Core Viewpoint - Opendoor Technologies Inc. has successfully completed a transaction involving the exchange of its 2026 Convertible Senior Notes for new 2030 Convertible Senior Notes, raising $325 million in total, which includes $75.3 million in cash to strengthen its balance sheet and support its mission in the residential real estate market [1][2]. Group 1: Transaction Details - The company issued $325 million in 2030 Convertible Senior Notes, which includes approximately $245.8 million exchanged for 2026 Notes and $79.2 million raised in cash [1]. - The 2030 Notes have a 7.000% annual interest rate and will mature on May 15, 2030, unless converted or repurchased earlier [2][3]. - The gross proceeds from the cash subscription are expected to be around $75.3 million, intended for general corporate purposes [2]. Group 2: Conversion and Redemption Features - The initial conversion rate for the 2030 Notes is set at 637.1050 shares of common stock per $1,000 principal amount, equating to an initial conversion price of approximately $1.57 per share, representing an 80% premium over the last reported share price of $0.872 [4]. - Holders of the 2030 Notes can require the company to repurchase their notes at 100% of the principal amount upon a fundamental change [5]. - The company can redeem the 2030 Notes starting May 22, 2028, if the stock price exceeds 130% of the conversion price for a specified period [5]. Group 3: Advisory and Additional Information - J. Wood Capital Advisors LLC acted as the advisor for the transaction [6]. - For further details regarding the transaction, the company has filed a Current Report on Form 8-K with the SEC [6].

Core Viewpoint - Opendoor Technologies is facing significant financial challenges, as evidenced by its recent decision to refinance convertible debt and take on new debt, indicating struggles to achieve profitability [1][4]. Group 1: Debt Refinancing Details - The company is refinancing $245.8 million in 2026 notes with new notes due in 2030, carrying an interest rate of 7% [2]. - Additionally, Opendoor is raising $79.2 million in new debt at the same interest rate of 7% [2]. Group 2: Conversion and Market Impact - The conversion price for the new debt is set at $1.57 per share, representing an 80% premium to the closing price prior to the announcement, which could lead to significant dilution if bondholders convert [3]. - Opendoor's current market capitalization stands at $515.8 million, highlighting the potential impact of dilution on shareholder value [3]. Group 3: Financial Position and Future Outlook - The company ended the first quarter with $559 million in cash but has reported a substantial cash burn rate, losing $696 million in operating cash flow over the last four quarters [5]. - While the refinancing may provide some financial flexibility, it underscores the company's weak financial position and the increasing difficulty in achieving profitability, especially in a challenging housing market [4].

Company Performance - Opendoor Technologies Inc. reported a quarterly loss of $0.09 per share, better than the Zacks Consensus Estimate of a loss of $0.11, and an improvement from a loss of $0.12 per share a year ago, representing an earnings surprise of 18.18% [1] - The company posted revenues of $1.15 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 8.48%, although this is a decrease from year-ago revenues of $1.18 billion [2] - Over the last four quarters, Opendoor has exceeded consensus EPS estimates four times and has also topped consensus revenue estimates four times [2] Stock Performance and Outlook - Opendoor Technologies shares have declined approximately 53.8% since the beginning of the year, contrasting with the S&P 500's decline of 3.9% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.08 on revenues of $1.39 billion, and for the current fiscal year, it is -$0.31 on revenues of $5.56 billion [7] Industry Context - The Internet - Software industry, to which Opendoor belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - The company reported revenue of $1.2 billion in Q1 2025, roughly in line with the same quarter in 2024, with 2,946 homes sold [18] - Acquisition volumes increased by 4% year-over-year, with 3,609 homes purchased in Q1 2025 [18] - Contribution profit was $54 million in Q1 2025, down from $57 million in Q1 2024, resulting in a contribution margin of 4.7% [19] - Adjusted EBITDA loss improved to $30 million in Q1 2025 from a loss of $50 million in Q1 2024, driven by reduced operating expenses [19] - Fixed operating expenses decreased by $19 million, or 33%, compared to the previous year [15] Business Line Data and Key Metrics Changes - The company is focusing on enhancing its product flow and pricing models to improve conversion rates despite higher spreads [19] - The strategy includes maintaining pricing discipline and improving conversion through better pricing models and marketing investments [12][13] Market Data and Key Metrics Changes - The housing market is experiencing challenges, with mortgage rates exceeding 7%, clearance rates down nearly 25% year-over-year, and delistings up over 30% [6][7] - The company anticipates continued headwinds in the housing market, impacting performance in the near term [21] Company Strategy and Development Direction - The company aims to drive towards profitability while enhancing product experience and leadership position in the residential real estate market [8] - A new strategy involves expanding partnerships with agents to provide customers with more selling options, including cash offers and traditional listings [9][10] - The company is piloting a new experience in select markets to improve conversion rates and customer satisfaction [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging macroeconomic environment and the need for a cautious approach due to consumer hesitation [24] - The outlook for Q2 2025 includes expected revenue between $1.45 billion and $1.525 billion, with a contribution profit of $65 million to $75 million [21] - The company expects to see a decline in revenue year-over-year in the latter half of the year due to a slowdown in acquisitions [24] Other Important Information - The company ended the quarter with 7,080 homes in inventory, valued at $2.4 billion, a 24% increase from the prior year [20] - Total capital at quarter-end was $1 billion, primarily consisting of $559 million in unrestricted cash [20] Q&A Session Summary Question: Acquisition growth slowdown and market performance - Management expects a seasonal pattern in acquisitions, with a decline from Q1 to Q2 and a ramp-up in Q4, indicating a cautious approach due to market uncertainty [29] Question: Health of older inventory and valuation - Management noted that older inventory typically has lower margins, but recent acquisitions are performing well, providing confidence in future contribution margins [36] Question: Agent partnership expansion - The company is shifting to a model where agents are brought in earlier in the process, enhancing conversion and providing local expertise [42] Question: Cost savings opportunities - Management highlighted ongoing efforts to optimize the cost structure, with a significant reduction in fixed costs already achieved [53] Question: Marketing expense reduction - The majority of the expected reduction in operating expenses is attributed to lower marketing spend due to seasonal dynamics [58] Question: Economics of the agent partnership - The partnership will generate revenue through commission sharing on listings and margins on cash offers, with expectations that conversion benefits will outweigh referral costs [61]

Financial Data and Key Metrics Changes - The company reported revenue of $1.2 billion in Q1 2025, roughly in line with the same quarter in 2024, representing 2,946 homes sold [16] - Acquisition volumes increased by 4% year-over-year, with 3,609 homes purchased in Q1 2025 [16] - Contribution profit was $54 million in Q1 2025, down from $57 million in Q1 2024, resulting in a contribution margin of 4.7% [16] - Adjusted EBITDA loss improved to $30 million in Q1 2025 from a loss of $50 million in Q1 2024, driven by reduced operating expenses [17][18] - Fixed operating expenses in Q1 2025 were $19 million lower, down 33% compared to the previous year [14] Business Line Data and Key Metrics Changes - The company is focusing on enhancing its product flow and pricing models to improve conversion rates despite higher spreads [16] - The strategy includes expanding the market approach by leveraging partnerships with agents, which is expected to improve conversion rates and asset-light revenue [9][10] Market Data and Key Metrics Changes - The housing market is experiencing challenges, with mortgage rates exceeding 7%, clearance rates down nearly 25% year-over-year, and delistings up over 30% [6] - The company anticipates that the housing market will continue to deteriorate, impacting performance in the near term [20] Company Strategy and Development Direction - The company aims to drive