Oportun Financial Corp 10-Q for FY2021 Q3

Oportun Financial Corp (OPRT)

10-Q 2021-11-04 For: 2021-09-30

Added on April 07, 2026

About this 10-Q

Oportun Financial Corp filed this 10-Q on November 4, 2021, covering the quarter ended September 30, 2021 (FY2021 Q3).

Headline figures

Quarter ended September 30, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $159.08M; up 16.3% from $136.77M a year earlier
Net income: $22.98M; compared with a net loss of $6.05M a year earlier
Diluted EPS: $0.75; compared with -$0.22 a year earlier

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Delaware		45-3361983
State or Other Jurisdiction of Incorporation or Organization		I.R.S. Employer Identification No.

2 Circle Star Way
San Carlos,	CA	94070
Address of Principal Executive Offices		Zip Code


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.0001 par value per share	OPRT	Nasdaq Global Select Market


Large accelerated filer	☐	Smaller reporting company	☒
Accelerated filer	☒	Emerging growth company	☐
Non-accelerated filer	☐


TABLE OF CONTENTS
GLOSSARY

PART I ‑ FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	5
	Condensed Consolidated Balance Sheets	5
	Condensed Consolidated Statements of Operations and Comprehensive Income	6
	Condensed Consolidated Statements of Changes in Stockholders' Equity	7
	Condensed Consolidated Statements of Cash Flow	9
	Notes to the Condensed Consolidated Financial Statements	10
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	44
Item 4.	Controls and Procedures	44

PART II ‑ OTHER INFORMATION
Item 1.	Legal Proceedings	45
Item 1A.	Risk Factors	45
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	73
Item 3.	Defaults Upon Senior Securities	73
Item 4.	Mine Safety Disclosures	73
Item 5.	Other Information	73
Item 6.	Exhibit Index	74

Signature		75


Term or Abbreviation						Definition
30+ Day Delinquency Rate						Unpaid principal balance for our owned loans and credit card receivables that are 30 or more calendar days contractually past due as of the end of the period divided by Owned Principal Balance as of such date
Active Customers						Number of customers with an outstanding loan or an active credit card owned or serviced by us at the end of a period. Active Customers include customers whose loans or accounts were originated by us or under a bank partnership program that we service. Customers with charged-off accounts are excluded from Active Customers
Adjusted EBITDA						Adjusted EBITDA is a non-GAAP financial measure calculated as net income (loss), adjusted for the impact of our election of the fair value option and further adjusted to eliminate the effect of the following items: income tax expense (benefit), stock-based compensation expense, depreciation and amortization, certain non-recurring charges, origination fees for Fair Value Loans, net and fair value mark-to-market adjustments
Adjusted Earnings Per Share ("EPS")						Adjusted EPS is a non-GAAP financial measure calculated by dividing Adjusted Net Income by adjusted weighted-average diluted common shares outstanding
Adjusted Net Income						Adjusted Net Income is a non-GAAP financial measure calculated by adjusting our net income (loss), for the impact of our election of the fair value option, and further adjusted to exclude income tax expense (benefit), stock-based compensation expense, and certain non-recurring charges
Adjusted Operating Efficiency						Adjusted Operating Efficiency is a non-GAAP financial measure calculated by dividing adjusted total operating expenses (excluding stock-based compensation expense and certain non-recurring charges) by total revenue
Adjusted Return on Equity ("ROE")						Adjusted Return on Equity is a non-GAAP financial measure calculated by dividing annualized Adjusted Net Income by average total stockholders’ equity


Aggregate Originations						Aggregate amount disbursed to borrowers and credit granted on credit cards during a specific period, including amounts originated by us or loans or accounts that were originated under a bank partnership program. Aggregate Originations exclude any fees in connection with the origination of a loan
Annualized Net Charge-Off Rate						Annualized loan and credit card principal losses (net of recoveries) divided by the Average Daily Principal Balance of owned loans and credit card receivables for the period
AOCI						Accumulated other comprehensive income (loss)
APR						Annual Percentage Rate
Asset-Backed Notes at Fair Value (or "Fair Value Notes")						All asset-backed notes issued by Oportun on or after January 1, 2018
Average Daily Debt Balance						Average of outstanding debt principal balance at the end of each calendar day during the period
Average Daily Principal Balance						Average of outstanding principal balance of owned loans and credit card receivables at the end of each calendar day during the period
Board						Oportun’s Board of Directors


