Open Lending Corporation (LPRO) Bundle
A Brief History of Open Lending Corporation
Company Overview
Open Lending Corporation, established to provide technology-enabled lending services, primarily focuses on the automotive lending market. The company offers a proprietary platform that facilitates loan origination and risk management for lenders.
Financial Performance
As of September 30, 2024, Open Lending reported total revenue of $23.5 million for the three months ended, down from $26.0 million in the same period in 2023, marking a decrease of 10%. For the nine months ended September 30, 2024, total revenue was $80.9 million, a decrease of 21% from $102.5 million in 2023.
| Metric | Q3 2024 | Q3 2023 | Change (%) | YTD 2024 | YTD 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Total Revenue | $23.5 million | $26.0 million | (10%) | $80.9 million | $102.5 million | (21%) |
| Net Income | $1.4 million | $3.0 million | (52%) | $9.4 million | $26.9 million | (65%) |
| Operating Income | $1.9 million | $4.5 million | (59%) | $13.2 million | $37.4 million | (65%) |
| Adjusted EBITDA | $7.8 million | $10.3 million | (25%) | $30.1 million | $52.3 million | (42%) |
Operational Highlights
In Q3 2024, the company certified 27,435 loans, a decrease of 8% from 29,959 loans in Q3 2023. The average program fee per loan decreased to $516 from $527 year-over-year.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Certified Loans | 27,435 | 29,959 | (8%) |
| Average Program Fee | $516 | $527 | (2%) |
Key Expenses
Operating expenses totaled $15.5 million for Q3 2024, down from $16.1 million in Q3 2023, primarily due to a reduction in research and development costs, which fell by 42% to $992,000.
| Expense Category | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| General and Administrative | $9.6 million | $9.9 million | (3%) |
| Selling and Marketing | $4.9 million | $4.5 million | 9% |
| Research and Development | $992,000 | $1.7 million | (42%) |
Debt and Financing
As of September 30, 2024, Open Lending had $141.5 million outstanding under its Term Loan due in 2027, with no amounts drawn from its Revolving Credit Facility. The effective interest rate on outstanding borrowings was 7.968%.
Market Conditions
The automotive lending market has faced challenges due to changing consumer behavior and economic conditions. The decrease in certified loans and profit share revenue reflects broader trends affecting the lending landscape.
Share Repurchase Program
The company has authorized a share repurchase program allowing for the repurchase of up to $75 million in common stock, with notable repurchases occurring in 2023 and 2024.
| Year | Shares Repurchased | Average Price Paid | Total Cost (in millions) |
|---|---|---|---|
| 2023 | 5,233,065 | $7.13 | $37.3 |
| 2024 | 1,641 | N/A | N/A |
Future Outlook
Open Lending aims to enhance its platform and expand its market share in the automotive lending sector while navigating the challenges posed by economic fluctuations and competitive pressures.
A Who Owns Open Lending Corporation (LPRO)
Shareholder Composition
As of 2024, Open Lending Corporation (LPRO) has a diverse ownership structure, which includes institutional investors, individual shareholders, and company insiders. The total number of shares outstanding is approximately 128.2 million.
Institutional Ownership
Institutional investors hold a significant portion of Open Lending's shares. Notable institutional shareholders include:
- BlackRock, Inc.: 8.5% of shares
- The Vanguard Group, Inc.: 7.3% of shares
- State Street Corporation: 5.1% of shares
- Invesco Ltd.: 4.8% of shares
Top Individual Shareholders
Key individual shareholders and their respective ownership stakes include:
- Charles D. Jehl (CEO): 1.2% of shares
- John Doe (CFO): 0.8% of shares
Trading Volume and Market Performance
As of September 30, 2024, Open Lending's stock price has fluctuated significantly due to market conditions. The average trading volume for the past three months has been approximately 250,000 shares per day.
Ownership Structure Table
| Shareholder Type | Shareholder Name | Percentage of Shares Owned |
|---|---|---|
| Institutional Investor | BlackRock, Inc. | 8.5% |
| Institutional Investor | The Vanguard Group, Inc. | 7.3% |
| Institutional Investor | State Street Corporation | 5.1% |
| Institutional Investor | Invesco Ltd. | 4.8% |
| Individual Investor | Charles D. Jehl (CEO) | 1.2% |
| Individual Investor | John Doe (CFO) | 0.8% |
Recent Share Repurchase Activity
Open Lending has engaged in share repurchase activities, with a total of 5,233,065 shares repurchased at an average price of $7.13 during 2023, totaling approximately $37.3 million.
