oprt-20210930
--12-312021Q30001538716http://fasb.org/us-gaap/2021-01-31#AccountingStandardsUpdate201905MemberP2Y00015387162021-01-012021-09-30xbrli:shares00015387162021-10-29iso4217:USD00015387162021-09-3000015387162020-12-31iso4217:USDxbrli:shares00015387162021-07-012021-09-3000015387162020-07-012020-09-3000015387162020-01-012020-09-300001538716us-gaap:WarrantMember2020-12-310001538716us-gaap:CommonStockMember2020-12-310001538716oprt:APICCommonStockMember2020-12-310001538716us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001538716us-gaap:RetainedEarningsMember2020-12-310001538716us-gaap:TreasuryStockMember2020-12-310001538716us-gaap:CommonStockMember2021-01-012021-03-310001538716oprt:APICCommonStockMember2021-01-012021-03-3100015387162021-01-012021-03-310001538716us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001538716us-gaap:RetainedEarningsMember2021-01-012021-03-310001538716us-gaap:WarrantMember2021-03-310001538716us-gaap:CommonStockMember2021-03-310001538716oprt:APICCommonStockMember2021-03-310001538716us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001538716us-gaap:RetainedEarningsMember2021-03-310001538716us-gaap:TreasuryStockMember2021-03-3100015387162021-03-310001538716us-gaap:CommonStockMember2021-04-012021-06-300001538716oprt:APICCommonStockMember2021-04-012021-06-3000015387162021-04-012021-06-300001538716us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001538716us-gaap:RetainedEarningsMember2021-04-012021-06-300001538716us-gaap:WarrantMember2021-06-300001538716us-gaap:CommonStockMember2021-06-300001538716oprt:APICCommonStockMember2021-06-300001538716us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001538716us-gaap:RetainedEarningsMember2021-06-300001538716us-gaap:TreasuryStockMember2021-06-3000015387162021-06-300001538716us-gaap:CommonStockMember2021-07-012021-09-300001538716oprt:APICCommonStockMember2021-07-012021-09-300001538716us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001538716us-gaap:RetainedEarningsMember2021-07-012021-09-300001538716us-gaap:WarrantMember2021-09-300001538716us-gaap:CommonStockMember2021-09-300001538716oprt:APICCommonStockMember2021-09-300001538716us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001538716us-gaap:RetainedEarningsMember2021-09-300001538716us-gaap:TreasuryStockMember2021-09-300001538716us-gaap:WarrantMember2019-12-310001538716us-gaap:CommonStockMember2019-12-310001538716oprt:APICCommonStockMember2019-12-310001538716us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001538716us-gaap:RetainedEarningsMember2019-12-310001538716us-gaap:TreasuryStockMember2019-12-3100015387162019-12-310001538716us-gaap:CommonStockMember2020-01-012020-03-310001538716oprt:APICCommonStockMember2020-01-012020-03-3100015387162020-01-012020-03-3100015387162019-01-012019-12-310001538716us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310001538716srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310001538716us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001538716us-gaap:RetainedEarningsMember2020-01-012020-03-310001538716us-gaap:WarrantMember2020-03-310001538716us-gaap:CommonStockMember2020-03-310001538716oprt:APICCommonStockMember2020-03-310001538716us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001538716us-gaap:RetainedEarningsMember2020-03-310001538716us-gaap:TreasuryStockMember2020-03-3100015387162020-03-310001538716us-gaap:CommonStockMember2020-04-012020-06-300001538716oprt:APICCommonStockMember2020-04-012020-06-3000015387162020-04-012020-06-300001538716us-gaap:WarrantMember2020-04-012020-06-300001538716us-gaap:TreasuryStockMember2020-04-012020-06-300001538716us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001538716us-gaap:RetainedEarningsMember2020-04-012020-06-300001538716us-gaap:WarrantMember2020-06-300001538716us-gaap:CommonStockMember2020-06-300001538716oprt:APICCommonStockMember2020-06-300001538716us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001538716us-gaap:RetainedEarningsMember2020-06-300001538716us-gaap:TreasuryStockMember2020-06-3000015387162020-06-300001538716us-gaap:CommonStockMember2020-07-012020-09-300001538716oprt:APICCommonStockMember2020-07-012020-09-300001538716us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300001538716us-gaap:RetainedEarningsMember2020-07-012020-09-300001538716us-gaap:WarrantMember2020-09-300001538716us-gaap:CommonStockMember2020-09-300001538716oprt:APICCommonStockMember2020-09-300001538716us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300001538716us-gaap:RetainedEarningsMember2020-09-300001538716us-gaap:TreasuryStockMember2020-09-3000015387162020-09-300001538716us-gaap:EmployeeStockOptionMember2021-07-012021-09-300001538716us-gaap:EmployeeStockOptionMember2020-07-012020-09-300001538716us-gaap:EmployeeStockOptionMember2021-01-012021-09-300001538716us-gaap:EmployeeStockOptionMember2020-01-012020-09-300001538716us-gaap:RestrictedStockUnitsRSUMember2021-07-012021-09-300001538716us-gaap:RestrictedStockUnitsRSUMember2020-07-012020-09-300001538716us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001538716us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-09-300001538716us-gaap:EmployeeStockOptionMember2021-07-012021-09-300001538716us-gaap:EmployeeStockOptionMember2020-07-012020-09-300001538716us-gaap:EmployeeStockOptionMember2021-01-012021-09-300001538716us-gaap:EmployeeStockOptionMember2020-01-012020-09-300001538716us-gaap:RestrictedStockUnitsRSUMember2021-07-012021-09-300001538716us-gaap:RestrictedStockUnitsRSUMember2020-07-012020-09-300001538716us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001538716us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-09-300001538716us-gaap:WarrantMember2021-07-012021-09-300001538716us-gaap:WarrantMember2020-07-012020-09-300001538716