Cost of Debt						Annualized interest expense divided by Average Daily Debt Balance
Customer Acquisition Cost (or "CAC")						Sales and marketing expenses, which include the costs associated with various paid marketing channels, including direct mail, digital marketing and brand marketing and the costs associated with our telesales and retail operations divided by number of loans originated and new credit cards activated to new and returning customers during a period
Emergency Hardship Deferral						Any receivable that currently has one or more payments deferred and added at the end of the loan payment schedule in connection with a local or wide-spread emergency declared by local, state or federal government
Fair Value Loans (or "Loans Receivable at Fair Value")						All loans receivable held for investment that were originated on or after January 1, 2018. Upon the adoption of ASU 2019-05 as of January 1, 2020 all loans receivable held for investment are reported in this line item for all prospective reporting periods
Fair Value Pro Forma						In order to facilitate comparisons to periods prior to January 1, 2018, certain metrics included in this document have been shown on a pro forma basis, or the Fair Value Pro Forma, as if we had elected the fair value option since our inception for all loans originated and held for investment and all asset-backed notes issued

Fair Value Notes (or "Asset-Backed Notes at Fair Value")						All asset-backed notes issued by Oportun on or after January 1, 2018
FICO® score or FICO®						A credit score created by Fair Isaac Corporation

GAAP						Generally Accepted Accounting Principles

Leverage						Average Daily Debt Balance divided by Average Daily Principal Balance

Loans Receivable at Fair Value (or "Fair Value Loans")						All loans receivable held for investment that were originated on or after January 1, 2018. Upon the adoption of ASU 2019-05 as of January 1, 2020 all loans receivable held for investment are reported in this line item for all prospective reporting periods
Managed Principal Balance at End of Period						Total amount of outstanding principal balance for all loans and credit card receivables, including loans and receivables sold, which we continue to service, at the end of the period
Net Revenue						Net Revenue is calculated by subtracting interest expense from total revenue and adding the net increase (decrease) in fair value
Operating Efficiency						Total operating expenses divided by total revenue
Owned Principal Balance at End of Period						Total amount of outstanding principal balance for all loans and credit card receivables, excluding loans and receivables sold or loans retained by a bank partner, at the end of the period


Term or Abbreviation						Definition
Personal Loan Warehouse (or "PLW")						Revolving personal loan warehouse debt facility, collateralized by unsecured personal loans and secured personal loans that replaced VFN facility. Included as "Secured Financing"
Portfolio Yield						Annualized interest income as a percentage of Average Daily Principal Balance
Principal Balance						Original principal balance reduced by principal payments received and principal charge-offs to date for our personal loans. Purchases and cash advances, reduced by returns and principal payments received and principal charge-offs to date for our credit cards
Return on Equity						Annualized net income divided by average stockholders' equity for a period


Secured Financing						Asset-backed revolving debt facilities. The VFN facility, collateralized by unsecured personal loans, terminated September 8, 2021 and replaced with the PLW facility collateralized by unsecured personal loans and secured personal loans
Variable Funding Note Warehouse (or "VFN")						Asset-backed revolving debt facility, collateralized by unsecured personal loans, terminated on September 8, 2021. Formerly defined solely as "Secured Financing"
VIEs						Variable interest entities
Weighted Average Interest Rate						Annualized interest expense as a percentage of average debt


	September 30,		December 31,
	2021		2020
Assets
Cash and cash equivalents	$	168,407	$	136,187
Restricted cash	55,348		32,403
Loans receivable at fair value	1,971,375		1,696,526






Interest and fees receivable, net	16,292		15,426
Right of use assets - operating	34,952		46,820

Other assets	101,507		81,689
Total assets	$	2,347,881	$	2,009,051

Liabilities and stockholders' equity
Liabilities
Secured financing	$	525,471	$	246,385
Asset-backed notes at fair value	1,162,948		1,167,309


Lease liabilities	43,498		49,684

Other liabilities	104,545		79,306
Total liabilities	1,836,462		1,542,684
Stockholders' equity


Common stock, $0.0001 par value - 1,000,000,000 shares authorized at September 30, 2021 and December 31, 2020; 28,656,945 shares issued and 28,384,922 shares outstanding at September 30, 2021; 27,951,286 shares issued and 27,679,263 shares outstanding at December 31, 2020	6		6
Common stock, additional paid-in capital	448,214		436,499

