Business Wire | Nov 11, 2021 04:05PM EST

OppFi Reports Third Quarter 2021 Financial Results

Nov. 11, 2021

CHICAGO--(BUSINESS WIRE)--Nov. 11, 2021--OppFi Inc. (NYSE: OPFI) ("OppFi" and "the Company"), a leading financial technology platform that powers banks to help the everyday consumer gain access to credit, today reported financial results for the third quarter ended September 30, 2021.

"We are pleased with our results for the third quarter as growth continued to rebound with a record $165 million in quarterly originations together with strong revenue and profitability, " said Jared Kaplan, Chief Executive Officer of OppFi. "We remain excited about our ability to scale the OppFi platform with a multi-product solution to serve the everyday consumer. Recently we secured financing for our SalaryTap and OppFi Card businesses which we plan to use to allow those businesses to scale. We are piloting a more personalized approach to pricing with our bank partners in our flagship installment business. We believe personalized pricing could allow us to serve an even larger portion of our addressable market and drive stronger growth over time. Furthermore, we delivered our inaugural Social Impact Report which highlights our mission of expanding credit access, while building financial health for our customers."

Financial Summary

The following table presents a summary of OppFi's results for the three and nine months ended September 30, 2021.

(in Thousands, except per share Three Months Ended Variancevalues) Unaudited September 30,

2021 2020 %

Total revenue $ 91,977 $ 62,759 46.6 %

Adjusted revenue^1 $ 91,977 $ 73,577 25.0 %

Net income $ 30,392 $ 19,342 57.1 %

Adjusted net income^1 $ 17,362 $ 19,484 (10.9 %)

Adjusted EBITDA^1 $ 31,779 $ 32,402 (1.9 %)

Basic and diluted EPS $ 1.06 $ - -

Adjusted basic and diluted EPS^1 $ 0.21 $ - -

(in Thousands, except per share values) Unaudited

Nine Months Ended September 30,

Variance

2021

2020

%

Total revenue

$

254,610

$

198,693

28.1

%

Adjusted revenue1

$

254,610

$

236,157

7.8

%

Net income

$

72,763

$

61,358

18.6

%

Adjusted net income1

$

54,439

$

34,079

59.7

%

Adjusted EBITDA1

$

96,418

$

66,445

45.1

%

Basic and diluted EPS

$

1.08

$

-

-

Adjusted basic and diluted EPS1

$

0.64

$

-

-

Third Quarter Key Performance Metrics

The following table represents key third quarter metrics.

(in Thousands, except per share values) Nine Months Ended VarianceUnaudited September 30,

2021 2020 %

Total revenue $ 254,610 $ 198,693 28.1 %

Adjusted revenue^1 $ 254,610 $ 236,157 7.8 %

Net income $ 72,763 $ 61,358 18.6 %

Adjusted net income^1 $ 54,439 $ 34,079 59.7 %

Adjusted EBITDA^1 $ 96,418 $ 66,445 45.1 %

Basic and diluted EPS $ 1.08 $ - -

Adjusted basic and diluted EPS^1 $ 0.64 $ - -

Third Quarter Key Performance Metrics

The following table represents key third quarter metrics.



($ in Thousands, except marketing cost As of and for the Three Months Endedper loan information) Unaudited

Sept. 30, June 30, Sept. 30, 2021 2021 2020

Total Net Originations^(a) $ 164,547 $ 143,983 $ 131,236

Ending Receivables^(b) $ 293,279 $ 260,377 $ 240,275

% of Originations by Bank Partners 93 % 93 % 65 %

Net Charge-Offs as % of Average 36 % 28 % 24 %Receivables^(c)

Auto-Approval Rate^(d) 58 % 51 % 21 %

Marketing Cost per Funded Loan^(e) $ 89 $ 72 $ 62

Marketing Cost per New Funded Loan^(f) $ 255 $ 245 $ 212

a.

Total net originations include both originations by bank partners on the OppFi platform, as well as direct originations by OppFi.

b.

Receivables are defined as unpaid principal balances of both on- and off-balance sheet loans.

c.

Annualized net charge-offs as a percentage of average receivables (defined as unpaid principal of both on- and off-balance sheet loans) represents total charge offs from the period less recoveries as a percent of average receivables. Finance receivables are charged off at the earlier of the time when accounts reach 90 days past due on a recency basis, when OppFi receives notification of a customer bankruptcy or is otherwise deemed uncollectible.

d.

Auto-Approval Rate is calculated by taking the number of approved loans that are not decisioned by a loan advocate or underwriter (auto-approval) divided by the total number of loans approved.

e.

Marketing Cost per Funded Loan represents marketing cost per funded loan for new and refinanced loans. This metric is the amount of direct marketing costs incurred during a period divided by the number of loans originated during that same period.

f.

Marketing Cost per New Funded Loan represents marketing cost for new loans. This metric is the amount of direct marketing costs incurred during a period divided by the number of new loans originated during that same period.

Financial Capacity and Capital Resources

As of September 30, 2021, the Company had $56.8 million in total cash and an additional $225.5 million of unused debt capacity under its financing facilities for future availability, representing a 52% overall undrawn capacity. Including total financing commitments of $433.0 million, and cash on the balance sheet of $56.8 million, the Company had approximately $490 million in funding capacity as of September 30, 2021. On September 30, 2021 OppFi expanded its existing bank credit facility to $45 million to facilitate the growth and expansion of its SalaryTap business.

