What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-07 compared with 2025-05-09 · 197 added, 126 removed, 561 unchanged (37% of the section changed)

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Consumers are able to become members and access our products through the Oportun Mobile App and the Oportun.com website, which are our primary channels for onboarding and serving members.

As of March 31, 2025, our personal loan products are also available over the phone or through our 128 retail locations, and 473 of our Lending as a Service partner locations.

As of June 30, 2025, our personal loan products are also available over the phone or through our 127 retail locations, and 475 of our Lending as a Service partner locations.

Credit Products

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We charge fixed interest rates on our loans, which vary based on the amount disbursed and applicable state law, with a cap of 36% annual percentage rate (“APR”) in all cases.

As of March 31, 2025, for all active loans in our portfolio and at time of disbursement, the weighted average term and APR at origination was 40 months and 34.6%, respectively.

The average loan size for loans we originated during the three months ended March 31, 2025 was $3,162.

As of June 30, 2025, for all active loans in our portfolio and at time of disbursement, the weighted average term and APR at origination was 39 months and 34.8%, respectively.

The average loan size for loans we originated during the three months ended June 30, 2025 was $2,937.

Our loans do not have prepayment penalties or balloon payments, and range in size from $300 to $10,000 with terms of 12 to 54 months.

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As part of our underwriting process, we verify income for all applicants and only approve loans that meet our ability-to-pay criteria.

As of March 31, 2025, we originated unsecured personal loans in 3 states through state licenses and in 38 states through our partnership with Pathward, N.A.

As of June 30, 2025, we originated unsecured personal loans in 3 states through state licenses and in 38 states through our partnership with Pathward, N.A.

Secured Personal Loans - We also offer a personal installment loan product secured by an automobile, which we refer to as secured personal loans.

Our secured personal loans range in size from $2,525 to $18,500 with terms ranging from 24 to 64 months.

The average loan size for secured personal loans we originated during the three months ended March 31, 2025 was $6,724.

As of March 31, 2025, for all active loans in our portfolio and at time of disbursement, the weighted average term and APR at origination was 48 months and 32.0%, respectively.

The average loan size for secured personal loans we originated during the three months ended June 30, 2025 was $6,333.

As of June 30, 2025, for all active loans in our portfolio and at time of disbursement, the weighted average term and APR at origination was 47 months and 32.5%, respectively.

As part of our underwriting process, we evaluate the collateral value of the vehicle, verify income for all applicants and only approve loans that meet our ability-to-pay criteria.

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Beyond our core direct-to-consumer lending business, we leverage our proprietary credit scoring and underwriting model to partner with other consumer brands and expand our member base.

Our first Lending as a Service strategic partner was DolEx Dollar Express, Inc.

with an initial launch in December 2020.

In October of 2021, we launched another Lending as a Service partnership with Barri Financial Group in select locations (with both DolEx Dollar Express, Inc.

and Barri Financial Group now consolidated into a single company “DolFinTech”).

We recently re-launched our Lending as a Service program with a new streamlined Lead Generation program through which DolFinTech provides us with information for potential members and we are able to offer loans through our existing channels by phone, online, or in our retail locations.

In addition, we recently announced a collaboration with Western Union.

For example, we have partnered with DolFinTech in certain of their locations where they provide us with information for potential members and we are able to offer loans through our existing channels by phone, online, or in our retail locations.

In addition, we have entered into a collaboration with Western Union.

As part of these programs, Oportun originates, underwrites, and services the loan.

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To fund our growth at a low and efficient cost, we have built a diversified and well-established capital markets funding program, which allows us to partially hedge our exposure to rising interest rates or credit spreads by locking in our interest expense.

Since 2015, we have participated in 24 sponsored or co-sponsored amortizing and revolving bond offerings in the asset-backed securities market, all of which include tranches that have

been rated investment grade.

Since 2015, we have participated in 25 sponsored or co-sponsored amortizing and revolving bond offerings in the asset-backed securities market, all of which include tranches that have been rated investment grade.

We have issued one-, two- and three-year fixed rate bonds which have provided us committed capital to fund future loan originations at a fixed Cost of Debt.

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" Management's Discussion and Analysis of Financial Condition and Results of Operations " for information regarding these transactions.

Workforce Optimization and Streamlining Operations

On March 12, 2024, during our fourth quarter and full year earnings call, we announced a plan to reduce operating expenses.

In connection with the plan, we took a series of personnel and other cost saving measures inclusive of roles eliminated due to recent attrition, representing a reduction of approximately 12% of the Company’s corporate staff, which excludes retail and contact center agents.

For the three months ended March 31, 2024 and March 31, 2025, the charges we incurred were insignificant.

During the first quarter of 2024, we made the decision to close 39 retail locations and reduce a portion of the workforce who manage and operate these retail locations.

The income statement impact of $0.8 million was recorded through General, administrative and other on the Condensed Consolidated Statements of Operations (Unaudited) for the three months ended March 31, 2024 .

These amounts included expenses related to the retail location closures and all severance and benefits-related costs.

We are continually evaluating the performance of retail and partner locations.

For the three months ended March 31, 2025, the charges we incurred were insignificant.

Key Financial and Operating Metrics

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As of or for the Three Months

Ended March 31,

Ended June 30,

As of or for the Six Months

Ended June 30,

(in thousands of dollars) 2025 2024 2025 2024

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Portfolio Yield 32.8 % 33.9 % 32.9 % 33.2 %

33.0 % 32.5 %

30+ Day Delinquency Rate

4.4 % 5.0 % 4.4 % 5.0 %

Annualized Net Charge-Off Rate

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$ 2,666,793 $ 2,745,667 $ 2,685,899 $ 2,798,654

(1) As of June 30, 2024, Managed Principal Balance at End of Period, and Owned Principal Balance at End of Period included credit card amounts of $94.9 million, $94.5 million, respectively.

Average Daily Principal Balance for the three and six months ended June 30, 2024, included credit card amounts of $98.0 million and $102.8 million, respectively.

On November 12, 2024, the Company completed the sale of its credit cards receivable portfolio to a third-party credit card marketer and servicer.

See “ Glossary ” at the end of Part II of this report for formulas and definitions of our key performance metrics.

Aggregate Originations

Aggregate Originations increased to $469.4 million for the three months ended March 31, 2025 from $338.2 million for the three months ended March 31, 2024, representing a 38.8% increase.

The increase was primarily driven by additional marketing efforts to new members resulting in an increase in the number of loans originated, 142,843 and 115,912 for the three months ended March 31, 2025 and 2024, respectively.

Aggregate Originations increased to $480.8 million for the three months ended June 30, 2025 from $434.8 million for the three months ended June 30, 2024, representing a 10.6% increase.

The increase is primarily driven by a 23,424 increase in the number of loans originated primarily driven by an increase in application volume, which was partially offset by a reduction in average loan size from $3,261 to $3,067 for the three months ended June 30, 2024 and June 30, 2025, respectively.

We originated 156,734 and 133,310 loans for the three months ended June 30, 2025 and 2024, respectively.