towards profitability while enhancing product experience and leadership position in the residential real estate market [5] - A shift towards a platform that allows sellers to explore various selling options, including cash offers and listings with agents, is underway [7][8] - The company is piloting a new experience in select markets to improve customer engagement and conversion rates [10][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging macroeconomic environment and the uncertainty affecting home sellers and buyers [5][6] - The outlook for Q2 2025 includes expected revenue between $1.45 billion and $1.525 billion, with a contribution profit between $65 million and $75 million [20] - The company expects a sequential decline in acquisitions from Q1 to Q2, with a focus on maintaining pricing discipline and improving conversion rates [12][21] Other Important Information - The company ended Q1 2025 with 7,080 homes in inventory, valued at $2.4 billion, a 24% increase from the prior year [19] - The company has a total capital of $1 billion, primarily consisting of $559 million in unrestricted cash [19] Q&A Session Summary Question: Acquisition growth slowdown and market performance - Management expects a sequential decline in acquisitions from Q1 to Q2, with a similar pattern anticipated for the second half of the year [28] Question: Contribution margins of newer homes - Contribution margins are expected to be between 4.5% and 4.9%, with a decline driven by older inventory making up a larger share of homes sold [29] Question: Health of inventory and valuation - Management noted a natural degradation in margins over time, but recent acquisitions are starting at higher contribution margins [34] Question: Agent partnership expansion - The company is leveraging existing relationships with agents to improve conversion and provide local expertise [42] Question: Cost savings opportunities - The company is focused on optimizing its cost structure, with a year-over-year fixed cost reduction of nearly $20 million [52] Question: Marketing expense reduction - The majority of the operating expense reduction is attributed to lower marketing expenses due to seasonal dynamics [57] Question: Economics of the agent partnership - The partnership will generate asset-light revenue through commission sharing on listings and margins on cash offers, minus referral fees [61] Question: Signals for broader rollout of partnerships - Management is looking for improved conversion rates as a signal for expanding the agent partnership program [70]

TABLE OF CONTENTS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ____________. Commission file number 001-39253 Opendoor Technologies Inc. (Exact name of registrant as specified in its chart ...

[Q1 2025 Financial Performance Overview](index=1&type=section&id=Opendoor%20Announces%20First%20Quarter%20of%202025%20Financial%20Results) Opendoor reported Q1 2025 revenue of $1.2 billion with improved net loss and Adjusted EBITDA, while strategically expanding its selling platform and forecasting Q2 profitability [Q1 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Key%20Highlights) In Q1 2025, Opendoor reported revenue of $1.2 billion, a 2% decrease year-over-year but a 6% increase quarter-over-quarter. The company demonstrated improved operational efficiency, with net loss narrowing to $(85) million from $(109) million in Q1 2024. Adjusted EBITDA also improved to $(30) million. The company increased its home purchases by 4% YoY and grew its inventory balance by 26% YoY to $2.4 billion Q1 2025 Key Financial and Operational Metrics | Metric | Q1 2025 | Change vs Q1 2024 | Change vs Q4 2024 | | :--- | :--- | :--- | :--- | | Revenue | $1.2 billion | -2% | +6% | | Homes Sold | 2,946 | -4% | +4% | | Gross Profit | $99 million | -13.2% | +16.5% | | Net Loss | $(85) million | Improved from $(109)M | Improved from $(113)M | | Homes Purchased | 3,609 | +4% | +22% | | Inventory Balance | $2.4 billion | +26% | +9% | | Adjusted EBITDA | $(30) million | Improved from $(50)M | Improved from $(49)M | | Adjusted Net Loss | $(63) million | Improved from $(80)M | Improved from $(77)M | [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Carrie Wheeler highlighted the company's disciplined execution in Q1 2025, which led to improved Adjusted EBITDA and a sharp reduction in Adjusted Net Losses. The company is focused on its plan to drive toward profitability while enhancing its customer experience. Strategically, Opendoor is evolving into a broader selling platform