OppFi, Inc. (NYSE: OPFI) has demonstrated remarkable financial performance in the third quarter of 2024, with revenue reaching $136.6 million, adjusted net income of $31.5 million, and adjusted earnings per share (EPS) of $0.36, surpassing both company and consensus estimates. This performance underscores the company's strategic focus on profitability and sustainable expansion in its core business of providing credit access to underbanked consumers.
The company's net revenue margin saw a significant expansion by 992 basis points to 66.7%, compared to the same period last year. This growth is a testament to OppFi's effective management and operational efficiency. With $74.2 million in cash and restricted cash, and $199.4 million in unused debt capacity, OppFi's total liquidity stands at $273.6 million, offering the company considerable flexibility for future growth initiatives and enhancing shareholder value.
Lending activity also saw a positive uptick, with total net originations amounting to $218.8 million for the quarter. This represents an increase from both the previous quarter and the same period last year. The auto-approval rate improved to 77%, up from 72% in Q3 2023, with all originations facilitated through bank partners, highlighting the success of OppFi's partnership model.
Credit quality improvements were notable, with charge-offs as a percentage of total revenue decreasing to 34.3% from 42% in the same quarter last year. This improvement reflects OppFi's ability to grow its loan portfolio while effectively managing risk, a critical advantage in the current economic climate.
In light of these strong results, OppFi has raised its full-year guidance for adjusted net income to between $74 million and $76 million, up from the previous range of $63 million to $65 million. Similarly, adjusted EPS guidance has been increased to $0.85 to $0.87, from $0.73 to $0.75. These adjustments signal confidence in the company's continued growth and profitability.
OppFi's performance in Q3 2024 and its optimistic outlook for the future underscore its resilience and adaptability in a challenging economic environment. As the company continues to focus on serving underbanked consumers and leveraging its strong liquidity position, it is well-positioned to capitalize on market opportunities and drive further growth in the financial technology sector.
