Oportun Financial Reports $9.8 Million Net Income in Q1 2025, Significant Turnaround from Previous Year

Oportun Financial Corporation reported a net income of $9.8 million for the first quarter of 2025, a significant turnaround from a net loss of $26.4 million in the same period last year. Total revenue for the quarter was $235.9 million, down 5.8% from $250.5 million in Q1 2024, primarily due to a decrease in interest income, which fell by 4.5% to $220.2 million. The company attributed this decline to a 5.1% decrease in the average daily principal balance of loans, which was impacted by the sale of its credit card portfolio in November 2024. Non-interest income also decreased by 21.2% to $15.7 million, driven by lower fees related to its Pathward program and a reduction in subscription revenue.

Oportun's operating expenses decreased by 15.5% to $92.7 million, compared to $109.6 million in the prior year. This reduction was largely due to lower technology and facilities costs, which fell by 22.6%, and a decrease in personnel expenses, which dropped by 14.5%. The company has been implementing cost-saving measures, including a workforce reduction of approximately 12% of its corporate staff, which contributed to the decline in operating expenses. As a result, the company reported an income before taxes of $13.2 million, compared to a loss of $30.5 million in the previous year.

In terms of operational metrics, Oportun originated $469.4 million in loans during the first quarter, a 38.8% increase from $338.2 million in Q1 2024. The number of loans originated also rose to 142,843 from 115,912 year-over-year. The company reported a portfolio yield of 33.0%, up from 32.5% in the prior year, reflecting higher pricing on personal loan products. The 30+ day delinquency rate improved to 4.7% from 5.2%, indicating better credit performance, while the annualized net charge-off rate slightly increased to 12.2% from 12.0%.

Oportun's total assets as of March 31, 2025, were $3.23 billion, a slight decrease from $3.23 billion at the end of 2024. The company’s liabilities also decreased to $2.86 billion from $2.87 billion, with secured financing dropping significantly from $535.5 million to $445.5 million. The company’s stockholders' equity increased to $366.1 million from $353.8 million, reflecting the positive net income for the quarter. Looking ahead, Oportun aims to continue expanding its loan origination capabilities and improving its financial performance while managing operational costs effectively.