Aggregate Originations increased to $950.2 million for the six months ended June 30, 2025 from $773.0 million for the six months ended June 30, 2024, representing an 22.9% increase.

The increase is primarily driven by a 68,080 increase in the number of loans originated, which was partially offset by a reduction in average loan size from $3,339 to $3,172 for the six months ended June 30, 2024 and June 30, 2025, respectively.

We originated 299,577 and 231,497 loans for the six months ended June 30, 2025 and 2024, respectively.

Portfolio Yield

Portfolio yield increased to 33.0% for the three months ended March 31, 2025, from 32.5% for the three months ended March 31, 2024, primarily attributable to higher pricing on our personal loan products.

Portfolio yield decreased to 32.8% for the three months ended June 30, 2025, from 33.9% for the three months ended June 30, 2024, and decreased to 32.9% for the six months ended June 30, 2025, from 33.2% for the six months ended June 30, 2024, primarily attributable to timing differences in changes in origination fee.

30+ Day Delinquency Rate

Our 30+ Day Delinquency Rate was 4.7% and 5.2% as of March 31, 2025 and 2024, respectively.

The decrease was primarily due to improved credit performance as a result of our incremental credit tightening efforts beginning with significantly tightened underwriting standards in 2022.

Our 30+ Day Delinquency Rate was 4.4% and 5.0% as of June 30, 2025 and 2024, respectively.

The decrease was primarily due to improved credit performance as a result of our incremental credit tightening efforts beginning with significantly tightened underwriting standards in 2022, as shown by a 30 basis point improvement in our back book, originations made prior to our significant credit-tightening in July 2022, 30+ day delinquency rate.

Annualized Net Charge-Off Rate

Annualized Net Charge-Off Rate for the three months ended March 31, 2025 and 2024 was 12.2% and 12.0%, respectively, up 16 basis points .

The increase was primarily driven by a decrease in our Average Daily Principal Balance of 5% to $2.7 billion from $2.9 billion for the three months ended March 31, 2025 and 2024, respectively.

This was partially offset by a $4.0 million decrease in Net Charge-offs as loans from our back-book decreased as a percentage of our owned receivables.

We expect the back book to become less impactful in 2025.

Annualized Net Charge-Off Rate for the three months ended June 30, 2025 and 2024 was 11.9% and 12.3%, respectively, down 41 basis points .

The decrease is primarily driven by a $4.9 million decrease in Net Charge-offs , partially offset by a decrease in our Average Daily Principal balance by $78.9 million, primarily due to the sale of the credit card portfolio, from $2.75 billion to $2.67 billion for the three months ended June 30, 2024 and June 30, 2025, respectively .

Annualized Net Charge-Off Rate for the six months ended June 30, 2025 and 2024 was 12.0% and 12.2%, respectively , down 13 basis points.

While the Annualized Net Charge-off Rate decreased for the three months ended June 30, 2025 and six months ended June 30, 2025, actual net charge-offs decreased by $4.9 million and $9.0 million , respectively.

This improvement was a result of significantly tightening underwriting standards in the second half of 2022 and continued 2023 efforts to tighten credit standards throughout the second half of 2023.

Beginning in July 2022, we took numerous actions to improve the credit performance on newly originated loans, including significantly tightening our underwriting standards for all borrowers, particularly for higher risk digital marketing channels, and adjusting loan size based on member free cash flow.

We also focused lending towards existing and returning members to improve credit outcomes as existing and returning members historically have had lower loss rates.

We refer to the post-July 2022 underwriting vintages as our front book and the originations made prior to our significant credit-tightening in July 2022 we refer to as the back book.

As the average life of our loans is only one year, we expect the back book to become less impactful on our losses going forward.

Historical Credit Performance

Our Annualized Net Charge-off Rate ranged between 7% and 10.1% from 2014 to 2022.

Even in 2020, during the pandemic, our Annualized Net Charge-off Rate was 9.8%.

In 2020, during the pandemic, our Annualized Net Charge-off Rate was 9.8%.

Due to credit tightening in response to the COVID-19 pandemic and government stimulus payments, our Annualized Net Charge-Off Rate decreased to 6.8% in 2021.

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In response to this increase, in the second half of 2022 and continuing throughout 2023 and 2024, we tightened our credit underwriting standards and focused lending towards existing and returning members to improve credit outcomes.

The Annualized Net Charge-Off Rate for the three months ended March 31, 2025 and 2024 was 12.2% and 12.0%, respectively.

The increase was primarily driven by a decrease in our Average Daily Principal balance by $146.4 million from $2.9 billion to $2.7 billion for the three months ended March 31, 2024 and March 31, 2025, respectively, partially offset by a $4.0 million decrease in Net Charge-offs.

For the three months ended March 31, 2025, the back book continued to season and made-up 14% of gross charge-offs while only making up approximately 4% of the loans receivable.

The Annualized Net Charge-Off Rate for the three months ended June 30, 2025 and 2024 was 11.9% and 12.3%, respectively.

The decrease was primarily driven by a $4.9 million decrease in Net Charge-offs , partially offset by a decrease in our Average Daily Principal balance by $78.9 million, primarily due to the sale of the credit card portfolio, from $2.75 billion to $2.67 billion for the three months ended June 30, 2024 and June 30, 2025, respectively .

For the six months ended June 30, 2025, the back book continued to season and made-up 10% of gross charge-offs while only making up approximately 2% of the loans receivable.

We evaluate our loan portfolio and charge a loan off at the earlier of when the loan is determined to be uncollectible.

or when loans are 120 days contractually past due.

*Numbers shown reflect year-to-date amounts for the three months ended March 31, for the indicated fiscal year.

*Numbers shown reflect year-to-date amounts for the six months ended June 30, for the indicated fiscal year.

In addition to monitoring our loss and delinquency performance on an owned portfolio basis, we also monitor the performance of our loans by the period in which the loan was disbursed, generally years or quarters, which we refer to as a vintage.

We calculate net lifetime loan loss rate by vintage as a percentage of original principal balance.

Net lifetime loan loss rates equal the net lifetime loan losses for a given year through March 31, 2025 divided by the total origination loan volume for that year.

Net lifetime loan loss rates equal the net lifetime loan losses for a given year through June 30, 2025 divided by the total origination loan volume for that year.

The below chart and table show our net lifetime loan loss rate for each annual vintage of our personal loan product since 2014, excluding loans originated from July 2017 to August 2020 and from December 2023 under a loan program for borrowers who did not meet the qualifications for our core loan origination program;

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Dollar weighted average original term for vintage in months 22.3 24.2 26.3 29.0 30.0 32.0 33.3 37.8 39.2 35.6

Net lifetime loan losses as of March 31, 2025 as a percentage of original principal balance 7.1% 8.0% 8.2% 9.8% 10.8% 9.0% 18.1%* 19.8%* 8.8%* 0.0%*

Outstanding principal balance as of March 31, 2025 as a percentage of original amount disbursed —% —% —% —% 0.1% 0.3% 2.5% 17.4% 50.6% 90.4%

Net lifetime loan losses as of June 30, 2025 as a percentage of original principal balance 7.1% 8.0% 8.2% 9.8% 10.8% 9.0%* 18.3%* 20.8%* 10.8%* 1.5%*

Outstanding principal balance as of June 30, 2025 as a percentage of original amount disbursed —% —% —% —% 0.1% 0.3% 1.7% 12.7% 41.8% 79.5%

* Vintage is not yet fully mature from a loss perspective.

