Oportun Financial Corp 10-Q for FY2023 Q2

Oportun Financial Corp (OPRT)

10-Q 2023-08-09 For: 2023-06-30

Added on April 07, 2026

About this 10-Q

Oportun Financial Corp filed this 10-Q on August 9, 2023, covering the quarter ended June 30, 2023 (FY2023 Q2).

Headline figures

Quarter ended June 30, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $266.56M; up 18.1% from $225.8M a year earlier
Net loss: $14.9M; compared with a net loss of $9.16M a year earlier
Diluted EPS: -$0.41; compared with -$0.28 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

PART I ‑ FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Operations	4
	Condensed Consolidated Statements of Changes in Stockholders' Equity	5
	Condensed Consolidated Statements of Cash Flow	7
	Notes to the Condensed Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	23
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	70
Item 3.	Defaults Upon Senior Securities	70
Item 4.	Mine Safety Disclosures	70
Item 5.	Other Information	70

	GLOSSARY	71

Item 6.	Exhibit Index	73

Signature		74


	June 30,		December 31,
	2023		2022
Assets
Cash and cash equivalents	$	73,371	$	98,817
Restricted cash	128,964		105,000
Loans receivable at fair value	2,985,129		3,143,653






Interest and fees receivable, net	30,852		31,796
Capitalized software and other intangibles, net	133,012		139,801

Right of use assets - operating	26,515		30,448

Other assets	94,200		64,180
Total assets	$	3,472,043	$	3,613,695

Liabilities and stockholders' equity
Liabilities
Secured financing	$	486,453	$	317,568
Asset-backed notes at fair value	2,118,786		2,387,674
Asset-backed borrowings at amortized cost	25,600		—
Acquisition and corporate financing	271,507		222,879

Lease liabilities	33,124		37,947

Other liabilities	78,175		100,028
Total liabilities	3,013,645		3,066,096
Stockholders' equity


Common stock, $0.0001 par value - 1,000,000,000 shares authorized at June 30, 2023 and December 31, 2022; 34,299,366 shares issued and 34,027,343 shares outstanding at June 30, 2023; 33,626,630 shares issued and 33,354,607 shares outstanding at December 31, 2022	7		7
Common stock, additional paid-in capital	575,587		547,799


Retained earnings (accumulated deficit)	(110,887)		6,102
Treasury stock at cost, 272,023 shares at June 30, 2023 and December 31, 2022	(6,309)		(6,309)
Total stockholders’ equity	458,398		547,599
Total liabilities and stockholders' equity	$	3,472,043	$	3,613,695


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Revenue
Interest income	$	240,463	$	207,655	$	478,082	$	399,892
Non-interest income	26,100		18,147		47,993		40,630
Total revenue	266,563		225,802		526,075		440,522
Less:
Interest expense	41,448		17,104		80,445		30,781

Net decrease in fair value	(106,490)		(63,484)		(322,200)		(59,513)
Net revenue	118,625		145,214		123,430		350,228

Operating expenses:
Technology and facilities	55,116		52,788		111,990		101,977
Sales and marketing	19,195		32,368		38,377		66,909
Personnel	30,762		38,629		68,080		74,555
Outsourcing and professional fees	9,900		17,165		23,702		31,492
General, administrative and other	21,123		16,936		40,285		30,297

Total operating expenses	136,096		157,886		282,434		305,230

Income (loss) before taxes	(17,471)		(12,672)		(159,004)		44,998
Income tax expense (benefit)	(2,572)		(3,515)		(42,015)		8,492
Net income (loss)	$	(14,899)	$	(9,157)	$	(116,989)	$	36,506

Net income (loss) attributable to common stockholders	$	(14,899)	$	(9,157)	$	(116,989)	$	36,506

Share data:
Earnings (loss) per share:
Basic	$	(0.41)	$	(0.28)	$	(3.31)	$	1.12
Diluted	$	(0.41)	$	(0.28)	$	(3.31)	$	1.10
Weighted average common shares outstanding:
Basic	36,691,291		32,831,499		35,342,663		32,525,768
Diluted	36,691,291		32,831,499		35,342,663		33,241,681


