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Stock impact report

OppFi's NCO Rate Falling: Is Risk Mitigation Strategy Paying Off? [Yahoo! Finance]

OppFi Inc. Class A (OPFI) 
Company Research Source: Yahoo! Finance
The NCO rate, measured as a percentage of total revenues, stood at 42% in the fourth quarter of 2024, down 400 basis points (bps) from the year-ago quarter. The trend continued in the first quarter of 2025, as the NCO rate dipped 700 bps sequentially to 35%. The company achieved a new low in the second quarter of 2025, with the NCO rate touching 32%, hinting at a 300-bps sequential fall. This consistent dip in this metric boasts impressive credit quality achieved through operational initiatives that succeed in effective loss prevention. On the same note, the annualized NCO rate, as a percentage of average receivables, followed the downward trajectory. This metric moved from 54% in the fourth quarter of 2024 to 47% in the March quarter of this year. This whopping 700-bps sequential fall was followed by a sequential decline of 400 bps to 43% in the June quarter. This multi-quarter trend solidifies OppFi's effective strategy of lending to high-quality borrowers within the underserved Show less Read more
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