{"success":true,"data":{"pressRelease":{"id":"26675","rtpr_id":"nGNX5l04G6","ticker":"OPRT","exchange":"NASDAQ","all_tickers":["OPRT"],"title":"Oportun Reports First Quarter 2026 Results; Extends GAAP Profitability Streak","author":"Globe Newswire","published_at":"2026-05-07T20:05:15.171Z","article_body":"Achieves all first quarter guidance metrics\n\nDelivers sixth consecutive quarter of GAAP profitability\n\nStrengthens balance sheet and liquidity position\n\nReiterates full-year 2026 guidance\n\n \n\nSAN MATEO, Calif., May 07, 2026 (GLOBE NEWSWIRE) -- Oportun Financial\nCorporation (Nasdaq: OPRT) (“Oportun”, or the \"Company\") today reported\nfinancial results for the first quarter ended March 31, 2026.\n\n“Having joined Oportun last month, I’m encouraged by the team’s\ndisciplined execution in the first quarter,” said Doug Bland, CEO of\nOportun. “The business has made meaningful progress strengthening its\nfoundation, including continued GAAP profitability, lower funding costs and\nimproved liquidity. At the same time, it is clear there is more work ahead to\nimprove through-cycle credit performance and rebuild durable, profitable\ngrowth. Based on my review to date, we are reiterating our full year 2026\nguidance.”\n\nAdded Paul Appleton, Oportun's Interim Chief Financial Officer: “We expect\nto ramp originations from first quarter levels through the remainder of the\nyear while maintaining credit discipline and reducing our loss rates. We are\nalso advancing our risk-based pricing initiative, which we expect to launch in\nthe second half of the year, expanding access to customers we are not able to\nserve today. I am pleased that our full year 2026 Adjusted EPS guidance of\n$1.50 to $1.65 continues to reflect 16% year-over-year growth at the\nmidpoint.”\n\nFirst Quarter 2026 Results\n\n Metric GAAP Adjusted (1) \n 1Q26 1Q25 1Q26 1Q25 \n Total revenue $229 $236 \n Net income $2.3 $10 $10 $19 \n Diluted EPS $0.05 $0.21 $0.21 $0.40 \n Adjusted EBITDA $29 $34 \n Dollars in millions, except per share amounts. \n (1)See the section entitled “About Non-GAAP Financial Measures” for an explanation of non-GAAP measures, and the table entitled “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of non-GAAP to GAAP measures. \n\nFinancial and Operating Results\n\n \n\nAll figures are as of or for the quarter ended March 31, 2026, unless\notherwise noted.\n\nOperational Drivers\n\nOriginations – In line with expectations under a tight credit posture,\nAggregate Originations for the first quarter were $417 million, a decrease of\n11% compared to $469 million in the prior-year quarter. Management continues\nto expect to grow originations in the mid-single-digits range over the course\nof full year 2026.\n\nOwned Principal Balance - Owned Principal Balance at the end of the first\nquarter was $2.6 billion, compared to $2.7 billion in the prior-year quarter.\n\nPortfolio Yield - Portfolio Yield for the first quarter was 32.1%, compared to\n33.0% in the prior-year quarter. This decrease was driven by reduced\noriginations and therefore lower origination fees, as we continued to operate\nunder a conservative credit posture.\n\nNet Interest Margin Ratio - Net Interest Margin Ratio for the first quarter\nwas relatively flat at 26.9%, compared to 26.8% in the prior-year quarter.\nCost of Debt decreased by 91 basis points due to prepayments of our Corporate\nTerm Loan and other balance sheet optimization initiatives. This was partially\noffset by a 2.1% interest income decline due to reduced Portfolio Yield.\n\nRisk Adjusted Net Interest Margin Ratio - Risk Adjusted Net Interest Margin\nRatio, which includes Portfolio Yield, cost of funds, Net Charge-Offs, and\nloan-related fair value adjustments decreased year-over-year by 271 basis\npoints to 14.4%. This was due to a lower Portfolio Yield and a higher\nAnnualized Net Charge-Off rate along with the absence of a $12 million\nfavorable mark-to-market adjustment on the Company's loan portfolio reflected\nin the prior year period, partially offset by improvement in Cost of Debt.\n\nFinancial Results\n\nRevenue – Total revenue for the first quarter was $229 million, a decrease\nof 3% as compared to $236 million in the prior-year quarter. The decline was\nprimarily due to lower interest income driven by lower origination fees. Net\nrevenue for the first quarter was $95 million, a 10% decrease compared to net\nrevenue of $106 million in the prior-year quarter, as increased fair value\nmarks, and the total revenue decline were only partially offset by a reduction\nin interest expense driven by prior-period prepayments of our Corporate Term\nLoan and other balance sheet optimization initiatives.\n\nOperating Expense and Adjusted Operating Expense – Total operating expense\nwas $91 million, a decrease of 1% as compared to $93 million in the prior-year\nquarter. The Company continues to expect full year 2026 GAAP operating\nexpenses to be substantially flat in comparison to 2025's $362 million.\nAdjusted Operating Expense, which excludes stock-based compensation expense\nand certain non-recurring charges, decreased 4% year-over-year to $85 million\nprimarily due to a decrease in direct mail marketing expense under a tight\ncredit posture and reduced costs relating to the development of the Company's\ninternal software.\n\nNet Income and Adjusted Net Income – Net income was $2.3 million as compared\nto $10 million in the prior-year quarter. The decreased profitability was\nattributable to higher fair value marks and lower total revenue, partially\noffset by lower interest expense. Adjusted Net Income was $10 million compared\nto $19 million in the prior-year quarter, with the decline driven by similar\nfactors.\n\nEarnings Per Share and Adjusted EPS – GAAP earnings per share, basic and\ndiluted, were $0.05 during the first quarter, compared to GAAP net income per\nshare, basic and diluted of $0.21 in the prior-year quarter. Adjusted Earnings\nPer Share was $0.21 as compared to $0.40 in the prior-year quarter.\n\nAdjusted EBITDA – Adjusted EBITDA was $29 million, down from $34 million in\nthe prior-year quarter, attributable to lower interest income as lower total\nrevenue and higher net charge-offs more than offset lower interest expense and\nAdjusted Operating Expense.\n\nCredit and Operating Metrics\n\nNet Charge-Off Rate – Annualized Net Charge-Off Rate for the quarter was\n12.7%, compared to 12.2% for the prior-year quarter. Net Charge-offs in\ndollars for the quarter were up 4% to $85 million, compared to $81 million for\nthe prior-year quarter.\n\n30+ Day Delinquency Rate – The Company's 30+ Day Delinquency Rate was 4.5%\nat the end of the quarter, compared to 4.7% at the end of the prior-year\nquarter.\n\nOperating Expense Ratio and Adjusted Operating Expense Ratio – Operating\nExpense Ratio for the quarter was 13.6% as compared to 13.9% in the prior-year\nquarter, a 28 basis point improvement. Adjusted Operating Expense Ratio was\n12.7% as compared to 13.3% in the prior-year quarter, a 63 basis point\nimprovement. The Adjusted Operating Expense Ratio excludes stock-based\ncompensation expense and certain non-recurring charges. The reduction in the\nCompany's Adjusted Operating Expense Ratio is attributable to its focus on\nreducing operating expenses.\n\nReturn On Equity (\"ROE\") and Adjusted ROE – ROE for the quarter was 2%, as\ncompared to 11% in the prior-year quarter. The decline was attributable to\nthe decrease in net income. Adjusted ROE for the quarter was 11%, as compared\nto 21% in the prior-year quarter, with the decline attributable to the\ndecrease in Adjusted Net Income.\n\n \n\nSecured Personal Loans\n\nAs of March 31, 2026, the Company had a secured personal loan receivables\nbalance of $233 million, or 9% of owned principal balance, up from $178\nmillion, or 7% of owned principal balance at the end of the first quarter of\n2025. Oportun currently offers secured personal loans in California, Texas,\nFlorida, Arizona, New Jersey, Illinois, Nevada and Utah. During the first\nquarter, secured personal loans losses were substantially lower than for\nunsecured personal loans. Furthermore, secured personal loans are expected to\ngenerate approximately twice the revenue per loan compared to unsecured\npersonal loans, primarily due to higher average loan sizes.\n\nFunding and Liquidity\n\nAs of March 31, 2026, total cash was $210 million, consisting of cash and cash\nequivalents of $130 million and restricted cash of $79 million. Cost of Debt\nand Debt-to-Equity were 7.0% and 6.8x, respectively, for and at the end of the\nfirst quarter 2026 as compared to 8.2% and 7.6x, respectively, for and at the\nend of the prior-year quarter. As of March 31, 2026, the Company had $922\nmillion of undrawn capacity on its existing $1,139 million personal loan\nwarehouse lines. The Company's personal loan warehouse lines as of March 31,\n2026 were committed through 2028 and up to 2029.