Open Lending Reports First Quarter 2025 Financial Results

AUSTIN, Texas, May 07, 2025 (GLOBE NEWSWIRE) -- Open Lending Corporation (Nasdaq: LPRO) (the “Company” or “Open Lending”), an industry trailblazer in lending enablement and risk analytics solutions for financial institutions, today reported financial results for its first quarter ended March 31, 2025. “I believe in Open Lending’s business model, our value proposition to our customers, and the team’s ability to execute on our plan going forward,” said Jessica Buss, Chief Executive Officer of Open Lending. “We are honored to continue serving over 400 lender customers and their communities and have taken actions in an effort to further enhance our customers' experience. We believe that we have seen promising early results as we implement new ways to demonstrate how we enhance lender profitability. “We have introduced new loan measures and refined pricing in an effort to help reduce volatility in the expected profit share revenue of our future certified loans as compared to our historic vintages. Additionally, our board of directors has authorized a $25 million share repurchase program. We have a clear plan, a dedicated team, a consistent base of customers and partners, and a strong balance sheet, and we believe that we are well-positioned to generate value for all Open Lending stakeholders." Three Months Ended March 31, 2025 Highlights The Company facilitated 27,638 certified loans during the first quarter of 2025, compared to 28,189 certified loans in the first quarter of 2024.Total revenue was $24.4 million during the first quarter of 2025, compared to $30.7 million in the first quarter of 2024. The decrease in total revenue during the period includes a $7.4 million decrease in estimated profit share revenue associated with new originations, primarily driven by lower unit economics per certified loan.In addition, the first quarter of 2025 was impacted by a $0.9 million reduction in estimated profit share revenues related to business in historic vintages as compared to a $1.1 million reduction in the first quarter of 2024. Gross profit was $18.3 million during the first quarter of 2025, compared to $25.0 million in the first quarter of 2024.Net income was $0.6 million during the first quarter of 2025, compared to $5.1 million in the first quarter of 2024.Adjusted EBITDA was $5.7 million during the first quarter of 2025, compared to $12.5 million in the first quarter of 2024. Adjusted EBITDA is a non-GAAP financial measure. 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.” Second Quarter 2025 OutlookFor the second quarter of 2025, the Company currently expects total certified loans to be between 25,500 and 27,500. 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 first quarter 2025 financial results on May 7, 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) 445-7795, or for international callers (785) 424-1699. An archive of the webcast will be available at the same location on the website shortly after the call has concluded. Share Repurchase Program On May 1, 2025, the Board of Directors authorized share repurchases under a share repurchase program (the "Share Repurchase Program") allowing the Company to repurchase up to $25.0 million of the Company's outstanding common stock until May 1, 2026. Repurchases may be made at management's discretion from time to time in the open market. The Share Repurchase Program may be suspended, amended, or discontinued at any time. 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 over 20 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 StatementsThis 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, the Share Repurchase Program, market trends, consumer behavior and demand for automotive loans, as well as future financial performance under the heading "Second 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,” 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, 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 MeasuresThe 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, income tax expense, depreciation and amortization expense, and share-based compensation expense. 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 CORPORATIONConsolidated Balance Sheets(Unaudited)(In thousands, except share data) March 31, 2025 December 31, 2024Assets Current assets Cash and cash equivalents $236,226 $243,164 Restricted cash 10,621 10,760 Accounts receivable, net 5,550 5,055 Current contract assets, net 18,643 9,973 Income tax receivable 3,568 3,558 Other current assets 3,179 3,215 Total current assets 277,787 275,725 Property and equipment, net 650 729 Capitalized software development costs, net 5,398 5,386 Operating lease right-of-use assets, net 3,680 3,878 Contract assets 11,202 5,094 Other assets 5,506 5,556 Total assets $304,223 $296,368 Liabilities and stockholders’ equity Current liabilities Accounts payable $352 $953 Accrued expenses 7,598 5,166 Current portion of debt 7,500 7,500 Third-party claims administration liability 10,660 10,797 Current portion of excess profit share receipts 17,445 19,346 Other current liabilities 1,143 3,490 Total current liabilities 44,698 47,252 Long-term debt, net of deferred financing costs 130,429 132,217 Operating lease liabilities 3,061 3,273 Excess profit share receipts 39,111 28,210 Other liabilities 7,095 7,329 Total liabilities 224,394 218,281 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 119,782,899 shares outstanding as of March 31, 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 497,884 502,664 Accumulated deficit (328,142) (328,759)Treasury stock at cost, 8,415,286 shares at March 31, 2025 and 8,848,184 shares at December 31, 2024 (91,195) (97,100)Total stockholders’ equity 79,829 78,087 Total liabilities and stockholders’ equity $304,223 $296,368 OPEN LENDING CORPORATIONConsolidated Statements of Operations(Unaudited)(In thousands, except per share data) Three Months Ended March 31, 2025 2024 Revenue Program fees $15,210 $14,309 Profit share 6,730 13,882 Claims administration and other service fees 2,453 2,554 Total revenue 24,393 30,745 Cost of services 6,084 5,750 Gross profit 18,309 24,995 Operating expenses General and administrative 10,898 11,979 Selling and marketing 4,382 4,214 Research and development 2,267 1,479 Total operating expenses 17,547 17,672 Operating income 762 7,323 Interest expense (2,589) (2,770)Interest income 2,500 2,971 Income before income taxes 673 7,524 Income tax expense 56 2,437 Net income $617 $5,087 Net income per common share Basic $0.01 $0.04 Diluted $0.01 $0.04 Weighted average common shares outstanding Basic 119,451 118,926 Diluted 119,629 119,416 OPEN LENDING CORPORATIONConsolidated Statements of Cash Flows(Unaudited)(In thousands) Three Months Ended March 31, 2025 2024 Cash flows from operating activities Net income $617 $5,087 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Share-based compensation 1,846 1,854 Depreciation and amortization 544 372 Amortization of debt issuance costs 103 107 Non-cash operating lease cost 198 162 Deferred income taxes — 2,154 Other 144 41 Changes in operating assets & liabilities: Accounts receivable, net (495) (1,135)Contract assets, net (14,778) (2,614)Excess profit share receipts 9,000 — Other current and non-current assets 70 188 Accounts payable (600) 66 Accrued expenses 2,454 (189)Income tax receivable, net 39 3,358 Operating lease liabilities (185) (152)Third-party claims administration liability (137) 1,662 Other current and non-current liabilities (2,658) 45 Net cash provided by (used in) operating activities (3,838) 11,006 Cash flows from investing activities Purchase of property and equipment (45) — Capitalized software development costs (561) (642)Net cash used in investing activities (606) (642)Cash flows from financing activities Payments on term loans (1,875) (938)Shares withheld for taxes related to restricted stock units (758) (1,021)Net cash used in financing activities (2,633) (1,959)Net change in cash and cash equivalents and restricted cash (7,077) 8,405 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 $246,847 $255,074 Supplemental disclosure of cash flow information: Interest paid $2,489 $3,541 Income tax paid (refunded), net 16 (3,075) OPEN LENDING CORPORATIONReconciliation of GAAP to Non-GAAP Financial Measures(Unaudited)(In thousands, except margin data) Three Months Ended March 31, 2025 2024 Net income $617 $5,087 Non-GAAP adjustments: Interest expense 2,589 2,770 Income tax expense 56 2,437 Depreciation and amortization expense 544 372 Share-based compensation 1,846 1,854 Total adjustments 5,035 7,433 Adjusted EBITDA $5,652 $12,520 Total revenue $24,393 $30,745 Adjusted EBITDA margin 23% 41%

Open Lending Reports First Quarter 2025 Financial Results

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