Total revenue increased 14% year over year to $122.5 million for second quarter of 2023

Net income grew 90% year over year to $18.1 million for second quarter of 2023

Adjusted net income increased 138% year over year to $16.3 million for second quarter of 2023

Basic and Diluted EPS of $0.14 and $0.14, respectively, for second quarter of 2023

Adjusted EPS of $0.19 for second quarter of 2023

Net charge-off rates decreased sequentially and year over year for second quarter of 2023

Marketing cost per funded loan decreased 23% year over year for second quarter of 2023

Total expenses as a percentage of total revenue decreased 16% year over year for second quarter of 2023

OppFi Inc. (NYSE:OPFI, OPFI WS))) ("OppFi" or the "Company"), a mission-driven fintech platform that helps everyday Americans gain access to credit with digital specialty finance products, today reported financial results for the second quarter ended June 30, 2023.

"During the quarter, we further demonstrated our focus on profitability by balancing growth and risk as well as maintaining expense discipline," said Todd Schwartz, Chief Executive Officer and Executive Chairman of OppFi. "In the second quarter of 2023, we more than doubled adjusted net income, while achieving double-digit revenue growth, on a year-over-year basis."

"These results were driven by improvement in credit performance, due to adjustments made last year and recent modeling enhancements, as well as continued total expense leverage and growth in recoveries," concluded Schwartz. "We are raising our guidance for full-year adjusted net income and adjusted earnings per share, based on second quarter results and current business trends."

Financial Summary

The following tables present a summary of OppFi's results for the three and six months ended June 30, 2023 and 2022.

(in thousands, except per share data) Unaudited	Three Months Ended June 30,				Change
		2023		2022	%
Total revenue	$	122,486	$	107,875	13.5	%
Net income	$	18,076	$	9,497	90.3	%
Adjusted net income⁽¹⁾	$	16,255	$	6,819	138.4	%
Adjusted EBITDA⁽¹⁾	$	35,744	$	20,007	78.7	%
Basic EPS	$	0.14	$	0.26	(46.4	)%
Diluted EPS	$	0.14	$	0.10	36.5	%
Adjusted EPS⁽¹⁾	$	0.19	$	0.08	137.1	%

(in thousands, except per share data) Unaudited	Six Months Ended June 30,				Change
		2023		2022	%
Total revenue	$	242,860	$	208,585	16.4	%
Net income	$	22,006	$	9,200	139.2	%
Adjusted net income⁽¹⁾	$	20,691	$	7,377	180.5	%
Adjusted EBITDA⁽¹⁾	$	55,861	$	31,192	79.1	%
Basic EPS	$	0.16	$	0.33	(53.4	)%
Diluted EPS	$	0.16	$	0.10	55.8	%
Adjusted EPS⁽¹⁾	$	0.24	$	0.09	179.8	%

⁽¹⁾ Non-GAAP Financial Measures: Adjusted net income, Adjusted EBITDA and Adjusted EPS are financial measures that have not been prepared in accordance with GAAP. See "Reconciliation of Non-GAAP Financial Measures" below for a detailed description and reconciliation of such Non-GAAP financial measures to their most directly comparable GAAP financial measures.

Second Quarter Key Performance Metrics

The following tables represent key quarterly metrics. Beginning with this quarter, for all periods presented, the Company has updated its key performance metrics to reflect the Company's decision to wind down its SalaryTap and OppFi Card businesses. The key performance metrics presented are for the OppLoans product only and exclude the SalaryTap and OppFi Card products. Prior period metrics currently presented may differ slightly than previously reported due to the exclusion of SalaryTap and OppFi Card.

