Open Lending Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing significant declines in revenue and profitability compared to the same periods in 2023. Total revenue for Q3 2024 was $23.5 million, a decrease of 10% from $26.0 million in Q3 2023. For the nine months ended September 30, 2024, revenue totaled $80.9 million, down 21% from $102.5 million in the prior year. This decline was attributed to a decrease in certified loan volume and lower profit share revenue associated with new loan originations.
Operating income for Q3 2024 fell to $1.9 million, a 59% decrease from $4.5 million in Q3 2023. For the nine-month period, operating income was $13.2 million, down 65% from $37.4 million in the same period last year. Net income also saw a significant drop, with Q3 2024 net income at $1.4 million compared to $3.0 million in Q3 2023, and nine-month net income at $9.4 million, down from $26.9 million in the previous year.
The company’s total assets increased to $395.7 million as of September 30, 2024, up from $374.0 million at the end of 2023. Current assets rose to $294.7 million, with cash and cash equivalents increasing to $250.2 million. However, total current liabilities also rose to $31.3 million, up from $20.6 million at the end of 2023. Stockholders’ equity increased to $220.5 million from $205.6 million.
Open Lending's flagship product, the Lenders Protection™ platform, continues to serve a significant market, with 406 active lenders as of September 30, 2024, down from 463 a year earlier. The company facilitated 27,435 certified loans in Q3 2024, a decrease from 29,959 in Q3 2023. The value of insured loans facilitated also declined, totaling $772.5 million in Q3 2024 compared to $883.5 million in the same period of 2023.
The company has a Credit Agreement consisting of a $150 million Term Loan due in 2027 and a $150 million Revolving Credit Facility, with no amounts outstanding under the latter as of September 30, 2024. The effective interest rate on outstanding borrowings was 7.968%.
Overall, Open Lending's financial performance reflects challenges in the automotive lending market, particularly in the near-prime and non-prime segments, which the company primarily serves.
About Open Lending Corp
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