Simon Property's revenues are expected to be $1.57 billion, up 6.4% 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 Oportun Financial Corporation (OPRT) : Free Stock Analysis Report Simon Property Group, Inc. (SPG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Achieves all first quarter guidance metrics Delivers sixth consecutive quarter of GAAP profitability Strengthens balance sheet and liquidity position Reiterates full-year 2026 guidance SAN MATEO, Calif., May 07, 2026 (GLOBE NEWSWIRE) -- Oportun Financial Corporation (Nasdaq: OPRT) (“Oportun”, or the "Company") today reported financial results for the first quarter ended March 31, 2026. “Having joined Oportun last month, I’m encouraged by the team’s disciplined execution in the first quarter,” said Doug Bland, CEO of Oportun. “The business has made meaningful progress strengthening its foundation, including continued GAAP profitability, lower funding costs and improved liquidity. At the same time, it is clear there is more work ahead to improve through-cycle credit performance and rebuild durable, profitable growth. Based on my review to date, we are reiterating our full year 2026 guidance.” Added Paul Appleton, Oportun's Interim Chief Financial Officer: “We expect to ramp originations from first quarter levels through the remainder of the year while maintaining credit discipline and reducing our loss rates. We are also advancing our risk-based pricing initiative, which we expect to launch in the second half of the year, expanding access to customers we are not able to serve today. I am pleased that our full year 2026 Adjusted EPS guidance of $1.50 to $1.65 continues to reflect 16% year-over-year growth at the midpoint.” First Quarter 2026 Results Financial and Operating Results All figures are as of or for the quarter ended March 31, 2026, unless otherwise noted. Operational Drivers Originations – In line with expectations under a tight credit posture, Aggregate Originations for the first quarter were $417 million, a decrease of 11% compared to $469 million in the prior-year quarter. Management continues to expect to grow originations in the mid-single-digits range over the course of full year 2026. Owned Principal Balance - Owned Principal Balance at the end of the first quarter was $2.6 billion, compared to $2.7 billion in the prior-year quarter. Portfolio Yield - Portfolio Yield for the first quarter was 32.1%, compared to 33.0% in the prior-year quarter. This decrease was driven by reduced originations and therefore lower origination fees, as we continued to operate under a conservative credit posture. Net Interest Margin Ratio - Net Interest Margin Ratio for the first quarter was relatively flat at 26.9%, compared to 26.8% in the prior-year quarter. Cost of Debt decreased by 91 basis points due to prepayments of our Corporate Term Loan and other balance sheet optimization initiatives. This was partially offset by a 2.1% interest income decline due to reduced Portfolio Yield. Risk Adjusted Net Interest Margin Ratio - Risk Adjusted Net Interest Margin Ratio, which includes Portfolio Yield, cost of funds, Net Charge-Offs, and loan-related fair value adjustments decreased year-over-year by 271 basis points to 14.4%. This was due to a lower Portfolio Yield and a higher Annualized Net Charge-Off rate along with the absence of a $12 million favorable mark-to-market adjustment on the Company's loan portfolio reflected in the prior year period, partially offset by improvement in Cost of Debt. Financial Results Revenue – Total revenue for the first quarter was $229 million, a decrease of 3% as compared to $236 million in the prior-year quarter. The decline was primarily due to lower interest income driven by lower origination fees. Net revenue for the first quarter was $95 million, a 10% decrease compared to net revenue of $106 million in the prior-year quarter, as increased fair value marks, and the total revenue decline were only partially offset by a reduction in interest expense driven by prior-period prepayments of our Corporate Term Loan and other balance sheet optimization initiatives. Operating Expense and Adjusted Operating Expense – Total operating expense was $91 million, a decrease of 1% as compared to $93 million in the prior-year quarter. The Company continues to expect full year 2026 GAAP operating expenses to be substantially flat in comparison to 2025's $362 million. Adjusted Operating Expense, which excludes stock-based compensation expense and certain non-recurring charges, decreased 4% year-over-year to $85 million primarily due to a decrease in direct mail marketing expense under a tight credit posture and reduced costs relating to the development of the Company's internal software. Net Income and Adjusted Net Income – Net income was $2.3 million as compared to $10 million in the prior-year quarter. The decreased profitability was attributable to higher fair value marks and lower total revenue, partially offset by lower interest expense. Adjusted Net Income was $10 million compared to $19 million in the prior-year quarter, with the decline driven by similar factors. Earnings Per Share and Adjusted EPS – GAAP earnings per share, basic and diluted, were $0.05 during the first quarter, compared to GAAP net income per share, basic and diluted of $0.21 in the prior-year quarter. Adjusted Earnings Per Share was $0.21 as compared to $0.40 in the prior-year quarter. Adjusted EBITDA – Adjusted EBITDA was $29 million, down from $34 million in the prior-year quarter, attributable to lower interest income as lower total revenue and higher net charge-offs more than offset lower interest expense and Adjusted Operating Expense. Credit and Operating Metrics Net Charge-Off Rate – Annualized Net Charge-Off Rate for the quarter was 12.7%, compared to 12.2% for the prior-year quarter. Net Charge-offs in dollars for the quarter were up 4% to $85 million, compared to $81 million for the prior-year quarter. 