Open Lending Reports Third Quarter 2025 Financial Results

Rhea-AI Summary

Open Lending (Nasdaq: LPRO) reported third quarter 2025 results on Nov 6, 2025. Total revenue was $24.2 million and gross profit was $18.9 million for Q3 2025. The company reported a net loss of $7.6 million versus net income of $1.4 million in Q3 2024. Adjusted EBITDA was $5.6 million, up from $4.5 million year-over-year, with a revised presentation excluding interest income and certain non-recurring expenses.

Open Lending facilitated 23,880 certified loans in Q3 2025, and average profit share revenue per certified loan declined to $310 from $502. The company received a one-time $11.0 million payment from Allied Solutions under an amended reseller agreement. Q4 2025 certified loans are guided to 21,500–23,500.

Positive

• Total revenue of $24.2M in Q3 2025
• Gross profit of $18.9M in Q3 2025
• Adjusted EBITDA of $5.6M in Q3 2025 (up from $4.5M)
• One-time $11.0M payment from Allied Solutions (August 13, 2025)

Negative

• Net loss of $7.6M in Q3 2025 versus net income of $1.4M in Q3 2024
• Certified loans fell to 23,880 in Q3 2025 from 27,435 (≈13% decline)
• Average profit share revenue per certified loan declined to $310 from $502 (≈38% drop)

Insights

Credit and Financial Operations Analyst

Mixed quarter: revenue and adjusted EBITDA rose, but a swing to a -7.6 million net loss and lower profit-share per loan temper the results.

Open Lending shows modest top-line growth with 24.2 million in revenue and improving Adjusted EBITDA (5.6 million), reflecting operational leverage from fees and cost adjustments. The company facilitated 23,880 certified loans in the quarter and increased average program fees to 558 per loan, which supports recurring fee revenue.

Significant risks and dependencies include the decline in average profit share revenue to 310 per loan and the swing to a net loss of 7.6 million, which indicate that profit-share volatility materially affected GAAP profitability despite higher gross profit. The one-time 11.0 million payout to amend the Allied reseller agreement changes future referral expense profiles but represents a cash cost this period.

Watch certified loan volume guidance of Q4 2025 at 21,500–23,500 and the company’s commentary about underwriting and ApexOne Auto adoption over the next several quarters; these items will show whether fee growth and reduced profit-share volatility translate into sustained GAAP profitability. Near-term (next 1–2 quarters) monitor profit-share recoveries per loan, and medium-term (through 2026) watch loan volumes and operating leverage trends.

AUSTIN, Texas, Nov. 06, 2025 (GLOBE NEWSWIRE) -- Open Lending Corporation (Nasdaq: LPRO) (the “Company” or “Open Lending”), a leading provider of lending enablement and risk analytics solutions for financial institutions, today reported financial results for its third quarter ended September 30, 2025.

“Our results reflect the strategic implementation of enhanced underwriting standards and a more conservative booking approach that we believe will reduce volatility in our profit share unit economics,” said Jessica Buss, Chief Executive Officer of Open Lending. “We believe our value proposition is further enhanced by the launch of ApexOne Auto, an advanced decisioning platform that expands our capabilities to serve the full spectrum of auto borrowers. We have a high degree of confidence in our business model as we head into 2026.”

Three Months Ended September 30, 2025 Highlights

• The Company facilitated 23,880 certified loans during the third quarter of 2025, compared to 27,435 certified loans in the third quarter of 2024.
• Total revenue was $24.2 million during the third quarter of 2025, compared to $23.5 million in the third quarter of 2024. The third quarter of 2025 was impacted by an increase of $1.1 million in estimated profit share revenues related to business in historic vintages as compared to a $7.0 million reduction in the third quarter of 2024.
• Gross profit was $18.9 million during the third quarter of 2025, compared to $17.3 million in the third quarter of 2024.
• Net loss was $7.6 million during the third quarter of 2025, compared to net income of $1.4 million in the third quarter of 2024.
• Adjusted EBITDA was $5.6 million during the third quarter of 2025, compared to $4.5 million in the third quarter of 2024.
  

Adjusted EBITDA is a non-GAAP financial measure. Beginning in the quarter ended June 30, 2025, we have updated the presentation of Adjusted EBITDA to exclude interest income as we believe the exclusion of interest income aligns our definition with comparable companies. Prior periods presented have been conformed to the current period presentation. In addition, beginning in the quarter ended September 30, 2025, we have updated the presentation of Adjusted EBITDA to exclude certain other non-recurring expenses that do not contribute directly to management’s evaluation of our operating results. A reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure is provided in the financial table included at the end of this press release. An explanation of this measure and how it is calculated is also included under the heading “Non-GAAP Financial Measures.”

Business Highlights

• Credit unions and banks represented 21,449, or 89.8%, of certified loans in the third quarter of 2025, compared to 21,808, or 79.5%, in the third quarter of 2024.
• Average profit share revenue per certified loan was $310 in the third quarter of 2025, compared to $502 in the third quarter of 2024.
• Average program fee revenue per certified loan was $558 in the third quarter of 2025, compared to $516 in the third quarter of 2024.
• On August 13, 2025, the Company and Allied Solutions, LLC (“Allied”) entered into an amendment to their reseller agreement to, among other matters, extend the term of the agreement and to provide for a one-time payment of $11.0 million in exchange for the extinguishment of Allied’s right to certain ongoing compensation and the amendment of the schedule of referral fees payable to Allied.

Fourth Quarter 2025 Outlook
For the fourth quarter of 2025, the Company currently expects total certified loans to be between 21,500 and 23,500.

The guidance provided includes forward-looking statements within the meaning of U.S. securities laws. See “Forward-Looking Statements” below.

Open Lending will host a conference call to discuss the third quarter 2025 financial results on November 6, 2025 at 5:00 pm ET. The conference call will be webcast live from the Company's investor relations website at https://investors.openlending.com/ under the “Events” section. The conference call can also be accessed live over the phone by dialing (800) 343-4849, or for international callers (203) 518-9848, in each case using access code LENDING. An archive of the webcast will be available at the same location on the website shortly after the call has concluded.

About Open Lending
Open Lending (Nasdaq: LPRO) provides loan analytics, risk-based pricing, risk modeling and default insurance to auto lenders throughout the United States. For 25 years, we have been empowering financial institutions to create profitable auto loan portfolios with less risk and more reward. For more information, please visit www.openlending.com.

Forward-Looking Statements
This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995, including statements related to the Company's new loan measures, lender profitability, volatility, market trends, consumer behavior and demand for automotive loans, as well as future financial performance under the heading "Fourth Quarter 2025 Outlook" above. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” “on track,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements are based on various assumptions and on the current expectations of the Company’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the Company’s control. These forward-looking statements are subject to a number of risks and uncertainties, including general economic, market, political and business conditions; applicable taxes, inflation, tariffs, supply chain disruptions including global hostilities and responses thereto, the prolonged U.S. government shutdown, interest rates and the regulatory environment; the outcome of judicial proceedings to which Open Lending may become a party; and other risks discussed in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2024. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company presently does not know or that it currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this press release. Subsequent events and developments may cause the Company's assessments to change, but, the Company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

Non-GAAP Financial Measures
The non-GAAP financial measures included in this press release are financial information that has not been prepared in accordance with GAAP. The Company uses Adjusted EBITDA and Adjusted EBITDA margin internally in analyzing our financial results and believes these measures are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. The Company believes that the use of non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures to investors.

The Company believes these measures provide useful information to investors and others in understanding and evaluating its operating results in the same manner as its management and board of directors. In addition, these measures provide useful measures for period-to-period comparisons of our business, as they remove the effect of certain non-cash items and certain non-recurring variable charges.

Adjusted EBITDA is defined as GAAP net income (loss) excluding interest expense, interest income, income tax expense, depreciation and amortization expense, share-based compensation expense and certain other non-recurring expenses that do not contribute directly to management’s evaluation of our operating results. Adjusted EBITDA margin is defined as Adjusted EBITDA expressed as a percentage of total revenue.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measure provided in the financial statement tables included below in this press release.

Investor Relations Contact:
InvestorRelations@openlending.com 

OPEN LENDING CORPORATION
Consolidated Balance Sheets
(Unaudited)
(In thousands, except share data)

		September 30, 2025				December 31, 2024
Assets
Current assets
Cash and cash equivalents		$	222,134			$	243,164
Restricted cash			11,595				10,760
Accounts receivable, net			4,418				5,055
Current contract assets, net			24,015				9,973
Income tax receivable			4,015				3,558
Other current assets			6,391				3,215
Total current assets			272,568				275,725
Property and equipment, net			518				729
Capitalized software development costs, net			4,645				5,386
Operating lease right-of-use assets, net			3,273				3,878
Contract assets			3,087				5,094
Other assets			3,560				5,556
Total assets		$	287,651			$	296,368
Liabilities and stockholders’ equity
Current liabilities
Accounts payable		$	1,038			$	953
Accrued expenses			8,640				5,166
Current portion of debt			7,500				7,500
Third-party claims administration liability			11,650				10,797
Current portion of excess profit share receipts			17,231				19,346
Other current liabilities			2,700				3,490
Total current liabilities			48,759				47,252
Long-term debt, net of deferred financing costs			126,852				132,217
Operating lease liabilities			2,613				3,273
Excess profit share receipts			30,001				28,210
Other liabilities			6,601				7,329
Total liabilities			214,826				218,281
Stockholders’ equity
Preferred stock, $0.01 par value; 10,000,000 shares authorized and none issued and outstanding			—				—
Common stock, $0.01 par value; 550,000,000 shares authorized, 128,198,185 shares issued and 118,175,598 shares outstanding as of September 30, 2025 and 128,198,185 shares issued and 119,350,001 shares outstanding as of December 31, 2024			1,282				1,282
Additional paid-in capital			496,827				502,664
Accumulated deficit			(334,677	)			(328,759	)
Treasury stock at cost, 10,022,587 shares at September 30, 2025 and 8,848,184 shares at December 31, 2024			(90,607	)			(97,100	)
Total stockholders’ equity			72,825				78,087
Total liabilities and stockholders’ equity		$	287,651			$	296,368

OPEN LENDING CORPORATION
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)

	Three Months Ended September 30,								Nine Months Ended September 30,
	2025				2024				2025				2024
Revenue
Program fees	$	13,344			$	14,161			$	43,487			$	43,306
Profit share		8,470				6,822				23,169				30,037
Claims administration and other service fees		2,355				2,493				7,216				7,605
Total revenue		24,169				23,476				73,872				80,948
Cost of services		5,318				6,127				16,911				17,590
Gross profit		18,851				17,349				56,961				63,358
Operating expenses
General and administrative		21,062				9,594				43,924				33,318
Selling and marketing		3,440				4,897				11,968				13,260
Research and development		2,050				992				6,832				3,601
Total operating expenses		26,552				15,483				62,724				50,179
Operating income (loss)		(7,701	)			1,866				(5,763	)			13,179
Interest expense		(2,432	)			(2,962	)			(7,440	)			(8,468	)
Interest income		2,363				3,221				7,220				9,278
Other income (expense), net		185				—				185				—
Income (loss) before income taxes		(7,585	)			2,125				(5,798	)			13,989
Income tax expense (benefit)		(16	)			688				120				4,563
Net income (loss)	$	(7,569	)		$	1,437			$	(5,918	)		$	9,426
Net income (loss) per common share
Basic	$	(0.06	)		$	0.01			$	(0.05	)		$	0.08
Diluted	$	(0.06	)		$	0.01			$	(0.05	)		$	0.08
Weighted average common shares outstanding
Basic		118,173				119,253				118,825				119,129
Diluted		118,173				119,481				118,825				119,428

OPEN LENDING CORPORATION
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)

	Nine Months Ended September 30,
	2025				2024
Cash flows from operating activities
Net income (loss)	$	(5,918	)		$	9,426
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Share-based compensation		5,626				6,408
Depreciation and amortization		1,757				1,281
Amortization of debt issuance costs		310				321
Non-cash operating lease cost		605				511
Deferred income taxes		—				4,499
Other		149				37
Changes in operating assets & liabilities:
Accounts receivable, net		637				50
Contract assets, net		(12,035	)			(10,594	)
Excess profit share receipts		(324	)			—
Other current and non-current assets		(3,137	)			(576	)
Accounts payable		85				(92	)
Accrued expenses		3,476				2,164
Income tax receivable, net		1,479				881
Operating lease liabilities		(587	)			(464	)
Third-party claims administration liability		853				4,286
Other current and non-current liabilities		(1,620	)			2,838
Net cash provided by (used in) operating activities		(8,644	)			20,976
Cash flows from investing activities
Purchase of property and equipment		(56	)			(161	)
Capitalized software development costs		(855	)			(2,577	)
Net cash used in investing activities		(911	)			(2,738	)
Cash flows from financing activities
Payments on term loans		(5,625	)			(2,813	)
Shares repurchased		(3,952	)			—
Shares withheld for taxes related to restricted stock units		(1,063	)			(1,147	)
Net cash used in financing activities		(10,640	)			(3,960	)
Net change in cash and cash equivalents and restricted cash		(20,195	)			14,278
Cash and cash equivalents and restricted cash at the beginning of the period		253,924				246,669
Cash and cash equivalents and restricted cash at the end of the period	$	233,729			$	260,947
Supplemental disclosure of cash flow information:
Interest paid	$	7,148			$	7,981
Income tax paid (refunded), net		(1,359	)			(817	)
Right-of-use assets obtained in exchange for lease obligations		—				592

OPEN LENDING CORPORATION
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(In thousands, except margin data)

	Three Months Ended September 30,								Nine Months Ended September 30,
	2025				2024				2025				2024
Net income (loss)	$	(7,569	)		$	1,437			$	(5,918	)		$	9,426
Non-GAAP adjustments:
Interest (income) expense, net		69				(259	)			220				(810	)
Income tax expense (benefit)		(16	)			688				120				4,563
Depreciation and amortization expense		623				494				1,757				1,281
Share-based compensation		1,446				2,186				5,626				6,408
Other non-recurring expense(1)		11,000				—				11,000				—
Total adjustments		13,122				3,109				18,723				11,442
Adjusted EBITDA	$	5,553			$	4,546			$	12,805			$	20,868
Adjusted EBITDA margin		23.0	%			19.4	%			17.3	%			25.8	%

_{⁽¹⁾ For the three and nine months ended September 30, 2025, the adjustment for other non-recurring expense includes a one-time payment of $11.0 million made pursuant to an amendment to a reseller agreement in exchange for the extinguishment of certain rights to ongoing compensation and the revision of the schedule of referral fees payable. This payment was solely in exchange for such modification of compensation rights and is not conditioned upon, nor related to, any future performance or obligations of either party.}

FAQ

What were Open Lending (LPRO) Q3 2025 total revenue and gross profit?

Q3 2025 total revenue was $24.2 million and gross profit was $18.9 million.

Why did Open Lending (LPRO) report a net loss in Q3 2025?

The company reported a $7.6 million net loss in Q3 2025 compared with $1.4 million net income in Q3 2024; the release does not attribute the loss to a single item.

How many certified loans did Open Lending (LPRO) facilitate in Q3 2025 and how does that compare year-over-year?

Open Lending facilitated 23,880 certified loans in Q3 2025 versus 27,435 in Q3 2024.

What is Open Lending's (LPRO) Q4 2025 guidance for certified loans?

The company currently expects Q4 2025 certified loans to be between 21,500 and 23,500.

What change occurred to Adjusted EBITDA reporting for Open Lending (LPRO) in 2025?

Beginning June 30, 2025, Adjusted EBITDA excludes interest income; beginning Sept 30, 2025 it also excludes certain other non-recurring expenses.

What was the Allied Solutions payment disclosed by Open Lending (LPRO)?

On August 13, 2025, Open Lending amended its reseller agreement with Allied and received a one-time $11.0 million payment.