OppFi (OPFI) Q4 2025 Earnings Call Transcript

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Wednesday, March 11, 2026 astatine 9 a.m. ET

• Chief Executive Officer — Todd G. Schwartz

• Chief Financial Officer — Pamela D. Johnson

Todd G. Schwartz: Thanks, Mike, and bully morning, everyone. Thank you for joining america today. I americium looking guardant to discussing different twelvemonth of record-breaking show astatine OppFi Inc. For 2025, full gross accrued 13.5% twelvemonth implicit twelvemonth and adjusted nett income accrued 69% twelvemonth implicit twelvemonth portion keeping our industry-leading 78 Net Promoter Score. We proceed to find benefits from Underwriting Model 6 which is designed to place riskier borrowers and decently terms hazard crossed segments. Despite higher delinquencies connected our summertime vintages, OppFi Inc. maintained beardown portion economics and adjusted successful existent clip to enactment continued maturation into the 4th quarter.

The auto-approval complaint successful the 4th fourth was 79%, which allowed much customers to beryllium approved without quality enactment and helped summation originations 48% twelvemonth implicit year. In conjunction with our lending partners, we program to merchandise Model 6.1 successful 2026, which we expect volition boost originations and trim risk. We judge Model 6.1 amended weights attributes successful the exemplary and enables much close segmentation of hazard erstwhile identifying borrowers. The recognition squad is actively moving connected Model 7.0 with our slope partners and aboriginal indicators are promising connected some origination and hazard fronts. We program to motorboat Model 7.0 successful Q3 of this year.

We are encouraged to spot improving vintage metrics successful December and January coupled with beardown betterment metrics successful Q4, which we judge volition alteration america to turn the apical and bottommost enactment successful the treble digits successful 2026. OppFi Inc. continues to marque large advancement connected gathering LOLA, the origination and servicing strategy of the future. LOLA is designed with a cleanable architecture to leverage rapidly evolving AI tools crossed origination, servicing, and firm operation. The physique and trial signifier is complete, and we are actively finishing up the QA signifier of the project. We program to substantially migrate to our caller bundle strategy successful Q3 2026.

Early indicators springiness america assurance that LOLA volition assistance proceed to amended funnel metrics, summation automated approvals, heighten ratio successful servicing and recoveries, amended integrate large systems, present reduced rhythm times, and supply greater throughput for our product, tech, and hazard teams. We judge our LOLA strategy and architecture volition let america to rapidly deploy and physique caller products to respond to our customers' needs and marketplace dynamics. To that end, we are excited to denote a caller enactment of recognition product. We expect this merchandise to motorboat with our slope partners successful 2026.