OPFI - OppFi Inc.

OppFi Inc. operates OppLoans, an online installment loan platform targeting near-prime and subprime consumers who are typically declined by traditional banks, offering unsecured personal loans ranging from $500 to $4,000. The business model is direct-to-consumer digital lending, originating loans through bank partnerships (a bank-as-a-service structure) and earning revenue from interest and fees on held or purchased loan receivables. OppFi generates approximately $500–600M in annual revenue, operating exclusively in the United States across dozens of states where it holds lending licenses or operates under bank partner charters. The company serves working Americans with FICO scores generally below 700, competing with payday lenders and other fintech installment lenders in the non-prime consumer credit segment.

Past Year Trends

• OppFi's full-year 2025 net income surged 74.4% YoY to $146.2M on revenue of $597.1M (+13.5% YoY), with operating expenses falling 12% YoY and net charge-offs improving to 37% of revenue from 39% in 2024, reflecting disciplined credit and cost management. (Bullish)
• Annual loan originations grew 12% YoY to $899M in 2025, pushing ending receivables up 16% YoY to $493.1M, but Q1 2026 originations reversed course and fell 7.0% YoY to $175.975M as tighter underwriting from the Model 6.1 rollout constrained volume. (Bearish)
• Net charge-offs as a percentage of revenue rose sharply from 34.6% in Q1 2025 to 42.5% in Q1 2026, driven by weaker-than-expected performance from summer 2025 loan vintages that also elevated Q4 2025 charge-offs to 45% of revenue. (Bearish)

Next Year Trends

• OppFi's announced $130M acquisition of BNCCORP and BNC National Bank (pending Fed/OCC/FDIC approval, expected Q4 2026) would grant OppFi a national bank charter, eliminating dependence on third-party bank partners and state-by-state regulatory fragmentation, with management projecting at least $60M in synergies in year one post-close. (Bullish)
• The planned summer 2026 launch of an OppLoans-branded line of credit product entering 3 new geographies, combined with the Q3 2026 deployment of underwriting Model 7.0, represents OppFi's first second-product offering and a direct attempt to expand its addressable market beyond single-draw installment loans. (Bullish)
• Adjusted net income declined 11.2% YoY in Q1 2026 despite record revenue, as elevated net charge-offs (55.5% of average receivables annualized) compressed margins; if the summer 2025 vintage credit weakness persists into new 2026 cohorts ahead of the Model 7.0 rollout in Q3 2026, full-year adjusted EPS guidance of $1.76–$1.84 is at risk. (Bearish)

Red Flags

[Securities Fraud / Investigation] Securities fraud class action lawsuits (2022–2023): Multiple class action suits filed alleging OppFi operated an illegal 'rent-a-bank' scheme charging usurious interest rates up to 160%, evading state usury caps by disguising itself as a loan servicer while acting as the true lender. — ClassAction.org; Consumer Finance Monitor, 2022–2023

[Securities Fraud / Investigation] Shareholder investigation (2023): Officers and directors investigated for possible breaches of fiduciary duty related to allegedly false and misleading statements in connection with the July 2021 reverse merger and subsequent correction of 2021–2022 financial statements. — PR Newswire shareholder alert; MarketScreener, 2023

[Financial Restatement / Auditor Issue] Financial restatement and material weakness (December 2022): Following an SEC inquiry, OppFi disclosed a material weakness in internal controls and filed a restated 10-K/A for fiscal year 2021. — SEC EDGAR filings (10-K/A, 10-K), OppFi Inc., December 2022

[Financial Restatement / Auditor Issue] Auditor dismissal (October 2021): Plante & Moran, PLLC was dismissed as OppFi's independent auditor and replaced by RSM US LLP shortly after the company went public via reverse merger. — SEC EDGAR filings, OppFi Inc. 8-K, October 2021