- Oportun Financial ( NASDAQ: OPRT ) on Thursday announced a plan to streamline its operations , including reducing its headcount by 10%, impacting ~155 employees, and cutting expenditure on external contractors.
- Shares of Oportun ( OPRT ) slipped 2% after the bell.
- The digital banking firm expects annualized run-rate savings in compensation and benefits of ~$38M, starting this year.
- Oportun ( OPRT ) also identified certain non-personnel related operational efficiencies, which are expected to result in annualized run-rate savings of $10M-$15M starting in 2023.
- The company expects to incur non-recurring, pre-tax charges of $5M-$6M in Q1.
- Oportun ( OPRT ) expects Q4 total revenue of ~$262M vs. $258.81M consensus , and adj. net income of $3M-$5M.
- Aggregate originations in the quarter totaled $610M, while annualized net charge-off rate was 12.8%.
- Management continues to expect annualized net charge-off rate to start decreasing in Q1 and return to its 7%-9% target by Q3.
- Earlier, Barclays turned neutral on consumer finance stocks as they could get more inexpensive if a recession happens .
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Oportun Financial to lay off 10% of headcount, reports Q4 prelim results