PART I. Financial Information [Condensed Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited condensed consolidated financial statements for Q1 2025, showing a decline in total revenue to $24.4 million and net income to $0.6 million, primarily due to lower profit share revenue [Key Financial Highlights (Q1 2025 vs Q1 2024)](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $24.4 million | $30.7 million | | Operating Income | $0.8 million | $7.3 million | | Net Income | $0.6 million | $5.1 million | | Diluted EPS | $0.01 | $0.04 | | Net Cash (used in) provided by Operating Activities | ($3.8 million) | $11.0 million | - Total assets increased to **$304.2 million** as of March 31, 2025, from **$296.4 million** at December 31, 2024, while total liabilities also increased to **$224.4 million** from **$218.3 million** over the same period[12](index=12&type=chunk) - A shareholder class action lawsuit was filed against the company in May 2025[67](index=67&type=chunk) - On May 1, 2025, the Board of Directors authorized a new share repurchase program for up to **$25.0 million** of the company's common stock[71](index=71&type=chunk) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets reached $304.2 million and total liabilities $224.4 million, with notable increases in contract assets and excess profit share receipts liability Balance Sheet Summary (in thousands) | Account | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$304,223** | **$296,368** | | Cash and cash equivalents | $236,226 | $243,164 | | Total contract assets, net | $29,845 | $15,067 | | **Total Liabilities** | **$224,394** | **$218,281** | | Total debt, net | $137,929 | $139,717 | | Total excess profit share receipts | $56,556 | $47,556 | | **Total Stockholders' Equity** | **$79,829** | **$78,087** | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2025, total revenue decreased 21% to $24.4 million, primarily due to a 52% drop in profit share revenue, leading to a sharp decline in operating and net income Statement of Operations (in thousands, except per share data) | Metric | Three Months Ended Mar 31, 2025 (in thousands) | Three Months Ended Mar 31, 2024 (in thousands) | | :--- | :--- | :--- | | Total Revenue | $24,393 | $30,745 | | - Program fees | $15,210 | $14,309 | | - Profit share | $6,730 | $13,882 | | Gross Profit | $18,309 | $24,995 | | Operating Income | $762 | $7,323 | | Net Income | $617 | $5,087 | | Diluted EPS | $0.01 | $0.04 | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Stockholders' equity increased from $78.1 million to $79.8 million, primarily driven by net income and share-based compensation, partially offset by tax withholdings - Total stockholders' equity increased by **$1.7 million** during the quarter, from **$78.1 million** to **$79.8 million**[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company reported a net cash outflow from operating activities of $3.8 million in Q1 2025, a significant negative shift from the prior year, primarily due to lower net income and increased contract assets Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended Mar 31, 2025 (in thousands) | Three Months Ended Mar 31, 2024 (in thousands) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(3,838) | $11,006 | | Net cash used in investing activities | $(606) | $(642) | | Net cash used in financing activities | $(2,633) | $(1,959) | | **Net change in cash** | **$(7,077)** | **$8,405** | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) The notes detail accounting policies for profit share revenue, debt structure, a pending shareholder class action lawsuit, and a new $25 million share repurchase program - Profit share revenue recognition relies on a forecast model projecting loan performance. In Q1 2025, this resulted in a **$0.9 million** reduction in estimated revenue from performance obligations satisfied in previous periods[33](index=33&type=chunk)[35](index=35&type=chunk) - As of March 31, 2025, the company had **$138.75 million** outstanding on its Term Loan due 2027 and was in compliance with all debt covenants[50](index=50&type=chunk)[55](index=55&type=chunk) - A shareholder class action lawsuit was filed in May 2025, alleging misleading statements about the company's business and prospects. The company cannot predict the outcome[67](index=67&type=chunk)[70](index=70&type=chunk) - A new share repurchase program was authorized on May 1, 2025, allowing for the repurchase of up to **$25.0 million** of common stock[71](index=71&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant downturn in Q1 2025 financial performance, with total revenue decreasing 21% to $24.4 million and operating income falling 90% to $0.8 million, primarily due to a 52% drop in profit share revenue [Key Performance Indicators (Q1 2025 vs Q1 2024)](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Certified loans | 27,638 | 28,189 | (2)% | | Average program fees | $550 | $508 | 8% | | Total Revenue | $24.4M | $30.7M | (21)% | | Operating Income | $0.8M | $7.3M | (90)% | | Adjusted EBITDA | $5.7M | $12.5M | (55)% | - The primary driver of the revenue and profit decline was a **52%** decrease in profit share revenue, caused by a drop in anticipated profit per loan from **$533** in Q1 2024 to **$278** in Q1 2025[111](index=111&type=chunk)[112](index=112&type=chunk) - The company authorized a new **$25.0 million** share repurchase program on May 1, 2025[89](index=89&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) A detailed analysis of Q1 2025 versus Q1 2024 reveals a $6.4 million (21%) revenue decrease, primarily driven by a 52% drop in profit share revenue due to lower anticipated profit per new loan Revenue Breakdown (in thousands) | Revenue Stream | Q1 2025 (in thousands) | Q1 2024 (in thousands) | $ Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Program fees | $15,210 | $14,309 | $901 | 