OPFI - OppFi stock drops after Q1 earnings reflect higher net charge-offs

OppFi (NYSE:OPFI) stock is sinking 10% in Thursday morning trading after the fintech platform's net charge-off rate soared jumped and its revenue trailed the average Wall Street estimate in Q1. CEO and Executive Chairman Todd Schwarz said Q1 profitability was "muted, as expected, due to elevated charge-off levels form loans originated last last year." The company provides a fintech platform to banks that offers credit to consumers who are turned away by more mainstream channels. Total net originations for the quarter ended March 31, 2022 fell to $162.8M from $186.7M in the previous quarter, though up from $99.8M in the year-earlier quarter. Net charge-offs as a percentage of average receivables climbed to 56% vs. 53% in Q4 2021 and 30% in the year-ago quarter. The surge in net charge-offs reflects increased losses from segments that are no longer being approved in 2022, the company said. OppFi (OPFI) reaffirmed its 2022 guidance

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OppFi stock drops after Q1 earnings reflect higher net charge-offs