Open Lending(LPRO) - 2024 Q3 - Quarterly Report

Financial Performance - Total revenue for Q3 2024 was $23.5 million, down 9.6$26.0 million in Q3 2023[49] - Operating income for Q3 2024 was $1.9 million, a decline of 57.8$4.5 million in Q3 2023[49] - Net income for Q3 2024 was $1.4 million, down 53.3$3.0 million in Q3 2023[49] - Adjusted EBITDA for Q3 2024 was $7.8 million, a decrease of 24.3$10.3 million in Q3 2023[49] - Total revenue decreased by $2.5 million, or 10$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$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$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$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$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$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$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]