Open Lending (LPRO) AI Stock Analysis

• Market Cap: $217.44M
• Dividend Yield: N/A
• Average Volume (3M): 698.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.64
• Revenue Growth: -83.48%
• EPS Growth: -2400.00%
• Country: US
• Employees: 205
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.01
• Shares Outstanding: 118,172,480
• 10 Day Avg. Volume: 787,716
• 30 Day Avg. Volume: 698,714
• 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: 0.59
• Enterprise Value/Revenue: 7.91
• Enterprise Value/Gross Profit: -16.62
• Enterprise Value/Ebitda: -2.00
• 1Y Price Target: $3.43
• Price Target Upside: 89.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 41 Neutral
• Price Target: $2.00 ▲(10.50% Upside)

Open Lending's overall stock score is primarily impacted by its poor financial performance, characterized by severe profitability issues and weak cash flow. Technical analysis further indicates a bearish trend, while valuation concerns are underscored by a negative P/E ratio. Although the earnings call provided some positive strategic developments, the overall outlook remains challenging.

Positive Factors

Strategic Partnership Extension

The extension of the AmTrust agreement secures long-term credit capability and capacity, reinforcing Open Lending's market position and ensuring stable revenue streams.

New CFO Appointment

The appointment of an experienced CFO can enhance financial management and strategic planning, potentially improving operational efficiency and profitability.

Improved Unit Economics

Focusing on profitable, less volatile unit economics can enhance long-term financial stability and resilience against market fluctuations.

Negative Factors

Profitability Issues

Persistent negative margins indicate ongoing challenges in achieving profitability, which can hinder long-term growth and shareholder returns.

Declining Free Cash Flow

Weak cash generation limits the company's ability to invest in growth opportunities, pay down debt, or return capital to shareholders, impacting financial flexibility.

Decrease in Certified Loans

A decrease in certified loans suggests challenges in maintaining loan volume, which can affect revenue and market share if not addressed.

Open Lending Business Overview & Revenue Model

Company Description

Open Lending (LPRO) is a fintech company that specializes in providing automated lending solutions to financial institutions, primarily in the auto finance sector. The company offers a suite of services, including risk assessment and credit analytics, designed to enhance the lending process for both lenders and borrowers. Open Lending's core products include its proprietary Lenders Risk Assessment Platform, which helps lenders identify qualified borrowers and manage risk effectively. The company operates within the broader financial technology sector, focusing on improving efficiency and access to credit in the automotive market.

How the Company Makes Money

Open Lending generates revenue primarily through its SaaS (Software as a Service) business model, charging lenders a fee for access to its technology platform and services. Key revenue streams include transaction fees based on the volume of loans facilitated through its platform, subscription fees for software access, and fees for additional services such as risk assessment and analytics. The company also benefits from strategic partnerships with various financial institutions and auto dealerships, which help to expand its client base and enhance revenue opportunities. These partnerships enable Open Lending to leverage its technology to streamline the lending process, thereby increasing overall market penetration and driving revenue growth.

Open Lending Financial Statement Overview

Summary

Open Lending faces severe financial challenges, with negative profit margins and declining revenue. The balance sheet shows reduced leverage but negative ROE, and cash flow analysis indicates weak cash generation. These issues significantly impact the company's financial health.

Income Statement

Open Lending's income statement shows significant challenges. The TTM data indicates a negative gross profit margin of -47.55% and a net profit margin of -869.57%, highlighting severe profitability issues. Revenue has been declining, with a TTM revenue growth rate of -8.02%. Historical data shows a consistent decline in revenue and profitability, with the most recent annual report showing a net profit margin of -561.98%. The company is struggling to maintain positive margins and growth, which is a major concern.

Balance Sheet

The balance sheet reflects a mixed financial position. The TTM debt-to-equity ratio has improved to 0.13 from a high of 6.13 in 2020, indicating reduced leverage. However, the return on equity is negative at -123.63%, showing that the company is not generating returns for shareholders. The equity ratio is relatively stable, but the negative ROE and historical high leverage present risks.

Cash Flow

Cash flow analysis reveals declining free cash flow growth, with a TTM rate of -351.81%. The operating cash flow to net income ratio is low at 0.11, indicating weak cash generation relative to net income. Although the free cash flow to net income ratio is 0.56, the overall cash flow position is concerning due to declining free cash flow and weak cash flow coverage.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.25M	24.02M	117.46M	179.59M	215.66M	108.89M
Gross Profit	-7.73M	169.00K	95.18M	159.63M	197.03M	99.11M
EBITDA	-64.20M	-51.61M	41.30M	100.87M	198.69M	-77.62M
Net Income	-141.35M	-135.01M	22.07M	66.62M	146.08M	-97.56M
Balance Sheet
Total Assets	296.66M	296.37M	374.04M	379.63M	318.82M	294.01M
Cash, Cash Equivalents and Short-Term Investments	230.66M	243.16M	240.21M	204.45M	116.45M	101.51M
Total Debt	189.35M	143.77M	148.13M	151.51M	150.90M	163.25M
Total Liabilities	217.71M	218.28M	168.46M	166.81M	159.84M	267.39M
Stockholders Equity	78.95M	78.09M	205.58M	212.82M	158.98M	26.62M
Cash Flow
Free Cash Flow	2.79M	17.43M	80.48M	106.81M	93.17M	23.44M
Operating Cash Flow	5.01M	17.60M	82.66M	107.43M	95.16M	24.64M
Investing Cash Flow	-3.00M	-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: 1.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 1.81 is below the 20-day moving average (MA) of 1.93, below the 50-day MA of 2.08, and below the 200-day MA of 2.71, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 42.53 is Neutral, neither overbought nor oversold. The STOCH value of 24.73 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
YRD	―	$462.27M	2.59	13.64%	8.22%	12.69%	-35.36%
MFIN	―	$229.44M	5.44	10.79%	4.63%	15.52%	2.05%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CPSS	―	$181.35M	10.18	6.66%	―	16.13%	-28.76%
OPRT	―	$235.89M	―	-1.26%	―	-5.87%	94.07%
FOA	―	$526.80M	―	33.40%	―	276.86%	―
LPRO	―	$217.44M	-1.55	-95.59%	―	-83.48%	-2400.00%

Open Lending Corporate Events

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.

Open Lending’s Earnings Call: Strategic Wins Amid Challenges

The recent earnings call from Open Lending Corporation presented a mixed sentiment, balancing strategic achievements with financial challenges. The company showcased its strategic progress through an early extension of a significant partnership and positive profit share adjustments, reflecting improved business confidence and portfolio quality. However, declines in financial metrics such as certified loans, revenue, and net income highlighted ongoing operational and market challenges. Overall, the sentiment was one of cautious optimism.

Open Lending Corporation Reports Q2 2025 Financial Results

Open Lending Corporation, a leader in lending enablement and risk analytics solutions for financial institutions, specializes in providing loan analytics, risk-based pricing, and default insurance to auto lenders across the United States.

Open Lending Terminates Chief Revenue Officer

On July 29, 2025, Open Lending terminated the employment of its Chief Revenue Officer, Matthew R. Roe. This decision may impact the company’s operations and leadership dynamics.

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 Appoints New Chief Financial Officer

On July 24, 2025, Open Lending Corporation announced the appointment of Massimo Monaco as Chief Financial Officer, effective August 18, 2025. Mr. Monaco, with over 20 years of experience in the residential mortgage lending and financial services industries, is expected to drive the next phase of growth for Open Lending. His extensive background and proven financial leadership are anticipated to strengthen the company’s operations and further its mission to serve underserved financial institutions.

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.