Open Lending 2025 Q3 Earnings Net Loss Widens 626.7% Despite Revenue Beat

Open Lending (LPRO) reported mixed Q3 2025 results, with revenue exceeding expectations but a significant net loss. The company’s shares have fallen sharply post-earnings, while management highlighted strategic shifts to stabilize profits.

Revenue

Open Lending’s total revenue rose 3.0% year-over-year to $24.17 million, outpacing the $23.48 million recorded in Q3 2024 and beating analyst estimates.

Earnings/Net Income

The company swung to a net loss of $7.57 million, or $0.06 per share, compared to a $1.44 million profit ($0.01 per share) in the prior-year period—a 626.7% deterioration. Despite this, it has maintained profitability in six of the past seven Q3s. The EPS shortfall reflects a $0.07 miss against expectations.

Post-Earnings Price Action Review

Recent financial performance shows promise, with LPRO surpassing Zacks’ $0.01 EPS estimate by 200% and revenue growth of 2.9%. However, Q3’s net loss of $7.6 million contrasts with three consecutive quarters of positive adjusted EBITDA. The launch of Apex One Auto, a subscription-based platform, aims to diversify revenue and stabilize earnings. Historical trends, including a 6.25% revenue beat in Q2 2025, suggest potential for recovery, though investors must monitor volatility in loan volumes and operational costs.

CEO Commentary

Jessica Buss emphasized tightened underwriting standards and the ApexOne Auto platform as key drivers for long-term stability. She expressed confidence in 2026 growth, citing improved loan quality and strategic cost reductions.

Guidance

Open Lending expects 21,500–23,500 certified loans in Q4 2025, reflecting ongoing caution amid economic uncertainties.

Additional News

1. Product Launch: Apex One Auto, a prime credit decisioning platform, was introduced to expand recurring revenue through subscription contracts.

2. Cost Savings: A revised Allied Solutions contract is projected to yield $2.5 million annual savings starting in late 2026.

3. Leadership Changes: Ben Massey joined as General Counsel, and Massimo Monaco was appointed CFO, signaling strategic realignment.

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