(in thousands) Unaudited	As of and for the Three Months Ended,
	June 30, 2023			March 31, 2023			June 30, 2022
Total Net Originations^(a)	$	200,640		$	159,596		$	224,919
Ending Receivables^(b)	$	397,754		$	369,715		$	395,816
% of Originations by Bank Partners		97	%		95	%		95	%
Net Charge-Offs as % of Total Revenue^(c)		36	%		49	%		43	%
Net Charge-Offs as % of Average Receivables^(c)		47	%		62	%		52	%
Auto-Approval Rate^(d)		72	%		70	%		63	%

a.	Total net originations include both originations by bank partners on the OppFi platform, as well as direct originations by OppFi.
b.	Receivables are defined as the unpaid principal balances of loans at the end of the reporting period.
c.	Annualized net charge-offs as a percentage of total revenue and annualized net charge-offs as a percentage of average receivables (defined as the unpaid principal of loans) represents total charge offs from the period less recoveries as a percent of total revenue and average receivables, respectively. Finance receivables are charged off at the earlier of the time when accounts reach 90 days past due on a recency basis, when OppFi receives notification of a customer bankruptcy or is otherwise deemed uncollectible.
d.	Auto-Approval Rate is calculated by taking the number of approved loans that are not decisioned by a loan advocate or underwriter (auto-approval) divided by the total number of loans approved.

Full Year 2023 Guidance Update

Affirm total revenue
- $500 million to $520 million, resulting in approximately 10% to 15% growth year over year;
Raise adjusted net income
- $29 million to $35 million, from previous range of $24 million to $30 million; and
Increase adjusted earnings per share
- $0.34 to $0.41 based on approximate weighted average diluted share count of 85.0 million, from previous range of $0.28 to $0.35, based on approximate weighted average diluted share count of 85.0 million.

Conference Call

Management will host a conference call today at 4:30 p.m. ET to discuss OppFi's financial results and business outlook. The webcast of the conference call will be made available on the Investor Relations page of the Company's website.

The conference call can also be accessed with the following dial-in information:

Domestic: (877) 407-0789
International: (201) 689-8562

An archived version of the webcast will be available on OppFi's website.

About OppFi

OppFi (NYSE:OPFI, OPFI WS))) is a mission-driven fintech platform that helps everyday Americans gain access to credit with digital specialty finance products. Through its unwavering commitment to customer service, the Company supports consumers, who are turned away by mainstream options, to build better financial health. OppLoans by OppFi maintains a 4.5/5.0 star rating on Trustpilot with more than 3,900 reviews, making the Company one of the top consumer-rated financial platforms online. For more information, please visit oppfi.com.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. OppFi's actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "possible," "continue," and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, without limitation, OppFi's expectations with respect to its full year 2023 guidance, the future performance of OppFi's platform, and expectations for OppFi's growth and future financial performance. These forward-looking statements are based on OppFi's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside OppFi's control and are difficult to predict. Factors that may cause such differences include, but are not limited to: the impact of general economic conditions, including economic slowdowns, inflation, interest rate changes, recessions, and tightening of credit markets on OppFi's business; the impact of challenging macroeconomic and marketplace conditions, including lingering effects of COVID-19 on OppFi's business; the impact of stimulus or other government programs; whether OppFi will be successful in obtaining declaratory relief against the Commissioner of the Department of Financial Protection and Innovation for the State of California; whether OppFi will be subject to AB 539; whether OppFi's bank partners will continue to lend in California and whether OppFi's financing sources will continue to finance the purchase of participation rights in loans originated by OppFi's bank partners in California; the impact that events involving financial institutions or the financial services industry generally, such as actual concerns or events involving liquidity, defaults, or non-performance, may have on OppFi's business; risks related to the material weakness in OppFi's internal controls over financial reporting; the risk that the business combination disrupts current plans and operations; the ability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition, the ability of OppFi to grow and manage growth profitably and retain its key employees; risks related to new products; concentration risk; costs related to the business combination; changes in applicable laws or regulations; the possibility that OppFi may be adversely affected by other economic, business, and/or competitive factors; risks related to management transitions; risks related to the restatement of OppFi's financial statements and any accounting deficiencies or weaknesses related thereto; and other risks and uncertainties indicated from time to time in OppFi's filings with the United States Securities and Exchange Commission, in particular, contained in the section or sections captioned "Risk Factors." OppFi cautions that the foregoing list of factors is not exclusive, and readers should not place undue reliance upon any forward-looking statements, which speak only as of the date made. OppFi does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures that are unaudited and do not conform to GAAP, such as Adjusted EBT, Adjusted Net Income, Adjusted EBITDA and Adjusted EPS. Adjusted EBT is defined as Net Income, plus (1) provision for income taxes; (2) amortization of debt issuance costs; (3) other addbacks and one-time expenses; and (4) sublease income. Adjusted Net Income is defined as Adjusted EBT as defined above, adjusted for taxes assuming a tax rate of 24.17% for the three months ended June 30, 2023 and a tax rate of 24.14% for the three months ended June 30, 2022, reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes, in order to allow for a comparison with other publicly traded companies. Adjusted EBITDA is defined as Adjusted Net Income as defined above, excluding (1) pro forma and business (non-income) taxes; (2) depreciation and amortization; and (3) interest expense. Adjusted EPS is defined as Adjusted Net Income as defined above, divided by weighted average diluted shares outstanding, which represent shares of both classes of common stock outstanding, excluding 25,500,000 shares related to earnout obligations and including the impact of unvested restricted stock units, unvested performance stock units, and the employee stock purchase plan. These non-GAAP financial measures have not been prepared in accordance with accounting principles generally accepted in the United States and may be different from non-GAAP financial measures used by other companies. OppFi believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. These non-GAAP measures with comparable names should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. See "Reconciliation of Non-GAAP Financial Measures" below for reconciliations for OppFi's non-GAAP financial measures to the most directly comparable GAAP financial measures. A reconciliation of projected full year 2023 Adjusted Net Income and projected full year 2023 Adjusted EPS to the most directly comparable GAAP financial measures is not included in this press release because, without unreasonable efforts, the Company is unable to predict with reasonable certainty the amount or timing of non-GAAP adjustments that are used to calculate these measures.