Accumulated other comprehensive loss	(172)		(261)
Retained earnings	69,680		36,432
Treasury stock at cost, 272,023 shares at September 30, 2021 and December 31, 2020	(6,309)		(6,309)
Total stockholders’ equity	511,419		466,367
Total liabilities and stockholders' equity	$	2,347,881	$	2,009,051


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Revenue
Interest income	$	145,444	$	128,739	$	401,224	$	415,525
Non-interest income	13,640		8,028		31,427		27,377
Total revenue	159,084		136,767		432,651		442,902
Less:
Interest expense	10,574		13,408		36,241		44,879

Net decrease in fair value	(8,987)		(29,633)		(26,457)		(177,584)
Net revenue	139,523		93,726		369,953		220,439

Operating expenses:
Technology and facilities	34,226		31,641		100,274		93,927
Sales and marketing	32,102		20,634		79,743		65,521
Personnel	29,039		26,662		84,412		79,925
Outsourcing and professional fees	13,348		11,491		40,762		36,232
General, administrative and other	2,686		11,138		22,862		17,591
Total operating expenses	111,401		101,566		328,053		293,196

Income (loss) before taxes	28,122		(7,840)		41,900		(72,757)
Income tax expense (benefit)	5,143		(1,794)		8,652		(19,162)
Net income (loss)	$	22,979	$	(6,046)	$	33,248	$	(53,595)
Change in post-termination benefit obligation	77		6		89		(106)
Total comprehensive income (loss)	$	23,056	$	(6,040)	$	33,337	$	(53,701)

Net income (loss) attributable to common stockholders	$	22,979	$	(6,046)	$	33,248	$	(53,595)

Share data:
Earnings (loss) per share:
Basic	$	0.82	$	(0.22)	$	1.19	$	(1.97)
Diluted	$	0.75	$	(0.22)	$	1.11	$	(1.97)
Weighted average common shares outstanding:
Basic	28,167,686		27,459,192		27,982,273		27,237,246
Diluted	30,503,773		27,459,192		30,059,675		27,237,246


For the Nine Months Ended September 30, 2021
	Common Stock Warrants	Common Stock
		Shares	Par Value		Shares	Par Value		Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Treasury Stock		Total Stockholders' Equity
Balance – January 1, 2021		—	$	—	27,679,263	$	6	$	436,499	$	(261)	$	36,432	$	(6,309)	$	466,367
Issuance of common stock upon exercise of stock options		—	—		33,526	—		307		—		—		—		307



Stock-based compensation expense		—	—		—	—		5,088		—		—		—		5,088



Vesting of restricted stock units, net		—	—		261,794	—		(2,794)		—		—		—		(2,794)


Change in post-termination benefit obligation		—	—		—	—		—		6		—		—		6


Net income		—	—		—	—		—		—		3,019		—		3,019
Balance – March 31, 2021		—	$	—	27,974,583	$	6	$	439,100	$	(255)	$	39,451	$	(6,309)	$	471,993

Issuance of common stock upon exercise of stock options		—	—		10,114	—		159		—		—		—		159



Stock-based compensation expense		—	—		—	—		5,366		—		—		—		5,366



Vesting of restricted stock units, net		—	—		49,227	—		(442)		—		—		—		(442)


Change in post-termination benefit obligation		—	—		—	—		—		6		—		—		6


Net income		—	—		—	—		—		—		7,250		—		7,250
Balance – June 30, 2021		—	$	—	28,033,924	$	6	$	444,183	$	(249)	$	46,701	$	(6,309)	$	484,332

Issuance of common stock upon exercise of stock options		—	—		139,096	—		2,140		$	—	—		—		2,140



Stock-based compensation expense		—	—		—	—		4,868		—		—		—		4,868



Vesting of restricted stock units, net		—	—		211,902	—		(2,977)		—		—		—		(2,977)


Change in post-termination benefit obligation		—	—		—	—		—		77		—		—		77


Net income		—	—		—	—		—		—		22,979		—		22,979
Balance – September 30, 2021		—	$	—	28,384,922	$	6	$	448,214	$	(172)	$	69,680	$	(6,309)	$	511,419


For the Nine Months Ended September 30, 2020
	Convertible Preferred and Common Stock Warrants	Common Stock
		Shares	Par Value		Shares	Par Value		Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Treasury Stock		Total Stockholders' Equity
Balance – January 1, 2020		23,512	$	63	27,003,157	$	6	$	418,299	$	(162)	$	76,679	$	(6,119)	$	488,766
Issuance of common stock upon exercise of stock options		—	—		3,161	—		20		—		—		—		20



