Open Lending (LPRO) AI Stock Analysis

• Market Cap: $204.47M
• Dividend Yield: N/A
• Average Volume (3M): 612.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.83
• Revenue Growth: -82.33%
• EPS Growth: -3365.80%
• Country: US
• Employees: 205
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): -0.06
• Shares Outstanding: 118,189,445
• 10 Day Avg. Volume: 346,735
• 30 Day Avg. Volume: 612,203
• PEG Ratio: <0.01
• Price to Book (P/B): 9.11
• Price to Sales (P/S): 29.62
• P/FCF Ratio: 40.81
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 9.00
• Enterprise Value/Gross Profit: -24.50
• Enterprise Value/Ebitda: -2.05
• 1Y Price Target: $3.17
• Price Target Upside: 80.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $1.50 ▼(-14.77% Downside)

The overall stock score is primarily impacted by significant financial challenges, including persistent losses and liquidity concerns. Technical analysis and valuation also reflect a bearish outlook. While the earnings call provides some optimism with strategic initiatives, the immediate financial and operational hurdles weigh heavily on the score.

Positive Factors

New Product Launch

The launch of ApexOne Auto diversifies revenue streams and adds a recurring revenue model, supporting long-term growth and stability.

Leadership Enhancement

Chaudhary's appointment strengthens the board with his experience in scaling technology, aligning with Open Lending's growth vision.

Cost Savings Initiative

The cost savings from the amended agreement will enhance profitability and financial flexibility over the long term.

Negative Factors

Decreased Loan Certifications

The decrease in loan certifications reflects tightening lending standards, which may limit revenue growth and market penetration.

Rising Operating Expenses

Significantly higher operating expenses can erode profitability, challenging the company's ability to achieve sustainable margins.

Persistent Net Losses

Ongoing net losses indicate financial instability, which could hinder investment in growth initiatives and long-term viability.

Open Lending Business Overview & Revenue Model

Company Description

Open Lending (LPRO) is a financial technology company that specializes in providing data-driven lending solutions primarily for automotive dealerships and lenders. The company operates in the fintech sector, focusing on enhancing the lending process through its proprietary technology and analytics. Open Lending's core products include its Lenders Risk Management platform, which helps lenders assess risk and make informed lending decisions, and the Open Lending platform, which facilitates a streamlined loan origination process for dealerships and consumers.

How the Company Makes Money

Open Lending generates revenue primarily through a fee-based model. The company earns fees for each loan facilitated through its platform, which can include transaction fees charged to lenders and service fees from automotive dealerships that utilize its lending solutions. Additionally, Open Lending may earn revenue from partnerships with financial institutions and automotive manufacturers that integrate its technology into their financing processes. The company also benefits from growing demand for automotive loans, as its services are designed to improve access to credit for consumers, thereby increasing the volume of loans processed through its system.

Open Lending Financial Statement Overview

Summary

Open Lending faces significant financial challenges across all verticals. The income statement shows persistent losses and declining profitability. The balance sheet reflects a mixed leverage position with poor shareholder returns. Cash flow analysis indicates severe declines in cash generation, raising concerns about liquidity. Overall, the company needs to address operational inefficiencies and improve cash management to stabilize its financial position.

Income Statement

Open Lending's income statement reveals significant challenges. The TTM data shows a negative gross profit margin of -36.75% and a net profit margin of -887.15%, indicating substantial losses. Revenue growth is positive at 4.26%, but the EBIT and EBITDA margins are deeply negative, reflecting operational inefficiencies. Historical data shows a declining trend in revenue and profitability, with previous periods also experiencing negative growth rates and margins.

Balance Sheet

The balance sheet indicates a mixed financial position. The TTM debt-to-equity ratio is low at 0.14, suggesting manageable leverage compared to the previous year's high of 1.84. However, the return on equity is significantly negative at -194.20%, highlighting poor returns for shareholders. The equity ratio stands at 25.32%, indicating a moderate level of equity financing relative to total assets.