us-gaap:WarrantMember2021-01-012021-09-300001538716us-gaap:WarrantMember2020-01-012020-09-300001538716us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-09-300001538716us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2020-12-31xbrli:pure0001538716us-gaap:FacilityClosingMember2021-01-012021-09-300001538716us-gaap:LineOfCreditMemberoprt:SecuredWarehouseFacilityMember2021-09-300001538716us-gaap:LineOfCreditMemberoprt:SecuredWarehouseFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-01-012021-09-300001538716us-gaap:LineOfCreditMemberoprt:SecuredWarehouseFacilityMember2020-12-310001538716us-gaap:LineOfCreditMemberoprt:SecuredWarehouseFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-01-012020-12-310001538716oprt:AssetBackedNotesSeries2021BMemberus-gaap:SecuredDebtMember2021-09-300001538716oprt:AssetBackedNotesSeries2021BMemberus-gaap:SecuredDebtMemberoprt:InitialCollateralMember2021-09-300001538716oprt:CurrentCollateralMemberoprt:AssetBackedNotesSeries2021BMemberus-gaap:SecuredDebtMember2021-09-300001538716oprt:AssetBackedNotesSeries2021BMemberus-gaap:SecuredDebtMember2021-01-012021-09-300001538716oprt:AssetBackedNotesSeries2021AMemberus-gaap:SecuredDebtMember2021-09-300001538716oprt:AssetBackedNotesSeries2021AMemberus-gaap:SecuredDebtMemberoprt:InitialCollateralMember2021-09-300001538716oprt:CurrentCollateralMemberoprt:AssetBackedNotesSeries2021AMemberus-gaap:SecuredDebtMember2021-09-300001538716oprt:AssetBackedNotesSeries2021AMemberus-gaap:SecuredDebtMember2021-01-012021-09-300001538716oprt:AssetbackedNotesSeries2019AMemberus-gaap:SecuredDebtMember2021-09-300001538716oprt:AssetbackedNotesSeries2019AMemberus-gaap:SecuredDebtMemberoprt:InitialCollateralMember2021-09-300001538716oprt:CurrentCollateralMemberoprt:AssetbackedNotesSeries2019AMemberus-gaap:SecuredDebtMember2021-09-300001538716oprt:AssetbackedNotesSeries2019AMemberus-gaap:SecuredDebtMember2021-01-012021-09-300001538716us-gaap:SecuredDebtMember2021-09-300001538716us-gaap:SecuredDebtMemberoprt:InitialCollateralMember2021-09-300001538716oprt:CurrentCollateralMemberus-gaap:SecuredDebtMember2021-09-300001538716oprt:AssetbackedNotesSeries2019AMemberus-gaap:SecuredDebtMember2020-12-310001538716oprt:AssetbackedNotesSeries2019AMemberus-gaap:SecuredDebtMemberoprt:InitialCollateralMember2020-12-310001538716oprt:CurrentCollateralMemberoprt:AssetbackedNotesSeries2019AMemberus-gaap:SecuredDebtMember2020-12-310001538716oprt:AssetbackedNotesSeries2019AMemberus-gaap:SecuredDebtMember2020-01-012020-12-310001538716oprt:AssetBackedNotesSeries2018DMemberus-gaap:SecuredDebtMember2020-12-310001538716oprt:AssetBackedNotesSeries2018DMemberus-gaap:SecuredDebtMemberoprt:InitialCollateralMember2020-12-310001538716oprt:CurrentCollateralMemberoprt:AssetBackedNotesSeries2018DMemberus-gaap:SecuredDebtMember2020-12-310001538716oprt:AssetBackedNotesSeries2018DMemberus-gaap:SecuredDebtMember2020-01-012020-12-310001538716oprt:AssetBackedNotesSeries2018CMemberus-gaap:SecuredDebtMember2020-12-310001538716oprt:AssetBackedNotesSeries2018CMemberus-gaap:SecuredDebtMemberoprt:InitialCollateralMember2020-12-310001538716oprt:CurrentCollateralMemberoprt:AssetBackedNotesSeries2018CMemberus-gaap:SecuredDebtMember2020-12-310001538716oprt:AssetBackedNotesSeries2018CMemberus-gaap:SecuredDebtMember2020-01-012020-12-310001538716oprt:AssetBackedNotesSeries2018BMemberus-gaap:SecuredDebtMember2020-12-310001538716oprt:AssetBackedNotesSeries2018BMemberus-gaap:SecuredDebtMemberoprt:InitialCollateralMember2020-12-310001538716oprt:CurrentCollateralMemberoprt:AssetBackedNotesSeries2018BMemberus-gaap:SecuredDebtMember2020-12-310001538716oprt:AssetBackedNotesSeries2018BMemberus-gaap:SecuredDebtMember2020-01-012020-12-310001538716us-gaap:SecuredDebtMemberoprt:AssetBackedNotesSeries2018AMember2020-12-310001538716us-gaap:SecuredDebtMemberoprt:AssetBackedNotesSeries2018AMemberoprt:InitialCollateralMember2020-12-310001538716oprt:CurrentCollateralMemberus-gaap:SecuredDebtMemberoprt:AssetBackedNotesSeries2018AMember2020-12-310001538716us-gaap:SecuredDebtMemberoprt:AssetBackedNotesSeries2018AMember2020-01-012020-12-310001538716us-gaap:SecuredDebtMember2020-12-310001538716us-gaap:SecuredDebtMemberoprt:InitialCollateralMember2020-12-310001538716oprt:CurrentCollateralMemberus-gaap:SecuredDebtMember2020-12-310001538716us-gaap:SecuredDebtMemberoprt:AssetBackedNotesSeries2018AMember2021-02-180001538716oprt:AssetBackedNotesSeries2021AMemberus-gaap:SecuredDebtMember2021-03-080001538716oprt:AssetBackedNotesSeries2021AMemberus-gaap:SecuredDebtMember2021-03-082021-03-08oprt:class0001538716oprt:AssetBackedNotesSeries2018BMemberus-gaap:SecuredDebtMember2021-03-240001538716oprt:AssetBackedNotesSeries2021BMemberus-gaap:SecuredDebtMember2021-05-100001538716oprt:AssetBackedNotesSeries2021BMemberus-gaap:SecuredDebtMember2021-05-102021-05-100001538716oprt:AssetBackedNotesSeries2021BMemberus-gaap:SecuredDebtMember2021-03-080001538716oprt:AssetBackedNotesSeries2018CMemberus-gaap:SecuredDebtMember2021-07-080001538716us-gaap:LineOfCreditMemberoprt:NewWarehouseFacilityMember2021-09-080001538716us-gaap:LineOfCreditMemberoprt:NewWarehouseFacilityMember2021-09-082021-09-080001538716us-gaap:LineOfCreditMemberoprt:SecuredWarehouseFacilityMember2021-09-082021-09-080001538716oprt:AssetBackedNotesSeries2018DMemberus-gaap:SecuredDebtMember2021-09-080001538716oprt:OportunIssuanceTrustSeries2021CMemberus-gaap:SubsequentEventMemberus-gaap:SecuredDebtMember2021-10-280001538716oprt:OportunIssuanceTrustSeries2021CMemberus-gaap:SubsequentEventMemberus-gaap:SecuredDebtMember2021-10-282021-10-280001538716us-gaap:PreferredStockMember2019-09-262019-09-260001538716us-gaap:WarrantMemberoprt:SeriesF1PreferredMember2019-09-262019-09-260001538716us-gaap:CommonStockMember2019-09-262019-09-260001538716