EX-99.1 2 a20250630-ex991.htm EX-99.1 Document

Exhibit 99.1
openlendinglogoa.jpg
Open Lending Reports Second Quarter 2025 Financial Results

AUSTIN, Texas, August 6, 2025 – Open Lending Corporation (Nasdaq: LPRO) (the “Company” or “Open Lending”), an industry trailblazer in lending enablement and risk analytics solutions for financial institutions, today reported financial results for its second quarter ended June 30, 2025.
“I am pleased with our progress as the team executes against our strategy to increase profitability and reduce volatility in our unit economics, to improve customer retention, to streamline the business, and to align incentives across the entire organization,” said Jessica Buss, Chief Executive Officer of Open Lending. “We believe our value proposition remains strong and differentiated as highlighted by the early extension of our relationship with AmTrust, our largest insurance provider and a trusted partner for over a decade. We thank them for their continued support and dedication to our mission to serve the underserved.”
Three Months Ended June 30, 2025 Highlights
•The Company facilitated 26,522 certified loans during the second quarter of 2025, compared to 28,963 certified loans in the second quarter of 2024.
•Total revenue was $25.3 million during the second quarter of 2025, compared to $26.7 million in the second quarter of 2024. The second quarter of 2025 was impacted by an increase of $0.3 million in estimated profit share revenues related to business in historic vintages as compared to a $6.7 million reduction in the second quarter of 2024.
•Gross profit was $19.8 million during the second quarter of 2025, compared to $21.0 million in the second quarter of 2024.
•Net income was $1.0 million during the second quarter of 2025, compared to $2.9 million in the second quarter of 2024.
•Adjusted EBITDA was $4.1 million during the second quarter of 2025, compared to $6.8 million in the second quarter of 2024.
Adjusted EBITDA is a non-GAAP financial measure. Beginning in the quarter ended June 30, 2025, we have updated the presentation of Adjusted EBITDA to exclude interest income as we believe the exclusion of interest income aligns our definition with comparable companies. Prior periods presented have been conformed to the current period presentation.
A reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure is provided in the financial table included at the end of this press release. An explanation of this measure and how it is calculated is also included under the heading “Non-GAAP Financial Measures.”
Third Quarter 2025 Outlook
For the third quarter of 2025, the Company currently expects total certified loans to be between 22,500 and 24,500.

The guidance provided includes forward-looking statements within the meaning of U.S. securities laws. See “Forward-Looking Statements” below.
Open Lending will host a conference call to discuss the second quarter 2025 financial results on August 6, 2025 at 5:00 pm ET. The conference call will be webcast live from the Company's investor relations website at https://investors.openlending.com/ under the “Events” section. The conference call can also be accessed live over the phone by dialing (800) 343-4136, or for international callers (203) 518-9843 using access code LENDING. An archive of the webcast will be available at the same location on the website shortly after the call has concluded.
Share Repurchase Program
On May 1, 2025, the Board of Directors authorized share repurchases under a share repurchase program (the “Share Repurchase Program”) allowing the Company to repurchase up to $25.0 million of the Company's outstanding common stock until May 1, 2026. Repurchases may be made at management's discretion from time to time in the open market. The Share Repurchase Program may be suspended, amended, or discontinued at any time.


During the three months ended June 30, 2025, we repurchased 1,971,369 shares at an average price of $2.00 per share for a total of $4.0 million, excluding excise tax.
About Open Lending
Open Lending (Nasdaq: LPRO) provides loan analytics, risk-based pricing, risk modeling and default insurance to auto lenders throughout the United States. For over 20 years, we have been empowering financial institutions to create profitable auto loan portfolios with less risk and more reward. For more information, please visit www.openlending.com.
Forward-Looking Statements
This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995, including statements related to the Company's new loan measures, lender profitability, volatility, the Share Repurchase Program, market trends, consumer behavior and demand for automotive loans, as well as future financial performance under the heading "Third Quarter 2025 Outlook" above. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” “on track,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements are based on various assumptions and on the current expectations of the Company’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the Company’s control. These forward-looking statements are subject to a number of risks and uncertainties, including general economic, market, political and business conditions; applicable taxes, inflation, tariffs, supply chain disruptions including global hostilities and responses thereto, interest rates and the regulatory environment; the outcome of judicial proceedings to which Open Lending may become a party; and other risks discussed in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2024. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company presently does not know or that it currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this press release. Subsequent events and developments may cause the Company's assessments to change, but, the Company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.
Non-GAAP Financial Measures
The non-GAAP financial measures included in this press release are financial information that has not been prepared in accordance with GAAP. The Company uses Adjusted EBITDA and Adjusted EBITDA margin internally in analyzing our financial results and believes these measures are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. The Company believes that the use of non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures to investors.
The Company believes these measures provide useful information to investors and others in understanding and evaluating its operating results in the same manner as its management and board of directors. In addition, these measures provide useful measures for period-to-period comparisons of our business, as they remove the effect of certain non-cash items and certain non-recurring variable charges.
Adjusted EBITDA is defined as GAAP net income (loss) excluding interest expense, interest income, income tax expense, depreciation and amortization expense, and share-based compensation expense. Adjusted EBITDA margin is defined as Adjusted EBITDA expressed as a percentage of total revenue.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measure provided in the financial statement tables included below in this press release.


