Download PDF

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on LPRO

Recent negative drivers for Open Lending Corporation include uncertainty around earnings estimates, which may not support further upside in the near term. The retirement of co-founder John Flynn from the Board of Directors may also raise concerns about leadership and strategic direction. Additionally, the company's reliance on partnerships with captive finance companies, such as the recent OEM agreement, may be vulnerable to changes in the automotive industry.

1.c. Company Highlights

2. Open Lending's Q3 2025 Earnings: A Step Towards Stability

Open Lending reported total revenue of $24.2 million for Q3 2025, a 3% increase from the prior year period, driven by an 8% year-over-year increase in program fee unit economics. The company's net profit share to Open Lending stood at 72%. Operating income was $26.6 million, a 71% increase from $15.5 million in Q3 2024. However, net losses for Q3 2025 were $7.6 million, compared to net income of $1.4 million in Q3 2024. Adjusted EBITDA for Q3 2025 was $5.6 million, excluding a one-time payment of $11 million. Earnings per share (EPS) came in at $0.03, beating analyst estimates of $0.01.

Publication Date: Nov -19

📋 Highlights
  • Adjusted EBITDA Growth: Achieved $5.6 million in Q3 2025, marking the third consecutive quarter of positive adjusted EBITDA.
  • ApexOne Auto Expansion: Launched with 2 customers, targeting $30–$40 million revenue by capturing 50% of subprime credit union applications.
  • Total Revenue Increase: Generated $24.2 million in Q3 2025, a 3% year-over-year rise, with program fees at $13.3 million and a 72% net profit share.
  • Cost Savings with Allied: Amended contract to save $2.5 million annually starting 2027 after a $11 million one-time payment to eliminate future commission fees.
  • Operating Income Surge: Recorded $26.6 million in Q3 2025, a 71% increase from $15.5 million in Q3 2024, despite a $7.6 million net loss (vs. $1.4 million net income previously).

Business Highlights

The company has made significant progress in its transition towards stability, with three consecutive quarters of positive adjusted EBITDA and reduced volatility in back book performance. Open Lending has also introduced ApexOne Auto, a new prime credit automated decisioning platform, which has already been launched with two customers and has additional interest in the pipeline. The company expects to capture around 25% of its credit union clients' subprime applications, potentially generating revenue between $30 million and $40 million.

Operational Efficiency and Cost Savings

Open Lending has amended its contract with Allied, anticipating over $2.5 million in annual cost savings once the changes are fully implemented in 2027. The one-time payment of $11 million is expected to generate ROI by eliminating a portion of future commission fees. The company's operating expenses, excluding the one-time payment, were relatively flat compared to the previous year, indicating improved operational efficiency.

Valuation and Outlook

With a P/S Ratio of 10.67 and an EV/EBITDA ratio of 0.4, the market seems to be pricing in a certain level of growth for Open Lending. Analysts estimate next year's revenue growth at 8.0%, which may justify the current valuation to some extent. The company's guidance for Q4 2025 suggests continued improvement in certified loan volumes, excluding credit builders and SuperThin's, with a 7% year-over-year increase. Open Lending is well-positioned for growth in 2026, driven by increased flow from the refi channel, growth in OEM, and improvement in retention of its credit unions.

3. NewsRoom

Card image cap

Open Lending Appoints Abhijit Chaudhary to Board of Directors

Nov -25

Source: globenewswire.com

Card image cap

Open Lending Corporation (NASDAQ:LPRO) Receives Average Recommendation of “Hold” from Analysts

Nov -25

Source: defenseworld.net

Card image cap

Open Lending (LPRO) Upgraded to Buy: What Does It Mean for the Stock?