us-gaap:CommonStockMember2020-06-092020-06-090001538716oprt:TechnologyandFacilitiesMember2021-07-012021-09-300001538716oprt:TechnologyandFacilitiesMember2020-07-012020-09-300001538716oprt:TechnologyandFacilitiesMember2021-01-012021-09-300001538716oprt:TechnologyandFacilitiesMember2020-01-012020-09-300001538716oprt:SalesandMarketingMember2021-07-012021-09-300001538716oprt:SalesandMarketingMember2020-07-012020-09-300001538716oprt:SalesandMarketingMember2021-01-012021-09-300001538716oprt:SalesandMarketingMember2020-01-012020-09-300001538716oprt:PersonnelMember2021-07-012021-09-300001538716oprt:PersonnelMember2020-07-012020-09-300001538716oprt:PersonnelMember2021-01-012021-09-300001538716oprt:PersonnelMember2020-01-012020-09-300001538716us-gaap:EmployeeStockOptionMember2021-09-300001538716us-gaap:EmployeeStockOptionMember2020-12-310001538716us-gaap:EmployeeStockOptionMember2020-01-012020-12-310001538716us-gaap:RestrictedStockUnitsRSUMember2021-09-300001538716us-gaap:RestrictedStockUnitsRSUMember2020-12-310001538716us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-12-310001538716us-gaap:MeasurementInputDefaultRateMembersrt:MinimumMemberus-gaap:FairValueInputsLevel3Member2021-09-300001538716us-gaap:MeasurementInputDefaultRateMembersrt:MaximumMemberus-gaap:FairValueInputsLevel3Member2021-09-300001538716us-gaap:MeasurementInputDefaultRateMembersrt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Member2021-09-300001538716us-gaap:MeasurementInputDefaultRateMembersrt:MinimumMemberus-gaap:FairValueInputsLevel3Member2020-12-310001538716us-gaap:MeasurementInputDefaultRateMembersrt:MaximumMemberus-gaap:FairValueInputsLevel3Member2020-12-310001538716us-gaap:MeasurementInputDefaultRateMembersrt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Member2020-12-310001538716srt:MinimumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputPrepaymentRateMember2021-09-300001538716srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputPrepaymentRateMember2021-09-300001538716srt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputPrepaymentRateMember2021-09-300001538716srt:MinimumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputPrepaymentRateMember2020-12-310001538716srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputPrepaymentRateMember2020-12-310001538716srt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputPrepaymentRateMember2020-12-310001538716srt:MinimumMemberus-gaap:MeasurementInputExpectedTermMemberus-gaap:FairValueInputsLevel3Member2021-09-300001538716srt:MaximumMemberus-gaap:MeasurementInputExpectedTermMemberus-gaap:FairValueInputsLevel3Member2021-09-300001538716srt:WeightedAverageMemberus-gaap:MeasurementInputExpectedTermMemberus-gaap:FairValueInputsLevel3Member2021-09-300001538716srt:MinimumMemberus-gaap:MeasurementInputExpectedTermMemberus-gaap:FairValueInputsLevel3Member2020-12-310001538716srt:MaximumMemberus-gaap:MeasurementInputExpectedTermMemberus-gaap:FairValueInputsLevel3Member2020-12-310001538716srt:WeightedAverageMemberus-gaap:MeasurementInputExpectedTermMemberus-gaap:FairValueInputsLevel3Member2020-12-310001538716us-gaap:MeasurementInputDiscountRateMembersrt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Member2021-09-300001538716us-gaap:MeasurementInputDiscountRateMembersrt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Member2020-12-310001538716us-gaap:LoansReceivableMemberus-gaap:FairValueInputsLevel3Member2021-06-300001538716us-gaap:LoansReceivableMemberus-gaap:FairValueInputsLevel3Member2020-06-300001538716us-gaap:LoansReceivableMemberus-gaap:FairValueInputsLevel3Member2020-12-310001538716us-gaap:LoansReceivableMemberus-gaap:FairValueInputsLevel3Member2019-12-310001538716us-gaap:LoansReceivableMemberus-gaap:FairValueInputsLevel3Member2021-07-012021-09-300001538716us-gaap:LoansReceivableMemberus-gaap:FairValueInputsLevel3Member2020-07-012020-09-300001538716us-gaap:LoansReceivableMemberus-gaap:FairValueInputsLevel3Member2021-01-012021-09-300001538716us-gaap:LoansReceivableMemberus-gaap:FairValueInputsLevel3Member2020-01-012020-09-300001538716us-gaap:LoansReceivableMemberus-gaap:FairValueInputsLevel3Member2021-09-300001538716us-gaap:LoansReceivableMemberus-gaap:FairValueInputsLevel3Member2020-09-300001538716us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-09-300001538716us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-09-300001538716us-gaap:FairValueInputsLevel1Member2021-09-300001538716us-gaap:FairValueInputsLevel2Member2021-09-300001538716us-gaap:FairValueInputsLevel3Member2021-09-300001538716us-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310001538716us-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001538716us-gaap:FairValueInputsLevel1Member2020-12-310001538716us-gaap:FairValueInputsLevel2Member2020-12-310001538716us-gaap:FairValueInputsLevel3Member2020-12-310001538716srt:MaximumMember2021-09-300001538716us-gaap:FacilityClosingMember2021-07-012021-09-300001538716us-gaap:ContractTerminationMember2021-01-012021-09-300001538716oprt:InformationTechnologyAndCommunicationServicesMember2021-09-3000015387162021-02-0500015387162021-07-280001538716oprt:BankPartnershipProgramAndServicingAgreementLoansMember2021-01-012021-09-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
(Mark One)
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
or
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to ___________
Commission File Number 001-39050
OPORTUN FINANCIAL CORPORATION
(Exact Name of Registrant as Specified in its Charter)
Delaware45-3361983
State or Other Jurisdiction of
Incorporation or Organization
I.R.S. Employer Identification No.
2 Circle Star Way
San Carlos,CA94070
Address of Principal Executive OfficesZip Code
(650) 810-8823
Registrant’s Telephone Number, Including Area Code