Investor Relations Contact:
InvestorRelations@openlending.com


OPEN LENDING CORPORATION
Consolidated Balance Sheets
(Unaudited)
(In thousands, except share data)

 June 30,
2025		December 31,
2024
Assets
Current assets
Cash and cash equivalents$230,659 $243,164 
Restricted cash10,678 10,760 
Accounts receivable, net4,406 5,055 
Current contract assets, net14,553 9,973 
Income tax receivable3,576 3,558 
Other current assets3,230 3,215 
Total current assets267,102 275,725 
Property and equipment, net586 729 
Capitalized software development costs, net5,123 5,386 
Operating lease right-of-use assets, net3,478 3,878 
Contract assets14,895 5,094 
Other assets5,477 5,556 
Total assets$296,661 $296,368 
Liabilities and stockholders’ equity
Current liabilities
Accounts payable$481 $953 
Accrued expenses7,954 5,166 
Current portion of debt7,500 7,500 
Third-party claims administration liability10,724 10,797 
Current portion of excess profit share receipts18,410 19,346 
Other current liabilities2,072 3,490 
Total current liabilities47,141 47,252 
Long-term debt, net of deferred financing costs128,640 132,217 
Operating lease liabilities2,839 3,273 
Excess profit share receipts31,966 28,210 
Other liabilities7,128 7,329 
Total liabilities217,714 218,281 
Stockholders’ equity
Preferred stock, $0.01 par value; 10,000,000 shares authorized and none issued and outstanding— — 
Common stock, $0.01 par value; 550,000,000 shares authorized, 128,198,185 shares issued and 118,172,477 shares outstanding as of June 30, 2025 and 128,198,185 shares issued and 119,350,001 shares outstanding as of December 31, 2024
1,282 1,282 
Additional paid-in capital495,415 502,664 
Accumulated deficit(327,108)(328,759)
Treasury stock at cost, 10,025,708 shares at June 30, 2025 and 8,848,184 shares at December 31, 2024
(90,642)(97,100)
Total stockholders’ equity78,947 78,087 
Total liabilities and stockholders’ equity$296,661 $296,368 



OPEN LENDING CORPORATION
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)
 
 Three Months Ended June 30, Six Months Ended June 30,
 2025202420252024
Revenue
Program fees$14,933 $14,836 $30,143 $29,145 
Profit share7,969 9,333 14,699 23,215 
Claims administration and other service fees2,408 2,558 4,861 5,112 
Total revenue25,310 26,727 49,703 57,472 
Cost of services5,509 5,713 11,593 11,463 
Gross profit19,801 21,014 38,110 46,009 
Operating expenses
General and administrative11,964 11,745 22,862 23,724 
Selling and marketing4,146 4,149 8,528 8,363 
Research and development2,515 1,130 4,782 2,609 
Total operating expenses18,625 17,024 36,172 34,696 
Operating income1,176 3,990 1,938 11,313 
Interest expense(2,419)(2,736)(5,008)(5,506)
Interest income2,357 3,086 4,857 6,057 
Income before income taxes1,114 4,340 1,787 11,864 
Income tax expense80 1,438 136 3,875 
Net income$1,034 $2,902 $1,651 $7,989 
Net income per common share
Basic$0.01 $0.02 $0.01 $0.07 
Diluted$0.01 $0.02 $0.01 $0.07 
Weighted average common shares outstanding
Basic118,866 119,206 119,157 119,066 
Diluted119,003 119,331 119,645 119,388 



OPEN LENDING CORPORATION
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)

Six Months Ended June 30,
20252024
Cash flows from operating activities
Net income $1,651 $7,989 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Share-based compensation4,180 4,222 
Depreciation and amortization1,134 787 
Amortization of debt issuance costs206 214 
Non-cash operating lease cost400 327 
Deferred income taxes— 3,857 
Other149 37 
Changes in operating assets & liabilities:
Accounts receivable, net649 177 
Contract assets, net(14,381)(4,417)
Excess profit share receipts2,820 — 
Other current and non-current assets30 (2,885)
Accounts payable(472)524 
Accrued expenses2,787 191 
Income tax receivable, net47 843 
Operating lease liabilities(384)(307)
Third-party claims administration liability(73)(1,982)
Other current and non-current liabilities(1,733)22 
Net cash provided by (used in) operating activities(2,990)9,599 
Cash flows from investing activities
Purchase of property and equipment(56)(51)
Capitalized software development costs(778)(1,677)
Net cash used in investing activities(834)(1,728)
Cash flows from financing activities
Payments on term loans(3,750)(938)
Shares repurchased(3,952)— 
Shares withheld for taxes related to restricted stock units(1,061)(1,137)
Net cash used in financing activities(8,763)(2,075)
Net change in cash and cash equivalents and restricted cash(12,587)5,796 
Cash and cash equivalents and restricted cash at the beginning of the period253,924 246,669 
Cash and cash equivalents and restricted cash at the end of the period$241,337 $252,465 
Supplemental disclosure of cash flow information:
Interest paid$4,819 $6,260 
Income tax paid (refunded), net89 (825)


OPEN LENDING CORPORATION
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(In thousands, except margin data)

 
 Three Months Ended June 30, Six Months Ended June 30,
 2025202420252024
Net income$1,034 $2,902 $1,651 $7,989 
Non-GAAP adjustments:
Interest (income) expense, net62 (350)151 (551)
Income tax expense80 1,438 136 3,875 
Depreciation and amortization expense590 415 1,134 787 
Share-based compensation2,334 2,368 4,180 4,222 
Total adjustments3,066 3,871 5,601 8,333 
Adjusted EBITDA$4,100 $6,773 $7,252 $16,322 
Adjusted EBITDA margin16.2 %25.3 %14.6 %28.4 %