AUSTIN, Texas, March 31, 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 announced that its Board of Directors (the "Board") has appointed Jessica Buss as Chief Executive Officer, effective immediately. Chuck Jehl will continue to serve as Interim Chief Financial Officer and as a member of the Board. The Board also has appointed Michelle Glasl as Ch ...

AUSTIN, Texas, March 27, 2025 (GLOBE NEWSWIRE) -- Open Lending Corporation (NASDAQ: LPRO) (“Open Lending” or the “Company”), an industry trailblazer in automotive lending enablement and risk analytics solutions for financial institutions, today announced that the Company plans to issue a press release containing results for the fourth quarter and full year 2024 after the market closes on Monday, March 31, 2025. The Company plans to host a conference call to discuss these results on Tuesday, April 1, 2025 at ...

Core Viewpoint - Open Lending Corp. is under investigation for potential securities law violations following a significant decline in its stock price due to a delay in filing its annual Form 10-K and postponement of its Q4 and full-year 2024 earnings release [2][4]. Group 1: Company Performance - Shares of Open Lending Corp. fell by 11% in intraday trading after a previous decline of 9.28% on March 17, 2025 [2]. - The company cited the need for additional time to finalize its financial statements, raising concerns about its internal controls and financial reporting [2]. Group 2: Legal Investigation - Block & Leviton is investigating Open Lending Corp. for potential securities law violations and may file an action to recover losses for affected investors [4]. - Investors who have lost money in Open Lending Corp. are encouraged to contact Block & Leviton for assistance [3][5]. Group 3: Whistleblower Information - Individuals with non-public information about Open Lending Corp. are encouraged to assist in the investigation or file a report with the SEC under the whistleblower program, potentially receiving rewards of up to 30% of any successful recovery [6]. Group 4: Firm Reputation - Block & Leviton is recognized as a leading securities class action firm, having recovered billions for defrauded investors and representing many top institutional investors [7].

AUSTIN, Texas, March 17, 2025 (GLOBE NEWSWIRE) -- Open Lending Corporation (NASDAQ:LPRO) ("Open Lending" or the "Company") today announced that it is postponing its earnings release and conference call, previously scheduled for March 17, 2025. The Company also announced that it filed a Form 12b-25, Notification of Late Filing, with the U.S. Securities and Exchange Commission ("SEC") related to the Company's Annual Report on Form 10-K for the year ended December 31, 2024 (the "2024 Form 10-K") in order to al ...

Core Viewpoint - Open Lending Corporation is set to announce its fourth quarter and full year 2024 financial results on March 17, 2025, with a conference call scheduled for the same day at 5:00 PM ET [1]. Group 1: Financial Results Announcement - The company will issue a press release detailing the financial results after market close on March 17, 2025 [1]. - A live webcast of the conference call will be available on the company's investor relations website [2]. - The conference call can be accessed via phone for both domestic and international callers [2]. Group 2: Company Overview - Open Lending specializes in loan analytics, risk-based pricing, risk modeling, and default insurance for auto lenders in the United States [3]. - The company has over 20 years of experience in empowering financial institutions to develop profitable auto loan portfolios with reduced risk [3].

Company Overview - Open Lending (LPRO) shares increased by 11.7% to $6.30 in the last trading session, following a higher-than-average trading volume, contrasting with a 5.5% loss over the previous four weeks [1] - The stock has rallied for four consecutive trading sessions, driven by an upgrade from Needham analyst Kyle Peterson, who raised the rating from Hold to Buy due to stabilization in the auto lending market [2] Earnings Expectations - Open Lending is projected to report quarterly earnings of $0.02 per share, reflecting a year-over-year increase of 150%, with revenues expected to reach $23.97 million, a 60.4% increase from the same quarter last year [3] - The consensus EPS estimate for Open Lending has remained unchanged over the past 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - Open Lending operates within the Zacks Financial - Consumer Loans industry, where Mr Cooper (COOP) has seen a 0.5% decline in its stock price, closing at $105.36, but has returned 10.3% over the past month [4] - Mr Cooper's consensus EPS estimate has decreased by 0.5% to $2.58, representing a year-over-year change of 50.9%, and currently holds a Zacks Rank of 4 (Sell) [5]