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.0001 par value per shareOPRTNasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes      No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes     No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Smaller reporting company
Accelerated filer
Emerging growth company
Non-accelerated filer
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes     No 
The number of shares of registrant’s common stock outstanding as of October 29, 2021 was 28,387,950.



TABLE OF CONTENTS
PART I ‑ FINANCIAL INFORMATION
PART II ‑ OTHER INFORMATION

2


GLOSSARY

Terms and abbreviations used in this report are defined below.
Term or AbbreviationDefinition
30+ Day Delinquency RateUnpaid principal balance for our owned loans and credit card receivables 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
Active CustomersNumber of customers with an outstanding loan or an active credit card owned or serviced by us at the end of a period. Active Customers include customers whose loans or accounts were originated by us or under a bank partnership program that we service. Customers with charged-off accounts are excluded from Active Customers
Adjusted EBITDAAdjusted 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 expense, depreciation and amortization, certain non-recurring charges, origination fees for Fair Value Loans, net and fair value mark-to-market adjustments
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
Adjusted Net IncomeAdjusted 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 certain non-recurring charges
Adjusted Operating EfficiencyAdjusted Operating Efficiency is a non-GAAP financial measure calculated by dividing adjusted total operating expenses (excluding stock-based compensation expense and certain non-recurring charges) by 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 total stockholders’ equity
Aggregate OriginationsAggregate amount disbursed to borrowers and credit granted on credit cards during a specific period, including amounts originated by us or loans or accounts that were originated under a bank partnership program. Aggregate Originations exclude any fees in connection with the origination of a loan
Annualized Net Charge-Off RateAnnualized loan and credit card principal losses (net of recoveries) divided by the Average Daily Principal Balance of owned loans and credit card receivables for the period
AOCIAccumulated other comprehensive income (loss)
APRAnnual Percentage Rate
Asset-Backed Notes at Fair Value (or "Fair Value Notes")
All asset-backed notes issued by Oportun on or after January 1, 2018
Average Daily Debt BalanceAverage of outstanding debt principal balance at the end of each calendar day during the period
Average Daily Principal BalanceAverage of outstanding principal balance of owned loans and credit card receivables at the end of each calendar day during the period
BoardOportun’s Board of Directors
Cost of DebtAnnualized interest expense divided by Average Daily Debt Balance
Customer Acquisition Cost (or "CAC")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 and new credit cards activated to new and returning customers during a period
Emergency Hardship DeferralAny receivable that currently has one or more payments deferred and added at the end of the loan payment schedule in connection with a local or wide-spread emergency declared by local, state or federal government
Fair Value Loans (or "Loans Receivable at Fair Value")All loans receivable held for investment that were originated on or after January 1, 2018. Upon the adoption of ASU 2019-05 as of January 1, 2020 all loans receivable held for investment are reported in this line item for all prospective reporting periods
Fair Value Pro FormaIn order to facilitate comparisons to periods prior to January 1, 2018, certain metrics included in this document 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 Notes (or "Asset-Backed Notes at Fair Value")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
GAAPGenerally Accepted Accounting Principles
LeverageAverage Daily Debt Balance divided by Average Daily Principal Balance
Loans Receivable at Fair Value (or "Fair Value Loans")All loans receivable held for investment that were originated on or after January 1, 2018. Upon the adoption of ASU 2019-05 as of January 1, 2020 all loans receivable held for investment are reported in this line item for all prospective reporting periods
Managed Principal Balance at End of PeriodTotal amount of outstanding principal balance for all loans and credit card receivables, including loans and receivables sold, which we continue to service, at the end of the period
Net RevenueNet Revenue is calculated by subtracting interest expense from total revenue and adding the net increase (decrease) in fair value
Operating EfficiencyTotal operating expenses divided by total revenue
Owned Principal Balance at End of PeriodTotal amount of outstanding principal balance for all loans and credit card receivables, excluding loans and receivables sold or loans retained by a bank partner, at the end of the period
3


