Open Lending Corporation reported its financial results for the first quarter of 2025, revealing a total revenue of $24.4 million, a decrease of 21% from $30.7 million in the same period of 2024. The decline was primarily driven by a significant drop in profit share revenue, which fell by 52% to $6.7 million, down from $13.9 million. This decrease was partially offset by a 6% increase in program fees, which rose to $15.2 million from $14.3 million. The company's net income also saw a substantial decline, totaling $617,000 compared to $5.1 million in the prior year, resulting in a basic net income per share of $0.01, down from $0.04.
In terms of operational metrics, Open Lending facilitated 27,638 certified loans during the quarter, a slight decrease from 28,189 in the previous year. The average loan size per certified loan increased to $28,327 from $27,948. The company signed 18 new contracts with automotive lenders, up from 11 in the same period last year, bringing the total number of active lenders to 443. This reflects a stable customer base, with the company continuing to focus on near-prime and non-prime borrowers.
The financial performance was impacted by several factors, including a decrease in anticipated profit share revenue associated with new certified loan originations, which fell by 49%. Additionally, the company recorded a reduction in estimated profit share revenue of $0.9 million due to changes in estimates related to loan performance, primarily driven by higher-than-expected loan defaults. Operating income also decreased significantly to $762,000 from $7.3 million, reflecting the overall decline in revenue and increased costs.
Looking ahead, Open Lending's management remains focused on strategic initiatives, including a recently authorized share repurchase program allowing for the repurchase of up to $25 million of the company's common stock until May 2026. The company aims to leverage its Lenders Protection platform to enhance its service offerings and expand its market presence. Despite the challenges faced in the current economic environment, including fluctuating interest rates and changing consumer behaviors, Open Lending is committed to maintaining its operational efficiency and exploring growth opportunities within the automotive lending sector.
About Open Lending Corp
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.