Full Year 2021 Outlook

The company is reiterating its expected full year 2021 financial outlook:

* Revenue between $350 and $360 million * Adjusted EBITDA between $120 million to $125 million(1) * Adjusted Net Income between $62 million and $66 million(1)

OppFi's expectations for its full year 2021 Revenue, Adjusted EBITDA and Adjusted Net Income were prepared based on various material assumptions, including the following:

* Ending receivables(2) of approximately $315- $325 million, which would represent approximately 15 to 20% year over year growth, reduced from previous expectations due to the slower than expected demand recovery * Net charge-offs as a percentage of average receivables(2) of approximately 35% to 40% due to lower growth in receivables * Yield consistent with historical levels for fourth quarter 2021

The Company plans to provide its full year 2022 financial outlook in connection with reporting 2021 year end results.

Conference Call

Management will host a webcast and conference call on Thursday, November 11, 2021 at 5:00 pm ET to discuss the Company's financial results for the third quarter ended September 30, 2021. The conference call will be made available in the Investor Relations page of the Company's website. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register.

The conference call can also be accessed by the following dial-in information:

* Conference ID: 13724191 * Domestic: 1-877-705-6003 * International: 1-201-493-6725

A replay of the call will also be available on the Company's website approximately two hours after the live call through November 25, 2021. To access the replay, dial 1-844-512-2921 (Domestic) or 1-412-317-6671 (International). The replay pin number is 13724191.

Third Quarter Results of Operations

The following table presents OppFi's consolidated results of operations for the three and nine months ended September 30, 2021 and September 30, 2020. The consolidated results of operations reflect the transition on January 1, 2021, to the fair value ("FV") accounting method for certain receivables from the incurred credit loss application method. The below tables represent unaudited income statements that compare year over year performance as well as a pro forma basis for the application of the FV methodology.

GAAP Income Statements

a. Total net originations include both originations by bank partners on the OppFi platform, as well as direct originations by OppFi.

b. Receivables are defined as unpaid principal balances of both on- and off-balance sheet loans.

Annualized net charge-offs as a percentage of average receivables (defined as unpaid principal of both on- and off-balance sheet loans) represents total charge offs from the period less recoveries as a percent of averagec. receivables. Finance receivables are charged off at the earlier of the time when accounts reach 90 days past due on a recency basis, when OppFi receives notification of a customer bankruptcy or is otherwise deemed uncollectible.

Auto-Approval Rate is calculated by taking the number of approved loansd. that are not decisioned by a loan advocate or underwriter (auto-approval) divided by the total number of loans approved.

Marketing Cost per Funded Loan represents marketing cost per funded loane. for new and refinanced loans. This metric is the amount of direct marketing costs incurred during a period divided by the number of loans originated during that same period.

Marketing Cost per New Funded Loan represents marketing cost for newf. loans. This metric is the amount of direct marketing costs incurred during a period divided by the number of new loans originated during that same period.

Financial Capacity and Capital Resources

As of September 30, 2021, the Company had $56.8 million in total cash and an additional $225.5 million of unused debt capacity under its financing facilities for future availability, representing a 52% overall undrawn capacity. Including total financing commitments of $433.0 million, and cash on the balance sheet of $56.8 million, the Company had approximately $490 million in funding capacity as of September 30, 2021. On September 30, 2021 OppFi expanded its existing bank credit facility to $45 million to facilitate the growth and expansion of its SalaryTap business.

Full Year 2021 Outlook

The company is reiterating its expected full year 2021 financial outlook:

* Revenue between $350 and $360 million * Adjusted EBITDA between $120 million to $125 million(1) * Adjusted Net Income between $62 million and $66 million(1)

OppFi's expectations for its full year 2021 Revenue, Adjusted EBITDA and Adjusted Net Income were prepared based on various material assumptions, including the following:

* Ending receivables(2) of approximately $315- $325 million, which would represent approximately 15 to 20% year over year growth, reduced from previous expectations due to the slower than expected demand recovery * Net charge-offs as a percentage of average receivables(2) of approximately 35% to 40% due to lower growth in receivables * Yield consistent with historical levels for fourth quarter 2021

The Company plans to provide its full year 2022 financial outlook in connection with reporting 2021 year end results.

Conference Call

Management will host a webcast and conference call on Thursday, November 11, 2021 at 5:00 pm ET to discuss the Company's financial results for the third quarter ended September 30, 2021. The conference call will be made available in the Investor Relations page of the Company's website. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register.

The conference call can also be accessed by the following dial-in information:

* Conference ID: 13724191 * Domestic: 1-877-705-6003 * International: 1-201-493-6725

A replay of the call will also be available on the Company's website approximately two hours after the live call through November 25, 2021. To access the replay, dial 1-844-512-2921 (Domestic) or 1-412-317-6671 (International). The replay pin number is 13724191.

Third Quarter Results of Operations

The following table presents OppFi's consolidated results of operations for the three and nine months ended September 30, 2021 and September 30, 2020. The consolidated results of operations reflect the transition on January 1, 2021, to the fair value ("FV") accounting method for certain receivables from the incurred credit loss application method. The below tables represent unaudited income statements that compare year over year performance as well as a pro forma basis for the application of the FV methodology.