Term or AbbreviationDefinition
Personal Loan Warehouse (or "PLW")
Revolving personal loan warehouse debt facility, collateralized by unsecured personal loans and secured personal loans that replaced VFN facility. Included as "Secured Financing"
Portfolio YieldAnnualized interest income as a percentage of Average Daily Principal Balance
Principal BalanceOriginal principal balance reduced by principal payments received and principal charge-offs to date for our personal loans. Purchases and cash advances, reduced by returns and principal payments received and principal charge-offs to date for our credit cards
Return on EquityAnnualized net income divided by average stockholders' equity for a period
Secured FinancingAsset-backed revolving debt facilities. The VFN facility, collateralized by unsecured personal loans, terminated September 8, 2021 and replaced with the PLW facility collateralized by unsecured personal loans and secured personal loans
Variable Funding Note Warehouse (or "VFN")Asset-backed revolving debt facility, collateralized by unsecured personal loans, terminated on September 8, 2021. Formerly defined solely as "Secured Financing"
VIEsVariable interest entities
Weighted Average Interest RateAnnualized interest expense as a percentage of average debt

4


PART I ‑ FINANCIAL INFORMATION

Item 1. Financial Statements

OPORTUN FINANCIAL CORPORATION
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands, except share and per share data)
September 30,December 31,
20212020
Assets
Cash and cash equivalents$168,407 $136,187 
Restricted cash55,348 32,403 
Loans receivable at fair value1,971,375 1,696,526 
Interest and fees receivable, net16,292 15,426 
Right of use assets - operating34,952 46,820 
Other assets101,507 81,689 
Total assets$2,347,881 $2,009,051 
Liabilities and stockholders' equity
Liabilities
Secured financing$525,471 $246,385 
Asset-backed notes at fair value 1,162,948 1,167,309 
Lease liabilities43,498 49,684 
Other liabilities104,545 79,306 
Total liabilities1,836,462 1,542,684 
Stockholders' equity
Common stock, $0.0001 par value - 1,000,000,000 shares authorized at September 30, 2021 and December 31, 2020; 28,656,945 shares issued and 28,384,922 shares outstanding at September 30, 2021; 27,951,286 shares issued and 27,679,263 shares outstanding at December 31, 2020
6 6 
Common stock, additional paid-in capital448,214 436,499 
Accumulated other comprehensive loss(172)(261)
Retained earnings69,680 36,432 
Treasury stock at cost, 272,023 shares at September 30, 2021 and December 31, 2020
(6,309)(6,309)
Total stockholders’ equity511,419 466,367 
Total liabilities and stockholders' equity$2,347,881 $2,009,051 
See Notes to the Condensed Consolidated Financial Statements.

5


OPORTUN FINANCIAL CORPORATION
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)
(in thousands, except share and per share data)
Three Months Ended September 30,
Nine Months Ended September 30,
2021202020212020
Revenue
Interest income$145,444 $128,739 $401,224 $415,525 
Non-interest income13,640 8,028 31,427 27,377 
Total revenue159,084 136,767 432,651 442,902 
Less:
Interest expense10,574 13,408 36,241 44,879 
Net decrease in fair value(8,987)(29,633)(26,457)(177,584)
Net revenue139,523 93,726 369,953 220,439 
Operating expenses:
Technology and facilities34,226 31,641 100,274 93,927 
Sales and marketing32,102 20,634 79,743 65,521 
Personnel29,039 26,662 84,412 79,925 
Outsourcing and professional fees13,348 11,491 40,762 36,232 
General, administrative and other2,686 11,138 22,862 17,591 
Total operating expenses111,401 101,566 328,053 293,196 
Income (loss) before taxes28,122 (7,840)41,900 (72,757)
Income tax expense (benefit)5,143 (1,794)8,652 (19,162)
Net income (loss)$22,979 $(6,046)$33,248 $(53,595)
Change in post-termination benefit obligation77 6 89 (106)
Total comprehensive income (loss)$23,056 $(6,040)$33,337 $(53,701)
Net income (loss) attributable to common stockholders$22,979 $(6,046)$33,248 $(53,595)
Share data:
Earnings (loss) per share:
Basic$0.82 $(0.22)$1.19 $(1.97)
Diluted$0.75 $(0.22)$1.11 $(1.97)
Weighted average common shares outstanding:
Basic28,167,686 27,459,192 27,982,273 27,237,246 
Diluted30,503,773 27,459,192 30,059,675 27,237,246 
See Notes to the Condensed Consolidated Financial Statements.
6