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Results of Operations

The following tables and related discussion set forth our Condensed Consolidated Statements of Operations (Unaudited) for each of the three months ended March 31, 2025 and 2024.

Three Months Ended March 31,

The following tables and related discussion set forth our Condensed Consolidated Statements of Operations (Unaudited) for each of the three and six months ended June 30, 2025 and 2024.

Three Months Ended June 30, Six Months Ended June 30,

(in thousands of dollars) 2025 2024 2025 2024

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Three Months Ended

Period-to-period Change Six Months Ended

Period-to-period Change

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Total revenue 100.0 % 100.0 % 100.0 % 100.0 %

Total interest income decreased by $10.4 million, or 4.5%, from $230.6 million for the three months ended March 31, 2024 to $220.2 million for the three months ended March 31, 2025.

The decrease is primarily attributable to $146.4 million, or 5.1%, decrease in our Average Daily Principal Balance from $2.9 billion for the three months ended March 31, 2024 to $2.7 billion for the three months ended March 31, 2025 , primarily due to the sale of the credit card portfolio .

The decrease was partially offset by an increase in portfolio yield of 49 basis points in the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

Total non-interest income decreased by $4.2 million, or 21.2%, from $19.9 million for the three months ended March 31, 2024 to $15.7 million for the three months ended March 31, 2025.

The decrease is primarily due to a $2.2 million decrease in fees related to our Pathward program, $1.3 million decrease in subscription revenue, and $1.0 million attributable to a decrease in revenue from the credit card portfolio, which was sold in November 2024;

this was partially offset by $0.3 million increase in servicing fees and sublease income.

Interest Income.

Total interest income decreased by $13.1 million, or 5.7%, from $231.4 million for the three months ended June 30, 2024 to $218.3 million for the three months ended June 30, 2025.

This decrease was primarily due to the sale of the credit card portfolio on November 12, 2024 resulting in a decrease in portfolio yield of 106 basis points in the three months ended June 30, 2025 compared to the three months ended June 30, 2024 and a decline in our Average Daily Principal Balance, which decreased from $2.75 billion for the three months ended June 30, 2024 to $2.67 billion for the three months ended June 30, 2025, a decrease of 2.9%.

Total interest income decreased by $23.5 million, or 5.1%, from $462.0 million for the six months ended June 30, 2024 to $438.5 million for the six months ended June 30, 2025.

This decrease was primarily due to the sale of the credit card portfolio on November 12, 2024 resulting in a decline in our Average Daily Principal Balance, which decreased from $2.80 billion for the six months ended June 30, 2024 to $2.69 billion for the six months ended June 30, 2025, a decrease of 4.0%, and a decrease in portfolio yield of 27 basis points in the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

Non-interest income.

Total non-interest income decreased by $3.0 million, or 15.5%, from $19.0 million for the three months ended June 30, 2024 to $16.1 million for the three months ended June 30, 2025.

This decrease is primarily due to a $4.5 million decrease related to interest earned on our Set & Set product, including the recognition of $3.4 million of non-recurring interest during the three months ended June 30, 2024, $1.1 million decrease in subscription revenue on our Set & Save product, $1.0 million decrease in credit card related and other fees, and $0.6 million decrease in gain on loan sales.

These decreases were partially offset by a $3.4 million increase in fees related to our Pathward program and $0.8 million increase in transaction fees, partnership referrals, and servicing fees.

Total non-interest income decreased by $7.2 million, or 18.4%, from $38.9 million for the six months ended June 30, 2024 to $31.7 million for the six months ended June 30, 2025.

This decrease is primarily due to a $4.7 million decrease related to interest earned on our Set & Set product, including the recognition of $2.3 million of non-recurring interest during the six months ended June 30, 2024, a $2.1 million decrease in credit card related and other fees, a $2.1 million decrease in subscription revenue related to our Set & Save product, and a $0.6 million decrease in gain on loan sales.

These decreases were partially offset by a $1.2 million increase in fees related to our Pathward program and $0.8 million increase in transaction and servicing fees.

See Note 2, Summary of Significant Accounting Policies , and Note 12, Revenue , of the Notes to the Condensed Consolidated Financial Statements (Unaudited) included elsewhere in this report for further discussion on our interest income, non-interest income and revenue.

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Three Months Ended

Period-to-period Change Six Months Ended

Period-to-period Change

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Cost of Debt 8.6 % 7.7 % 8.4 % 7.6 %

Interest expense increased by $2.9 million, or 5.4%, from $54.5 million for the three months ended March 31, 2024 to $57.4 million for the three months ended March 31, 2025.

Our interest expense increase is primarily due to 65 basis point increase in Cost of Debt, offset by a 2.2% decrease in average debt balance.

The 65 basis point increase is due to higher interest rates and credit spreads on current debt issuances as compared to lower cost funding issued in 2021 that is amortizing.

Interest expense increased by $5.3 million, or 9.8%, from $54.2 million for the three months ended June 30, 2024 to $59.5 million for the three months ended June 30, 2025.

The increase was driven by an 85 basis point increase in our Cost of Debt partially offset by a decrease to our Average Daily Debt Balance.

Our Average Daily Debt Balance decreased from $2.82 billion for the three months ended June 30, 2024 to $2.78 billion for the three months ended June 30, 2025, a decrease of 1.3%.

Our Cost of Debt has increased due to higher interest rates and credit spreads on current debt issuances as compared to lower cost funding issued in 2021 that is amortizing.

Interest expense increased by $8.2 million, or 7.6%, from $108.7 million for the six months ended June 30, 2024 to $116.9 million for the six months ended June 30, 2025.

The increase was driven by a 76 basis point increase in our Cost of Debt partially offset by a decline in our Average Daily Debt Balance.

Our Average Daily Debt Balance decreased from $2.86 billion for the six months ended June 30, 2024 to $2.81 billion for the six months ended June 30, 2025, a decrease of 1.8%.

Our Cost of Debt has increased due to higher interest rates and credit spreads on current debt issuances as compared to lower cost funding issued in 2021 that is amortizing.

See Note 8, Borrowings , in the Notes to the Condensed Consolidated Financial Statements (Unaudited) included elsewhere in this report for further information on our Interest expense and our Secured Financing and asset-backed notes.

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Three Months Ended

Period-to-period Change Six Months Ended

Period-to-period Change

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* Not meaningful

Net decrease in fair value for the three months ended March 31, 2025 was $72.7 million.

This amount represents a total fair value mark-to-market increase of $4.9 million on Loans Receivable at fair value, Asset-backed notes, and our derivative assets.

