OppFi Inc. (OPFI) Income Statement

The 39.5% year-over-year revenue decline in 2026Q2 is a stark reversal from the steady growth seen through 2025, where quarterly revenue expanded from $140M to $159M. This suggests a significant demand shock or strategic pullback in originations, possibly tied to tighter underwriting or regulatory pressures. Investors should monitor whether this is a one-off disruption or the start of a sustained contraction, as the maintained guidance implies management expects a rebound.

The negative COGS in 2025Q4 is a clear anomaly, likely reflecting a reversal of credit loss provisions or fair value adjustments, which inflates gross margin to 129.3%. Excluding that quarter, gross margins have been relatively stable around 80%, but this is not comparable to traditional lenders. The true profitability must be assessed after provisioning for credit losses, which is embedded in operating expenses, making the 95% gross margin cited in company intelligence misleading.

The operating margin expanded from 4.1% in 2024Q1 to 42.9% in 2026Q1, indicating strong operating leverage when revenue grows and credit losses are contained. However, the 2026Q2 drop to 28.3% demonstrates that this leverage works in reverse when revenue contracts. The volatility suggests that fixed costs, such as technology and compliance, are relatively stable, but variable costs like provisioning and marketing fluctuate significantly, making earnings highly sensitive to loan performance.

The reduction in SG&A intensity suggests management has been effective in controlling overhead costs, which contributed to the operating margin expansion in 2025 and early 2026. However, the spike in SG&A to $29.7M in 2026Q2, despite lower revenue, indicates that some costs are sticky or that marketing spend increased to counteract volume declines. This could pressure margins if revenue does not recover, and investors should monitor whether the cost structure remains flexible.