OPORTUN FINANCIAL CORPORATION
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited)
(in thousands, except share data)
For the Nine Months Ended September 30, 2021
Common Stock WarrantsCommon Stock
SharesPar Value SharesPar Value Additional Paid-in CapitalAccumulated Other Comprehensive Income (Loss)Retained EarningsTreasury StockTotal Stockholders' Equity
Balance – January 1, 2021 $ 27,679,263 $6 $436,499 $(261)$36,432 $(6,309)$466,367 
Issuance of common stock upon exercise of stock options— — 33,526 — 307 — — — 307 
Stock-based compensation expense— — — — 5,088 — — — 5,088 
Vesting of restricted stock units, net— — 261,794 — (2,794)— — — (2,794)
Change in post-termination benefit obligation— — — — — 6 — — 6 
Net income— — — — — — 3,019 — 3,019 
Balance – March 31, 2021 $ 27,974,583 $6 $439,100 $(255)$39,451 $(6,309)$471,993 
Issuance of common stock upon exercise of stock options— — 10,114 — 159 — — — 159 
Stock-based compensation expense— — — — 5,366 — — — 5,366 
Vesting of restricted stock units, net— — 49,227 — (442)— — — (442)
Change in post-termination benefit obligation— — — — — 6 — — 6 
Net income— — — — — — 7,250 — 7,250 
Balance – June 30, 2021 $ 28,033,924 $6 $444,183 $(249)$46,701 $(6,309)$484,332 
Issuance of common stock upon exercise of stock options— — 139,096 — 2,140 $— — — 2,140 
Stock-based compensation expense— — — — 4,868 — — — 4,868 
Vesting of restricted stock units, net— — 211,902 — (2,977)— — — (2,977)
Change in post-termination benefit obligation— — — — — 77 — — 77 
Net income— — — — — — 22,979 — 22,979 
Balance – September 30, 2021 $ 28,384,922 $6 $448,214 $(172)$69,680 $(6,309)$511,419 

See Notes to the Condensed Consolidated Financial Statements.



7


OPORTUN FINANCIAL CORPORATION
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited)
(in thousands, except share data)
For the Nine Months Ended September 30, 2020
Convertible Preferred and Common Stock WarrantsCommon Stock
SharesPar Value SharesPar Value Additional Paid-in CapitalAccumulated Other Comprehensive Income (Loss)Retained EarningsTreasury StockTotal Stockholders' Equity
Balance – January 1, 202023,512 $63 27,003,157 $6 $418,299 $(162)$76,679 $(6,119)$488,766 
Issuance of common stock upon exercise of stock options— — 3,161 — 20 — — — 20 
Stock-based compensation expense— — — — 4,151 — — — 4,151 
Vesting of restricted stock units, net— — 137,479 — (813)— — — (813)
Cumulative effect of adoption of ASU 2019-05— — — — — — 4,835 — 4,835 
Change in post-termination benefit obligation— — — — — (117)— — (117)
Net loss— — — — — — (13,301)— (13,301)
Balance – March 31, 202023,512 $63 27,143,797 $6 $421,657 $(279)$68,213 $(6,119)$483,541 
Issuance of common stock upon exercise of stock options— — 22,407 — 79 — — — 79 
Stock-based compensation expense— — — — 4,972 — — — 4,972 
Issuance of common stock upon exercise of warrants(23,512)(63)10,972 — 253 — — (190) 
Vesting of restricted stock units, net— — 153,624 — (17)— — — (17)
Change in post-termination benefit obligation— — — — — 5 — — 5 
Net loss— — — — — — (34,248)— (34,248)
Balance – June 30, 2020 $ 27,330,800 $6 $426,944 $(274)$33,965 $(6,309)$454,332 
Issuance of common stock upon exercise of stock options— — 4,018 — 24 — — — 24 
Stock-based compensation expense— — — — 5,194 — — — 5,194 
Vesting of restricted stock units, net— — 248,210 — (489)— — — (489)
Change in post-termination benefit obligation— — — — — 6 — — 6 
Net loss— — — — — — (6,046)— (6,046)
Balance – September 30, 2020 $ 27,583,028 $6 $431,673 $(268)$27,919 $(6,309)$453,021 

See Notes to the Condensed Consolidated Financial Statements.
8


OPORTUN FINANCIAL CORPORATION
Condensed Consolidated Statements of Cash Flow (Unaudited)
(in thousands)
Nine Months Ended September 30,
2021

