Open Lending (LPRO) AI Stock Analysis

• Market Cap: $241.07M
• Dividend Yield: N/A
• Average Volume (3M): 754.43K
• Price to Earnings (P/E): 72.9
• Beta (1Y): 2.57
• Revenue Growth: -83.48%
• EPS Growth: -2400.00%
• Country: US
• Employees: 205
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Credit Services
• EPS (TTM): 0.01
• Shares Outstanding: 118,172,480
• 10 Day Avg. Volume: 574,299
• 30 Day Avg. Volume: 754,432
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.53
• Enterprise Value/Revenue: 7.91
• Enterprise Value/Gross Profit: -16.62
• Enterprise Value/Ebitda: -2.00
• 1Y Price Target: $2.88
• Price Target Upside: 41.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 44 Neutral
• Price Target: $2.00 ▼(-1.96% Downside)

Open Lending's overall stock score is primarily impacted by its poor financial performance, with significant profitability and cash flow issues. Technical analysis and valuation also present concerns, though the earnings call and corporate events provide some positive strategic developments. The company's financial health remains the most significant risk factor.

Positive Factors

Leadership Transition

Leadership transition brings a greater focus on insurance underwriting, with new CEO Jessica Buss bringing decades of experience in the insurance industry.

Profit Share and Cash Flow

Open Lending demonstrated positive profit share, plus cash generation rather than cash burn.

Share Buyback

The company is returning capital to shareholders through buybacks.

Negative Factors

Profit Share Adjustments

The company's 4Q24 results reflected a significant $81.3M reversal to previously booked profit share revenue that was materially greater than any of the previous adjustments taken.

Profitability Concerns

The negative tax valuation allowance implies a lack of near-term future profitability for Open Lending.

Underwriting Capabilities

Open Lending lacks in-house underwriting capabilities, impacting their ability to adequately reserve for loans.

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 generates revenue primarily through its SaaS (Software as a Service) business model, charging lenders a fee for access to its technology platform and services. Key revenue streams include transaction fees based on the volume of loans facilitated through its platform, subscription fees for software access, and fees for additional services such as risk assessment and analytics. The company also benefits from strategic partnerships with various financial institutions and auto dealerships, which help to expand its client base and enhance revenue opportunities. These partnerships enable Open Lending to leverage its technology to streamline the lending process, thereby increasing overall market penetration and driving revenue growth.

Open Lending Financial Statement Overview

Summary

Open Lending's financial performance is concerning, with declining revenue, profitability, and cash flow. The company faces significant financial distress, highlighted by increased leverage and liquidity challenges. Despite a stable equity position, the overall outlook is negative.

Income Statement

The income statement shows a concerning trend with declining revenue and profitability. The recent TTM period reports a negative gross profit margin and a substantial net loss, indicating severe cost management issues and an inability to generate sufficient revenue. The company transitioned from profitability in 2021 to significant losses in 2024 and 2025, highlighting a deteriorating financial condition. Revenue has sharply decreased over the past few years, reflecting negative growth.

Balance Sheet

The balance sheet reveals a moderate financial position with some strengths and weaknesses. The debt-to-equity ratio has increased significantly, indicating higher leverage and potential financial risk. However, the company maintains a positive equity ratio due to a relatively stable stockholders' equity. Despite the increase in total liabilities, cash and cash equivalents remain robust, providing some liquidity buffer.

Cash Flow

The cash flow statement shows declining free cash flow and operating cash flow over recent periods, suggesting cash management challenges. The operating cash flow to net income ratio indicates inefficiencies, as operating cash flow has decreased substantially. The negative trajectory in free cash flow growth further emphasizes potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.25M	24.02M	117.46M	179.59M	215.66M	108.89M
Gross Profit	-7.73M	169.00K	95.18M	159.63M	197.03M	99.11M
EBITDA	-64.20M	-51.61M	41.30M	100.87M	198.69M	-77.62M
Net Income	-141.35M	-135.01M	22.07M	66.62M	146.08M	-97.56M
Balance Sheet
Total Assets	296.66M	296.37M	374.04M	379.63M	318.82M	294.01M
Cash, Cash Equivalents and Short-Term Investments	230.66M	243.16M	240.21M	204.45M	116.45M	101.51M
Total Debt	10.34M	143.77M	148.13M	151.51M	150.90M	163.25M
Total Liabilities	217.71M	218.28M	168.46M	166.81M	159.84M	267.39M
Stockholders Equity	78.95M	78.09M	205.58M	212.82M	158.98M	26.62M
Cash Flow
Free Cash Flow	2.79M	17.43M	80.48M	106.81M	93.17M	23.44M
Operating Cash Flow	5.01M	17.60M	82.66M	107.43M	95.16M	24.64M
Investing Cash Flow	-3.00M	-3.90M	-2.18M	-624.00K	-1.99M	-1.20M
Financing Cash Flow	-13.13M	-6.45M	-42.33M	-17.80M	-77.81M	70.81M

Open Lending Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.04
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 2.04 is below the 20-day moving average (MA) of 2.12, below the 50-day MA of 2.24, and below the 200-day MA of 3.57, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 41.30 is Neutral, neither overbought nor oversold. The STOCH value of 43.03 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	81 Outperform	$244.32M	5.98	11.25%	4.26%	15.88%	-1.83%
YRD	76 Outperform	$519.30M	2.93	13.64%	6.67%	12.69%	-35.36%
Sector *	68 Neutral	$17.89B	12.03	10.28%	3.73%	9.80%	1.66%
FOA	64 Neutral	$684.49M	30.12	33.40%	―	276.86%	―
CPSS	62 Neutral	$181.13M	10.18	6.66%	―	16.13%	-28.76%
OPRT	56 Neutral	$289.58M	―	-1.26%	―	-5.87%	94.07%
LPRO	44 Neutral	$241.07M	72.92	-95.59%	―	-83.48%	-2400.00%

Open Lending Corporate Events

Open Lending Terminates Chief Revenue Officer

On July 29, 2025, Open Lending terminated the employment of its Chief Revenue Officer, Matthew R. Roe. This decision may impact the company’s operations and leadership dynamics.

Open Lending Appoints New Chief Financial Officer

On July 24, 2025, Open Lending Corporation announced the appointment of Massimo Monaco as Chief Financial Officer, effective August 18, 2025. Mr. Monaco, with over 20 years of experience in the residential mortgage lending and financial services industries, is expected to drive the next phase of growth for Open Lending. His extensive background and proven financial leadership are anticipated to strengthen the company’s operations and further its mission to serve underserved financial institutions.

Open Lending Appoints CEO as Interim Financial Officer

On June 29, 2025, Open Lending Corporation announced changes in its executive team. Charles Jehl’s role as interim Chief Financial Officer ended, and Jessica Buss, the company’s CEO, was appointed as the interim principal financial officer and principal accounting officer. Buss will not receive additional compensation for these roles and has no familial or material connections influencing her appointment. The board is actively searching for a permanent CFO, while Buss continues her duties as CEO and executive chairman.