Oportun Financial Corp

Preferred Stock - The board of directors of the Company (the “Board”) has the authority, without further action by the Company's stockholders, to issue up to 100,000,000 shares of undesignated preferred stock with rights and preferences, including voting rights, designated from time to time by the Board. There wereno shares of undesignated preferred stock issued or outstanding as of September 30, 2026 or December 31, 2025.

Common Stock - As of September 30, 2026 and December 31, 2025, the Company was authorized to issue 1,000,000,000 shares of common stock with a par value of $0.0001 per share. As of September 30, 2026,46,351,842 and 46,079,819 shares were issued and outstanding, respectively, and 272,023 shares were held in treasury stock. As of December 31, 2025,44,709,065 and 44,437,042 shares were issued and outstanding, respectively, and 272,023 shares were held in treasury stock.

Warrants - In 2023, pursuant to the Original Credit Agreement, the Company issued detachable warrants to the lenders to purchase an aggregate of 4,193,453 shares of the Company’s common stock at an exercise price of $0.01 per share. On November 14, 2024, pursuant to the Credit Agreement, the Company issued additional detachable warrants to the lenders to purchase 4,853,006 shares of the Company’s common stock at an exercise price of $0.01. In May 2025 and June 2026,6,363,671 and 94,413 warrants were exercised, respectively, to purchase common stock. As of September 30, 2026 and December 31, 2025, the Company had outstanding and exercisable detachable warrants of 2,588,375, and 2,682,788, respectively.

The Company's stock-based plans are described and informational disclosures are provided in the Notes to the Consolidated Financial Statements included in the Annual Report.

Stock-based Compensation -Total stock-based compensation expense included in the Condensed Consolidated Statements of Operations (Unaudited) is as follows:

(1)Amounts shown are net of $0.2 million and $0.5 million of capitalized stock-based compensation for the three and nine months ended September 30, 2026, respectively, and net of $0.2 million and $0.6 million of capitalized stock-based compensation for the three and nine months ended September 30, 2025, respectively.

As of September 30, 2026 and December 31, 2025, the Company's total unrecognized compensation cost related to time-based and performance-based unvested restricted stock unit awards granted to employees was $22.7 million and $20.8 million, respectively, which will be recognized over a weighted average vesting period of approximately 1.9 years and 1.8 years, respectively.

Interest Income - Total interest income included in the Condensed Consolidated Statements of Operations (Unaudited) is as follows:

Non-interest Income - Total non-interest income included in the Condensed Consolidated Statements of Operations (Unaudited) is as follows:

For the three and nine months ended September 30, 2026 and 2025, the Company calculates its year-to-date income tax expense by applying the estimated annual effective tax rate to the year-to-date income from operations before income taxes and adjusts the income tax expense for discrete tax items recorded in the period.

During the three and nine months ended September 30, 2026, the Company recorded income tax expense of $11.7 million and $20.0 million, respectively, related to continuing operations, representing an effective tax rate of 33.7% and 37.1%, respectively. Income tax expense for the three and nine months ended September 30, 2025 was $9.0 million and $15.7 million, representing an effective income tax rate of 63.5% and 41.8%, respectively.

Income tax expense for the three months ended September 30, 2026 increased by $2.6 million or 28.8%, compared to the corresponding period in 2025, primarily as a result of higher pretax income and stock-based compensation. Income tax expense for the nine months ended September 30, 2026, increased by $4.3 million or 27.3%, compared to the corresponding period in 2025, primarily as a result of higher pretax income, resolving a state tax settlement, and increasing the reserve for unrecognized tax benefits.

The Company's effective tax rates for the three and nine months ended September 30, 2026 and 2025 differ from the statutory tax rates primarily due to the impacts of resolving a state tax settlement, the reserve for unrecognized tax benefits, and stock-based compensation.

Financial Instruments at Fair Value

The table below compares the fair value of loans receivable and asset-backed notes to their contractual balances for the periods shown:

The Company calculates the fair value of the asset-backed notes using independent pricing services and broker price indications, which are based on quoted prices for identical or similar notes, which are Level 2 input measures.

