Oportun Financial (NASDAQ:OPRT) reported second-quarter 2026 results that exceeded its guidance ranges, supported by modest origination growth, lower credit losses and reduced interest expense. The company also raised its full-year adjusted EBITDA outlook and lowered its expected annualized net charge-off rate.
Chief Executive Officer Doug Bland said the quarter marked an “important step forward” as the company moves from stabilization toward what he described as disciplined growth. Oportun recorded total revenue of $233 million, $1 million above the high end of its guidance range, while adjusted EBITDA reached $49 million, exceeding the company’s $34 million to $39 million outlook.
Profitability and Revenue
Oportun posted GAAP net income of $8.5 million, or $0.17 per diluted share, its seventh consecutive profitable quarter under GAAP. That compared with year-over-year growth of 24% in net income and 21% in GAAP earnings per share, according to Interim Chief Financial Officer Paul Appleton.
Adjusted net income was $21 million, or $0.42 per share, up 40% and 35%, respectively, from the prior-year period. Total revenue declined less than 1% year over year, but exceeded expectations as originations increased 1% from the year-earlier quarter.
Net revenue rose $1 million year over year to $106 million. Operating expenses fell $4.4 million, or 5%, to $90 million, reflecting continued cost controls. Pretax income increased 55% to $16 million.
Interest expense declined $18 million year over year to $42 million. Appleton said the reduction reflected corporate debt repayments, other balance-sheet optimization actions and a favorable non-cash change in interest expense recognition tied to $140 million of asset-backed borrowings. Revisions to expected cash flows associated with those borrowings contributed about $7 million of lower interest expense during the quarter, with an additional estimated $3 million benefit expected in the second half.
Credit Trends and Origination Mix
The company’s annualized net charge-off rate improved 65 basis points sequentially to 12%, better than Oportun’s prior guidance of 12.2%, plus or minus 15 basis points. Its 30-plus-day delinquency rate was 4%, below the company’s 4.1% to 4.2% expectation and its lowest level since the fourth quarter of 2021.
Appleton attributed the credit performance partly to a higher mix of returning members and secured personal loans. Returning members accounted for 82% of second-quarter origination volume, with their volume rising 64% from a year earlier. Secured personal loan originations increased 15%, and those loans represented 9% of the portfolio at quarter-end, compared with 7% a year earlier.
Bland said Oportun does not intend to loosen its credit posture, but is seeking to become more precise in its underwriting, pricing, loan amount and term decisions. The company appointed Sean Rowles as chief risk officer and launched its V13 credit model for new members in June, incorporating more recent performance trends and additional data signals.
In July, Oportun also launched risk-based pricing, following an agreement with Column and alongside its other bank partner program. Bland said the company plans to conduct tests during the second half of the year to help determine how it positions risk-based pricing in 2027 and beyond.
Management said it had not observed material changes in consumer payment behavior or deterioration in its credit metrics despite inflation, uneven job creation, policy uncertainty and higher gasoline prices. Appleton said the company’s customers have continued to demonstrate resilience, including by adjusting spending behavior amid price volatility.
Balance Sheet and Outlook
Oportun ended the quarter with $140 million in unrestricted cash, up $43 million from a year earlier. Total debt declined $187 million, or 7%, from the company’s peak period cited by management, while the debt-to-equity ratio fell to 6.5 times from 7.3 times a year earlier and 8.7 times in the third quarter of 2024.
During the quarter, the company repaid $30 million of high-cost corporate debt, reducing the remaining principal balance to $135 million. Since the facility began in October 2024, Oportun has repaid $100 million, which Appleton said has produced $15 million in annualized run-rate interest expense savings. The company continues to expect leverage to approach six times by year-end.
For the third quarter, Oportun guided for:
- Total revenue of $235 million to $240 million;
- An annualized net charge-off rate of 11%, plus or minus 15 basis points; and
- Adjusted EBITDA of $43 million to $48 million.
At the midpoint, the third-quarter charge-off forecast would represent a further 100-basis-point sequential improvement and the company’s lowest quarterly level in four years, Appleton said.
For full-year 2026, Oportun now expects total revenue of $935 million to $955 million, an annualized net charge-off rate of 11.7%, plus or minus 30 basis points, and adjusted EBITDA of $160 million to $175 million. The midpoint of the EBITDA outlook increased by $10 million to $168 million, while the charge-off-rate midpoint improved by 20 basis points from prior guidance.
The company maintained its full-year adjusted net income forecast of $74 million to $82 million and adjusted EPS outlook of $1.50 to $1.65. Appleton said higher fair-value headwinds associated with the current interest-rate outlook offset the benefits of lower interest expense.
About Oportun Financial (NASDAQ:OPRT)
Oportun Financial Corporation (NASDAQ: OPRT) is a financial technology company that provides consumer lending products aimed at serving the underbanked and credit-invisible population in the United States. Headquartered in Redwood City, California, Oportun operates a digital platform that enables borrowers to access credit through unsecured personal installment loans, secured credit-builder loans and a proprietary mobile wallet. The company leverages machine learning and alternative data sources to assess creditworthiness, extending financial services to customers with limited or no traditional credit history.
The company’s core offerings include fixed-term installment loans designed to help individuals cover unexpected expenses, consolidate debt or build credit.
