Oportun Financial Corporation reported fourth‑quarter 2025 results that marked a return to GAAP profitability, with GAAP net income of $3.4 million and adjusted net income of $13 million. Adjusted earnings per share rose to $1.36, an 89% increase from the $0.72 reported in 2024, while total revenue for the quarter reached $248 million, up slightly from the consensus estimate of $241.42‑$243.48 million. Net revenue fell 3% to $90 million, driven by a $16 million increase in negative fair‑value marks related to the Pathward portfolio acquisition, and operating expenses were trimmed to $84 million, a 6% decline year‑over‑year.
The $248 million in total revenue represented a 1% decline from the $251 million reported in Q4 2024, largely attributable to the absence of $3.8 million in credit‑card revenue after the sale of that portfolio to Continental Finance in November 2024. Net revenue’s 3% drop was offset by a $4.9 million favorable mark‑to‑market adjustment on the loan portfolio, but the negative fair‑value marks still weighed on the bottom line. Operating expenses fell to $84 million, the lowest quarterly spend for the company as a public entity, reflecting disciplined cost management.
Full‑year 2025 results showed revenue of $957 million, a $45 million decrease from the $1,002 million reported in 2024, while net revenue rose 37% to $406 million. Aggregate originations increased 10% to $2.0 billion, driven by a 51% expansion in secured personal loan originations. Adjusted net income for the year reached $65 million, and adjusted EPS was $1.36. Management raised the full‑year 2026 adjusted EPS guidance to $1.50–$1.65, reflecting confidence in sustaining profitability amid macroeconomic headwinds.
"Our fourth quarter results were strong. We met or exceeded all of our guidance metrics, reflecting continued operational discipline and strong execution across the business," said CEO Raul Vazquez. Vazquez added, "This capped a year of significantly enhanced profitability for Oportun with full year GAAP net income improving by $104 million and adjusted EPS growing 89%." CFO Paul Appleton noted, "On the expense side, Q4 operating expenses of $84 million came in below the $92 million expectation set last quarter and marked our lowest quarterly spend as a public company."
The company’s strategic focus on its three core products—unsecured personal loans, secured personal loans, and the Set & Save savings product—has been reinforced by the credit‑card portfolio sale. The divestiture, completed in November 2024, has simplified the product mix and freed capital for core lending activities. The raised guidance signals management’s belief that disciplined underwriting, cost control, and a growing secured‑loan portfolio will continue to drive earnings growth in 2026.
Investors noted the narrow EPS miss of $0.01 against a consensus of $0.28, which tempered enthusiasm for the earnings beat. Nonetheless, the company’s return to profitability, the upward revision of 2026 guidance, and the continued expansion of secured personal loans suggest a positive trajectory for Oportun’s core lending business.
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