OppFi, Inc. (NYSE: OPFI) has announced its financial results for the fourth quarter of 2024, revealing a period of significant growth and operational success. The company reported a total revenue of $135.7 million, marking a 2.1% increase year-over-year and surpassing both internal and market expectations. This performance is a testament to OppFi's resilient business model and its ability to adapt to changing market conditions.
The net revenue margin saw an impressive expansion to 59.5%, up by 1,000 basis points compared to the same quarter in the previous year. This margin improvement highlights the company's enhanced efficiency and profitability. Net income experienced a staggering 619.7% year-over-year growth, reaching approximately $14.0 million, while adjusted net income rose by 140.3% to $20.3 million. These figures underscore OppFi's robust financial health and its capacity to generate substantial returns for its stakeholders.
Financial flexibility remains a strong suit for OppFi, with the company ending the quarter with $88.3 million in cash and restricted cash, an increase of $14.3 million from the previous year. Additionally, OppFi has $206.2 million in unused debt capacity, providing ample room for strategic investments and growth initiatives. This financial stability is crucial for sustaining long-term growth and navigating potential market uncertainties.
Total net originations for the quarter amounted to $214.0 million, an 11% increase year-over-year, driven by expanded bank partnerships and improved lead evaluation processes. The auto-approval rate improved to 79%, up from 73% in the prior year, demonstrating the effectiveness of OppFi's algorithmic underwriting process. These advancements in operational capabilities are key drivers behind the company's ability to serve more customers efficiently while maintaining credit quality.
Credit risk management has also seen notable improvements, with charge-offs as a percentage of total revenue decreasing to 42% from 46% the previous year. This reduction is attributed to a healthier portfolio composition and more sophisticated credit modeling techniques, reflecting OppFi's commitment to sustainable growth and risk mitigation.
Looking ahead, OppFi has provided optimistic guidance for 2025, projecting full-year revenue between $563.0 million and $594.0 million, representing a 7% to 13% year-over-year increase. Adjusted net income is expected to range from $95.0 million to $97.0 million, indicating a 15% to 17% annual growth. This forward-looking perspective is supported by disciplined cost management and sustained demand for OppFi's financial products, positioning the company for continued success in the evolving financial services landscape.