GAAP Income Statements

(in Thousands, except per share values) Three Months Ended ChangeUnaudited September 30,

2021 2020 %

Interest and loan related income, gross $ 91,448 $ 73,311 24.7 %(a)

Other income 529 266 98.9 %

Interest, loan related, and other $ 91,977 $ 73,577 25.0 %Income

Amortization of loan origination costs - (10,818) -

Total revenue $ 91,977 $ 62,759 46.6 %

Total provision (143) (17,880) 99.2 %

Change in fair value of finance (18,940) - - receivables

Net revenue $ 72,894 $ 44,879 62.4 %

Total expenses 61,382 25,537 140.4 %

Income from operations $ 11,512 $ 19,342 (40.5) %

Gain of loan forgiveness of Paycheck 6,444 - - Protection Program loan

Change in fair value of warrant 13,139 - - liability

Income before income taxes $ 31,095 $ 19,342 60.8 %

Provision for income taxes 703 - -

Net income $ 30,392 $ 19,342 57.1 %

Less: net income attributable to 16,267 noncontrolling interest

Net income attributable to OppFi Inc. $ 14,125



Earnings per share attributable to OppFi Inc. (b):

Earnings per common share:

Basic $ 1.06 $ -

Diluted $ 1.06 $ -

Weighted average common shares outstanding:

Basic 13,363,995 -

Diluted 13,363,995 -

(a)

Loan Related Income primarily consists of non-sufficient funds fees, which are immaterial and were discontinued during Q1 2021. Interest income related to finance receivables accounted for under the fair value option is included in "Interest and loan related income, gross" in the consolidated statements of operations.

(b)

Prior to the Reverse Recapitalization, all net income was attributable to the noncontrolling interest. For the periods prior to July 20, 2021, earnings per share was not calculated, as net income prior to the Business Combination was attributable entirely to OppFi-LLC.

Loan Related Income primarily consists of non-sufficient funds fees, which are immaterial and were discontinued during Q1 2021. Interest(a) income related to finance receivables accounted for under the fair value option is included in "Interest and loan related income, gross" in the consolidated statements of operations.

Prior to the Reverse Recapitalization, all net income was attributable to(b) the noncontrolling interest. For the periods prior to July 20, 2021, earnings per share was not calculated, as net income prior to the Business Combination was attributable entirely to OppFi-LLC.

(in Thousands, except per share values) Unaudited

Nine Months Ended September 30,

Change

2021

2020

%

Interest and loan related income, gross (a)

$

253,581

$

235,651

7.6

%

Other income

1,029

506

106.4

%

Interest, loan related, and other Income

$

254,610

$

236,157

7.8

%

Amortization of loan origination costs

-

(37,464)

-

Total revenue

$

254,610

$

198,693

28.1

%

Total provision

(181)

(62,755)

99.7

%

Change in fair value of finance receivables

(52,635)

-

-

Net revenue

$

201,794

$

135,938

48.4

%

Total expenses

147,911

74,580

98.3

%

Income from operations

$

53,883

$

61,358

(12.2)

%

Gain of loan forgiveness of Paycheck Protection Program loan

6,444

-

-

Change in fair value of warrant liability

13,139

-

-

Income before income taxes

$

73,466

$

61,358

19.7

%

Provision for income taxes

703

-

-

Net income

$

72,763

$

61,358

18.6

%

Less: net income attributable to noncontrolling interest

58,638

Net income attributable to OppFi Inc.

$

14,125

Earnings per share attributable to OppFi Inc. (b):

Earnings per common share:

Basic

$

1.08

$

-

Diluted

$

1.08

$

-

Weighted average common shares outstanding:

Basic

13,107,873

-

Diluted

13,107,873

-

(in Thousands, except per share Nine Months Ended September Changevalues) Unaudited 30,

2021 2020 %

Interest and loan related income, $ 253,581 $ 235,651 7.6 %gross (a)

Other income 1,029 506 106.4 %

Interest, loan related, and other $ 254,610 $ 236,157 7.8 %Income

Amortization of loan origination costs - (37,464) -

Total revenue $ 254,610 $ 198,693 28.1 %

Total provision (181) (62,755) 99.7 %

Change in fair value of finance (52,635) - - receivables

Net revenue $ 201,794 $ 135,938 48.4 %

Total expenses 147,911 74,580 98.3 %

Income from operations $ 53,883 $ 61,358 (12.2) %

Gain of loan forgiveness of Paycheck 6,444 - - Protection Program loan

Change in fair value of warrant 13,139 - - liability

Income before income taxes $ 73,466 $ 61,358 19.7 %

Provision for income taxes 703 - -

Net income $ 72,763 $ 61,358 18.6 %

Less: net income attributable to 58,638 noncontrolling interest

Net income attributable to OppFi Inc. $ 14,125



Earnings per share attributable to OppFi Inc. (b):

Earnings per common share:

Basic $ 1.08 $ -

Diluted $ 1.08 $ -

Weighted average common shares outstanding:

Basic 13,107,873 -

Diluted 13,107,873 -

(a)

Loan Related Income primarily consists of non-sufficient funds fees, which are immaterial and were discontinued during Q1 2021. Interest income related to finance receivables accounted for under the fair value option is included in "Interest and loan related income, gross" in the consolidated statements of operations.

(b)

Prior to the Reverse Recapitalization, all net income was attributable to the noncontrolling interest. For the periods prior to July 20, 2021, earnings per share was not calculated, as net income prior to the Business Combination was attributable entirely to OppFi-LLC.

