Open Lending (LPRO) AI Stock Analysis

• Market Cap: $245.56M
• Dividend Yield: N/A
• Average Volume (3M): 3.74M
• Price to Earnings (P/E): 72.9
• Beta (1Y): 2.56
• Revenue Growth: -83.91%
• EPS Growth: -1062.77%
• Country: US
• Employees: 205
• Sector: Financial
• Sector Strength: 82
• Industry: Financial - Credit Services
• EPS (TTM): 0.01
• Shares Outstanding: 119,786,420
• 10 Day Avg. Volume: 2,099,619
• 30 Day Avg. Volume: 3,738,799
• PEG Ratio: <0.01
• Price to Book (P/B): 2.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.21
• Enterprise Value/Market Cap: -0.10
• Enterprise Value/Revenue: -0.07
• Enterprise Value/Gross Profit: -141.83
• Enterprise Value/Ebitda: -2.09
• 1Y Price Target: $2.68
• Price Target Upside: 37.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 43 Neutral
• Price Target: $2.00 ▲( 2.56% Upside)

Open Lending faces significant financial challenges with declining revenue, profitability, and cash flow, coupled with increased leverage. Technical indicators suggest bearish momentum, and valuation metrics are concerning due to negative earnings. Despite these challenges, strategic leadership changes and operational improvements highlighted in the earnings call provide a glimmer of hope for future recovery.

Positive Factors

Financial Performance

LPRO's 1Q results beat Street expectations on the top and bottom line, which was refreshing after the sizable profit share charge that impacted results last quarter.

Share Buyback

The board approved a $25 million share repurchase authorization, viewed as a smart use of capital.

Negative Factors

Earnings Outlook

It's hard to put any valuation on Open Lending given the expectation of negative earnings through 2026.

Profit Share Challenges

Open Lending will not collect profit share on future certifications with certain insurance carriers until those insurers have been made whole from the 2021 and 2022 vintages.

Open Lending Business Overview & Revenue Model

Company Description

Open Lending Corporation provides lending enablement and risk analytics solutions to credit unions, regional banks, and non-bank auto finance companies and captive finance companies of original equipment manufacturers in the United States. It offers Lenders Protection Program (LPP), which is a Software as a Service platform that facilitates loan decision making and automated underwriting by third-party lenders and the issuance of credit default insurance through third-party insurance providers. The company's LPP products include loan analytics, risk-based loan pricing, risk modeling, and automated decision technology for automotive lenders. Open Lending Corporation was founded in 2000 and is based in Austin, Texas.

How the Company Makes Money

Open Lending makes money through its proprietary LendProtect platform by partnering with financial institutions such as credit unions, banks, and automotive lenders. The company earns revenue by charging fees for the use of its platform, which helps lenders assess the risk of potential borrowers using sophisticated algorithms and data analytics. Additionally, Open Lending may earn revenue from performance-based fees, which are tied to the success and profitability of the loans facilitated through its platform. Partnerships with insurers and other financial service providers also contribute to its revenue model, as these collaborations help enhance the overall value proposition of its lending solutions.

Open Lending Financial Statement Overview

Summary

Open Lending is experiencing severe revenue declines, operating losses, and weakened equity, with a net loss of $135.01 million. Despite a strong cash position, overall financial health is concerning, necessitating strategic changes.

Income Statement

Open Lending's income statement indicates significant challenges, with severe declines in total revenue from $117.46 million in 2023 to $24.02 million in 2024, resulting in a drastic revenue growth decline of approximately -79.55%. The company also posted a net loss of $135.01 million, resulting in a negative net profit margin. The EBIT and EBITDA margins are both negative, reflecting operational inefficiencies. This trend of declining profitability and revenues suggests a need for strategic adjustments.