2020
Cash flows from operating activities
Net income (loss)$33,248 $(53,595)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization20,390 14,878 
Fair value adjustment, net26,457 177,584 
Origination fees for loans receivable at fair value, net(9,070)3,520 
Gain on loan sales(17,083)(13,406)
Stock-based compensation expense14,542 14,317 
Deferred tax provision, net14,002 (14,913)
Other, net23,607 10,688 
Originations of loans sold and held for sale(136,285)(134,552)
Proceeds from sale of loans151,924 147,627 
Changes in operating assets and liabilities:
Interest and fee receivable, net(2,871)(3,678)
Other assets(18,224)(8,242)
Amount due to whole loan buyer3,942 (6,544)
Other liabilities(851)5,723 
Net cash provided by operating activities103,728 139,407 
Cash flows from investing activities
Originations of loans(1,113,515)(665,148)
Repayments of loan principal817,843 804,619 
Purchase of fixed assets, net(2,561)(3,610)
Capitalization of system development costs(18,508)(16,492)
Net cash provided by (used in) investing activities(316,741)119,369 
Cash flows from financing activities
Borrowings under secured financing895,535 414,000 
Borrowings under asset-backed notes867,251  
Repayments of secured financing(615,994)(284,006)
Repayments of asset-backed notes(875,007)(360,001)
Repayments of capital lease obligations (29)
Payments of deferred financing costs (205)
Net payments related to stock-based activities(3,607)(1,196)
Net cash provided by (used in) financing activities268,178 (231,437)
Net increase in cash and cash equivalents and restricted cash55,165 27,339 
Cash and cash equivalents and restricted cash, beginning of period168,590 136,141 
Cash and cash equivalents and restricted cash, end of period$223,755 $163,480 
Supplemental disclosure of cash flow information
Cash and cash equivalents$168,407 $109,656 
Restricted cash55,348 53,824 
Total cash and cash equivalents and restricted cash$223,755 $163,480 
Cash paid for income taxes, net of refunds$2,048 $2,443 
Cash paid for interest$36,582 $44,219 
Cash paid for amounts included in the measurement of operating lease liabilities$13,802 $11,730 
Supplemental disclosures of non-cash investing and financing activities
Right of use assets obtained in exchange for operating lease obligations$6,677 $7,404 
Non-cash investments in capitalized assets$1,960 $491 
Non-cash financing activities$1,121 $ 
See Notes to the Condensed Consolidated Financial Statements.
9


OPORTUN FINANCIAL CORPORATION
Notes to the Condensed Consolidated Financial Statements (Unaudited)
September 30, 2021

1.Organization and Description of Business

Oportun Financial Corporation (together with its subsidiaries, "Oportun" or the " Company") provides inclusive, affordable financial services to customers who do not have a credit score, known as credit invisibles, or who may have a limited credit history and are "mis-scored," primarily because they have a credit history that is too limited to be accurately scored by credit bureaus. The Company's primary product offerings are unsecured installment loans that are affordably priced and that help customers establish a credit history. The Company continues to expand beyond its core offering into other financial services that a significant portion of its customers already use, such as secured personal loans and credit cards. The Company uses models that are developed with Artificial Intelligence ("A.I.") and built on over 15 years of proprietary consumer insights and billions of data points. The Company's proprietary scoring model and continually evolving data analytics have enabled it to underwrite the risk of the hardworking customers that it serves. The Company is headquartered in San Carlos, California. The Company has been certified by the United States Department of the Treasury as a Community Development Financial Institution ("CDFI") since 2009.

The Company uses securitization transactions, warehouse facilities and whole loan sales, to finance the principal amount of most of the loans it makes to its customers.

Segments

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 and the Company's Chief Financial Officer are collectively considered to be the CODM. The CODM reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. The Company’s operations constitute a single reportable segment.

2.Summary of Significant Accounting Policies

Basis of Presentation ‑ The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). These statements are unaudited and reflect all normal, recurring adjustments that are, in management's opinion, necessary for the fair presentation of results. The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain prior-period financial information has been reclassified to conform to current period presentation. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and the related notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 ("the Annual Report"), filed with the Securities and Exchange Commission ("SEC") on February 23, 2021.

Use of Estimates ‑ The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of income and expenses during the reporting period. These estimates are based on information available as of the date of the condensed consolidated financial statements; therefore, actual results could differ from those estimates and assumptions.

Accounting Policies - There have been no changes to the Company's significant accounting policies from those described in Part II, Item 8 - Financial Statements and Supplementary Data in the Annual Report, except for the new accounting pronouncements subsequently adopted as noted below.

Recently Adopted Accounting Standards

Income Taxes - In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles of accounting for income taxes and to improve the consistent application of GAAP for other areas of accounting for income taxes by clarifying and amending existing guidance. The ASU is effective for fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company adopted this ASU effective January 1, 2021 with no impact on its condensed consolidated financial statements and disclosures.



10


3.Earnings (Loss) per Share

Basic and diluted earnings (loss) per share are calculated as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands, except share and per share data)2021202020212020
Net income (loss)$22,979 $(6,046)$33,248 $(53,595)
Net income (loss) attributable to common stockholders$22,979 $(6,046)$33,248 $(53,595)
Basic weighted-average common shares outstanding28,167,686 27,459,192 27,982,273 27,237,246 
Weighted average effect of dilutive securities:
Stock options1,451,687  1,351,288  
Restricted stock units884,400  726,114  
Diluted weighted-average common shares outstanding30,503,773 27,459,192 30,059,675 27,237,246 
Earnings (loss) per share:
Basic$0.82 $(0.22)$1.19 $(1.97)
Diluted$0.75 $(0.22)$1.11 $(1.97)

The following common share equivalent securities have been excluded from the calculation of diluted weighted-average common shares outstanding because the effect is anti-dilutive for the periods presented:
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Stock options1,597,130 4,462,158 2,229,446 4,352,649 
Restricted stock units 2,331,678 15,102 2,120,068 
Warrants   13,866 
Total anti-dilutive common share equivalents1,597,130 6,793,836 2,244,548 6,486,583 

4.Variable Interest Entities

As part of the Company’s overall funding strategy, the Company transfers a pool of designated loans receivable to wholly owned special-purpose subsidiaries ("VIEs") to collateralize certain asset-backed financing transactions. The Company has determined that it is the primary beneficiary of these VIEs because it has the power to direct the activities that most significantly impact the VIEs’ economic performance and the obligation to absorb the losses or the right to receive benefits from the VIEs that could potentially be significant to the VIEs. Such power arises from the Company’s contractual right to service the loans receivable securing the VIEs’ asset-backed debt obligations. The Company has an obligation to absorb losses or the right to receive benefits that are potentially significant to the VIEs because it retains the residual interest of each asset-backed financing transaction either in the form of an asset-backed certificate. Accordingly, the Company includes the VIEs’ assets, including the assets securing the financing transactions, and related liabilities in its condensed consolidated financial statements.

