OppFi Q2 Earnings Call Highlights
Key Points
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- Q2 revenue reached a record $145 million, up 1.9% year over year, but adjusted net income fell 27% to about $29 million as originations declined 9% amid tighter underwriting and higher charge-offs.
- OppFi plans to launch its delayed line-of-credit product in September and is continuing its LOLA platform migration, initiatives management expects to support future origination growth and reduce product-development times.
- OppFi lowered its 2026 outlook to $600 million–$625 million in revenue and $115 million–$130 million in adjusted net income, while maintaining longer-term targets and pursuing the BNC National Bank acquisition targeted for the fourth quarter.
OppFi (NYSE:OPFI) reported second-quarter 2026 revenue growth but lower adjusted earnings as the consumer lending platform invested in new products, technology infrastructure and its planned acquisition of BNC National Bank.
Executive Chairman and CEO Todd Schwartz said the quarter fell short of the company’s original financial expectations, largely because the rollout of its line of credit product and completion of its LOLA system migration took longer than initially anticipated. Still, he characterized the period as productive strategically, citing product testing, platform development and work to strengthen the company’s competitive position.
Second-Quarter Results
OppFi reported revenue of $145 million for the second quarter, up 1.9% from the prior-year period and a record for any second quarter in company history, according to CFO Pam Johnson. Originations declined about 9% year over year to $212 million as the company tightened underwriting in customer segments where it viewed risk-adjusted returns as less attractive.
Johnson said the underwriting actions were intended to preserve portfolio quality and long-term profitability amid variability in consumer credit trends.
- Adjusted net income declined 27% year over year to approximately $29 million.
- Adjusted earnings per share fell to $0.33 from $0.45 a year earlier.
- Adjusted net income margin was 19.8%.
- Total adjusted operating expenses were about $49 million, or 34% of revenue, compared with 35% of revenue in the prior-year quarter.
On an unadjusted basis, expenses represented 43% of revenue, compared with 39% a year earlier, reflecting one-time expenses tied to the proposed BNC transaction and corporate simplification efforts.
Net charge-offs increased during the quarter. Net charge-offs as a percentage of revenue rose to about 40% from 32% a year earlier, while net charge-offs as a percentage of receivables increased to approximately 52% from 43%.
Johnson said the charge-off metrics can appear elevated during slower growth periods because of denominator effects. She also pointed to improved recoveries, which rose to about $15 million from $11 million in the prior-year period.
Product Launch and LOLA Platform
Schwartz said OppFi expects to launch a line of credit product with one of its bank partners in September, following testing during the second quarter involving pricing, term structure and customer behavior. The product’s launch had originally been planned earlier, and Schwartz described the updated timing as effectively a two-month delay from the prior plan.
The line of credit will initially expand OppFi into three new geographies and target new customers. The company later expects to test a market in which consumers can choose between the line of credit and installment loan products.
Schwartz said testing indicated that consumers are increasingly seeking products with lower monthly payments and longer repayment periods to improve monthly affordability and cash-flow flexibility. He said the line of credit will enable customers to draw smaller amounts over time, rather than relying solely on refinancings or new installment loans.
The product was built on OppFi’s modular technology platform in less than six months, according to Schwartz. He said the system architecture is expected to shorten development cycles and support future product launches. OppFi’s goal is to reduce product-development cycle times by 70% over the next year.
The company is also continuing its migration to the LOLA system. Schwartz said the delayed migration has held back certain product initiatives that the company believes could increase originations. He added that OppFi’s automated approval rate reached the 80% range for the first time during the quarter and that the new system should improve application-to-funding times for more manual applications.
Consumer Credit and Updated Outlook
During the question-and-answer session, Schwartz said the company began seeing changes in consumer sentiment last summer and has responded through risk-based pricing, term testing and underwriting adjustments. He said affordability, particularly the relationship between payments and consumer income, has become increasingly important.
Although charge-offs have risen from early 2025 levels, Schwartz said OppFi sees stability in the broader credit environment and expects to return to origination growth in the second half as its product initiatives move forward.
Because of the delayed line of credit launch and LOLA migration, OppFi reduced its full-year 2026 outlook. The company now expects:
- Total revenue of $600 million to $625 million.
- Adjusted net income of $115 million to $130 million.
- Adjusted EPS of $1.34 to $1.51.
Management said its outlook for 2027 and 2028 remains unchanged, including its objective of generating approximately $3 in earnings per share by the end of 2028.
BNC National Bank Transaction and Capital Position
OppFi said it has submitted regulatory applications to the Office of the Comptroller of the Currency and other agencies for its pending acquisition of BNC National Bank. The company continues to target a fourth-quarter closing, though Schwartz said the timing ultimately depends on the regulatory process.
Johnson said the transaction is expected to be financially transformative, with anticipated revenue synergies beginning in 2027 through geographic expansion, cross-selling opportunities and a broader suite of financial products. OppFi expects the combined company to generate return on assets of at least 10% and return on equity of at least 35% by 2028.
At quarter-end, OppFi had approximately $92 million in cash equivalents and restricted cash, $277 million in total debt and $414 million in total stockholders’ equity. total funding capacity was $541.8 million, including $173.5 million of unused debt capacity.
The company also began repurchasing shares during the quarter under its board-authorized $40 million repurchase program. Johnson said the buybacks reflected management’s view that the company’s valuation does not adequately reflect its long-term earnings potential.
About OppFi (NYSE:OPFI)
OppFi (NYSE: OPFI) is a financial technology company that provides digital lending and credit solutions designed to meet the needs of near-prime consumers in the United States. Through its technology-driven platform, OppFi offers unsecured installment loans under the OppLoans brand, allowing borrowers to access credit online or via mobile devices. The company leverages proprietary data analytics and machine learning models to assess credit risk, streamline underwriting processes and deliver personalized loan products with transparent terms.
Headquartered in Chicago, Illinois, OppFi was founded in 2013 with a mission to increase financial inclusion for underserved and underbanked populations.
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