Stock-based compensation expense		—	—		—	—		4,151		—		—		—		4,151



Vesting of restricted stock units, net		—	—		137,479	—		(813)		—		—		—		(813)

Cumulative effect of adoption of ASU 2019-05		—	—		—	—		—		—		4,835		—		4,835
Change in post-termination benefit obligation		—	—		—	—		—		(117)		—		—		(117)


Net loss		—	—		—	—		—		—		(13,301)		—		(13,301)
Balance – March 31, 2020		23,512	$	63	27,143,797	$	6	$	421,657	$	(279)	$	68,213	$	(6,119)	$	483,541

Issuance of common stock upon exercise of stock options		—	—		22,407	—		79		—		—		—		79



Stock-based compensation expense		—	—		—	—		4,972		—		—		—		4,972


Issuance of common stock upon exercise of warrants		(23,512)	(63)		10,972	—		253		—		—		(190)		—
Vesting of restricted stock units, net		—	—		153,624	—		(17)		—		—		—		(17)


Change in post-termination benefit obligation		—	—		—	—		—		5		—		—		5


Net loss		—	—		—	—		—		—		(34,248)		—		(34,248)
Balance – June 30, 2020		—	$	—	27,330,800	$	6	$	426,944	$	(274)	$	33,965	$	(6,309)	$	454,332

Issuance of common stock upon exercise of stock options		—	—		4,018	—		24		—		—		—		24



Stock-based compensation expense		—	—		—	—		5,194		—		—		—		5,194



Vesting of restricted stock units, net		—	—		248,210	—		(489)		—		—		—		(489)


Change in post-termination benefit obligation		—	—		—	—		—		6		—		—		6


Net loss		—	—		—	—		—		—		(6,046)		—		(6,046)
Balance – September 30, 2020		—	$	—	27,583,028	$	6	$	431,673	$	(268)	$	27,919	$	(6,309)	$	453,021


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except share and per share data)	2021		2020		2021		2020
Net income (loss)	$	22,979	$	(6,046)	$	33,248	$	(53,595)


Net income (loss) attributable to common stockholders	$	22,979	$	(6,046)	$	33,248	$	(53,595)

Basic weighted-average common shares outstanding	28,167,686		27,459,192		27,982,273		27,237,246
Weighted average effect of dilutive securities:
Stock options	1,451,687		—		1,351,288		—
Restricted stock units	884,400		—		726,114		—

Diluted weighted-average common shares outstanding	30,503,773		27,459,192		30,059,675		27,237,246

Earnings (loss) per share:
Basic	$	0.82	$	(0.22)	$	1.19	$	(1.97)
Diluted	$	0.75	$	(0.22)	$	1.11	$	(1.97)


	September 30,		December 31,
(in thousands)	2021		2020
Consolidated VIE assets
Restricted cash	$	33,182	$	23,726
Loans receivable at fair value	1,886,776		1,580,061

Interest and fee receivable	15,233		14,191
Total VIE assets	1,935,191		1,617,978
Consolidated VIE liabilities
Secured financing (1)	529,002		246,994
Asset-backed notes at fair value	1,162,948		1,167,309

Total VIE liabilities	$	1,691,950	$	1,414,303


	September 30, 2021
Variable Interest Entity	Initial note amount issued (1)		Initial collateral balance (2)		Current balance (1)		Current collateral balance(2)		Weighted average interest rate(3)		Original revolving period
(in thousands)
Asset-backed notes recorded at fair value:
Oportun Issuance Trust (Series 2021-B)	$	500,000	$	512,759	$	501,743	$	523,870	2.05	%	3 years
Oportun Funding XIV, LLC (Series 2021-A)	375,000		383,632		377,120		392,332		1.79	%	2 years
Oportun Funding XIII, LLC (Series 2019-A)	279,412		294,118		284,085		300,002		3.46	%	3 years
Total asset-backed notes recorded at fair value	$	1,154,412	$	1,190,509	$	1,162,948	$	1,216,204


