10-K: OppFi Reports Strong 2025 Growth, Profitability Surges

OppFi Inc. announced significant financial growth in 2025, with net income increasing 74.4% to $146.2 million and total revenue rising 13.5% to $597.1 million, driven by increased loan originations and improved credit model performance.

Summary

• OppFi is a tech-enabled, mission-driven specialty finance platform that partners with banks to extend credit access to approximately 48 million underbanked Americans.
• Since inception through December 31, 2025, OppFi has facilitated over $8.6 billion in gross loan issuance, covering more than 4.7 million loans.
• The average installment loan for a new borrower facilitated by OppFi's OppLoans platform is approximately $1,950, payable in installments with an average contractual term of 11 months, and payments are reported to the three major credit bureaus.
• The platform automates approximately 93.7% of credit decisions, with most approved applicants receiving funds the same or next business day.
• OppFi offers the 'OppFi TurnUp Program' to help eligible applicants find more affordable credit options (sub-36.0% APR) from third-party lenders.
• The company maintains high customer satisfaction, evidenced by a Net Promoter Score (NPS) of 78, an A+ rating from the Better Business Bureau (BBB), and a 4.4/5.0 star rating on Trustpilot as of December 31, 2025.
• OppFi operates under an Up-C corporate structure, with OppFi Inc. owning approximately 31.7% of OppFi Units and controlling OppFi-LLC as of December 31, 2025.
• The business model relies on bank partners (FinWise Bank, First Electronic Bank, and Capital Community Bank), which accounted for 31.3%, 26.3%, and 42.3% of net originations, respectively, in 2025.
• OppFi is developing a new loan origination platform, LOLA, expected to enhance funnel performance, increase automated approvals, improve operational efficiency, and reduce cycle times upon deployment in the second half of 2026.
• The company enhanced its machine learning Model 6 to Model 6.1 in Q4 2025, with full implementation planned for the second half of 2026, aiming to improve identification of higher-risk borrower populations and pricing precision.
• In 2024, OppFi acquired a 35% equity interest in Bitty Holdings, LLC, a small business credit access company.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong performance, with significant growth in key financial metrics and operational efficiency, despite ongoing regulatory challenges and market volatility. The positive legal outcome in California further de-risks a key market.

Positives

• Net income increased 74.4% to $146.2 million for the year ended December 31, 2025, from $83.8 million in 2024.
• Basic and diluted earnings per share (EPS) increased to $0.99 for 2025, up from $0.36 in 2024.
• Adjusted net income increased 69.1% to $139.8 million for 2025, from $82.7 million in 2024.
• Adjusted EPS increased to $1.59 for 2025, up from $0.95 in 2024.
• Total revenue increased 13.5% to $597.1 million for 2025, from $526.0 million in 2024.
• Net originations increased 12.2% to $899.3 million for 2025, from $801.5 million in 2024.
• Ending receivables increased 16.0% to $493.1 million as of December 31, 2025, from $425.2 million in 2024.
• Average yield increased to 133.5% for 2025, from 131.4% in 2024, driven by the expansion of pricing initiatives.
• Net charge-offs as a percentage of total revenue decreased to 37.0% for 2025, from 39.1% in 2024.
• Net charge-offs as a percentage of average receivables decreased to 49.4% for 2025, from 51.4% in 2024.
• The auto-approval rate increased to 79.2% for 2025, from 76.5% in 2024, due to continued algorithmic automation.
• The company achieved a favorable Tentative Statement of Decision in February 2026, granting its summary judgment motion and dismissing the DFPI's cross-claims in California, reducing regulatory uncertainty in a key market.
• A previously identified material weakness in internal control over financial reporting related to information technology general controls (ITGCs) has been remediated, and internal controls were deemed effective as of December 31, 2025.

Negatives

• Change in fair value of warrant liabilities resulted in losses of $11.3 million in 2025, an increase from $8.2 million in 2024, attributed to changes in the Class A common stock share price.
• Other expense, net, was $4.2 million for 2025, primarily due to a $4.5 million legal contingency, net of expected insurance recoveries.
• The business is highly dependent on existing bank partners, with FinWise Bank, First Electronic Bank, and Capital Community Bank collectively accounting for 100% of net originations facilitated by the platform in 2025.
• Substantially all revenue is derived from a single loan product (unsecured personal installment loans), making the company particularly susceptible to fluctuations and regulatory changes in this market.
• The company's machine learning models have not been extensively tested during a full and prolonged down-cycle economic environment, posing a risk if they fail to accurately predict credit risk in such conditions.
• As a controlled company, the influence of non-affiliate stockholders on management may be reduced.
• Future resales of Class A Common Stock by members could cause the market price of securities to drop significantly.
• The company's only significant asset is its ownership interest in OppFi-LLC, and its ability to pay dividends or meet financial obligations depends on distributions from OppFi-LLC.
• The company is required to pay 90% of certain net income tax savings to members under the Tax Receivable Agreement, which could be substantial and reduce cash flow.

