OppFi Reports Third Quarter 2026 Results

OppFi’s Q3 profit plunged 55% as credit losses rose and originations fell.

What the company is saying

OppFi highlights the launch of its new Line of Credit product as a key milestone in broadening its product suite, framing this as evidence of strategic transformation and future growth potential. The company emphasizes ongoing product and pricing initiatives aimed at expanding its addressable market and enhancing customer choice, though it does not quantify their impact. CEO and Executive Chairman Todd Schwartz positions these actions as building a more diversified, technology-enabled platform to serve customers across their financial journeys, asserting that these efforts will strengthen long-term earnings power. The announcement also spotlights $6.7 million in share repurchases during Q3 and $17.9 million year-to-date at an average price of $8.91 per share, signaling confidence in the company’s valuation. Updated full-year 2026 guidance is presented with explicit ranges for revenue ($600–$610 million), adjusted net income ($115–$120 million), and adjusted EPS ($1.34–$1.40), based on a 86 million diluted share count. The company notes its 35% equity stake in Bitty Holdings, LLC and references a pending transaction with BNCCORP, Inc., for which a registration statement has been filed.

What the data suggests

The third quarter of 2026 saw total revenue decline 3.8% year-over-year to $149.2 million, while net income fell sharply by 54.6% to $34.5 million. Net income attributable to OppFi Inc. dropped 17.2% to $34.5 million, and adjusted net income decreased 22.5% to $31.6 million. Basic EPS for the quarter was $0.41, down 72.6%, and adjusted EPS was $0.37, down 20.1%. For the nine months ended September 30, 2026, total revenue edged up 1.9% to $446.3 million, but net income slipped 3.4% to $104.1 million and adjusted net income fell 20.7% to $90.4 million. Key operating metrics deteriorated: total net originations for the quarter dropped 6.8% to $229.3 million, retained net originations fell 11.4% to $190.7 million, and ending receivables declined 4.7% to $458.6 million. Credit quality worsened, with net charge-offs as a percentage of total revenue rising to 40.1% from 35.1%, and as a percentage of average receivables (annualized) to 52.6% from 46.7%. Average yield remained high at 131.4% but slipped from 133.2% a year ago. The company’s auto-approval rate improved modestly to 80.1%. Share repurchases totaled $17.9 million year-to-date. While the company provides full-year guidance, the Q3 results show declining profitability, higher credit losses, and shrinking loan originations, with no quantified evidence yet that new products or initiatives are reversing these trends.

Analysis

The announcement is factual and comprehensive, providing detailed GAAP and non-GAAP financials, operational metrics, and clear year-over-year comparisons. The tone is neutral, with no exaggerated language or narrative inflation. Most claims are realised and supported by hard data, including revenue, net income, EPS, originations, and charge-off rates. The only forward-looking element is the updated full-year 2026 guidance, which is standard for quarterly releases and not presented with promotional language. Despite the launch of a new product, the financial direction is negative: revenue, net income, and key operational metrics have declined, while credit losses have increased. There is no evidence of hype or overstatement; if anything, the results are disappointing relative to prior periods, but the company does not attempt to obscure this with inflated claims.

Risk flags

• ●Profitability is deteriorating: Net income for Q3 2026 fell 54.6% year-over-year to $34.5 million, and adjusted net income dropped 22.5%. This indicates margin pressure and reduced earnings power.
• ●Credit risk is rising: Net charge-offs as a percentage of total revenue increased to 40.1% from 35.1% year-over-year, and as a percentage of average receivables (annualized) to 52.6% from 46.7%. Higher credit losses could further erode profitability.
• ●Originations and receivables are shrinking: Total net originations declined 6.8% and ending receivables fell 4.7% year-over-year, suggesting weaker loan growth and potential pressure on future revenue.
• ●Strategic initiatives lack quantified impact: The company highlights new product launches and platform migration as growth drivers, but the financials do not yet show improvement attributable to these actions, raising execution risk.
• ●Guidance credibility is under pressure: With Q3 results showing declining profitability and rising credit losses, meeting the full-year adjusted net income and EPS guidance will require a reversal of current trends in the final quarter.