\n\nFinancial Outlook for Second Quarter and Full Year 2026\n\n \n\nOportun is providing the following guidance for 2Q 2026 and full year 2026:\n\n 2Q 2026 Full Year 2026 \n Total Revenue $227 - $232M $935 - $955M \n Annualized Net Charge-Off Rate 12.2% +/- 15 bps 11.9% +/- 50 bps \n Adjusted EBITDA (1) $34 - $39M $150 - $165M \n Adjusted Net Income (1) $74 - $82M \n Adjusted EPS (1) $1.50 - $1.65 \n\n\n\n \n (1)See the section entitled “About Non-GAAP Financial Measures” for an explanation of non-GAAP measures, and the table entitled “Reconciliation of Forward Looking Non-GAAP Financial Measures” for a reconciliation of non-GAAP to GAAP measures. \n\nConference Call\n\n \n\nAs previously announced, Oportun’s management will host a conference call to\ndiscuss first quarter 2026 results at 5:00 p.m. ET (2:00 p.m. PT) today. A\nlive webcast of the call will be accessible from the Investor Relations page\nof Oportun's website at https://investor.oportun.com. The dial-in number for\nthe conference call is 1-866-604-1698 (toll-free) or 1-201-389-0844\n(international). Participants should call in 10 minutes prior to the scheduled\nstart time. Both the call and webcast are open to the general public. For\nthose unable to listen to the live broadcast, a webcast replay of the call\nwill be available at https://investor.oportun.com for one year. A file that\nincludes supplemental financial information and reconciliations of certain\nnon-GAAP measures to their most directly comparable GAAP measures, will be\navailable on the Investor Relations page of Oportun's website at\nhttps://investor.oportun.com following the conference call.\n\nAbout Non-GAAP Financial Measures\n\n \n\nThis press release presents information about the Company’s Adjusted Net\nIncome (Loss), Adjusted EPS, Adjusted EBITDA, Adjusted Operating Expense,\nAdjusted Operating Expense Ratio, Adjusted ROE, Risk Adjusted Net Interest\nMargin, and Risk Adjusted Net Interest Margin Ratio, all of which are non-GAAP\nfinancial measures provided as a supplement to the results provided in\naccordance with accounting principles generally accepted in the United States\nof America (“GAAP”). The Company believes these non-GAAP measures can be\nuseful measures for period-to-period comparisons of its core business and\nprovide useful information to investors and others in understanding and\nevaluating its operating results. Non-GAAP financial measures are provided in\naddition to, and not as a substitute for, and are not superior to, financial\nmeasures calculated in accordance with GAAP. In addition, the non-GAAP\nmeasures the Company uses, as presented, may not be comparable to similar\nmeasures used by other companies. Reconciliations of non-GAAP to GAAP measures\ncan be found below.\n\nAbout Oportun\n\n \n\nOportun (Nasdaq: OPRT) is a mission-driven financial services company that\nputs its members' financial goals within reach. With intelligent borrowing,\nsavings, and budgeting capabilities, Oportun empowers members with the\nconfidence to build a better financial future. Since inception, Oportun has\nprovided more than $22.2 billion in responsible and affordable credit, saved\nits members more than $2.5 billion in interest and fees, and helped its\nmembers set aside an average of more than $1,800 annually. For more\ninformation, visit Oportun.com.\n\nForward-Looking Statements\n\n \n\nThis press release contains forward-looking statements. These forward-looking\nstatements are subject to the safe harbor provisions under the Private\nSecurities Litigation Reform Act of 1995, Section 27A of the Securities Act of\n1933, as amended and Section 21E of the Securities Exchange Act of 1934, as\namended. All statements other than statements of historical fact contained in\nthis press release, including statements as to future performance, results of\noperations and financial position; achievement of the Company's strategic\npriorities and goals; the Company's expectations regarding macroeconomic\nconditions; the Company's profitability and future growth opportunities\nincluding expected revenue growth in connection with increasing originations;\nthe effect of and trends in fair value mark-to-market adjustments on the\nCompany's loan portfolio and asset-backed notes; the Company's second quarter\nand full year 2026 outlook; the Company’s expectations regarding Adjusted\nEPS in full year 2026; the Company's expectations related to future\nprofitability on an adjusted basis, and the plans and objectives of management\nfor our future operations, are forward-looking statements. These statements\ncan be generally identified by terms such as “expect,” “plan,”\n“goal,” “target,” “anticipate,” “assume,” “predict,”\n“project,” “outlook,” “continue,” “due,” “may,”\n“believe,” “seek,” or “estimate” and similar expressions or the\nnegative versions of these words or comparable words, as well as future or\nconditional verbs such as “will,” “should,” “would,” “likely”\nand “could.” These forward-looking statements speak only as of the date on\nwhich they are made and, except to the extent required by federal securities\nlaws, Oportun disclaims any obligation to update any forward-looking statement\nto reflect events or circumstances after the date on which the statement is\nmade or to reflect the occurrence of unanticipated events. In light of these\nrisks and uncertainties, there is no assurance that the events or results\nsuggested by the forward-looking statements will in fact occur, and you should\nnot place undue reliance on these forward-looking statements. These statements\ninvolve known and unknown risks, uncertainties, assumptions and other factors\nthat may cause Oportun’s actual results, performance or achievements to be\nmaterially different from any future results, performance or achievements\nexpressed or implied by the forward-looking statements. Oportun has based\nthese forward-looking statements on its current expectations and projections\nabout future events, financial trends and risks and uncertainties that it\nbelieves may affect its business, financial condition and results of\noperations. These risks and uncertainties include those risks described in\nOportun's filings with the Securities and Exchange Commission, including\nOportun's most recent annual report on Form 10-K, and include, but are not\nlimited to, Oportun's ability to retain existing members and attract new\nmembers; Oportun's ability to accurately predict demand for, and develop its\nfinancial products and services; the effectiveness of Oportun's A.I. model;\nmacroeconomic conditions, including fluctuating inflation and market interest\nrates; increases in loan non-payments, delinquencies and charge-offs;\nOportun's ability to increase market share and enter into new markets;\nOportun's ability to realize the benefits from acquisitions and integrate\nacquired technologies; the risk of security breaches or incidents affecting\nthe Company's information technology systems or those of the Company's\nthird-party vendors or service providers; Oportun’s ability to successfully\noffer loans in additional states; Oportun’s ability to compete successfully\nwith other companies that are currently in, or may in the future enter, its\nindustry; and changes in Oportun's ability to obtain additional financing on\nacceptable terms or at all.\n\nContacts\n\n \n\nInvestor Contact\nDorian Hare\n(650) 590-4323\nir@oportun.com\n\nMedia Contact\nMichael Azzano\nCosmo PR for Oportun\n(415) 596-1978\nmichael@cosmo-pr.com\n\nOportun and the Oportun logo are registered trademarks of Oportun, Inc.\n\n Oportun Financial Corporation CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except share and per share data, unaudited) \n \n\n\n\n Three Months Ended March 31, \n 2026 2025 \n Revenue \n Interest income $ 215.7 $ 220.2 \n Non-interest income 13.1 15.7 \n Total revenue 228.8 235.9 \n Less: \n Interest expense 48.0 57.4 \n Net decrease in fair value (85.9 ) (72.7 ) \n Net revenue 94.9 105.8 \n \n Operating expenses: \n Technology and facilities 34.1 36.4 \n Sales and marketing 15.9 19.9 \n Personnel 25.5 21.0 \n Outsourcing and professional fees 8.7 8.0 \n General, administrative and other 7.0 7.4 \n Total operating expenses 91.3 92.7 \n \n Income before taxes 3.6 13.2 \n Income tax expense 1.2 3.4 \n Net income $ 2.3 $ 9.8 \n \n Diluted Earnings per Common Share $ 0.05 $ 0.21 \n Diluted Weighted Average Common Shares 48,498,763 47,037,799 \n\nNote: Numbers may not foot or cross-foot due to rounding.\n\n Oportun Financial Corporation CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, unaudited) \n \n\n\n\n March 31, December 31, \n 2026 2025 \n Assets \n Cash and cash equivalents $ 130.4 $ 105.5 \n Restricted cash 79.5 93.4 \n Loans receivable at fair value 2,771.8 2,874.1 \n Capitalized software and other intangibles 69.4 71.7 \n Right of use assets - operating 10.5 9.4 \n Other assets 106.0 103.7 \n Total assets $ 3,167.5 $ 3,257.9 \n \n Liabilities and stockholders' equity \n Liabilities \n Secured financing $ 212.5 $ 199.4 \n Asset-backed notes at fair value 194.3 263.8 \n Asset-backed borrowings at amortized cost 2,154.4 2,192.6 \n Acquisition and corporate financing 145.1 143.7 \n Lease liabilities 11.4 11.5 \n Other liabilities 53.6 56.8 \n Total liabilities 2,771.3 2,867.8 \n Stockholders' equity \n Common stock — — \n Common stock, additional paid-in capital 627.5 623.7 \n Accumulated deficit (224.9 ) (227.3 ) \n Treasury stock (6.3 ) (6.3 ) \n Total stockholders’ equity 396.3 390.1 \n Total liabilities and stockholders' equity $ 3,167.5 $ 3,257.9 \n\nNote: Numbers may not foot or cross-foot due to rounding.