Open Lending (NASDAQ:LPRO) Announces Earnings Results

Open Lending (NASDAQ:LPRO) announced its earnings results on Thursday. The company reported $0.00 EPS for the quarter, missing analysts’ consensus estimates of $0.01 by ($0.01), reports. The company had revenue of $20.49 million for the quarter, compared to analyst estimates 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 Trading Up 17.3%

Shares of LPRO stock traded up $0.28 during mid-day trading on Friday, hitting $1.90. 2,431,214 shares of the company’s stock were exchanged, compared to its average volume of 609,233. Open Lending has a fifty-two week low of $1.18 and a fifty-two week high of $2.70. The stock has a 50-day simple moving average of $1.46 and a two-hundred 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. The stock has a market cap of $223.59 million, a price-to-earnings ratio of -47.50 and a beta of 2.20.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on LPRO shares. Canaccord Genuity Group reiterated a “hold” rating and set a $2.00 target price on shares of Open Lending in a report on Tuesday, March 17th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Open Lending in a report on Thursday, January 22nd. Finally, DA Davidson lowered their target price on Open Lending from $4.00 to $3.00 and set a “buy” rating on the stock in a report on Monday, March 16th. Two investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Open Lending has a consensus rating of “Hold” and an average target price of $2.58.

Institutional Investors Weigh In On Open Lending

Hedge funds have recently made changes to their positions in the business. Public Employees Retirement System of Ohio acquired a new stake in shares of Open Lending during the fourth quarter worth $78,000. Squarepoint Ops LLC boosted its holdings in shares of Open Lending by 57.8% during the fourth quarter. Squarepoint Ops LLC now owns 86,546 shares of the company’s stock worth $134,000 after purchasing an additional 31,695 shares during the last quarter. Wells Fargo & Company MN boosted its holdings in shares of Open Lending by 43.6% during the fourth quarter. Wells Fargo & Company MN now owns 114,554 shares of the company’s stock worth $178,000 after purchasing an additional 34,796 shares during the last quarter. State of Wyoming boosted its holdings in shares of Open Lending by 25.6% during the fourth quarter. State of Wyoming now owns 101,497 shares of the company’s stock worth $157,000 after purchasing an additional 20,671 shares during the last quarter. Finally, BNP Paribas Financial Markets boosted its holdings in shares of Open Lending by 73.2% during the second quarter. BNP Paribas Financial Markets now owns 39,707 shares of the company’s stock worth $77,000 after purchasing an additional 16,785 shares during the last quarter. Institutional investors and hedge funds own 78.06% of the company’s stock.

Open Lending Company Profile

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.