Second Quarter Results of Operations

Consolidated Statements of Operations

Comparison of the three months ended June 30, 2023 and 2022

The following table presents consolidated results of operations for the three months ended June 30, 2023 and 2022 (in thousands, except number of shares and per share data, unaudited).

	Three Months Ended June 30,						Change
		2023			2022		$			%
Interest and loan related income	$	121,583		$	107,873		$	13,710		12.7	%
Other revenue		903			2			901		45050.0	%
Total revenue		122,486			107,875			14,611		13.5	%
Change in fair value of finance receivables		(44,043	)		(42,154	)		(1,889	)	4.5	%
Provision for credit losses on finance receivables		(3,866	)		(569	)		(3,297	)	579.4	%
Net revenue		74,577			65,152			9,425		14.5	%
Expenses:
Sales and marketing		12,314			17,804			(5,490	)	(30.8	)%
Customer operations		10,445			10,850			(405	)	(3.7	)%
Technology, products, and analytics		9,779			8,294			1,485		17.9	%
General, administrative, and other		12,474			13,924			(1,450	)	(10.4	)%
Total expenses before interest expense		45,012			50,872			(5,860	)	(11.5	)%
Interest expense		11,231			7,878			3,353		42.6	%
Total expenses		56,243			58,750			(2,507	)	(4.3	)%
Income from operations		18,334			6,402			11,932		186.4	%
Change in fair value of warrant liability		351			3,297			(2,946	)	93.6	%
Other income		79			—			79		—	%
Income before income taxes		18,764			9,699			9,065		93.5	%
Income tax expense		688			202			486		240.6	%
Net income		18,076			9,497			8,579		90.3	%
Less: net income attributable to noncontrolling interest		15,934			6,039			9,895		163.9	%
Net income attributable to OppFi Inc.	$	2,142		$	3,458		$	(1,316	)	(38.1	)%

Earnings per share attributable to OppFi Inc.:
Earnings per common share:
Basic	$	0.14		$	0.26
Diluted	$	0.14		$	0.10
Weighted average common shares outstanding:
Basic		15,632,120			13,525,101
Diluted		15,873,753			84,283,102

Comparison of the six months ended June 30, 2023 and 2022

The following table presents consolidated results of operations for the six months ended June 30, 2023 and 2022 (in thousands, except number of shares and per share data, unaudited).