\n\n\n\n Oportun Financial Corporation CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions, unaudited) \n \n\n\n\n Three Months Ended March 31, \n 2026 2025 \n Cash flows from operating activities \n Net income $ 2.3 $ 9.8 \n Adjustments for non-cash items 104.9 83.2 \n Proceeds from sale of loans in excess of originations of loans sold and held for sale 1.4 3.0 \n Changes in balances of operating assets and liabilities (4.9 ) 4.9 \n Net cash provided by operating activities 103.7 101.0 \n \n Cash flows from investing activities \n Net loan principal repayments (loan originations) 14.6 (49.7 ) \n Capitalization of system development costs (6.5 ) (5.6 ) \n Other, net (0.2 ) (0.2 ) \n Net cash provided by (used in) investing activities 8.0 (55.5 ) \n \n Cash flows from financing activities \n Borrowings 558.9 745.4 \n Repayments (659.3 ) (774.0 ) \n Net stock-based activities (0.5 ) (0.5 ) \n Net cash used in financing activities (100.8 ) (29.1 ) \n \n Net increase in cash and cash equivalents and restricted cash 10.9 16.3 \n Cash and cash equivalents and restricted cash beginning of period 198.9 214.6 \n Cash and cash equivalents and restricted cash end of period $ 209.9 $ 231.0 \n\nNote: Numbers may not foot or cross-foot due to rounding.\n\n Oportun Financial Corporation CONSOLIDATED KEY PERFORMANCE METRICS (unaudited) \n \n\n\n\n Three Months Ended March 31, \n Key Financial and Operating Metrics 2026 2025 \n Aggregate Originations (Millions) $ 416.9 $ 469.4 \n Portfolio Yield (%) 32.1 % 33.0 % \n 30+ Day Delinquency Rate (%) 4.5 % 4.7 % \n Annualized Net Charge-Off Rate (%) 12.7 % 12.2 % \n \n Other Metrics \n Managed Principal Balance at End of Period (Millions) $ 2,804.3 $ 2,955.0 \n Owned Principal Balance at End of Period (Millions) $ 2,640.6 $ 2,659.4 \n Average Daily Principal Balance (Millions) $ 2,721.6 $ 2,705.2 \n Average Daily Debt Balance (Millions) $ 2,764.1 $ 2,839.1 \n Annualized interest expense (Millions) $ 194.6 $ 232.8 \n Cost of Debt (%) 7.0 % 8.2 % \n Customer Acquisition Cost ((2)) $ 134 $ 139 \n\nNote: Numbers may not foot or cross-foot due to rounding.\n\n Oportun Financial Corporation ABOUT NON-GAAP FINANCIAL MEASURES (unaudited) \n \n\nThis press release dated May 7, 2026 contains non-GAAP financial measures.\nThe following tables reconcile the non-GAAP financial measures in this press\nrelease to the most directly comparable financial measures prepared in\naccordance with GAAP.\n\nThe Company believes that the provision of these non-GAAP financial measures\ncan provide useful measures for period-to-period comparisons of Oportun's core\nbusiness and useful information to investors and others in understanding and\nevaluating its operating results. However, non-GAAP financial measures are not\ncalculated in accordance with GAAP and should not be considered as a\nsubstitute for, or superior to, measures of financial performance prepared in\naccordance with GAAP. These non-GAAP financial measures do not reflect a\ncomprehensive system of accounting, differ from GAAP measures with the same\nnames, and may differ from non-GAAP financial measures with the same or\nsimilar names that are used by other companies.\n\nAdjusted EBITDA\n\nThe Company defines Adjusted EBITDA as net income, adjusted to eliminate the\neffect of certain items as described below. The Company believes that Adjusted\nEBITDA is an important measure because it allows management, investors and its\nboard of directors to evaluate and compare operating results, including return\non capital and operating efficiencies, from period to period by making the\nadjustments described below. In addition, it provides a useful measure for\nperiod-to-period comparisons of Oportun's business, as it removes the effect\nof income taxes, certain non-cash items, variable charges and timing\ndifferences.\n* The Company believes it is useful to exclude the impact of income tax\nexpense, as reported, because historically it has included irregular income\ntax items that do not reflect ongoing business operations.\n* The Company believes it is useful to exclude depreciation and amortization\nand stock-based compensation expense because they are non-cash charges.\n* The Company believes it is useful to exclude the impact of interest expense\nassociated with the Company's corporate financing facilities, including the\nsenior secured term loan and the residual financing facility, as it views this\nexpense as related to its capital structure rather than its funding.\n* The Company excludes the impact of certain non-recurring charges and other\nnon-recurring charges because it does not believe that these items reflect\nongoing business operations. Other non-recurring charges include litigation\nreserve, impairment charges, workforce optimization expenses, shareholder\nactivism costs, debt amendment and warrant amortization costs related to our\ncorporate financing facilities.\n* The Company also excludes fair value mark-to-market adjustments on its loans\nreceivable portfolio and asset-backed notes carried at fair value because\nthese adjustments do not impact cash.\nAdjusted Net Income\n\nThe Company defines Adjusted Net Income as net income adjusted to eliminate\nthe effect of certain items as described below. The Company believes that\nAdjusted Net Income is an important measure of operating performance because\nit allows management, investors, and the Company's board of directors to\nevaluate and compare its operating results, including return on capital and\noperating efficiencies, from period to period, excluding the after-tax impact\nof non-cash, stock-based compensation expense and certain non-recurring\ncharges.\n* The Company believes it is useful to exclude the impact of income tax\nexpense (benefit), as reported, because historically it has included irregular\nincome tax items that do not reflect ongoing business operations. The Company\nalso includes the impact of normalized income tax expense by applying a\nnormalized statutory tax rate.\n* The Company believes it is useful to exclude the impact of certain\nnon-recurring charges and other non-recurring charges because it does not\nbelieve that these items reflect its ongoing business operations. Other\nnon-recurring charges include litigation reserve, impairment charges,\nworkforce optimization expenses, shareholder activism costs, debt amendment\nand warrant amortization costs related to our corporate financing facilities.\n* The Company believes it is useful to exclude stock-based compensation\nexpense because it is a non-cash charge.\n* The Company also excludes the fair value mark-to-market adjustment on its\nasset-backed notes carried at fair value to align with the 2023 accounting\npolicy decision to account for new debt financings at amortized cost.\nRisk Adjusted Net Interest Margin and Risk Adjusted Net Interest Margin Ratio\n\nThe Company defines Risk Adjusted Net Interest Margin as total interest and\nnon-interest income, less interest expense, credit losses and the impact of\nloan-related fair value adjustments. The Company defines Risk Adjusted Net\nInterest Margin Ratio as annualized Risk Adjusted Net Interest Margin divided\nby Average Daily Principal Balance. Average Daily Principal Balance represents\nthe average loan balance outstanding over the reporting period. The Company\nbelieves Risk Adjusted Net Interest Margin and Risk Adjusted Net Interest\nMargin Ratio are important metrics because they reflect the net margin earned\non its loan portfolio after accounting for both the cost of borrowing and the\nimpact of credit performance, along with non-interest income. The Company\nbelieves that the Risk Adjusted Net Interest Margin measure provides\nmanagement, investors, and Oportun's board of directors with a more complete\nunderstanding of the net margin of the Company’s loan portfolio and\nnon-interest income on a risk-adjusted basis. The Company believes that the\nRisk Adjusted Net Interest Margin Ratio allows management, investors and\nOportun's board of directors to evaluate its efficiency relative to its\nAverage Daily Principal Balance.\n\nAdjusted Operating Expense and Adjusted Operating Expense Ratio\n\nThe Company defines Adjusted Operating Expense as total operating expenses\nadjusted to exclude stock-based compensation expense and certain non-recurring\ncharges, such as expenses associated with our workforce optimization, and\nother non-recurring charges. Other non-recurring charges include litigation\nreserve, impairment charges, workforce optimization expenses, shareholder\nactivism costs, and debt amendment costs related to our Corporate Financing\nfacility. The Company defines Adjusted Operating Expense Ratio as Adjusted\nOperating Expense divided by Average Daily Principal Balance. The Company\nbelieves Adjusted Operating Expense is an important measure because it allows\nmanagement, investors and Oportun's board of directors to evaluate and compare\nits operating costs from period to period, excluding the impact of non-cash,\nstock-based compensation expense and certain non-recurring charges. The\nCompany believes Adjusted Operating Expense Ratio is an important measure\nbecause it allows management, investors and Oportun's board of directors to\nevaluate how efficiently the Company is managing costs relative to revenue and\nAverage Daily Principal Balance.