Total revenue increased 7% year over year to $133.2 million for third quarter of 2023

Net income of $15.5 million for third quarter of 2023

Adjusted net income of $13.8 million for third quarter of 2023

Basic and Diluted EPS of $0.13 and $0.13, respectively, for third quarter of 2023

Adjusted EPS of $0.16 for third quarter of 2023

Net charge-off rate as a percentage of total revenue decreased 23% year over year to 42% for third quarter of 2023

Yield increased 7% year over year to 129% for third quarter of 2023

OppFi Inc. (NYSE:OPFI, OPFI WS))) ("OppFi" or the "Company"), a tech-enabled, mission-driven specialty finance platform that broadens the reach of community banks to extend credit access to everyday Americans, today reported financial results for the third quarter ended September 30, 2023.

"Throughout this year we have continued to make impactful adjustments to credit models with our bank partners that have resulted in improved credit performance and accelerated earnings growth," said Todd Schwartz, Chief Executive Officer and Executive Chairman of OppFi. "These results demonstrate our ability to balance growth and risk, while maintaining expense discipline. These core competencies combined with our strong balance sheet and excess funding capacity give us confidence in our ability to continue these positive trends next year, as we explore additional ways to create shareholder value."

"We are raising full-year adjusted net income and adjusted earnings per share guidance for the third time this year, based on third quarter results and greater confidence in current business trends," concluded Schwartz.

Financial Summary

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

(in thousands, except per share data) Unaudited	Three Months Ended September 30,					Change
	2023		2022			%
Total revenue	$	133,165	$	124,244		7.2	%
Net income (loss)	$	15,532	$	(661	)	2449.8	%
Adjusted net income⁽¹⁾	$	13,776	$	768		1693.8	%
Adjusted EBITDA⁽¹⁾	$	33,011	$	13,215		149.8	%
Basic EPS	$	0.13	$	(0.04	)	425.0	%
Diluted EPS	$	0.13	$	(0.04	)	425.0	%
Adjusted EPS⁽¹⁾	$	0.16	$	0.01		1668.4	%

(in thousands, except per share data) Unaudited	Nine Months Ended September 30,				Change
	2023		2022		%
Total revenue	$	376,025	$	332,829	13.0	%
Net income	$	37,538	$	8,539	339.6	%
Adjusted net income⁽¹⁾	$	34,466	$	7,793	342.3	%
Adjusted EBITDA⁽¹⁾	$	88,871	$	43,943	102.2	%
Basic EPS	$	0.29	$	0.29	—	%
Diluted EPS	$	0.29	$	0.09	222.2	%
Adjusted EPS⁽¹⁾	$	0.41	$	0.09	339.4	%

⁽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.

Third Quarter Key Performance Metrics

The following tables represent key quarterly metrics. Beginning with the quarter ended June 30, 2023, for all periods presented, the Company 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,
	September 30, 2023			June 30, 2023			September 30, 2022
Total Net Originations^(a)	$	195,671		$	200,640		$	181,821
Ending Receivables^(b)	$	415,933		$	397,754		$	402,571
% of Originations by Bank Partners		98	%		97	%		94	%
Net Charge-Offs as % of Total Revenue^(c)		42	%		36	%		55	%
Net Charge-Offs as % of Average Receivables^(c)		55	%		47	%		66	%
Auto-Approval Rate^(d)		72	%		72	%		68	%

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
- $40 million to $42 million, from previous range of $29 million to $35 million; and
Increase adjusted earnings per share
- $0.47 to $0.49 based on approximate weighted average diluted share count of 85.5 million, from previous range of $0.34 to $0.41, 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) 300-8521
International: (412) 317-6026

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

About OppFi

OppFi (NYSE:OPFI, OPFI WS))) is a tech-enabled, mission-driven specialty finance platform that broadens the reach of community banks to extend credit access to everyday Americans. Through transparency, responsible lending, financial inclusion, and an excellent customer experience, 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 4,000 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 September 30, 2023, a tax rate of 24.14% for the three months ended September 30, 2022, a tax rate of 24.17% for the nine months ended September 30, 2023, and a tax rate of 24.09% for the nine months ended September 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.