	December 31, 2020
Variable Interest Entity	Initial note amount issued (1)		Initial collateral balance (2)		Current balance (1)		Current collateral balance(2)		Weighted average interest rate(3)		Original revolving period
(in thousands)
Asset-backed notes recorded at fair value:
Oportun Funding XIII, LLC (Series 2019-A)	$	279,412	$	294,118	$	283,299	$	299,237	3.46	%	3 years
Oportun Funding XII, LLC (Series 2018-D)	175,002		184,213		178,182		187,570		4.50	%	3 years
Oportun Funding X, LLC (Series 2018-C)	275,000		289,474		279,171		294,710		4.39	%	3 years
Oportun Funding IX, LLC (Series 2018-B)	225,001		236,854		226,653		241,237		4.18	%	3 years
Oportun Funding VIII, LLC (Series 2018-A)	200,004		222,229		200,004		226,242		3.83	%	3 years
Total asset-backed notes recorded at fair value	$	1,154,419	$	1,226,888	$	1,167,309	$	1,248,996


	September 30, 2021			December 31, 2020
	Minimum	Maximum	Weighted Average (2)	Minimum	Maximum	Weighted Average
Remaining cumulative charge-offs (1)	5.70%	66.03%	7.53%	7.83%	61.26%	10.03%
Remaining cumulative prepayments (1)	—	53.64%	40.30%	—	38.92%	31.11%
Average life (years)	0.15	1.28	0.76	0.17	1.29	0.80
Discount rate	—	—	6.52%	—	—	6.85%


1.			Organization and Description of Business


2.			Summary of Significant Accounting Policies


5.			Loans Held for Sale


	September 30,		December 31,
(in thousands)	2021		2020
Fixed assets
Computer and office equipment	$	12,612	$	11,182
Furniture and fixtures	8,549		11,072
Purchased software	2,046		1,992

Leasehold improvements	20,221		29,543
Total cost	43,428		53,789
Less: Accumulated depreciation	(33,736)		(37,939)
Total fixed assets, net	$	9,692	$	15,850

System development costs:
System development costs	$	75,821	$	55,943
Less: Accumulated amortization	(40,256)		(28,524)
Total system development costs, net	$	35,565	$	27,419


Loans held for sale	2,602		1,158
Prepaid expenses	17,962		17,241
Deferred tax assets	2,018		1,716
Tax assets and other	33,668		18,305
Total other assets	$	101,507	$	81,689


	September 30, 2021
	Carrying value		Estimated fair value		Estimated fair value
(in thousands)					Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	168,407	$	168,407	$	168,407	$	—	$	—
Restricted cash	55,348		55,348		55,348		—		—

Loans held for sale (Note 5)	2,602		2,602		—		—		2,602
Liabilities
Accounts payable	5,451		5,451		5,451		—		—
Secured financing (Note 7)	529,002		528,458		—		528,458		—


(in thousands)	Operating Leases
Lease expense
2021 (remaining three months)	$	3,491
2022	13,576
2023	11,872
2024	9,761
2025	7,786
2026	1,881
Thereafter	324
Total lease payments	48,691
Imputed interest	(3,885)
Total leases	$	44,806

Sublease income
2021 (remaining three months)	$	(435)
2022	(896)




2023 and thereafter	—
Total lease payments	(1,331)
Imputed interest	23
Total sublease income	$	(1,308)

Net lease liabilities	$	43,498
Weighted average remaining lease term	3.9 years
Weighted average discount rate	4.11		%


Topic
Forward-Looking Statements						22
Overview						23

Key Financial and Operating Metrics						24
Historical Credit Performance						26
Results of Operations						28
Fair Value Estimate Methodology for Loans Receivable at Fair Value						34
Non-GAAP Financial Measures						35
Liquidity and Capital Resources						40
Off-Balance Sheet Arrangements						43
Critical Accounting Policies and Significant Judgments and Estimates						43
Recently Issued Accounting Pronouncements						43


	As of or for the Three Months Ended September 30,						As of or for the Nine Months Ended September 30,
(in thousands of dollars, except CAC)	2021			2020			2021			2020
Key Financial and Operating Metrics
Aggregate Originations	$	662,105		$	302,397		$	1,430,383		$	892,798
Active Customers	772,361			624,205			772,361			624,205
Customer Acquisition Cost	$	152		$	207		$	166		$	223
Managed Principal Balance at End of Period	$	2,147,856		$	1,835,764		$	2,147,856		$	1,835,764


30+ Day Delinquency Rate	2.8		%	3.5		%	2.8		%	3.5		%
Annualized Net Charge-Off Rate	5.5		%	10.4		%	6.8		%	10.0		%
Operating Efficiency	70.0		%	74.3		%	75.8		%	66.2		%
Adjusted Operating Efficiency	67.1		%	63.3		%	68.7		%	60.1		%
Return on Equity	18.3		%	(5.3)		%	9.1		%	(15.2)		%
Adjusted Return on Equity	19.0		%	3.7		%	14.4		%	(9.0)		%