that offers customers more choices, including a cash offer or listing with an agent - The company's Q1 results reflect **disciplined execution**, with a focus on driving towards profitability by improving **Adjusted EBITDA** and reducing **Adjusted Net Losses**[4](index=4&type=chunk) - Opendoor is strategically investing in its future by evolving into a broader selling platform, aiming to provide homeowners with multiple options, such as a direct cash offer or listing with a partner agent[5](index=5&type=chunk) [Q2 2025 Financial Outlook](index=2&type=section&id=Second%20Quarter%202025%20Financial%20Outlook) For the second quarter of 2025, Opendoor projects continued sequential growth and a significant improvement in profitability. The company forecasts revenue between $1.45 billion and $1.525 billion, Contribution Profit between $65 million and $75 million, and a positive Adjusted EBITDA in the range of $10 million to $20 million Q2 2025 Financial Guidance | Metric | Q2 2025 Guidance | | :--- | :--- | | Revenue | $1.45 billion to $1.525 billion | | Contribution Profit | $65 million to $75 million | | Adjusted EBITDA | $10 million to $20 million | [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements for Q1 2025 show revenue of $1.153 billion, improved net loss, increased real estate inventory, and a net decrease in cash due to operating activities [Financial Highlights and Operating Metrics](index=4&type=section&id=FINANCIAL%20HIGHLIGHTS%20AND%20OPERATING%20METRICS) In Q1 2025, revenue increased to $1.153 billion from $1.084 billion in the prior quarter, though it was down from $1.181 billion in Q1 2024. Net loss improved sequentially to $(85) million. The company increased its home inventory to 7,080 homes, valued at $2.362 billion, up from 6,417 homes at the end of Q4 2024. However, the percentage of homes held for over 120 days decreased significantly to 27% from 46% in the previous quarter Key Financial and Operating Metrics | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Revenue (Millions) | $1,153 | $1,084 | $1,181 | | Gross Margin | 8.6% | 7.8% | 9.7% | | Net Loss (Millions) | $(85) | $(113) | $(109) | | Homes Sold | 2,946 | 2,822 | 3,078 | | Homes Purchased | 3,609 | 2,951 | 3,458 | | Homes in Inventory | 7,080 | 6,417 | 5,706 | - The percentage of homes held in inventory for more than 120 days decreased to **27%** at the end of Q1 2025, a significant improvement from **46%** at the end of Q4 2024, but higher than the **15%** in Q1 2024[15](index=15&type=chunk) [Statements of Operations (Income Statement)](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For Q1 2025, Opendoor reported revenue of $1.153 billion and a gross profit of $99 million. Total operating expenses were reduced to $155 million, down from $201 million in the prior-year period, primarily due to lower sales, marketing, G&A, and technology costs, alongside new restructuring charges. This resulted in a loss from operations of $(56) million and a net loss of $(85) million, or $(0.12) per share, showing improvement from both the prior quarter and the same quarter last year Condensed Consolidated Statements of Operations | (In millions) | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Revenue | $1,153 | $1,084 | $1,181 | | Gross Profit | $99 | $85 | $114 | | Total Operating Expenses | $155 | $179 | $201 | | Loss from Operations | $(56) | $(94) | $(87) | | Net Loss | $(85) | $(113) | $(109) | | Net Loss Per Share | $(0.12) | $(0.16) | $(0.16) | [Balance Sheets](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, Opendoor's total assets increased to $3.277 billion from $3.126 billion at the end of 2024, driven by a rise in real estate inventory to $2.362 billion. Total liabilities also grew to $2.632 billion from $2.413 billion, largely due to an increase in the current portion of non-recourse asset-backed debt. Consequently, total shareholders' equity decreased to $645 million from $713 million Condensed Consolidated Balance Sheets | (In millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $559 | $671 | | Real estate inventory, net | $2,362 | $2,159 | | **Total Assets** | **$3,277** | **$3,126** | | Non-recourse asset-backed debt (Total) | $2,133 | $1,924 | | **Total Liabilities** | **$2,632** | **$2,413** | | **Total Shareholders' Equity** | **$645** | **$713** | [Statements of Cash Flows](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) In Q1 2025, Opendoor used $(279) million in cash from operating activities, a higher usage compared to $(178) million in