For personal loans receivable, the Company developed an internal model to estimate the fair value of loans receivable held for investment. To generate future expected cash flows, the model combines receivable characteristics with assumptions about borrower behavior based on the Company’s historical loan performance. These cash flows are then discounted using a required rate of return that management estimates would be used by a market participant. This model uses inputs that are inherently judgmental and reflect management’s best estimates of the assumptions a market participant would use to calculate fair value. The following tables present quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for Loans Receivable at Fair Value. The personal loans receivable balance at fair value as of September 30, 2026, consists of $2,514.4 million of unsecured personal loans receivable and $281.1 million of secured personal loans receivable.

(1)Figure disclosed as a percentage of outstanding principal balance.

(2) Unobservable inputs were weighted by outstanding principal balance, which are grouped by risk (type of customer, original loan maturity terms).

Fair value adjustments related to financial instruments where the fair value option has been elected are recorded through earnings for the three and nine months ended September 30, 2026 and 2025. Certain unobservable inputs may (in isolation) have either a directionally consistent or opposite impact on the fair value of the financial instrument for a given change in that input. When multiple inputs are used within the valuation techniques for loans, a change in one input in a certain direction may be offset by an opposite change from another input.

The table below presents a reconciliation of Loans Receivable at Fair Value on a recurring basis using significant unobservable inputs:

The Company had derivative instruments in connection with its bank partnership program with Pathward, N.A. ("Pathward") related to excess interest proceeds it expected to receive on loans retained by Pathward. Based on the agreement underlying the bank partnership program, for all loans originated and retained by Pathward, Pathward received a fixed interest rate. Under an amendment dated September 26, 2025 to the program agreement, the Company purchases 100% of Pathward originated loans and has purchased all loans previously owned by Pathward.

The Company recognized the derivative at fair value. The fair value was calculated using a discounted cash flow approach. The Company derived a base set of cash flows from historical data and management assumptions. From this base set of cash flows, the funds projected to be released to the Company according to the contractual terms outlined in the waterfall agreement were calculated on an aggregate basis and then discounted at a rate that was representative of equity yield. The derivative instrument as of December 31, 2025 was $(1.2) million; there wasno outstanding derivative balance as of September 30, 2026.

Financial Instruments Disclosed But Not Carried at Fair Value

The following table presents the carrying value and estimated fair values of financial assets and liabilities disclosed but not carried at fair value and the level within the fair value hierarchy:

The Company uses the following methods and assumptions to estimate fair value:

•Cash, cash equivalents, restricted cash and accounts payable ‑The carrying values of certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash and accounts payable, approximate Level 1 fair values of these financial instruments due to their short-term nature.

•Secured financing and corporate financing ‑The fair values of the Secured financing and Corporate financing facilities have been calculated using discount rates equivalent to the weighted-average market yield of comparable debt securities, which is a Level 2 input measure.

•Asset-backed borrowings at amortized cost ‑The fair values of the asset-backed borrowings at amortized cost include both securitizations carried at amortized cost and secured borrowings. We obtain indicative pricing on comparable debt securities for securitizations carried at amortized cost, which is a Level 2 input measure. Fair values of secured borrowings included in the asset-backed borrowings at amortized cost have been calculated by discounting the contractual cash flows at the interest rate the Company estimates such arrangement would bear if executed in the current market, which is a Level 3 input measure.

There wereno transfers in or out of Level 3 assets and liabilities for the three and nine months ended September 30, 2026 and 2025.

Leases - The Company’s leases are primarily for real property consisting of retail locations and office space and have remaining lease terms of less than 6 years.

The Company has elected the practical expedient to keep leases with terms of 12 months or less off the balance sheet as no recognition of a lease liability and a right-of-use asset is required. Operating lease expense is recognized on a straight-line basis over the lease term in “Technology and facilities” in the Condensed Consolidated Statements of Operations (Unaudited).

