OPFI Lifts EPS Guidance for 2025: Can It Meet the Expectation?

OppFi’s OPFI sprint for raising adjusted EPS guidance for 2025 did not halt during the first quarter of 2025. Management raised the bar further during the June quarter and expects the metric to be within the range of $1.39-$1.44 compared with the preceding quarter’s view of $1.18-$1.26. This becomes even more impressive when compared to the stance taken during the fourth quarter of 2025, when the expected adjusted EPS was set at $1.06-$1.07.

The share count assumption remains the same compared to the first quarter at 90 million. This implies a significantly positive growth trajectory for adjusted net income. Adjusted net income guidance for 2025 given during the second quarter was in the $125-$130 million range, an increase from the earlier range of $106-$113 million.

A 44% sequential decline in net income during the June quarter after a whopping 46% growth during the first quarter of 2025 looks gloomy for the long-term expectations. However, the adjusted net income paints a different picture. This metric skyrocketed 67% and 117% during the March and June quarters, respectively, primarily driven by a 97% and 154% increase in the change in fair value of warrant liabilities, following an 83% surge in OPFI’s share price during the Jan. 1-June 30 timeframe.

Riding on the consistent top-line growth (OppFi expects total revenues for 2025 to be between $578 and $605 million, representing a 10% to 15% increase from 2024 actuals)  and prudent expense management, we expect OppFi to register a significant improvement in net income in the upcoming quarters, boosting investors' morale. This could potentially boost the stock further, thus having a positive impact on the company’s adjusted net income. This makes us optimistic that OPFI will either meet or even surpass the recently adjusted net income guidance, paving the way to do the same for EPS.

OPFI’s Price Performance, Valuation & Estimates

The stock has skyrocketed 139.6% in the past year, significantly outperforming its competitors, Green Dot GDOT, FirstCash FCFS and the industry as a whole. The industry, Green Dot and FirstCash have risen 18%, 25.5% and 25.7%, respectively, during the same timeframe.

1-Year Price Performance

From a valuation standpoint, OPFI trades at a forward price-to-earnings ratio of 6.62, lower than the industry’s 22.11. Green Dot trades at 9.2 and FirstCash hovers at 16.24. All three companies have a Value Score of A.

P/E - F12M

The Zacks Consensus Estimate for OppFi’s earnings for 2025 and 2026 has increased 15.4% and 4.9%, respectively, over the past 60 days.

OPFI currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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