The total fair value mark-to-market adjustment consists of a $12.4 million mark-to-market adjustment on Loans Receivable at Fair Value due to (a) a decrease in the discount rate from 7.92% as of December 31, 2024 to 7.69% as of March 31, 2025, offset by (b) a decrease in average life from 1.11 years as of December 31, 2024 to 1.10 years as of March 31, 2025 and (c) an increase in remaining cumulative charge-offs from 11.68% as of December 31, 2024 to 11.83% as of March 31, 2025.

The $(7.9) million mark-to-market adjustment on asset-backed notes is due to falling rates and narrowing asset-backed securitization spreads.

There was no adjustment as part of the other loans sales in the three months ended March 31, 2025.

We expect to continue to see volatility in fair value primarily as a result of macroeconomic conditions.

Net decrease in fair value for the three months ended March 31, 2024 was $116.9 million.

This amount represents a total fair value mark-to-market increase of $3.0 million on Loans Receivable at fair value, Asset-backed notes, and our derivative assets.

The total fair value mark-to-market adjustment consists of a $28.9 million mark-to-market adjustment on Loans Receivable at Fair Value due to (a) a decrease in remaining cumulative charge-offs from 12.10% as of December 31, 2023 to 11.92% as of March 31, 2024, (b) a decrease in the discount rate from 10.10% as of

December 31, 2023 to 9.10% as of March 31, 2024, and (c) an increase in the weighted average life from 1.01 years as of December 31, 2023 to 1.03 years as of March 31, 2024 .

The $(27.1) million mark-to-market adjustment on asset-backed notes is due to falling rates and narrowing asset-backed securitization spreads.

The total net decrease in fair value for the three months ended March 31, 2024 also includes a $(33.5) million adjustment related to the fair value mark on the loans sold as part of the other loans sales for the three months ended March 31, 2024.

Net decrease in fair value for the three months ended June 30, 2025 was $70.3 million.

This amount represents $79.0 million of charge-offs, net of recoveries on Loans Receivable at Fair Value, a total fair value mark-to-market increase of $5.7 million, and $3.0 million increase related to the Pathward excess interest.

The total fair value mark-to-market adjustment consists of a $9.1 million mark-to-market adjustment on Loans Receivable at Fair Value due to (a) a decrease in the discount rate from 7.69% as of March 31, 2025 to 7.03% , partially offset by (b) an increase in remaining cumulative charge-offs from 11.83% as of March 31, 2025 to 11.96% as of June 30, 2025 .

The $3.4 million mark-to-market loss on asset-backed notes is due to lower medium-term interest rates and tighter credit spreads.

Net decrease in fair value for the three months ended June 30, 2024 was $136.1 million.

This amount represents a total fair value mark-to-market decrease of $37.7 million, and $83.9 million of charge-offs, net of recoveries on Loans Receivable at Fair Value.

The total fair value mark-to-market adjustment consists of a $36.7 million mark-to-market loss on Loans Receivable at Fair Value due to (a) $36.2 million mark-to-market loss in the fair value of our credit cards receivable related to management's decision to sell the portfolio and (b) $0.5 million mark-to-market loss on loans receivable at fair value.

The $0.5 million mark-to-market loss on loans receivable at fair value was driven by a 0.9% decrease in weighted average life of the portfolio offset by a 44 basis point decrease in the discount rate and a 4 basis point decrease in the remaining cumulative charge offs.

The $1.9 million mark-to-market loss on asset-backed notes is due to tighter credit spreads.

The total net decrease in fair value for the three months ended June 30, 2024 also includes a $18.4 million loss related to the fair value mark on the loans sold as part of the other loan sales for the three months ended June 30, 2024.

Net decrease in fair value for the six months ended June 30, 2025 was $142.9 million.

This amount represents a total fair value mark-to-market increase of $10.7 million, and $160.3 million of charge-offs, net of recoveries on Loans Receivable at Fair Value.

The total fair value mark-to-market adjustment consists of a $21.5 million mark-to-market adjustment on Loans Receivable at Fair Value due to (a) a decrease in discount rate from 7.92% as of December 31, 2024 to 7.03% as of June 30, 2025 , partially offset by (b) an increase in remaining cumulative charge-offs from 11.68% as of December 31, 2024 to 11.96% as of June 30, 2025, and (c) a decrease in average life from 1.11 as of December 31, 2024 to 1.08 years as of June 30, 2025.

The $11.3 million mark-to-market loss on asset-backed notes is due to lower medium-term interest rates and tighter credit spreads.

Net decrease in fair value for the six months ended June 30, 2024 was $253.0 million.

This amount represents a total fair value mark-to-market decrease of $34.7 million, and $169.2 million of charge-offs, net of recoveries on Loans Receivable at Fair Value.

The total fair value mark-to-market adjustment consists of a $7.8 million mark-to-market loss on Loans Receivable at Fair Value due to (a) $36.2 million mark-to-market loss in

the fair value of our credit cards receivable related to management's decision to sell the portfolio, and (b) $28.4 million mark-to-market adjustment on loans receivable at fair value.

The $28.4 million mark-to-market on loans receivable at fair value was driven by (a) a decrease in discount rate from 10.10% as of December 31, 2023 to 8.66% as of June 30, 2024, (b) a decrease in remaining cumulative charge-offs from 11.80% as of December 31, 2023 to 11.57% as of June 30, 2024, and (c) an increase in average life from 1.006 as of December 31, 2023 to 1.015 years as of June 30, 2024.

The $29.0 million mark-to-market loss on asset-backed notes is due to lower medium-term interest rates and tighter credit spreads.

The total net increase (decrease) in fair value for the six months ended June 30, 2024 includes $51.8 million in loss related to the fair value mark on loans sold as part of the other loan sales for the six months ended June 30, 2024 .

Charge-offs, net of recoveries

Three Months Ended

Period-to-period Change Six Months Ended

Period-to-period Change

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Annualized Net Charge-Off Rate 11.9 % 12.3 % 12.0 % 12.2 %

Our Annualized Net Charge-Off Rate increased to 12.2% for the three months ended March 31, 2025 from 12.0% for the three months ended March 31, 2024.

The increase is primarily driven by a decrease in our Average Daily Principal balance of 5% to $2.7 billion from $2.9 billion for the three months ended March 31, 2025 and 2024, respectively, partially offset by a $4.0 million decrease in Net Charge-offs.

The decline in Net Charge-offs is primarily due to improvement in credit performance driven by increased front book vintages in our portfolio mix for three months ended March 31, 2025 compared to 2024.

Our Annualized Net Charge-Off Rate decreased to 11.9% and 12.0% for the three and six months ended June 30, 2025, respectively, from 12.3% and 12.2% for the three and six months ended June 30, 2024, respectively.

The decrease is primarily driven by a $4.9 million and $9.0 million decrease in our Net Charge-Offs;

partially offset by a decrease in our Average Daily Principal Balance of $78.9 million and $112.8 million for the three and six months ended June 30, 2025, respectively.

