Hello, everybody, and thank you for attending the OppFi investor presentation at the Oppenheimer Conference this afternoon. Let me direct you to the fun slide, slide two, the disclaimer, the forward-looking statements, cautionary language slide that we will be using in our presentation as we have some non-GAAP measures that we present. We do provide a full reconciliation for all non-GAAP measures at the end of the presentation. This presentation will also be on the OppFi investor website if you would like to refer to this at a later date. With that, I'm Mike Gallentine, Head of Investor Relations, and I'm here with Pamela Johnson, our CFO for OppFi, and I'd like to turn the call over to Pam for her presentation.
Thank you, Mike, and welcome, everyone. It's always fun for me to be able to tell the story about OppFi, a company I'm very proud to work for, and share the great things we've done and that we plan to do. We'll start here, just give you kind of an overview of the company. We are a tech-enabled digital finance platform that partners with banks to offer financial products and services to everyday Americans. We are mission-driven. We have very high customer satisfaction scores. We are so proud of our 79 NPS that we consistently have with our customers. We have a significant economic scale. We've been in business since 2012, and we facilitated more than $7.8 billion in gross loan issuance, covering over $4.3 million loans since our inception. We have 10 consecutive years of positive net income, and we've been very profitable across all business cycles.
We've seen ups and downs, and we continue to show profitability through the tougher times as well as the good times. There is a large addressable market. I'll talk a little bit about that in a minute, but there's 60 million U.S., consumers that face credit insecurity and have little access to other types of credit. We have strong fundamentals and a balance sheet to support our operations. We have wonderful operating efficiency that drives great free cash flow and a robust balance sheet that will position us for growth. Our mission is to serve those 60 million U.S., consumers that are credit marginalized. They are the everyday consumer that struggles with a lot of things in their financial life. 43% face financial difficulties paying bills or expenses.
42% of households have less than a month of savings, and 39% of credit applicants were turned down or did not get as much credit as they applied for. Our customers are looking for funds to help them with their everyday expenses and emergencies. As I like to say, they are borrowing usually for needs, not wants. They are your neighbors. They are the people who work for you. They may be your children. We feel very passionate about what we do and how we can help them. I'm not going to go through each of these, but this kind of gives you what the typical OppFi customer is. We call them the everyday American. You may be a little surprised about some of these things.
The average age of our customers, their annual income, the fact that 33% of them are college educated and 28% of them actually own their homes. I'll take a few minutes now and talk to you about our product. We are a platform. We lead with a customer-first mentality. You saw those N P S, and a 79 is an exceptionally high NPS . We deliver a top-tier digital personal experience to an underbanked consumer. When we talk to underbanked, those folks do have trouble getting credit and getting checking accounts, even in some cases now. Our folks are required to have a checking account in order for us to underwrite them. Our product is a simple interest amortizing installment loan with no balloon payments. It's very, very transparent, very easy to understand.
The customer knows when the loan payments will start, when they'll come out, how much they will be, and when they will end. We have no fees. I think this is something that's pretty amazing. We have no late fees. We have no NSF fees. We have no origination fees. The customer knows exactly the terms of that loan. We report to three major credit bureaus. The customer has an opportunity, if they service our loan and perform as expected, they can improve their credit score, and many of them do through our services. We work to give them same-day funding depending on when their loan applications come in. It's very possible we can get them cash that very same day. We work compassionately with our customers.
I call us a compassionate collector in that we have lots of payment plans and opportunities to work with the customer when they face a hardship. We differentiate ourselves from the other options that our customers tend to have, which are payday loans and tribal loans. Both of those generally have fairly significant fees that come with them, much higher effective APRs than ours. In many cases, payday loans in particular don't verify the ability to repay, and that's something that we think is very important, what we call cash flow underwriting. We look at what cash they have coming in, what cash they have going out, and their ability to service a loan, and we won't put anybody into a loan that we feel like they can't service. It would be irresponsible to do that. Most payday and tribal loans don't report to credit bureaus, and we do.
We also provide financial health resources. If you go to our website, the customers can find all sorts of training and information that would help them improve their credit and their financial status. Talk a little bit about that new customer journey. All customers can enter our ecosystem with a digital portal. It begins with an online application, 100%. There is optional agent support if they have an issue with that initial application. That is the other thing that I think differentiates. They can reach a person all the way through the journey. That is something that I think is really important when they need us. Our prospective customers are usually in a moment of financial distress. It is a very stressful time for them. We know that, and we try and tailor our experience to that situation.
