Open Lending Reports Q3 2024 Financial Results

Open Lending Corporation ( (LPRO) ) has released its Q3 earnings. Here is a breakdown of the information Open Lending Corporation presented to its investors.

Open Lending Corporation, a leader in lending enablement and risk analytics solutions for financial institutions, primarily operates within the automotive lending sector in the United States, offering loan analytics, risk-based pricing, risk modeling, and default insurance services.

Open Lending Corporation has reported its financial results for the third quarter of 2024. The company announced that they performed near or above the high end of their guidance for certified loans, revenue, and adjusted EBITDA, despite a challenging environment. Market conditions in the automotive industry are showing signs of improvement, which the company is poised to capitalize on.

During the third quarter of 2024, Open Lending facilitated 27,435 certified loans, a slight decrease from 29,959 in the same quarter of 2023. Total revenue also saw a decline to $23.5 million from $26 million in the previous year. The company’s gross profit was reported at $17.3 million, down from $20.6 million in 2023, while net income decreased to $1.4 million from $3 million. Adjusted EBITDA was $7.8 million compared to $10.3 million in the third quarter of the prior year.

Looking ahead to the fourth quarter of 2024, the company has issued guidance for total certified loans to be in the range of 20,000 to 24,000, with total revenue projected between $22 million and $26 million. Adjusted EBITDA is expected to range from $7 million to $10 million.

Open Lending remains optimistic about the future, focusing on strategic initiatives that aim to position the company advantageously as the automotive market continues to recover, while maintaining a vigilant approach to navigating external economic challenges.