Fair Value Pro Forma Income Statements (a)

Loan Related Income primarily consists of non-sufficient funds fees, which are immaterial and were discontinued during Q1 2021. Interest(a) income related to finance receivables accounted for under the fair value option is included in "Interest and loan related income, gross" in the consolidated statements of operations.

Prior to the Reverse Recapitalization, all net income was attributable to(b) the noncontrolling interest. For the periods prior to July 20, 2021, earnings per share was not calculated, as net income prior to the Business Combination was attributable entirely to OppFi-LLC.

Fair Value Pro Forma Income Statements (a)

(in Thousands, except per share values) Three Months Ended ChangeUnaudited September 30,

2021 2020 %

Total revenue $ 91,977 $ 73,577 25.0 %

Total provision (143) - -

Fair value adjustment (b) (18,940) (11,880) (59.4) %

Net revenue $ 72,894 $ 61,697 18.1 %

Expenses

Sales and marketing 15,633 9,513 64.3 %

Customer operations 10,550 9,414 12.1 %

Technology, products, and analytics 7,329 5,080 44.3 %

General, administrative, and other 21,456 7,982 168.8 %

Total expenses before interest expense $ 54,968 $ 31,989 71.8 %

Interest expense (c) 6,414 4,653 37.8 %

Income from operations $ 11,512 $ 25,055 (54.1) %

Gain of forgiveness of PPP loan 6,444 - -

Change in fair value of warrant 13,139 - - liability

Income before income taxes $ 31,095 $ 25,055 24.1 %

Provision for income taxes 703 - -

Net income $ 30,392 $ 25,055 21.3 %

Less: net income attributable to 16,267 noncontrolling interest

Net income attributable to OppFi Inc. $ 14,125



Earnings per share attributable to OppFi Inc. (d):

Earnings per common share:

Basic $ 1.06 $ -

Diluted $ 1.06 $ -

Weighted average common shares outstanding:

Basic 13,363,995 -

Diluted 13,363,995 -

(a)The pro forma fair value accounting adjustments are due to OppFi's transition from an incurred credit loss application to a fair value application acceptable under US GAAP. Historically, under the incurred credit loss application, OppFi has reserved for life losses due to the short duration of receivables. These financial measures are not prepared in accordance with accounting principles generally accepted in the United States and may be different from non-GAAP financial measures used by other companies.

(b)Fair value adjustment of $11.9 million includes net charge-offs of $13.9 million and a fair market value adjustment of ($2.0 million) driven by higher receivables and a higher fair market value mark.

(c)Includes debt amortization costs.

(d)Prior to the Reverse Recapitalization, all net income was attributable to the noncontrolling interest. For the periods prior to July 20, 2021, earnings per share was not calculated, as net income prior to the Business Combination was attributable entirely to OppFi-LLC.

The pro forma fair value accounting adjustments are due to OppFi's transition from an incurred credit loss application to a fair value application acceptable under US GAAP. Historically, under the incurred credit loss application, OppFi has reserved for life losses due to the(a) short duration of receivables. These financial measures are not prepared in accordance with accounting principles generally accepted in the United States and may be different from non-GAAP financial measures used by other companies.

Fair value adjustment of $11.9 million includes net charge-offs of $13.9(b) million and a fair market value adjustment of ($2.0 million) driven by higher receivables and a higher fair market value mark.

(c) Includes debt amortization costs.

Prior to the Reverse Recapitalization, all net income was attributable to the noncontrolling interest. For the periods prior to July 20, 2021,(d) earnings per share was not calculated, as net income prior to the Business Combination was attributable entirely to OppFi-LLC.

(in Thousands, except per share values) UnauditedNine Months Ended September 30,

Change

2021

2020

%

Total revenue

$

254,610

$

236,157

7.8

%

Total provision

(181)

-

-

Fair value adjustment (a)

(52,635)

(87,470)

39.8

%

Net revenue

$

201,794

$

148,687

35.7

%

Expenses

Sales and marketing

35,114

25,539

38.5

%

Customer operations

30,036

28,030

7.2

%

Technology, products, and analytics

19,669

14,254

38.0

%

General, administrative, and other

45,687

21,200

115.5

%

Total expenses before interest expense

$

130,506

$

88,843

46.9

%

Interest expense (b)

17,405

16,582

5.0

%

Income from operations

$

53,883

$

43,262

24.6

%

Gain of forgiveness of PPP loan

6,444

-

-

Change in fair value of warrant liability

13,139

-

-

Income before income taxes

$

73,466

$

43,262

69.8

%

Provision for income taxes

703

-

-

Net income

$

72,763

$

43,262

68.2

%

Less: net income attributable to noncontrolling interest

58,638

Net income attributable to OppFi Inc.

