OppFi, Inc. (NYSE: OPFI) has reported a notable financial performance for the fourth quarter of 2024, showcasing substantial growth in revenue and net income. The company's total revenue reached $135.7 million, marking a 2.1% increase from the previous year and surpassing both internal and consensus estimates. This financial achievement is further emphasized by a dramatic expansion in net revenue margin to 59.5%, a significant improvement from the prior year.
The company's net income experienced an extraordinary 619.7% year-over-year growth, amounting to approximately $14.0 million. Adjusted net income also saw a substantial rise, increasing by 140.3% to $20.3 million. These figures underscore OppFi's robust financial health and operational efficiency. Additionally, OppFi demonstrated strong liquidity, with $88.3 million in cash and restricted cash at the quarter's end, alongside $206.2 million in unused debt capacity, providing ample financial flexibility for future endeavors.
Total net originations for the quarter were reported at $214.0 million, an 11% increase from the previous year, driven by expanded bank partnerships and improved lead evaluation capabilities. The auto-approval rate improved to 79%, up from 73% in the prior year, reflecting the effectiveness of the company's algorithmic underwriting process. Credit risk management also showed improvement, with charge-offs as a percentage of total revenue declining to 42% from 46% the previous year.
Looking ahead, OppFi has provided an optimistic guidance for 2025, projecting full-year revenue between $563.0 million and $594.0 million, representing a 7% to 13% year-over-year increase. Adjusted net income is expected to range from $95.0 million to $97.0 million, reflecting a 15% to 17% annual growth. This forward-looking statement is supported by disciplined cost management and sustained demand for OppFi's financial products. Analysts at Stonegate Capital Partners view the company as well-positioned to meet its guidance, with a valuation range between $9.95 and $11.12 based on a peer comparative analysis.