One of the coolest things I think we do is we do a turnout process. When a customer applies for us, the first thing we do is go out to some partners that we know that perhaps would underwrite these folks and give them a better rate than what we could and give them a better deal than what we could. It would be a sub-36% APR. About 90% of the time, that is not available to our customers, but there is 10% of the time when they are able to get a better rate and a better transaction for them, and we're happy for them for that situation. About 71% of all of our customers receive same-day decisioning, with 30% receiving same-day funding. We have 24/7 access online, so a person can see what the status of their loan is at any time.
We use a chat feature, and we have one-click payments and live agent support. That customer can reach a live agent all through their journey here. We do that promotion of financial health with free financial education that's available on our website through OppU and Blog, and Zogo are our partners there. Our customers are our biggest advocates of our brand in many cases. With our high NPS scores, our high customer satisfaction scores, referrals are kind of an easy thing for us because 50,000 have been shared by customers in 2024 alone. 61% of our customers come back because they know they've been treated well and fairly with OppFi. When they're in need again for some additional funding, they come back to us on a more than average, more than 50% of them at 61%. Our underwriting is powered by technology. We use machine learning.
We call it Model 6. We launched that last fall, and it better predicts the credit risk and more effectively targets credit-worthy borrowers. You can see we have a lot of scale here. We got 15 billion data points that we can reference because of all the transactions we've done over the last 13 years. We've done 14 million applications, 2 million loans, accepted 30 million repayments. We look at 500 attributes per repayment to understand the customer behavior. 92% of our decisions are automated. Talk a little bit more about Credit Model 6. It's really been helpful to us as we grow and get more sophisticated in our underwriting. It looks at the application level to look at true risk-based pricing, which is something we've been able to launch since this model has been introduced. We're driving higher originations without increasing losses.
It's because we look at these next-generation credit reports. They're called alternative credit bureaus that are out there that tell us different things about our customer that you won't get off of a FICO score or a regular credit bureau report, such as how effectively are they paying their cell phone bills, how effectively are they paying their utility bills, how are they handling those kind of daily activities in a financial life that shows how responsible they can be in servicing our loan. There's also proprietary banking transaction attributes we look at. We can take a look at the customers, take a peek into their bank account, of course, with their permission, and see all the transactions, see what's coming in, what's going out. We also look at how they've performed in the past when they've had loans with us.
All of this has added to a 3.3% increase in incremental originations relative to the previous model without escalating our charge-offs. It's been a great tool for us. The way we capture demand, we have organic and paid channels that allow us to find that customer or lead the customer to us. We use direct mail, and we use marketing partners such as Credit Karma, Experian, and LendingTree through our paid channels. We have organic channels. We use SEO. We've got a very sophisticated team that handles our SEO. As I mentioned, the refer a friend has been very, very successful for us. We use email to retarget prospects who began an application but for some reason abandoned it and try to get them to come back and work with us. I won't read these customer testimonials, but it's something that I am very proud of.
If you look at our Google scores, our Trustpilot, our Better Business Bureau ratings, in our office in Chicago, we have monitors hanging from the ceiling. All day long, they just scroll customer testimonials. They're some of the happiest parts of my day when I'm in that office in that I love to see how we've impacted people's lives. It's always a very, very touching thing to see. As we look forward, we've implemented a growth strategy. We kind of started really back in early 2022 when Todd Schwartz came back as our CEO. I became the CFO. We have looked at operational efficiencies and scale and really made some impact there. We've established new partnerships, new marketing and bank relationships that have been very positive for the company.
Now we're into this, as you see the blue line up into the right, where we're enhancing the credit model to expand our market potential and performance, again allowing us to do more what I call risk-based pricing. We're looking at a lot of creative and strategic acquisitions. It's amazing how many things are out there that we look at and talk to folks about. Lots of activity in that space right now. We're looking at new products and extensions intended to increase market penetration. Different types of diversity within our product line is important. Right now, we have the core product. OppLoans is the brand there. Plus, we made an investment in Bitty, which is a small business financing company. We'll talk about that a little bit more in a couple of minutes here.
As we look at things that we can expand into, there's the very related types of industries: retail installment, lease to own, point-of-sale financing, and some mobile banking. We could look like we could possibly launch a line of credit, a cash advance, or an earned wage access product. Looking at just different creative partnerships with companies kind of similar to what we've done with Bitty. The Bitty transaction was our first transaction we've made as a company. It was our entry into the small business financing market. It aligned with our mission because we saw small businesses have similar issues to our customers in that they couldn't access the credit they needed for their business. We wanted to fill that supply-demand imbalance. It gives us earnings growth, and it's been a path to that multi-line business versus a mono-line business.
