Business Context and Reporting Period
Company: OppFi Inc. (OPFI)
Filing Type: Form 10-K (Annual Report)
Reporting Period: Fiscal year ended December 31, 2025
Business Overview: OppFi is a tech-enabled specialty finance platform that partners with community banks to extend credit to underserved consumers. The company operates an "Up-C" structure where OppFi Inc. owns approximately 31.7% of OppFi-LLC, which holds substantially all assets. The primary product is the OppLoans platform, offering simple interest installment loans with an average size of $1,950 and an 11-month term. As of December 31, 2025, the company had facilitated over $8.6 billion in gross loan issuance since inception.
Key Financial Metrics
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Total Revenue | $597.1 million | $526.0 million | +13.5% |
| Net Income | $146.2 million | $83.8 million | +74.4% |
| Net Income Attributable to OppFi Inc. | $26.3 million | $7.3 million | +262.8% |
| Diluted EPS (GAAP) | $0.99 | $0.36 | +175.0% |
| Adjusted Net Income (Non-GAAP) | $139.8 million | $82.7 million | +69.1% |
| Adjusted EPS (Non-GAAP) | $1.59 | $0.95 | +67.4% |
| Total Net Originations | $899.3 million | $801.5 million | +12.2% |
| Ending Receivables | $493.1 million | $425.2 million | +16.0% |
| Total Debt | $321.4 million | $318.8 million | +0.8% |
| Cash and Restricted Cash | $93.3 million | $88.3 million | +5.6% |
| Net Charge-Offs (% of Avg Receivables) | 49.4% | 51.4% | -4.0 bps |
Material Changes vs. Prior Period
- Revenue Growth: Driven by higher average receivables balances and an increase in average yield to 133.5% (from 131.4%) due to pricing initiatives.
- Profitability: Net income increased significantly due to higher operating income ($166.7 million vs. $94.5 million) and lower expenses ($214.5 million vs. $226.9 million). Expense reduction was driven by lower interest expense and reduced technology amortization.
- Operational Efficiency: Auto-approval rate increased to 79.2% from 76.5%, reflecting continued automation.
- Debt Structure: The company paid off its term loan in March 2025. Total debt remained relatively flat as revolving lines of credit were utilized to fund receivables growth.
- Investment Income: Income from the equity method investment in Bitty Holdings, LLC increased to $5.0 million from $1.4 million.
Guidance, Outlook, Risks, and Unusual Items
Management Commentary and Outlook
Management expects to continue leveraging organic growth and strategic investments. The company is developing a next-generation loan origination platform ("LOLA") expected to enhance funnel performance and operational efficiency, with full implementation planned for the second half of 2026. The company also rolled out a Model 6.1 refit in Q4 2025 to improve risk identification.
Key Risks and Contingencies
- Regulatory Litigation (California): In February 2026, a California court issued a tentative decision granting OppFi's summary judgment motion against the Department of Financial Protection and Innovation (DFPI), dismissing claims that OppFi was the "true lender" subject to California's 36% interest rate cap. The DFPI retains the right to appeal. More than 7% of the finance receivables portfolio is related to loans originated in California.
- Regulatory Environment: The company faces ongoing scrutiny regarding the "true lender" doctrine, usury laws, and the applicability of the Small-Dollar Loan Rule. The "One Big Beautiful Bill Act" (OBBBA) was enacted in July 2025; management states it did not have a material impact on 2025 financial statements but will monitor future guidance.
- Internal Controls: The company previously identified a material weakness in internal controls over financial reporting related to IT general controls, which has been remediated. The company is no longer a "smaller reporting company" and is subject to expanded reporting requirements.
- Concentration Risk: The company relies on three primary bank partners (FinWise, First Electronic Bank, and Capital Community Bank) for 100% of net originations. Capital Community Bank accounted for 42.3% of net originations in 2025.
Unusual Items
- Legal Contingency: Other expense, net included a $4.5 million legal contingency (net of expected insurance recoveries) in 2025.
- Warrant Liability: A loss of $11.3 million was recorded due to the change in fair value of warrant liabilities, driven by increases in the share price of Class A common stock.
Investor Verification Checklist
- Regulatory Appeal Status: Monitor the status of the DFPI appeal regarding the California "true lender" ruling and its potential impact on the 7% of the portfolio in that state.
- Bank Partner Concentration: Verify the stability of relationships with the three primary bank partners, particularly Capital Community Bank, which originated over 40% of loans.
- Credit Performance: Review the sustainability of the 49.4% net charge-off rate relative to average receivables and the effectiveness of the new Model 6.1 risk model in a potential economic downturn.
- Debt Covenants: Assess compliance with financial covenants in the warehouse credit facilities, which are secured by participation rights and subject to borrowing base limitations.
- Tax Receivable Agreement (TRA): Evaluate the impact of future payments under the TRA, where the company must pay 90% of tax savings to members, on future cash flows and liquidity.