A record second-quarter revenue figure couldn't help OppFi (OPFI -24.86%) escape a heavy, post-earnings sell-off on Tuesday. Investors reacted strongly and negatively to the company's latest quarterly release, sending the company's shares down by nearly 25% in value that trading session.
Net profit slide
OppFi, which focuses on providing personal credit to underserved clients, earned revenue of nearly $145.2 million during the quarter, up nearly 2% year over year.
Image source: Getty Images.
However, that wasn't the trajectory for net income not under generally accepted accounting principles (non-GAAP, or adjusted); this fell to $28.8 million ($0.33 per share) from the year-ago profit of $39.4 million.
The company missed badly on the consensus analyst estimates. Pundits tracking OppFi stock were modeling a much higher revenue line of $156.5 million and a meatier adjusted net profit of $0.46 per share.
OppFi is in transition, attempting to shift into something of a next-generation national bank with the pending acquisition of Bnccorp, the holding company of Arizona-based lender BNC National Bank. A surge in acquisition-related fees was a key reason for the bottom-line slide. It was also negatively affected by changes in the fair value of its loan portfolio.
NYSE: OPFI
Key Data Points
Banking on a change
Compounding that, OppFi also lowered its full-year 2026 guidance. The company now expects to post revenue of $600 million to $625 million for the year, down from its previous range of $650 million to $675 million. The new adjusted net income forecast is $115 million to $130 million ($1.34 to $1.51 per share); the preceding estimate was $153 million to $160 million.
The current analyst consensus for revenue is $657 million, while that for adjusted profitability is $1.79 per share.
It feels like OppFi is going all-in on this transformation plan, given its commitment to the Bnccorp deal and how much it's already spent to make it happen. Whether the company can become a successful, more-or-less traditional lender remains to be seen, though. I'd hold off on buying shares until we get some indication it can do this.
