Oportun Financial Corporation (OPRT) Earnings

Management highlights

### Strategic Priorities - Improving credit outcomes: Remained in tight credit posture, annualized net charge-off rate 12.65% in Q1 at midpoint of guidance range, 30+ delinquency rate 4.5% in Q1 meeting expectations, expect Q2 30+ delinquency rate to improve. - Strengthening business economics: Continuing to invest in credit decisioning capabilities, exploring risk-based pricing initiative with progress made including signing letter of intent with bank partner, launched payment protection offering which is opt-in during loan application, currently phased rollout with modest financial benefit in 2026 guidance but potential for profit enhancement at scale. - Identifying high-quality originations: Originations declined 11% in Q1 in line with expectations, expecting mid-single-digit percentage growth in originations this year, secured personal loan originations grew 12% year over year in Q1. ### Q1 Highlights: Recorded sixth consecutive quarter of GAAP profitability, net income $2.3 million, diluted EPS $0.05 per share. Adjusted net income $10 million, adjusted EPS $0.21 per share. Total revenue $229 million, down 3% year over year. Net decrease in fair value $86 million. Interest expense $48 million, down $9 million year over year. Net revenue $90 million, down $11 million year over year. Operating expenses $91 million, down 1% year over year. Adjusted EBITDA $29 million, down $4.2 million year over year. ### Capital and Liquidity: Strengthening debt capital structure, ended Q1 with 6.8x debt-to-equity ratio, down from 7.6x a year ago. Cash flow enabled unrestricted cash balance to $130 million as of end of Q1 2026, up $25 million from year-end 2025 and $52 million year over year. Paid down $30 million of high-cost corporate debt after end of Q1, total corporate debt repayments since October 2024 total $100 million, resulting in $15 million annual run-rate expense savings. Completed $485 million ABS transaction at 5.32% yield in February, issued $1.9 billion in ABS bonds at sub-6% yields over last 12 months.

Guidance

### Q2 Guidance: Total revenue $227 million to $232 million, annualized net charge-off rate 12.2% plus or minus 15 basis points, adjusted EBITDA $34 million to $39 million. ### Full-Year 2026 Guidance: Reiterated total revenue $935 million to $955 million, annualized net charge-off rate 11.9% plus or minus 50 basis points, adjusted EBITDA $150 million to $165 million, adjusted net income $74 million to $82 million, adjusted EPS $1.50 to $1.65. Full-year guidance underpinned by 1% to 2% decline in average daily principal balance, reduction in interest expense of at least 10%, substantially flat operating expenses. Expect to improve on first-quarter adjusted ROE performance in balance of the year and outpace last year's 17.5% adjusted ROE.

Segment performance

In Q1, total revenue was $229 million, down 3% year over year due to 11% year-over-year decline in originations. Secured personal loan originations grew 12% year over year, and the secured portfolio grew 30% year over year to $233 million, representing 9% of the owned portfolio. Annualized net charge-off rate was 12.65% in Q1, at the midpoint of guidance range. Q1 recorded sixth consecutive quarter of GAAP profitability with net income of $2.3 million and diluted EPS of $0.05 per share. Adjusted net income was $10 million and adjusted EPS was $0.21 per share. Secured personal loans had substantially lower average losses than unsecured personal loans in Q1.

Risks & headwinds

### Risks: Forward-looking statements may differ materially from actual results. Risk factors including macroeconomic outlook for low- and moderate-income households, impact of high fuel prices on members if persist, potential for credit losses, and execution risks related to rollout of initiatives like risk-based pricing and payment protection.

Analyst Q&A

• Q: Brendan McCarthy with Sidoti asked about outlook, new risk-based pricing initiative and fit into 2026 guidance, interest expense decline and margin boost, leverage and capital allocation once reaching 6x target.

  A: Paul Appleton responded on risk-based pricing initiative progress with modest benefit in 2026 guidance, interest expense decline due to corporate debt repayments and potential for further margin boost, capital allocation priorities of investing in profitable growth and paying down corporate debt currently.

• Q: Analyst with Jefferies asked about changes to demand trends due to high fuel prices and current mix of digital versus branch originations.

  A: Paul Appleton said in Q1 demand outpaced originations, Gaurav Rana said trends of digital versus branch originations to continue through the year with marketing spend lined up for mid-single-digit growth in originations.

• Q: Brendan McCarthy with Dougherty asked about confidence in hitting net charge-off guidance midpoint and specific credit indicators.

  A: Paul Appleton said 12.65% net charge-off rate in Q1 was expected due to mix shift, now shifted back to returning borrowers, roll rates improving, 30+ day delinquency trending lower, all signs point to continued improvement toward full-year 11.9% midpoint guidance