Q1 2024, primarily due to an increase in real estate inventory. Investing activities provided a net cash of $2 million. Financing activities provided $207 million in cash, a significant shift from a use of $(98) million in the prior-year period, driven by net proceeds from non-recourse debt. Overall, cash, cash equivalents, and restricted cash decreased by $70 million during the quarter Condensed Consolidated Statements of Cash Flows | (In millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(279) | $(178) | | Net cash provided by investing activities | $2 | $22 | | Net cash provided by (used in) financing activities | $207 | $(98) | | **Net Decrease in Cash** | **$(70)** | **$(254)** | | **Cash, cash equivalents, and restricted cash – End of period** | **$693** | **$1,286** | [Non-GAAP Financial Measures and Reconciliations](index=8&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Opendoor utilizes non-GAAP measures like Contribution Profit and Adjusted EBITDA to provide supplemental insights into its financial performance and unit-level economics, with detailed reconciliations from GAAP figures [Explanation of Non-GAAP Measures](index=8&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Opendoor uses non-GAAP financial measures such as Contribution Profit and Adjusted EBITDA to provide supplemental information on its financial performance. Management believes these metrics are useful for evaluating unit-level economics and period-to-period comparisons by excluding certain items that may not be indicative of recurring operating results. Contribution Profit assesses the returns on homes sold, while Adjusted EBITDA is used to evaluate underlying financial performance and operational leverage - The company uses non-GAAP measures like **Adjusted Gross Profit**, **Contribution Profit**, **Adjusted Net Loss**, and **Adjusted EBITDA** as supplemental tools to evaluate financial performance, unit-level economics, and period-to-period comparisons[22](index=22&type=chunk) - **Contribution Profit** is designed to measure the ability to generate returns on homes sold in a period, after accounting for direct costs like home purchase, renovation, holding, and selling costs[24](index=24&type=chunk) - **Adjusted EBITDA** helps management and investors assess underlying performance by excluding non-cash charges, items not directly related to operations, and items not reflective of ongoing results[31](index=31&type=chunk) [Reconciliation of Gross Profit to Contribution Profit](index=9&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20NON-GAAP%20MEASURES%20(Gross%20Profit)) For Q1 2025, Opendoor reconciled a GAAP Gross Profit of $99 million to a Contribution Profit of $54 million. The key adjustments included adding back a $13 million inventory valuation adjustment for homes still in inventory and subtracting a $12 million adjustment for homes sold in the period. After further deducting $29 million in direct selling costs and $17 million in total holding costs for sold homes, the resulting Contribution Profit was $54 million, with a Contribution Margin of 4.7% Reconciliation of Gross Profit to Contribution Profit | (In millions) | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | **Gross profit (GAAP)** | **$99** | **$85** | **$114** | | Inventory valuation adjustment (net) | $1 | $(10) | $(10) | | **Adjusted Gross Profit** | **$100** | **$75** | **$104** | | Direct selling costs | $(29) | $(23) | $(34) | | Holding costs on sales (total) | $(17) | $(14) | $(13) | | **Contribution Profit** | **$54** | **$38** | **$57** | | **Contribution Margin** | **4.7%** | **3.5%** | **4.8%** | [Reconciliation of Net Loss to Adjusted EBITDA](index=10&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20NON-GAAP%20MEASURES%20(Net%20Loss)) In Q1 2025, the company reconciled a GAAP Net Loss of $(85) million to an Adjusted EBITDA of $(30) million. Key adjustments to arrive at an Adjusted Net Loss of $(63) million included adding back $14 million in stock-based compensation and $3 million in restructuring costs. To reach Adjusted EBITDA, further adjustments were made, primarily adding back $29 million in property financing interest and $5 million in depreciation and amortization Reconciliation of Net Loss to Adjusted EBITDA | (In millions) | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | **Net loss (GAAP)** | **$(85)** | **$(113)** | **$(109)** | | Stock-based compensation | $14 | $23 | $33 | | Inventory valuation adjustment (net) | $1 | $(10) | $(10) | | Restructuring | $3 | $17 | $— | | **Adjusted Net Loss** | **$(63)** | **$(77)** | **$(80)** | | Depreciation and amortization | $5 | $7 | $11 | | Property financing & other interest | $33 | $32 | $37 | | Interest income | $(5) | $(11) | $(18) | | **Adjusted EBITDA** | **$(30)** | **$(49)** | **$(50)** | | **Adjusted EBITDA Margin** | **(2.6)%** | **(4.5)%** | **(4.2)%** |