Risks

• Impact of general economic conditions, including economic slowdowns, inflation, interest rate changes, recessions, tariffs, and tightening of credit markets.
• Potential for the Commissioner of the Department of Financial Protection and Innovation for the State of California (DFPI) to appeal or otherwise prevail in future proceedings, which could limit bank partners' ability to originate loans in California.
• Risk of being subject to California Assembly Bill 539 (AB 539).
• Impact that events involving financial institutions or the financial services industry generally, such as liquidity concerns, defaults, or non-performance, may have on the business.
• Ability to scale and grow joint venture or other strategic or minority investments, such as the Bitty business.
• Risks related to any material weakness in internal controls over financial reporting, despite current remediation.
• Ability to grow and manage growth profitably and retain key employees.
• Risks related to new products and evaluating and potentially consummating acquisitions.
• Concentration risk due to high dependence on existing bank partners and a single loan product.
• Risks related to the ability to comply with various covenants in corporate and warehouse credit facilities.
• Risks related to potential litigation, regulatory actions, and compliance issues.
• Changes in applicable laws or regulations, including impacts from the One Big Beautiful Bill Act (OBBBA) and potential national APR caps.
• Possibility of being adversely affected by other economic, business, and/or competitive factors.
• Risks related to management transitions.
• Inability to continue improving machine learning models or if these models contain errors or are otherwise ineffective.
• Fluctuations or decline in revenue growth rate and origination volumes.
• Inability to maintain or increase profitability, operating leverage, or unit economics.
• Models not yet extensively tested during a full and prolonged down-cycle economic environment, potentially leading to worse than anticipated loan performance.
• Damage to reputation and brand from negative publicity, regulatory scrutiny, or association with payday loans.
• Failure to compete effectively in target markets, including from new entrants, emerging technologies (AI/ML), or underpricing by competitors.
• Risks associated with fraudulent activity.
• Dependence on key personnel and other highly skilled personnel.
• Cybersecurity attacks or technology failures disrupting business operations, resulting in data breaches, reputational damage, and regulatory action.
• Lack of sole decision-making authority and reliance on the financial condition of joint venture partners (e.g., Bitty).
• Risks related to loan servicing and collections obligations, especially for unsecured loans.
• Soundness of other financial institutions or the financial services industry generally affecting liquidity and financing terms.
• Borrowers prepaying loans at any time without penalty, which could reduce servicing fees and deter bank partners and investors.
• Ineffectiveness of marketing efforts and brand promotion activities.
• Disruptions with the development and implementation of the new Loan Origination Lending Application (LOLA) software system.
• Unfavorable outcomes in legal proceedings.
• Regulatory scrutiny on certain online lenders' access to the ACH system, potentially interrupting or limiting access.
• Inherent risks associated with offshore service providers.
• Failure to comply with a variety of federal, state, and local laws related to consumer protection, privacy, and loan financings.
• Internet-based loan origination processes giving rise to greater risks than paper-based processes.
• Operating without having obtained necessary state or local licenses.
• Uncertainty regarding the authority, priorities, and operations of the CFPB.
• Collection, processing, storage, use, and disclosure of personal data giving rise to liabilities due to evolving governmental regulation.
• Requirement to register under the Investment Company Act.
• Adverse consequences from anti-money laundering, anti-terrorism financing, anti-corruption, and economic sanctions laws.
• Warehouse facilities exposing the company to certain risks and potential inability to access whole loan sales markets or secured warehouse credit facilities in the future.
• Inability to maintain diverse and robust sources of capital.
• Representations and warranties in credit facilities potentially requiring repurchase of loans or participation rights.
• Changes in interest rates adversely affecting performance.
• Need to raise additional funds in the future, which may not be available on acceptable terms.
• Having a minority share position reducing the influence of stockholders on the management of the company.
• Inability to comply with the continued listing standards of the NYSE.
• Future resales of Class A Common Stock causing the market price of securities to drop significantly.
• Fluctuations in the amount and frequency of share repurchases.
• The company's only significant asset being its ownership interest in OppFi-LLC, depending on distributions from OppFi-LLC to pay expenses and obligations.
• Requirement to make substantial payments to members under the Tax Receivable Agreement, potentially exceeding actual tax benefits.
• Potential for write-downs or write-offs, restructuring, and impairment or other charges.
• The Certificate of Incorporation's forum selection clause potentially discouraging claims or limiting stockholders' ability to make claims.
• Unanticipated changes in effective tax rates or adverse outcomes from examination of income or other tax returns.
• Taxing authorities successfully asserting that the company should have collected or in the future should collect sales and use, gross receipts, value added, or similar taxes.
• Changes in U.S. tax laws could have a material adverse effect.