Third Quarter Results of Operations

Consolidated Statements of Operations

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

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

	Three Months Ended September 30,						Change
	2023			2022			$			%
Interest and loan related income	$	132,090		$	123,605		$	8,485		6.9	%
Other revenue		1,075			639			436		68.2	%
Total revenue		133,165			124,244			8,921		7.2	%
Change in fair value of finance receivables		(57,302	)		(70,601	)		13,299		(18.8	)%
Provision for credit losses on finance receivables		(195	)		(1,017	)		822		(80.8	)%
Net revenue		75,668			52,626			23,042		43.8	%
Expenses:
Sales and marketing		12,814			11,674			1,140		9.8	%
Customer operations		10,543			10,591			(48	)	(0.5	)%
Technology, products, and analytics		9,732			8,325			1,407		16.9	%
General, administrative, and other		14,921			13,910			1,011		7.3	%
Total expenses before interest expense		48,010			44,500			3,510		7.9	%
Interest expense		12,077			9,095			2,982		32.8	%
Total expenses		60,087			53,595			6,492		12.1	%
Income (loss) from operations		15,581			(969	)		16,550		1707.9	%
Change in fair value of warrant liability		334			1,323			(989	)	(74.8	)%
Other income		80			—			80		—	%
Income before income taxes		15,995			354			15,641		4418.4	%
Income tax expense		463			1,015			(552	)	(54.4	)%
Net income (loss)		15,532			(661	)		16,193		2449.8	%
Less: net income (loss) attributable to noncontrolling interest		13,363			(90	)		13,453		14947.8	%
Net income (loss) attributable to OppFi Inc.	$	2,169		$	(571	)	$	2,740		479.9	%

Earnings (loss) per share attributable to OppFi Inc.:
Earnings (loss) per common share:
Basic	$	0.13		$	(0.04	)
Diluted	$	0.13		$	(0.04	)
Weighted average common shares outstanding:
Basic		16,772,275			13,972,971
Diluted		17,057,778			13,972,971

Comparison of the nine months ended September 30, 2023 and 2022

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

	Nine Months Ended September 30,						Change
	2023			2022			$			%
Interest and loan related income	$	373,615		$	331,814		$	41,801		12.6	%
Other revenue		2,410			1,015			1,395		137.4	%
Total revenue		376,025			332,829			43,196		13.0	%
Change in fair value of finance receivables		(164,463	)		(162,280	)		(2,183	)	1.3	%
Provision for credit losses on finance receivables		(4,131	)		(2,043	)		(2,088	)	102.2	%
Net revenue		207,431			168,506			38,925		23.1	%
Expenses:
Sales and marketing		34,975			43,067			(8,092	)	(18.8	)%
Customer operations		31,249			31,933			(684	)	(2.1	)%
Technology, products, and analytics		29,465			24,848			4,617		18.6	%
General, administrative, and other		39,418			40,965			(1,547	)	(3.8	)%
Total expenses before interest expense		135,107			140,813			(5,706	)	(4.1	)%
Interest expense		34,679			24,421			10,258		42.0	%
Total expenses		169,786			165,234			4,552		2.8	%
Income from operations		37,645			3,272			34,373		1050.5	%
Change in fair value of warrant liability		838			7,024			(6,186	)	(88.1	)%
Other income		352			—			352		—	%
Income before income taxes		38,835			10,296			28,539		277.2	%
Provision for income taxes		1,297			1,757			(460	)	(26.2	)%
Net income		37,538			8,539			28,999		339.6	%
Less: net income attributable to noncontrolling interest		32,976			4,576			28,400		620.6	%
Net income attributable to OppFi Inc.	$	4,562		$	3,963		$	599		15.1	%

Earnings per share attributable to OppFi Inc.:
Earnings per common share:
Basic	$	0.29		$	0.29
Diluted	$	0.29		$	0.09
Weighted average common shares outstanding:
Basic		15,820,262			13,694,733
Diluted		16,046,831			84,277,277

Condensed Consolidated Balance Sheets

Comparison as of September 30, 2023 and December 31, 2022

	Unaudited
(in thousands)	September 30, 2023		December 31, 2022
Assets
Cash and restricted cash	$	66,027	$	49,670
Finance receivables at fair value		466,465		457,296
Finance receivables at amortized cost, net		209		643
Other assets		67,891		72,230
Total assets	$	600,592	$	579,839
Liabilities and stockholders' equity
Current liabilities	$	25,472	$	29,558
Other liabilities		39,892		42,183
Total debt		344,345		347,060
Warrant liabilities		1,050		1,888
Total liabilities		410,759		420,689
Total stockholders' equity		189,833		159,150
Total liabilities and stockholders' equity	$	600,592	$	579,839