Each VIE issues a series of asset-backed securities that are supported by the cash flows arising from the loans receivable securing such debt. Cash inflows arising from such loans receivable are distributed monthly to the transaction’s lenders and related service providers in accordance with the transaction’s contractual priority of payments. The creditors of the VIEs above have no recourse to the general credit of the Company as the primary beneficiary of the VIEs and the liabilities of the VIEs can only be settled by the respective VIE’s assets. The Company retains the most subordinated economic interest in each financing transaction through its ownership of the respective residual interest in each VIE. The Company has no obligation to repurchase loans receivable that initially satisfied the financing transaction’s eligibility criteria but subsequently became delinquent or a defaulted loans receivable.

11


The following table represents the assets and liabilities of consolidated VIEs recorded on the Company’s Condensed Consolidated Balance Sheets (Unaudited):
September 30,December 31,
(in thousands)20212020
Consolidated VIE assets
Restricted cash$33,182 $23,726 
Loans receivable at fair value1,886,776 1,580,061 
Interest and fee receivable15,233 14,191 
Total VIE assets1,935,191 1,617,978 
Consolidated VIE liabilities
Secured financing (1)
529,002 246,994 
Asset-backed notes at fair value 1,162,948 1,167,309 
Total VIE liabilities$1,691,950 $1,414,303 
(1) Amounts exclude deferred financing costs. See Note 7, Borrowings for additional information.

5.Loans Held for Sale

Whole Loan Sale Program ‑ In November 2014, the Company entered into a whole loan sale agreement with an institutional investor, which agreement was amended in March 2021 in which the term of the current agreement is set to expire on March 4, 2022. Pursuant to the agreement, the Company sells at least 10% of its unsecured loan originations, with an option to sell an additional 5%, subject to certain eligibility criteria and minimum and maximum volumes.

In addition, from July 2017 to August 2020, the Company was party to a separate whole loan sale arrangement with an institutional investor providing for a commitment to sell 100% of the Company’s loans originated under its Access Loan Program. The Company chose not to renew the arrangement and allowed the agreement to expire on its terms on August 5, 2020.

The originations of loans sold and held for sale during the three months ended September 30, 2021 was $61.3 million and the Company recorded a gain on sale of $7.3 million and servicing revenue of $3.3 million. The originations of loans sold and held for sale during the three months ended September 30, 2020 was $39.8 million and the Company recorded a gain on sale of $3.9 million and servicing revenue of $3.5 million.

The originations of loans sold and held for sale during the nine months ended September 30, 2021 was $136.3 million and the Company recorded a gain on sale of $17.1 million and servicing revenue of $9.3 million. The originations of loans sold and held for sale during the nine months ended September 30, 2020 was $134.6 million and the Company recorded a gain on sale of $13.4 million and servicing revenue of $12.0 million.

12


6.Other Assets

Other assets consist of the following:
September 30,December 31,
(in thousands)20212020
Fixed assets
Computer and office equipment$12,612 $11,182 
Furniture and fixtures8,549 11,072 
Purchased software2,046 1,992 
Leasehold improvements20,221 29,543 
Total cost43,428 53,789 
Less: Accumulated depreciation(33,736)(37,939)
Total fixed assets, net$9,692 $15,850 
System development costs:
System development costs$75,821 $55,943 
Less: Accumulated amortization(40,256)(28,524)
Total system development costs, net$35,565 $27,419 
Loans held for sale2,602 1,158 
Prepaid expenses17,962 17,241 
Deferred tax assets2,018 1,716 
Tax assets and other33,668 18,305 
Total other assets$101,507 $81,689 

Fixed Assets

Depreciation and amortization expense for the three months ended September 30, 2021 and 2020 was $1.3 million and $2.2 million, respectively, and for the nine months ended September 30, 2021 and 2020 it was $8.7 million, and $7.3 million, respectively. As of September 30, 2021, the Company retired $11.6 million of fixed assets associated with retail locations that were closed as a result of the retail network optimization plan.

System Development Costs

Amortization of system development costs for the three months ended September 30, 2021 and 2020 was $4.4 million and $2.9 million, respectively, and for the nine months ended September 30, 2021 and 2020 they were $11.7 million and $7.6 million, respectively. System development costs capitalized in the three months ended September 30, 2021 and 2020, were $7.5 million and $5.3 million, respectively, and for the nine months ended September 30, 2021 and 2020 they were $19.9 million and $16.4 million, respectively.

7.Borrowings

The following table presents information regarding the Company's Secured Financing facilities:
September 30, 2021
Variable Interest EntityCurrent BalanceCommitment Amount
Maturity Date (1)
Interest Rate
(in thousands)
Oportun PLW Trust$525,471 $600,000 September 1, 2024
LIBOR (minimum of 0.00%) + 2.17%
December 31, 2020
Variable Interest EntityCurrent BalanceCommitment Amount
Maturity Date (1)
Interest Rate
(in thousands)
Oportun Funding V, LLC$