All of the Company’s existing lease arrangements are classified as operating leases. At the inception of a contract, the Company determines if the contract is or contains a lease. At the commencement date of a lease, the Company recognizes a lease liability equal to the present value of the lease payments and a right-of-use asset representing the Company’s right to use the underlying asset for the duration of the lease term. The Company’s leases include options to extend or terminate the arrangement at the end of the original lease term. The Company generally does not include renewal or termination options in its assessment of the leases unless extension or termination for certain assets is deemed to be reasonably certain. Variable lease payments and short-term lease costs were deemed immaterial. The Company’s leases do not provide an explicit rate. The Company uses its contractual borrowing rate to determine lease discount rates.

As of September 30, 2026, maturities of lease liabilities, excluding short-term leases and leases on a month-to-month basis, were as follows:

As of December 31, 2025, maturities of lease liabilities, excluding short-term leases and leases on a month-to-month basis, were as follows:

Rental expenses under operating leases for the three and nine months ended September 30, 2026, were $2.0 million, and $6.5 million, respectively, and for the three and nine months ended September 30, 2025, were $2.4 million, and $7.4 million, respectively.

Purchase Commitment ‑The Company has commitments to purchase information technology and communication services in the ordinary course of business, with various terms through 2029. These amounts are not reflective of the Company’s entire anticipated purchases under the related agreements; rather, they are determined based on the non-cancelable amounts to which the Company is contractually obligated. The Company’s purchase obligations are $8.5 million for the remainder of 2026, $12.7 million in 2027, $4.7 million in 2028, withno material obligations in or beyond 2029.

Bank Partnership Program and Servicing Agreement - The Company entered into a Program Management Agreement with Column National Association ("Column"), a national banking association, on June 30, 2026, establishing a new bank partnership lending program. Under the agreement, Column will originate certain unsecured personal loans for consumers in select states, and the Company will provide the platform and related services, including marketing, application processing, fraud-prevention, servicing and program-administration services, subject to Column’s oversight and control and compliance with applicable law. The agreement permits the Company to purchase loans originated by Column, other than loans retained by Column, and includes certain exclusivity, compliance, oversight, audit, reporting, reserve, information-security, indemnification, termination and wind-down provisions. The agreement has an initial term offour years and renews automatically for successiveone-year periods unless either party provides timely notice of non-renewal. As of September 30, 2026, the Company has a commitment to purchase an additional $2.9 million of program loans based on originations through September 30, 2026.

The Company entered into a bank partnership program with Pathward, on August 11, 2020, which was subsequently amended and restated effective August 11, 2025. Effective October 1, 2025, the Company began purchasing from Pathward 100% of all newly originated loans. The amendment also required the Company to acquire Pathward’s existing retained loan portfolio, with an initial purchase of loans that are current or <30 days delinquent on October 3, 2025, totaling approximately $115.0 million of unpaid principal and accrued interest. The remaining portfolio was purchased on February 4, 2026. Lending under the partnership was launched in August 2021 and as of September 30, 2026, the Company has a commitment to purchase an additional $43.2 million of program loans based on originations through September 30, 2026.

Unfunded Loan Commitments- Unfunded loan commitments at September 30, 2026 and December 31, 2025 were insignificant.

Litigation

From time to time, the Company may bring or be subject to other legal proceedings and claims in the ordinary course of business, including legal proceedings with third parties asserting infringement of their intellectual property rights, consumer litigation, and regulatory proceedings. The Company is not presently a party to any other legal proceedings that, if determined adversely to the Company, would individually or taken together have a material adverse effect on its business, financial condition, cash flows or results of operations.

