OppFi Trims 2026 Outlook As Charge-Offs Climb To 40.1% Of Revenue
The digital lender cut the top end of all three full-year targets after third-quarter profit fell and loan losses rose.
OppFi, which runs a digital lending platform that helps community banks extend credit to consumers, said third-quarter revenue fell 3.8% to $149.2 million and lowered the top end of all three of its 2026 targets. Net income dropped 54.6% to $34.5 million, the company reported in an 8-K filing.
Losses ate into a smaller revenue base
Adjusted net income, a measure that strips out items such as warrant-value swings and deal costs, fell 22.5% to $31.6 million. Adjusted earnings per share slipped to $0.37 from $0.46 a year earlier.
Net charge-offs, loans written off as uncollectible net of recoveries, rose to 40.1% of revenue from 35.1%. The company said elevated charge-offs more than offset a 38% increase in recoveries of previously written-off loans, which reached $15.2 million.
Total net originations fell 6.8% to $229.3 million, which the company attributed to tighter screening criteria for marketing partners. Ending receivables dropped 4.7% to $458.6 million, and average yield eased to 131.4% from 133.2%.
The prior-year net income comparison is flattered by a $31.7 million warrant gain in last year's quarter, against $2.8 million this time.
A lower ceiling on the full-year targets
OppFi now expects 2026 revenue of $600 million to $610 million, adjusted net income of $115 million to $120 million and adjusted earnings per share of $1.34 to $1.40. The earnings presentation shows the top ends cut from $625 million, $130 million and $1.51.
For the first nine months, revenue rose 1.9% to $446.3 million while adjusted net income fell 20.7% to $90.4 million.
Line of credit, buybacks and cash
OppFi makes its money as a service provider to partner banks, which fund the loans. It launched a line of credit product in the quarter, and all new customers now run through its new application system, LOLA. CEO and Executive Chairman Todd Schwartz said the company is "building a more diversified, technology- enabled financial platform."
The company repurchased $6.7 million of stock in the quarter under a $40 million authorization, and $17.9 million in the first nine months at an average $8.91 a share. Free cash flow, a non-GAAP measure, reached $107.5 million for the nine months, up from $66.1 million a year earlier.
Cash and restricted cash stood at $140.7 million at September 30, and OppFi cited about $690.7 million in total funding capacity. It also has a proposed acquisition of BNCCORP pending.
Management discusses the outlook and the line of credit rollout on its earnings call Wednesday at 8:30 a.m. ET.
Sources
- 8-K Filing — OppFi Inc. (OPFI) — SEC EDGAR
- Exhibit opfi-20260930earningsrel.htm — OppFi Inc. 8-K exhibit — SEC EDGAR
- Exhibit a2026q3earningspresentat.htm — OppFi Inc. 8-K exhibit — SEC EDGAR
- OppFi Reports Third Quarter 2026 Results — prnewswire.com
