OppFi Inc.

What they do

OppFi powers bank partners to originate, underwrite, and service small-dollar installment loans under the OppLoans platform. It uses proprietary machine-learning algorithms and data from credit bureaus and bank transactions to make automated credit decisions. It also holds a 35% equity interest in Bitty Holdings, LLC, which provides revenue-based financing to small businesses. The company reports payments to major credit bureaus and offers a TurnUp program to help applicants find lower-cost credit alternatives.

Revenue drivers

• OppLoans installment lending — Generates interest and fee revenue from installment loans with an average new-borrower size of approximately $2,000 and a 12-month term. Net originations were $899.3 million in 2025 and $212.0 million in Q2 2026.
• Bank partner program fees — Earns fees from bank partners for providing marketing, data science, underwriting, and servicing technology, with total revenue of $597.1 million in 2025.
• Bitty Holdings minority investment — Holds a 35% equity interest in Bitty, which provides revenue-based financing and working capital solutions, contributing through equity method income (not separately disclosed).

Recent performance

For the year ended December 31, 2025, total revenue increased 13.5% to $597.1 million from $526.0 million, net income rose 74.4% to $146.2 million from $83.8 million, and diluted EPS increased to $0.99 from $0.36. Net originations grew 12.2% to $899.3 million, and ending receivables rose 16.0% to $493.1 million. In Q2 2026, total revenue edged up 1.9% to $145.2 million, net income increased 36.0% to $15.6 million, but net originations fell 9.3% to $212.0 million. End-of-period receivables were $440.1 million as of June 30, 2026. As of June 30, 2026, the company had $64.3 million in cash, $356.5 million in total liabilities, and $414.3 million in shareholder equity.

Strategy

OppFi is pursuing vertical integration through the planned acquisition of BNCCORP, Inc., which will allow it to become a bank holding company and gain deposit-based funding. It also completed a corporate simplification in April 2026, eliminating noncontrolling interests and terminating its Tax Receivable Agreement. The company is investing in product diversification, including a new line of credit product, and aims to expand via its digital platform and partnerships. It continues to emphasize responsible lending, transparency, and financial inclusion as core strategic pillars. Management expects the BNCC transaction to close in Q4 2026, subject to regulatory and stockholder approvals.

Risks

• Bank partner dependence — Business is highly dependent on existing bank partners; any disruption or loss of these relationships could materially harm operations.
• Regulatory exposure — Potential application of California AB 539 and ongoing legal proceedings could affect bank partners' lending in California and available funding.
• Transaction execution risk — The proposed BNCC merger may not close on time or at all, and integration challenges could negatively impact operations.
• Credit and underwriting model risk — Errors or ineffectiveness in machine learning and underwriting models could lead to higher credit losses and reduced profitability.

Outlook

Management issued full-year 2026 guidance, though specific figures were not embedded in the provided excerpts. They expect the BNCC merger to close in the fourth quarter of 2026, enabling lower-cost deposit funding and improved risk management. The company also anticipates growth from geographic expansion and product diversification, including a new line of credit product. Near-term headwinds include a 9.3% year-over-year decline in Q2 2026 net originations and uncertainties around regulatory approvals.