Open Lending (LPRO) AI Stock Analysis

• Market Cap: $150.93M
• Dividend Yield: N/A
• Average Volume (3M): 4.99M
• Price to Earnings (P/E): 72.9
• Beta (1Y): 2.49
• Revenue Growth: -79.55%
• EPS Growth: -726.70%
• Country: US
• Employees: 205
• Sector: Financial
• Sector Strength: 85
• Industry: Financial - Credit Services
• EPS (TTM): -1.13
• Shares Outstanding: 119,782,900
• 10 Day Avg. Volume: 4,463,085
• 30 Day Avg. Volume: 4,991,223
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 3.99
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.33
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.48
• Price Target Upside: 180.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Open Lending's overall score is driven by significant financial challenges, as indicated by drastic revenue declines and net losses. Technical indicators highlight bearish trends, while valuation reflects unprofitability. Although recent leadership changes provide a positive outlook, the impact is limited by ongoing operational and financial difficulties.

Positive Factors

Financial Position

Open Lending has unencumbered cash of $243 million, net of debt, resulting in $103 million.

Leadership

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

Negative Factors

Accounting Issues

Potential accounting issues hinder visibility and may reduce profitability.

Profit Share

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.

Underwriting Standards

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 shows a strong gross profit margin and solid cash flow management, but faces challenges with declining revenues and profitability margins. The balance sheet is stable, though leverage needs monitoring.

Income Statement

Open Lending has shown a decline in revenue over the TTM with a decrease to $95.89M from $117.46M in the previous year, indicating negative revenue growth. The gross profit margin is strong at 76.0% for TTM, but net profit margin has significantly reduced to 4.78%, compared to higher values in previous years. EBIT and EBITDA margins have also dropped, reflecting reduced profitability. The company's income statement highlights challenges in maintaining revenue and profitability levels.

Balance Sheet

The balance sheet of Open Lending shows a stable financial position with a solid equity base of $220.46M. The debt-to-equity ratio is moderately high at 0.66, indicating manageable leverage. The equity ratio is satisfactory at 55.7%, suggesting a good proportion of equity financing. Return on equity has decreased, reflecting reduced profitability. Overall, the balance sheet reflects stability with some leverage risks.

Cash Flow

Open Lending's cash flow management is strong with a positive operating cash flow of $37.73M and free cash flow of $36.98M in TTM. The free cash flow to net income ratio is favorable, indicating efficient cash generation relative to net income. However, the free cash flow growth rate is negative due to a decline from the previous period. The operating cash flow to net income ratio is robust, showing strong cash conversion capabilities.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
117.46M	179.59M	215.66M	108.89M	92.85M
	Gross Profit
95.18M	159.63M	197.03M	99.11M	85.04M
	EBIT
29.07M	97.61M	205.81M	56.72M	62.62M
	EBITDA
41.30M	100.87M	198.69M	-77.62M	62.94M
	Net Income Common Stockholders
22.07M	66.62M	146.08M	-97.56M	62.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
240.21M	204.45M	116.45M	101.51M	7.68M
	Total Assets
374.04M	379.63M	318.82M	294.01M	79.19M
	Total Debt
148.13M	151.51M	150.90M	163.25M	3.31M
	Net Debt
-92.08M	-52.94M	34.45M	61.74M	-4.36M
	Total Liabilities
168.46M	166.81M	159.84M	267.39M	313.96M
	Stockholders Equity
205.58M	212.82M	158.98M	26.62M	-234.78M
Cash Flow		Free Cash Flow
80.48M	106.81M	93.17M	23.44M	41.66M
	Operating Cash Flow
82.66M	107.43M	95.16M	24.64M	41.76M
	Investing Cash Flow
-2.18M	-624.00K	-1.99M	-1.20M	-99.00K
	Financing Cash Flow
-42.33M	-17.80M	-77.81M	70.81M	-44.90M

Open Lending Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1.24 is above the 20-day moving average (MA) of 1.11, below the 50-day MA of 3.05, and below the 200-day MA of 5.15, indicating a neutral trend. The MACD of -0.54 indicates Negative momentum. The RSI at 33.56 is Neutral, neither overbought nor oversold. The STOCH value of 89.06 is Negative, 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
ENVA	78 Outperform	$2.56B	13.34	17.19%	―	25.51%	36.96%
RM	74 Outperform	$337.29M	8.12	12.14%	3.58%	6.73%	151.08%
ALLY	69 Neutral	$9.77B	17.68	3.84%	3.65%	-2.90%	-43.64%
COOP	68 Neutral	$7.37B	13.09	12.39%	―	6.44%	-7.86%
Sector *	63 Neutral	$12.37B	9.56	7.95%	79.17%	12.62%	-5.26%
LC	54 Neutral	$1.25B	24.14	3.96%	―	3.63%	27.77%
LPRO	38 Underperform	$150.93M	72.92	-95.19%	―	-79.55%	-726.70%

Open Lending Corporate Events

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.

Spark’s Take on LPRO Stock

According to Spark, TipRanks’ AI Analyst, LPRO is a Underperform.

Open Lending’s overall score is driven by significant financial challenges, as indicated by drastic revenue declines and net losses. Technical indicators highlight bearish trends, while valuation reflects unprofitability. Although recent leadership changes provide a positive outlook, the impact is limited by ongoing operational and financial difficulties.

To see Spark’s full report on LPRO stock, click here.

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.