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OppFi Q2 adjusted EPS misses estimates as credit losses rise

OppFi Q2 adjusted EPS misses estimates as credit losses rise

Overview

  • U.S. digital finance platform's Q2 revenue up 1.9% yr/yr to record for second qtr

  • Adjusted EPS for Q2 fell 25% yr/yr and missed analyst expectations

  • Company repurchased $11.2 mln of stock in H1 and updated full-year guidance


Outlook

  • OppFi sees full-year 2026 revenue between $600 mln and $625 mln

  • Company expects 2026 adjusted net income of $115 mln to $130 mln

  • OppFi forecasts 2026 adjusted EPS between $1.34 and $1.51


Result Drivers

  • CREDIT LOSSES - Net charge-offs as a percentage of total revenue and average receivables rose significantly yr/yr, indicating higher credit losses impacted results

  • HIGHER EXPENSES - Professional fees and other adjustments rose due to acquisition and corporate restructuring costs


Company press release: ID:nPn4rvzSta


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Adjusted EPS

Miss

$0.33

$0.45 (4 Analysts)

Q2 EPS

$0.18


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy"

  • Wall Street's median 12-month price target for OppFi Inc is $15.00, about 59.6% above its August 7 closing price of $9.40

  • The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago


Reuters Recommended Reads

  • Aug 10 - Security National Financial's Q2 profit rises on mortgage segment improvement

  • Aug 10 - SHF Holdings Q2 revenue rises 4.8%, net loss widens on deemed dividend

  • Aug 10 - Trading platform Plus500 reports higher core profit as US business gains traction


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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