Stonegate Capital Partners has updated its coverage on OppFi, Inc. (NYSE: OPFI), emphasizing the company’s strategic pivot toward a bank-enabled, deposit-funded model through its pending acquisition of BNCC. The first-quarter results for fiscal 2026 showed steady performance, but the acquisition is seen as a transformative step that could significantly expand OppFi’s growth runway.
According to Stonegate, the BNCC acquisition adds approximately $1.0 billion of low-cost deposits, supports national expansion, and is expected to drive over 25% adjusted EPS accretion in the first year. This shift marks a departure from OppFi’s traditional reliance on alternative funding sources, positioning the company for more sustainable long-term growth.
In the first quarter, OppFi reported revenue of $151.9 million, an 8.3% increase year-over-year, despite a 7.0% decline in net originations to $176.0 million. Receivables grew 9.4% to $444.9 million, reflecting a higher-quality revenue base as the company prioritized credit discipline over volume growth. Stonegate noted that tighter credit conditions, inflation, weaker consumer sentiment, and higher average tax refunds temporarily reduced loan demand.
Higher charge-offs pressured adjusted earnings, but expense discipline remained intact as management invested across key growth initiatives, including LOLA, Model 7, LOC, SMB lending, and BNC integration. Stonegate views OppFi’s strategy as prioritizing credit discipline and long-term platform expansion over near-term volume growth.
Multiple catalysts are expected in 2026, including the LOLA migration beginning in May, Model 7 anticipated for the fall, and LOC launching in the summer. OppFi has maintained its full-year 2026 guidance, projecting revenue between $650 million and $675 million and adjusted EPS of $1.76 to $1.84.
Stonegate Capital Partners, a leading capital markets advisory firm, provided the updated coverage as part of its ongoing research services. The full announcement, including downloadable images and bios, is available here.
The implications of OppFi’s shift toward a deposit-funded model are significant, as it could reduce funding costs, enhance regulatory stability, and enable broader product offerings. With the BNCC acquisition, OppFi is positioning itself to compete more effectively in the consumer lending space, leveraging low-cost deposits to drive profitability and expansion.
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