\n\nAdjusted Return on Equity\n\nThe Company defines Adjusted Return on Equity (“ROE”) as annualized\nAdjusted Net Income divided by average stockholders’ equity. Average\nstockholders’ equity is an average of the beginning and ending\nstockholders’ equity balance for each period. The Company believes Adjusted\nROE is an important measure because it allows management, investors and its\nboard of directors to evaluate the profitability of the business in relation\nto its stockholders' equity and how efficiently it generates income from\nstockholders' equity.\n\nAdjusted EPS\n\nThe Company defines Adjusted EPS as Adjusted Net Income divided by weighted\naverage diluted shares outstanding.\n\n Oportun Financial Corporation RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, unaudited) \n \n\n\n\n Three Months Ended March 31, \n Adjusted EBITDA 2026 2025 \n Net income $ 2.3 $ 9.8 \n Adjustments: \n Income tax expense 1.2 3.4 \n Interest on corporate financing 7.0 9.7 \n Depreciation and amortization 9.0 11.1 \n Stock-based compensation expense 3.0 2.8 \n Other non-recurring charges ((1)) 6.0 1.7 \n Fair value mark-to-market adjustment 0.8 (4.9 ) \n Adjusted EBITDA $ 29.4 $ 33.5 \n \n\n\n\n Three Months Ended March 31, \n Adjusted Net Income 2026 2025 \n Net income $ 2.3 $ 9.8 \n Adjustments: \n Income tax expense 1.2 3.4 \n Stock-based compensation expense 3.0 2.8 \n Other non-recurring charges ((1)) 6.0 1.7 \n Mark-to-market adjustment on ABS notes 1.4 7.9 \n Adjusted income before taxes 14.0 25.5 \n Normalized income tax expense 3.8 6.9 \n Adjusted Net Income $ 10.2 $ 18.6 \n \n Stockholders' equity $ 396.3 $ 366.1 \n GAAP ROE 2.4 % 11.0 % \n Adjusted ROE (%) ((2)) 10.5 % 21.0 % \n\n((1)) Certain prior-period financial information has been reclassified to\nconform to current period presentation.\n((2)) Calculated as Adjusted Net Income divided by average stockholders’\nequity.\n\nNote: Numbers may not foot or cross-foot due to rounding.\n\n Oportun Financial Corporation RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, unaudited) \n \n\n\n\n Three Months Ended March 31, \n Adjusted Operating Expense Ratio 2026 2025 \n OpEx Ratio 13.6 % 13.9 % \n \n Total Operating Expense $ 91.3 $ 92.7 \n Adjustments: \n Stock-based compensation expense (3.0 ) (2.8 ) \n Other non-recurring charges ((1)) (3.1 ) (0.9 ) \n Total Adjusted Operating Expense $ 85.2 $ 88.9 \n \n Average Daily Principal Balance $ 2,721.6 $ 2,705.2 \n \n Adjusted OpEx Ratio 12.7 % 13.3 % \n\n((1)) Certain prior-period financial information has been reclassified to\nconform to current period presentation.\n\n Three Months Ended March 31, \n 2026 2025 \n Risk Adjusted Net Interest Margin \n Total Revenue 228.8 235.9 \n Less: Interest Expense 48.0 57.4 \n Net Interest Margin $ 180.8 $ 178.5 \n \n Net Interest Margin Ratio 26.9 % 26.8 % \n \n Adjustments: \n Mark-to-market adjustment on loans (0.7 ) 12.4 \n Mark-to-market adjustment on derivatives 1.2 0.4 \n Net settlements on derivative instruments (0.2 ) 3.7 \n Net charge-offs (84.9 ) (81.3 ) \n Other non-recurring charges 0.6 0.7 \n Risk Adjusted Net Interest Margin $ 96.9 $ 114.5 \n \n Average Daily Principal Balance $ 2,721.6 $ 2,705.2 \n \n Risk Adjusted Net Interest Margin Ratio 14.4 % 17.2 % \n\nNote: Numbers may not foot or cross-foot due to rounding.\n\n Oportun Financial Corporation RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, except share and per share data, unaudited) \n \n\n\n\n Three Months Ended March 31, \n GAAP Earnings per Share 2026 2025 \n Net income $ 2.3 $ 9.8 \n Net income attributable to common stockholders $ 2.3 $ 9.8 \n \n Basic weighted-average common shares outstanding 47,436,155 45,496,705 \n Weighted average effect of dilutive securities: \n Stock options — — \n Restricted stock units 1,062,608 1,541,094 \n Diluted weighted-average common shares outstanding 48,498,763 47,037,799 \n \n Earnings per share: \n Basic $ 0.05 $ 0.21 \n Diluted $ 0.05 $ 0.21 \n\n\n\n Three Months Ended March 31, \n Adjusted Earnings Per Share 2026 2025 \n Diluted earnings per share $ 0.05 $ 0.21 \n \n Adjusted Net Income $ 10.2 $ 18.6 \n \n Basic weighted-average common shares outstanding 47,436,155 45,496,705 \n Weighted average effect of dilutive securities: \n Stock options — — \n Restricted stock units 1,062,608 1,541,094 \n Diluted adjusted weighted-average common shares outstanding 48,498,763 47,037,799 \n \n Adjusted Earnings Per Share $ 0.21 $ 0.40 \n\nNote: Numbers may not foot or cross-foot due to rounding.\n\n Oportun Financial Corporation RECONCILIATION OF FORWARD LOOKING NON-GAAP FINANCIAL MEASURES (in millions, unaudited) \n \n\n\n\n 2Q 2026 FY 2026 \n Low High Low High \n Adjusted EBITDA \n Net income $ 6.9 * $ 10.8 * $ 51.0 $ 59.2 \n Adjustments: \n Income tax expense (benefit) 2.1 3.2 15.3 17.8 \n Interest on corporate financing 6.2 6.2 23.0 23.0 \n Depreciation and amortization 8.8 8.8 35.2 35.2 \n Stock-based compensation expense 3.2 3.2 11.3 11.3 \n Other non-recurring charges 6.8 6.8 17.2 17.2 \n Fair value mark-to-market adjustment * * (2.9 ) 1.4 \n Adjusted EBITDA $ 34.0 $ 39.0 $ 150.0 $ 165.0 \n \n\n*Due to the uncertainty in macroeconomic conditions and quarterly volatility\nin the fair value mark to market adjustment, we are unable to precisely\nforecast the fair value mark-to-market adjustments on our loan portfolio and\nasset-backed notes on a quarterly basis. As a result, while we fully expect\nthere to be a fair value mark-to-market adjustment which could have an impact\non GAAP net income (loss), the net income (loss) information presented above\nassumes no change in the fair value mark-to-market adjustment.\n\n FY 2026 \n Adjusted Net Income and Adjusted EPS Low High \n Net income $ 51.0 $ 59.2 \n Adjustments: \n Income tax expense (benefit) 17.3 20.1 \n Stock-based compensation expense 11.3 11.3 \n Other non-recurring charges 17.2 17.2 \n Mark-to-market adjustment on ABS notes 4.5 4.5 \n Adjusted income before taxes $ 101.4 $ 112.3 \n Normalized income tax expense 27.4 30.3 \n Adjusted Net Income $ 74.0 $ 82.0 \n \n Diluted weighted-average common shares outstanding 49.5 49.5 \n \n Diluted earnings per share $ 1.03 $ 1.19 \n Adjusted Earnings Per Share $ 1.50 $ 1.65 \n\nNote: Numbers may not foot or cross-foot due to rounding.\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/ec656b1f-8df7-4ba5-8f8d-e9bae57c820b)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNX5l04G6","title":"Oportun Reports First Quarter 2026 Results; Extends GAAP Profitability Streak","author":"Globe Newswire","ticker":"OPRT","created":"2026-05-07T20:05:15.171Z","tickers":["OPRT"],"exchange":"NASDAQ","article_body":"Achieves all first quarter guidance metrics\n\nDelivers sixth consecutive quarter of GAAP profitability\n\nStrengthens balance sheet and liquidity position\n\nReiterates full-year 2026 guidance\n\n \n\nSAN MATEO, Calif., May 07, 2026 (GLOBE NEWSWIRE) -- Oportun Financial\nCorporation (Nasdaq: OPRT) (“Oportun”, or the \"Company\") today reported\nfinancial results for the first quarter ended March 31, 2026.\n\n“Having joined Oportun last month, I’m encouraged by the team’s\ndisciplined execution in the first quarter,” said Doug Bland, CEO of\nOportun. “The business has made meaningful progress strengthening its\nfoundation, including continued GAAP profitability, lower funding costs and\nimproved liquidity. At the same time, it is clear there is more work ahead to\nimprove through-cycle credit performance and rebuild durable, profitable\ngrowth. Based on my review to date, we are reiterating our full year 2026\nguidance.”\n\nAdded Paul Appleton, Oportun's Interim Chief Financial Officer: “We expect\nto ramp originations from first quarter levels through the remainder of the\nyear while maintaining credit discipline and reducing our loss rates. We are\nalso advancing our risk-based pricing initiative, which we expect to launch in\nthe second half of the year, expanding access to customers we are not able to\nserve today. I am pleased that our full year 2026 Adjusted EPS guidance of\n$1.50 to $1.65 continues to reflect 16% year-over-year growth at the\nmidpoint.”\n\nFirst Quarter 2026 Results\n\n Metric GAAP Adjusted (1) \n 1Q26 1Q25 1Q26 1Q25 \n Total revenue $229 $236 \n Net income $2.3 $10 $10 $19 \n Diluted EPS $0.05 $0.21 $0.21 $0.40 \n Adjusted EBITDA $29 $34 \n Dollars in millions, except per share amounts. \n (1)See the section entitled “About Non-GAAP Financial Measures” for an explanation of non-GAAP measures, and the table entitled “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of non-GAAP to GAAP measures. \n\nFinancial and Operating Results\n\n \n\nAll figures are as of or for the quarter ended March 31, 2026, unless\notherwise noted.\n\nOperational Drivers\n\nOriginations – In line with expectations under a tight credit posture,\nAggregate Originations for the first quarter were $417 million, a decrease of\n11% compared to $469 million in the prior-year quarter. Management continues\nto expect to grow originations in the mid-single-digits range over the course\nof full year 2026.