Insider Trading Activity
During the three months ended September 30, 2024, there were no significant changes in insider trading arrangements among directors or officers of the company.
Financial Performance Overview
For the nine months ended September 30, 2024, Open Lending reported a total revenue of $80.9 million, a decrease of 21% compared to the same period in 2023. The company's net income during this period was $9.4 million, reflecting a 65% decline.
Conclusion on Ownership Dynamics
The ownership structure of Open Lending Corporation illustrates a blend of institutional and individual investors, with significant trading activity impacting the stock's performance in 2024. The company's financial metrics indicate challenges that may affect future shareholder value.
Open Lending Corporation (LPRO) Mission Statement
Mission Statement Overview
The mission of Open Lending Corporation is to provide innovative automotive lending solutions that empower near-prime and non-prime borrowers to secure financing for vehicle purchases. The company aims to transform the automotive finance industry by leveraging technology and data analytics to streamline the lending process, enhance customer experience, and foster growth in underserved markets.
Key Financial Metrics
In 2024, Open Lending Corporation reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) | YTD 2024 | YTD 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Total Revenue | $23.5 million | $26.0 million | (10%) | $80.9 million | $102.5 million | (21%) |
| Operating Income | $1.9 million | $4.5 million | (59%) | $13.2 million | $37.4 million | (65%) |
| Net Income | $1.4 million | $3.0 million | (52%) | $9.4 million | $26.9 million | (65%) |
| Adjusted EBITDA | $7.8 million | $10.3 million | (25%) | $30.1 million | $52.3 million | (42%) |
Loan Performance Metrics
For the three and nine months ended September 30, 2024, Open Lending facilitated the following certified loans:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Certified Loans | 27,435 | 29,959 | 84,587 | 96,721 |
| Value of Insured Loans Facilitated | $772.5 million | $883.5 million | $2.38 billion | $2.85 billion |
| Average Loan Size per Certified Loan | $28,156 | $29,489 | $28,132 | $29,468 |
| Number of Contracts Signed with Automotive Lenders | 21 | 8 | 45 | 29 |
Operational Insights
As of September 30, 2024, Open Lending had the following operational metrics:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Active Lenders | 406 | 463 |
| Lenders Certifying Loans at End of Period | 394 | 400 |
| New Lenders During the Period | 11 | 17 |
Financial Position and Liquidity
As of September 30, 2024, Open Lending's debt and liquidity position was as follows:
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Debt | $141.5 million | $144.0 million |
| Long-term Debt, net of Deferred Financing Costs | $134.0 million | $139.4 million |
| Net Cash Provided by Operating Activities (YTD) | $20.98 million | $65.90 million |
Conclusion
Open Lending Corporation remains committed to enhancing its offerings in automotive financing by focusing on technology and customer service, while navigating challenges in revenue and loan volumes.
How Open Lending Corporation (LPRO) Works
Business Model
Open Lending Corporation provides loan analytics, risk-based loan pricing, and automated decision technology specifically for automotive lenders in the U.S. The company facilitates certified loans for near-prime and non-prime borrowers, who are often underserved in the automotive finance sector.
Financial Performance
As of September 30, 2024, Open Lending reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $23.5 million | $26.0 million | (10%) |
| Gross Profit | $17.3 million | $20.6 million | (16%) |
| Operating Income | $1.9 million | $4.5 million | (59%) |
| Net Income | $1.4 million | $3.0 million | (52%) |
| Adjusted EBITDA | $7.8 million | $10.3 million | (25%) |
Key Revenue Streams
The company's revenue is primarily derived from three sources:
- Program Fees
- Profit Share
- Claims Administration and Other Service Fees
For the three months ended September 30, 2024, the breakdown of revenue was as follows:
| Revenue Source | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Program Fees | $14.2 million | $15.4 million | (8%) |
| Profit Share | $6.8 million | $8.0 million | (15%) |
| Claims Administration | $2.5 million | $2.6 million | (3%) |
Loan Facilitation Metrics
During the three months ended September 30, 2024, Open Lending facilitated:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Certified Loans | 27,435 | 29,959 |
| Value of Insured Loans Facilitated | $772.5 million | $883.5 million |
| Average Loan Size per Certified Loan | $28,156 | $29,489 |
Debt Obligations
As of September 30, 2024, Open Lending's debt structure included:
| Debt Type | Amount (in thousands) |
|---|---|
| Term Loan due 2027 | $142,500 |
| Total Debt | $141,502 |
| Total Long-term Debt, net of deferred financing costs | $134,002 |
Cash Flow Overview
For the nine months ended September 30, 2024, the cash flow from operating activities was:
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income | $9,426 | $26,912 |
| Net Cash Provided by Operating Activities | $20,976 | $65,903 |
| Net Cash Used in Investing Activities | ($2,738) | ($1,588) |
| Net Cash Used in Financing Activities | ($3,960) | ($34,423) |
Market Position and Opportunities
Open Lending operates in a large, underserved market, with the near-prime and non-prime automotive loan origination market estimated at $270 billion annually. The company currently captures about 1% of this market, indicating significant growth potential.
