Key Highlights

  • Total Revenue grew 3% to USD 246 million, the first year-over-year increase since the fourth quarter of 2023.
  • Net income was USD 23 million, or USD 0.45 per diluted share, against USD 5.2 million a year earlier.
  • The annualized net charge-off rate fell to 10.6% from 11.8%, and the 30-plus day delinquency rate fell to 4.1%.
  • Full-year guidance is revenue of USD 955 million to 960 million and adjusted EPS of USD 1.60 to 1.70.

Back to Growth

Oportun Financial Corporation (NASDAQ:OPRT), the San Mateo-based provider of consumer loans, reported third-quarter 2026 total revenue of USD 246 million, up USD 7.6 million, or 3%, from USD 239 million. Aggregate originations rose 12% to USD 572 million from USD 512 million. Growth came from lower-risk segments, with returning unsecured members and secured personal loans up a combined 25%. Owned principal balance was USD 2.7 billion, up 2%.

Net income was USD 22.9 million, or USD 0.45 per diluted share, versus USD 5.2 million, or USD 0.11. Adjusted Net Income was USD 26 million, up 38% from USD 19 million, and adjusted EPS was USD 0.51 versus USD 0.39. Adjusted EBITDA rose 37% to USD 56 million from USD 41 million. Chief Executive Officer Doug Bland said results outperformed guidance for revenue, adjusted EBITDA and net charge-offs, and introduced a strategy called Oportun Forward, aimed at simplifying and optimizing the core Business and improving offers for qualified applicants.

Analyst estimates were EPS of USD 0.46 against reported EPS of USD 0.51, and revenue of USD 237.9 million against reported revenue of USD 246.3 million.

Credit and Margin

The annualized net charge-off rate was 10.6%, down 121 basis points and the lowest since the third quarter of 2022, and net charge-offs were USD 71 million versus USD 80 million. The 30-plus day delinquency rate was 4.1% against 4.7%. The company credits its tight Credit posture and lower-risk originations.

Portfolio Yield rose 136 basis points to 34.4%, helped by origination fee income. Cost of Debt fell 193 basis points to 6.1%, supported by the repayment of USD 68 million of corporate debt. The net interest Margin ratio therefore increased 344 basis points to 30.5%, and the Risk-adjusted net interest margin ratio rose 260 basis points to 19.0%. Return on Equity was 22% versus 5%, and adjusted return on equity was 24% versus 20%.

Costs, Funding and Guidance

Total Operating Expense was flat at USD 92 million versus USD 91 million, as higher Bonus accruals, severance and Marketing costs were offset by interest and fees received on the resolution of a Mexico value-added tax refund and lower depreciation. Adjusted operating expense rose 9% to USD 92 million. Management now sees full-year operating expense up by a low-single-digit percentage, instead of flat. The adjusted operating expense ratio was 13.7% against 12.6%.

Total cash was USD 258 million, up USD 34 million, and USD 735 million was undrawn on USD 1.2 billion of committed personal Loan Warehouse lines. Debt to equity fell to 6.2 times from 7.1 times.

Guidance for the fourth quarter is revenue of USD 247 million to USD 252 million, and for the full year revenue of USD 955 million to USD 960 million, an annualized net charge-off rate of 11.6% plus or minus 10 basis points, adjusted EBITDA of USD 183 million to USD 188 million and adjusted EPS of USD 1.60 to USD 1.70, which the company describes as 21% growth at the midpoint. Chief Financial Officer Bill Franklin presented the guidance.

Items to Follow

Origination growth against credit performance, operating expense growth and delivery of Oportun Forward are the items to follow.