Open Lending (NASDAQ:LPRO) Releases Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Open Lending (NASDAQ:LPRO) issued its quarterly earnings data on Thursday. The company reported $0.00 EPS for the quarter, missing the consensus estimate of $0.01 by ($0.01), reports. Open Lending had a positive return on equity of 7.52% and a negative net margin of 5.95%.The firm had revenue of $20.49 million during the quarter, compared to the consensus estimate of $20.41 million.

Here are the key takeaways from Open Lending’s conference call:

• The company delivered 21,064 certified loans in Q1, beating the high end of guidance and reaffirmed full-year cert guidance of 100,000–110,000, with an expected volume acceleration from OEM?3 ramp in H2.
• Per?loan economics improved materially — profit?share revenue per certified loan rose to $363 (up 30% YoY) and management has booked the 2026 vintage at a ~70% loss ratio while expecting eventual performance closer to the mid?60s.
• Top?line and near?term profitability were weaker — total revenue fell to $20.5M (from $24.4M), Adjusted EBITDA declined to $2M (from $3.2M), and the company reported a small net loss of $0.5M for the quarter.
• Strategic investments (Project Red Rocks, Apex One Auto, and expanded decisioning/AI capabilities) and positive carrier feedback position the business for future, higher?quality growth, but these initiatives are early and their scale/timing remains uncertain.

Open Lending Price Performance

Shares of LPRO traded up $0.28 during mid-day trading on Friday, hitting $1.90. 2,431,214 shares of the stock were exchanged, compared to its average volume of 609,233. The firm has a 50-day moving average of $1.46 and a two-hundred day moving average of $1.63. Open Lending has a 52-week low of $1.18 and a 52-week high of $2.70. The company has a market cap of $223.59 million, a PE ratio of -47.50 and a beta of 2.20. The company has a debt-to-equity ratio of 1.03, a quick ratio of 4.52 and a current ratio of 4.52.

Hedge Funds Weigh In On Open Lending

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Wasatch Advisors LP grew its stake in shares of Open Lending by 3.6% in the 3rd quarter. Wasatch Advisors LP now owns 6,406,790 shares of the company’s stock worth $13,518,000 after buying an additional 224,183 shares in the last quarter. Cannell Capital LLC grew its stake in shares of Open Lending by 87.1% in the 2nd quarter. Cannell Capital LLC now owns 3,596,490 shares of the company’s stock worth $6,977,000 after buying an additional 1,674,646 shares in the last quarter. Geode Capital Management LLC grew its stake in shares of Open Lending by 4.0% in the 2nd quarter. Geode Capital Management LLC now owns 2,564,948 shares of the company’s stock worth $4,977,000 after buying an additional 98,515 shares in the last quarter. Veradace Capital Management LLC purchased a new position in shares of Open Lending in the 4th quarter worth $2,372,000. Finally, JPMorgan Chase & Co. lifted its stake in shares of Open Lending by 1,577.7% in the 2nd quarter. JPMorgan Chase & Co. now owns 848,424 shares of the company’s stock valued at $1,646,000 after purchasing an additional 797,852 shares during the last quarter. 78.06% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

LPRO has been the subject of a number of recent analyst reports. DA Davidson dropped their price objective on Open Lending from $4.00 to $3.00 and set a “buy” rating for the company in a research note on Monday, March 16th. Canaccord Genuity Group reaffirmed a “hold” rating and set a $2.00 target price on shares of Open Lending in a research note on Tuesday, March 17th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Open Lending in a report on Thursday, January 22nd. Two investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $2.58.

Open Lending Company Profile

Open Lending Corporation is a financial technology company specializing in risk analytics and automated loan decisioning for the automotive finance industry. Through its proprietary platform, Open Lending enables banks, credit unions and finance companies to enhance underwriting accuracy, manage risk more effectively and streamline the loan origination process. The company’s solutions leverage machine learning and big-data analytics to deliver credit-based pricing models that help lenders optimize portfolio performance and reduce losses.

The core offerings of Open Lending include an automated underwriting engine, risk-based pricing tools and performance analytics dashboards.