Future Outlook

The company expects to accelerate profitable growth by driving core product volume, serving more non-prime consumers with strategic marketing and credit enhancements, and expanding into new customer and product types via acquisitions. It is developing a new loan origination platform (LOLA) and plans full implementation of its enhanced Model 6.1 in the second half of 2026. The company believes its unrestricted cash, undrawn debt, and operating income will be sufficient to meet liquidity needs for at least the next 12 months.

Management Comments

• Net income increased 74.4% to $146.2 million for the years ended December 31, 2025 and 2024, respectively.
• Basic and diluted earnings per share (EPS) increased $0.63 to $0.99 from $0.36 for the years ended December 31, 2025 and 2024, respectively.
• Adjusted net income increased 69.1% to $139.8 million from $82.7 million for the years ended December 31, 2025 and 2024, respectively.
• Adjusted earnings per share increased $0.64 to $1.59 from $0.95 for the years ended December 31, 2025 and 2024, respectively.
• Total revenue increased 13.5% to $597.1 million from $526.0 million for the years ended December 31, 2025 and 2024, respectively.
• Net originations increased 12.2% to $899.3 million from $801.5 million for the years ended December 31, 2025 and 2024, respectively.
• Ending receivables increased 16.0% to $493.1 million from $425.2 million as of December 31, 2025 and 2024, respectively.
• The 12.2% increase in total net originations was a result of increased demand from both new and returning customers and improvements to our credit model allowing for higher average loan sizes.
• The 16.0% increase in ending receivables was primarily driven by higher retained net originations and improvements to our credit model allowing for longer term loans and higher average loan sizes.
• The 1.5% increase in average yield was driven by an increase in the average statutory rate due to the expansion of pricing initiatives.
• The decrease in net charge-offs as a percentage of total revenue was mainly a result of a higher yielding portfolio over the period.
• Auto-approval rate increased to 79.2% for the year ended December 31, 2025, from 76.5% for the year ended December 31, 2024, driven by the continued application of algorithmic automation projects that streamline frictional steps of the origination process.
• We believe that our unrestricted cash, undrawn debt and funds from operating income will be sufficient to meet our liquidity needs, including repayment of the current portion of our debt as it becomes due, for at least the next 12 months from the date of this Annual Report.

Industry Context

StockSavvy.ai notes that OppFi operates in the highly competitive specialty finance industry, specifically targeting the approximately 48 million underbanked Americans. Its digital-native platform, proprietary machine learning models, and focus on financial inclusion provide a competitive advantage against traditional banks that have been slow to adopt digital solutions and against higher-cost alternatives like payday loans. The company's strong customer satisfaction ratings and educational initiatives align with a growing consumer demand for transparent and responsible lending. The ongoing legal and regulatory scrutiny, particularly concerning interest rate caps and 'true lender' challenges, remains a significant industry trend that impacts all players, making OppFi's recent legal victory in California particularly noteworthy for its business model.

Comparison to Industry Standards

• OppFi's Net Promoter Score (NPS) of 78 for 2025 is significantly higher than typical financial services industry averages, indicating superior customer satisfaction compared to many competitors.
• The 4.4/5.0 star rating on Trustpilot with over 5,400 reviews and an A+ rating from the Better Business Bureau (BBB) position OppLoans among top consumer-rated financial platforms online, outperforming many traditional and alternative lenders in customer perception.
• The 93.7% automated credit decision rate in 2025 demonstrates a high level of technological efficiency and speed in loan processing, which is a key differentiator in the digital lending space.
• The average installment loan for a new borrower facilitated by OppFi is approximately $1,950, payable over 11 months, which contrasts with shorter-term, higher-fee payday loans often criticized in the industry, positioning OppFi as a more responsible alternative.