Total cash and restricted cash increased by $16.4 million as of September 30, 2023, compared to December 31, 2022, driven by an increase in received payments relative to originated loans. Finance receivables at fair value increased by $9.2 million as of September 30, 2023, compared to December 31, 2022, driven by recent strength in issuance volume and charge-offs. Finance receivables at amortized cost, net decreased by $0.4 million as of September 30, 2023 compared to December 31, 2022, due to the continued rundown of OppFi Card and SalaryTap finance receivables and increase in the allowance for credit losses. Other assets decreased by $4.3 million as of September 30, 2023 compared to December 31, 2022, mainly driven by a decrease in property, equipment, and software of $2.9 million.

Current liabilities decreased by $4.1 million as of September 30, 2023, compared to December 31, 2022, mainly driven by a decrease in accounts payable of $2.8 million and accrued expenses of $1.3 million. Other liabilities decreased by $2.3 million as of September 30, 2023, compared to December 31, 2022, due to a decrease in the operating lease liability of $1.1 million and the tax receivable agreement liability of $1.3 million. Total debt decreased by $2.7 million as of September 30, 2023, compared to December 31, 2022, primarily driven by a decrease in utilization of revolving lines of credit of $2.5 million. Total equity increased by $30.7 million as of September 30, 2023, compared to December 31, 2022, driven by net income and stock-based compensation.

Financial Capacity and Capital Resources

As of September 30, 2023, OppFi had $31.1 million in unrestricted cash, an increase of $14.9 million from December 31, 2022. As of September 30, 2023, OppFi had an additional $180.7 million of unused debt capacity under its financing facilities for future availability, representing a 34% overall undrawn capacity, an increase from $136.8 million as of December 31, 2022. The increase in undrawn debt was driven primarily by the increase in capacity of the revolving credit agreement with affiliates of Atalaya Capital Management in July 2023. Including total financing commitments of $525.0 million, and cash on the balance sheet of $66.0 million, OppFi had approximately $591.0 million in funding capacity as of September 30, 2023.

Reconciliation of Non-GAAP Financial Measures

Comparison of the three and nine months ended September 30, 2023 and 2022

(in thousands, except share and per share data)	Three Months Ended September 30,						Variance
(Unaudited)	2023			2022			%
Net income (loss)	$	15,532		$	(661	)	2449.8	%
Provision for income taxes		463			1,015		(54.4	)%
Debt issuance cost amortization		594			582		2.1	%
Other addbacks and one-time expenses, net(a)		1,658			76		2081.6	%
Sublease income		(80	)		—		—	%
Adjusted EBT		18,167			1,012		1695.2	%
Less: pro forma taxes(b)		(4,391	)		(244	)	1699.6	%
Adjusted net income		13,776			768		1693.8	%
Pro forma taxes(b)		4,391			244		1699.6	%
Depreciation and amortization		3,119			3,452		(9.6	)%
Interest expense		11,483			8,513		34.9	%
Business (non-income) taxes		242			238		1.7	%
Adjusted EBITDA	$	33,011		$	13,215		149.8	%

Adjusted EPS	$	0.16		$	0.01
Weighted average diluted shares outstanding		85,288,105			84,080,808

