Oportun Financial Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, showing a decline in total revenue and net revenue compared to the same periods in 2023. Total revenue for the third quarter was $249.951 million, down 6.8% from $268.220 million in Q3 2023. For the nine months, total revenue decreased by 5.5% to $750.829 million from $794.295 million. Net revenue also fell, with Q3 2024 reporting $62.617 million compared to $85.136 million in Q3 2023, and nine-month net revenue at $201.817 million, down from $208.566 million.

Despite the revenue decline, Oportun managed to reduce total operating expenses significantly. Operating expenses for Q3 2024 were $102.081 million, a decrease from $122.506 million in Q3 2023. For the nine months, operating expenses dropped to $320.905 million from $404.940 million. This reduction in expenses contributed to a narrower net loss of $(29.956) million for Q3 2024, compared to $(21.138) million in Q3 2023. The nine-month net loss improved to $(87.420) million from $(138.127) million in the prior year.

Oportun's adjusted EBITDA showed a notable increase, reaching $31.366 million for Q3 2024, up from $14.455 million in Q3 2023, and $63.526 million for the nine months, compared to $8.896 million in the same period last year. The company also reported a decrease in average loan size, with the average for Q3 2024 at $3,173, down from $3,975 in Q3 2023.

The company’s liquidity position remained strong, with cash and cash equivalents totaling $71.838 million as of September 30, 2024, down from $91.187 million at the end of 2023. However, restricted cash increased to $156.699 million from $114.829 million during the same period. Total assets decreased to $3.251 billion from $3.412 billion, while total liabilities also fell to $2.924 billion from $3.007 billion.

Strategically, Oportun has focused on tightening credit standards and enhancing its loan origination processes. The company reported a 30+ day delinquency rate improvement to 5.2% as of September 30, 2024, down from 5.5% a year earlier. Additionally, Oportun has implemented cost-saving measures, including a 12% reduction in corporate staff, which is expected to yield annual savings of $30 million.

Oportun's financing activities included the issuance of $223.3 million in fixed-rate asset-backed notes and the establishment of new warehouse facilities, reflecting ongoing efforts to optimize its capital structure. The company remains compliant with all covenants related to its financing agreements.