📊 LPRO Key Takeaways
Is LPRO a Good Investment? Thesis Analysis
Open Lending demonstrates exceptional revenue growth (288% YoY) and strong gross margins (76.9%), indicating core business strength, but is significantly constrained by operational unprofitability (-5.4% operating margin) and negative operating cash flow (-$3.2M). Without a clear path to GAAP profitability and positive cash generation, the company poses elevated risk despite its robust liquidity position.
Why Buy LPRO? Key Strengths
- Exceptional gross margin of 76.9% demonstrates strong core unit economics in personal credit lending
- Outstanding revenue growth of 288% YoY indicates strong market demand and business traction
- Fortress balance sheet with $176.6M cash position (75% of total assets) provides significant runway
LPRO Investment Risks to Consider
- Negative operating cash flow (-$3.2M) despite massive revenue growth indicates poor cash conversion quality
- Operating margin deeply negative at -5.4%, suggesting SG&A and operating expenses far exceed gross profit
- Operating losses persist and company unprofitable on GAAP and cash basis; inability to convert gross margin to bottom line profitability
- Moderate-to-high leverage (1.13x Debt/Equity) combined with cash burn creates solvency risk if cash position depletes
Key Metrics to Watch
- Operating cash flow trend and path to positive FCF generation
- Operating expense ratio and SG&A efficiency improvements
- Timeline to operating profitability and GAAP net income breakeven
LPRO Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 4.52x current ratio provides a solid financial cushion.
LPRO Profitability Ratios
LPRO vs Default Sector
How Open Lending Corp compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is LPRO Overvalued or Undervalued?
Based on fundamental analysis, Open Lending Corp shows some fundamental concerns relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
LPRO Balance Sheet & Liquidity
LPRO 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Open Lending Corp's revenue has declined by 46% over the 5-year period, indicating business contraction. The most recent EPS of $0.18 reflects profitable operations.
LPRO Growth Metrics (YoY)
LPRO Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $23.5M | $617.0K | $0.01 |
| Q2 2025 | $25.3M | $617.0K | $0.01 |
| Q1 2025 | $24.4M | $617.0K | $0.01 |
| Q3 2024 | $23.5M | $1.4M | $0.01 |
| Q2 2024 | $26.7M | $2.9M | $0.02 |
| Q1 2024 | $30.7M | $5.1M | $0.04 |
| Q3 2023 | $26.0M | $3.0M | $0.02 |
| Q2 2023 | $38.2M | $11.4M | $0.09 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
LPRO Capital Allocation
LPRO SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Open Lending Corp (CIK: 0001806201)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LPRO
What is the AI rating for LPRO?
Open Lending Corp (LPRO) has an AI rating of SELL with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are LPRO's key strengths?
Claude: Exceptional gross margin of 76.9% demonstrates strong core unit economics in personal credit lending. Outstanding revenue growth of 288% YoY indicates strong market demand and business traction.
What are the risks of investing in LPRO?
Claude: Negative operating cash flow (-$3.2M) despite massive revenue growth indicates poor cash conversion quality. Operating margin deeply negative at -5.4%, suggesting SG&A and operating expenses far exceed gross profit.
What is LPRO's revenue and growth?
Open Lending Corp reported revenue of $93.2M.
Does LPRO pay dividends?
Open Lending Corp does not currently pay dividends.
Where can I find LPRO SEC filings?
Official SEC filings for Open Lending Corp (CIK: 0001806201) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LPRO's EPS?
Open Lending Corp has a diluted EPS of $-0.04.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LPRO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Open Lending Corp has a SELL rating with 75% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LPRO stock overvalued or undervalued?
Valuation metrics for LPRO: ROE of -5.7% (sector avg: 15%), net margin of -4.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy LPRO stock in 2026?
Our dual AI analysis gives Open Lending Corp a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LPRO's free cash flow?
Open Lending Corp's operating cash flow is $-3.2M, with capital expenditures of $56.0K. FCF margin is -3.5%.
How does LPRO compare to other Default stocks?
Vs Default sector averages: Net margin -4.5% (avg: 12%), ROE -5.7% (avg: 15%), current ratio 4.52 (avg: 1.8).