Nov -11

Source: zacks.com

Card image cap

Open Lending Corporation (LPRO) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

Card image cap

Open Lending (LPRO) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Nov -07

Source: zacks.com

Card image cap

Open Lending (LPRO) Beats Q3 Earnings and Revenue Estimates

Nov -07

Source: zacks.com

Card image cap

Open Lending Reports Third Quarter 2025 Financial Results

Nov -06

Source: globenewswire.com

Card image cap

Open Lending Launches ApexOne Auto to Expand Auto Lending Decisioning to Full Spectrum of Borrowers

Nov -06

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.27%)

6. Segments

Program Fees

Expected Growth: 10.27%

Open Lending Corporation's 10.27% growth in Program Fees is driven by increasing adoption of its AI-driven lending platform, expansion into new markets, and growing demand for digital lending solutions. Additionally, the company's strategic partnerships with banks and credit unions, as well as its ability to provide real-time credit decisions, have contributed to its growth momentum.

Profit Share

Expected Growth: 10.27%

Open Lending Corporation's 10.27% profit share growth is driven by increasing adoption of its AI-powered lending platform, expansion into new markets, and strategic partnerships with major banks and fintech companies. Additionally, the company's focus on reducing loan processing times and improving credit risk assessment has led to higher profitability and market share gains.

Claims Administration and Other Service Fees

Expected Growth: 10.27%

Open Lending Corporation's 10.27% growth in Claims Administration and Other Service Fees is driven by increasing adoption of its digital insurance platform, expansion into new markets, and strategic partnerships with leading lenders and OEMs. Additionally, the company's focus on improving operational efficiency and enhancing customer experience has contributed to the growth.

7. Detailed Products

Lenders Protection

A risk-based pricing and underwriting solution that helps lenders to identify and price risk more accurately, resulting in increased profitability and reduced defaults.

Credit Center

A platform that provides lenders with real-time credit data and analytics to make informed lending decisions, reducing defaults and improving portfolio performance.

Auto Booking

An automated loan processing solution that streamlines the loan origination process, reducing manual errors and increasing efficiency.

Portfolio Analyzer

A portfolio management tool that provides lenders with insights into their loan portfolio, enabling them to identify areas of risk and opportunity.

8. Open Lending Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Open Lending Corporation operates in the fintech industry, which is characterized by rapid innovation and disruption. While there are substitutes available, the company's proprietary technology and data-driven approach provide a competitive edge, reducing the threat of substitutes.

Bargaining Power Of Customers

Open Lending Corporation's customers are primarily financial institutions, which have limited bargaining power due to the company's unique value proposition and limited alternatives.

Bargaining Power Of Suppliers

Open Lending Corporation's suppliers are primarily data providers and technology vendors, which have limited bargaining power due to the company's scale and negotiating power.

Threat Of New Entrants

The fintech industry is highly competitive, and new entrants can easily disrupt the market. Open Lending Corporation's proprietary technology and established partnerships provide a barrier to entry, but the threat of new entrants remains high.

Intensity Of Rivalry

The fintech industry is highly competitive, with many established players and new entrants vying for market share. Open Lending Corporation operates in a niche market, but the intensity of rivalry remains high due to the company's growth ambitions and the need to maintain market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 41.20%
Debt Cost 9.11%
Equity Weight 58.80%
Equity Cost 9.11%
WACC 9.11%
Leverage 70.07%

11. Quality Control: Open Lending Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Oportun Financial

A-Score: 5.1/10

Value: 9.4

Growth: 3.3

Quality: 6.0

Yield: 0.0

Momentum: 10.0

Volatility: 2.0

1-Year Total Return ->

View Full Report
Stock-Card
Green Dot

A-Score: 4.5/10

Value: 9.1

Growth: 2.9

Quality: 4.9

Yield: 0.0

Momentum: 7.5

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
PRA Group

A-Score: 4.2/10

Value: 9.3

Growth: 2.6

Quality: 7.9

Yield: 0.0

Momentum: 1.5

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
Consumer Portfolio Services

A-Score: 3.8/10

Value: 7.3

Growth: 5.0

Quality: 4.8

Yield: 0.0

Momentum: 2.0

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
Upstart

A-Score: 3.3/10

Value: 6.6

Growth: 2.4

Quality: 5.2

Yield: 0.0

Momentum: 4.5

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
Open Lending

A-Score: 1.5/10

Value: 4.6

Growth: 0.7

Quality: 1.4

Yield: 0.0

Momentum: 0.5

Volatility: 2.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.82$

Current Price

1.82$

Potential

-0.00%

Expected Cash-Flows