$

14,125

Earnings per share attributable to OppFi Inc. (c):

Earnings per common share:

Basic

$

1.08

-

Diluted

$

1.08

-

Weighted average common shares outstanding:

Basic

13,107,873

-

Diluted

13,107,873

-

(in Thousands, except per share values) Nine Months Ended September ChangeUnaudited 30,

2021 2020 %

Total revenue $ 254,610 $ 236,157 7.8 %

Total provision (181) - -

Fair value adjustment (a) (52,635) (87,470) 39.8 %

Net revenue $ 201,794 $ 148,687 35.7 %

Expenses

Sales and marketing 35,114 25,539 38.5 %

Customer operations 30,036 28,030 7.2 %

Technology, products, and analytics 19,669 14,254 38.0 %

General, administrative, and other 45,687 21,200 115.5 %

Total expenses before interest expense $ 130,506 $ 88,843 46.9 %

Interest expense (b) 17,405 16,582 5.0 %

Income from operations $ 53,883 $ 43,262 24.6 %

Gain of forgiveness of PPP loan 6,444 - -

Change in fair value of warrant 13,139 - - liability

Income before income taxes $ 73,466 $ 43,262 69.8 %

Provision for income taxes 703 - -

Net income $ 72,763 $ 43,262 68.2 %

Less: net income attributable to 58,638 noncontrolling interest

Net income attributable to OppFi Inc. $ 14,125



Earnings per share attributable to OppFi Inc. (c):

Earnings per common share:

Basic $ 1.08 -

Diluted $ 1.08 -

Weighted average common shares outstanding:

Basic 13,107,873 -

Diluted 13,107,873 -

(a)Fair value adjustment of $87.5 million includes net charge-offs of $69.8 million and a fair market value Adjustment of $17.6 million driven by lower receivables and a lower fair market value mark as a result of the COVID-19 pandemic.

(b)Includes debt amortization costs.

(c)Prior to the Reverse Recapitalization, all net income was attributable to the noncontrolling interest. For the periods prior to July 20, 2021, earnings per share was not calculated, as net income prior to the Business Combination was attributable entirely to OppFi-LLC.

Condensed Balance Sheets

Comparison September 30, 2021 and December 31, 2020

The following table presents OppFi's condensed balance sheet for September 30, 2021 and December 31, 2020:

Fair value adjustment of $87.5 million includes net charge-offs of $69.8 million and a fair market value Adjustment of $17.6 million driven by(a) lower receivables and a lower fair market value mark as a result of the COVID-19 pandemic.

(b) Includes debt amortization costs.

Prior to the Reverse Recapitalization, all net income was attributable to the noncontrolling interest. For the periods prior to July 20, 2021,(c) earnings per share was not calculated, as net income prior to the Business Combination was attributable entirely to OppFi-LLC.

Condensed Balance Sheets

Comparison September 30, 2021 and December 31, 2020

The following table presents OppFi's condensed balance sheet for September 30, 2021 and December 31, 2020:

(in Thousands, except per share values) September 30, December 31,Unaudited 2021 2020

Assets

Cash and restricted cash $ 56,802 $ 45,657

Finance receivables at fair value 334,114 -

Finance receivables at amortized cost, 1,269 222,243net

Other Assets 48,469 17,943

Total assets $ 440,654 $ 285,843



Liabilities and stockholders'/members' equity

Other liabilities $ 51,976 $ 28,406

Total debt 225,759 158,105

Warrant liability 24,506 -

Total liabilities 302,241 186,511

Total stockholders'/members' equity 138,413 99,332

Total liabilities and stockholders'/members' $ 440,654 $ 285,843equity

Total cash increased by $11.1 million as of September 30, 2021, driven by free cash flow from operations as well as increased borrowings under OppFi's refinanced corporate credit facility and higher utilization of senior debt to finance receivables growth, transaction expenses, and tax distributions. Finance receivables in 2021 increased due to higher unpaid on-balance principal balances as well as the election of the fair value option in 2021. Other assets grew by $30.5 million driven by the addition of a deferred tax asset of $23.9 million related to the business combination, as well as $4.3 million of prepaid expenses and $3.3 million of property, equipment and capitalized technology costs, partially offset by a reduction of $0.9 million of debt issuance costs.

Other liabilities increased by $23.6 million driven by the creation of a tax receivable agreement liability of $22.9 million related to the business combination. Total debt increased by $67.7 million driven by an increase in utilization of leverage facilities of $49.2 million and a $24.8 million net impact of the corporate credit facility refinancing, partially offset by $6.4 million of loan forgiveness of the PPP loan.

Total equity increased by $39.1 million driven by net income for the first nine months of $72.8 million and the impact of the adoption of the fair value method of accounting of $69.4 million, partially offset by distributions of $50.8 million and transaction related adjustments to equity of $52.3 million.

As of September 30, 2021, OppFi had 84.5 million shares of common stock outstanding, excluding 25.5 million shares of common stock associated with earnouts. Adjusted earnings per share for the third quarter was $0.20 and for the first nine months of 2021 was $0.64. Earnings per share for the three and nine months ended September 20, 2021 excludes 15.3 million warrants outstanding with exercise prices at $11.50 and $15.00 per share as well as 5.6 million of employee stock options at exercise prices of $10.45 and $20.00 per share as these securities are anti-dilutive.

About OppFi

OppFi (NYSE: OPFI) is a leading financial technology platform that powers banks to offer accessible products and a top-rated experience to everyday consumers. OppFi's platform facilitates the installment loan products, OppLoans and SalaryTap, and the credit card product, OppFi Card. The company has been an Inc. 5000 company for six straight years, a two-time Deloitte's Technology Fast 500(tm), and the seventh fastest-growing company in Chicagoland in 2021 by Crain's Chicago Business. The company was also listed on the Forbes America 2021 list of America's Best Startup Employers and Built In's 2021 Best Places to Work in Chicago. OppFi maintains an A+ rating from the Better Business Bureau (BBB) and maintains a 4.8/5 star rating with more than 14,000 online customer reviews, making it one of the top customer-rated financial platforms online. For more information, please visit oppfi.com.

