Open Lending (LPRO) AI Stock Analysis

• Market Cap: $195.01M
• Dividend Yield: N/A
• Average Volume (3M): 777.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.79
• 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: 799,549
• 30 Day Avg. Volume: 777,041
• 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: 0.78
• Enterprise Value/Revenue: 9.00
• Enterprise Value/Gross Profit: -24.50
• Enterprise Value/Ebitda: -2.05
• 1Y Price Target: $3.17
• Price Target Upside: 92.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: $1.50 ▼(-9.09% Downside)

Open Lending's overall stock score is primarily impacted by its poor financial performance, with significant losses and liquidity concerns. Technical analysis indicates bearish momentum, and valuation metrics are unattractive due to negative earnings. The earnings call provided some positive strategic insights, but challenges remain.

Positive Factors

New Product Launch

The launch of ApexOne Auto diversifies revenue streams and adds a recurring revenue model, strengthening long-term business prospects.

Improved Financial Metrics

Consistent positive adjusted EBITDA indicates enhanced financial stability and operational efficiency, supporting sustainable growth.

Customer Retention

Strong customer retention and acquisition reflect robust market position and customer satisfaction, crucial for long-term success.

Negative Factors

Decreased Loan Certifications

A decrease in loan certifications due to tightened lending standards may limit revenue growth and market expansion opportunities.

Rising Operating Expenses

Significant rise in operating expenses can pressure margins and reduce profitability, challenging financial health over time.

Net Loss

Ongoing net losses highlight financial challenges, potentially affecting investment capacity and long-term strategic initiatives.

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 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. The income statement shows substantial losses with negative profit margins. The balance sheet reflects poor shareholder returns despite manageable leverage. Cash flow analysis indicates severe declines in cash generation, raising liquidity concerns.

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	222.13M	243.16M	240.21M	204.45M	116.45M	101.51M
Total Debt	10.11M	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: 1.65
• 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 1.65 is below the 20-day moving average (MA) of 1.66, below the 50-day MA of 1.91, and below the 200-day MA of 2.38, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 46.78 is Neutral, neither overbought nor oversold. The STOCH value of 46.38 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	76 Outperform	$222.32M	5.59	10.79%	4.92%	15.52%	2.05%
YRD	70 Outperform	$396.61M	2.24	13.64%	9.59%	12.69%	-35.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CPSS	64 Neutral	$181.20M	10.25	6.58%	―	16.94%	-10.46%
OPRT	62 Neutral	$206.08M	7.09	8.59%	―	-5.29%	―
FOA	50 Neutral	$466.29M	―	-0.27%	―	93.57%	-106.02%
LPRO	42 Neutral	$195.01M	―	-102.53%	―	-82.33%	-3365.80%

Open Lending Corporate Events

Open Lending’s Earnings Call: Growth Amid Challenges

Open Lending Corporation’s recent earnings call painted a picture of both opportunity and challenge. The company showcased promising new product launches and improved financial metrics, yet faced hurdles such as decreased loan certifications and rising operating expenses. Despite these obstacles, Open Lending is strategically positioning itself for future growth.

Open Lending Corporation Reports Q3 2025 Financial Results

Open Lending Corporation, a key player in the lending enablement and risk analytics sector, offers solutions to financial institutions across the U.S., focusing on auto loans. In its third-quarter 2025 financial report, Open Lending highlighted its strategic shift towards enhanced underwriting standards and the launch of ApexOne Auto, a new decisioning platform aimed at serving a broader range of auto borrowers.

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.

The most recent analyst rating on (LPRO) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Open Lending stock, see the LPRO Stock Forecast page.

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.

The most recent analyst rating on (LPRO) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Open Lending stock, see the LPRO Stock Forecast page.