The decline in Net Charge-offs is primarily due to improvement in credit performance driven by increased front book vintages in our portfolio mix for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024.

Our front book vintages have lower charge-off rates compared to our back book.

As of March 31, 2025, loans from our back-book represented only 4% of our owned receivables balance, and as a result, we expect the back book to become less impactful in 2025.

Consistent with our charge-off policy, we evaluate our loan portfolio and charge a loan off at the earlier of when the loan is determined to be uncollectible or when the loan is 120 days contractually past due and we charge-off a credit card account when it is 180 days contractually past due.

As of June 30, 2025, loans from our back-book represented only 2% of our owned receivables balance, and as a result, we expect the back book to become less impactful in 2025.

Operating expenses

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Three Months Ended

Period-to-period Change Six Months Ended

Period-to-period Change

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Percentage of total revenue 15.6 % 16.2 % 15.5 % 17.5 %

Technology and facilities expense decreased by $10.7 million, or 22.6%, from $47.1 million for the three months ended March 31, 2024 to $36.4 million for the three months ended March 31, 2025.

The decrease is primarily due to a $2.1 million decrease in depreciation, a $2.0 million decrease in service costs, a $1.4 million decrease in outsourcing and professional fees, and $1.4 million decrease in office rent, $1.3 million decrease in software, and $0.7 million decrease in salaries and benefits.

Technology and facilities expense decreased by $4.0 million, or 9.8%, from $40.6 million for the three months ended June 30, 2024 to $36.6 million for the three months ended June 30, 2025.

The decrease is primarily due to a $2.3 million decrease in depreciation, $1.2 million increased capitalization of internally developed software and other expenses, and $1.0 million decrease in outsourcing and professional fees.

Technology and facilities expense decreased by $14.6 million, or 16.7%, from $87.7 million for the six months ended June 30, 2024 to $73.1 million for the six months ended June 30, 2025.

The decrease is primarily due to a $4.4 million decrease in depreciation, $3.0 million decrease in software and service costs, $2.8 million increased capitalization of internally developed software, $2.4 million decrease in outsourcing and professional fees, and $2.1 million decrease in office rent.

Sales and marketing

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Three Months Ended

Period-to-period Change Six Months Ended

Period-to-period Change

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$ 115 $ 122 $ (7) (5.7) % $ 127 $ 139 $ (12) (8.6) %

Sales and marketing expense to acquire our members increased by $3.9 million, or 24.2%, from $16.0 million for the three months ended March 31, 2024 to $19.9 million for the three months ended March 31, 2025.

The increase was primarily attributable to an increase in our direct mail marketing.

As a result of our increase in sales and marketing expense during the three months ended March 31, 2025, our CAC increased by 0.7%, from $138 for the three months ended March 31, 2024 to $139 for the three months ended March 31, 2025.

Sales and marketing expenses to acquire our members increased by $1.8 million, or 11.2%, from $16.3 million for the three months ended June 30, 2024 to $18.1 million for the three months ended June 30, 2025.

The increase is primarily attributable to $1.0 million increase in marketing costs, such as direct mail and pay-per lead and $0.4 million increase in services costs.

As a result of our increase in number of loans originated during the three months ended June 30, 2025, our CAC decreased by 5.7% from $122 for the three months ended June 30, 2024 to $115 for the three months ended June 30, 2025.

Sales and marketing expenses to acquire our members increased by $5.7 million, or 17.7%, from $32.3 million for the six months ended June 30, 2024 to $38.0 million for the six months ended June 30, 2025 .

The increase is primarily attributable to a $4.6 million increase in marketing costs and a $0.8 million increase in service costs.

As a result of our increase in number of loans originated during the six months ended June 30, 2025 , our CAC decreased by 8.6% from $139 for the six months ended June 30, 2024 , to $127 for the six months ended June 30, 2025 .

Personnel expense represents compensation and benefits that we provide to our employees, and include salaries, wages, bonuses, commissions, related employer taxes, medical and other benefits provided and stock-based compensation expense for all of our staff with the exception of our telesales, lead generation, and retail operations which are included in sales and marketing expenses and technology which is included in technology and facilities.

Three Months Ended

Period-to-period Change Six Months Ended

Period-to-period Change

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Percentage of total revenue 8.6 % 8.7 % 8.8 % 9.3 %

Personnel expense decreased by $3.6 million, or 14.5%, from $24.5 million for the three months ended March 31, 2024 to $21.0 million for the three months ended March 31, 2025.

The decrease is attributable to a reduction in wages and salary, stock-based compensation expense, and benefits primarily driven by the 2024 reduction in force.

Personnel expense decreased by $1.7 million, or 7.6%, from $21.9 million for the three months ended June 30, 2024 to $20.2 million for the three months ended June 30, 2025, primarily driven by our workforce optimization efforts which occurred in 2024.

Personnel expense decreased by $5.2 million, or 11.2%, from $46.4 million for the six months ended June 30, 2024 to $41.2 million for the six months ended June 30, 2025, primarily driven by our workforce optimization efforts in 2024.

Outsourcing and professional fees

Outsourcing and professional fees consist of costs for various third-party service providers and contact center operations, primarily for the sales, customer service, collections and store operation functions.

The costs related to our third-party contact centers that were located in Colombia and the Philippines are included in outsourcing and professional fees for the three months ended March 31, 2024.

The costs related to our third-party contact centers that were located in Colombia and the Philippines are included in outsourcing and professional fees for the three months ended June 30, 2024 .

These third-party contact centers previously provided business support, including application processing, verification, customer service and collections.

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Three Months Ended

Period-to-period Change Six Months Ended

Period-to-period Change

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Percentage of total revenue 4.1 % 3.3 % 3.8 % 3.7 %

Outsourcing and professional fees decreased by $2.2 million, or 21.8%, from $10.2 million for the three months ended March 31, 2024 to $8.0 million for the three months ended March 31, 2025 .

The decrease is primarily attributable to a $0.7 million decrease in outsourced call center professionals due to a shift to in-house call centers, $0.7 million decrease in legal fees, and $0.5 million decrease related to the termination of services related to our credit card program.

Outsourcing and professional fees increased by $1.3 million, or 15.8%, from $8.4 million for the three months ended June 30, 2024 to $9.7 million for the three months ended June 30, 2025.

The increase is primarily attributable to $1.1 million increase in debt recovery and court filing fees, $0.7 million increase in credit reports, and $0.6 million increase in debt financing fees.

These were partially offset by a $0.9 million decrease in professional services and legal fees.

Outsourcing and professional fees decreased by $0.9 million, or 4.9%, from $18.6 million for the six months ended June 30, 2024 to $17.7 million for the six months ended June 30, 2025.

The decrease is primarily attributable to a $2.4 million decrease in professional services and legal fees and $0.9 million decrease in outsourcing services.

These were partially offset by $2.1 million increase in debt recovery and court filing fees.

General, administrative and other

General, administrative and other expense includes non-compensation expenses for employees, who are not a part of the technology and sales and marketing organization, which include travel, lodging, meal expenses, political and charitable contributions, office supplies, printing and shipping.