\n\nOwned Principal Balance - Owned Principal Balance at the end of the first\nquarter was $2.6 billion, compared to $2.7 billion in the prior-year quarter.\n\nPortfolio Yield - Portfolio Yield for the first quarter was 32.1%, compared to\n33.0% in the prior-year quarter. This decrease was driven by reduced\noriginations and therefore lower origination fees, as we continued to operate\nunder a conservative credit posture.\n\nNet Interest Margin Ratio - Net Interest Margin Ratio for the first quarter\nwas relatively flat at 26.9%, compared to 26.8% in the prior-year quarter.\nCost of Debt decreased by 91 basis points due to prepayments of our Corporate\nTerm Loan and other balance sheet optimization initiatives. This was partially\noffset by a 2.1% interest income decline due to reduced Portfolio Yield.\n\nRisk Adjusted Net Interest Margin Ratio - Risk Adjusted Net Interest Margin\nRatio, which includes Portfolio Yield, cost of funds, Net Charge-Offs, and\nloan-related fair value adjustments decreased year-over-year by 271 basis\npoints to 14.4%. This was due to a lower Portfolio Yield and a higher\nAnnualized Net Charge-Off rate along with the absence of a $12 million\nfavorable mark-to-market adjustment on the Company's loan portfolio reflected\nin the prior year period, partially offset by improvement in Cost of Debt.\n\nFinancial Results\n\nRevenue – Total revenue for the first quarter was $229 million, a decrease\nof 3% as compared to $236 million in the prior-year quarter. The decline was\nprimarily due to lower interest income driven by lower origination fees. Net\nrevenue for the first quarter was $95 million, a 10% decrease compared to net\nrevenue of $106 million in the prior-year quarter, as increased fair value\nmarks, and the total revenue decline were only partially offset by a reduction\nin interest expense driven by prior-period prepayments of our Corporate Term\nLoan and other balance sheet optimization initiatives.\n\nOperating Expense and Adjusted Operating Expense – Total operating expense\nwas $91 million, a decrease of 1% as compared to $93 million in the prior-year\nquarter. The Company continues to expect full year 2026 GAAP operating\nexpenses to be substantially flat in comparison to 2025's $362 million.\nAdjusted Operating Expense, which excludes stock-based compensation expense\nand certain non-recurring charges, decreased 4% year-over-year to $85 million\nprimarily due to a decrease in direct mail marketing expense under a tight\ncredit posture and reduced costs relating to the development of the Company's\ninternal software.\n\nNet Income and Adjusted Net Income – Net income was $2.3 million as compared\nto $10 million in the prior-year quarter. The decreased profitability was\nattributable to higher fair value marks and lower total revenue, partially\noffset by lower interest expense. Adjusted Net Income was $10 million compared\nto $19 million in the prior-year quarter, with the decline driven by similar\nfactors.\n\nEarnings Per Share and Adjusted EPS – GAAP earnings per share, basic and\ndiluted, were $0.05 during the first quarter, compared to GAAP net income per\nshare, basic and diluted of $0.21 in the prior-year quarter. Adjusted Earnings\nPer Share was $0.21 as compared to $0.40 in the prior-year quarter.\n\nAdjusted EBITDA – Adjusted EBITDA was $29 million, down from $34 million in\nthe prior-year quarter, attributable to lower interest income as lower total\nrevenue and higher net charge-offs more than offset lower interest expense and\nAdjusted Operating Expense.\n\nCredit and Operating Metrics\n\nNet Charge-Off Rate – Annualized Net Charge-Off Rate for the quarter was\n12.7%, compared to 12.2% for the prior-year quarter. Net Charge-offs in\ndollars for the quarter were up 4% to $85 million, compared to $81 million for\nthe prior-year quarter.\n\n30+ Day Delinquency Rate – The Company's 30+ Day Delinquency Rate was 4.5%\nat the end of the quarter, compared to 4.7% at the end of the prior-year\nquarter.\n\nOperating Expense Ratio and Adjusted Operating Expense Ratio – Operating\nExpense Ratio for the quarter was 13.6% as compared to 13.9% in the prior-year\nquarter, a 28 basis point improvement. Adjusted Operating Expense Ratio was\n12.7% as compared to 13.3% in the prior-year quarter, a 63 basis point\nimprovement. The Adjusted Operating Expense Ratio excludes stock-based\ncompensation expense and certain non-recurring charges. The reduction in the\nCompany's Adjusted Operating Expense Ratio is attributable to its focus on\nreducing operating expenses.\n\nReturn On Equity (\"ROE\") and Adjusted ROE – ROE for the quarter was 2%, as\ncompared to 11% in the prior-year quarter. The decline was attributable to\nthe decrease in net income. Adjusted ROE for the quarter was 11%, as compared\nto 21% in the prior-year quarter, with the decline attributable to the\ndecrease in Adjusted Net Income.\n\n \n\nSecured Personal Loans\n\nAs of March 31, 2026, the Company had a secured personal loan receivables\nbalance of $233 million, or 9% of owned principal balance, up from $178\nmillion, or 7% of owned principal balance at the end of the first quarter of\n2025. Oportun currently offers secured personal loans in California, Texas,\nFlorida, Arizona, New Jersey, Illinois, Nevada and Utah. During the first\nquarter, secured personal loans losses were substantially lower than for\nunsecured personal loans. Furthermore, secured personal loans are expected to\ngenerate approximately twice the revenue per loan compared to unsecured\npersonal loans, primarily due to higher average loan sizes.\n\nFunding and Liquidity\n\nAs of March 31, 2026, total cash was $210 million, consisting of cash and cash\nequivalents of $130 million and restricted cash of $79 million. Cost of Debt\nand Debt-to-Equity were 7.0% and 6.8x, respectively, for and at the end of the\nfirst quarter 2026 as compared to 8.2% and 7.6x, respectively, for and at the\nend of the prior-year quarter. As of March 31, 2026, the Company had $922\nmillion of undrawn capacity on its existing $1,139 million personal loan\nwarehouse lines. The Company's personal loan warehouse lines as of March 31,\n2026 were committed through 2028 and up to 2029.\n\nFinancial Outlook for Second Quarter and Full Year 2026\n\n \n\nOportun is providing the following guidance for 2Q 2026 and full year 2026:\n\n 2Q 2026 Full Year 2026 \n Total Revenue $227 - $232M $935 - $955M \n Annualized Net Charge-Off Rate 12.2% +/- 15 bps 11.9% +/- 50 bps \n Adjusted EBITDA (1) $34 - $39M $150 - $165M \n Adjusted Net Income (1) $74 - $82M \n Adjusted EPS (1) $1.50 - $1.65 \n\n\n\n \n (1)See the section entitled “About Non-GAAP Financial Measures” for an explanation of non-GAAP measures, and the table entitled “Reconciliation of Forward Looking Non-GAAP Financial Measures” for a reconciliation of non-GAAP to GAAP measures. \n\nConference Call\n\n \n\nAs previously announced, Oportun’s management will host a conference call to\ndiscuss first quarter 2026 results at 5:00 p.m. ET (2:00 p.m. PT) today. A\nlive webcast of the call will be accessible from the Investor Relations page\nof Oportun's website at https://investor.oportun.com. The dial-in number for\nthe conference call is 1-866-604-1698 (toll-free) or 1-201-389-0844\n(international). Participants should call in 10 minutes prior to the scheduled\nstart time. Both the call and webcast are open to the general public. For\nthose unable to listen to the live broadcast, a webcast replay of the call\nwill be available at https://investor.oportun.com for one year. A file that\nincludes supplemental financial information and reconciliations of certain\nnon-GAAP measures to their most directly comparable GAAP measures, will be\navailable on the Investor Relations page of Oportun's website at\nhttps://investor.oportun.com following the conference call.\n\nAbout Non-GAAP Financial Measures\n\n \n\nThis press release presents information about the Company’s Adjusted Net\nIncome (Loss), Adjusted EPS, Adjusted EBITDA, Adjusted Operating Expense,\nAdjusted Operating Expense Ratio, Adjusted ROE, Risk Adjusted Net Interest\nMargin, and Risk Adjusted Net Interest Margin Ratio, all of which are non-GAAP\nfinancial measures provided as a supplement to the results provided in\naccordance with accounting principles generally accepted in the United States\nof America (“GAAP”). The Company believes these non-GAAP measures can be\nuseful measures for period-to-period comparisons of its core business and\nprovide useful information to investors and others in understanding and\nevaluating its operating results. Non-GAAP financial measures are provided in\naddition to, and not as a substitute for, and are not superior to, financial\nmeasures calculated in accordance with GAAP. In addition, the non-GAAP\nmeasures the Company uses, as presented, may not be comparable to similar\nmeasures used by other companies. Reconciliations of non-GAAP to GAAP measures\ncan be found below.