Open Lending (LPRO) investor relations material

Executive summary

• Facilitated 21,064 certified loans in Q1 2026, down from 27,638 in Q1 2025, but exceeded guidance with a strategic focus on higher quality segments and operational discipline.

• Applications grew 18% year-over-year, but approval rates declined due to a deliberate pullback from higher-risk borrowers.

• Profit share unit economics improved to $363 per certified loan, up from $278 in Q1 2025.

• Adjusted EBITDA was $2.0 million, down from $3.2 million in Q1 2025.

• Net loss was $0.5 million versus net income of $0.6 million in Q1 2025.

Financial highlights

• Total revenue was $20.5 million, down from $24.4 million in Q1 2025, primarily due to lower certified loan volumes and a $0.7 million negative profit share adjustment.

• Gross profit was $15.6 million, down from $18.3 million year-over-year, with gross margin stable at 76%.

• Operating expenses were $16.3 million, down 7% year-over-year.

• Adjusted EBITDA margin was 10% in Q1 2026, down from 13% in Q1 2025.

• Cash flow from operations was negative $0.8 million, mainly due to timing of incentive payments.

Outlook and guidance

• Q2 2026 certified loan guidance: 22,000–25,000; full-year guidance: 100,000–110,000 certified loans.

• Full-year adjusted EBITDA expected between $25 million and $29 million.

• Anticipates volume acceleration in Q3 and Q4, driven by OEM 3 ramp and strong credit union channel.

• Management expects cost-saving initiatives to reduce expenses in the near term.

• Existing cash resources and revolving credit facility expected to provide sufficient liquidity for at least the next 12 months.