Alternative lending platform OppFi has reported impressive financial results for the fourth quarter of 2024, signaling robust growth and strategic improvements in its operational approach. The company's financial performance exceeded analyst expectations, with total revenue reaching $135.7 million, representing a 2.1% year-over-year increase and surpassing consensus estimates.
The company's net income showed remarkable improvement, growing 619.7% year-over-year to approximately $14.0 million. Adjusted net income reached $20.3 million, a substantial 140.3% increase from the previous year. These results highlight OppFi's successful implementation of strategic initiatives focused on operational efficiency and sophisticated credit risk management.
Key performance indicators demonstrate the company's strengthening market position. Total net originations increased 11% year-over-year to $214.0 million, driven by expanded bank partnerships and enhanced lead evaluation capabilities. The auto-approval rate increased to 79%, up from 73% in the same quarter last year, reflecting improvements in algorithmic underwriting processes.
OppFi's credit management strategies have also yielded positive results. Charge-offs as a percentage of total revenue declined to 42% in the fourth quarter, compared to 46% in the prior year. This improvement stems from a healthier portfolio composition and advanced credit modeling techniques, specifically the implementation of Model 6.
The company's financial flexibility remains strong, with $88.3 million in cash and restricted cash, representing a $14.3 million increase from the previous year. Additionally, OppFi maintains $206.2 million in unused debt capacity, providing significant strategic flexibility for future growth initiatives.
Looking forward, OppFi has provided optimistic guidance for 2025. The company projects full-year revenue between $563.0 million and $594.0 million, representing a 7% to 13% year-over-year increase. Adjusted net income is expected to range from $95.0 million to $97.0 million, reflecting a 15% to 17% annual growth.
These projections suggest OppFi is well-positioned to capitalize on continued market demand for its financial products. The company's disciplined approach to cost management and strategic focus on high-quality borrowers indicate potential for sustained growth and improved financial performance in the coming year.