Also included are franchise taxes, bank fees, foreign currency gains and losses, transaction gains and losses, debit card expenses, litigation reserve, expenses related to workforce optimization and streamlining operations, and acquisition related expenses.

Three Months Ended

Period-to-period Change Six Months Ended

Period-to-period Change

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Percentage of total revenue 4.2 % 8.8 % 3.6 % 6.7 %

General, administrative and other expense decreased by $4.4 million, or 37.4%, from $11.8 million for the three months ended March 31, 2024 to $7.4 million for the three months ended March 31, 2025, primarily due to the $3.0 million decrease in acquisition and integration related expense and $0.8 million decrease in expense related to our initiatives to streamline operations.

General, administrative and other expense decreased by $12.2 million, or 55.6%, from $22.0 million for the three months ended June 30, 2024 to $9.8 million for the three months ended June 30, 2025, primarily due to $6.4 million decrease related to the prior year impairment of the San Carlos office right-of-use asset and disposal of related fixe d assets, $2.8 million decrease primarily related to the November 14, 2024 termination of Oportun RF, $2.7 million decrease related to prior year debt modification and amendment fees, $2.0 million decrease of workforce optimization costs, and $1.0 million decrease due to gains on foreign currency exchange.

These were partially offset by $1.8 million increase related to shareholder activism and $0.5 million increase in fraud loans and franchise tax.

General, administrative and other expense decreased by $16.7 million, or 49.3%, from $33.8 million for the six months ended June 30, 2024 to $17.1 million for the six months ended June 30, 2025, primarily due to $6.8 million decrease related to the prior year impairment of the San Carlos and San Francisco office right-of-use asset and disposal of related fixed assets, $5.8 million decrease primarily related to the November 14, 2024 termination of Oportun RF , $4.0 million decrease related to prior year debt modification and amendment fees, and $2.2 million decrease of workforce optimization costs.

These were partially offset by $1.4 million increase related to shareholder activism, $0.9 million increase in postage and printing, and $0.9 million increase due to the write-off of uncollectible receivables.

In connection with a previously announced cost reduction plan, the Company implemented a series of expense management actions during 2024, including a reduction of approximately 12% of corporate staff (excluding retail and contact center agents) and the closure of 39 retail locations.

For the three and six months ended June 30, 2024 , the Company recorded non-recurring, pre-tax charges of $2.0 million related to corporate workforce reductions and $0.2 million and $0.9 million, respectively, related to retail closures, primarily consisting of severance, benefits, and other associated costs.

Charges incurred during the corresponding periods in 2025 were insignificant.

Income taxes consist of U.S.

federal, state and foreign income taxes, if any.

For the periods ended March 31, 2025 and 2024, we recognized tax expense (benefit) attributable to U.S.

For the periods ended June 30, 2025 and 2024, we recognized tax expense (benefit) attributable to U.S.

federal, state and foreign income taxes.

Three Months Ended

Period-to-period Change Six Months Ended

Period-to-period Change

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Effective tax rate 32.0 % 36.9 % 28.5 % 27.8 %

Income tax benefit decreased by $7.4 million, from $4.0 million benefit for the three months ended March 31, 2024 to $3.4 million expense for the three months ended March 31, 2025, primarily due to higher pretax income for the three months ended March 31, 2025 .

As of March 31, 2025 , we have $78.0 million of U.S.

Income tax expense increased by $21.4 million or 118%, from $18.1 million for the three months ended June 30, 2024 to $3.2 million expense for the three months ended June 30, 2025, primarily as a result of having a higher pre-tax income for the three months ended June 30, 2025.

Income tax expense increased by $28.8 million or 130%, from $22.2 million benefit for the six months ended June 30, 2024 to $6.6 million expense for the six months ended June 30, 2025, primarily as a result of having a higher pre-tax income for the six months ended June 30, 2025 .

As of June 30, 2025 , we have $78.0 million of U.S.

net deferred tax assets, of which $68.4 million is related to the tax-effected net operating losses, tax credits, and other carryforwards that can be used to offset future U.S.

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net deferred tax assets may be required, which would materially increase income tax expense in the period in which the valuation allowance is recorded.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S.

The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions.

The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027.

We are currently assessing its impact on our consolidated financial statements.

See Note 2, Summary of Significant Accounting Policies , and Note 13, Income Taxes , of the Notes to the Condensed Consolidated Financial Statements (Unaudited) included elsewhere in this report for further discussion on our income taxes.

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• We believe it is useful to exclude the impact of interest expense associated with our corporate financing facilities, including the senior secured term loan and the residual financing facility, as we view this expense as related to our capital structure rather than our funding.

• We exclude the impact of certain non-recurring charges, such as expenses associated with our workforce optimization efforts, and other non-recurring charges because we do not believe that these items reflect ongoing business operations.

Other non-recurring charges include litigation reserve, impairment charges, debt amendment and warrant amortization costs related to our corporate financing facilities.

• We exclude the impact of certain non-recurring charges because we do not believe that these items reflect ongoing business operations.

Other non-recurring charges include litigation reserve, impairment charges, workforce optimization expenses, shareholder activism costs, debt amendment and warrant amortization costs related to our corporate financing facilities.

• We also exclude fair value mark-to-market adjustments on the loans receivable portfolio and asset-backed notes carried at fair value because these adjustments do not impact cash.

Components of Fair Value Mark-to-Market Adjustment (in thousands)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Fair value mark-to-market adjustment on loans receivable at fair value (1)

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See the section titled " Total net increase (decrease) in fair valu e" in the Results of Operations section for additional information regarding the fair value mark on loans sold.

The following table presents a reconciliation of net income (loss) to Adjusted EBITDA for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31,

The following table presents a reconciliation of net income (loss) to Adjusted EBITDA for the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30, Six Months Ended June 30,

Adjusted EBITDA (in thousands)

2025 2024 2025 2024

Net income (loss) $ 6,877 $ (31,025) $ 16,644 $ (57,464)

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Interest on corporate financing

9,437 13,229 19,166 27,123

Depreciation and amortization 10,715 13,005 21,783 26,203

Stock-based compensation expense 2,708 3,004 5,539 6,986

Workforce optimization expenses

Other non-recurring charges (1)

3,956 12,480 5,618 16,811

Fair value mark-to-market adjustment (5,734) 37,652 (10,650) 34,661

Adjusted EBITDA $ 31,190 $ 30,221 $ 64,723 $ 32,160

(1) Certain prior-period financial information has been reclassified to conform to current period presentation.

Adjusted Net Income

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We also include the impact of normalized income tax expense by applying a normalized statutory tax rate.

• We believe it is useful to exclude the impact of certain non-recurring charges, such as expenses associated with our workforce optimization efforts, and other non-recurring charges because we do not believe that these items reflect our ongoing business operations.

Other non-recurring

charges include litigation reserve, impairment charges, debt amendment and warrant amortization costs related to our corporate financing facilities.