6% | | Profit share | $6,730 | $13,882 | $(7,152) | (52)% | | Claims admin & other | $2,453 | $2,554 | $(101) | (4)% | | **Total Revenue** | **$24,393** | **$30,745** | **$(6,352)** | **(21)%** | - The average anticipated profit share per new loan decreased from **$533** in Q1 2024 to **$278** in Q1 2025 due to revised estimates of loan default rates, prepayment rates, and loss severity[112](index=112&type=chunk) - Gross margin contracted from **81%** in Q1 2024 to **75%** in Q1 2025[115](index=115&type=chunk) - Operating margin fell drastically from **24%** in Q1 2024 to **3%** in Q1 2025[117](index=117&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity position shifted to a net cash outflow from operating activities of $3.8 million in Q1 2025, a $14.8 million decrease from the prior year, primarily due to reduced revenues and increased contract assets - Net cash used in operating activities was **$3.8 million**, a **$14.8 million** decrease from the prior year, primarily due to reduced revenues and a significant increase in contract assets[125](index=125&type=chunk)[126](index=126&type=chunk) - As of March 31, 2025, the company had **$137.9 million** outstanding under its Term Loan due 2027 and no amounts outstanding under its Revolving Credit Facility[131](index=131&type=chunk) [Non-GAAP Financial Measures](index=33&type=section&id=Non-GAAP%20Financial%20Measures) Management uses Adjusted EBITDA to evaluate operating performance, which decreased 55% to $5.7 million in Q1 2025, with the margin contracting to 23% from 41% in the prior-year period Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Line Item | Three Months Ended Mar 31, 2025 (in thousands) | Three Months Ended Mar 31, 2024 (in thousands) | | :--- | :--- | :--- | | Net income | $617 | $5,087 | | Interest expense | $2,589 | $2,770 | | Income tax expense | $56 | $2,437 | | Depreciation and amortization | $544 | $372 | | Share-based compensation | $1,846 | $1,854 | | **Adjusted EBITDA** | **$5,652** | **$12,520** | [Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to market risks including general economic conditions, concentration risk with insurance partners, and interest rate risk on its $138.8 million variable-rate term loan - The company faces concentration risk, relying on three active insurance partners for a significant portion of its profit share and claims administration revenue[141](index=141&type=chunk) - The company is exposed to interest rate risk through its variable-rate Term Loan, which had an outstanding balance of **$138.8 million** as of March 31, 2025[142](index=142&type=chunk)[143](index=143&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting identified during the quarter - Management concluded that disclosure controls and procedures were effective as of the end of the reporting period[144](index=144&type=chunk) - There were no material changes in the company's internal control over financial reporting during the quarter[145](index=145&type=chunk) PART II. Other Information [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) A shareholder class action lawsuit was filed in May 2025 against the company and former CEOs, alleging misleading statements regarding risk models, profit share revenue, and loan vintage performance - A shareholder class action lawsuit was filed in May 2025 against the Company and three former CEOs in the U.S. District Court for the Western District of Texas[148](index=148&type=chunk) - The complaint alleges misrepresentation of the company's risk-based pricing models, misleading statements on profit share revenue, and failure to disclose underperformance of recent loan vintages[148](index=148&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) This section updates the company's risk factors, emphasizing increased litigation and regulatory action risks, citing the recent shareholder class action lawsuit as a key example - The company highlights its subjection to increased risks of litigation and regulatory actions due to the highly regulated nature of the financial services industry[150](index=150&type=chunk) - The May 2025 shareholder class action lawsuit is cited as a materialization of this risk, which could result in substantial costs and divert management's attention[152](index=152&type=chunk)[153](index=153&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, the company repurchased 175,142 shares for tax withholding, and on May 1, 2025, authorized a new $25.0 million share repurchase program Share Repurchases (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share ($) | | :--- | :--- | :--- | | Jan 1 - 31, 2025 | 13,119 | $5.84 | | Feb 1 - 28, 2025 | — | $— | | Mar 1 - 31, 2025 | 162,023 | $4.20 | | **Total** | **175,142** | **N/A** | - On May 1, 2025, the Board authorized a new share repurchase program for up to **$25.0 million**, effective through May 1, 2026[157](index=157&type=chunk) [Defaults Upon Senior Securities](index=37&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the reporting period - None[158](index=158&type=chunk) [Mine Safety Disclosures](index=37&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - None[159](index=159&type=chunk) [Other Information](index=38&type=section&id=Item%205.%20Other%20Information) The company disclosed that no director or officer adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q1 2025 - No director or officer of the Company adopted, modified or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the first quarter of 2025[160](index=160&type=chunk) [Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the 10-Q report, including CEO and CFO certifications and various employment and service agreements - The report includes CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act[161](index=161&type=chunk) - Financial statements are provided in iXBRL format[161](index=161&type=chunk)

