#USA #New York #Findell Capital #Oportun Financial #Raul Vazquez

Findell Capital Calls for Overhaul at Oportun Financial

On June 16, 2025, Findell Capital Partners, LP, a prominent shareholder in Oportun Financial Corporation (NASDAQ: OPRT), released a critical investor presentation highlighting significant governance issues within the company. The report outlines the necessity for heightened independence and expertise in consumer finance among the board members. Findell argues that the current board has inadequately exercised its managerial oversight and has failed to promote accountability within the organization.

At the heart of the presentation lies a critique of CEO Raul Vazquez’s management style, which has transformed Oportun from a straightforward lending service into a struggling fintech platform. This shift has resulted in a staggering loss of nearly $1.5 billion in shareholder capital. Central to this downturn are the dramatic increases in the cost per loan and a steep escalation in net charge-offs, compounded by questionable mergers and acquisitions, including a $211 million buyout of Hello Digit, Inc.

The repercussions of these strategic blunders have been profound, leading to a staggering 76% drop in Oportun's stock price between September 2019 and March 2023. Furthermore, Oportun’s performance benchmarks poorly against competitors, like OneMain Holdings, Inc., particularly regarding net charge-offs and operational expenses.

Findell's presentation raises serious concerns about the board's composition, noting that none of the existing members possess background experience in lending or subprime lending, raising questions about potential conflicts of interest stemming from their interconnections. Despite these concerns and evident poor performance, the legacy directors have maintained their positions against shareholder votes, continuing to exert control over the board and its committees.

To redirect Oportun towards a more sustainable future, Findell emphasizes the value of independent lending expertise evidenced by their recent appointments of Scott Parker and Richard Tambor as directors. These selections resulted in substantial improvements, including a 61% decrease in operating expenses per loan and over 206% total return for shareholders.

The presentation urges the election of Warren Wilcox, an independent director with pertinent experience in subprime lending, to replace the legacy board members and strengthen oversight. Findell estimates that Oportun could reduce its corporate overhead by $80 million and decrease its operational expenditure ratio to under 12%, aligning more closely with industry standards.

Moreover, Findell advocates for the removal of Oportun's self-imposed 36% interest rate cap, which they argue has hindered the company from reaching a broader customer base. They suggest that by targeting a pre-tax return on assets (ROA) of 8-10% and maintaining a conservative leverage ratio, Oportun could achieve an impressive return on equity (ROE) exceeding 40%.

Looking ahead, Findell posits that should Oportun reasonably cut its annual operating costs to $325 million by 2026, shareholders could see the stock price soar above $22 per share, provided there are no further dilutions of their equity.

In a concluding call to action, Findell urges shareholders to vote for the election of Warren Wilcox while opposing the re-election of CEO Raul Vazquez using the WHITE proxy card. This push comes at a critical juncture, as Oportun aims to recover from its recent challenges and restore confidence among its investors.

For more detailed insights, stakeholders are encouraged to visit Oportun at Findell Capital.