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- **New Revenue Stream**: ApexOne Auto launched with 2 customers, targeting $30-40 million annual revenue if adopted by half of credit unions.
- **Strengthened Core Business**: 3 straight quarters of positive EBITDA ($5.6 million Q3) and 8% YoY increase in program fee unit economics.
- **Cost Efficiency**: $2.5 million annual savings from Allied agreement, starting 2027, offsetting $11 million one-time payment.
- **Resilient Book**: 6% of originations in high-risk segments vs. 24% a year ago, positioning for mid-60s loss ratio in newer vintages.
- **2026 Growth Outlook**: Refinance recovery, OEM expansion, and new CRO to drive top-line growth despite Q4 2025 volume decline.


**CEO Summary Section**
- **New Product Launch**: Introduced ApexOne Auto, a subscription-based decisioning platform targeting the prime auto lending segment. Already launched with 2 customers, with potential for $30-40 million annual revenue if adopted by 50% of credit unions.
- **Core Platform Performance**: 3 consecutive quarters of positive adjusted EBITDA ($5.6 million Q3) and reduced volatility. Certified loans decreased 13% YoY to 23,880, reflecting tighter underwriting in lower-margin segments (SuperThin and credit builder files now 6% of originations vs. 24% in Q3 2024).
- **Customer Retention**: Added 10 new logos, no cancellations, and rolled out lender profitability dashboards. Amended Allied Solutions agreement to save $2.5 million annually starting 2027.
- **Macroeconomic Outlook**: Positioned for 2026 growth with refinance recovery and OEM expansion. Despite industry delinquencies, Open Lending's book is resilient due to conservative unit economics (72.5% loss ratio booking vs. mid-60s expected).

**CFO Financial Commentary**
- **Revenue**: Q3 2025 total revenue $24.2 million (+3% YoY), driven by program fees ($13.3 million) and profit share ($8.5 million). Excluding one-time $11 million Allied payment, operating expenses were flat YoY.
- **Profitability**: Net loss $7.6 million vs. $1.4 million YoY, due to higher expenses. Adjusted EBITDA $5.6 million (+24% YoY). Cash position $222.1 million, with $21 million remaining in share buyback.
- **Guidance**: Q4 2025 certified loans expected 21,500-23,500, reflecting seasonal trends and ongoing underwriting discipline.

**Q&A Highlights**
- **ApexOne Auto Subscription Model**: 3-year contracts with fixed monthly minimums and variable overage fees. Complementary to LPP, with non-insurance wrapper.
- **Allied Savings Timeline**: $2.5 million annual savings to phase in from H2 2026, with full impact in 2027.
- **2026 Growth Drivers**: Refinance recovery, OEM expansion, and new Chief Revenue Officer to enhance go-to-market strategy.
- **OEM Channel**: OEM 3 loans now 10.2% of volume, expected to perform like credit unions. Long-term mix may increase slightly.


Open Lending Corporation (LPRO) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

LPRO

LPRO fundamentals

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