Oportun Financial Corp 10-Q for FY2023 Q3

Oportun Financial Corp (OPRT)

10-Q 2023-11-09 For: 2023-09-30

Added on April 07, 2026

About this 10-Q

Oportun Financial Corp filed this 10-Q on November 9, 2023, covering the quarter ended September 30, 2023 (FY2023 Q3).

Headline figures

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

Revenue: $268.22M; up 7.3% from $250.08M a year earlier
Net loss: $21.14M; compared with a net loss of $105.83M a year earlier
Diluted EPS: -$0.55; compared with -$3.21 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	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	45
Item 4.	Controls and Procedures	45

PART II ‑ OTHER INFORMATION
Item 1.	Legal Proceedings	46
Item 1A.	Risk Factors	46
Item 2.	Unregistered Sales of Equity Securities , Use of Proceeds , and Issuer P urchases of Equity Securities	71
Item 3.	Defaults Upon Senior Securities	71
Item 4.	Mine Safety Disclosures	71
Item 5.	Other Information	71

	GLOSSARY	72

Item 6.	Exhibit Index	74

Signature		75


	September 30,		December 31,
	2023		2022
Assets
Cash and cash equivalents	$	81,886	$	98,817
Restricted cash	117,759		105,000
Loans receivable at fair value	2,940,858		3,143,653






Interest and fees receivable, net	29,021		31,796
Capitalized software and other intangibles, net	127,293		139,801

Right of use assets - operating	23,186		30,448

Other assets	109,929		64,180
Total assets	$	3,429,932	$	3,613,695

Liabilities and stockholders' equity
Liabilities
Secured financing	$	423,166	$	317,568
Asset-backed notes at fair value	1,958,273		2,387,674
Asset-backed borrowings at amortized cost	244,421		—
Acquisition and corporate financing	268,103		222,879

Lease liabilities	30,895		37,947

Other liabilities	63,711		100,028
Total liabilities	2,988,569		3,066,096
Stockholders' equity


Common stock, $0.0001 par value - 1,000,000,000 shares authorized at September 30, 2023 and December 31, 2022; 34,502,195 shares issued and 34,230,172 shares outstanding at September 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	579,690		547,799


Retained earnings (accumulated deficit)	(132,025)		6,102
Treasury stock at cost, 272,023 shares at September 30, 2023 and December 31, 2022	(6,309)		(6,309)
Total stockholders’ equity	441,363		547,599
Total liabilities and stockholders' equity	$	3,429,932	$	3,613,695


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Revenue
Interest income	$	243,258	$	232,115	$	721,340	$	632,007
Non-interest income	24,962		17,961		72,955		58,591
Total revenue	268,220		250,076		794,295		690,598
Less:
Interest expense	46,965		26,671		127,410		57,452

Net decrease in fair value	(136,119)		(76,422)		(458,319)		(135,935)
Net revenue	85,136		146,983		208,566		497,211

Operating expenses:
Technology and facilities	52,663		56,113		164,653		158,090
Sales and marketing	18,852		21,781		57,229		88,690
Personnel	28,647		39,959		96,727		114,514
Outsourcing and professional fees	10,482		18,620		34,184		50,112
General, administrative and other	11,862		14,401		52,147		44,698
Goodwill impairment	—		108,472		—		108,472
Total operating expenses	122,506		259,346		404,940		564,576

Income (loss) before taxes	(37,370)		(112,363)		(196,374)		(67,365)
Income tax expense (benefit)	(16,232)		(6,536)		(58,247)		1,956
Net loss	$	(21,138)	$	(105,827)	$	(138,127)	$	(69,321)

Net income (loss) attributable to common stockholders	$	(21,138)	$	(105,827)	$	(138,127)	$	(69,321)

