OppFi (NYSE:OPFI) executives highlighted what they described as a record year of performance on the company’s fourth-quarter and fiscal year 2025 earnings call, pointing to continued benefits from its underwriting model updates, expense discipline, and plans for new technology and product initiatives.
Management cites record year and continued underwriting progress
Executive Chairman and CEO Todd Schwartz said 2025 delivered “record-breaking performance,” with total revenue up 13.5% year-over-year and adjusted net income up 69% while maintaining a 78 Net Promoter Score. Schwartz emphasized the impact of “Model 6,” which he said is designed to identify riskier borrowers and price risk across segments.
Looking ahead, Schwartz said OppFi and its lending partners plan to release “Model 6.1” in the first half of 2026, which he expects to both boost originations and reduce risk through improved weighting and risk segmentation. He added that the credit team is also working with bank partners on “Model 7.0,” with early indicators “promising on both origination and risk fronts,” and the company plans to launch that model in Q3.
Q4 results: revenue growth, higher charge-offs, and improved cost structure
CFO Pam Johnson reported fourth-quarter revenue of $159 million, up 17% from Q4 2024, and described Model 6 as a “significant contributor” through risk-based pricing and the ability to underwrite larger loan amounts for creditworthy customers.
Originations increased 8% to $230 million in the quarter, and ending receivables rose 16% to $493 million. Johnson said revenue growth was supported by originations and receivables growth, producing a “stable revenue yield of 130%.”
Johnson also discussed credit trends, noting that the loans originated in the summer continued to show higher default rates. She said the short duration of OppFi’s loans means these effects move through the portfolio relatively quickly, and that by Q1 2026 “the majority of the higher default rate loans should be reflected” in earnings.
As a result of higher defaults, net charge-offs increased to 45% of revenue in Q4 from 42% a year earlier, and net charge-offs as a percentage of receivables rose to 59% from 54%. Johnson said OppFi believes much of the higher risk was “appropriately priced” through higher interest rates.
On expenses, Johnson said operational improvements drove lower total expenses before interest expense, declining to 28% of revenue from 33% in the prior-year quarter. She also said the company reduced interest expense to 6% of total revenue from 8% by paying down corporate debt and upsizing a credit facility at more attractive rates earlier in the year.
Adjusted net income in Q4 increased 27% to a record $26 million, while adjusted EPS grew 28% to $0.30. On a GAAP basis, net income rose 175% to $38 million, which Johnson said included a $12 million non-cash gain tied to a reduction in the fair value of outstanding warrants due to a decline in the company’s Class A stock price during the quarter.
Full-year 2025 results and balance sheet details
For the full year, Johnson said total revenue increased to $597 million, up 14% from 2024, driven by a 12% increase in originations to $899 million and a 16% increase in ending receivables to $493 million. The company reported an average yield of 133%, up from 131% in 2024.
Johnson said net charge-offs as a percentage of total revenue decreased to 37% from 39%, and net charge-offs as a percentage of average receivables decreased to 49% from 51%.
OppFi also cited tighter control over operating expenses excluding interest, with expenses declining to 29% of revenue from 35% in 2024. GAAP net income increased to $146 million from $84 million, and diluted EPS was $0.99 compared with $0.36. Adjusted net income rose to $140 million from $83 million, and adjusted EPS was $1.59 compared with $0.95.
On the balance sheet, Johnson said OppFi ended the quarter with $93 million in cash equivalents and restricted cash, $321 million in total debt, and $309 million in total stockholders’ equity. Total funding capacity was $618 million, including $204 million of unused debt capacity. The company also repurchased 515,000 shares of Class A common stock for $5 million during Q4.
Technology roadmap and a new product planned for 2026
Schwartz said OppFi continues to build “Lola,” which he described as an origination and servicing system designed with clean architecture to leverage AI tools across origination, servicing, and corporate operations. He said the building and test phase is complete and the project is in QA, with plans to “substantially migrate” to the new software system in Q3 2026.
He said early indicators suggest Lola could improve funnel metrics, raise automated approvals, enhance servicing and recoveries efficiency, improve systems integration, and reduce cycle times, providing greater throughput for product, tech, and risk teams.
Schwartz also announced a new line of credit product expected to launch with bank partners in summer 2026. He said the product is intended to provide fair and transparent features similar to the company’s installment product and could allow OppFi to serve “new geographies.”
Outlook: 2026 guidance and macro considerations
OppFi issued full-year 2026 guidance calling for total revenue of $650 million to $675 million, representing 9% to 13% growth over 2025. The company projected adjusted net income of $153 million to $160 million, up 9% to 14%, and adjusted EPS of $1.76 to $1.84 based on an anticipated diluted weighted average share count of 87 million shares.
During the Q&A, management discussed how quickly credit performance indicators emerge, with Schwartz saying the company looks at early signals within the month of origination, including first payments and “28 days” and “42 days out.” He also said OppFi is watching macro pressures such as inflation and gas prices, describing inflation as “a tax on our customers” that can affect discretionary income and repayment ability.
Schwartz said OppFi tightened credit in response to summer vintages but described the current posture as stable, with the company becoming more confident as it watches performance through Q1. He also noted that risk-based pricing is a key tool the company did not have during credit spikes in 2022.
On what the company learned from the summer vintages, Schwartz said the team reviewed extensive data but did not find a single factor that stood out as the sole driver of lower repayment rates, adding that OppFi monitors performance daily and believes the pace of model updates must be faster in a rapidly changing environment.
Schwartz also addressed capital allocation, noting the Q4 share repurchase and describing a “menu of options” that includes remaining well-capitalized, paying down debt, continuing investment in technology such as Lola, exploring strategic initiatives, considering M&A opportunities, and referencing that the company has done a special dividend in the past.
About OppFi (NYSE:OPFI)
OppFi (NYSE: OPFI) is a financial technology company that provides digital lending and credit solutions designed to meet the needs of near-prime consumers in the United States. Through its technology-driven platform, OppFi offers unsecured installment loans under the OppLoans brand, allowing borrowers to access credit online or via mobile devices. The company leverages proprietary data analytics and machine learning models to assess credit risk, streamline underwriting processes and deliver personalized loan products with transparent terms.
Headquartered in Chicago, Illinois, OppFi was founded in 2013 with a mission to increase financial inclusion for underserved and underbanked populations.