30+ Day Delinquency Rate – The Company's 30+ Day Delinquency Rate was 4.5% at the end of the quarter, compared to 4.7% at the end of the prior-year quarter. Operating Expense Ratio and Adjusted Operating Expense Ratio – Operating Expense Ratio for the quarter was 13.6% as compared to 13.9% in the prior-year quarter, a 28 basis point improvement. Adjusted Operating Expense Ratio was 12.7% as compared to 13.3% in the prior-year quarter, a 63 basis point improvement. The Adjusted Operating Expense Ratio excludes stock-based compensation expense and certain non-recurring charges. The reduction in the Company's Adjusted Operating Expense Ratio is attributable to its focus on reducing operating expenses. Return On Equity ("ROE") and Adjusted ROE – ROE for the quarter was 2%, as compared to 11% in the prior-year quarter. The decline was attributable to the decrease in net income. Adjusted ROE for the quarter was 11%, as compared to 21% in the prior-year quarter, with the decline attributable to the decrease in Adjusted Net Income. Secured Personal Loans As of March 31, 2026, the Company had a secured personal loan receivables balance of $233 million, or 9% of owned principal balance, up from $178 million, or 7% of owned principal balance at the end of the first quarter of 2025. Oportun currently offers secured personal loans in California, Texas, Florida, Arizona, New Jersey, Illinois, Nevada and Utah. During the first quarter, secured personal loans losses were substantially lower than for unsecured personal loans. Furthermore, secured personal loans are expected to generate approximately twice the revenue per loan compared to unsecured personal loans, primarily due to higher average loan sizes. Funding and Liquidity As of March 31, 2026, total cash was $210 million, consisting of cash and cash equivalents of $130 million and restricted cash of $79 million. Cost of Debt and Debt-to-Equity were 7.0% and 6.8x, respectively, for and at the end of the first quarter 2026 as compared to 8.2% and 7.6x, respectively, for and at the end of the prior-year quarter. As of March 31, 2026, the Company had $922 million of undrawn capacity on its existing $1,139 million personal loan warehouse lines. The Company's personal loan warehouse lines as of March 31, 2026 were committed through 2028 and up to 2029. Financial Outlook for Second Quarter and Full Year 2026 Oportun is providing the following guidance for 2Q 2026 and full year 2026: Conference Call As previously announced, Oportun’s management will host a conference call to discuss first quarter 2026 results at 5:00 p.m. ET (2:00 p.m. PT) today. A live webcast of the call will be accessible from the Investor Relations page of Oportun's website at https://investor.oportun.com. The dial-in number for the conference call is 1-866-604-1698 (toll-free) or 1-201-389-0844 (international). Participants should call in 10 minutes prior to the scheduled start time. Both the call and webcast are open to the general public. For those unable to listen to the live broadcast, a webcast replay of the call will be available at https://investor.oportun.com for one year. A file that includes supplemental financial information and reconciliations of certain non-GAAP measures to their most directly comparable GAAP measures, will be available on the Investor Relations page of Oportun's website at https://investor.oportun.com following the conference call. About Non-GAAP Financial Measures This press release presents information about the Company’s Adjusted Net Income (Loss), Adjusted EPS, Adjusted EBITDA, Adjusted Operating Expense, Adjusted Operating Expense Ratio, Adjusted ROE, Risk Adjusted Net Interest Margin, and Risk Adjusted Net Interest Margin Ratio, all of which are non-GAAP financial measures provided as a supplement to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company believes these non-GAAP measures can be useful measures for period-to-period comparisons of its core business and provide useful information to investors and others in understanding and evaluating its operating results. Non-GAAP financial measures are provided in addition to, and not as a substitute for, and are not superior to, financial measures calculated in accordance with GAAP. In addition, the non-GAAP measures the Company uses, as presented, may not be comparable to similar measures used by other companies. Reconciliations of non-GAAP to GAAP measures can be found below. About Oportun Oportun (Nasdaq: OPRT) is a mission-driven financial services company that puts its members' financial goals within reach. With intelligent borrowing, savings, and budgeting capabilities, Oportun empowers members with the confidence to build a better financial future. Since inception, Oportun has provided more than $22.2 billion in responsible and affordable credit, saved its members more than $2.5 billion in interest and fees, and helped its members set aside an average of more than $1,800 annually. For more information, visit Oportun.com. Forward-Looking Statements This press release contains forward-looking statements. These forward-looking statements are subject to the safe harbor provisions under 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. All statements other than statements of historical fact contained in this press release, including statements as to future performance, results of operations and financial position; achievement of the Company's strategic priorities and goals; the Company's expectations regarding macroeconomic conditions; the Company's profitability and future growth opportunities including expected revenue growth in connection with increasing originations; the effect of and trends in fair value mark-to-market adjustments on the Company's loan portfolio and asset-backed