Other Useful Metrics
Number of Loans Originated	210,731			97,826			479,183			289,169
Average Daily Principal Balance	$	1,741,358		$	1,598,141		$	1,654,582		$	1,731,748
Owned Principal Balance at End of Period	$	1,862,143		$	1,571,980		$	1,862,143		$	1,571,980


	Year of Origination
	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
Net lifetime loan losses as of September 30, 2021 as a percentage of original principal balance	7.7%	8.9%	5.5%	6.4%	6.2%	5.6%	5.6%	6.1%	7.1%	8.0%	8.2%	10.0%*	9.4%*	2.8%*
Outstanding principal balance as of September 30, 2021 as a percentage of original amount disbursed	—%	—%	—%	—%	—%	—%	—%	—%	—%	—%	0.1%	2.9%	21.2%	63.6%
Dollar weighted average original term for vintage in months	9.3	9.9	10.2	11.7	12.3	14.5	16.4	19.1	22.3	24.2	26.3	29.0	30.0	32.0


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands of dollars)	2021		2020		2021		2020
Revenue
Interest income	$	145,444	$	128,739	$	401,224	$	415,525
Non-interest income	13,640		8,028		31,427		27,377
Total revenue	159,084		136,767		432,651		442,902
Less:
Interest expense	10,574		13,408		36,241		44,879

Total net decrease in fair value	(8,987)		(29,633)		(26,457)		(177,584)
Net revenue	139,523		93,726		369,953		220,439
Operating expenses:
Technology and facilities	34,226		31,641		100,274		93,927
Sales and marketing	32,102		20,634		79,743		65,521
Personnel	29,039		26,662		84,412		79,925
Outsourcing and professional fees	13,348		11,491		40,762		36,232
General, administrative and other	2,686		11,138		22,862		17,591
Total operating expenses	111,401		101,566		328,053		293,196
Income before taxes	28,122		(7,840)		41,900		(72,757)
Income tax expense (benefit)	5,143		(1,794)		8,652		(19,162)
Net income (loss)	$	22,979	$	(6,046)	$	33,248	$	(53,595)


	Three Months Ended September 30,						Period-to-period Change				Nine Months Ended September 30,						Period-to-period Change
(in thousands, except percentages)	2021			2020			$		%		2021			2020			$		%
Revenue
Interest income	$	145,444		$	128,739		$	16,705	13.0	%	$	401,224		$	415,525		$	(14,301)	(3.4)	%
Non-interest income	13,640			8,028			5,612		69.9	%	31,427			27,377			4,050		14.8	%
Total revenue	$	159,084		$	136,767		$	22,317	16.3	%	$	432,651		$	442,902		$	(10,251)	(2.3)	%
Percentage of total revenue:
Interest income	91.4		%	94.1		%					92.7		%	93.8		%
Non-interest income	8.6		%	5.9		%					7.3		%	6.2		%
Total revenue	100.0		%	100.0		%					100.0		%	100.0		%


	Three Months Ended
	Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020
Weighted average portfolio yield over the remaining life of the loans	30.35	%	30.28	%	30.25	%	30.17	%	30.50	%	30.78	%	30.74	%
Less: Servicing fee	(5.00)	%	(5.00)	%	(5.00)	%	(5.00)	%	(5.00)	%	(5.00)	%	(5.00)	%
Net portfolio yield	25.35	%	25.28	%	25.25	%	25.17	%	25.50	%	25.78	%	25.74	%
Multiplied by: Weighted average life in years	0.761		0.769		0.778		0.796		0.775		0.797		0.903
Pre-loss cash flow	19.26	%	19.43	%	19.64	%	20.03	%	19.75	%	20.54	%	23.25	%
Less: Remaining cumulative charge-offs	(7.53)	%	(7.59)	%	(8.60)	%	(10.03)	%	(10.61)	%	(12.73)	%	(14.56)	%
Net cash flow	11.73	%	11.84	%	11.04	%	10.00	%	9.14	%	7.81	%	8.69	%
Less: Discount rate multiplied by average life	(4.96)	%	(5.03)	%	(5.17)	%	(5.45)	%	(6.07)	%	(7.04)	%	(11.54)	%
Gross fair value premium (discount) as a percentage of loan principal balance	6.77	%	6.81	%	5.87	%	4.55	%	3.07	%	0.77	%	(2.85)	%
Less: Accrued interest and fees as a percentage of loan principal balance	(0.90)	%	(0.87)	%	(0.92)	%	(1.06)	%	(1.15)	%	(1.35)	%	(1.11)	%
Fair value premium (discount) as a percentage of loan principal balance	5.87	%	5.94	%	4.95	%	3.49	%	1.92	%	(0.58)	%	(3.96)	%
Discount Rate	6.52	%	6.54	%	6.65	%	6.85	%	7.84	%	8.84	%	12.78	%