Share data:
Earnings (loss) per share:
Basic	$	(0.55)	$	(3.21)	$	(3.80)	$	(2.12)
Diluted	$	(0.55)	$	(3.21)	$	(3.80)	$	(2.12)
Weighted average common shares outstanding:
Basic	38,283,071		33,010,107		36,333,570		32,688,988
Diluted	38,283,071		33,010,107		36,333,570		32,688,988


For the Nine Months Ended September 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

Issuance of common stock upon exercise of stock options, net of shares withheld		10,856	—		49		—		—		—		—		49



Stock-based compensation expense		—	—		4,706		—		—		—		—		4,706



Vesting of restricted stock units, net of shares withheld		191,973	—		(652)		—		—		—		—		(652)




Issuance of warrants to purchase common stock in connection with debt financing		—	—		—		—		—		—		—		—
Net loss		—	—		—		—		—		(21,138)		—		(21,138)
Balance – September 30, 2023		34,230,172	$	7	$	560,259	4,193,453		$	19,431	$	(132,025)	$	(6,309)	$	441,363


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except share and per share data)	2023		2022		2023		2022
Net loss	$	(21,138)	$	(105,827)	$	(138,127)	$	(69,321)


Net income (loss) attributable to common stockholders	$	(21,138)	$	(105,827)	$	(138,127)	$	(69,321)

Basic weighted-average common shares outstanding	38,283,071		33,010,107		36,333,570		32,688,988
Weighted average effect of dilutive securities:



Diluted weighted-average common shares outstanding	38,283,071		33,010,107		36,333,570		32,688,988

Earnings (loss) per share:
Basic	$	(0.55)	$	(3.21)	$	(3.80)	$	(2.12)
Diluted	$	(0.55)	$	(3.21)	$	(3.80)	$	(2.12)


	September 30,		December 31,
(in thousands)	2023		2022
Consolidated VIE assets
Restricted cash	$	95,539	$	91,395
Loans receivable at fair value	2,665,081		3,081,557

Interest and fee receivable	26,689		30,443
Total VIE assets	2,787,309		3,203,395
Consolidated VIE liabilities
Secured financing (1)	424,518		320,000
Asset-backed notes at fair value	1,958,273		2,387,674
Acquisition financing (1)	68,404		85,679
Total VIE liabilities	$	2,451,195	$	2,793,353


(in thousands)	Fiscal Years
2023 (remaining three months)	$	1,931
2024	7,539
2025	4,929
2026	4,929
2027	4,929
2028	4,780
Thereafter	—
Total	$	29,037


					September 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)	$	71,627	$	76,574
Oportun PLW Trust	600,000		September 1, 2024	Adjusted SOFR + 2.17%	351,539		240,994
Total secured financing	$	720,000			$	423,166	$	317,568


	September 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	$	176,078	$	198,583	9.05	%	N/A
Oportun Issuance Trust (Series 2022-2)	400,000		410,212		172,905		197,279		7.92	%	N/A
Oportun Issuance Trust (Series 2022-A)	400,000		410,211		386,100		415,426		5.59	%	2 years
Oportun Issuance Trust (Series 2021-C)	500,000		512,762		452,212		520,252		2.67	%	3 years
Oportun Issuance Trust (Series 2021-B)	500,000		512,759		456,676		519,687		2.69	%	3 years
Oportun Funding XIV, LLC (Series 2021-A)	375,000		383,632		233,667		253,638		2.56	%	2 years
Oportun Funding XIII, LLC (Series 2019-A)	279,412		294,118		80,635		97,229		3.46	%	3 years
Total asset-backed notes recorded at fair value	$	2,754,412	$	2,834,687	$	1,958,273	$	2,202,094


					September 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%	$	202,484	$	141,957
Oportun RF, LLC (2)	116,000		October 1, 2024	SOFR (minimum of 0.00%) + 11.00%	65,619		80,922
Total acquisition and corporate financings	$	266,000			$	268,103	$	222,879