Core Insights - Opendoor Technologies Inc. reported its financial results for Q1 2025, showing a revenue of $1.2 billion, a decrease of 2% compared to Q1 2024, but an increase of 6% from Q4 2024 [8][12] - The company aims to drive towards profitability while enhancing its product experience and platform, as stated by CEO Carrie Wheeler [2][3] Financial Performance - Revenue for Q1 2025 was $1.2 billion, down 2% year-over-year but up 6% quarter-over-quarter [8] - Gross profit was $99 million, compared to $114 million in Q1 2024 and $85 million in Q4 2024, resulting in a gross margin of 8.6% [8][12] - The net loss for the quarter was $(85) million, an improvement from $(109) million in Q1 2024 and $(113) million in Q4 2024 [8][12] - Adjusted EBITDA was $(30) million, an improvement from $(50) million in Q1 2024 and $(49) million in Q4 2024, with an adjusted EBITDA margin of (2.6)% [8][12] Operational Metrics - Total homes sold in Q1 2025 were 2,946, down 4% from Q1 2024 but up 4% from Q4 2024 [8] - The inventory balance at the end of Q1 2025 was $2.4 billion, representing 7,080 homes, which is up 26% year-over-year and up 9% quarter-over-quarter [8] - The company purchased 3,609 homes in Q1 2025, an increase of 4% year-over-year and 22% quarter-over-quarter [8] Future Outlook - For Q2 2025, Opendoor expects revenue guidance between $1.45 billion and $1.525 billion [8] - Contribution profit guidance for Q2 2025 is projected to be between $65 million and $75 million [8] - Adjusted EBITDA guidance for Q2 2025 is anticipated to be between $10 million and $20 million [8]

Group 1: Company Performance - Opendoor Technologies' stock dropped 25% in April, reflecting ongoing challenges in the housing market [1] - The company has seen a 25% year-over-year increase in revenue, indicating some internal progress despite market conditions [5] - Opendoor's stock is currently trading at less than $1, representing a 98% decline from its all-time highs, with a price-to-sales ratio of only 0.1 [6] Group 2: Market Conditions - The real estate outlook remains bleak, with home prices at record highs and mortgage applications down 6% year-over-year in April [3] - Pending home sales decreased by 2.8%, and the median U.S. monthly housing payment reached a record high of $2,870 due to rising home prices and interest rates [3] - Although new listings increased by 6.1% and total homes for sale rose by 13.7%, the lack of buyers may limit the impact on Opendoor's business [4] Group 3: Future Outlook - Despite some operational improvements, the stalled housing market poses significant challenges for Opendoor's ability to sell homes [5] - The market currently perceives little upside for Opendoor's stock, raising concerns about it being a potential value trap for investors [7] - There is a possibility for future recovery and disruption in the real estate market, but this may take time [7]

Core Viewpoint - A class action lawsuit has been filed against Open Lending Corporation for allegedly making materially false and misleading statements regarding its business operations and financial performance during the Class Period from February 24, 2022, to March 31, 2025 [1][3]. Summary by Relevant Sections Lawsuit Details - The lawsuit is filed in the United States District Court for the Western District of Texas on behalf of all individuals and entities who purchased Open Lending securities during the specified Class Period [1]. - Investors have until June 30, 2025, to apply to be appointed as lead plaintiff in the lawsuit [1]. Allegations Against Open Lending - The complaint alleges that Open Lending misrepresented the capabilities of its risk-based pricing models [3]. - It is claimed that the company issued materially misleading statements regarding its profit share revenue [3]. - The lawsuit states 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]. - Allegations include misrepresentation of the underperformance of the company's 2023 and 2024 vintage loans [3]. - As a result of these actions, the positive statements made by the defendants about the company's business and prospects were deemed materially misleading and lacked a reasonable basis [3].