Open Lending (LPRO) Q2 2025 earnings summary

Executive summary

• Facilitated 26,522 certified loans in Q2 2025, down from 28,963 year-over-year, reflecting a strategic shift toward higher-quality, more profitable originations and a decrease in loan volume.

• Total revenue for Q2 2025 was $25.3 million, down from $26.7 million in Q2 2024, as the business prioritized risk management and cost control.

• Net income declined to $1.0 million from $2.9 million year-over-year, with operating income and adjusted EBITDA also decreasing.

• Early extension of AmTrust partnership through 2033 secures insurance capacity and signals partner confidence.

• Share repurchase program authorized up to $25 million, with $4 million spent in Q2 2025 to repurchase shares at $2.00 per share.

Financial highlights

• Q2 2025 revenue was $25.3 million, down 5% year-over-year; net income was $1.0 million, down 64% year-over-year.

• Adjusted EBITDA was $4.1 million (margin 16%), down from $6.8 million (margin 25%) year-over-year.

• Gross profit for Q2 2025 was $19.8 million, down from $21.0 million year-over-year.

• Operating expenses rose to $18.6 million, including one-time severance charges.

• Average loan size per certified loan increased to $29,535 in Q2 2025.

Outlook and guidance

• Q3 2025 certified loans expected between 22,500 and 24,500, indicating a further decrease in loan volume.

• 2025 is viewed as a transition year, with growth expected to resume in 2026 as strategic initiatives mature and underwriting improves.

• Management expects operating expenses to decrease as a percentage of revenue in the near term.

• Existing cash resources and revolving credit facility expected to provide sufficient liquidity for near-term working capital needs.