For the Six Months Ended June 30, 2023
	Common Stock		Warrants
		Shares	Par Value		Additional Paid-in Capital		Shares		Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Treasury Stock		Total Stockholders' Equity
Balance – January 1, 2023		33,354,607	$	7	$	547,799	$	—	$	—	$	6,102	$	(6,309)	$	547,599




Stock-based compensation expense		—	—		5,329		—		—		—		—		5,329



Vesting of restricted stock units, net of shares withheld		529,739	—		(1,364)		—		—		—		—		(1,364)



Issuance of warrants to purchase common stock in connection with debt financing		—	—		—		2,096,727		6,672		—		—		6,672
Net loss		—	—		—		—		—		(102,090)		—		(102,090)
Balance – March 31, 2023		33,884,346	$	7	$	551,764	2,096,727		$	6,672	$	(95,988)	$	(6,309)	$	456,146

Issuance of common stock upon exercise of stock options, net of shares withheld		26,458	—		(95)		—		—		—		—		(95)



Stock-based compensation expense		—	—		4,754		—		—		—		—		4,754



Vesting of restricted stock units, net of shares withheld		116,539	—		(267)		—		—		—		—		(267)




Issuance of warrants to purchase common stock in connection with debt financing		—	—		—		2,096,726		12,759		—		—		12,759
Net loss		—	—		—		—		—		(14,899)		—		(14,899)
Balance – June 30, 2023		34,027,343	$	7	$	556,156	4,193,453		$	19,431	$	(110,887)	$	(6,309)	$	458,398


For the Six Months Ended June 30, 2022
	Common Stock
		Shares	Par Value		Additional Paid-in Capital		Retained Earnings		Treasury Stock		Total Stockholders' Equity
Balance – January 1, 2022		32,004,396	$	6	$	526,338	$	83,846	$	(6,309)	$	603,881
Issuance of common stock upon exercise of stock options		505,945	1		(4,749)		—		—		(4,748)



Stock-based compensation expense		—	—		7,467		—		—		7,467



Vesting of restricted stock units, net of shares withheld		296,552	—		(2,327)		—		—		(2,327)





Net income		—	—		—		45,663		—		45,663
Balance – March 31, 2022		32,806,893	$	7	$	526,729	$	129,509	$	(6,309)	$	649,936

Issuance of common stock upon exercise of stock options		32,345	—		78		—		—		78
Repurchase of stock options		(2,706)	—		(28)		—		—		(28)


Stock-based compensation expense		—	—		7,642		—		—		7,642



Vesting of restricted stock units, net of shares withheld		63,064	—		(273)		—		—		(273)





Net loss		—	—		—		(9,157)		—		(9,157)
Balance – June 30, 2022		32,899,596	$	7	$	534,148	$	120,352	$	(6,309)	$	648,198


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except share and per share data)	2023		2022		2023		2022
Net income (loss)	$	(14,899)	$	(9,157)	$	(116,989)	$	36,506


Net income (loss) attributable to common stockholders	$	(14,899)	$	(9,157)	$	(116,989)	$	36,506

Basic weighted-average common shares outstanding	36,691,291		32,831,499		35,342,663		32,525,768
Weighted average effect of dilutive securities:
Stock options	—		—		—		453,695
Restricted stock units	—		—		—		262,218

Diluted weighted-average common shares outstanding	36,691,291		32,831,499		35,342,663		33,241,681

Earnings (loss) per share:
Basic	$	(0.41)	$	(0.28)	$	(3.31)	$	1.12
Diluted	$	(0.41)	$	(0.28)	$	(3.31)	$	1.10


	June 30,		December 31,
(in thousands)	2023		2022
Consolidated VIE assets
Restricted cash	$	112,106	$	91,395
Loans receivable at fair value	2,900,345		3,081,557

Interest and fee receivable	29,488		30,443
Total VIE assets	3,041,939		3,203,395
Consolidated VIE liabilities
Secured financing (1)	488,160		320,000
Asset-backed notes at fair value	2,118,786		2,387,674
Acquisition financing (1)	75,484		85,679
Total VIE liabilities	$	2,682,430	$	2,793,353


