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FINDELL CAPITAL MANAGEMENT ISSUES OPEN LETTER TO BOARD AND SHAREHOLDERS OF OPORTUN (NASDAQ: OPRT) CALLING FOR LEADERSHIP CHANGE
OPRTOportun Financial (OPRT) Prnewswire·2025-03-20 11:00

Core Viewpoint - Findell Capital Management believes Oportun Financial Corporation is significantly undervalued and criticizes the current board for lacking lending experience, which they argue hinders shareholder value creation [1][2][3]. Company Overview - Oportun has a strong lending business that could generate robust returns if managed effectively, but the current CEO, Raul Vasquez, has reportedly increased costs and made poor acquisitions, wasting an estimated 1billionincapital[3][4].−Theboardisprimarilycomposedofindividualswithoutlendingexperience,whichFindellarguesisdetrimentaltothecompany′soversightandperformance[3][7].LeadershipandGovernance−FindellhasbeenadvocatingforchangesinOportun′sleadershipandboardcomposition,proposingthenominationoftwoexperiencedcandidatestoreplacethecurrentCEOandleaddirector[1][10].−Theboard′scurrentleaddirector,NeilWilliams,iscriticizedforhislackoflendingexperienceandforbeingmorefocusedonprotectingtheCEO′spositionthanonshareholderinterests[6][9].PerformanceMetrics−Oportun′sstocktradesatasignificantdiscount,at0.75timestangiblebookvalue,comparedtopeerstradingat1.5to2times[11].−Thecompanyhassetsubstandardreturnonassets(ROA)targetsof3−41 billion in capital [3][4]. - The board is primarily composed of individuals without lending experience, which Findell argues is detrimental to the company's oversight and performance [3][7]. Leadership and Governance - Findell has been advocating for changes in Oportun's leadership and board composition, proposing the nomination of two experienced candidates to replace the current CEO and lead director [1][10]. - The board's current lead director, Neil Williams, is criticized for his lack of lending experience and for being more focused on protecting the CEO's position than on shareholder interests [6][9]. Performance Metrics - Oportun's stock trades at a significant discount, at 0.75 times tangible book value, compared to peers trading at 1.5 to 2 times [11]. - The company has set substandard return on assets (ROA) targets of 3-4%, while Findell believes a target of 8-10% is achievable under competent leadership [12]. Proposed Changes - Findell suggests reducing operating expenses by 20% to align with industry benchmarks, as Oportun's operating expense ratio is currently at 14.8%, which is higher than competitors [12]. - The company could potentially generate earnings of 3.75 to 4.75persharewithimprovedROA,leadingtoavaluationof4.75 per share with improved ROA, leading to a valuation of 22 to $33 per share based on a conservative market multiple of 6-7 times earnings [15][16]. Historical Context - The addition of board members with lending experience in 2024 has reportedly led to improved operational and stock price performance [8]. - The legacy board members have overseen significant declines in share price, with some members experiencing declines of up to 77% [13][14].