Open Lending(LPRO) - 2025 Q3 - Quarterly Results

Financial Performance - Total revenue for Q3 2025 was $24.2 million, up 3.0% from $23.5 million in Q3 2024[8] - Gross profit increased to $18.9 million in Q3 2025, compared to $17.3 million in Q3 2024[8] - The net loss for Q3 2025 was $7.6 million, contrasting with a net income of $1.4 million in Q3 2024[8] - Adjusted EBITDA rose to $5.6 million in Q3 2025, compared to $4.5 million in Q3 2024[8] - Total revenue for Q3 2025 was $24,169 million, a 2.9% increase from $23,476 million in Q3 2024[22] - Net loss for Q3 2025 was $7,569 million, compared to a net income of $1,437 million in Q3 2024[22] - Adjusted EBITDA for the nine months ended September 30, 2025, was $12,805 million, with an adjusted EBITDA margin of 17.3%[26] Loan Activity - Open Lending facilitated 23,880 certified loans in Q3 2025, a decrease of 12.5% from 27,435 certified loans in Q3 2024[8] - Credit unions and banks accounted for 89.8% of certified loans in Q3 2025, up from 79.5% in Q3 2024[9] - The company expects total certified loans for Q4 2025 to be between 21,500 and 23,500[7] Revenue per Loan - Average profit share revenue per certified loan decreased to $310 in Q3 2025 from $502 in Q3 2024[9] - Average program fee revenue per certified loan increased to $558 in Q3 2025 from $516 in Q3 2024[9] Operating Expenses - Operating expenses increased significantly to $26,552 million in Q3 2025, up from $15,483 million in Q3 2024, primarily due to higher general and administrative costs[22] - Research and development expenses for Q3 2025 were $2,050 million, significantly higher than $992 million in Q3 2024, indicating increased investment in innovation[22] Cash Flow - Cash and cash equivalents at the end of Q3 2025 were $233,729 million, down from $260,947 million at the end of Q3 2024[24] - The company reported a net cash used in operating activities of $8,644 million for the nine months ended September 30, 2025, compared to $20,976 million provided in the same period of 2024[24] Interest Expense - Interest expense for the nine months ended September 30, 2025, was $7,440 million, down from $8,468 million in the same period of 2024[24] Share Information - The weighted average diluted shares outstanding for Q3 2025 were 118,825 million, compared to 119,428 million in Q3 2024[22] New Initiatives - Open Lending launched ApexOne Auto, an advanced decisioning platform aimed at enhancing service capabilities for auto borrowers[3] One-time Payments - The company made a one-time payment of $11 million related to a reseller agreement, impacting non-GAAP financial measures[26]