(in thousands)	Fiscal Years
2023 (remaining six months)	$	3,860
2024	7,539
2025	4,929
2026	4,929
2027	4,929
2028	4,780
Thereafter	—
Total	$	30,966


					June 30, 2023		December 31, 2022
Variable Interest Entity	Facility Amount		Maturity Date	Interest Rate	Balance		Balance
(in thousands)
Oportun CCW Trust (1)	$	120,000	December 1, 2024	Variable (2)	$	73,556	$	76,574
Oportun PLW Trust	600,000		September 1, 2024	SOFR (minimum of 0.10%) + 2.17%	412,897		240,994
Total secured financing	$	720,000			$	486,453	$	317,568


	June 30, 2023
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 (4)
(in thousands)
Asset-backed notes recorded at fair value:
Oportun Issuance Trust (Series 2022-3)	$	300,000	$	310,993	$	211,046	$	235,480	8.79	%	N/A
Oportun Issuance Trust (Series 2022-2)	400,000		410,212		217,410		243,818		7.52	%	N/A
Oportun Issuance Trust (Series 2022-A)	400,000		410,211		384,237		415,155		5.44	%	2 years
Oportun Issuance Trust (Series 2021-C)	500,000		512,762		448,152		519,859		2.48	%	3 years
Oportun Issuance Trust (Series 2021-B)	500,000		512,759		452,363		519,228		2.05	%	3 years
Oportun Funding XIV, LLC (Series 2021-A)	375,000		383,632		291,499		318,191		1.79	%	2 years
Oportun Funding XIII, LLC (Series 2019-A)	279,412		294,118		114,079		132,600		3.46	%	3 years
Total asset-backed notes recorded at fair value	$	2,754,412	$	2,834,687	$	2,118,786	$	2,384,331


					June 30, 2023		December 31, 2022
Entity	Original Balance		Maturity Date	Interest Rate	Balance		Balance
(in thousands)
Oportun Financial Corporation (1)	$	150,000	September 14, 2026	SOFR (minimum of 0.00% + 12.00%	$	199,442	$	141,957
Oportun RF, LLC (2)	116,000		October 1, 2024	SOFR (minimum of 0.00%) + 11.00%	72,065		80,922
Total acquisition and corporate financing	$	266,000			$	271,507	$	222,879


	June 30, 2023			December 31, 2022
Personal Loans Receivables	Minimum	Maximum	Weighted Average (2)	Minimum	Maximum	Weighted Average (2)
Remaining cumulative charge-offs (1)	7.64%	52.48%	11.03%	5.06%	51.45%	9.86%
Remaining cumulative prepayments (1)	—%	31.55%	26.87%	—%	33.59%	28.73%

Average life (years)	0.05	1.44	0.96	0.05	1.52	1.01
Discount rate	11.10%	11.10%	11.10%	11.34%	11.34%	11.34%


	Six Months Ended June 30,
	2023		2022
Cash flows from operating activities
Net income (loss)	$	(116,989)	$	36,506
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	27,158		22,340

Fair value adjustment, net	322,200		59,513
Origination fees for loans receivable at fair value, net	(16,981)		(11,351)
Gain on loan sales	(3,693)		(5,714)
Stock-based compensation expense	9,347		13,702


Other, net	(29,910)		20,732
Originations of loans sold and held for sale	(25,678)		(48,972)
Proceeds from sale of loans	29,096		55,064
Changes in other assets and other liabilities	(15,193)		(50,178)




Net cash provided by operating activities	179,357		91,642
Cash flows from investing activities
Originations of loans	(780,912)		(1,560,495)
Proceeds from loan sales originated as held for investment	1,653		247,230
Repayments of loan principal	694,963		700,968
Capitalization of system development costs	(18,731)		(23,580)


Other, net	(994)		(2,147)

Net cash used in investing activities	(104,021)		(638,024)
Cash flows from financing activities
Borrowings under secured financing	171,300		1,331,000

Repayments of secured financing	(3,140)		(1,220,000)
Borrowings under asset-backed notes at fair value	—		404,984
Repayments of asset-backed notes at fair value	(330,406)		(21,093)
Borrowings under asset-backed borrowings at amortized cost	25,544		—