\n\nAbout Oportun\n\n \n\nOportun (Nasdaq: OPRT) is a mission-driven financial services company that\nputs its members' financial goals within reach. With intelligent borrowing,\nsavings, and budgeting capabilities, Oportun empowers members with the\nconfidence to build a better financial future. Since inception, Oportun has\nprovided more than $22.2 billion in responsible and affordable credit, saved\nits members more than $2.5 billion in interest and fees, and helped its\nmembers set aside an average of more than $1,800 annually. For more\ninformation, visit Oportun.com.\n\nForward-Looking Statements\n\n \n\nThis press release contains forward-looking statements. These forward-looking\nstatements are subject to the safe harbor provisions under the Private\nSecurities Litigation Reform Act of 1995, Section 27A of the Securities Act of\n1933, as amended and Section 21E of the Securities Exchange Act of 1934, as\namended. All statements other than statements of historical fact contained in\nthis press release, including statements as to future performance, results of\noperations and financial position; achievement of the Company's strategic\npriorities and goals; the Company's expectations regarding macroeconomic\nconditions; the Company's profitability and future growth opportunities\nincluding expected revenue growth in connection with increasing originations;\nthe effect of and trends in fair value mark-to-market adjustments on the\nCompany's loan portfolio and asset-backed notes; the Company's second quarter\nand full year 2026 outlook; the Company’s expectations regarding Adjusted\nEPS in full year 2026; the Company's expectations related to future\nprofitability on an adjusted basis, and the plans and objectives of management\nfor our future operations, are forward-looking statements. These statements\ncan be generally identified by terms such as “expect,” “plan,”\n“goal,” “target,” “anticipate,” “assume,” “predict,”\n“project,” “outlook,” “continue,” “due,” “may,”\n“believe,” “seek,” or “estimate” and similar expressions or the\nnegative versions of these words or comparable words, as well as future or\nconditional verbs such as “will,” “should,” “would,” “likely”\nand “could.” These forward-looking statements speak only as of the date on\nwhich they are made and, except to the extent required by federal securities\nlaws, Oportun disclaims any obligation to update any forward-looking statement\nto reflect events or circumstances after the date on which the statement is\nmade or to reflect the occurrence of unanticipated events. In light of these\nrisks and uncertainties, there is no assurance that the events or results\nsuggested by the forward-looking statements will in fact occur, and you should\nnot place undue reliance on these forward-looking statements. These statements\ninvolve known and unknown risks, uncertainties, assumptions and other factors\nthat may cause Oportun’s actual results, performance or achievements to be\nmaterially different from any future results, performance or achievements\nexpressed or implied by the forward-looking statements. Oportun has based\nthese forward-looking statements on its current expectations and projections\nabout future events, financial trends and risks and uncertainties that it\nbelieves may affect its business, financial condition and results of\noperations. These risks and uncertainties include those risks described in\nOportun's filings with the Securities and Exchange Commission, including\nOportun's most recent annual report on Form 10-K, and include, but are not\nlimited to, Oportun's ability to retain existing members and attract new\nmembers; Oportun's ability to accurately predict demand for, and develop its\nfinancial products and services; the effectiveness of Oportun's A.I. model;\nmacroeconomic conditions, including fluctuating inflation and market interest\nrates; increases in loan non-payments, delinquencies and charge-offs;\nOportun's ability to increase market share and enter into new markets;\nOportun's ability to realize the benefits from acquisitions and integrate\nacquired technologies; the risk of security breaches or incidents affecting\nthe Company's information technology systems or those of the Company's\nthird-party vendors or service providers; Oportun’s ability to successfully\noffer loans in additional states; Oportun’s ability to compete successfully\nwith other companies that are currently in, or may in the future enter, its\nindustry; and changes in Oportun's ability to obtain additional financing on\nacceptable terms or at all.\n\nContacts\n\n \n\nInvestor Contact\nDorian Hare\n(650) 590-4323\nir@oportun.com\n\nMedia Contact\nMichael Azzano\nCosmo PR for Oportun\n(415) 596-1978\nmichael@cosmo-pr.com\n\nOportun and the Oportun logo are registered trademarks of Oportun, Inc.\n\n Oportun Financial Corporation CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except share and per share data, unaudited) \n \n\n\n\n Three Months Ended March 31, \n 2026 2025 \n Revenue \n Interest income $ 215.7 $ 220.2 \n Non-interest income 13.1 15.7 \n Total revenue 228.8 235.9 \n Less: \n Interest expense 48.0 57.4 \n Net decrease in fair value (85.9 ) (72.7 ) \n Net revenue 94.9 105.8 \n \n Operating expenses: \n Technology and facilities 34.1 36.4 \n Sales and marketing 15.9 19.9 \n Personnel 25.5 21.0 \n Outsourcing and professional fees 8.7 8.0 \n General, administrative and other 7.0 7.4 \n Total operating expenses 91.3 92.7 \n \n Income before taxes 3.6 13.2 \n Income tax expense 1.2 3.4 \n Net income $ 2.3 $ 9.8 \n \n Diluted Earnings per Common Share $ 0.05 $ 0.21 \n Diluted Weighted Average Common Shares 48,498,763 47,037,799 \n\nNote: Numbers may not foot or cross-foot due to rounding.\n\n Oportun Financial Corporation CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, unaudited) \n \n\n\n\n March 31, December 31, \n 2026 2025 \n Assets \n Cash and cash equivalents $ 130.4 $ 105.5 \n Restricted cash 79.5 93.4 \n Loans receivable at fair value 2,771.8 2,874.1 \n Capitalized software and other intangibles 69.4 71.7 \n Right of use assets - operating 10.5 9.4 \n Other assets 106.0 103.7 \n Total assets $ 3,167.5 $ 3,257.9 \n \n Liabilities and stockholders' equity \n Liabilities \n Secured financing $ 212.5 $ 199.4 \n Asset-backed notes at fair value 194.3 263.8 \n Asset-backed borrowings at amortized cost 2,154.4 2,192.6 \n Acquisition and corporate financing 145.1 143.7 \n Lease liabilities 11.4 11.5 \n Other liabilities 53.6 56.8 \n Total liabilities 2,771.3 2,867.8 \n Stockholders' equity \n Common stock — — \n Common stock, additional paid-in capital 627.5 623.7 \n Accumulated deficit (224.9 ) (227.3 ) \n Treasury stock (6.3 ) (6.3 ) \n Total stockholders’ equity 396.3 390.1 \n Total liabilities and stockholders' equity $ 3,167.5 $ 3,257.9 \n\nNote: Numbers may not foot or cross-foot due to rounding.\n\n\n\n Oportun Financial Corporation CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions, unaudited) \n \n\n\n\n Three Months Ended March 31, \n 2026 2025 \n Cash flows from operating activities \n Net income $ 2.3 $ 9.8 \n Adjustments for non-cash items 104.9 83.2 \n Proceeds from sale of loans in excess of originations of loans sold and held for sale 1.4 3.0 \n Changes in balances of operating assets and liabilities (4.9 ) 4.9 \n Net cash provided by operating activities 103.7 101.0 \n \n Cash flows from investing activities \n Net loan principal repayments (loan originations) 14.6 (49.7 ) \n Capitalization of system development costs (6.5 ) (5.6 ) \n Other, net (0.2 ) (0.2 ) \n Net cash provided by (used in) investing activities 8.0 (55.5 ) \n \n Cash flows from financing activities \n Borrowings 558.9 745.4 \n Repayments (659.3 ) (774.0 ) \n Net stock-based activities (0.5 ) (0.5 ) \n Net cash used in financing activities (100.8 ) (29.1 ) \n \n Net increase in cash and cash equivalents and restricted cash 10.9 16.3 \n Cash and cash equivalents and restricted cash beginning of period 198.9 214.6 \n Cash and cash equivalents and restricted cash end of period $ 209.9 $ 231.0 \n\nNote: Numbers may not foot or cross-foot due to rounding.\n\n Oportun Financial Corporation CONSOLIDATED KEY PERFORMANCE METRICS (unaudited) \n \n\n\n\n Three Months Ended March 31, \n Key Financial and Operating Metrics 2026 2025 \n Aggregate Originations (Millions) $ 416.9 $ 469.4 \n Portfolio Yield (%) 32.1 % 33.0 % \n 30+ Day Delinquency Rate (%) 4.5 % 4.7 % \n Annualized Net Charge-Off Rate (%) 12.7 % 12.2 % \n \n Other Metrics \n Managed Principal Balance at End of Period (Millions) $ 2,804.3 $ 2,955.0 \n Owned Principal Balance at End of Period (Millions) $ 2,640.6 $ 2,659.4 \n Average Daily Principal Balance (Millions) $ 2,721.6 $ 2,705.2 \n Average Daily Debt Balance (Millions) $ 2,764.1 $ 2,839.1 \n Annualized interest expense (Millions) $ 194.6 $ 232.8 \n Cost of Debt (%) 7.0 % 8.2 % \n Customer Acquisition Cost ((2)) $ 134 $ 139 \n\nNote: Numbers may not foot or cross-foot due to rounding.\n\n Oportun Financial Corporation ABOUT NON-GAAP FINANCIAL MEASURES (unaudited) \n \n\nThis press release dated May 7, 2026 contains non-GAAP financial measures.\nThe following tables reconcile the non-GAAP financial measures in this press\nrelease to the most directly comparable financial measures prepared in\naccordance with GAAP.