Core Viewpoint - Open Lending Corporation announced the retirement of co-founder John J. Flynn from the Board of Directors, effective January 16, 2025, while he will continue to serve as a consultant until the end of 2025 [1][2]. Group 1: Leadership Transition - John J. Flynn has decided to step down from the Board, expressing confidence in the leadership of CEO Chuck Jehl [2]. - Flynn has been a member of the Board since 2000 and served as CEO from April 2000 until October 2022, contributing significantly to the company's mission and growth [2][3]. Group 2: Company Mission and Impact - Open Lending was founded over 20 years ago with the mission to make vehicle ownership more accessible to applicants in the near- and non-prime credit spectrum [2]. - The company provides loan analytics, risk-based pricing, risk modeling, and default insurance to auto lenders across the United States, empowering financial institutions to create profitable auto loan portfolios [4]. Group 3: Acknowledgment of Contributions - The Board Chairman, Jessica Buss, and CEO Chuck Jehl acknowledged Flynn's invaluable contributions and leadership, emphasizing his role in establishing a strong foundation for growth and innovation in the automotive lending industry [3].

Core Insights - Open Lending Corporation has entered into a partnership with a captive finance company of a major automaker to utilize its Lenders Protection™ program, marking the third such partnership with an automotive captive finance company [1][2] - The partnership aims to expand lending to near- and non-prime consumers, leveraging Open Lending's automated decisioning and default insurance coverage [1][2] - The implementation of this partnership is nearing completion, with a targeted rollout scheduled for early 2025 [2] Company Overview - Open Lending specializes in lending enablement and risk analytics solutions for financial institutions, providing loan analytics, risk-based pricing, risk modeling, and default insurance to auto lenders across the United States [3] - The company has over 20 years of experience in empowering financial institutions to create profitable auto loan portfolios with reduced risk and increased rewards [3]

Financial Data and Key Metrics Changes - In Q3 2024, the company certified 27,435 loans, down from 29,959 loans in Q3 2023 [39] - Total revenue for Q3 2024 was $23.5 million, a decrease from $26 million in Q3 2023, impacted by a $7 million negative change in profit share estimate [40] - Adjusted EBITDA for Q3 2024 was $7.8 million, down from $10.3 million in Q3 2023 [46] - Operating income decreased to $1.9 million in Q3 2024 from $4.5 million in Q3 2023 [45] Business Line Data and Key Metrics Changes - Program fee revenues in Q3 2024 were $14.2 million, profit share revenues were $6.8 million, and claims administration fees and other revenue were $2.5 million [41] - Profit share revenue associated with new originations was $13.8 million in Q3 2024, down from $16.1 million in Q3 2023 [43] Market Data and Key Metrics Changes - New vehicle inventory levels stabilized at 2.8 million units, up 25% year-over-year, while used vehicle inventory stabilized at approximately 2.2 million units [16] - Average transaction prices for new vehicles decreased by 0.4% year-over-year, and used vehicle average list prices decreased by 5% [17] - Loan-to-share ratios in the credit union industry declined to 84.2%, down from a recent high of 85.2% [23] Company Strategy and Development Direction - The company is focused on driving new customer acquisitions and certified loan growth, optimizing results from lenders and insurance partners, and making targeted investments to improve customer experience [7] - The company signed 21 new customers in Q3 2024, a record for new customer acquisitions, indicating the effectiveness of the Lenders Protection program [27] - The company is enhancing technology to automate processes and improve the experience for lenders and borrowers [31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to growth, citing improvements in market conditions and stabilization of delinquency rates [51] - The company anticipates that profit share revenue performance will become less volatile as they navigate past lower-performing vintages [10] - Management acknowledged ongoing challenges in the auto lending market but remains committed to optimizing unit economics and minimizing volatility [14] Other Important Information - The company exited Q3 2024 with total assets of $395.7 million, including $250.2 million in unrestricted cash [47] - Fourth quarter 2024 guidance includes total certified loans expected to be between 20,000 and 24,000, total revenue between $22 million and $26 million, and adjusted EBITDA between $7 million and $10 million [50] Q&A Session Summary Question: Can you elaborate on the tightening of underwriting standards and its expected impact on approval rates? - Management indicated that tightening underwriting standards would likely result in a 4% decrease in approval rates, impacting Q4 volume [58] Question: What is the demand for alternative sources of capital from lending partners? - Management noted that they are exploring ways to assist customers with capital market transactions, which could help improve lending capacity [61] Question: What is the outlook on profit share revisions and peak claims? - Management acknowledged that while delinquencies are starting to lower, the peak claims period for certain vintages may extend longer than typical cycles [65] Question: Where is the company seeing the most success in customer signings? - Management reported that all 21 new customers signed in Q3 2024 were credit unions, with a focus on larger institutions [66] Question: Is there a possibility of resuming annual guidance? - Management expressed hope for stabilizing operations and returning to a point where annual guidance could be provided, aiming for growth in 2025 [76]

