Oportun Financial Corp (NASDAQ:OPRT) has reported its Q3 2023 results, displaying a significant improvement in its financial performance. The company recorded a revenue of $268 million, a 7% year-on-year (YoY) increase, while operating expenses hit a two-year low at $123 million.
Despite a 24% drop in originations to $483 million, the firm managed to reduce its net loss to $21 million from last year's hefty loss of $106 million. The diluted earnings per share (EPS) stood at $(0.55), and the Adjusted EBITDA was reported at $16 million, marking an upturn from a $6.2 million loss in Q3 2022.
The company also noted growth in membership and product numbers by 13% and 14% respectively, reaching 2.1 million and 2.3 million. However, the managed principal balance saw a decrease of 4% to $3.23 billion.
As part of its ongoing strategy to enhance shareholder returns and achieve profitable, sustainable growth, Oportun Financial executed two personal loan financing agreements totaling $267 million during the quarter. The company is also setting its sights on achieving $105 million in quarterly expenses by the end of 2024. This target is expected to be reached through cost reductions, streamlining its product suite, as well as exploring strategic options for its credit card portfolio.
InvestingPro Insights
In light of the recent financial performance reported by Oportun Financial Corp, it's prudent to consider some InvestingPro insights. The company has seen a significant return over the last week, with a 7.75% increase. Nonetheless, InvestingPro data indicates a negative P/E ratio of -0.87, suggesting the company isn't currently profitable.
On the brighter side, there's been a large price uptick over the last six months, with a 52.24% total return. This aligns with one of our InvestingPro Tips, which highlights the stock's high price volatility.
In terms of financial health, it's worth noting that Oportun's liquid assets exceed its short-term obligations. Yet, the company has not been profitable over the last twelve months, and analysts do not anticipate profitability this year.
For those interested in a deeper dive into these metrics and more, InvestingPro provides additional tips and real-time data to help investors make informed decisions.
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