	September 30, 2023			December 31, 2022
Personal Loans Receivable	Minimum	Maximum	Weighted Average (2)	Minimum	Maximum	Weighted Average (2)
Remaining cumulative charge-offs (1)	7.52%	50.89%	11.61%	5.06%	51.45%	9.86%
Remaining cumulative prepayments (1)	—%	31.71%	26.50%	—%	33.59%	28.73%

Average life (years)	0.07	1.41	0.92	0.05	1.52	1.01
Discount rate	11.15%	11.15%	11.15%	11.34%	11.34%	11.34%


	September 30, 2023	December 31, 2022
Credit Card Receivables	Range	Range
Remaining cumulative charge-offs (1)	20.05%	22.80%
Principal payment rate (1)	7.12%	9.28%
Average life (years)	0.99	0.69
Discount rate	11.15%	14.84%


	Nine Months Ended September 30,
	2023		2022
Cash flows from operating activities
Net loss	$	(138,127)	$	(69,321)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	41,102		34,624
Goodwill impairment	—		108,472
Fair value adjustment, net	458,319		135,935
Origination fees for loans receivable at fair value, net	(19,348)		(17,699)
Gain on loan sales	(6,140)		(5,708)
Stock-based compensation expense	13,709		20,752


Other, net	(41,344)		32,183
Originations of loans sold and held for sale	(41,562)		(50,643)
Proceeds from sale of loans	47,128		56,800
Changes in other assets and other liabilities	(27,283)		(86,052)




Net cash provided by operating activities	286,454		159,343
Cash flows from investing activities
Originations of loans	(1,179,886)		(2,178,675)
Proceeds from loan sales originated as held for investment	2,758		247,943
Repayments of loan principal	1,014,147		1,055,113
Capitalization of system development costs	(25,180)		(36,824)


Other, net	(1,207)		(3,434)

Net cash used in investing activities	(189,368)		(915,877)
Cash flows from financing activities
Borrowings under secured financing	185,100		1,687,050

Repayments of secured financing	(80,581)		(1,717,050)
Borrowings under asset-backed notes at fair value	—		967,761
Repayments of asset-backed notes at fair value	(505,778)		(87,253)
Borrowings under asset-backed borrowings at amortized cost	257,639		—


1.			Organization and Description of Business


2.			Summary of Significant Accounting Policies


	September 30,		December 31,
(in thousands)	2023		2022
Capitalized software, net:
System development costs	$	160,630	$	135,303
Acquired developed technology	48,500		48,500
Less: Accumulated amortization	(111,236)		(79,679)
Total capitalized software, net	$	97,894	$	104,124


	September 30, 2023*
	Low	High	Weighted Average
Remaining cumulative charge-offs	4.48%	55.56%	16.74%
Remaining cumulative prepayments	—%	67.55%	48.01%
Average life (years)	0.42	1.55	1.31
Discount rate	24.00%	24.00%	24.00%


						Range



Expected Term (years)						5.0
Risk free rate						3.41% - 4.13%

Expected Volatility						72.00% - 78.00%


	September 30, 2023
	Carrying value		Estimated fair value		Estimated fair value
(in thousands)					Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	81,886	$	81,886	$	81,886	$	—	$	—
Restricted cash	117,759		117,759		117,759		—		—

Loans held for sale (Note 5)	624		679		—		—		679
Liabilities
Accounts payable	6,485		6,485		6,485		—		—
Secured financing (Note 8)	424,518		415,343		—		415,343		—
Asset-backed borrowings at amortized cost (Note 8)(1)	240,995		240,995		—		—		240,995
Acquisition and corporate financing (Note 8)	296,849		296,741		—		296,741		—


(in thousands)	Operating Leases
Lease expense
2023 (remaining three months)	$	3,291
2024	12,586
2025	10,655
2026	4,572
2027	1,535
2028	342
Thereafter	10
Total lease payments	32,991
Imputed interest	(2,096)
Total leases	$	30,895