• We believe it is useful to exclude the impact of certain non-recurring charges because we do not believe that these items reflect our ongoing business operations.

• We believe it is useful to exclude stock-based compensation expense because it is a non-cash charge.

• We also exclude the fair value mark-to-market adjustment on our asset-backed notes carried at fair value to align with the 2023 accounting policy decision to account for new debt financings at amortized cost.

The following table presents a reconciliation of net income (loss) to Adjusted Net Income (Loss) for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31,

The following table presents a reconciliation of net income (loss) to Adjusted Net Income (Loss) for the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30, Six Months Ended June 30,

Adjusted Net Income (in thousands) 2025 2024 2025 2024

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Stock-based compensation expense 2,708 3,004 5,539 6,986

Workforce optimization expenses

Other non-recurring charges (1)

3,956 12,480 5,618 16,811

Net decrease in fair value of credit cards receivable

— 36,177 — 36,177

Mark-to-market adjustment on asset-backed notes

3,371 1,910 11,256 29,033

Adjusted income (loss) before taxes 20,143 4,422 45,680 9,383

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27.0 % 27.0 % 27.0 % 27.0 %

(1) Income tax rate for the three months ended March 31, 2025 and 2024 is based on a normalized statutory rate.

(1) Certain prior-period financial information has been reclassified to conform to current period presentation.

(2) Income tax rate for the three and six months ended June 30, 2025 and 2024 is based on a normalized statutory rate.

Adjusted Earnings Per Share (“Adjusted EPS”)

Adjusted Earnings (Loss) Per Share is a non-GAAP financial measure that allows management, investors and our Board to evaluate the operating results, operating trends and profitability of the business in relation to diluted adjusted weighted-average shares outstanding.

The following table presents a reconciliation of diluted EPS to Diluted Adjusted EPS for the three months ended March 31, 2025 and 2024.

The following table presents a reconciliation of Diluted EPS to Diluted Adjusted EPS for the three and six months ended June 30, 2025 and 2024.

For the reconciliation of net income to Adjusted Net Income (Loss), see the immediately preceding table “Adjusted Net Income (Loss).”

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in thousands, except share and per share data) 2025 2024 2025 2024

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We believe Adjusted Return on Equity is an important measure because it allows management, investors and our Board to evaluate the profitability of the business in relation to stockholders’ equity and how efficiently we generate income from stockholders' equity.

The following table presents a reconciliation of Return on Equity to Adjusted Return on Equity as of and for the three months ended March 31, 2025 and 2024.

The following table presents a reconciliation of Return on Equity to Adjusted Return on Equity as of and for the three and six months ended June 30, 2025 and 2024.

For the reconciliation of net income to Adjusted Net Income (Loss), see the immediately preceding table “Adjusted Net Income (Loss).”

As of or for the Three Months Ended March 31,

As of or for the Three Months Ended June 30, As of or for the Six Months Ended June 30,

(in thousands) 2025 2024 2025 2024

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Adjusted Operating Expense and Adjusted Operating Expense Ratio

We define Adjusted Operating Expense as total operating expenses adjusted to exclude stock-based compensation expense and certain non-recurring charges such as expenses associated with our workforce optimization efforts, and other non-recurring charges.

Other non-recurring charges include litigation reserve, impairment charges, and debt amendment costs related to our Corporate Financing facility.

We define Adjusted Operating Expense as total operating expenses adjusted to exclude stock-based compensation expense and certain non-recurring charges.

Other non-recurring charges include litigation reserve, impairment charges, workforce optimization expenses, shareholder activism costs, and debt amendment costs related to our Corporate Financing facility.

We define Adjusted Operating Expense Ratio as Adjusted Operating Expense divided by Average Daily Principal Balance.

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We believe Adjusted Operating Expense Ratio is an important measure because they allow management, investors and our Board to evaluate how efficiently we are managing costs relative to revenue and Average Daily Principal Balance.

The following table presents a reconciliation of Operating Expense to Adjusted Operating Expense and Operating Expense Ratio to Adjusted Operating Expense Ratio for the three months ended March 31, 2025 and 2024:

As of or for the Three Months Ended March 31,

As of or for the Three Months Ended June 30, As of or for the Six Months Ended June 30,

(in thousands) 2025 2024 2025 2024

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Stock-based compensation expense (2,708) (3,004) (5,539) (6,986)

Workforce optimization expenses

Other non-recurring charges (1)

(3,181) (12,083) (4,106) (16,021)

Total adjusted operating expenses $ 88,554 $ 94,095 $ 177,468 $ 195,817

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13.3 % 13.8 % 13.3 % 14.1 %

(1) Certain prior-period financial information has been reclassified to conform to current period presentation.

Liquidity and Capital Resources

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The following table summarizes our total liquidity reserves:

March 31, 2025

June 30, 2025

(in thousands) Total capacity Amount borrowed/utilized Remaining available capacity

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The following table summarizes our cash and cash equivalents, restricted cash and cash flows for the periods indicated:

Three Months Ended March 31,

Six Months Ended June 30,

(in thousands) 2025 2024

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Operating Activities

Our net cash provided by operating activities was $101.0 million and $85.9 million for the three months ended March 31, 2025 and 2024, respectively.

Our net cash provided by operating activities was $205.5 million and $193.6 million for the six months ended June 30, 2025 and 2024, respectively.

Cash flows from operating activities primarily include net income or losses adjusted for (i) non-cash items included in net income or loss, including depreciation and amortization expense, goodwill impairment charges, fair value adjustments, net, origination fees for loans at fair value, net, gain on loan sales, stock-based compensation expense and deferred tax provision, net, (ii) originations of loans sold and held for sale, and proceeds from sale of loans and (iii) changes in the balances of operating assets and liabilities, which can vary significantly in the normal course of business due to the amount and timing of various payments.

The $15.1 million increase in our net cash provided by operating activities is primarily driven by a $36.2 million increase in our Net Income, $22.0 million increase in our Changes in operating assets and liabilities, $12.7 million increase in our Other, net.

These were partially offset by a $44.2 million decline in our fair value mark to market adjustment, net and $10.2 million decrease in our Origination fees for loans receivable at fair value, net.

The $11.9 million increase in our net cash provided by operating activities is primarily driven by a $74.1 million increase in our Net Income, $37.6 million increase in other, net, $24.9 million increase in our Changes in operating assets and liabilities, and $23.0 million increase in our sale of loans.

These were partially offset by a $110.0 million decline in our fair value adjustment, net, $21.6 million decrease in our originations of loans sold and held for sale, $10.8 million decrease in our origination fees for loans receivable at fair value, net, and $5.8 million decrease in our depreciation and amortization and stock-based compensation expense.

Investing Activities

Our net cash provided by (used) in investing activities was $(55.5) million and $36.5 million for the three months ended March 31, 2025 and 2024, respectively.

Our net cash used in investing activities was $107.9 million and $27.0 million for the six months ended June 30, 2025 and 2024, respectively.

Our investing activities consist primarily of loan originations and loan repayments.

