Oportun Financial Reports $78.7 Million Net Loss for Fiscal Year 2024, Revenue Declines 5.2%

Oportun Financial Corporation reported a net loss of $78.7 million for the fiscal year ending December 31, 2024, a significant improvement from the $180.0 million loss recorded in 2023. The company's total revenue decreased by 5.2% to $1.0 billion, down from $1.1 billion in the previous year. This decline was primarily driven by a 3.9% drop in interest income, which fell to $925.5 million, attributed to a decrease in the average daily principal balance of loans. However, the portfolio yield increased to 33.5%, up from 32.2% in 2023, indicating improved pricing on personal loan products.

In terms of operational metrics, Oportun's aggregate loan originations decreased by 2.1% to $1.78 billion, influenced by a strategic shift in underwriting standards that resulted in a lower average loan size. Despite this, the number of loans originated increased to 536,018 from 467,188 in the previous year, largely due to the reintroduction of the Access Loan program. The company also reported a decrease in its 30+ day delinquency rate to 4.8%, down from 5.9% in 2023, reflecting improved credit outcomes.

Strategically, Oportun has made significant changes to streamline operations, including a reduction of approximately 12% of its corporate staff and the closure of 41 retail locations. These measures are part of a broader initiative to reduce operating expenses by $30 million annually. The company also completed the sale of its credit card receivable portfolio in November 2024, which is expected to enhance profitability by simplifying its business model.

Looking ahead, Oportun aims to expand its market presence and product offerings, particularly through its Lending as a Service model, which has seen partnerships with companies like Western Union. The company plans to leverage artificial intelligence to enhance its credit scoring and underwriting processes, which it believes will help in managing credit risk and improving financial performance. Oportun's management remains cautious about macroeconomic conditions, including interest rate fluctuations and inflation, which could impact future growth and operational stability.