notes; the Company's second quarter and full year 2026 outlook; the Company’s expectations regarding Adjusted EPS in full year 2026; the Company's expectations related to future profitability on an adjusted basis, and the plans and objectives of management for our future operations, are forward-looking statements. These statements can be generally identified by terms such as “expect,” “plan,” “goal,” “target,” “anticipate,” “assume,” “predict,” “project,” “outlook,” “continue,” “due,” “may,” “believe,” “seek,” or “estimate” and similar expressions or the negative versions of these words or comparable words, as well as future or conditional verbs such as “will,” “should,” “would,” “likely” and “could.” These forward-looking statements speak only as of the date on which they are made and, except to the extent required by federal securities laws, Oportun disclaims any obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. In light of these risks and uncertainties, there is no assurance that the events or results suggested by the forward-looking statements will in fact occur, and you should not place undue reliance on these forward-looking statements. These statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause Oportun’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Oportun has based these forward-looking statements on its current expectations and projections about future events, financial trends and risks and uncertainties that it believes may affect its business, financial condition and results of operations. These risks and uncertainties include those risks described in Oportun's filings with the Securities and Exchange Commission, including Oportun's most recent annual report on Form 10-K, and include, but are not limited to, Oportun's ability to retain existing members and attract new members; Oportun's ability to accurately predict demand for, and develop its financial products and services; the effectiveness of Oportun's A.I. model; macroeconomic conditions, including fluctuating inflation and market interest rates; increases in loan non-payments, delinquencies and charge-offs; Oportun's ability to increase market share and enter into new markets; Oportun's ability to realize the benefits from acquisitions and integrate acquired technologies; the risk of security breaches or incidents affecting the Company's information technology systems or those of the Company's third-party vendors or service providers; Oportun’s ability to successfully offer loans in additional states; Oportun’s ability to compete successfully with other companies that are currently in, or may in the future enter, its industry; and changes in Oportun's ability to obtain additional financing on acceptable terms or at all. Contacts Investor Contact Dorian Hare (650) 590-4323 [email protected] Media Contact Michael Azzano Cosmo PR for Oportun (415) 596-1978 [email protected] Oportun and the Oportun logo are registered trademarks of Oportun, Inc. Note: Numbers may not foot or cross-foot due to rounding. Note: Numbers may not foot or cross-foot due to rounding. Note: Numbers may not foot or cross-foot due to rounding. Note: Numbers may not foot or cross-foot due to rounding. This press release dated May 7, 2026 contains non-GAAP financial measures. The following tables reconcile the non-GAAP financial measures in this press release to the most directly comparable financial measures prepared in accordance with GAAP. The Company believes that the provision of these non-GAAP financial measures can provide useful measures for period-to-period comparisons of Oportun's core business and useful information to investors and others in understanding and evaluating its operating results. However, non-GAAP financial measures are not calculated in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same names, and may differ from non-GAAP financial measures with the same or similar names that are used by other companies. Adjusted EBITDA The Company defines Adjusted EBITDA as net income, adjusted to eliminate the effect of certain items as described below. The Company believes that Adjusted EBITDA is an important measure because it allows management, investors and its board of directors to evaluate and compare operating results, including return on capital and operating efficiencies, from period to period by making the adjustments described below. In addition, it provides a useful measure for period-to-period comparisons of Oportun's business, as it removes the effect of income taxes, certain non-cash items, variable charges and timing differences. The Company believes it is useful to exclude the impact of income tax expense, as reported, because historically it has included irregular income tax items that do not reflect ongoing business operations. The Company believes it is useful to exclude depreciation and amortization and stock-based compensation expense because they are non-cash charges. The Company believes it is useful to exclude the impact of interest expense associated with the Company's corporate financing facilities, including the senior secured term loan and the residual financing facility, as it views this expense as related to its capital structure rather than its funding. The Company excludes the impact of certain non-recurring charges and other non-recurring charges because it does not believe that these items reflect ongoing business operations. Other non-recurring charges include litigation reserve, impairment charges, workforce optimization expenses, shareholder activism costs, debt amendment and warrant amortization costs related to our corporate financing facilities. The Company also excludes fair value mark-to-market adjustments on its loans receivable portfolio and asset-backed notes carried at fair value because these adjustments do not impact cash. Adjusted Net Income The Company defines