Management Changes

Corporate Governance

Legal Proceedings

• OppFi filed a lawsuit against the Commissioner of the California Department of Financial Protection and Innovation (DFPI) in March 2022, seeking a declaration that California Financing Law (CFL) interest rate caps do not apply to loans originated by its bank partners.
• The DFPI filed a cross-complaint in April 2022, attempting to enforce the CFL against OppFi and void loans, alleging OppFi was the 'true lender'.
• In February 2026, the Superior Court of the State of California, County of Los Angeles, Central Division, issued a Tentative Statement of Decision granting OppFi's summary judgment motion, dismissing the DFPI's cross-claims, and finding no evidence that OppFi was the 'true lender' or that loans were usurious at inception.
• The DFPI retains the right to appeal this decision, which could result in reversal, remand for further proceedings, or continued uncertainty regarding the applicability of the CFL.
• A putative class action complaint was filed in July 2023 against former directors and officers of FGNA and its controlling stockholder, alleging breaches of fiduciary duties related to the business combination with OppFi-LLC.
• The class action complaint was amended in February 2025 to name Todd Schwartz (CEO), Theodore Schwartz (director), and Schwartz Capital Group, alleging aiding and abetting breaches.
• In February 2026, the parties to the class action lawsuit informed the court of an agreement in principle to resolve the matter.
• The CFPB previously issued a civil investigative demand regarding Military Lending Act compliance, which concluded in August 2021 with no enforcement action recommended.
• A lawsuit filed by the Washington, DC Attorney General in April 2021, alleging deceptive marketing of high-cost loans, was resolved in November 2021 through a Consent Judgment and Order, which included a $250,000 payment, refunds to certain DC consumers, and cessation of certain business activities in DC.

Related Party Transactions

• Payments to Members pursuant to the Tax Receivable Agreement totaled $1.0 million during the year ended December 31, 2025.
• Christopher McKay, an executive officer, had a daughter whose employment with the company concluded in 2024. Her total compensation was approximately $133,000 in 2023 and did not exceed $120,000 in 2024, consistent with other employees in similar positions.

Stakeholder Impact

• Shareholders: Positive financial results and a favorable legal outcome in California are likely to enhance investor confidence. Share repurchases and dividends indicate a return of capital. However, potential dilution from warrants and the controlled company structure may limit influence, and Tax Receivable Agreement payments reduce cash flow available to public shareholders.
• Customers: Continued access to fair and transparent credit for underbanked Americans, high customer satisfaction ratings (NPS 78, Trustpilot 4.4/5.0), financial education programs (OppU, Zogo), and flexible loan terms (no fees, no prepayment penalties) indicate a positive impact on financial health.
• Employees: Investment in technology (LOLA) and a focus on attracting and retaining talented professionals, along with stock-based compensation and an Employee Stock Purchase Plan, provide incentives and support career development.
• Bank Partners: Benefit from OppFi's outsourced marketing, data science, and proprietary technology, enabling them to reach underserved consumers. The legal victory in California reduces regulatory risk for their lending activities in that state.
• Regulators: Ongoing engagement with regulatory bodies and a robust compliance management system are critical. The favorable outcome in the DFPI lawsuit validates the company's bank partnership model, potentially influencing future regulatory interpretations.

Next Steps

• Full implementation of the Loan Origination Lending Application (LOLA) platform in the second half of 2026.
• Full implementation of the enhanced Model 6.1 in the second half of 2026.
• Preparation of a proposed final statement of decision and presentation of a proposed judgment by March 26, 2026, for the DFPI lawsuit.
• The DFPI will have an opportunity to object to the proposed final Statement of Decision within 15 days following March 26, 2026.
• A non-appearance status conference for the DFPI lawsuit is set for the end of April.
• Continued investment in new marketing channels.
• Evaluation of corporate development opportunities to diversify the business by acquiring businesses in adjacent categories.
• Monitoring and assessment of the potential impact of the One Big Beautiful Bill Act (OBBBA) on future consolidated financial statements.
• Evaluation of the impact of new accounting standards ASU 2024-03, ASU 2025-01, ASU 2025-06, and ASU 2025-11 on the company's disclosures and consolidated financial statements.

Key Dates

Recommendation

OppFi demonstrated robust financial performance in 2025, with significant increases in net income, EPS, revenue, and originations, alongside improved credit quality metrics. The favorable outcome in the California DFPI lawsuit significantly de-risks a key operational jurisdiction and validates the company's bank partner model. Continued investment in technology (LOLA, Model 6.1) and a strong customer satisfaction record position the company for sustained growth in the underserved non-prime lending market. While regulatory scrutiny and reliance on bank partners remain, the current trajectory and strategic initiatives suggest strong future potential, making it an attractive investment.

Keywords

Financial technology, FinTech, consumer lending, underbanked, installment loans, credit access, OppLoans, SEC filing, 10-K, financial services, machine learning, credit risk, regulatory compliance, capital markets, corporate governance, OppFi, profitability, revenue growth, loan originations, customer satisfaction, legal proceedings