OppFi Jumps 46% in a Year: Should You Buy the Stock Right Now?

OppFi Inc. OPFI shares have jumped 45.5% in a year. This impressive growth outpaced the 11.1% decline of its industry and the 14.1% rally of the Zacks S&P 500 Composite.

OPFI has outperformed its industry peers, Corpay CPAY and International Money Express IMXI 25.9% and 29.9% declines, respectively.

1-Year Share Price Performance

The year-to-date price performances also show that OppFi’s growth beats that of Corpay and International Money Express. OPFI has gained 29.8%, against Corpay’s 18.3% decline and International Money Express’s 27.3% fall.

Should investors add this stock to their portfolio? Let us delve deeper to find out the next move.

OppFi’s Tech-Fueled Efficiency & Risk Mitigation

AI and machine learning (ML)-based models are the powerhouses of operational efficiency. OPFI leveraged these new-age technologies to improve its auto-approval rate to 79.1% in the third quarter of 2025 from 76.8% in the same quarter last year.

Increased automation reduces expenses, as shown by a 500-basis-point (bps) decrease in total expenses as a percentage of total revenues from the year-ago quarter, and a 300-bps decrease from the previous quarter. This boost in efficiency enhanced the company’s profitability, demonstrated by a 136.9% upsurge in net income from the same quarter last year and a 561.4% whopping rise from the previous quarter.

On the risk management front, OPFI leverages Model 6 to differentiate customers across risk segments. In the third quarter of 2025, the company witnessed an 80-bps increment in net charge-offs as a percentage of total revenues from the year-ago quarter, signaling credit stress across the customer base. In response to this ordeal, OPFI utilized its risk-based pricing approach to maintain robust unit economics while sustaining growth.

One may question OppFi’s ability to manage credit risks in the long run, given the heightened net charge-offs as a percentage of total revenues. The answer to this is Model 6.1 refit, which the company plans to roll out in the fourth quarter of this year and fully implement in the first quarter of 2026. This model is designed to identify riskier borrowers in a better manner. Hence, we can expect OppFi to regain its ability to enhance credit risks from the beginning of 2026.

OPFI’s Remains Consistent in Raising FY25 Guidance

OPFI has been bullish on its ability to generate profit for 2025 over the past few quarters. The trend started from the fourth quarter of 2024, when the company had expected adjusted net income and adjusted EPS of $95-$97 million and $1.06-$1.07 for 2025, respectively. Since then, management has been consistent in raising its outlook during the succeeding quarters.

In the first quarter of 2025, the company raised its guidance for adjusted net income to $106-$113 million, which increased to $125-$130 million in the second quarter. For adjusted EPS, the expectation was $1.18-$1.26 in the first quarter of 2025, which was hiked to $1.39-$1.44 in the second quarter.

The third-quarter earnings report disclosed that management raised its guidance again, with the adjusted net income at $137-$142 million and the adjusted EPS at $1.54-$1.60. This trajectory, which hints at an optimistic view from the executive team regarding earnings, provides a significant boost to investors' morale.

OppFi’s Stock Appears Cheap

OPFI is priced at 5.9 times forward 12-month earnings per share, significantly below the industry average of 20.6 times. The company’s trailing 12-month EV-to-EBITDA ratio is 5 times, below the industry average of 11.2 times. Being cheaper on both counts makes OppFi a highly sought-after stock that investors may ride on for the long haul.

OPFI’s Strong Top & Bottom-Line Outlook

The Zacks Consensus Estimate for OPFI’s 2025 revenues is pinned at $598 million, hinting at 13.6% year-over-year growth. For 2026, the top line is anticipated to move up 9.1%. The consensus estimate for OPFI’s 2025 earnings per share stands at $1.57, indicating a 65.3% year-over-year surge. For 2026, the estimate is pinned at 8.6% growth.

Over the past 60 days, two EPS estimates for both 2025 and 2026 have been revised upward without any single downward adjustment. In the same period, the Zacks Consensus Estimate for 2025 earnings has risen 10.6%, and the estimate for 2026 has gained 15.5%. These upward revisions highlight analysts' confidence.

OppFi: A Must-Buy Stock

OPFI’s AI and ML models have improved its profitability by a significant margin and sustained growth despite increased credit risks. Banking on these tech-driven apparatuses, management has consistently raised its guidance. This gradual upliftment in profitability outlook raises investors’ confidence. Furthermore, the stock is fundamentally strong and is heavily discounted compared with its industry.

These aforementioned reasons compel us to recommend that investors buy this stock right now and enjoy capital gains in the long haul.

OPFI flaunts a Zacks Rank #1 (Strong Buy) at present. 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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