On September 14, 2022, the Company entered into the Original Credit Agreement to borrow $150.0 million through a senior secured term loan. On March 10, 2023, the Company upsized and amended the Original Credit Agreement and borrowed an additional $75.0 million over four separate tranches from March 10, 2023 to June 30, 2023. In connection with the amendment of the Original Credit Agreement, the Company issued warrants to the lenders with each tranche to purchase a total of 4,193,453 shares of its common stock at an exercise price of$0.01 per share. On October 23, 2024, the Company entered into the Credit Agreement with certain affiliates of Neuberger and McLaren Harbor LLC, pursuant to which the Company borrowed $235 million through a senior secured term loan. Upon the closing of the Term Loan, the Company repaid all amounts due under the Original Credit Agreement in full. In connection with the Credit Agreement, the lenders retained the previously issued warrants and the Company issued the Neuberger affiliated lenders additional warrants to purchase a total of 2,426,503 shares of its common stock at an exercise price of $0.01 per share. Accordingly, Neuberger is deemed to be a beneficial owner of greater thanten percent of the Company's outstanding stock pursuant to generally accepted accounting principles. During the year ended December 31, 2025,3,937,168 warrants were exercised by Neuberger to purchase common stock, and 94,413 warrants were exercised during the nine months ended September 30, 2026. As of September 30, 2026 and December 31, 2025, Neuberger held outstanding and exercisable detachable warrants of 2,588,375 and 2,682,788, respectively. On May 7, 2026 Mclaren Harbor LLC assigned their interests in the loan, and Neuberger assumed sole interest in the loan. See Note 8, Borrowings for additional information on the Corporate financing facility and Note 10, Stockholders' Equity for additional information on the warrants.

On June 16, 2023, the Company entered into a forward flow whole loan sale agreement with Neuberger to sell up to $300.0 million of its personal loan originations over the subsequent twelve months. On April 26, 2024, the agreement was amended to extend the term and revised the commitment amount to $370.9 million of personal loan originations. The Company has fulfilled its commitment under the agreement and will continue to service these loans. As part of this agreement, during the nine months ended September 30, 2026, and as of December 31, 2025, no loans were transferred.

In addition, on April 2, 2025, the Company entered into a loan and security agreement with Neuberger, and certain other lenders, which was amended on October 8, 2025. The amended PLW III facility has atwo-year revolving period with a final maturity of April 1, 2028 and a borrowing capacity of $187.5 million. See Note 8, Borrowings, for additional information regarding our secured financings

The following table represents the interest income earned from our loans receivable portfolio and interest expense on our debt instruments recorded on the Company’s Condensed Consolidated Statements of Operations (Unaudited) related to transactions with Neuberger.

As of September 30, 2026 and December 31, 2025, Loans Receivable at Fair Value underlying the Secured borrowing were $41.4 million and $103.5 million, respectively, and Loans Receivable at Fair Value underlying the Secured financing were $15.1 million and $8.1 million, respectively. The Company had asset-backed borrowings at amortized cost of $47.8 million, Corporate financing of $121.2 million, and Secured financing of $13.2 million due to Neuberger as of September 30, 2026 and $116.9 million, $71.8 million and $7.2 million, respectively, due as of December 31, 2025. The Company also had an insignificant amount of Interest and fee receivable, net and Other liabilities in its Condensed Consolidated Balance Sheets (Unaudited) as of September 30, 2026 and December 31, 2025, related to these transactions.

The Company believes that it has executed all the transactions described herein on terms no less favorable to it than it could have obtained from unaffiliated third parties.

Segments are defined as components of an enterprise for which discrete financial information is available and evaluated regularly by the chief operating decision maker ("CODM") in deciding how to allocate resources and in assessing performance.

The Company’s Chief Executive Officer is considered to be the CODM. The Company hasone reportable segment. The segment provides unsecured and secured borrowings, savings and budgeting products to its members. The Company derives revenue within North America and manages the business activities on a consolidated basis. Interest income is derived from the Company's lending products and includes loan interest and associated fees, while non-interest income is largely driven by the Company's savings product and includes subscription revenue, and interest on member accounts.

Net income is the primary measure of segment profit and loss reviewed by CODM to assess business performance and strategy on allocation of resources, such as new product development and management’s compensation. The CODM also uses Net Income to review and approve the Company’s operating budget and financial forecasts.

Net income is reported on the unaudited Condensed Consolidated Statement of Operations as consolidated net income. The measure of segment assets is presented on the unaudited Condensed Consolidated Balance Sheets as Total Assets.

None.