We purchased a 35% stake last July, and we have call options to acquire additional equity of 30% in 2027 and the remaining equity in 2030. We're earning about $4 million plus in 2025, pretty sure, before taxes. Amortization will be about a 21% return on that investment. We've already received cash distributions of approximately $3.2 million from that time of investment through April 30th. If you look at through today, we're over $4 million now. It has been a very good investment, and we work very well with their management team. It's been a good learning experience for all of us. We exchanged the best practices and work well together. It's been a great acquisition. Very happy with it. Share with you just a little bit about our financial performance. Going down into the nitty-gritty of it, look at a customer lifetime value.
This is a waterfall that shares that over a customer lifetime, we have realized revenue of nearly $3,000. As you look at the net charge-offs that come out of that, those average about $1,179. We have some acquisition costs. We have to pay those channel providers. There's direct mail costs, things like that. That's about $220 per customer. Generally, if you look at that, you pay that once because when you get the refinances or they come back to you, you don't have that marketing cost. We have some origination costs just from our internal operations team for $109 per customer. We have interest expense because we do borrow money to lend to our customers. That's about $232 at the interest rates we've had recently. That gives us a 42% margin before any of our corporate and overhead expense.
When you add that, you get to a 23% margin or $694 of earnings before taxes out of that customer. Our operational efficiencies have continued to improve. In 2021, our operating expenses as a percentage of revenue was 58.9%. In 2024, it was 43.1%. That's a 27% decrease. This really excites me because I'm really starting to feel the scalability of this company with our current expense levels. With only slight increases, the ability to scale is really great. We have a lot of efficiencies that are happening within the company right now. Our proprietary underwriting model improves our write-off performance. This is credit risk going forward. If you look at the years, 2021 was a very unusual year. We had the economic stimulus coming out of the pandemic. Customers had cash. They were paying their loans. They were paying them off in a lot of instances.
Those losses were very artificially low in 2021. We knew that could not last. In 2022, we saw just the opposite as we saw the inflation increase. Suddenly, in the first part of 2022, that inflation impacts our customers, probably more impactful than for customers who or for people who have higher incomes and a more stable financial future. The additional cost of groceries and utilities and rent hit our customers hard. We saw higher losses in 2022. In developing Credit Model 6, we could now more grasp. We learned a lot out of 2022. We can now understand more of behavior, and we can now look farther ahead and understand. We took those learnings from 2022, and we've seen improvement in both 2023, 2024. If you see that little line there, 2025, we are now seeing consistent, reasonably expected losses for 2025. Recoveries.
After we charge off a loan or write off a loan, which we do at 90 days contractually past due, we then work with our customers to try and recover. Again, knowing that a lot of times they're going through a hardship at this time, we have good programs to do that. We have partners that we use to do this. We have technology that we use. We have really emphasized this and put together a strong team over the last couple of years. You can see how our recoveries have improved. In 2022, we were only at 5.9% of written-off loan balances. Now we're at 15%. A major win for us. As I always like to say, those recoveries, every dollar goes to the bottom line. That makes the CFO really happy. It's been a great success story for the company.
Now taking a look at our overall financial performance as a company, looking at total revenue, Q2 was $142 million. That was a 13% year-over-year growth from Q2 of last year. You can see that we have nice sustained growth over the last four quarters. Our adjusted net income as well grew. You saw how we've been seeing the operational efficiencies come. You got the top line growing, you got the expenses going down, and it makes for a nice bump for sure to adjusted net income. FY 2023, we had $41 million in adjusted gross income, and we had $83 million in 2024. A 99% increase. You saw a similar increase then in our adjusted EPS from $0.49 a share to $0.95 a share. We generate a lot of cash flow as a company, and we have a lot of opportunities to allocate that capital.
Over the last few months, in 2025, we repaid $30 million in a high-rate term loan debt. We upsized our current revolving credit facility with affiliates of Blue Owl Capital by $50 million, giving us more room for growth. We declared a special dividend of $0.25 a share, which was $28.1 million overall. You can do that when you look at our June funding capacity on the right here. We've got drawn debt of $305 million, but we've got undrawn debt of $219 million. We've got cash on the balance sheet of $78.3 million, for a total funding capacity of $603.3 million. With our good results from Q2 2025, we did revise our earnings guidance upward. We are now looking at total revenue of $578 million to $605 million for 2025. That's a raise from $563 million to $594 million, that range.
Adjusted net income, again, a range of $125 million-$ 130 million, and that's a raise from $106 million- $113 million. Our adjusted EPS is $1.39- $1.44, and the range we previously had was $1.18 to $1.26. We're looking forward to a really good 2025. We're now happy to take any questions from the audience. We do have an appendix at the end of the presentation here. It gives you just a little biography of our management team, our very experienced management team. The reconciliation of the GAAP to adjusted net income is the final slide or the final part of the appendix. There being no questions, again, thank you all for your time. We really appreciate it and are always happy to tell the OppFi story. Please feel free to reach out to Mike or myself with any questions that might follow up. Thank you.