Open Lending Corporation reported significant financial challenges in its 2024 fiscal year, as detailed in its recent 10-K filing. The company generated total revenue of $24.0 million, a stark decline of 80% from $117.5 million in 2023. This downturn was primarily driven by a dramatic decrease in profit share revenue, which fell by $86.4 million, attributed to heightened loan delinquencies and defaults. The company also recorded an operating loss of $65.4 million, compared to an operating income of $29.1 million in the previous year, and a net loss of $135.0 million, contrasting with a net income of $22.1 million in 2023.
The filing highlighted a notable reduction in certified loans, with 110,652 loans facilitated in 2024, down from 122,984 in 2023. The average loan size also decreased to $28,122 from $29,388. The company attributed the revenue decline to a combination of factors, including a reduction in estimated profit share revenues of $96.1 million, primarily due to increased defaults on loans originated between 2021 and 2024. The company’s profit share revenue was further impacted by a change in estimates related to borrower cohorts that underperformed.
Operationally, Open Lending served 441 active lenders as of December 31, 2024, a decrease from 454 in the previous year. The company signed 58 new contracts with automotive lenders, compared to 44 in 2023. Despite these challenges, Open Lending continues to focus on its Lenders Protection Platform (LPP), which aims to provide lending enablement and risk analytics to automotive lenders, particularly targeting near-prime and non-prime borrowers.
Looking ahead, Open Lending's management expressed cautious optimism about future performance, emphasizing the need to adapt to changing market conditions and improve the adoption of LPP among automotive lenders. The company is also focused on managing its operational costs and enhancing its product offerings to better serve its customer base. However, the ongoing economic environment, characterized by rising interest rates and inflation, poses significant risks to consumer spending and borrowing, which could further impact the company's financial performance in the near term.
About Open Lending Corp
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