Balance Sheet

The balance sheet reveals a concerning financial structure. The debt-to-equity ratio improved from 0.72 in 2023 to 0.14 in 2024, but this is due to the significant decrease in equity from $205.58 million to $78.09 million. The equity ratio dropped from 54.96% in 2023 to 26.34% in 2024, indicating reduced shareholder support and increased financial risk. However, the company maintains a strong cash position, which may provide some buffer against liabilities.

Cash Flow

The cash flow statement exhibits some resilience, with a reduced but positive free cash flow of $17.43 million in 2024. The operating cash flow to net income ratio is favorable, indicating positive cash generation despite net losses. However, the free cash flow growth rate is negative as compared to previous periods, indicating potential challenges in sustaining cash flows.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
24.02M	117.46M	179.59M	215.66M	108.89M
	Gross Profit
169.00K	95.18M	159.63M	197.03M	99.11M
	EBIT
-65.38M	29.07M	97.61M	205.81M	56.72M
	EBITDA
-51.61M	41.30M	100.87M	198.69M	-77.62M
	Net Income Common Stockholders
-135.01M	22.07M	66.62M	146.08M	-97.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
243.16M	240.21M	204.45M	116.45M	101.51M
	Total Assets
296.37M	374.04M	379.63M	318.82M	294.01M
	Total Debt
10.77M	148.13M	151.51M	150.90M	163.25M
	Net Debt
-232.39M	-92.08M	-52.94M	34.45M	61.74M
	Total Liabilities
218.28M	168.46M	166.81M	159.84M	267.39M
	Stockholders Equity
78.09M	205.58M	212.82M	158.98M	26.62M
Cash Flow		Free Cash Flow
17.43M	80.48M	106.81M	93.17M	23.44M
	Operating Cash Flow
17.60M	82.66M	107.43M	95.16M	24.64M
	Investing Cash Flow
-3.90M	-2.18M	-624.00K	-1.99M	-1.20M
	Financing Cash Flow
-6.45M	-42.33M	-17.80M	-77.81M	70.81M

Open Lending Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.95
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LPRO, the sentiment is Negative. The current price of 1.95 is above the 20-day moving average (MA) of 1.68, above the 50-day MA of 1.89, and below the 200-day MA of 4.76, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 56.14 is Neutral, neither overbought nor oversold. The STOCH value of 61.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LPRO.

Open Lending Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MFIN	80 Outperform	$214.94M	5.78	10.39%	4.54%	13.93%	-23.70%
YRD	75 Outperform	$541.98M	2.50	17.96%	6.15%	17.03%	-23.72%
CPSS	64 Neutral	$189.51M	11.07	6.69%	―	9.56%	-58.56%
Sector *	64 Neutral	$12.78B	9.87	7.67%	17015.06%	12.34%	-5.99%
OPRT	59 Neutral	$259.51M	―	-11.37%	―	-5.79%	59.24%
FOA	58 Neutral	$250.43M	4.09	21.28%	―	4712.71%	―
LPRO	43 Neutral	$245.56M	72.92	-95.74%	―	-83.91%	-1062.77%

Open Lending Corporate Events

Open Lending Reassigns CTO Sarah Lackey’s Duties

On April 22, 2025, Open Lending Corporation announced a reassignment of duties for Sarah Lackey, previously the Chief Technology Officer and a named executive officer. Ms. Lackey will transition to the role of Vice President of Strategic Initiatives, reporting to the Chief Operating Officer, and will no longer hold the title of a named executive officer.

Open Lending Announces New CEO and COO Appointments

On March 31, 2025, Open Lending Corporation announced significant leadership changes with the appointment of Jessica Buss as Chief Executive Officer and Michelle Glasl as Chief Operating Officer. Jessica Buss brings extensive experience from the insurance industry, previously serving as CEO of Argo Group International Holdings. Her leadership is expected to enhance collaboration with insurance carrier partners and automotive lending partners, focusing on improving loan performance and underwriting processes. Chuck Jehl will continue as interim Chief Financial Officer and a Board member during the transition period, while a search for a permanent CFO is underway. These changes aim to drive the company’s strategic growth and strengthen its position in the industry.