Open Lending (NASDAQ:LPRO) Issues Quarterly Earnings Results

Key Points

• Open Lending reported breakeven EPS for the quarter, missing expectations by $0.01, while revenue came in at $20.49 million, slightly above analysts’ estimates.
• The company said it delivered 21,064 certified loans in Q1, beating the high end of guidance and reaffirming its full-year outlook of 100,000–110,000 certified loans.
• Despite better loan volume and improved per-loan economics, revenue and profitability weakened year over year, with Adjusted EBITDA falling to $2 million and the company posting a small net loss.

Open Lending (NASDAQ:LPRO - Get Free Report) posted its quarterly earnings data on Thursday. The company reported $0.00 EPS for the quarter, missing the consensus estimate of $0.01 by ($0.01), reports. The company had revenue of $20.49 million for the quarter, compared to analysts' expectations of $20.41 million. Open Lending had a negative net margin of 5.95% and a positive return on equity of 7.52%.

Here are the key takeaways from Open Lending's conference call:

• The company delivered 21,064 certified loans in Q1, beating the high end of guidance and reaffirmed full-year cert guidance of 100,000–110,000, with an expected volume acceleration from OEM‑3 ramp in H2.
• Per‑loan economics improved materially — profit‑share revenue per certified loan rose to $363 (up 30% YoY) and management has booked the 2026 vintage at a ~70% loss ratio while expecting eventual performance closer to the mid‑60s.
• Top‑line and near‑term profitability were weaker — total revenue fell to $20.5M (from $24.4M), Adjusted EBITDA declined to $2M (from $3.2M), and the company reported a small net loss of $0.5M for the quarter.
• Strategic investments (Project Red Rocks, Apex One Auto, and expanded decisioning/AI capabilities) and positive carrier feedback position the business for future, higher‑quality growth, but these initiatives are early and their scale/timing remains uncertain.

Open Lending Price Performance

NASDAQ LPRO traded up $0.28 during mid-day trading on Friday, hitting $1.90. The stock had a trading volume of 2,431,214 shares, compared to its average volume of 609,233. Open Lending has a 52-week low of $1.18 and a 52-week high of $2.70. The company has a market cap of $223.59 million, a price-to-earnings ratio of -47.50 and a beta of 2.20. The company has a 50 day simple moving average of $1.46 and a 200 day simple moving average of $1.63. The company has a quick ratio of 4.52, a current ratio of 4.52 and a debt-to-equity ratio of 1.03.

Hedge Funds Weigh In On Open Lending

Hedge funds have recently bought and sold shares of the company. Public Employees Retirement System of Ohio purchased a new position in Open Lending in the 4th quarter valued at approximately $78,000. Squarepoint Ops LLC grew its holdings in Open Lending by 57.8% during the 4th quarter. Squarepoint Ops LLC now owns 86,546 shares of the company's stock valued at $134,000 after buying an additional 31,695 shares during the last quarter. Wells Fargo & Company MN grew its holdings in Open Lending by 43.6% during the 4th quarter. Wells Fargo & Company MN now owns 114,554 shares of the company's stock valued at $178,000 after buying an additional 34,796 shares during the last quarter. State of Wyoming grew its holdings in Open Lending by 25.6% during the 4th quarter. State of Wyoming now owns 101,497 shares of the company's stock valued at $157,000 after buying an additional 20,671 shares during the last quarter. Finally, BNP Paribas Financial Markets grew its holdings in Open Lending by 73.2% during the 2nd quarter. BNP Paribas Financial Markets now owns 39,707 shares of the company's stock valued at $77,000 after buying an additional 16,785 shares during the last quarter. 78.06% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several analysts have commented on the company. Canaccord Genuity Group reaffirmed a "hold" rating and set a $2.00 price objective on shares of Open Lending in a research note on Tuesday, March 17th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Open Lending in a research note on Thursday, January 22nd. Finally, DA Davidson reduced their price objective on Open Lending from $4.00 to $3.00 and set a "buy" rating for the company in a research note on Monday, March 16th. Two analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $2.58.

About Open Lending

Open Lending Corporation is a financial technology company specializing in risk analytics and automated loan decisioning for the automotive finance industry. Through its proprietary platform, Open Lending enables banks, credit unions and finance companies to enhance underwriting accuracy, manage risk more effectively and streamline the loan origination process. The company's solutions leverage machine learning and big-data analytics to deliver credit-based pricing models that help lenders optimize portfolio performance and reduce losses.

The core offerings of Open Lending include an automated underwriting engine, risk-based pricing tools and performance analytics dashboards.

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