Forward-Looking Statements

This press release includes "forward-looking statements'' within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. OppFi's actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "possible," "continue," and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, without limitation, OppFi's expectations for its full year 2021 revenue, Adjusted EBITDA and Adjusted Net Income, OppFi's expectations with respect to the future performance of OppFi's platform, OppFi's expectations for its growth and profitability and OppFi's new products, including SalaryTap and OppFi Card, and their performance. These forward-looking statements are based on OppFi's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside OppFi's control and are difficult to predict. Factors that may cause such differences include, but are not limited to: the impact of COVID-19 on OppFi's business; the impact of stimulus or other government programs; the risk that the business combination disrupts current plans and operations; the ability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition, the ability of OppFi to grow and manage growth profitably and retain its key employees; costs related to the business combination; changes in applicable laws or regulations; the possibility that OppFi may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties indicated from time to time in OppFi's filings with the United States Securities and Exchange Commission, in particular, contained in the section or sections captioned "Risk Factors." OppFi cautions that the foregoing list of factors is not exclusive, and readers should not place undue reliance upon any forward-looking statements, which speak only as of the date made. OppFi does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures that are unaudited and do not conform to GAAP, such as Adjusted Revenue, Adjusted Basic and Diluted EPS, Adjusted Net Income and Adjusted EBITDA. Adjusted Revenue is defined as Total Revenue adjusted to include amortization of loan origination costs. Adjusted Net Income is defined as current earnings before tax for audited annual financials and unaudited for quarterly financials, pro forma for fair value accounting for finance receivables adoption, plus (1) recruiting fees, severance and relocation, (2) amortization of debt transaction costs and (3) other addbacks and one-time expenses following the closing of the business combination, including one-time implementation fees, stock compensation expenses, IPO readiness costs and management fees; and assumes a tax rate of 25% prior to the three months ended September 30, 2021 and a 23.99% tax rate after . Adjusted EBITDA is defined as Adjusted Net Income, pro forma for fair value accounting for finance receivables adoption, plus (1) taxes at an assumed 25% tax rate prior to the three months ended September 30, 2021 and a 23.99% tax rate after for change in tax status upon completion of the business combination, (2) depreciation and amortization, (3) interest expense and (4) business (non-income) taxes. Adjusted Basic and Diluted EPS is defined as adjusted net income divided by adjusted shares outstanding, which represent shares outstanding as of September 30, 2021 excluding earnout shares. The pro forma fair value accounting adjustments are due to OppFi's transition from an incurred credit loss application to a fair value application acceptable under US GAAP. Historically, under the incurred credit loss application, OppFi has reserved for life losses due to the short duration of receivables. These financial measures are not prepared in accordance with accounting principles generally accepted in the United States and may be different from non-GAAP financial measures used by other companies. OppFi believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. These non-GAAP measures with comparable names should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. A reconciliation for OppFi's non-GAAP financial measures to the most directly comparable GAAP financial measures is in the table below.

The Non-GAAP financial measures of Adjusted EBITDA and Adjusted Net Income for the full year 2021 are provided in this press release only on a non-GAAP basis because a reconciliation to the most comparable GAAP financial measures, Net Revenue and GAAP Net Income, is not available without unreasonable effort. OppFi believes that such items and, accordingly, the other items of the reconciliation, would require an unreasonable effort to predict with reasonable certainty the amount or timing of non-GAAP adjustments used to calculate these Non-GAAP financial measures. OppFi believes that any such forecast would result in a broad range of projected values that would not be meaningful to investors.

Reconciliation of Non-GAAP Financial Measures

Adjusted EBITDA

(in Thousands, except per share Three Months Endedvalues) Unaudited Change September 30,

2021 2020 %

Net income $ 30,392 $ 19,342 57.1 %

Provision for income taxes 703 - -

FV adjustments - 5,713 -

Debt amortization 572 474 20.7 %

Other addback and one-time expenses (8,825) 450 (2,061.1) %(a)

Adjusted EBT^1 $ 22,842 $ 25,979 (12.1) %

Less: pro forma taxes (b) (5,480) (6,495) (15.6) %

Adjusted net income^1 $ 17,362 $ 19,484 (10.9) %

Pro forma taxes (b) 5,480 6,495 (15.6) %

Depreciation and amortization 2,712 1,799 50.8 %

Interest expense 5,841 4,180 39.7 %

Business (non-income) taxes 383 444 (13.7)

Net gain/loss on sale of asset 1 - -

Adjusted EBITDA^1 $ 31,779 $ 32,402 (1.9) %



Adjusted basic and diluted EPS^1 (c): $ 0.21 $ -

Adjusted weighted average shares 84,464,783 - outstanding:

(a)

Other addback and one-time expense of ($8.8 million) includes a ($13.1 million) addback due to change in fair value of warrant liability, a ($6.4 million) addback due to gain of forgiveness of PPP loan, and a $10.7 million impact to the G&A line item in expenses comprised of: $8.5 million in one-time expenses related to the business combination, $0.9 million in profit interest and stock compensation, $0.9 million in a change in fair value of warrant outstanding prior to business combination, and $0.4 million in other one-time expense.

