Oportun Raises Full-Year Ebitda Outlook After Margin Expansion

The Tip Desk · August 5, 2026 · 4 min read

Adjusted EBITDA reached $49 million in the second quarter, and the company lifted its full-year range 6% at the midpoint to $160 million to $175 million.

Oportun Financial Corporation (OPRT), a mission-driven financial services company, reported second-quarter Adjusted EBITDA of $49 million, a 56% increase from $31 million a year earlier, after that measure had fallen year over year to $29 million in the first quarter.

The company said it outperformed the top end of its guidance ranges for both total revenue and Adjusted EBITDA. Total revenue was $233 million, essentially unchanged from $234 million a year earlier.

GAAP net income was $8.5 million, up 24% from $6.9 million a year earlier, and diluted earnings were $0.17 a share. Adjusted net income was $21 million and adjusted EPS was $0.42. The company said the increase in pre-tax income was attributable to a $17.6 million decrease in interest expense and a $4.4 million decrease in operating expense, partially offset by unfavorable loan-related fair value adjustments.

The increase in profitability followed a first quarter in which GAAP net income was $2.3 million and Adjusted EBITDA was $29 million.

Net interest margin ratio increased 274 basis points to 29.0% from 26.3% a year earlier, after being relatively flat at 26.9% in the first quarter. Cost of debt decreased 228 basis points to 6.3% from 8.6% a year earlier, following a 91 basis point year-over-year decline in the first quarter. The company said the cost-of-debt drop reflected ongoing balance-sheet optimization, including repayment of $87.5 million in corporate debt, and a favorable non-cash change in interest-expense recognition on asset-backed borrowings. Portfolio yield rose 45 basis points to 33.3% from 32.8% a year earlier, which the company attributed to higher origination fees.

Aggregate originations were $488 million, up 1% from $481 million in the prior-year quarter, after an 11% year-over-year decline in the first quarter. Management continues to expect to grow originations in the mid-single-digits range over full-year 2026. Owned principal balance was $2,613 million, down 1% from $2,636 million a year earlier.

The 30-plus day delinquency rate was 4.0% at quarter-end, compared with 4.4% a year earlier. Chief Executive Doug Bland said the rate was the lowest since the fourth quarter of 2021 and that it reinforced the company’s confidence that credit performance will continue improving in the second half of the year. The annualized net charge-off rate was 12.0%, compared with 11.9% a year earlier; net charge-offs in dollars were $79 million.

Operating expense was $90 million, down 5% from $94 million a year earlier, which the company said was primarily due to expense discipline in technology and facilities and general and administrative expenses. Adjusted operating expense was $84 million. The company continues to expect full-year 2026 GAAP operating expenses to be substantially flat versus 2025’s $362 million.

Secured personal loan receivables were $245 million, or 9% of owned principal, up from $195 million, or 7%, a year earlier. The company said secured personal loans losses were substantially lower than for unsecured personal loans in the quarter and that the product is expected to generate about twice the revenue per loan, primarily due to higher average loan sizes.

Cash was $212 million, including $140 million of cash and cash equivalents and $73 million of restricted cash. Debt-to-equity was 6.5 times. Undrawn capacity on $1,189 million of personal loan warehouse lines was $880 million; the lines are committed through 2028 and up to 2030.

Given second-quarter performance and its outlook for the balance of the year, Oportun is improving its annualized net charge-off range by 20 basis points and raising its full-year Adjusted EBITDA range 6% at the respective midpoints, to $160 million to $175 million. Full-year total revenue guidance is $935 million to $955 million, annualized net charge-offs 11.7% plus or minus 30 basis points, adjusted net income $74 million to $82 million, and adjusted EPS $1.50 to $1.65. Third-quarter 2026 guidance is $235 million to $240 million of total revenue, 11.0% plus or minus 15 basis points of annualized net charge-offs, and $43 million to $48 million of Adjusted EBITDA.