Open Lending (LPRO) AI Stock Analysis

• Market Cap: $269.52M
• Dividend Yield: N/A
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 72.9
• Beta (1Y): 2.53
• Revenue Growth: -83.91%
• EPS Growth: -1062.77%
• Country: US
• Employees: 205
• Sector: Financial
• Sector Strength: 82
• Industry: Financial - Credit Services
• EPS (TTM): 0.01
• Shares Outstanding: 119,786,420
• 10 Day Avg. Volume: 1,329,658
• 30 Day Avg. Volume: 1,189,197
• 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: 2.96
• Enterprise Value/Revenue: 3.38
• Enterprise Value/Gross Profit: -122.49
• Enterprise Value/Ebitda: -9.35
• 1Y Price Target: $2.65
• Price Target Upside: 15.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 48 Neutral
• Price Target: $2.00 ▼(-13.04%Downside)

Open Lending's overall stock score is primarily impacted by its challenging financial performance, characterized by declining revenue and profitability. Technical indicators provide a mixed outlook, with short-term bullish momentum but longer-term bearish trends. Valuation concerns persist due to negative profitability. Operational improvements highlighted in the earnings call offer some optimism, though financial issues remain significant.

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.

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.

Share Repurchase

The board approved a $25 million share repurchase authorization, viewed as a smart use of capital, given LPRO's strong balance sheet and the discounted valuation.

Negative Factors

Financial Performance

LPRO reported poor 4Q results, drastically missing Street expectations on the top and bottom line due to a sizable negative fair value revision on the profit share revenue stream.

Profitability

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

Underwriting

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

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 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
EBITDA	-64.60M	-51.61M	41.30M	100.87M	198.69M	-77.62M
Net Income	-139.48M	-135.01M	22.07M	66.62M	146.08M	-97.56M
Balance Sheet
Total Assets	304.22M	296.37M	374.04M	379.63M	318.82M	294.01M
Cash, Cash Equivalents and Short-Term Investments	236.23M	243.16M	240.21M	204.45M	116.45M	101.51M
Total Debt	197.55M	10.77M	148.13M	151.51M	150.90M	163.25M
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: Positive
• Last Price: 2.30
• 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 Positive. The current price of 2.3 is above the 20-day moving average (MA) of 2.07, above the 50-day MA of 1.84, and below the 200-day MA of 4.27, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 61.01 is Neutral, neither overbought nor oversold. The STOCH value of 72.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$227.49M	6.12	10.39%	4.90%	13.93%	-23.70%
YRD	73 Outperform	$522.76M	2.84	14.69%	3.64%	12.45%	-36.64%
Sector *	67 Neutral	€10.37B	14.34	6.96%	3.51%	13.89%	1.77%
FOA	62 Neutral	$572.73M	4.09	21.28%	―	4215.36%	―
OPRT	61 Neutral	$310.60M	―	-11.37%	―	-5.79%	59.24%
CPSS	55 Neutral	$215.81M	12.57	6.69%	―	13.23%	-47.36%
LPRO	48 Neutral	$269.52M	72.92	-95.74%	―	-83.91%	-1062.77%

Open Lending Corporate Events

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.

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 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.