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Oportun Financial fails to pass charter amendment

EditorNatashya Angelica
Published 06/28/2024, 05:11 PM
OPRT
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In a recent SEC filing, Oportun Financial (NASDAQ:OPRT) Corporation (NASDAQ:OPRT) disclosed the outcomes of its annual stockholders' meeting held on Wednesday. The California-based financial services company, which specializes in providing credit to underserved communities, saw its proposal to amend the Certificate of Incorporation and eliminate supermajority voting provisions fail to pass.

During the meeting, stockholders elected three Class II directors – Ginny Lee, Louis Miramontes, and Richard Tambor – each for a three-year term ending at the 2027 annual meeting. While all director nominees were elected, the charter amendment proposal did not receive the required votes for approval, with 16,022,171 votes in favor and 164,612 against.

Moreover, the stockholders ratified the appointment of Deloitte & Touche LLP as the company's independent auditor for the fiscal year ending December 31, 2024. This decision was made with an overwhelming majority of 27,092,903 votes for and 168,772 against.

The non-binding advisory resolution to approve the company's named executive officer compensation was also passed, with 14,271,495 votes in favor. This indicates stockholder support for the company's executive compensation policies as detailed in the proxy materials.

The SEC filing, which serves as the source of this information, provides a transparent view of the corporate governance and shareholder voting process at Oportun Financial Corporation. The results from the meeting reflect the decisions made by stockholders on key matters affecting the company's governance and oversight.

In other recent news, Oportun Financial Corporation had a robust first quarter in 2024, surpassing revenue expectations with a total of $250 million. The company achieved profitability with an adjusted net income of $4 million, a significant turnaround from the previous year's $58 million net loss.

Analysts from Jefferies LLC and JMP Securities have been closely monitoring the firm's performance, with Jefferies downgrading the stock to "Hold" and JMP maintaining a "Market Perform" rating.

Oportun's credit performance saw notable improvements, with lower charge-off rates and decreased delinquencies. The company's aggressive cost-cutting measures resulted in a 25% year-over-year reduction in operating expenses to $110 million. Furthermore, Oportun raised its full-year adjusted EBITDA guidance by 31%, reflecting confidence in its financial outlook.

Despite facing operational challenges, Oportun is striving to reaccelerate originations and restart its secured lending business. The company's strategic measures, along with an anticipated growth in the secured personal loans portfolio, are expected to lead to profitability and modest returns on shareholder equity by 2025. These are recent developments and should be taken into account by investors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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