Adjusted Net Income as net income adjusted to eliminate the effect of certain items as described below. The Company believes that Adjusted Net Income is an important measure of operating performance because it allows management, investors, and the Company's board of directors to evaluate and compare its operating results, including return on capital and operating efficiencies, from period to period, excluding the after-tax impact of non-cash, stock-based compensation expense and certain non-recurring charges. The Company believes it is useful to exclude the impact of income tax expense (benefit), as reported, because historically it has included irregular income tax items that do not reflect ongoing business operations. The Company also includes the impact of normalized income tax expense by applying a normalized statutory tax rate. The Company believes it is useful to exclude the impact of certain non-recurring charges and other non-recurring charges because it does not believe that these items reflect its ongoing business operations. Other non-recurring charges include litigation reserve, impairment charges, workforce optimization expenses, shareholder activism costs, debt amendment and warrant amortization costs related to our corporate financing facilities. The Company believes it is useful to exclude stock-based compensation expense because it is a non-cash charge. The Company also excludes the fair value mark-to-market adjustment on its asset-backed notes carried at fair value to align with the 2023 accounting policy decision to account for new debt financings at amortized cost. Risk Adjusted Net Interest Margin and Risk Adjusted Net Interest Margin Ratio The Company defines Risk Adjusted Net Interest Margin as total interest and non-interest income, less interest expense, credit losses and the impact of loan-related fair value adjustments. The Company defines Risk Adjusted Net Interest Margin Ratio as annualized Risk Adjusted Net Interest Margin divided by Average Daily Principal Balance. Average Daily Principal Balance represents the average loan balance outstanding over the reporting period. The Company believes Risk Adjusted Net Interest Margin and Risk Adjusted Net Interest Margin Ratio are important metrics because they reflect the net margin earned on its loan portfolio after accounting for both the cost of borrowing and the impact of credit performance, along with non-interest income. The Company believes that the Risk Adjusted Net Interest Margin measure provides management, investors, and Oportun's board of directors with a more complete understanding of the net margin of the Company’s loan portfolio and non-interest income on a risk-adjusted basis. The Company believes that the Risk Adjusted Net Interest Margin Ratio allows management, investors and Oportun's board of directors to evaluate its efficiency relative to its Average Daily Principal Balance. Adjusted Operating Expense and Adjusted Operating Expense Ratio The Company defines Adjusted Operating Expense as total operating expenses adjusted to exclude stock-based compensation expense and certain non-recurring charges, such as expenses associated with our workforce optimization, and other non-recurring charges. Other non-recurring charges include litigation reserve, impairment charges, workforce optimization expenses, shareholder activism costs, and debt amendment costs related to our Corporate Financing facility. The Company defines Adjusted Operating Expense Ratio as Adjusted Operating Expense divided by Average Daily Principal Balance. The Company believes Adjusted Operating Expense is an important measure because it allows management, investors and Oportun's board of directors to evaluate and compare its operating costs from period to period, excluding the impact of non-cash, stock-based compensation expense and certain non-recurring charges. The Company believes Adjusted Operating Expense Ratio is an important measure because it allows management, investors and Oportun's board of directors to evaluate how efficiently the Company is managing costs relative to revenue and Average Daily Principal Balance. Adjusted Return on Equity The Company defines Adjusted Return on Equity (“ROE”) as annualized Adjusted Net Income divided by average stockholders’ equity. Average stockholders’ equity is an average of the beginning and ending stockholders’ equity balance for each period. The Company believes Adjusted ROE is an important measure because it allows management, investors and its board of directors to evaluate the profitability of the business in relation to its stockholders' equity and how efficiently it generates income from stockholders' equity. Adjusted EPS The Company defines Adjusted EPS as Adjusted Net Income divided by weighted average diluted shares outstanding. (1) Certain prior-period financial information has been reclassified to conform to current period presentation. (2) Calculated as Adjusted Net Income divided by average stockholders’ equity. Note: Numbers may not foot or cross-foot due to rounding. (1) Certain prior-period financial information has been reclassified to conform to current period presentation. Note: Numbers may not foot or cross-foot due to rounding. Note: Numbers may not foot or cross-foot due to rounding. *Due to the uncertainty in macroeconomic conditions and quarterly volatility in the fair value mark to market adjustment, we are unable to precisely forecast the fair value mark-to-market adjustments on our loan portfolio and asset-backed notes on a quarterly basis. As a result, while we fully expect there to be a fair value mark-to-market adjustment which could have an impact on GAAP net income (loss), the net income (loss) information presented above assumes no change in the fair value mark-to-market adjustment. Note: Numbers may not foot or cross-foot due to rounding.