OppFi Inc. reported strong 2024 results and provided impressive 2025 guidance, driven by internal improvements in credit scoring and risk profile. The company offers lending solutions to subprime and non-prime consumers, benefiting from the rise of digital banking and consumer-friendly interfaces. Financial metrics showed significant improvements, including higher EPS, lower net charge-off rates, and increased free cash flow, indicating a positive trend.
I maintain a "Strong Buy" rating on OppFi Inc. due to its strategic investment in Bitty Holdings and potential for significant margin expansion. Q4 2024 results exceeded expectations, with revenue and adjusted EPS beating consensus, and notable improvements in net income margins and credit quality. OppFi's FY2025 guidance suggests continued growth, with projected revenue of $563-594 million and adjusted EPS of $1.06-1.07, aligning with consensus.
Dallas, Texas--(Newsfile Corp. - March 5, 2025) - OppFi, Inc. (NYSE: OPFI): Stonegate Capital Partners Updates Coverage on OppFi (NYSE: OPFI). OPFI reported revenue, adj.
OppFi, Inc (NYSE:OPFI ) Q4 2024 Earnings Conference Call March 5, 2025 9:00 AM ET Company Participants Mike Gallentine - Head of IR Todd Schwartz - Executive Chairman, Director & CEO Pamela Johnson - CFO Conference Call Participants David Scharf - Citizens Mike Grondahl - Northland Securities Dave Storms - Stonegate Capital Partners Operator Good morning, and welcome to OppFi's Fourth Quarter 2024 Earnings Conference Call. All participants are in a listen-only mode.
OppFi Inc. (OPFI) came out with quarterly earnings of $0.23 per share, beating the Zacks Consensus Estimate of $0.14 per share. This compares to earnings of $0.10 per share a year ago.
OppFi is a digital subprime lender with competitive advantages in credit-scoring technology and a user-friendly platform. The company faced challenges due to inflation, impacting earnings in 2022-2023, but is expected to resume loan growth in 2025 with a 20% EPS expansion. OPFI is undervalued at 8x P/E, with potential for multiple expansion to 10x as it restarts lending growth and improves profitability.
OppFi: This Dip Caught My Attention
OppFi is a specialty finance firm with a $1.12 billion market cap, focusing on underserved American populations, with a market of more than 60 million consumers. Despite minimal net sales growth, OppFi's adjusted net income surged 116.2% YoY in Q3, driven by expansive margin growth and better unit economics metrics. The firm's better cost control and ongoing strategies to attract and onboard new customers will likely remain the fundamental driver of its future revenue growth and margin stability.
Given OPFI's price surge, we evaluate its current position to determine whether investors should buy, hold or sell the stock.
OppFi Inc. targets underserved populations with financial products, showing impressive net income growth and operational efficiency improvements in Q3 FY2024. Despite a slight revenue growth, OPFI's net income surged by 106.4% YoY, driven by cost management and improved credit quality. If my assumption is close to being true regarding 15-20% in net adjusted margin on the consensus revenue, then the OPFI stock is an easy double from today's $15-16/share.