Financial Performance - Total revenue for Q3 2024 was $23.5 million, down 9.6% from $26.0 million in Q3 2023[49] - Operating income for Q3 2024 was $1.9 million, a decline of 57.8% compared to $4.5 million in Q3 2023[49] - Net income for Q3 2024 was $1.4 million, down 53.3% from $3.0 million in Q3 2023[49] - Adjusted EBITDA for Q3 2024 was $7.8 million, a decrease of 24.3% from $10.3 million in Q3 2023[49] - Total revenue decreased by $2.5 million, or 10%, for the three months ended September 30, 2024, compared to the same period in 2023, driven by a $1.2 million decrease in profit share revenue and a $1.3 million decrease in program fees[69] - Total revenue decreased by $21.6 million, or 21%, for the nine months ended September 30, 2024, compared to the same period in 2023, driven by a $14.4 million decrease in profit share revenue[69] - Total revenue for the three months ended September 30, 2024, was $23.476 million, a decrease from $26.006 million in the same period in 2023[86] - Total revenue for the nine months ended September 30, 2024, was $80.948 million, down from $102.521 million in the same period in 2023[86] Loan and Origination Metrics - Open Lending Corporation facilitated 27,435 certified loans in Q3 2024, a decrease of 8.4% from 29,959 in Q3 2023[49] - The average loan size per certified loan in Q3 2024 was $28,156, down from $29,489 in Q3 2023[51] - Certified loans totaled 27,435 for the three months ended September 30, 2024, down 8% from 29,959 in the same period in 2023[68] - Profit share revenue decreased by $1.2 million, or 15%, during the three months ended September 30, 2024, primarily due to a 14% decrease in profit share associated with new certified loan originations[69] - Profit share revenue decreased by $14.4 million, or 32%, during the nine months ended September 30, 2024, primarily due to a 13% decrease in certified loans[70] Revenue Sources - Earned premiums for Q3 2024 were $83.7 million, slightly down from $85.6 million in Q3 2023[57] - Program fees revenue decreased by $1.3 million, or 8%, during the three months ended September 30, 2024, due to an 8% decrease in certified loan volume[69] - Claims administration and other service fees revenue decreased by $0.1 million, or 3%, for the three months ended September 30, 2024, due to a 2% decrease in total earned premiums[70] - The company's largest insurance partner accounted for 35% of total revenue in Q3 2024, highlighting a concentration risk[62] - The company relies on three largest insurance partners for a significant portion of its profit share and claims administration service fee revenue[93] Income and Expenses - Gross profit decreased by $3.3 million, or 16%, for the three months ended September 30, 2024, compared to the same period in 2023, primarily due to decreases in anticipated profit share and program fees[71] - Interest expense increased by $0.2 million, or 6%, for the three months ended September 30, 2024, compared to the same period in 2023[74] - Income tax expense decreased by $0.8 million, or 55%, during the three months ended September 30, 2024, compared to the same period in 2023, primarily due to a decrease in income before income taxes[76] - General and administrative expenses decreased by $0.3 million, or 3%, during the three months ended September 30, 2024, compared to the same period in 2023[73] - Research and development expenses decreased by $0.7 million, or 42%, during the three months ended September 30, 2024, compared to the same period in 2023[73] Cash Flow and Debt - Net cash provided by operating activities decreased by $44.9 million for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to decreased cash collections of $58.8 million[79] - The company had $141.5 million outstanding under its Term Loan due 2027 as of September 30, 2024[82] - The company had outstanding amounts of $142.5 million under the Term Loan due 2027 as of September 30, 2024[94] Share Repurchase - The company repurchased 5,233,065 shares at an average price of $7.13 for a total of $37.3 million during the year ended December 31, 2023[83] Market Conditions and Risk Management - The near-prime and non-prime automotive loan origination market is estimated at $270 billion annually, with the company currently serving approximately 1% of this market[47] - The company has established policies to manage market risks associated with economic conditions and consumer spending levels[92] Internal Controls - There were no changes in internal control over financial reporting that materially affected the company's financial reporting during the period covered by this Quarterly Report[97]