Open Lending (LPRO) AI Stock Analysis

• Market Cap: $246.76M
• Dividend Yield: N/A
• Average Volume (3M): 1.50M
• Price to Earnings (P/E): 72.9
• Beta (1Y): 2.54
• Revenue Growth: -83.91%
• EPS Growth: -1062.77%
• Country: US
• Employees: 205
• Sector: Financial
• Sector Strength: 74
• Industry: Financial - Credit Services
• EPS (TTM): 0.01
• Shares Outstanding: 119,786,420
• 10 Day Avg. Volume: 1,045,590
• 30 Day Avg. Volume: 1,497,717
• PEG Ratio: -0.24
• Price to Book (P/B): 4.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.97
• Enterprise Value/Market Cap: 3.24
• Enterprise Value/Revenue: 3.38
• Enterprise Value/Gross Profit: -122.49
• Enterprise Value/Ebitda: -9.35
• 1Y Price Target: $2.65
• Price Target Upside: 28.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 48 Neutral
• Price Target: $2.00 ▼(-2.91%Downside)

Open Lending's overall score is primarily impacted by weak financial performance and valuation concerns. Short-term technical momentum and strategic initiatives from the earnings call provide some optimism, but underlying financial issues remain a significant risk.

Positive Factors

Earnings

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.

Financial Strategy

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

Leadership

Investors will be encouraged that Ms. Jessica Buss has significant P&C insurance experience as CEO of Argo Group and brings valuable insurance and actuarial experience to Open Lending's operations.

Negative Factors

Market Position

Open Lending hasn't caught up to real-time trends in auto lending, which has been showing credit deterioration broadly since 2023.

Profitability

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

Underwriting Challenges

Open Lending is considered to be two years behind the auto lending industry in terms of tightening underwriting standards.

Open Lending Business Overview & Revenue Model

Company Description

Open Lending (LPRO) is a financial technology company that specializes in providing automated lending services to financial institutions. The company operates primarily in the automotive lending sector, offering its LendProtect solution which combines risk-based pricing models, analytics, and proprietary data to facilitate the origination of automotive loans. By empowering lenders with advanced technology solutions, Open Lending aims to improve loan approval rates and optimize risk management practices.

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's financial performance is weak, with declining revenue and profitability, negative gross profit margins, and increasing leverage. Despite a robust cash position, overall financial health is concerning.

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
17.67M	24.02M	117.46M	179.59M	215.66M	108.89M
	Gross Profit
-6.52M	169.00K	95.18M	159.63M	197.03M	99.11M
	EBIT
-71.94M	-65.38M	29.07M	97.61M	205.81M	56.72M
	EBITDA
-64.60M	-51.61M	41.30M	100.87M	198.69M	-77.62M
	Net Income Common Stockholders
-139.48M	-135.01M	22.07M	66.62M	146.08M	-97.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
236.23M	243.16M	240.21M	204.45M	116.45M	101.51M
	Total Assets
304.22M	296.37M	374.04M	379.63M	318.82M	294.01M
	Total Debt
197.55M	10.77M	148.13M	151.51M	150.90M	163.25M
	Net Debt
-38.68M	-232.39M	-92.08M	-52.94M	34.45M	61.74M
	Total Liabilities
224.39M	218.28M	168.46M	166.81M	159.84M	267.39M
	Stockholders Equity
79.83M	78.09M	205.58M	212.82M	158.98M	26.62M
Cash Flow		Free Cash Flow
-1.11M	17.43M	80.48M	106.81M	93.17M	23.44M
	Operating Cash Flow
2.75M	17.60M	82.66M	107.43M	95.16M	24.64M
	Investing Cash Flow
-3.86M	-3.90M	-2.18M	-624.00K	-1.99M	-1.20M
	Financing Cash Flow
-7.12M	-6.45M	-42.33M	-17.80M	-77.81M	70.81M

Open Lending Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.06
• 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 Neutral. The current price of 2.06 is above the 20-day moving average (MA) of 1.96, above the 50-day MA of 1.54, and below the 200-day MA of 4.50, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 56.28 is Neutral, neither overbought nor oversold. The STOCH value of 70.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$212.61M	5.72	10.39%	5.25%	13.93%	-23.70%
CPSS	75 Outperform	$214.52M	12.50	6.69%	―	13.23%	-47.36%
YRD	73 Outperform	$547.16M	2.97	14.69%	3.47%	12.45%	-36.64%
Sector *	64 Neutral	$12.87B	9.76	7.85%	78.04%	12.07%	-7.94%
OPRT	61 Neutral	$321.13M	―	-11.37%	―	-5.79%	59.24%
FOA	58 Neutral	$244.52M	4.09	21.28%	―	4215.36%	―
LPRO	48 Neutral	$246.76M	72.92	-95.74%	―	-83.91%	-1062.77%

Open Lending Corporate Events

Open Lending Holds Annual Stockholders Meeting

On May 21, 2025, Open Lending Corporation held its Annual Meeting of Stockholders, where three proposals were voted on. The stockholders elected two Class II directors, ratified Ernst & Young LLP as the independent accounting firm for 2025, and approved the compensation of named executive officers, indicating continued support for the company’s leadership and operational strategies.

The most recent analyst rating on (LPRO) stock is a Buy with a $2.50 price target. To see the full list of analyst forecasts on Open Lending stock, see the LPRO Stock Forecast page.

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.