GLOSSARY
Terms and abbreviations used in this report are defined below.
Term or Abbreviation
Definition
30+ Day Delinquency Rate (1)
Unpaid principal balance for our owned loans that are 30 or more calendar days contractually past due as of the end of the period divided by Owned Principal Balance as of such date
Access Loan Program
A program intended to make credit available to select borrowers who do not qualify for credit under Oportun's core loan origination program
Active Customers (1)
Number of customers with an outstanding loan serviced by us at the end of a period. Active Customers includes customers whose loans are owned by us and loans that have been sold that we continue to service. Customers with charged-off accounts are excluded from Active Customers
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP financial measure calculated as net income (loss), adjusted for the impact of our election of the fair value option and further adjusted to eliminate the effect of the following items: income tax expense (benefit), stock-based compensation, depreciation and amortization, litigation reserve, origination fees for fair value loans, net and fair value mark-to-market adjustment
Adjusted Earnings Per Share ("EPS")
Adjusted EPS is a non-GAAP financial measure calculated by dividing Adjusted Net Income by adjusted weighted-average diluted common shares outstanding. Weighted-average diluted common shares outstanding have been adjusted to reflect the conversion of all preferred shares as of the beginning of each annual period
Adjusted Net Income
Adjusted Net Income is a non-GAAP financial measure calculated by adjusting our net income (loss), for the impact of our election of the fair value option, and further adjusted to exclude income tax expense (benefit), stock-based compensation expense and litigation reserve, net of tax
Adjusted Operating Efficiency
Adjusted Operating Efficiency is a non-GAAP financial measure calculated by dividing total operating expenses (excluding stock-based compensation expense and litigation reserve) by Fair Value Pro Forma Total Revenue
Adjusted Return on Equity ("ROE")
Adjusted Return on Equity is a non-GAAP financial measure calculated by dividing annualized Adjusted Net Income by Average Fair Value Pro Forma total stockholders’ equity
Aggregate Originations (1)
Aggregate amount disbursed to borrowers during a specific period. Aggregate Originations excludes any fees in connection with the origination of a loan
Annualized Net Charge-Off Rate (1)
Annualized loan principal losses (net of recoveries) divided by the Average Daily Principal Balance of owned loans for the period
AOCI
Accumulated other comprehensive income (loss)
APR
Annual Percentage Rate
Average Daily Debt Balance
Average of outstanding debt principal balance at the end of each calendar day during the period
Average Daily Principal Balance (1)
Average of outstanding principal balance of owned loans at the end of each calendar day during the period
Board
Oportun’s Board of Directors
Cost of Debt
Annualized interest expense divided by Average Daily Debt Balance
Customer Acquisition Cost (1)
Sales and marketing expenses, which include the costs associated with various paid marketing channels, including direct mail, digital marketing and brand marketing and the costs associated with our telesales and retail operations divided by number of loans originated to new and returning customers during a period
Fair Value Loans (or "Loans Receivable at Fair Value")
All loans receivable held for investment that were originated on or after January 1, 2018
Fair Value Pro Forma
In order to facilitate comparisons to periods prior to January 1, 2018, certain metrics included in this presentation have been shown on a pro forma basis, or the Fair Value Pro Forma, as if we had elected the fair value option since our inception for all loans originated and held for investment and all asset-backed notes issued
Fair Value Pro Forma Total Revenue
Fair Value Pro Forma Total Revenue is calculated as the sum of Fair Value Pro Forma interest income and non-interest income. Fair Value Pro Forma interest income includes interest on loans and fees; origination fees are recognized upon disbursement. Non-interest income includes gain on sales, servicing fees and other income.
Fair Value Notes
All asset-backed notes issued by Oportun on or after January 1, 2018
FICO® score or FICO®
A credit score created by Fair Isaac Corporation
GAAP
Generally Accepted Accounting Principles
Leverage
Average Daily Debt Balance divided by Average Daily Principal Balance
Loans Receivable at Amortized Cost
Loans held for investment that were originated prior to January 1, 2018
Loans Receivable at Fair Value (or "Fair Value Loans")
Managed Principal Balance at End of Period (1)
Total amount of outstanding principal balance for all loans, including loans sold, which we continue to service, at the end of the period
Net Revenue
Net Revenue is calculated by subtracting interest expense and provision (release) for loan losses from total revenue and adding the net increase (decrease) in fair value.
Operating Efficiency
Total operating expenses divided by total revenue
Owned Principal Balance at End of Period (1)
Total amount of outstanding principal balance for all loans, excluding loans sold, at the end of the period
Principal Balance
Original principal balance reduced by principal payments received to date
Return on Equity
Annualized net income divided by average stockholders' equity for a period