1.			Organization and Description of Business


2.			Summary of Significant Accounting Policies


	June 30,		December 31,
(in thousands)	2023		2022
Capitalized software, net:
System development costs	$	153,584	$	135,303
Acquired developed technology	48,500		48,500
Less: Accumulated amortization	(100,402)		(79,679)
Total capitalized software, net	$	101,682	$	104,124


	June 30, 2023	December 31, 2022
Credit Card Receivables	Range	Range
Remaining cumulative charge-offs (1)	19.54%	22.80%
Principal payment rate (1)	7.90%	9.28%
Average life (years)	0.88	0.69
Discount rate	11.15%	14.84%


	June 30, 2023*
	Low	High	Weighted Average
Remaining cumulative charge-offs	3.71%	18.31%	9.11%
Remaining cumulative prepayments	—%	34.87%	23.75%
Average life (years)	0.34	1.56	1.28
Discount rate	24.00%	24.00%	24.00%


	June 30, 2023
	Carrying value		Estimated fair value		Estimated fair value
(in thousands)					Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	73,371	$	73,371	$	73,371	$	—	$	—
Restricted cash	128,964		128,964		128,964		—		—

Loans held for sale (Note 5)	325		353		—		—		353
Liabilities
Accounts payable	11,310		11,310		11,310		—		—
Secured financing (Note 8)	488,160		476,569		—		476,569		—
Asset-backed borrowings at amortized cost (Note 8)(1)	24,920		24,920		—		—		24,920
Acquisition and corporate financing (Note 8)	302,141		301,755		—		301,755		—


(in thousands)	Operating Leases
Lease expense
2023 (remaining six months)	$	6,635
2024	12,291
2025	10,364
2026	4,293
2027	1,325
2028	177
Thereafter	7
Total lease payments	35,092
Imputed interest	(1,968)
Total leases	$	33,124














Weighted average remaining lease term	3.0 years
Weighted average discount rate	4.28		%


Topic
Forward-Looking Statements						23
Overview						24

Key Financial and Operating Metrics						26
Historical Credit Performance						28
Results of Operations						30
Fair Value Estimate Methodology for Loans Receivable at Fair Value						36
Non-GAAP Financial Measures						37
Liquidity and Capital Resources						40
Critical Accounting Policies and Significant Judgments and Estimates						43
Recently Issued Accounting Pronouncements						43


	As of or for the Three Months Ended June 30,						As of or for the Six Months Ended June 30,
(in thousands of dollars)	2023			2022			2023			2022
Key Financial and Operating Metrics
Members	2,005,008			1,818,588			2,005,008			1,818,588
Products	2,155,240			1,928,261			2,155,240			1,928,261
Aggregate Originations	$	485,120		$	878,177		$	893,081		$	1,678,292


30+ Day Delinquency Rate	5.3		%	4.3		%	5.3		%	4.3		%
Annualized Net Charge-Off Rate	12.5		%	8.6		%	12.3		%	8.6		%
Return on Equity	(13.1)		%	(5.7)		%	(46.9)		%	11.8		%
Adjusted Return on Equity	2.0		%	2.3		%	(34.4)		%	18.2		%


Other Metrics


Managed Principal Balance at End of Period	$	3,253,283		$	3,243,400		$	3,253,283		$	3,243,400
Owned Principal Balance at End of Period	$	2,963,217		$	2,792,193		$	2,963,217		$	2,792,193
Average Daily Principal Balance	$	2,993,598		$	2,577,186		$	3,031,639		$	2,495,546


	Year of Origination
	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
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	33.3	37.8
Net lifetime loan losses as of June 30, 2023 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%	9.8%	10.7%	8.3%*	12.8%*	2.7%*
Outstanding principal balance as of June 30, 2023 as a percentage of original amount disbursed	—%	—%	—%	—%	—%	—%	—%	—%	—%	—%	—%	—%	0.8%	6.1%	31.3%	80.0%


