OppFi Inc. reported third-quarter revenue of $155.1 million, representing a 13.5% year-over-year increase and setting a new quarterly record for the company. The financial technology platform achieved adjusted net income of $40.7 million and adjusted earnings per share of $0.46, both exceeding analyst expectations and marking substantial improvements over the prior-year period. These results reflect the company's continued operational discipline and scaling benefits in the competitive lending marketplace.
The company's performance exceeded both Stonegate Capital Partners and consensus estimates across key metrics. Revenue surpassed the consensus estimate of $153.4 million, while adjusted net income of $40.7 million significantly outperformed the $28.9 million consensus expectation. The net revenue margin expanded to 67.4%, representing a 70 basis point improvement from the third quarter of 2024, indicating enhanced operational efficiency and pricing power in the company's lending operations.
OppFi's lending activity showed strong momentum with total net originations increasing 12.5% year-over-year to $246.1 million. This growth was driven by stronger consumer demand and credit-model upgrades that enabled larger average loan sizes. The company's auto-approval rate improved to 79%, up from 77% in the prior-year period, reflecting ongoing enhancements to the company's Model 6 platform that facilitates better risk assessment and automation in the lending process.
Credit quality remained relatively stable despite some softening in the quarter. The net charge-off rate increased to 35.1% of total revenue, approximately 100 basis points higher than the previous year but significantly improved from the 42% rate recorded in the fourth quarter of 2024. The company attributed these charge-offs to continued use of risk-based pricing and is implementing the Model 6.1 refit, which is rolling out in the fourth quarter and will be fully implemented in the first quarter of 2026 to tighten underwriting for higher-risk segments.
Financial strength remained robust with OppFi ending the quarter with $75.2 million in cash and restricted cash, including $45.4 million in unrestricted cash. The company maintains total funding capacity of $600.2 million, including $204.2 million in undrawn debt. Year-to-date free cash flow generation of $66.1 million enabled continued investment in growth initiatives, a $21.7 million special dividend payment in the third quarter, and $7.4 million in share repurchases during the same period.
Based on the strong quarterly performance and continued business momentum, OppFi raised its full-year 2025 guidance. The company now expects revenue between $590 million and $605 million, increasing the low end from the previous $578 million to $605 million range. Adjusted net income guidance was raised to $137 million to $142 million from $125 million to $130 million, while adjusted earnings per share guidance increased to $1.54 to $1.60 from $1.39 to $1.44. These upward revisions reflect management's confidence in the company's ability to sustain growth while maintaining operational discipline in the evolving fintech lending landscape.