(b)

Assumes a tax rate of 25% prior to the three months ended September 30, 2021 and a 23.99% tax rate after reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes, in order to allow for a comparison with other publicly traded companies.

(c)

Prior to the Reverse Recapitalization, all net income was attributable to the noncontrolling interest. For the periods prior to July 20, 2021, earnings per share was not calculated, as net income prior to the Business Combination was attributable entirely to OppFi-LLC.

Other addback and one-time expense of ($8.8 million) includes a ($13.1 million) addback due to change in fair value of warrant liability, a ($6.4 million) addback due to gain of forgiveness of PPP loan, and a(a) $10.7 million impact to the G&A line item in expenses comprised of: $8.5 million in one-time expenses related to the business combination, $0.9 million in profit interest and stock compensation, $0.9 million in a change in fair value of warrant outstanding prior to business combination, and $0.4 million in other one-time expense.

Assumes a tax rate of 25% prior to the three months ended September 30,(b) 2021 and a 23.99% tax rate after reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes, in order to allow for a comparison with other publicly traded companies.

Prior to the Reverse Recapitalization, all net income was attributable to(c) the noncontrolling interest. For the periods prior to July 20, 2021, earnings per share was not calculated, as net income prior to the Business Combination was attributable entirely to OppFi-LLC.

(in Thousands, except per share values) Unaudited

Nine Months Ended September 30,

Change

2021

2020

%

Net income

$

72,763

$

61,358

18.6

%

Provision for income taxes

703

-

-

FV adjustments

-

(18,096)

-

Debt amortization

1,735

1,451

19.6

%

Other addback and one-time expenses (a)

(2,923)

726

(502.6)

%

Adjusted EBT1

$

72,278

$

45,439

59.1

%

Less: pro forma taxes (b)

(17,839)

(11,360)

57.0

%

Adjusted net income1

$

54,439

$

34,079

59.7

%

Pro forma taxes (b)

17,839

11,360

57.0

%

Depreciation and amortization

7,289

4,775

52.6

%

Interest expense

15,671

15,131

3.6

%

Business (non-income) taxes

1,175

1,100

6.8

%

Net gain/loss on sale of asset

5

-

-

%

Adjusted EBITDA1

$

96,418

$

66,445

45.1

%

Adjusted basic and diluted EPS1 (c):

$

0.64

$

-

Adjusted weighted average shares outstanding:

84,464,783

-

(in Thousands, except per share Nine Months Ended Changevalues) Unaudited September 30,

2021 2020 %

Net income $ 72,763 $ 61,358 18.6 %

Provision for income taxes 703 - -

FV adjustments - (18,096) -

Debt amortization 1,735 1,451 19.6 %

Other addback and one-time expenses (2,923) 726 (502.6) %(a)

Adjusted EBT^1 $ 72,278 $ 45,439 59.1 %

Less: pro forma taxes (b) (17,839) (11,360) 57.0 %

Adjusted net income^1 $ 54,439 $ 34,079 59.7 %

Pro forma taxes (b) 17,839 11,360 57.0 %

Depreciation and amortization 7,289 4,775 52.6 %

Interest expense 15,671 15,131 3.6 %

Business (non-income) taxes 1,175 1,100 6.8 %

Net gain/loss on sale of asset 5 - - %

Adjusted EBITDA^1 $ 96,418 $ 66,445 45.1 %



Adjusted basic and diluted EPS^1 (c): $ 0.64 $ -

Adjusted weighted average shares 84,464,783 - outstanding:

(a)

Other addback and one-time expense of ($2.9 million) includes a ($13.1 million) addback due to change in fair value of warrant liability, a ($6.4 million) addback due to gain of forgiveness of PPP loan, and a $16.6 million impact to the G&A line item in expenses comprised of: $10.1 million in one-time expenses related to the business combination, $1.2 million in profit interest and stock compensation, $4.2 million in a change in fair value of warrant outstanding prior to business combination, and $1.1 million in other one-time expense.

(b)

Assumes a tax rate of 25% prior to the three months ended September 30, 2021 and a 23.99% tax rate after reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes, in order to allow for a comparison with other publicly traded companies.

(c)

Prior to the Reverse Recapitalization, all net income was attributable to the noncontrolling interest. For the periods prior to July 20, 2021, earnings per share was not calculated, as net income prior to the Business Combination was attributable entirely to OppFi-LLC.

Adjusted Revenue

Other addback and one-time expense of ($2.9 million) includes a ($13.1 million) addback due to change in fair value of warrant liability, a ($6.4 million) addback due to gain of forgiveness of PPP loan, and a(a) $16.6 million impact to the G&A line item in expenses comprised of: $10.1 million in one-time expenses related to the business combination, $1.2 million in profit interest and stock compensation, $4.2 million in a change in fair value of warrant outstanding prior to business combination, and $1.1 million in other one-time expense.

Assumes a tax rate of 25% prior to the three months ended September 30,(b) 2021 and a 23.99% tax rate after reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes, in order to allow for a comparison with other publicly traded companies.

Prior to the Reverse Recapitalization, all net income was attributable to(c) the noncontrolling interest. For the periods prior to July 20, 2021, earnings per share was not calculated, as net income prior to the Business Combination was attributable entirely to OppFi-LLC.

