Oportun — Q3 2026 Earnings Summary

Financial Performance:

• Total revenue for Q3 2026 was $246 million, a 3% increase year-over-year from $239 million in Q3 2025.
• GAAP net income grew $18 million year-over-year to $23 million, compared to $5.2 million in Q3 2025.
• Adjusted net income increased 38% year-over-year to $26 million, up from $19 million in Q3 2025.
• Adjusted EBITDA grew 37% year-over-year to $56 million, compared to $41 million in Q3 2025.
• Diluted EPS was $0.45 for Q3 2026, compared to $0.11 in Q3 2025.
• Adjusted EPS was $0.51 for Q3 2026, compared to $0.39 in Q3 2025.
• Annualized Net Charge-Off Rate was 10.6%, the lowest since Q3 2022, down from 11.8% in Q3 2025.
• Net charge-offs were $71 million, a 10% decrease from $80 million in Q3 2025.
• Cost of debt decreased 193 basis points year-over-year to 6.1%, driven by the repayment of $68 million in corporate debt.
• Net Interest Margin Ratio increased 344 basis points to 30.5% from 27.1% in Q3 2025.
• Risk Adjusted Net Interest Margin Ratio was 19.0%, an increase of 260 basis points from 16.4% in Q3 2025.
• Return on Equity (ROE) was 22% for the quarter, up from 5% in Q3 2025.
• Adjusted ROE was 24% for the quarter, up from 20% in Q3 2025.
• Total operating expense was $92 million, relatively flat compared to $91 million in Q3 2025.
• Adjusted operating expense increased 9% year-over-year to $92 million.
• Cash and cash equivalents were $181 million, with restricted cash of $77 million, totaling $258 million in cash.
• Debt-to-Equity ratio declined to 6.2x at quarter-end from 7.1x in the prior-year quarter.

Guidance and Future Outlook:

• Full-year 2026 total revenue guidance raised to $955 million to $960 million.
• Full-year 2026 Adjusted EPS guidance raised to $1.60 to $1.70, reflecting 21% year-over-year growth at the midpoint.
• Full-year 2026 Annualized Net Charge-Off Rate guidance lowered to 11.6% plus or minus 10 basis points.
• Full-year 2026 Adjusted EBITDA guidance is $183 million to $188 million.
• Full-year 2026 Adjusted Net Income guidance is $80 million to $85 million.
• Q4 2026 total revenue guidance is $247 million to $252 million.
• Q4 2026 Annualized Net Charge-Off Rate guidance is 11.05% plus or minus 15 basis points.
• Q4 2026 Adjusted EBITDA guidance is $49 million to $54 million.
• Management expects originations growth to be on the higher end of the mid-single-digit range for the full year.
• Full-year operating expense expectations revised upward to a low-single-digit increase year-over-year.

Business Segments and Product Lines:

• Aggregate originations for Q3 2026 were $572 million, a 12% increase from $512 million in Q3 2025.
• Growth in originations was supported by lower-risk segments, with returning unsecured members and secured personal loans increasing by a combined 25%.
• Owned Principal Balance at the end of Q3 2026 was $2.7 billion, a 2% increase from $2.6 billion in Q3 2025.
• Portfolio Yield for Q3 2026 was 34.4%, up 136 basis points from 33.0% in Q3 2025.
• Oportun introduced "Oportun Forward," a strategy to simplify the core business and drive durable growth.
• The strategy focuses on improving offers for qualified applicants, simplifying the experience for returning members, and increasing operating efficiency.
• New leadership appointments include Bill Franklin (CFO), Bernardo Martinez (Chief Retail and Sales Officer), and Garrett Hope (Chief Product Officer).

Market and Competitive Landscape:

• The company maintained a tight credit posture while growing originations.
• The company has $735 million of undrawn capacity on existing personal loan warehouse lines, committed through 2028 and up to 2030.
• The company reported a 30+ Day Delinquency Rate of 4.1% at the end of Q3 2026, down from 4.7% in Q3 2025.
• Customer Acquisition Cost was $131 in Q3 2026, compared to $103 in Q3 2025.

Risks and Challenges:

• Management noted that higher personnel costs related to increased bonus accruals and severance amounts, along with higher marketing costs, were partially offset by non-recurring interest and fees received from a Mexico value-added tax refund resolution.
• Adjusted Operating Expense Ratio increased to 13.7% from 12.6% in Q3 2025 due to higher Adjusted Operating Expense.
• The press release cites standard forward-looking risks including macroeconomic conditions, inflation, market interest rates, loan non-payments, delinquencies, charge-offs, and competition.

Management Commentary and Tone:

• CEO Doug Bland described Q3 as a "strong quarter" with "momentum building."
• Bland stated the company "outperformed our guidance for revenue, Adjusted EBITDA and net charge-offs."
• Management emphasized a focus on "disciplined credit posture" and "lower-risk growth."
• CFO Bill Franklin expressed confidence in investing organically to support "disciplined, profitable growth" while maintaining capital and liquidity.

Other Key Points:

• The company repaid $68 million in Corporate Debt during the quarter, contributing to the reduction in cost of debt.
• The company received non-recurring interest and fees in September 2026 in connection with the resolution of a Mexico value-added tax refund.
• The company has provided more than $23.3 billion in credit since inception and saved members more than $2.5 billion in interest and fees.
• Conference call details were provided for November 3, 2026, at 5:00 p.m. ET.