The following is a summary of the Oportun Financial Corporation (OPRT) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Oportun Financial reported Q2 revenue of $250 million, a decrease of 6% mostly due to a decline in average daily principal under a conservative credit approach, balanced by price increases.

• Adjusted net income was $3.2 million with an adjusted EPS of $0.08.

• Net revenue was impacted by a one-time $36 million unfavorable fair value mark related to selling the credit card portfolio, contributing to a 49% drop year-over-year.

• Adjusted EBITDA for Q2 was $30 million, reflecting a 109% improvement year-over-year due to lower operating expenses and net charge-offs.

Business Progress:

• Signed an LOI to sell the credit card business, simplifying the product portfolio to focus on core products: unsecured personal loans, secured personal loans, and the savings product.

• Entered a new lending collaboration with Western Union, potentially expanding customer reach significantly.

Opportunities:

• The collaboration with Western Union offers a significant opportunity to tap into a vast customer base and drive loan volume, with potential for more efficient customer acquisition.

• The credit card portfolio sale is expected to be accretive to adjusted EBITDA by approximately $4 million in 2024, streamlining Oportun's operations and focusing on its core products.

Risks:

• The sale of the credit card portfolio triggers a $36 million one-time fair value mark and an $11 million negative impact on 2024 revenue. However, the expected enhancements in adjusted EBITDA and focus on core products mitigate this risk.

More details: Oportun Financial IR

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.