OppFi Inc. Q1 FY2025 earnings call

• Achieved record quarterly revenue, adjusted net income, and operating margin. Originations grew 16% and revenue 10% YOY. - Paid off corporate debt in Q1 2025, expanded Blue Owl facility, and paid a $21.7 million special dividend in Q2. - Model 6 performed well, improving credit metrics; net charge-off rate improved to 35% of revenue. - 79% of loans approved in seconds with no human intervention, total expenses before interest declined 18%. - Auto approval rate improved to 79% in Q1 2025, up from 73% in Q1 2024.

For OppFi, the first quarter of 2025 was a record quarter. OppLoans had an auto approval rate of 79% in Q1 2025, up from 73% in Q1 2024, an 80 NPS score, and a CSAT score over 90%. The Bitty business continued to drive accretive profitability and cash flow to OppFi. Revenue from OppFi grew 10% YOY, with originations up 16%. Net charge-off rate improved to 35% of revenue from 48% in the prior year. Revenue contribution details for specific segments aren't explicitly broken down beyond these highlights.

• Full year 2025 total revenues expected to be $563 million to $594 million, a 7%-13% increase from 2024. - Adjusted net income guidance increased to $106 million to $113 million, up from prior $95 million to $97 million. - Adjusted EPS expected to be between $1.18 and $1.26.

• Macro economic volatility could impact business performance. - Uncertainty in small business investments with Bitty due to macro uncertainty.

Q: What changed from 4Q 2024 to Q1 2025 to result in the adjusted net income beat?

A: Better than expected operational efficiencies, credit performance, strong repayment season, and continued strong yield.

Q: Are there any hesitations with small business investments in Bitty due to macro uncertainty?

A: Bitty's revenue-based finance is short duration, well positioned to weather macro choppiness.

Q: Thoughts on special dividend vs regular quarterly dividend?

A: Preserving flexibility for capital deployment, including inorganic growth and shareholder rewards.

Q: What are the inorganic opportunities being focused on?

A: Focus on SMB space and consumer POS, with synergies and cross-sell opportunities.

Q: Insights on yield and credit box?

A: Disciplined credit box, yield from risk-based pricing and better retainment rates.

Q: Thoughts on share repurchases?

A: Considering when share price is disconnected, weighing highest and best use of capital.

Q: Customer patterns and pull forward of buying/borrowing?

A: Stable consumer, no major impact from tariffs observed.

Q: Cost discipline levers?

A: Continuous improvement in auto approvals, leveraging AI for better customer experience.

Q: How is 2Q tracking and impact of macro uncertainty?

A: Positive momentum for growth, with levers to unlock in marketing channels.

Q: What are you most excited about for the remainder of the year?

A: Executing on the vision of being a multi-product digital financial platform, unlocking earnings potential and improving models.