	Three Months Ended September 30, 2021 (1)		Three Months Ended September 30, 2020			Period-to-period Change in FVPF (1)
(in thousands)	As Reported			As Reported		FV Adjustments		FV Pro Forma		$		%
Revenue:
Interest income	$	145,444		$	128,739	$	—	$	128,739	$	16,705	13.0	%
Non-interest income	13,640			8,028		—		8,028		5,612		69.9	%
Total revenue	159,084			136,767		—		136,767		22,317		16.3	%
Less:
Interest expense	10,574			13,408		(207)		13,201		(2,627)		(19.9)	%

Net decrease in fair value	(8,987)			(29,633)		(1,579)		(31,212)		22,225		(71.2)	%
Net revenue	139,523			93,726		(1,372)		92,354		47,169		51.1	%
Operating expenses:
Technology and facilities	34,226			31,641		—		31,641		2,585		8.2	%
Sales and marketing	32,102			20,634		—		20,634		11,468		55.6	%
Personnel	29,039			26,662		—		26,662		2,377		8.9	%
Outsourcing and professional fees	13,348			11,491		—		11,491		1,857		16.2	%
General, administrative and other	2,686			11,138		—		11,138		(8,452)		(75.9)	%
Total operating expenses	111,401			101,566		—		101,566		9,835		9.7	%
Income (loss) before taxes	28,122			(7,840)		(1,372)		(9,212)		37,334		405.3	%
Income tax expense (benefit)	5,143			(1,794)		(375)		(2,169)		7,312		337.1	%
Net income (loss)	$	22,979		$	(6,046)	$	(997)	$	(7,043)	$	30,022	426.3	%


	Nine Months Ended September 30, 2021 (1)		Nine Months Ended September 30, 2020			Period-to-period Change in FVPF (1)
(in thousands)	As Reported			As Reported		FV Adjustments		FV Pro Forma		$		%
Revenue:
Interest income	$	401,224		$	415,525	$	—	$	415,525	$	(14,301)	(3.4)	%
Non-interest income	31,427			27,377		—		27,377		4,050		14.8	%
Total revenue	432,651			442,902		—		442,902		(10,251)		(2.3)	%
Less:
Interest expense	36,241			44,879		(889)		43,990		(7,749)		(17.6)	%

Net decrease in fair value	(26,457)			(177,584)		667		(176,917)		150,460		85.0	%
Net revenue	369,953			220,439		1,556		221,995		147,958		66.6	%
Operating expenses:
Technology and facilities	100,274			93,927		—		93,927		6,347		6.8	%
Sales and marketing	79,743			65,521		—		65,521		14,222		21.7	%
Personnel	84,412			79,925		—		79,925		4,487		5.6	%
Outsourcing and professional fees	40,762			36,232		—		36,232		4,530		12.5	%
General, administrative and other	22,862			17,591		—		17,591		5,271		30.0	%
Total operating expenses	328,053			293,196		—		293,196		34,857		11.9	%
Income (loss) before taxes	41,900			(72,757)		1,556		(71,201)		113,101		158.8	%
Income tax expense (benefit)	8,652			(19,162)		682		(18,480)		27,132		146.8	%
Net income (loss)	$	33,248		$	(53,595)	$	874	$	(52,721)	$	85,969	163.1	%


	September 30, 2021 (1)		December 31, 2020			Period-to-period Change in FVPF (1)
(in thousands)	As Reported			As Reported		FV Adjustments		FV Pro Forma		$		%
Cash and cash equivalents	$	168,407		$	136,187	$	—	$	136,187	$	32,220	23.7	%
Restricted cash	55,348			32,403		—		32,403		22,945		70.8	%
Loans receivable (1)	1,971,375			1,696,526		—		1,696,526		274,849		16.2	%
Other assets	152,751			143,935		—		143,935		8,816		6.1	%
Total assets	2,347,881			2,009,051		—		2,009,051		338,830		16.9	%
Total debt (2)	1,688,419			1,413,694		—		1,413,694		274,725		19.4	%
Other liabilities	148,043			128,990		682		129,672		18,371		14.2	%
Total liabilities	1,836,462			1,542,684		682		1,543,366		293,096		19.0	%
Total stockholder's equity	511,419			466,367		(682)		465,685		45,734		9.8	%
Total liabilities and stockholders' equity	$	2,347,881		$	2,009,051	$	—	$	2,009,051	$	338,830	16.9	%