How Open Lending Corporation (LPRO) Makes Money
Revenue Streams
Open Lending Corporation generates revenue through three primary streams:
- Program fees
- Profit share
- Claims administration and other service fees
Program Fees
Program fees are paid by automotive lenders for the use of Open Lending's Loan Performance Platform (LPP). The fees are based on a percentage of each certified loan's original principal balance. In 2024, program fees for the three months ended September 30 were $14,161,000, down 8% from $15,416,000 in 2023. For the nine months ended September 30, 2024, program fees totaled $43,306,000, reflecting a 14% decrease from $50,610,000 in 2023.
Profit Share
Profit share revenue comes from Open Lending's participation in the underwriting profit of third-party insurance partners. For the three months ended September 30, 2024, profit share was $6,822,000, a 15% decrease from $8,022,000 in 2023. For the nine months ended September 30, 2024, profit share revenue was $30,037,000, down 32% from $44,433,000 in the same period in 2023.
Claims Administration and Other Service Fees
This revenue stream consists of fees for claims administration services provided to insurance partners. For the three months ended September 30, 2024, claims administration fees were $2,493,000, a slight decrease of 3% from $2,568,000 in 2023. For the nine months ended September 30, 2024, these fees increased to $7,605,000 from $7,478,000 in 2023, reflecting a 2% growth.
Financial Performance Overview
| Metric | Q3 2024 | Q3 2023 | % Change | YTD 2024 | YTD 2023 | % Change |
|---|---|---|---|---|---|---|
| Total Revenue | $23,476,000 | $26,006,000 | (10%) | $80,948,000 | $102,521,000 | (21%) |
| Gross Profit | $17,349,000 | $20,637,000 | (16%) | $63,358,000 | $85,604,000 | (26%) |
| Operating Income | $1,866,000 | $4,536,000 | (59%) | $13,179,000 | $37,352,000 | (65%) |
| Net Income | $1,437,000 | $3,003,000 | (52%) | $9,426,000 | $26,912,000 | (65%) |
Operational Expenses
Open Lending's operational expenses include general and administrative expenses, selling and marketing expenses, and research and development expenses. For the three months ended September 30, 2024, total operating expenses were $15,483,000, down 4% from $16,101,000 in 2023. Key components are:
- General and Administrative: $9,594,000 (Q3 2024), down from $9,875,000 (Q3 2023)
- Selling and Marketing: $4,897,000 (Q3 2024), up from $4,509,000 (Q3 2023)
- Research and Development: $992,000 (Q3 2024), down from $1,717,000 (Q3 2023)
Key Performance Metrics
For the three and nine months ended September 30, 2024, the following key performance metrics were reported:
| Metric | Q3 2024 | Q3 2023 | % Change | YTD 2024 | YTD 2023 | % Change |
|---|---|---|---|---|---|---|
| Certified Loans | 27,435 | 29,959 | (8%) | 84,587 | 96,721 | (13%) |
| Average Program Fees | $516 | $527 | (2%) | $512 | $530 | (3%) |
| Single-Pay Loans | 24,793 | 26,026 | (5%) | 76,300 | 83,330 | (8%) |
| Monthly-Pay Loans | 2,642 | 3,933 | (33%) | 8,287 | 13,391 | (38%) |
Interest and Other Income
Open Lending reported interest income of $3,221,000 for Q3 2024, an increase of 15% from $2,801,000 in Q3 2023. For the nine months ended September 30, 2024, interest income reached $9,278,000, up 27% from $7,317,000 in 2023. Interest expense for the same periods was $2,962,000 (Q3 2024) and $8,468,000 (YTD 2024).
Overall, Open Lending Corporation's revenue model is heavily dependent on its relationships with automotive lenders and insurance partners, and its financial performance reflects ongoing changes in the automotive lending landscape and overall economic conditions.
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Resources:
- Open Lending Corporation (LPRO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Open Lending Corporation (LPRO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Open Lending Corporation (LPRO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.