OppFi Inc.

Good morning and welcome to OpFi's third quarter 2025 earnings conference call. All participants are in a listen-only mode. As a reminder, this conference call is being recorded. Following management's presentation, a question and answer session will be held. 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, Operator. Good morning and welcome to OPFI's third quarter 2025 earnings call. Today our executive chairman and CEO Todd Schwartz and CFO Pam Johnson will present our financial results followed by a question and answer session. You can access the 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 and press release 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 gap measures can be found in the appendix to our earnings presentation and press release. With that, I'd like to turn the call over to Todd. Thanks, Mike, and good morning, everyone.

Thank you for joining us today. OPFI achieved another record quarter of revenue, profitability, originations, and ending receivables. In addition, we are happy to report that we have renewed our credit agreement with Castle Lake, improving operating leverage, pricing, and capacity. Given our continued outperformance in Q3, we are raising earnings guidance for the third time this year. I will discuss growth, credit, our loan origination lending application, Lola, migration, and BIDI, our SMB investment, on the call. In the quarter, we achieved a 12.5% growth in net originations and a 13.5% increase in revenue year-over-year, with almost 50% of originations coming from new customers. Auto approval rates increased to 79% year-over-year, and customers continued to be approved at a higher rate than in prior quarters, with no human interaction. We continue to see increased scale in our partnerships and direct response programs, We started testing connected TV in Q4 and believed that this could contribute to growth in 2026 and beyond. This strong top line growth combined with prudent expense management led OpFi to generate a record $41 million of adjusted net income for the quarter, representing 41% year-over-year growth. Regarding credit, Model 6 continues to perform well and better segment customers across risk segments. Throughout the quarter, we saw higher charge-offs and new loan vintages. However, by tightening higher risk segments and applying a risk-based pricing approach, we maintained strong unit economics while sustaining growth. The team leveraged AI tools, customer attributes, and repayment data to refit Model 6 into what we believe is the most reliable model to date, Model 6.1. This Model 6.1 refit is designed to identify riskier borrower populations better while incrementally improving volume. The model is also designed to enhance risk pricing across segments, accounting for behavioral and seasonal volatility. In conjunction with our lending partners, we plan to roll out Model 6.1 refit in Q4 and fully implement it in Q1 2026. With Lola, OpFi is building the origination system of the future. This will give us a clean architecture that is designed to take advantage of rapidly developing AI tools in originations, servicing, and corporate operations. The product and tech teams have been working hard and have officially begun the testing phase of our migration. We plan to continue testing Lola throughout the fourth quarter and migrate in Q1 2026. Early indicators give us confidence that Lolo will help continue to improve funnel metrics, increase automated approvals, enhance efficiency in servicing and recoveries, better integrate major systems, and deliver reduced cycle times and greater throughput for our product, tech, and risk teams. Our investment in BIDI continues to perform well. In the third quarter of 2025, BIDI generated $1.4 million in equity income for OPFI. Biddy is a great partner that we have enjoyed working with and learning from in the SMB space. The company shares OpFi's business principles and corporate values and consistently uses technology to enhance operations and the customer experience. Biddy has identified significant additional growth opportunities and continues to capitalize on the ongoing supply-demand imbalance in the small business revenue-based finance space. Overall, OPFI delivered another strong quarter, both financially and operationally, outperforming expectations and allowing us to raise guidance for the third time this year. Looking ahead, we anticipate continued double-digit revenue and adjusted net income growth throughout the remainder of 2025 and into 2026. We believe Opify is well on its way to executing its vision of becoming the leading tech-enabled digital finance platform that partners with banks to offer essential financial products and services to everyday Americans. With that, I'll turn the call over to Pam.