OppFi Inc.

Good morning, and welcome to OPFI's fourth quarter 2024 earnings conference call. All participants are in a listen-only mode. As a reminder, this conference call is being recorded. After management's presentation, there will be a question and answer session. For those listening by dial-in, you will be prompted to enter the queue after the prepared remarks. I am pleased to introduce your host, Mike Gallantine, Head of Investor Relations. You may begin.

Thank you, and good morning, and welcome to OPFI's fourth quarter 2024 earnings call. Today, our executive chairman and CEO, Todd Schwartz, and CFO, Pam Johnson, will present our financial results before taking questions. You can access our earnings presentation on our website at investors.opfi.com. During this call, OPFI may discuss certain forward-looking information. The company's filings with the SEC describe essential factors that could cause actual results, developments, and business decisions to differ materially from forward-looking statements. Please refer to slide two of the earnings presentation for our disclaimer statements covering forward-looking statements. and references to information about non-GAAP financial measures, which will be discussed throughout today's call. Reconciliations of those measures to GAAP measures can be found in the appendix to our earnings presentation. With that, I'd like to turn the call over to Todd.

Thanks, Mike, and good morning, everyone. Thank you for joining us today. When I returned as CEO, we laid out a three-year plan to grow our 2021 operational and financial capabilities And I'm happy to report we've exceeded those expectations. Our motto of operational excellence coupled with continuous improvement is taking effect in all facets of the business. OpFi made tremendous progress in 2024, propelling our company to deliver strong financial results in the fourth quarter and the fiscal year 2024, including record Q4 and annual total revenue. We expect these strong results to continue in 2025. and our yearly guidance anticipates up to a double-digit percentage increase in revenue and adjusted EPS driven by strong growth and continued operating efficiency. In addition, due to the solid performance so far in Q1, we are increasing our expectations for the Q1 2025 adjusted net income we shared during our last call by more than two times. Pam will provide a detailed review of our fourth quarter financials and guidance for 2025. Before she does, I'd like to highlight a few company updates for the fourth quarter of 2024, the full year of 2024, and the year ahead, 2025. OpLoans remains one of the highest rated and most transparent loan platforms in our space. Our product and tech teams continued innovation and use of AI tools led to a record auto approval percentage for our company. This number improved to almost 80% in Q4 2024 compared to 73% in Q4 2023, which improved funnel metrics, propelling our net revenue up 23% year over year. We expect this to continue to improve in 2025, building on our operational efficiency for future growth. The continuous refinement of our machine learning model helped improve the credit evaluation process and help identify and approve applicants with higher credit quality. As you may recall, OPFI launched Model 6 in 2024, which better identifies the risks of long-term charge-offs versus earlier versions that were more focused on upfront, shorter-term repayment status. It also assists in targeting better quality borrowers at the top of the funnel. The model also enhances risk separation and allows for seasonal segmentation and modeling throughout the year. In the fourth quarter of 2024, OpFi's net charge-off rates improved 10% as a percentage of revenue compared to the prior year. The model gives us the confidence to grow and weather different periods of economic volatility, and it bodes well for our future. OpFi sees a favorable environment for growth in 2025. Our strong balance sheet favorable macroeconomic tailwinds, strong credit trends, and scalable growth levers position us well. We believe the potential of entering into additional partnerships, continued funnel improvements, and direct response marketing initiatives will enable us to attract new high-quality customers who exhibit strong unit economics. As you may recall, Biddy was our first outside investment in the small business financing space. Similar to our consumer business, we continue to see a large supply-demand imbalance in the working capital space for small business. BIDI has experienced significant growth, and we believe it will continue to provide profitability and cash flow to OpFi in 2025. We are excited to continue working with BIDI as they seek to disrupt the space with best-in-class products, modeling, and servicing. OpFi's balance sheet remains strong, Earlier this week, we used excess cash to extinguish our corporate debt. Last month, we extended our asset-based facility with Blue Owl, providing additional capacity. This is a testament to our financial strength and continued growth opportunities. Our corporate development team continues to look for complementary products where OpFi's best-in-class platform and technology can deliver exceptional value to consumers and businesses. OpFi will look for the highest and best uses of its capital to add accretive acquisitions and investments, invest in high ROI initiatives, and reward shareholders. OpFi is building a leading mission-driven tech platform with a suite of best-in-class digital financial service products that addresses large supply demand imbalances and credit access for consumers and businesses. Over the last three years, we have taken considerable steps to position OpFi as a leader in our space and fulfill our vision and strategic plan. Pam will now review our fourth quarter and full year results in detail and share our increased guidance for 2025. With that, I'll turn the call over to Pam.