NEW YORK, May 08, 2025 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies investors in Open Lending Corporation ("Open Lending Corporation" or the "Company") (NASDAQ: LPRO) of a class action securities lawsuit. CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of Open Lending Corporation investors who were adversely affected by alleged securities fraud between February 24, 2022 and March 31, 2025. Follow the link below to get more information and be contacted by a member of our team: https://z ...

For the quarter ended March 2025, Open Lending (LPRO) reported revenue of $24.39 million, down 20.7% over the same period last year. EPS came in at $0.01, compared to $0.04 in the year-ago quarter. The reported revenue represents a surprise of -1.49% over the Zacks Consensus Estimate of $24.76 million. With the consensus EPS estimate being $0.01, the company has not delivered EPS surprise. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectatio ...

Core Viewpoint - Open Lending (LPRO) reported quarterly earnings of $0.01 per share, matching the Zacks Consensus Estimate, but down from $0.04 per share a year ago [1] - The company posted revenues of $24.39 million for the quarter, missing the Zacks Consensus Estimate by 1.49%, and down from $30.75 million year-over-year [2] Financial Performance - Open Lending's earnings surprise was significant, with a prior expectation of $0.02 per share turning into a loss of $0.49, resulting in a surprise of -2,550% [1] - The company has not surpassed consensus EPS estimates over the last four quarters [1] - Revenue performance has also been disappointing, with the company failing to beat consensus revenue estimates in the last four quarters [2] Stock Performance - Open Lending shares have declined approximately 77.2% since the beginning of the year, contrasting with the S&P 500's decline of -4.7% [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $24.54 million, and $0.07 on revenues of $98.8 million for the current fiscal year [7] - The trend for earnings estimate revisions is currently unfavorable, which may impact future stock movements [6] Industry Context - The Financial - Consumer Loans industry, to which Open Lending belongs, is ranked in the top 31% of over 250 Zacks industries, suggesting a relatively strong industry performance [8]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $24.4 million, which includes a $900,000 reduction in estimated profit share revenue due to changes in estimates related to historical vintages [22][26] - Net income for Q1 2025 was $600,000, down from $5.1 million in Q1 2024, with diluted income per share of $0.01 compared to $0.04 in the prior year [26] - Adjusted EBITDA for Q1 2025 was $5.7 million, compared to $12.5 million in Q1 2024 [26] Business Line Data and Key Metrics Changes - The company facilitated 27,638 certified loans in Q1 2025, a slight decrease from 28,189 certified loans in Q1 2024 [21] - Profit share revenue associated with new originations was $7.7 million in Q1 2025, down from $15 million in Q1 2024, reflecting a decrease in unit economics per certified loan [24] Market Data and Key Metrics Changes - The credit union environment is improving, with loan-to-share ratios decreasing to 81.8% and share growth increasing by 40% quarter-over-quarter to 6.4% [33] - There was a 15% increase in originations from credit unions in Q1 2025, indicating a positive trend in the market [36] Company Strategy and Development Direction - The company aims to increase profitability of its insurance offering while reducing volatility in profit share revenue through improved risk segmentation and dynamic pricing [11] - A $25 million stock repurchase program has been authorized, reflecting the belief that the company's stock is undervalued [18] - The company is focused on operational excellence, including a 10% reduction in headcount and streamlining costs while investing in key insurance roles [13][14] Management's Comments on Operating Environment and Future Outlook - Management is closely monitoring the macro environment, including potential impacts from tariffs and used car prices, and believes they are better positioned to react to changes [32][33] - The outlook for Q2 2025 expects total certified loans to be between $25.5 million and $27.5 million [21] Other Important Information - The company has a strong balance sheet with $236 million in unrestricted cash, providing financial flexibility [9][28] - The management team is committed to transparency regarding profit share components and has made significant progress in addressing customer retention [17][28] Q&A Session Summary Question: How do tariffs affect deal structuring? - Management views the increase in the Manheim index positively, as it may increase collateral values, and is implementing a 10% rate increase in anticipation of rising costs [32][33] Question: What drove the $900,000 revision in the CIA score? - The revision was primarily driven by claims and frequency from the 2021 and 2022 vintages, with expectations of variances quarter to quarter [44][45] Question: How conservative is the profit share estimate? - The profit share is booked at a 72.5% loss ratio, with expectations that it could perform closer to a 65% loss ratio based on pricing actions and book mix shifts [46][48]