Bottom line

OppFi’s Q3 2026 results show a sharp drop in profitability, with net income down 54.6% and adjusted EPS falling 20.1% year-over-year, driven by higher credit losses and shrinking loan originations. The company’s narrative emphasizes strategic transformation, new product launches, and technology investments, but the hard data points to deteriorating credit quality and weaker growth. Share repurchases totaling $17.9 million signal management’s confidence, yet the financial trajectory raises questions about the sustainability of current guidance. The updated full-year targets for revenue ($600–$610 million), adjusted net income ($115–$120 million), and adjusted EPS ($1.34–$1.40) are achievable only if Q4 delivers a significant turnaround. Investors should focus on whether the new Line of Credit product and platform migration can materially improve results in the near term. The most important takeaway is that execution risk is high: unless credit losses are contained and originations recover, further earnings pressure is likely.

Announcement summary

(NYSE: OPFI) OppFi Inc. reported financial results for the third quarter ended September 30, 2026. The company launched a new Line of Credit product, marking a significant milestone in expanding its product suite. OppFi continued to execute product and pricing initiatives aimed at expanding addressable market opportunities and enhancing customer choice. During the third quarter, OppFi repurchased $6.7 million of common stock under its share repurchase program. For the three months ended September 30, 2026, total revenue was $149,230,000 compared to $155,089,000 in the prior year period, a decrease of 3.8%. Net income for the quarter was $34,479,000, down from $75,933,000 in the prior year, a decrease of 54.6%. Net income attributable to OppFi Inc. was $34,479,000, compared to $41,635,000, a decrease of 17.2%. Adjusted net income was $31,559,000, down from $40,727,000, a decrease of 22.5%. Basic EPS was $0.41, compared to $1.48, a decrease of 72.6%. Diluted EPS was $0.40, compared to $0.77, a decrease of 47.6%. Adjusted EPS was $0.37, compared to $0.46, a decrease of 20.1%. For the nine months ended September 30, 2026, total revenue was $446,281,000, up from $437,800,000, an increase of 1.9%. Net income for the nine months was $104,129,000, compared to $107,803,000, a decrease of 3.4%. Net income attributable to OppFi Inc. was $77,722,000, up from $9,483,000, an increase of 719.6%. Adjusted net income was $90,363,000, compared to $113,945,000, a decrease of 20.7%. Basic EPS was $1.29, compared to $0.36, an increase of 257.3%. Diluted EPS was $1.14, compared to $0.36, an increase of 214.0%. Adjusted EPS was $1.05, compared to $1.29, a decrease of 18.6%. For the three months ended September 30, 2026, total net originations were $229,348,000, down from $246,109,000, a decrease of 6.8%. Total retained net originations were $190,671,000, down from $215,237,000, a decrease of 11.4%. Ending receivables were $458,631,000, compared to $481,037,000, a decrease of 4.7%. Net charge-offs as a percentage of total revenue were 40.1%, up from 35.1%. Net charge-offs as a percentage of average receivables, annualized, were 52.6%, up from 46.7%. Average yield, annualized, was 131.4%, compared to 133.2%. Auto-approval rate was 80.1%, compared to 79.1%. For the nine months ended September 30, 2026, total net originations were $617,360,000, down from $669,150,000, a decrease of 7.7%. Total retained net originations were $518,881,000, down from $589,905,000, a decrease of 12.0%. Ending receivables were $458,631,000, compared to $481,037,000, a decrease of 4.7%. Net charge-offs as a percentage of total revenue were 40.7%, up from 33.9%. Net charge-offs as a percentage of average receivables, annualized, were 53.2%, up from 45.5%. Average yield, annualized, was 130.8%, compared to 134.3%. Auto-approval rate was 80.2%, compared to 79.2%. During the nine months ended September 30, 2026, OppFi repurchased $17.9 million of its Class A common stock at an average purchase price of $8.91 per share. For full year 2026, OppFi updated its guidance to total revenue between $600 million and $610 million, adjusted net income between $115 million and $120 million, and adjusted EPS between $1.34 and $1.40, based on an approximate weighted average diluted share count of 86 million shares. OppFi holds a 35% equity interest in Bitty Holdings, LLC, a credit access company providing revenue-based financing and other working capital solutions to small businesses. OppFi has filed a registration statement on Form S-4 (File No. 333-297733) with the SEC in connection with its proposed transaction with BNCCORP, Inc.

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