	Six Months Ended June 30,						Change
		2023			2022		$			%
Interest and loan related income	$	241,525		$	208,209		$	33,316		16.0	%
Other revenue		1,335			376			959		255.1	%
Total revenue		242,860			208,585			34,275		16.4	%
Change in fair value of finance receivables		(107,161	)		(91,679	)		(15,482	)	16.9	%
Provision for credit losses on finance receivables		(3,936	)		(1,026	)		(2,910	)	283.6	%
Net revenue		131,763			115,880			15,883		13.7	%
Expenses:
Sales and marketing		22,161			31,394			(9,233	)	(29.4	)%
Customer operations		20,706			20,881			(175	)	(0.8	)%
Technology, products, and analytics		19,733			16,523			3,210		19.4	%
General, administrative, and other		24,497			27,515			(3,018	)	(11.0	)%
Total expenses before interest expense		87,097			96,313			(9,216	)	(9.6	)%
Interest expense		22,602			15,326			7,276		47.5	%
Total expenses		109,699			111,639			(1,940	)	(1.7	)%
Income from operations		22,064			4,241			17,823		420.3	%
Change in fair value of warrant liability		504			5,701			(5,197	)	(91.2	)%
Other income		272			—			272		—	%
Income before income taxes		22,840			9,942			12,898		129.7	%
Provision for income taxes		834			742			92		12.4	%
Net income		22,006			9,200			12,806		139.2	%
Less: net income attributable to noncontrolling interest		19,613			4,666			14,947		320.3	%
Net income attributable to OppFi Inc.	$	2,393		$	4,534		$	(2,141	)	(47.2	)%

Earnings per share attributable to OppFi Inc.:
Earnings per common share:
Basic	$	0.16		$	0.33
Diluted	$	0.16		$	0.10
Weighted average common shares outstanding:
Basic		15,336,366			13,553,308
Diluted		15,533,467			84,377,754

Condensed Consolidated Balance Sheets

Comparison of the periods ended June 30, 2023 and December 31, 2022

	Unaudited
(in thousands)	June 30, 2023		December 31, 2022
Assets
Cash and restricted cash	$	62,108	$	49,670
Finance receivables at fair value		446,956		457,296
Finance receivables at amortized cost, net		325		643
Other assets		67,991		72,230
Total assets	$	577,380	$	579,839
Liabilities and stockholders' equity
Current liabilities	$	26,833	$	29,558
Other liabilities		40,289		42,183
Total debt		331,884		347,060
Warrant liabilities		1,384		1,888
Total liabilities		400,390		420,689
Total stockholders' equity		176,990		159,150
Total liabilities and stockholders' equity	$	577,380	$	579,839

Total cash and restricted cash increased by $12.4 million as of June 30, 2023 compared to December 31, 2022, driven by an increase in received payments relative to originated loans. Finance receivables at fair value decreased by $10.3 million as of June 30, 2023, compared to December 31, 2022 due to lower origination volume and strong repayment activity for the six months ended June 30, 2023. Finance receivables at amortized cost, net decreased by $0.3 million as of June 30, 2023 compared to December 31, 2022, due to the continued rundown of OppFi Card and SalaryTap finance receivables and an increase in the allowance for credit losses. Other assets decreased by $4.2 million as of June 30, 2023 compared to December 31, 2022, mainly driven by a decrease in property, equipment, and software of $2.1 million and amortized debt issuance costs of $0.8 million.

Current liabilities decreased by $2.7 million as of June 30, 2023, compared to December 31, 2022, mainly driven by a decrease in accounts payable of $2.3 million and accrued expenses of $0.4 million. Other liabilities decreased by $1.9 million as of June 30, 2023, compared to December 31, 2022 due to a decrease in the operating lease liability of $0.6 million and the tax receivable agreement liability of $1.3 million. Total debt decreased by $15.2 million as of June 30, 2023, compared to December 31, 2022, driven by a decrease in utilization of revolving lines of credit of $12.8 million and repayment of the secured borrowing payable of $0.8 million and notes payable of $1.6 million. Total equity increased by $17.8 million as of June 30, 2023, compared to December 31, 2022, driven by net income and stock-based compensation.

Financial Capacity and Capital Resources

As of June 30, 2023, OppFi had $26.8 million in unrestricted cash, an increase of $10.6 million from December 31, 2022. As of June 30, 2023, OppFi had an additional $142.4 million of unused debt capacity under its financing facilities for future availability, representing a 30% overall undrawn capacity, an increase from $136.8 million as of December 31, 2022. The increase in undrawn debt was due to using excess cash to pay down debt on the Company's revolving credit lines. Including total financing commitments of $475.0 million, and cash on the balance sheet of $62.1 million, OppFi had approximately $537.1 million in funding capacity as of June 30, 2023.

Reconciliation of Non-GAAP Financial Measures

Comparison of the three and six months ended June 30, 2023 and 2022

(in thousands, except share and per share data)	Three Months Ended June 30,						Variance
(Unaudited)		2023			2022		%
Net income	$	18,076		$	9,497		90.3	%
Provision for income taxes		688			202		240.6	%
Debt issuance cost amortization		514			435		18.2	%
Other addbacks and one-time expenses, net(a)		2,237			(1,145	)	(295.4	)%
Sublease income		(79	)		—		—	%
Adjusted EBT		21,436			8,989		138.5	%
Less: pro forma taxes(b)		(5,181	)		(2,170	)	138.8	%
Adjusted net income		16,255			6,819		138.4	%
Pro forma taxes(b)		5,181			2,170		138.8	%
Depreciation and amortization		3,317			3,366		(1.5	)%
Interest expense		10,717			7,442		44.0	%
Business (non-income) taxes		274			210		30.5	%
Adjusted EBITDA	$	35,744		$	20,007		78.7	%

Adjusted EPS	$	0.19		$	0.08
Weighted average diluted shares outstanding		84,750,663			84,283,102

(a) For the three months ended June 30, 2023, other addbacks and one-time expenses, net of $2.2 million included a $(0.4) million addback due to the change in fair value of the warrant liabilities, a $(3.1) million addback from the reclassification of OppFi Card finance receivables from assets held for sale to assets held for investment at amortized cost, a $3.8 million expense related to provision for credit losses on the OppFi Card finance receivables, $0.6 million in severance expenses, $0.1 million in retention expenses, $0.8 million in expenses related to stock compensation, and $0.4 million in professional fees related to corporate development. For the three months ended June 30, 2022, other addbacks and one-time expenses, net of $(1.1) million included a $(3.3) million addback due to the change in fair value of the warrant liabilities, $0.5 million in severance expenses, $0.1 million in retention expenses, $1.1 million in expenses related to stock compensation, and a $0.5 million one-time origination fee expense.
(b) Assumes a tax rate of 24.17% for the three months ended June 30, 2023 and 24.14% for the three months ended June 30, 2022, reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes.

(in thousands, except share and per share data)	Six Months Ended June 30,						Variance
(Unaudited)		2023			2022		%
Net income	$	22,006		$	9,200		139.2	%
Provision for income taxes		834			742		12.4	%
Debt issuance cost amortization		1,278			1,044		22.4	%
Other addbacks and one-time expenses, net(a)		3,324			(1,269	)	(361.9	)%
Sublease income		(159	)		—		—	%
Adjusted EBT		27,283			9,717		180.8	%
Less: pro forma taxes(b)		(6,592	)		(2,340	)	181.7	%
Adjusted net income		20,691			7,377		180.5	%
Pro forma taxes(b)		6,592			2,340		181.7	%
Depreciation and amortization		6,708			6,604		1.6	%
Interest expense		21,324			14,282		49.3	%
Business (non-income) taxes		546			589		(7.3	)%
Adjusted EBITDA	$	55,861		$	31,192		79.1	%

Adjusted EPS	$	0.24		$	0.09
Weighted average diluted shares outstanding		84,592,228			84,377,754

(a) For the six months ended June 30, 2023, other addbacks and one-time expenses, net of $3.3 million included a $(0.5) million addback due to the change in fair value of the warrant liabilities, a $(0.1) million addback due to partial forgiveness of the secured borrowing payable, a $(3.0) million addback from the reclassification of OppFi Card finance receivables from assets held for sale to assets held for investment at amortized cost, a $3.8 million expense related to provision for credit losses on the OppFi Card finance receivables, $0.6 million in severance expenses, $0.1 million in retention expenses, $2.0 million in expenses related to stock compensation, and $0.4 million in professional fees related to corporate development. For the six months ended June 30, 2022, other addbacks and one-time expenses, net of $(1.3) million included a $(5.7) million addback due to the change in fair value of the warrant liabilities, $2.0 million in severance expenses, $0.1 million in retention expenses, $1.6 million in expenses related to stock compensation, a $0.5 million one-time origination fee expense, and $0.2 million in one-time legal expenses.
(b) Assumes a tax rate of 24.16% for the six months ended June 30, 2023 and a 24.08% tax rate for the six months ended June 30, 2022, reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes.

Adjusted Earnings Per Share

	Three Months Ended June 30,
(Unaudited)	2023		2022
Weighted average Class A common stock outstanding	15,632,120		13,525,101
Weighted average Class V voting stock outstanding	94,376,910		96,114,373
Elimination of earnouts at period end	(25,500,000	)	(25,500,000	)
Dilutive impact of restricted stock units	238,008		125,383
Dilutive impact of performance stock units	3,625		18,245
Weighted average diluted shares outstanding	84,750,663		84,283,102

(in thousands, except share and per share data)	Three Months Ended June 30, 2023						Three Months Ended June 30, 2022
(Unaudited)	$			Per Share			$			Per Share
Weighted average diluted shares outstanding					84,750,663						84,283,102
Net income	$	18,076		$	0.21		$	9,497		$	0.11
Provision for income taxes		688			0.01			202			—
Debt amortization		514			0.01			435			0.01
Other addbacks and one-time expenses		2,237			0.03			(1,145	)		(0.01	)
Sublease income		(79	)		—			—			—
Adjusted EBT		21,436			0.25			8,989			0.11
Less: pro forma taxes		(5,181	)		(0.06	)		(2,170	)		(0.03	)
Adjusted net income		16,255			0.19			6,819			0.08

	Six Months Ended June 30,
(Unaudited)	2023		2022
Weighted average Class A common stock outstanding	15,336,366		13,553,308
Weighted average Class V voting stock outstanding	94,558,761		96,225,804
Elimination of earnouts at period end	(25,500,000	)	(25,500,000	)
Dilutive impact of restricted stock units	180,290		89,519
Dilutive impact of performance stock units	16,811		9,123
Weighted average diluted shares outstanding	84,592,228		84,377,754

(in thousands, except share and per share data)	Six Months Ended June 30, 2023						Six Months Ended June 30, 2022
(Unaudited)	$			Per Share			$			Per Share
Weighted average diluted shares outstanding					84,592,228						84,377,754
Net income	$	22,006		$	0.26		$	9,200		$	0.11
Provision for income taxes		834			0.01			742			0.01
Debt amortization		1,278			0.02			1,044			0.01
Other addbacks and one-time expenses		3,324			0.04			(1,269	)		(0.02	)
Sublease income		(159	)		—			—			—
Adjusted EBT		27,283			0.32			9,717			0.12
Less: pro forma taxes		(6,592	)		(0.08	)		(2,340	)		(0.03	)
Adjusted net income		20,691			0.24			7,377			0.09

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OppFi Reports Second Quarter 2023 Results, Raises Full-Year Earnings Outlook