Adjusted Revenue

(in Thousands, except per share Three Months Ended Septembervalues) 30, VarianceUnaudited

2021 2020 %

Total revenue $ 91,977 $ 62,759 46.6 %

Amortization of loan origination - 10,818 -- costs

Adjusted revenue^1 $ 91,977 $ 73,577 25.0 %



(in Thousands, except per share Nine Months Ended Septembervalues) 30, VarianceUnaudited

2021 2020 %

Total revenue $ 254,610 $ 198,693 28.1 %

Amortization of loan origination - 37,464 -- costs

Adjusted revenue^1 $ 254,610 $ 236,157 7.8 %

Adjusted Shares as Reflected in Adjusted Basic and Diluted Earnings Per Share

Three Months and Nine Months Ended September 30,

Unaudited 2021 2020

Class A Common Stock outstanding at 13,464,542 - period end

Class V Common Stock outstanding at 96,500,241 - period end

Elimination of earnouts at period (25,500,000) - end

Adjusted shares outstanding 84,464,783 -

Adjusted Basic and Diluted EPS

Three Months Ended September 30,

Unaudited 2021 2020

Adjusted net income (thousands)^1 $ 17,362 $ 19,484

Adjusted shares outstanding 84,464,783 -

Adjusted basic and diluted EPS: $ 0.21 $ -

Nine Months Ended September 30,

Unaudited

2021

2020

Adjusted net income (in thousands)1

$

54,439

$

34,079

Adjusted shares outstanding

84,464,783

-

Adjusted basic and diluted EPS:

$

0.64

$

-

Fair Value Pro Forma

Nine Months Ended September 30,

Unaudited 2021 2020

Adjusted net income (in thousands)^1 $ 54,439 $ 34,079

Adjusted shares outstanding 84,464,783 -

Adjusted basic and diluted EPS: $ 0.64 $ -

Fair Value Pro Forma

(in Thousands, except per share Three Months Ended September 30, 2020values) Unaudited

As Reported FV FV Pro Adjustments Forma

Total revenue $ 62,759 $ 10,818 $ 73,577

Total provision (17,880 ) 17,880 -

Fair value adjustment (a) - (11,880 ) (11,880 )

Net revenue $ 44,879 $ 16,818 $ 61,697

Expenses -

Sales and marketing 3,693 5,820 9,513

Customer operations 4,129 5,285 9,414

Technology, products, and analytics 5,080 - 5,080

General, administrative, and other 7,982 - 7,982

Total expenses before interest expense $ 20,884 $ 11,105 $ 31,989

Interest expense (b) 4,653 - 4,653

Income from operations $ 19,342 $ 5,713 $ 25,055

(a)

FV Adjustment of $11.9M includes net charge-offs of $13.9M and FMV Adjustment of ($2.0M) driven by higher receivables and FMV mark.

(b)

Includes debt amortization costs.

(a) FV Adjustment of $11.9M includes net charge-offs of $13.9M and FMV Adjustment of ($2.0M) driven by higher receivables and FMV mark.

(b) Includes debt amortization costs.

(in Thousands, except per share values) UnauditedNine Months Ended September 30, 2020

As Reported

FV Adjustments

FV Pro Forma

Total revenue

$

198,693

$

37,464

$

236,157

Total provision

(62,755

)

62,755

-

Fair value adjustment (a)

-

(87,470

)

(87,470

)

Net revenue

$

135,938

$

12,749

$

148,687

Expenses

-

-

Sales and marketing

10,185

15,174

25,359

Customer operations

12,359

15,671

28,030

Technology, products, and analytics

14,254

-

14,254

General, administrative, and other

21,200

-

21,200

Total expenses before interest expense

$

57,998

$

30,845

$

88,843

Interest expense (b)

16,582

-

16,582

Income from operations

$

61,358

$

(18,096

)

$

43,262

(in Thousands, except per share Nine Months Ended September 30, 2020values) Unaudited As Reported FV FV Pro Adjustments Forma

Total revenue $ 198,693 $ 37,464 $ 236,157

Total provision (62,755 ) 62,755 -

Fair value adjustment (a) - (87,470 ) (87,470 )

Net revenue $ 135,938 $ 12,749 $ 148,687

Expenses - -

Sales and marketing 10,185 15,174 25,359

Customer operations 12,359 15,671 28,030

Technology, products, and analytics 14,254 - 14,254

General, administrative, and other 21,200 - 21,200

Total expenses before interest expense $ 57,998 $ 30,845 $ 88,843

Interest expense (b) 16,582 - 16,582

Income from operations $ 61,358 $ (18,096 ) $ 43,262

(a)

FV Adjustment of $87.5 million includes net charge-offs of $69.8M and FMV Adjustment of $17.6M driven by lower receivables and lower FMV mark as a result of the COVID-19 pandemic.

(b)

Includes debt amortization costs.

[1] Non-GAAP Financial Measures: Adjusted Net Income, Adjusted Revenue and Adjusted EBITDA are financial measures that have not been prepared in accordance with Generally Accepted Accounting Principles ("GAAP"). See the "Note Regarding Non-GAAP Financial Measures" below for a detailed description and reconciliation of such Non-GAAP financial measures to their most directly comparable GAAP financial measures.

[2] Receivables defined as unpaid principal of both on- and off-balance sheet loans.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211111006074/en/

CONTACT: Investor Relations: Investors@oppfi.com Media Relations: media@oppfi.com