Oportun Completes Sale of its Credit Card Portfolio
Oportun (OPRT) has completed the sale of its credit card portfolio to Continental Finance, marking a significant step in its strategy to enhance profitability by focusing on three core products: unsecured personal loans, secured personal loans, and Set & Save™ savings product. The transaction involves a $100 million credit card portfolio and is expected to generate incremental Adjusted EBITDA of approximately $2 million in Q4 2024 and $11 million in 2025. Continental Finance will continue serving former Oportun cardholders under their Revel Card brand.
Oportun (OPRT) ha completato la vendita del suo portafoglio di carte di credito a Continental Finance, segnando un passo significativo nella sua strategia per migliorare la redditività, concentrandosi su tre prodotti principali: prestiti personali non garantiti, prestiti personali garantiti e il prodotto di risparmio Set & Save™. La transazione coinvolge un portafoglio di carte di credito da 100 milioni di dollari e si prevede che genererà un EBITDA rettificato incrementale di circa 2 milioni di dollari nel Q4 2024 e 11 milioni di dollari nel 2025. Continental Finance continuerà a servire i precedenti titolari di carte Oportun sotto il loro marchio Revel Card.
Oportun (OPRT) ha completado la venta de su cartera de tarjetas de crédito a Continental Finance, lo que marca un paso significativo en su estrategia para mejorar la rentabilidad al centrarse en tres productos clave: préstamos personales no garantizados, préstamos personales garantizados y el producto de ahorros Set & Save™. La transacción involucra una cartera de tarjetas de crédito de 100 millones de dólares y se espera que genere un EBITDA ajustado incremental de aproximadamente 2 millones de dólares en el Q4 2024 y 11 millones de dólares en 2025. Continental Finance continuará atendiendo a los antiguos titulares de tarjetas de Oportun bajo su marca Revel Card.
Oportun (OPRT)는 신용카드 포트폴리오를 Continental Finance에 매각하여 수익성을 향상시키기 위한 중요한 단계를 밟았습니다. 여기서는 비담보 개인 대출, 담보 개인 대출 및 Set & Save™ 저축 상품의 세 가지 핵심 제품에 집중하고 있습니다. 이 거래는 1억 달러의 신용카드 포트폴리오를 포함하며, 2024년 4분기에는 약 200만 달러, 2025년에는 1100만 달러의 조정 EBITDA를 생성할 것으로 예상됩니다. Continental Finance는 이전 Oportun 카드 소지자를 Revel Card 브랜드로 계속 지원할 것입니다.
Oportun (OPRT) a finalisé la vente de son portefeuille de cartes de crédit à Continental Finance, marquant une étape significative dans sa stratégie d'amélioration de la rentabilité en se concentrant sur trois produits clés : prêts personnels non garantis, prêts personnels garantis et produit d'épargne Set & Save™. La transaction porte sur un portefeuille de cartes de crédit de 100 millions de dollars et devrait générer un EBITDA ajusté supplémentaire d'environ 2 millions de dollars au quatrième trimestre 2024 et 11 millions de dollars en 2025. Continental Finance continuera à servir les anciens titulaires de carte Oportun sous leur marque Revel Card.
Oportun (OPRT) hat den Verkauf seines Kreditkartenportfolios an Continental Finance abgeschlossen, was einen bedeutenden Schritt in seiner Strategie darstellt, die Rentabilität durch Fokussierung auf drei Hauptprodukte zu verbessern: unbesicherte Privatkredite, besicherte Privatkredite und das Set & Save™ Sparkonto. Die Transaktion umfasst ein Kreditkartenportfolio im Wert von 100 Millionen Dollar und es wird erwartet, dass sie ein zusätzliches bereinigtes EBITDA von etwa 2 Millionen Dollar im Q4 2024 und 11 Millionen Dollar im Jahr 2025 erzeugen wird. Continental Finance wird weiterhin ehemalige Oportun-Karteninhaber unter ihrer Marke Revel Card bedienen.
- Sale expected to generate $2M in incremental Adjusted EBITDA in Q4 2024
- Additional $11M in Adjusted EBITDA projected for full year 2025
- Strategic simplification of business model focusing on core products
- Successful divestment of $100M credit card portfolio
- Reduction in product diversification with exit from credit card business
Insights
The sale of Oportun's
The deal's structure appears favorable, with immediate financial benefits and reduced operational complexity. By divesting the credit card business, Oportun can better allocate capital and management attention to its higher-performing segments. The expected EBITDA contribution suggests a healthy premium on the portfolio sale, indicating strong execution in monetizing this non-core asset.
SAN CARLOS, Calif., Nov. 12, 2024 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT), a mission-driven financial services company, today announced that it has closed the previously agreed upon sale of its credit card portfolio to Continental Finance. Completing the transaction reflects a key milestone towards Oportun’s initiative to enhance profitability in 2024 and beyond by simplifying the business and driving performance in its three core products: unsecured personal loans, secured personal loans, and its award-winning Set & Save™ savings product.
“We expect that closing the credit card portfolio sale will be highly accretive for our shareholders, and I’m pleased to reiterate our expectation that it will result in incremental Adjusted EBITDA of approximately
“Continental Finance, along with its partner bank, is pleased to assume Oportun’s approximately
About Oportun
Oportun (Nasdaq: OPRT) is a mission-driven financial services company that puts its members' financial goals within reach. With intelligent borrowing, savings, and budgeting capabilities, Oportun empowers members with the confidence to build a better financial future. Since inception, Oportun has provided more than
About Continental Finance
With over 5.3 million credit cards managed since its founding, Continental Finance prides itself on excellent customer service and access to bank-issued credit products with innovative features that provide affordable and safe options to consumers with poor or limited credit. Utilizing responsible innovation, Continental Finance works to provide each customer with the necessary educational tools for them to be successful in managing their personal credit.
Forward-Looking Statements
This press release contains forward-looking statements. These forward-looking statements are subject to the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this press release, including statements as to future performance and financial position; expectations regarding the impact of the sale of the Company’s credit card portfolio; expectations regarding Adjusted EBITDA in the fourth quarter of 2024 and full year 2025; achievement of the Company's strategic priorities and goals and the plans and objectives of management for our future operations, are forward-looking statements are forward-looking statements. These statements can be generally identified by terms such as "expect," "plan," "goal," "target," "anticipate," "assume," "predict," "project," "outlook," "continue," "due," "may," "believe," "seek," or "estimate" and similar expressions or the negative versions of these words or comparable words, as well as future or conditional verbs such as "will," "should," "would," "likely" and "could." These statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause Oportun’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Oportun has based these forward-looking statements on its current expectations and projections about future events, financial trends and risks and uncertainties that it believes may affect its business, financial condition and results of operations. These risks and uncertainties include those risks described in Oportun's filings with the Securities and Exchange Commission, including Oportun's most recent annual report on Form 10-K and most recent quarterly report on Form 10-Q. These forward-looking statements speak only as of the date on which they are made and, except to the extent required by federal securities laws, Oportun disclaims any obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. In light of these risks and uncertainties, there is no assurance that the events or results suggested by the forward-looking statements will in fact occur, and you should not place undue reliance on these forward-looking statements.
Investor Contact
Dorian Hare
(650) 590-4323
ir@oportun.com
Media Contact
Michael Azzano
Cosmo PR for Oportun
(415) 596-1978
michael@cosmo-pr.com
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