Oportun Financial Corp (OPRT) Reports 7% YoY Revenue Growth in Q3 2023
Oportun Financial Corp (NASDAQ:OPRT) reported a 7% year-over-year (YoY) increase in revenue to $268 million for Q3 2023.
Operating expenses decreased significantly, reaching the lowest in two years at $123 million.
The company reported a net loss of $21 million, an improvement from the $106 million loss in Q3 2022.
Two new personal loan financing agreements totaling up to $267 million were executed.
On November 6, 2023, Oportun Financial Corp (NASDAQ:OPRT) released its financial results for the third quarter ended September 30, 2023. The company reported a 7% YoY increase in revenue, reaching a record $268 million, despite a 24% decline in originations. The company's operating expenses also declined significantly, reaching the lowest in two years at $123 million.
Financial Highlights
Oportun Financial Corp (NASDAQ:OPRT) reported a net loss of $21 million, an improvement from the $106 million loss reported in Q3 2022. The diluted earnings per share (EPS) stood at $(0.55), compared to $(3.21) in the same period last year. The company's Adjusted EBITDA was $16 million, up from a $6.2 million loss in Q3 2022.
Operational Highlights
The company's membership grew by 13% YoY to 2.1 million, and products increased by 14% YoY to 2.3 million. However, aggregate originations were down by 24% compared to the prior-year quarter, standing at $483 million. The company's managed principal balance at the end of the period was $3.23 billion, a 4% decrease YoY.
Future Outlook
Oportun Financial Corp (NASDAQ:OPRT) is taking decisive actions to enhance shareholder returns, including further cost reductions intended to achieve $105 million in quarterly run rate expenses by the end of 2024. The company is also streamlining its product suite and exploring strategic options relating to its credit card portfolio. Backed by two new personal loan financing agreements totaling up to $267 million, the company is well-positioned for profitable, sustainable growth.
Conclusion
Despite the challenges posed by a decline in originations, Oportun Financial Corp (NASDAQ:OPRT) managed to achieve record revenue and significantly reduce operating expenses in Q3 2023. The company's strategic initiatives aimed at enhancing shareholder returns and streamlining its product suite are expected to drive future growth.
Explore the complete 8-K earnings release (here) from Oportun Financial Corp for further details.
This article first appeared on GuruFocus.