\n\nThe Company believes that the provision of these non-GAAP financial measures\ncan provide useful measures for period-to-period comparisons of Oportun's core\nbusiness and useful information to investors and others in understanding and\nevaluating its operating results. However, non-GAAP financial measures are not\ncalculated in accordance with GAAP and should not be considered as a\nsubstitute for, or superior to, measures of financial performance prepared in\naccordance with GAAP. These non-GAAP financial measures do not reflect a\ncomprehensive system of accounting, differ from GAAP measures with the same\nnames, and may differ from non-GAAP financial measures with the same or\nsimilar names that are used by other companies.\n\nAdjusted EBITDA\n\nThe Company defines Adjusted EBITDA as net income, adjusted to eliminate the\neffect of certain items as described below. The Company believes that Adjusted\nEBITDA is an important measure because it allows management, investors and its\nboard of directors to evaluate and compare operating results, including return\non capital and operating efficiencies, from period to period by making the\nadjustments described below. In addition, it provides a useful measure for\nperiod-to-period comparisons of Oportun's business, as it removes the effect\nof income taxes, certain non-cash items, variable charges and timing\ndifferences.\n* The Company believes it is useful to exclude the impact of income tax\nexpense, as reported, because historically it has included irregular income\ntax items that do not reflect ongoing business operations.\n* The Company believes it is useful to exclude depreciation and amortization\nand stock-based compensation expense because they are non-cash charges.\n* The Company believes it is useful to exclude the impact of interest expense\nassociated with the Company's corporate financing facilities, including the\nsenior secured term loan and the residual financing facility, as it views this\nexpense as related to its capital structure rather than its funding.\n* The Company excludes the impact of certain non-recurring charges and other\nnon-recurring charges because it does not believe that these items reflect\nongoing business operations. Other non-recurring charges include litigation\nreserve, impairment charges, workforce optimization expenses, shareholder\nactivism costs, debt amendment and warrant amortization costs related to our\ncorporate financing facilities.\n* The Company also excludes fair value mark-to-market adjustments on its loans\nreceivable portfolio and asset-backed notes carried at fair value because\nthese adjustments do not impact cash.\nAdjusted Net Income\n\nThe Company defines Adjusted Net Income as net income adjusted to eliminate\nthe effect of certain items as described below. The Company believes that\nAdjusted Net Income is an important measure of operating performance because\nit allows management, investors, and the Company's board of directors to\nevaluate and compare its operating results, including return on capital and\noperating efficiencies, from period to period, excluding the after-tax impact\nof non-cash, stock-based compensation expense and certain non-recurring\ncharges.\n* The Company believes it is useful to exclude the impact of income tax\nexpense (benefit), as reported, because historically it has included irregular\nincome tax items that do not reflect ongoing business operations. The Company\nalso includes the impact of normalized income tax expense by applying a\nnormalized statutory tax rate.\n* The Company believes it is useful to exclude the impact of certain\nnon-recurring charges and other non-recurring charges because it does not\nbelieve that these items reflect its ongoing business operations. Other\nnon-recurring charges include litigation reserve, impairment charges,\nworkforce optimization expenses, shareholder activism costs, debt amendment\nand warrant amortization costs related to our corporate financing facilities.\n* The Company believes it is useful to exclude stock-based compensation\nexpense because it is a non-cash charge.\n* The Company also excludes the fair value mark-to-market adjustment on its\nasset-backed notes carried at fair value to align with the 2023 accounting\npolicy decision to account for new debt financings at amortized cost.\nRisk Adjusted Net Interest Margin and Risk Adjusted Net Interest Margin Ratio\n\nThe Company defines Risk Adjusted Net Interest Margin as total interest and\nnon-interest income, less interest expense, credit losses and the impact of\nloan-related fair value adjustments. The Company defines Risk Adjusted Net\nInterest Margin Ratio as annualized Risk Adjusted Net Interest Margin divided\nby Average Daily Principal Balance. Average Daily Principal Balance represents\nthe average loan balance outstanding over the reporting period. The Company\nbelieves Risk Adjusted Net Interest Margin and Risk Adjusted Net Interest\nMargin Ratio are important metrics because they reflect the net margin earned\non its loan portfolio after accounting for both the cost of borrowing and the\nimpact of credit performance, along with non-interest income. The Company\nbelieves that the Risk Adjusted Net Interest Margin measure provides\nmanagement, investors, and Oportun's board of directors with a more complete\nunderstanding of the net margin of the Company’s loan portfolio and\nnon-interest income on a risk-adjusted basis. The Company believes that the\nRisk Adjusted Net Interest Margin Ratio allows management, investors and\nOportun's board of directors to evaluate its efficiency relative to its\nAverage Daily Principal Balance.\n\nAdjusted Operating Expense and Adjusted Operating Expense Ratio\n\nThe Company defines Adjusted Operating Expense as total operating expenses\nadjusted to exclude stock-based compensation expense and certain non-recurring\ncharges, such as expenses associated with our workforce optimization, and\nother non-recurring charges. Other non-recurring charges include litigation\nreserve, impairment charges, workforce optimization expenses, shareholder\nactivism costs, and debt amendment costs related to our Corporate Financing\nfacility. The Company defines Adjusted Operating Expense Ratio as Adjusted\nOperating Expense divided by Average Daily Principal Balance. The Company\nbelieves Adjusted Operating Expense is an important measure because it allows\nmanagement, investors and Oportun's board of directors to evaluate and compare\nits operating costs from period to period, excluding the impact of non-cash,\nstock-based compensation expense and certain non-recurring charges. The\nCompany believes Adjusted Operating Expense Ratio is an important measure\nbecause it allows management, investors and Oportun's board of directors to\nevaluate how efficiently the Company is managing costs relative to revenue and\nAverage Daily Principal Balance.\n\nAdjusted Return on Equity\n\nThe Company defines Adjusted Return on Equity (“ROE”) as annualized\nAdjusted Net Income divided by average stockholders’ equity. Average\nstockholders’ equity is an average of the beginning and ending\nstockholders’ equity balance for each period. The Company believes Adjusted\nROE is an important measure because it allows management, investors and its\nboard of directors to evaluate the profitability of the business in relation\nto its stockholders' equity and how efficiently it generates income from\nstockholders' equity.\n\nAdjusted EPS\n\nThe Company defines Adjusted EPS as Adjusted Net Income divided by weighted\naverage diluted shares outstanding.\n\n Oportun Financial Corporation RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, unaudited) \n \n\n\n\n Three Months Ended March 31, \n Adjusted EBITDA 2026 2025 \n Net income $ 2.3 $ 9.8 \n Adjustments: \n Income tax expense 1.2 3.4 \n Interest on corporate financing 7.0 9.7 \n Depreciation and amortization 9.0 11.1 \n Stock-based compensation expense 3.0 2.8 \n Other non-recurring charges ((1)) 6.0 1.7 \n Fair value mark-to-market adjustment 0.8 (4.9 ) \n Adjusted EBITDA $ 29.4 $ 33.5 \n \n\n\n\n Three Months Ended March 31, \n Adjusted Net Income 2026 2025 \n Net income $ 2.3 $ 9.8 \n Adjustments: \n Income tax expense 1.2 3.4 \n Stock-based compensation expense 3.0 2.8 \n Other non-recurring charges ((1)) 6.0 1.7 \n Mark-to-market adjustment on ABS notes 1.4 7.9 \n Adjusted income before taxes 14.0 25.5 \n Normalized income tax expense 3.8 6.9 \n Adjusted Net Income $ 10.2 $ 18.6 \n \n Stockholders' equity $ 396.3 $ 366.1 \n GAAP ROE 2.4 % 11.0 % \n Adjusted ROE (%) ((2)) 10.5 % 21.0 % \n\n((1)) Certain prior-period financial information has been reclassified to\nconform to current period presentation.\n((2)) Calculated as Adjusted Net Income divided by average stockholders’\nequity.\n\nNote: Numbers may not foot or cross-foot due to rounding.\n\n Oportun Financial Corporation RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, unaudited) \n \n\n\n\n Three Months Ended March 31, \n Adjusted Operating Expense Ratio 2026 2025 \n OpEx Ratio 13.6 % 13.9 % \n \n Total Operating Expense $ 91.3 $ 92.7 \n Adjustments: \n Stock-based compensation expense (3.0 ) (2.8 ) \n Other non-recurring charges ((1)) (3.1 ) (0.9 ) \n Total Adjusted Operating Expense $ 85.2 $ 88.9 \n \n Average Daily Principal Balance $ 2,721.6 $ 2,705.2 \n \n Adjusted OpEx Ratio 12.7 % 13.3 % \n\n((1)) Certain prior-period financial information has been reclassified to\nconform to current period presentation.