The significant guidance reduction and deteriorating credit quality (charge-offs at 39.5% of revenue) are the dominant signals, outweighing the modest revenue growth. The new $100M debt at 12.5% interest is expensive and signals constrained access to cheaper capital. Monitor the BNCC acquisition closing timeline and Q3 charge-off trends for further deterioration.
Price Chart
Executive Summary
OppFi reported Q2 2026 results with record second-quarter total revenue of $145.2M (+1.9% YoY), but adjusted EPS of $0.33 missed consensus of $0.45 by 25.8%. The company significantly lowered its full-year 2026 guidance: revenue cut to $600-625M (from $650-675M), adjusted net income to $115-130M (from $153-160M), and adjusted EPS to $1.34-1.51 (from $1.76-1.84). Credit quality deteriorated sharply with net charge-offs rising to 39.5% of revenue (from 31.9% YoY). The company also entered a $100M senior secured term loan facility at 12.5% interest to fund receivables growth, while actively repurchasing shares under a $40M authorization. The combination of a significant guidance cut, worsening credit trends, and expensive new debt outweighs the modest revenue growth and share repurchases.
Key Financial Metrics
Key Facts
- Total revenue of $145.2M, a record for any second quarter, up 1.9% YoY
- Adjusted EPS of $0.33 missed consensus of $0.45 by 25.8%
- Full-year 2026 guidance significantly lowered: revenue to $600-625M (from $650-675M), adjusted net income to $115-130M (from $153-160M), adjusted EPS to $1.34-1.51 (from $1.76-1.84)
- Net charge-off rate surged to 39.5% of revenue from 31.9% YoY, a 760 bps increase
- Net income of $15.6M (+36% YoY) but income from operations fell 45.6% to $24.4M
- Entered a $100M senior secured multi-draw term loan at 12.5% interest (13.5% post-BNCC acquisition) with 1.25% OID
- Repurchased $11.2M of stock YTD at avg $9.46/share under $40M authorization
- Free cash flow of $104.3M in 1H 2026, up 63.5% YoY
Financial Impact
Full-year guidance cut by ~$50M in revenue and ~$30M in adjusted net income; new $100M debt facility at 12.5% interest adds ~$12.5M annual interest cost if fully drawn
Risk Factors
- Further credit deterioration if charge-offs continue to rise above 40% of revenue
- BNCC acquisition may not close or face regulatory hurdles, leaving OppFi with expensive debt and no strategic transformation
- High-cost debt at 12.5% interest could compress margins further if originations don't grow
- California regulatory risk (AB 539) could impact bank partner lending and financing sources
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001818502-26-000073 |
| Document: oppfi-reportsxsecondxqua.htm | 0001818502-26-000073 |
| Document: opfi-20260810.htm | 0001818502-26-000073 |
| Document: 0001818502-26-000073-index-headers.html | 0001818502-26-000073 |
| Document: 0001818502-26-000073-index.html | 0001818502-26-000073 |
| Document: 0001818502-26-000073.txt | 0001818502-26-000073 |
| 8-K Data (Synthetic) | 0001818502-26-000073 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 19, 2026 7d ago | Press Release | $5.63 | awaiting T+20 | — | $5.47 (−2.84%) |
Sep 11, 2026 6w ago | Insider Buy | $7.78 $5.82 | ▼ −25.19% | ▼ −27.46% | $5.47 (−29.69%) |
Sep 10, 2026 6w ago | Insider Buy | $7.98 $5.93 | ▼ −25.69% | ▼ −27.56% | $5.47 (−31.45%) |
Sep 9, 2026 6w ago | Insider Buy | $7.59 $6.09 | ▼ −19.76% | ▼ −21.89% | $5.47 (−27.93%) |
Sep 8, 2026 6w ago | Insider Buy | $7.53 $6.06 | ▼ −19.52% | ▼ −21.47% | $5.47 (−27.36%) |
Sep 4, 2026 7w ago | Insider Buy | $7.40 $6.18 | ▼ −16.49% | ▼ −18.20% | $5.47 (−26.08%) |
Sep 3, 2026 7w ago | Insider Cluster | $7.42 $6.04 | ▼ −18.60% | ▼ −19.20% | $5.47 (−26.28%) |
Sep 2, 2026 7w ago | Insider Cluster | $7.32 $5.97 | ▼ −18.44% | ▼ −17.99% | $5.47 (−25.27%) |
Sep 1, 2026 7w ago | Insider Cluster | $7.24 $5.95 | ▼ −17.82% | ▼ −17.66% | $5.47 (−24.45%) |
Aug 31, 2026 8w ago | Insider Cluster | $6.86 $6.03 | ▼ −12.10% | ▼ −12.21% | $5.47 (−20.26%) |
US Market Status
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