Q1 2025 Q1 2025 Financial Highlights Q1 2025 Q1 2024 Revenue $24.4 million $30.7 million Adj. EBITDA1 $5.7 million $12.5 million Total Certs 27,638 28,189 (1) See reconciliation of GAAP to non-GAAP financial measures on page 5 2 23, 159, 221 149, 201, 61 20, 83, 150 Earnings Supplement 3, 102, 170 146, 192, 219 166, 166, 166 Key Performance Indicators | | | | Three Months Ended March 31, | | | --- | --- | --- | --- | --- | | | | 2025 | | 2024 | | Certs | | | | | | Credit Union & Bank | | 24,215 | | 21,078 | ...

Exhibit 99.1 Open Lending Reports First Quarter 2025 Financial Results AUSTIN, Texas, May 7, 2025 – 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 Jessi ...

Core Insights - Open Lending Corporation reported its financial results for the first quarter ended March 31, 2025, highlighting a decrease in total revenue and net income compared to the same period in 2024 [1][9]. Financial Performance - The company facilitated 27,638 certified loans in Q1 2025, a slight decrease from 28,189 certified loans in Q1 2024 [9]. - Total revenue for Q1 2025 was $24.4 million, down from $30.7 million in Q1 2024, primarily due to a $7.4 million decrease in estimated profit share revenue from new originations [9]. - Gross profit decreased to $18.3 million in Q1 2025 from $25.0 million in Q1 2024 [9]. - Net income for Q1 2025 was $0.6 million, compared to $5.1 million in Q1 2024 [9]. - Adjusted EBITDA was $5.7 million in Q1 2025, down from $12.5 million in Q1 2024, with an adjusted EBITDA margin of 23% compared to 41% in the previous year [9][23]. Strategic Initiatives - The CEO expressed confidence in the company's business model and its ability to enhance lender profitability through new loan measures and refined pricing strategies [2][3]. - The Board of Directors authorized a $25 million share repurchase program, allowing the company to repurchase its common stock until May 1, 2026 [3][8]. Outlook - For the second quarter of 2025, the company expects total certified loans to be between 25,500 and 27,500 [5].

NEW YORK, May 07, 2025 (GLOBE NEWSWIRE) -- The Gross Law Firm issues the following notice to shareholders of Open Lending Corporation (NASDAQ: LPRO). Shareholders who purchased shares of LPRO during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/securities/open-lending-corporation-loss-submission-form/?id=147130&from=3 CLASS PERI ...

Core Viewpoint - Open Lending Corporation is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934, with claims of misleading statements regarding its financial performance and risk analytics solutions [1][3]. Company Overview - Open Lending provides lending enablement and risk analytics solutions to credit unions, regional banks, finance companies, and captive finance companies of automakers [2]. Allegations - The lawsuit alleges that Open Lending misrepresented the capabilities of its risk-based pricing model and issued materially misleading statements regarding its profit share revenue [3]. - It is claimed that Open Lending failed to disclose that its 2021 and 2022 vintage loans had significantly decreased in value compared to their outstanding loan balances [3]. - The underperformance of Open Lending's 2023 and 2024 vintage loans was also allegedly misrepresented [3]. Financial Disclosures - On March 17, 2025, Open Lending announced it would be unable to timely file its Annual Report for 2024, leading to a stock price drop of over 9% [4]. - The financial results for Q4 and full year 2024 revealed a quarterly revenue of negative $56.9 million, attributed to an $81.3 million reduction in estimated profit share revenues due to heightened delinquencies and defaults on loans from 2021 to 2024 [5]. - Open Lending reported a net loss of $144 million, impacted by an $86.1 million valuation allowance on deferred tax assets, which increased its income tax expense [5]. - Following these disclosures, Open Lending's stock price fell nearly 58% [5]. Legal Process - Investors who purchased Open Lending securities during the class period can seek appointment as lead plaintiff in the class action lawsuit, representing the interests of all class members [6]. Law Firm Background - Robbins Geller Rudman & Dowd LLP is a leading law firm in securities fraud and shareholder litigation, having recovered over $2.5 billion for investors in 2024 alone [7].