The following is a summary of the Oportun Financial Corporation (OPRT) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Oportun reported a quarterly revenue of $250 million, slightly down by 7% due to a decline in average daily principal balance.

• Adjusted EBITDA reached $31 million, doubling from the previous year and surpassing guidance.

• Adjusted net income reached $1 million, with adjusted EPS at $0.02, showing improvement due to a reduced cost structure.

• The net charge-off rate improved to 11.9%, better than the guided range.

Business Progress:

• Successfully reduced operating expenses to $102 million, down 17% year-over-year, with expectations to reduce further to $97.5 million in Q4.

• Originations stabilized at $480 million, indicating readiness for future growth despite recent conservative underwriting and smaller average loan size.

• Closed the sale of the credit card portfolio, advancing its profitability and balance sheet strategy.

• Secured a new $235 million term loan facility to enhance financial flexibility and operational maneuverability.

Opportunities:

• Projected return to growth in loan originations, improved leveraging from new credit models, and easing macroeconomic headwinds are expected to boost profitability in 2025.

• The closure of significant refinancing deals will enable better capital management and debt reduction.

Risks:

• Future growth remains contingent on maintaining strict underwriting standards and market conditions.

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