Weighted average remaining lease term	2.8 years
Weighted average discount rate	4.47		%


Topic
Forward-Looking Statements						24
Overview						25

Key Financial and Operating Metrics						27
Historical Credit Performance						29
Results of Operations						31
Fair Value Estimate Methodology for Loans Receivable at Fair Value						37
Non-GAAP Financial Measures						38
Liquidity and Capital Resources						41
Critical Accounting Policies and Significant Judgments and Estimates						44
Recently Issued Accounting Pronouncements						44


	As of or for the Three Months Ended September 30,						As of or for the Nine Months Ended September 30,
(in thousands of dollars)	2023			2022			2023			2022
Key Financial and Operating Metrics
Members	2,098,172			1,858,335			2,098,172			1,858,335
Products	2,259,464			1,981,310			2,259,464			1,981,310
Aggregate Originations	$	482,719		$	634,193		$	1,375,800		$	2,312,485


30+ Day Delinquency Rate	5.5		%	5.4		%	5.5		%	5.4		%
Annualized Net Charge-Off Rate	11.8		%	9.8		%	12.1		%	9.0		%
Return on Equity	(18.6)		%	(70.1)		%	(37.3)		%	(16.1)		%
Adjusted Return on Equity	(15.5)		%	5.6		%	(28.0)		%	15.0		%


Other Metrics


Managed Principal Balance at End of Period	$	3,231,001		$	3,351,450		$	3,231,001		$	3,351,450
Owned Principal Balance at End of Period	$	2,927,916		$	2,969,656		$	2,927,916		$	2,969,656
Average Daily Principal Balance	$	2,967,730		$	2,903,928		$	3,010,139		$	2,633,169


	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 September 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%	8.6%*	14.3%*	6.3%*
Outstanding principal balance as of September 30, 2023 as a percentage of original amount disbursed	—%	—%	—%	—%	—%	—%	—%	—%	—%	—%	—%	—%	0.8%	2.3%	14.3%	52.8%


	Three Months Ended September 30,						Period-to-period Change				Nine Months Ended September 30,						Period-to-period Change
(in thousands, except percentages)	2023			2022			$		%		2023			2022			$		%
Revenue
Interest income	$	243,258		$	232,115		$	11,143	4.8	%	$	721,340		$	632,007		$	89,333	14.1	%
Non-interest income	24,962			17,961			7,001		39.0	%	72,955			58,591			14,364		24.5	%
Total revenue	$	268,220		$	250,076		$	18,144	7.3	%	$	794,295		$	690,598		$	103,697	15.0	%
Percentage of total revenue:
Interest income	90.7		%	92.8		%					90.8		%	91.5		%
Non-interest income	9.3		%	7.2		%					9.2		%	8.5		%
Total revenue	100.0		%	100.0		%					100.0		%	100.0		%


	Three Months Ended
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Weighted average portfolio yield over the remaining life of the loans	29.70	%	30.02	%	29.78	%	29.50	%	29.90	%	30.27	%	30.15	%
Less: Servicing fee	(5.00)	%	(5.00)	%	(5.00)	%	(5.00)	%	(5.00)	%	(5.00)	%	(5.00)	%
Net portfolio yield	24.70	%	25.02	%	24.78	%	24.50	%	24.90	%	25.27	%	25.15	%
Multiplied by: Weighted average life in years	0.995		0.955		0.963		1.000		0.924		0.895		0.847
Pre-loss cash flow	24.57	%	23.90	%	23.85	%	24.50	%	23.01	%	22.61	%	21.30	%
Less: Remaining cumulative charge-offs	(11.93)	%	(11.35)	%	(11.72)	%	(10.38)	%	(11.67)	%	(11.25)	%	(10.37)	%
Net cash flow	12.65	%	12.55	%	12.13	%	14.12	%	11.34	%	11.37	%	10.93	%
Less: Discount rate multiplied by average life	(11.09)	%	(10.61)	%	(10.66)	%	(11.48)	%	(9.42)	%	(8.03)	%	(5.73)	%
Gross fair value premium as a percentage of loan principal balance	1.55	%	1.94	%	1.47	%	2.64	%	1.92	%	3.34	%	5.21	%
Less: Accrued interest and fees as a percentage of loan principal balance	(1.16)	%	(1.20)	%	(1.22)	%	(1.18)	%	(1.19)	%	(1.10)	%	(1.09)	%
Fair value premium as a percentage of loan principal balance	0.39	%	0.74	%	0.26	%	1.45	%	0.73	%	2.24	%	4.12	%
Discount Rate	11.15	%	11.10	%	11.07	%	11.48	%	10.19	%	8.97	%	6.76	%