Components of Fair Value Mark-to-Market Adjustment (in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Fair value mark-to-market adjustment on Fair Value Loans	$	12,962	$	39,828	$	52,333	$	(52,242)
Fair value mark-to-market adjustment on asset-backed notes	700		(29,094)		4,237		4,425
Fair value mark-to-market adjustment on derivatives	935		—		$	639	—
Total fair value mark-to-market adjustment	$	14,597	$	10,734	$	57,209	$	(47,817)


	Three Months Ended September 30,				Nine Months Ended September 30,
Adjusted EBITDA (in thousands)	2021		2020		2021		2020
Net income (loss)	$	22,979	$	(6,046)	$	33,248	$	(53,595)
Adjustments:
Fair Value Pro Forma net income adjustment (1)	—		(997)		—		874
Income tax expense (benefit)	5,143		(2,169)		8,652		(18,480)
COVID-19 expenses (2)	—		1,011		—		4,052
Depreciation and amortization	5,690		5,117		16,992		14,878
Stock-based compensation expense	4,598		5,194		14,542		14,317
Litigation reserve	—		8,750		—		8,750
Retail network optimization expenses	114		—		12,787		—
Impairment (3)	—		—		3,324		—
Origination fees for Fair Value Loans, net	(5,863)		(1,296)		(9,070)		3,520
Fair value mark-to-market adjustment	(14,597)		(10,734)		(57,209)		47,817
Adjusted EBITDA (4)	$	18,064	$	(1,170)	$	23,266	$	22,133


	Three Months Ended September 30,						Nine Months Ended September 30,
Adjusted Net Income (Loss) (in thousands)	2021			2020			2021			2020
Net income (loss)	$	22,979		$	(6,046)		$	33,248		$	(53,595)
Adjustments:
Fair Value Pro Forma net income adjustment (1)	—			(997)			—			874
Income tax expense (benefit)	5,143			(2,169)			8,652			(18,480)
COVID-19 expenses (2)	—			1,011			—			4,052
Stock-based compensation expense	4,598			5,194			14,542			14,317
Litigation reserve	—			8,750			—			8,750
Retail network optimization expenses	114			—			12,787			—
Impairment (3)	—			—			3,324			—
Adjusted income (loss) before taxes	32,834			5,743			72,553			(44,082)
Normalized income tax expense (benefit)	8,997			1,570			19,880			(12,347)
Adjusted Net Income (Loss) (4)	$	23,837		$	4,173		$	52,673		$	(31,735)
Income tax rate (5)	27.4		%	27.4		%	27.4		%	28.0		%


	As of or for the Three Months Ended September 30,						As of or for the Nine Months Ended September 30,
(in thousands)	2021			2020			2021			2020
Return on Equity	18.3		%	(5.3)		%	9.1		%	(15.2)		%
Adjusted Return on Equity
Adjusted Net Income (Loss)	$	23,837		$	4,173		$	52,673		$	(31,735)
Fair Value Pro Forma average stockholders' equity (1)	$	497,876		$	453,493		$	488,893		$	471,422
Adjusted Return on Equity	19.0		%	3.7		%	14.4		%	(9.0)		%


Debt Facility	Scheduled Amortization Period Commencement Date	Interest Rate	Principal (in thousands)
Secured Financing - PLW	9/1/2024	LIBOR (minimum of 0.00%) + 2.17%	$	529,002
Asset-Backed Securitization-Series 2021-B Notes	5/1/2024	2.05%	500,000
Asset-Backed Securitization-Series 2021-A Notes	3/1/2023	1.79%	375,000
Asset-Backed Securitization-Series 2019-A Notes	8/1/2022	3.46%	279,412
			$	1,683,414


			OPORTUN FINANCIAL CORPORATION
			(Registrant)

Date:	November 4, 2021	By:	/s/ Jonathan Coblentz
			Jonathan Coblentz
			Chief Financial Officer and Chief Administrative Officer
			(Principal Financial and Accounting Officer and duly authorized signatory of the Registrant)