OppFi, Inc. (NYSE: OPFI) reported financial results for the third quarter of 2025, demonstrating continued momentum with record total revenue and adjusted net income. The company achieved revenue of $155.1 million, up 13.5% year-over-year, and adjusted net income of $40.7 million, a 41.0% increase from the prior-year period. Adjusted earnings per share rose to $0.46, compared to $0.33 in 3Q24. These results exceeded consensus estimates of $153.4 million in revenue, $28.9 million in adjusted net income, and $0.32 in adjusted EPS, according to Stonegate Capital Partners, which updated its coverage on the company.
The net revenue margin expanded 70 basis points year-over-year to 67.4%, reflecting improved operating leverage. Net income surged 136.9% to $75.9 million, benefiting from lower expenses and a $32.0 million non-cash gain from lower warrant fair value. Adjusted net income margin widened by 520 basis points to 26.3%, underscoring the company's disciplined cost management and scaling benefits. Total net originations increased 12.5% year-over-year to $246.1 million, driven by stronger demand and credit-model upgrades that enabled larger average loans. The auto-approval rate improved to 79% from 77% a year ago, aided by advancements in OppFi's Model 6 platform.
Credit quality remained stable but slightly softer, with the net charge-off rate rising to 35.1% of total revenue, up approximately 100 basis points from the prior year, though down from 42% in the fourth quarter of 2024. Annualized net charge-offs as a percentage of average receivables increased to 47% from 46% last year, attributed to elevated early-summer charge-offs, partially offset by improved recoveries. The company continues to employ risk-based pricing and plans to roll out the Model 6.1 refit in the fourth quarter of 2025 and fully in the first quarter of 2026 to tighten higher-risk segments while sustaining growth.
Liquidity remains robust, with $75.2 million in cash and restricted cash, including $45.4 million in unrestricted cash. Total funding capacity stands at $600.2 million, with $204.2 million in undrawn debt. Year-to-date, OppFi generated $66.1 million in free cash flow, enabling a $21.7 million special dividend paid in the third quarter and $7.4 million in share repurchases. The company also secured a new $150 million Castlelake facility that reduces financing costs by 150 basis points.
Given the strong performance, OppFi raised the low end of its full-year 2025 revenue guidance to $590–$605 million, up from $578–$605 million. The company also increased adjusted net income guidance to $137–$142 million (from $125–$130 million) and adjusted EPS to $1.54–$1.60 (from $1.39–$1.44), based on approximately 89.0 million diluted shares. Stonegate Capital Partners believes OppFi is well positioned to meet or exceed this guidance based on current trends.
Stonegate uses a P/E comp analysis for valuation, applying a multiple range of 8.5x to 9.5x, with a midpoint of 9.0x, resulting in a valuation range of $14.56 to $16.28 per share, with a midpoint of $15.42. The full research report is available from Stonegate Capital Partners.
