#USA #New York #shareholder activism #Findell Capital #Oportun

Findell Capital Responds to Oportun's Misleading Claims Ahead of Annual Meeting

In a decisive move, Findell Capital Partners, LP, a substantial stakeholder in Oportun Financial Corporation (NASDAQ: OPRT), has publicly challenged misleading narratives emanating from the company. In a letter addressed to fellow shareholders, Findell asserts that the operational improvements and reduced costs attributed to Oportun’s management were actually driven by Findell’s advocacy and strategic director appointments, particularly the recent addition of independent lending experts to the board.

Context of the Situation

As a key player in Oportun, holding approximately 7.4% of the outstanding common shares, Findell has expressed concerns regarding Oportun’s governance and operational performance. With the Annual Meeting of Stockholders approaching on July 18, 2025, Findell is advocating for the election of Warren Wilcox, a seasoned professional from the consumer finance sector, to join the board. They believe his expertise is crucial for restoring effective oversight of management, which has been perceived as resistant to necessary changes due to long-tenured directors on the board.

Oportun's Recent Misleading Claims

In the letter, Findell refutes several claims made by Oportun, particularly those related to cost management and operational efficiency. Here are some of the primary assertions made by Oportun and the corresponding facts from Findell:

1. Claim: Oportun was proactive in right-sizing its cost structure from mid-2022.
Fact: This statement conflicts with management’s own previous remarks. CEO Raul Vazquez stated in a November 2022 call that the organization was already “right-sized.” Furthermore, Oportun's operating expenditures ballooned to over $600 million in FY 2022, significantly increasing from $162 million in 2016, despite generating fewer loan origination volumes.

2. Claim: A plan to reduce expenses by $38 million was a disciplined approach.
Fact: A $38 million cut was deemed insufficient by Findell, which suggested a minimum of $150 million in reductions. The management's lack of proactive measures prompted Findell’s intervention, which led to some changes but still fell short of expectations.

3. Claim: Oportun narrowly avoided bankruptcy due to management's decisions.
Fact: Findell argues that mismanagement had pushed the company toward potential bankruptcy. The leadership at Oportun is criticized for creating a crisis that they barely managed to deflect with insufficient cost-cutting measures.

4. Claim: Improved operational metrics across the board.
Fact: Findell emphasizes that improvements in operating metrics came only after suggestions for better capital allocation were heeded and following the board appointments of Scott Parker and Richard Tambor, who were instrumental in driving cost efficiencies.

The Path Forward for Oportun

Findell stresses the urgency of enhancing the board's independence and expertise in consumer finance. They assert that allowing the legacy board members to retain control could jeopardize Oportun's long-term success. Findell believes that voting for Warren Wilcox would not only bring vital experience to the board but also protect the investments of shareholders from being managed by those lacking relevant expertise and accountability.

By pledging to vote for Mr. Wilcox, Findell indicates that shareholders are voting for a stronger, more independent oversight of the company's management practices.

Conclusion

In the rapidly changing landscape of consumer finance, clarity and competence in governance are paramount. Findell's response underscores the importance of transparency and strategic oversight within Oportun. As the company approaches its annual meeting, shareholders are encouraged to weigh their decisions carefully, as they stand at a pivotal moment that could define Oportun's trajectory in the years to come. It remains to be seen how Oportun’s management will respond to these challenges and whether shareholders will prioritize long-term stability over entrenched interests.

For further details or to get involved, shareholders can visit Opportunity At Oportun and learn more about the voting process on the WHITE proxy card to support necessary changes for Oportun’s future.