(a) For the three months ended September 30, 2023, other addbacks and one-time expenses, net of $1.7 million included a $(0.3) million addback due to the change in fair value of the warrant liabilities, $0.1 million in retention and severance expenses, $1.1 million in expenses related to stock compensation, a $0.2 million expense related to provision for credit losses on the OppFi Card finance receivables, and $0.6 million in professional fees related to corporate development. For the three months ended September 30, 2022, other addbacks and one-time expenses, net of $0.1 million included a $(1.3) million addback due to the change in fair value of the warrant liabilities, $0.6 million in recruiting, retention and severance expenses, and $0.8 million in expenses related to stock compensation.
(b) Assumes a tax rate of 24.17% for the three months ended September 30, 2023 and 24.14% for the three months ended September 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)	Nine Months Ended September 30,						Variance
(Unaudited)	2023			2022			%
Net income	$	37,538		$	8,539		339.6	%
Provision for income taxes		1,297			1,757		(26.2	)%
Debt issuance cost amortization		1,872			1,626		15.1	%
Other addbacks and one-time expenses, net(a)		4,981			(1,656	)	400.8	%
Sublease income		(239	)		—		—	%
Adjusted EBT		45,449			10,266		342.7	%
Less: pro forma taxes(b)		(10,983	)		(2,473	)	344.1	%
Adjusted net income		34,466			7,793		342.3	%
Pro forma taxes(b)		10,983			2,473		344.1	%
Depreciation and amortization		9,827			10,056		(2.3	)%
Interest expense		32,807			22,795		43.9	%
Business (non-income) taxes		788			826		(4.6	)%
Adjusted EBITDA	$	88,871		$	43,943		102.2	%

Adjusted EPS	$	0.41		$	0.09
Weighted average diluted shares outstanding		84,826,413			84,277,277

(a) For the nine months ended September 30, 2023, other addbacks and one-time expenses, net of $5.0 million included a $(0.8) 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 $4.0 million expense related to provision for credit losses on the OppFi Card finance receivables, $0.9 million in retention and severance expenses, $3.1 million in expenses related to stock compensation, and $1.0 million in professional fees related to corporate development. For the nine months ended September 30, 2022, other addbacks and one-time expenses, net of $(1.7) million included a $(7.0) million addback due to the change in fair value of the warrant liabilities, $2.9 million in recruiting, retention, and severance expenses, $2.4 million in expenses related to stock compensation, and $0.1 million in one-time legal expenses.
(b) Assumes a tax rate of 24.17% for the nine months ended September 30, 2023 and a 24.09% tax rate for the nine months ended September 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 September 30,
(Unaudited)	2023		2022
Weighted average Class A common stock outstanding	16,772,275		13,972,971
Weighted average Class V voting stock outstanding	93,730,327		95,397,996
Elimination of earnouts at period end	(25,500,000	)	(25,500,000	)
Dilutive impact of restricted stock units	235,514		192,127
Dilutive impact of performance stock units	49,989		17,714
Weighted average diluted shares outstanding	85,288,105		84,080,808

(in thousands, except share and per share data)	Three Months Ended September 30, 2023						Three Months Ended September 30, 2022
(Unaudited)	$			Per Share			$			Per Share
Weighted average diluted shares outstanding					85,288,105						84,080,808
Net income (loss)	$	15,532		$	0.18		$	(661	)	$	(0.01	)
Provision for income taxes		463			0.01			1,015			0.01
Debt amortization		594			0.01			582			0.01
Other addbacks and one-time expenses		1,658			0.02			76			—
Sublease income		(80	)		—			—			—
Adjusted EBT		18,167			0.21			1,012			0.01
Less: pro forma taxes		(4,391	)		(0.05	)		(244	)		—
Adjusted net income		13,776			0.16			768			0.01

	Nine Months Ended September 30,
(Unaudited)	2023		2022
Weighted average Class A common stock outstanding	15,820,262		13,694,733
Weighted average Class V voting stock outstanding	94,279,582		95,946,836
Elimination of earnouts at period end	(25,500,000	)	(25,500,000	)
Dilutive impact of restricted stock units	198,698		123,722
Dilutive impact of performance stock units	27,871		11,986
Weighted average diluted shares outstanding	84,826,413		84,277,277

(in thousands, except share and per share data)	Nine Months Ended September 30, 2023						Nine Months Ended September 30, 2022
(Unaudited)	$			Per Share			$			Per Share
Weighted average diluted shares outstanding					84,826,413						84,277,277
Net income	$	37,538		$	0.44		$	8,539		$	0.10
Provision for income taxes		1,297			0.02			1,757			0.02
Debt amortization		1,872			0.02			1,626			0.02
Other addbacks and one-time expenses		4,981			0.06			(1,656	)		(0.02	)
Sublease income		(239	)		—			—			—
Adjusted EBT		45,449			0.54			10,266			0.12
Less: pro forma taxes		(10,983	)		(0.13	)		(2,473	)		(0.03	)
Adjusted net income		34,466			0.41			7,793			0.09

View source version on businesswire.com: https://www.businesswire.com/news/home/20231109921413/en/

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