OppFi (OPFI) Q1 2026 earnings summary

Executive summary

• Announced acquisition of BNCCORP and BNC National Bank for $130–$130.7 million in cash and stock, aiming to expand geographic reach, product offerings, and regulatory position.

• Net income surged 165% year-over-year to $54.0 million in Q1 2026, while adjusted net income declined 11.2% to $30.0 million.

• Transitioned from an Up-C to a traditional C-Corp structure, simplifying operations, eliminating noncontrolling interests, and optimizing tax position.

• Launched Model 6.1 credit model, advanced Model 7 development, and initiated migration to the LOLA origination and servicing system, with substantial completion expected in Q3 2026.

• Announced a new $40 million share repurchase program, replacing the prior authorization, with $9.9 million in shares repurchased in Q1 2026.

Financial highlights

• Q1 2026 revenue reached $151.9–$152 million, up 8.3% year-over-year, with ending receivables at $444.9–$445 million (+9.4%).

• Net originations declined 7% year-over-year to $176 million, reflecting credit tightening and reduced loan demand.

• Adjusted net income fell 11.2% to $30 million; adjusted EPS decreased to $0.35.

• Net charge-offs as a percentage of revenue rose to 42–42.5%; as a percentage of average receivables, increased to 55–55.5%.

• Free cash flow for Q1 2026 was $69–$69.3 million; net cash from operations was $90.8 million.

Outlook and guidance

• Acquisition of BNC expected to close in Q4 2026, subject to regulatory approval, enabling operation as a bank holding company.

• Combination projected to be at least 25% accretive to adjusted EPS in year one post-closing, 40% in year two, and 50% in year three.

• Full-year 2026 revenue guidance is $650–$675 million (+9–13% YoY); adjusted net income guidance is $153–$160 million (+9–14% YoY); adjusted EPS guidance is $1.76–$1.84 (+11–16% YoY).

• Revenue synergies from BNC estimated at $60 million in year one, $90 million in year two, and over $115 million in year three post-closing.

• Management expects 2026 to be a pivotal investment year, leveraging the BNC transaction for growth and product diversification.