	Three Months Ended June 30,						Period-to-period Change				Six Months Ended June 30,						Period-to-period Change
(in thousands, except percentages)	2023			2022			$		%		2023			2022			$		%
Revenue
Interest income	$	240,463		$	207,655		$	32,808	15.8	%	$	478,082		$	399,892		$	78,190	19.6	%
Non-interest income	26,100			18,147			7,953		43.8	%	47,993			40,630			7,363		18.1	%
Total revenue	$	266,563		$	225,802		$	40,761	18.1	%	$	526,075		$	440,522		$	85,553	19.4	%
Percentage of total revenue:
Interest income	90.2		%	92.0		%					90.9		%	90.8		%
Non-interest income	9.8		%	8.0		%					9.1		%	9.2		%
Total revenue	100.0		%	100.0		%					100.0		%	100.0		%


	Three Months Ended
	Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022
Weighted average portfolio yield over the remaining life of the loans	30.02	%	29.78	%	29.50	%	29.90	%	30.27	%
Less: Servicing fee	(5.00)	%	(5.00)	%	(5.00)	%	(5.00)	%	(5.00)	%
Net portfolio yield	25.02	%	24.78	%	24.50	%	24.90	%	25.27	%
Multiplied by: Weighted average life in years	0.955		0.963		1.000		0.924		0.895
Pre-loss cash flow	23.90	%	23.85	%	24.50	%	23.01	%	22.61	%
Less: Remaining cumulative charge-offs	(11.35)	%	(11.72)	%	(10.38)	%	(11.67)	%	(11.25)	%
Net cash flow	12.55	%	12.13	%	14.12	%	11.34	%	11.37	%
Less: Discount rate multiplied by average life	(10.61)	%	(10.66)	%	(11.48)	%	(9.42)	%	(8.03)	%
Gross fair value premium as a percentage of loan principal balance	1.94	%	1.47	%	2.64	%	1.92	%	3.34	%
Less: Accrued interest and fees as a percentage of loan principal balance	(1.20)	%	(1.22)	%	(1.18)	%	(1.19)	%	(1.10)	%
Fair value premium as a percentage of loan principal balance	0.74	%	0.26	%	1.45	%	0.73	%	2.24	%
Discount Rate	11.10	%	11.07	%	11.48	%	10.19	%	8.97	%


Components of Fair Value Mark-to-Market Adjustment (in thousands)	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Fair value mark-to-market adjustment on loans receivable at fair value (1)	$	14,186	$	(34,605)	$	(23,133)	$	(51,542)
Fair value mark-to-market adjustment on asset-backed notes	(12,623)		44,477		(61,518)		102,748
Fair value mark-to-market adjustment on derivatives	6,258		1,877		$	7,954	$	1,484
Total fair value mark-to-market adjustment	$	7,821	$	11,749	$	(76,697)	$	52,690


	Three Months Ended June 30,				Six Months Ended June 30,
Adjusted EBITDA (in thousands)	2023		2022		2023		2022
Net income (loss)	$	(14,899)	$	(9,157)	$	(116,989)	$	36,506
Adjustments:

Income tax expense (benefit)	(2,572)		(3,515)		(42,015)		8,492

Interest on corporate financing (1)	8,852		—		14,929		—
Depreciation and amortization	10,805		8,788		21,227		16,101
Stock-based compensation expense	4,385		6,929		8,884		13,702

Workforce optimization expenses	8,408		1,488		15,226		1,697

Acquisition and integration related expenses	7,198		6,944		14,178		14,231

Origination fees for loans receivable at fair value, net	(10,600)		(6,666)		(15,343)		(11,351)
Other non-recurring charges (1)	580		2,450		3,089		2,750
Fair value mark-to-market adjustment	(7,821)		(11,749)		76,697		(52,690)
Adjusted EBITDA	$	4,336	$	(4,488)	$	(20,117)	$	29,438


	Three Months Ended June 30,						Six Months Ended June 30,
Adjusted Net Income (Loss) (in thousands)	2023			2022			2023			2022
Net income (loss)	$	(14,899)		$	(9,157)		$	(116,989)		$	36,506
Adjustments:

Income tax expense (benefit)	(2,572)			(3,515)			(42,015)			8,492

Stock-based compensation expense	4,385			6,929			8,884			13,702

Workforce optimization expenses	8,407			1,488			15,226			1,697

Acquisition and integration related expenses	7,198			6,944			14,178			14,231

Other non-recurring charges (1)	580			2,450			3,089			2,750
Adjusted income (loss) before taxes	3,099			5,139			(117,627)			77,378
Normalized income tax expense	837			1,388			(31,759)			20,892
Adjusted Net Income (Loss)	$	2,262		$	3,751		$	(85,868)		$	56,486
Income tax rate (2)	27.0		%	27.0		%	27.0		%	27.0		%


	As of or for the Three Months Ended June 30,						As of or for the Six Months Ended June 30,
(in thousands)	2023			2022			2023			2022
Return on Equity	(13.1)		%	(5.7)		%	(46.9)		%	11.8		%
Adjusted Return on Equity
Adjusted Net Income (Loss)	$	2,262		$	3,751		$	(85,868)		$	56,486
Average stockholders' equity	$	457,272		$	649,067		$	502,999		$	626,040
Adjusted Return on Equity	2.0		%	2.3		%	(34.4)		%	18.2		%


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
Adjusted EBITDA						Adjusted EBITDA is a non-GAAP financial measure calculated as net income (loss), adjusted to eliminate the effect of the following items: income tax expense (benefit), stock-based compensation expense, depreciation and amortization, interest expense from corporate financing, certain non-recurring charges, origination fees for Loans Receivable at Fair Value, net and fair value mark-to-market adjustments
Acquisition Financing						Asset-backed floating rate variable funding note and asset-backed residual certificate secured by certain residual cash flows of the Company's securitizations. The Acquisition Financing was used to fund the cash consideration for the Digit acquisition. Included as "Acquisition and corporate financing" on the Consolidated Balance Sheets
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) 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 specified period, including amounts originated by us through our Lending as a Service partners or under our bank partnership programs. 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
APR						Annual Percentage Rate
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
Corporate Financing						Senior secured term loan secured by the assets of the Company and certain of its subsidiaries guaranteeing the term loan, including pledges of the equity interests of certain subsidiaries that are directly or indirectly owned by the Company. Included as "Acquisition and corporate financing" on the Consolidated Balance Sheets
Cost of Debt						Annualized interest expense divided by Average Daily Debt Balance
Credit Card Warehouse (or "CCW")						Revolving credit card warehouse debt facility, collateralized by credit card accounts. Included as "Secured Financing" on the Consolidated Balance Sheets
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 borrowers during a period


GAAP						Generally Accepted Accounting Principles
Leverage						Average Daily Debt Balance divided by Average Daily Principal Balance
Loans Receivable at Fair Value						All loans receivable held for investment. Loans Receivable at Fair Value include loans receivable on our unsecured and secured personal loan products and credit card receivable balances
Managed Principal Balance at End of Period						Total amount of outstanding principal balance for all loans and credit card receivables, including loans sold, which we continue to service, at the end of the period. Managed Principal Balance at End of Period also includes loans and accounts originated under a bank partnership program that we service
Members						Members include borrowers with an outstanding or successfully paid off loan, originated by us or under a bank partnership program that we service, or individuals who have been approved for a credit card issued under a bank partnership program. Members also include individuals who have signed-up to use or are using any of our Savings, Direct, Investing and/or Retirement products
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, including finance receivables pledged as part of a secured borrowing and excluding loans and receivables sold or loans retained by a bank partner, at the end of the period
Personal Loan Warehouse (or "PLW")						Revolving personal loan warehouse debt facility, collateralized by unsecured personal loans and secured personal loans that replaced the VFN facility. Included as "Secured Financing" on the Consolidated Balance Sheets
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


			OPORTUN FINANCIAL CORPORATION
			(Registrant)

Date:	August 9, 2023	By:	/s/ Jonathan Coblentz
			Jonathan Coblentz
			Chief Financial Officer and Chief Administrative Officer
			(Principal Financial Officer and duly authorized signatory of the Registrant)


			/s/ Raul Vazquez
			Raul Vazquez Chief Executive Officer and Director (Principal Executive Officer)


			/s/ Jonathan Coblentz
			Jonathan Coblentz Chief Financial Officer and Chief Administrative Officer (Principal Financial Officer)