\n\n Three Months Ended March 31, \n 2026 2025 \n Risk Adjusted Net Interest Margin \n Total Revenue 228.8 235.9 \n Less: Interest Expense 48.0 57.4 \n Net Interest Margin $ 180.8 $ 178.5 \n \n Net Interest Margin Ratio 26.9 % 26.8 % \n \n Adjustments: \n Mark-to-market adjustment on loans (0.7 ) 12.4 \n Mark-to-market adjustment on derivatives 1.2 0.4 \n Net settlements on derivative instruments (0.2 ) 3.7 \n Net charge-offs (84.9 ) (81.3 ) \n Other non-recurring charges 0.6 0.7 \n Risk Adjusted Net Interest Margin $ 96.9 $ 114.5 \n \n Average Daily Principal Balance $ 2,721.6 $ 2,705.2 \n \n Risk Adjusted Net Interest Margin Ratio 14.4 % 17.2 % \n\nNote: Numbers may not foot or cross-foot due to rounding.\n\n Oportun Financial Corporation RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, except share and per share data, unaudited) \n \n\n\n\n Three Months Ended March 31, \n GAAP Earnings per Share 2026 2025 \n Net income $ 2.3 $ 9.8 \n Net income attributable to common stockholders $ 2.3 $ 9.8 \n \n Basic weighted-average common shares outstanding 47,436,155 45,496,705 \n Weighted average effect of dilutive securities: \n Stock options — — \n Restricted stock units 1,062,608 1,541,094 \n Diluted weighted-average common shares outstanding 48,498,763 47,037,799 \n \n Earnings per share: \n Basic $ 0.05 $ 0.21 \n Diluted $ 0.05 $ 0.21 \n\n\n\n Three Months Ended March 31, \n Adjusted Earnings Per Share 2026 2025 \n Diluted earnings per share $ 0.05 $ 0.21 \n \n Adjusted Net Income $ 10.2 $ 18.6 \n \n Basic weighted-average common shares outstanding 47,436,155 45,496,705 \n Weighted average effect of dilutive securities: \n Stock options — — \n Restricted stock units 1,062,608 1,541,094 \n Diluted adjusted weighted-average common shares outstanding 48,498,763 47,037,799 \n \n Adjusted Earnings Per Share $ 0.21 $ 0.40 \n\nNote: Numbers may not foot or cross-foot due to rounding.\n\n Oportun Financial Corporation RECONCILIATION OF FORWARD LOOKING NON-GAAP FINANCIAL MEASURES (in millions, unaudited) \n \n\n\n\n 2Q 2026 FY 2026 \n Low High Low High \n Adjusted EBITDA \n Net income $ 6.9 * $ 10.8 * $ 51.0 $ 59.2 \n Adjustments: \n Income tax expense (benefit) 2.1 3.2 15.3 17.8 \n Interest on corporate financing 6.2 6.2 23.0 23.0 \n Depreciation and amortization 8.8 8.8 35.2 35.2 \n Stock-based compensation expense 3.2 3.2 11.3 11.3 \n Other non-recurring charges 6.8 6.8 17.2 17.2 \n Fair value mark-to-market adjustment * * (2.9 ) 1.4 \n Adjusted EBITDA $ 34.0 $ 39.0 $ 150.0 $ 165.0 \n \n\n*Due to the uncertainty in macroeconomic conditions and quarterly volatility\nin the fair value mark to market adjustment, we are unable to precisely\nforecast the fair value mark-to-market adjustments on our loan portfolio and\nasset-backed notes on a quarterly basis. As a result, while we fully expect\nthere to be a fair value mark-to-market adjustment which could have an impact\non GAAP net income (loss), the net income (loss) information presented above\nassumes no change in the fair value mark-to-market adjustment.\n\n FY 2026 \n Adjusted Net Income and Adjusted EPS Low High \n Net income $ 51.0 $ 59.2 \n Adjustments: \n Income tax expense (benefit) 17.3 20.1 \n Stock-based compensation expense 11.3 11.3 \n Other non-recurring charges 17.2 17.2 \n Mark-to-market adjustment on ABS notes 4.5 4.5 \n Adjusted income before taxes $ 101.4 $ 112.3 \n Normalized income tax expense 27.4 30.3 \n Adjusted Net Income $ 74.0 $ 82.0 \n \n Diluted weighted-average common shares outstanding 49.5 49.5 \n \n Diluted earnings per share $ 1.03 $ 1.19 \n Adjusted Earnings Per Share $ 1.50 $ 1.65 \n\nNote: Numbers may not foot or cross-foot due to rounding.\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/ec656b1f-8df7-4ba5-8f8d-e9bae57c820b)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-05-07T20:05:15.240954821Z","server_sent_at_ms":1778184315240},"received_at":"2026-05-07T20:05:15.386Z","source_url":"https://www.globenewswire.com/news-release/2026/05/07/3290576/0/en/Oportun-Reports-First-Quarter-2026-Results-Extends-GAAP-Profitability-Streak.html"},"analysis":{"id":"20861","press_release_id":"26675","analysis_json":{"industry":{"label":"Consumer Finance","sector":"Financials"},"redFlags":["Net Income declined 77% year-over-year","Annualized Net Charge-Off Rate increased to 12.7% from 12.2% in the prior year","GAAP EPS dropped significantly to $0.05 from $0.21 in the prior year"],"eventType":"earnings","narrative":"Oportun reported Q1 2026 revenue of $229 million, down 3% year-over-year, and GAAP net income of $2.3 million, marking the sixth consecutive quarter of profitability but a significant decline from the prior year.\n\nOperational metrics showed pressure, with aggregate originations decreasing 11% to $417 million and the annualized net charge-off rate rising to 12.7%.\n\nManagement reiterates full-year 2026 guidance for revenue of $935 million to $955 million and Adjusted EPS of $1.50 to $1.65, while pointing to improved liquidity and lower funding costs.","sentiment":"mixed","agentHooks":{"shouldPost":false,"suggestedAngle":"Mixed earnings with maintained profitability but rising credit costs; guidance holds."},"keyFigures":{"eps":0.05,"revenue":228800000,"guidance":"FY26 Revenue $935M-$955M; Adjusted EPS $1.50-$1.65; Adjusted EBITDA $150M-$165M","customDimensions":{"adjusted_eps":0.21,"originations":417000000,"adjusted_ebitda":29000000,"net_charge_off_rate":"12.7%","owned_principal_balance":2600000000}},"quotedText":"The business has made meaningful progress strengthening its foundation, including continued GAAP profitability, lower funding costs and improved liquidity.","namedEntities":{"people":[{"name":"Doug Bland","role":"CEO"},{"name":"Paul Appleton","role":"Interim Chief Financial Officer"}],"products":["Secured Personal Loans"],"companies":[{"name":"Oportun Financial Corporation","ticker":"OPRT"}],"dollarAmounts":[{"amount":"$229 million","context":"Q1 2026 Total Revenue"},{"amount":"$2.3 million","context":"Q1 2026 Net Income"},{"amount":"$417 million","context":"Q1 2026 Aggregate Originations"},{"amount":"$2.6 billion","context":"Q1 2026 Owned Principal Balance"},{"amount":"$85 million","context":"Q1 2026 Net Charge-offs in dollars"},{"amount":"$210 million","context":"Total cash as of March 31, 2026"}]},"materialImpact":{"score":3,"reasoning":"Oportun achieved its sixth consecutive quarter of GAAP profitability, but missed the prior year's performance significantly with Net Income down 77% YoY and Revenue down 3%. While the balance sheet strengthened with lower funding costs and improved liquidity, credit performance deteriorated with the Net Charge-Off Rate rising to 12.7%. The reiteration of full-year guidance provides stability but reflects the current challenging credit environment."},"tickerRelevance":{"others":[],"primary":"OPRT"},"globalImportance":25,"audienceRelevance":30,"eventTypeSecondary":["guidance_update"],"importanceComponents":{"tickerTier":"mid-cap","creditTrends":"deteriorating","eventGravity":"earnings-mixed","sectorWeight":"Financials"}},"event_type":"earnings","event_type_secondary":["guidance_update"],"sentiment":"mixed","material_impact_score":3,"narrative":"Oportun reported Q1 2026 revenue of $229 million, down 3% year-over-year, and GAAP net income of $2.3 million, marking the sixth consecutive quarter of profitability but a significant decline from the prior year.\n\nOperational metrics showed pressure, with aggregate originations decreasing 11% to $417 million and the annualized net charge-off rate rising to 12.7%.\n\nManagement reiterates full-year 2026 guidance for revenue of $935 million to $955 million and Adjusted EPS of $1.50 to $1.65, while pointing to improved liquidity and lower funding costs.","key_figures":{"eps":0.05,"revenue":228800000,"guidance":"FY26 Revenue $935M-$955M; Adjusted EPS $1.50-$1.65; Adjusted EBITDA $150M-$165M","customDimensions":{"adjusted_eps":0.21,"originations":417000000,"adjusted_ebitda":29000000,"net_charge_off_rate":"12.7%","owned_principal_balance":2600000000}},"named_entities":{"people":[{"name":"Doug Bland","role":"CEO"},{"name":"Paul Appleton","role":"Interim Chief Financial Officer"}],"products":["Secured Personal Loans"],"companies":[{"name":"Oportun Financial Corporation","ticker":"OPRT"}],"dollarAmounts":[{"amount":"$229 million","context":"Q1 2026 Total Revenue"},{"amount":"$2.3 million","context":"Q1 2026 Net Income"},{"amount":"$417 million","context":"Q1 2026 Aggregate Originations"},{"amount":"$2.6 billion","context":"Q1 2026 Owned Principal Balance"},{"amount":"$85 million","context":"Q1 2026 Net Charge-offs in dollars"},{"amount":"$210 million","context":"Total cash as of March 31, 2026"}]},"model_name":"glm-4.7","prompt_hash":"sha256:f66160e0fe5301b2","schema_hash":"sha256:12363694422af5d9","created_at":"2026-05-08T03:50:58.762Z","global_importance":25,"audience_relevance":30,"importance_components":{"tickerTier":"mid-cap","creditTrends":"deteriorating","eventGravity":"earnings-mixed","sectorWeight":"Financials"}},"durationMs":95295,"modelName":"glm-4.7"}}