Components of Fair Value Mark-to-Market Adjustment (in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Fair value mark-to-market adjustment on loans receivable at fair value (1)	$	(8,971)	$	(40,723)	$	(32,104)	$	(92,265)
Fair value mark-to-market adjustment on asset-backed notes	(14,859)		61,204		(76,377)		163,952
Fair value mark-to-market adjustment on derivatives	7,368		906		$	15,322	$	2,390
Total fair value mark-to-market adjustment	$	(16,462)	$	21,387	$	(93,159)	$	74,077


	Three Months Ended September 30,				Nine Months Ended September 30,
Adjusted EBITDA (in thousands)	2023		2022		2023		2022
Net income (loss)	$	(21,138)	$	(105,827)	$	(138,127)	$	(69,321)
Adjustments:

Income tax expense (benefit)	(16,232)		(6,536)		(58,247)		1,956

Interest on corporate financing (1)	11,528		871		26,457		871
Depreciation and amortization	10,955		9,229		32,182		25,329
Stock-based compensation expense	4,328		7,050		13,212		20,752

Workforce optimization expenses	466		183		15,692		1,881

Acquisition and integration related expenses	6,854		8,132		21,032		22,363

Origination fees for loans receivable at fair value, net	821		(6,348)		(14,522)		(17,699)
Other non-recurring charges (1)	1,592		108,472		4,683		111,222
Fair value mark-to-market adjustment	16,462		(21,387)		93,159		(74,077)
Adjusted EBITDA	$	15,636	$	(6,161)	$	(4,479)	$	23,277


	Three Months Ended September 30,						Nine Months Ended September 30,
Adjusted Net Income (Loss) (in thousands)	2023			2022			2023			2022
Net income (loss)	$	(21,138)		$	(105,827)		$	(138,127)		$	(69,321)
Adjustments:

Income tax expense (benefit)	(16,232)			(6,536)			(58,247)			1,956

Stock-based compensation expense	4,328			7,050			13,212			20,752

Workforce optimization expenses	466			183			15,692			1,881

Acquisition and integration related expenses	6,854			8,132			21,032			22,363

Other non-recurring charges (1)	1,592			108,472			4,683			111,222
Adjusted income (loss) before taxes	(24,130)			11,474			(141,755)			88,853
Normalized income tax expense	(6,515)			3,098			(38,274)			23,990
Adjusted Net Income (Loss)	$	(17,615)		$	8,376		$	(103,481)		$	64,863
Income tax rate (2)	27.0		%	27.0		%	27.0		%	27.0		%


	As of or for the Three Months Ended September 30,						As of or for the Nine Months Ended September 30,
(in thousands)	2023			2022			2023			2022
Return on Equity	(18.6)		%	(70.1)		%	(37.3)		%	(16.1)		%
Adjusted Return on Equity
Adjusted Net Income (Loss)	$	(17,615)		$	8,376		$	(103,481)		$	64,863
Average stockholders' equity	$	449,881		$	598,656		$	494,481		$	576,497
Adjusted Return on Equity	(15.5)		%	5.6		%	(28.0)		%	15.0		%


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:	November 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)