Cash Flow

Cash flow analysis shows concerning trends. The TTM free cash flow growth rate is -567.47%, indicating a sharp decline in cash generation. The operating cash flow to net income ratio is negative, reflecting cash flow issues. However, the free cash flow to net income ratio is slightly positive at 1.08, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.95M	24.02M	117.46M	179.59M	215.66M	108.89M
Gross Profit	-6.23M	169.00K	95.18M	159.63M	197.03M	99.11M
EBITDA	-74.31M	-51.61M	41.30M	100.29M	197.55M	-77.62M
Net Income	-150.35M	-135.01M	22.07M	66.62M	146.08M	-97.56M
Balance Sheet
Total Assets	287.65M	296.37M	374.04M	379.63M	318.82M	294.01M
Cash, Cash Equivalents and Short-Term Investments	233.73M	243.16M	240.21M	204.45M	116.45M	101.51M
Total Debt	136.97M	143.77M	148.13M	152.08M	151.40M	163.25M
Total Liabilities	214.83M	218.28M	168.46M	166.81M	159.84M	267.39M
Stockholders Equity	72.83M	78.09M	205.58M	212.82M	158.98M	26.62M
Cash Flow
Free Cash Flow	-13.31M	17.43M	80.48M	106.81M	93.17M	23.44M
Operating Cash Flow	-12.02M	17.60M	82.66M	107.43M	95.16M	24.64M
Investing Cash Flow	-2.07M	-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: 1.76
• 50DMA: Negative
• 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 Negative. The current price of 1.76 is above the 20-day moving average (MA) of 1.73, below the 50-day MA of 1.80, and below the 200-day MA of 2.14, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.63 is Neutral, neither overbought nor oversold. The STOCH value of 25.86 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	79 Outperform	$245.83M	6.18	10.79%	4.47%	15.52%	2.05%
CPSS	71 Outperform	$202.61M	11.48	6.58%	―	16.94%	-10.46%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
RM	64 Neutral	$365.20M	9.12	11.43%	2.99%	9.63%	77.14%
OPRT	64 Neutral	$251.09M	8.64	8.59%	―	-5.29%	―
ANTA	53 Neutral	$266.14M	―	―	―	―	―
LPRO	43 Neutral	$204.47M	―	-102.53%	―	-82.33%	-3365.80%

Open Lending Corporate Events

Open Lending Finalizes Separation Agreement with Former CRO

Open Lending Corporation terminated the employment of its former Chief Revenue Officer, Matthew R. Roe, effective July 29, 2025. The company subsequently entered into a separation and release agreement with Mr. Roe on December 2, 2025, which includes severance and additional payments to cover COBRA premiums, alongside a general release of claims and restrictive covenants.

Open Lending Appoints Abhijit Chaudhary as New Director

On November 19, 2025, Gene Yoon resigned from his position as a director of Open Lending Corporation, with no disagreements cited. Abhijit Chaudhary was appointed as his replacement effective November 21, 2025, bringing over two decades of expertise in product innovation and growth in financial services. Chaudhary’s appointment is expected to enhance the company’s board with his experience in scaling disruptive technology and financial services businesses, aligning with Open Lending’s vision to expand access to credit and drive long-term growth.

Open Lending Appoints Ben Massey as New General Counsel

On October 1, 2025, Matthew Stark resigned as Chief Legal and Compliance Officer and Corporate Secretary of Open Lending Corporation, effective November 7, 2025. Subsequently, on October 6, 2025, Ben Massey was appointed as the new General Counsel and Corporate Secretary, effective the same date as Stark’s departure. Massey, who has been with the company since 2022, brings experience from his previous roles within Open Lending and his tenure at Simpson Thacher & Bartlett LLP. This transition is part of the company’s strategic leadership changes, with Massey receiving a compensation package that includes a base salary, performance bonus, and long-term incentives.

Open Lending Appoints Todd C. Hart to Board

On September 25, 2025, Open Lending Corporation announced the resignation of Adam H. Clammer from its Board of Directors and the appointment of Todd C. Hart as his replacement. Mr. Hart, who brings over 35 years of experience in the insurance and financial services industries, will serve on the company’s Compensation and Nominating & Governance Committees. His extensive background in risk management and strategic transactions is expected to support Open Lending’s growth strategy and enhance shareholder value.