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Purchases of property and equipment, and capitalization of system development costs may vary from period to period due to the timing of the expansion of our operations, the addition of employee headcount and the development cycles of our system development.

The change in our net cash used in investing activities is primarily due to $83.8 million higher loan disbursements which were partially offset by a $4.2 million decrease in repayments of loan principal and $2.5 million increase in capitalization of system development costs for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

The change in our net cash used in investing activities is primarily due to $93.2 million higher originations and purchases of loans held for investment, $3.7 million increase in capitalization of system development costs, and $2.2 million increase in proceeds from loan sales originated as held for investment.

These were partially offset by an $18.2 million decrease in repayments of loan principal and for the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

Financing Activities

Our net cash used in financing activities was $(29.1) million and $(131.8) million for the three months ended March 31, 2025 and 2024, respectively.

For the three months ended March 31, 2025, net cash used in financing activities was primarily driven by amortization payments on our Series 2021-B, Series 2021-C, Series 2022-A, Series 2022-2, Series 2022-3 asset-backed notes Series 2024-1, and Series 2024-2 asset-backed borrowing, and our other asset-backed borrowings and repayments of borrowings on our PLW Facility, PLW II Facility, and Acquisition and Corporate Financing facilities, partially offset by borrowings under our asset-backed borrowings at amortized cost.

For the three months ended March 31, 2024, net cash used in financing activities was primarily driven by borrowings under the PLW Facility, partially offset by repayments of borrowings on our CCW and scheduled amortization payments on our Acquisition Financing facility and, Series 2021-A, Series 2022-2, Series 2022-3, and Series 2024-1 asset-backed notes.

Our net cash used in financing activities was $84.0 million and $136.0 million for the six months ended June 30, 2025 and 2024, respectively.

For the six months ended June 30, 2025, net cash used in financing activities was primarily driven by amortization payments on our Series 2021-B, 2021-C, 2022-A, 2022-2, and 2022-3 Asset-backed notes at fair value;

Series 2024-1 and 2024-2 Asset-backed borrowings at amortized cost, our other asset-backed borrowings, and repayments of borrowings on our PLW Facility, PLW II Facility, PLW III Facility, and Corporate Financing, partially offset by borrowings under our Asset-backed borrowings at amortized cost.

For the six months ended June 30, 2024, net cash used in financing activities was primarily driven by amortization payments on our asset-backed notes and asset-backed borrowings and repayments of our Secured Financing and Acquisition and Corporate Financing facilities.

These were partially offset by issuances of Asset-backed borrowings at amortized cost.

Sources of Funds

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Asset-Backed Securitizations

As of March 31, 2025, we had $1.7 billion of outstanding asset-backed notes.

As of June 30, 2025, we had $1.9 billion of outstanding asset-backed notes.

Our securitizations utilize special purpose entities which are also VIEs that meet the requirements to be consolidated in our financial statements.

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Our ability to utilize our asset-backed securitizations as described herein is subject to compliance with various requirements including eligibility criteria for the loan collateral and covenants and other requirements .

As of March 31, 2025, we were in compliance with all covenants and requirements of all our asset-backed notes.

As of June 30, 2025, we were in compliance with all covenants and requirements of all our asset-backed notes.

Secured Financings

As of March 31, 2025 , we had Secured Financings with warehouse lines of $766.1 million in the aggregate with undrawn capacity of $317.2 million.

As of June 30, 2025 , we had Secured Financings with warehouse lines of $953.6 million in the aggregate with undrawn capacity of $618.3 million.

On March 8, 2023, the Credit Card Warehouse facility was amended, reducing its commitment from $150.0 million to $120.0 million.

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Under the PLW Amendment, borrowings will accrue interest at a rate equal to Term SOFR plus a weighted average spread of 3.35%.

On April 2, 2025, in connection with the closing of the PLW III Facility, Oportun PLW III Trust, a subsidiary of the Company, entered into a loan and security agreement with certain lenders from time to time party thereto, and Wilmington Trust, National Association as collateral agent, administrative agent, paying agent, securities intermediary and depositary bank.

The PLW III Facility has a two-year revolving period and a borrowing capacity of $187.5 million.

Borrowings under the loan and security agreement accrue interest at a rate equal to Term SOFR plus a weighted average spread up to 3.34%.

The advance rate for the PLW III Facility is 95.0%, subject to certain triggers that could lower the advance rate to 92.0%.

Asset-Backed Borrowings at Amortized Cost

On June 5, 2025, we issued $439.3 million of Series 2025-B asset backed notes secured by a pool of unsecured and secured personal installment loans (the "2025-B Securitization").

The 2025-B Securitization included five classes of fixed rate notes.

The Notes were offered and sold in a private placement in reliance on Rule 144A under the U.S.

Securities Act of 1933, as amended, and were priced with a weighted average yield of 5.67% per annum and weighted average coupon of 5.57% per annum.

On January 16, 2025, we announced the issuance of $425.1 million of Series 2025-A asset-backed notes secured by a pool of our unsecured and secured personal installment loans (the "2025-A Securitization").

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Accordingly, the related assets remain on our balance sheet and cash proceeds received are reported as a secured borrowing under the caption of asset-backed borrowings at amortized cost with related interest expense recognized over the life of the related borrowing.

No loans were transferred during the three months ended March 31, 2025.

No loans were transferred during the six months ended June 30, 2025 .

We had previously fulfilled our commitment to sell loans under the agreement.

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No loans were transferred during the three months ended March 31, 2025.

No loans were transferred during the three months ended June 30, 2025 .

We had previously fulfilled our commitment to sell loans under the agreement.

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Consequently, the $12.5 million repayment obligations under the Credit Agreement with respect to fiscal year 2025 have been satisfied.

As of March 31, 2025, we were in compliance with all covenants and requirements on our outstanding debt and available credit.

As of June 30, 2025, we were in compliance with all covenants and requirements on our outstanding debt and available credit.

For more information regarding our Secured Financings and Corporate Financing, see Note 8, Borrowings of the Notes to the Condensed Consolidated Financial Statements (Unaudited) included elsewhere in this report.

Other loan sales

From time to time, we may enter into agreements to sell certain populations of our personal loans, including non-performing loans originated as held for investment.

For the three months ended March 31, 2025 , we did not sell any such loans.

From time to time, we may enter into agreements to sell certain populations of our personal loans, including non-performing loans originated as

held for investment.

For the six months ended June 30, 2025 , we did not sell any such loans.

For further information, see Note 5, Loans Held for Sale and Loans Sold of the Notes to the Condensed Consolidated Financial Statements (Unaudited) included elsewhere in this report.

5 unchanged sentences

This agreement is scheduled to expire in November 2026.

The originations of loans sold and held for sale during the three months ended March 31, 2025 were $32.4 million.

The originations of loans sold and held for sale during the six months ended June 30, 2025 were $72.2 million.

For further information on the whole loan sale transactions, see Note 5, Loans Held for Sale and Loans Sold of the Notes to the Condensed Consolidated Financial Statements (Unaudited) included elsewhere in this report.

27 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis