Open Lending (LPRO) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 saw a net loss of $144.4 million, driven by an $81.3 million negative profit share revenue adjustment and a $86.1 million deferred tax asset valuation allowance.

• Full year 2024 net loss was $135.0 million, reversing from net income of $22.1 million in 2023, with revenue dropping to $24.0 million from $117.5 million year-over-year.

• Adjusted EBITDA for FY 2024 was $(42.9) million, down from $50.2 million in FY 2023; Q4 2024 Adjusted EBITDA was $(73.1) million.

• Jessica Buss appointed CEO and Chairman, with a focus on data-driven pricing, operational improvements, and profitability; Michelle Glasl named COO.

• Leadership is prioritizing profitable unit economics, refined pricing models, enhanced risk tools, and cost efficiencies.

Financial highlights

• Q4 2024 revenue was $(56.9) million, including an $81.3 million negative change in estimate on profit share revenue, down from $14.9 million in Q4 2023.

• Net loss for Q4 2024 was $144.4 million, compared to $4.8 million in Q4 2023.

• Gross profit turned negative in FY 2024 at $(63.2) million, compared to $95.2 million in FY 2023.

• Fiscal year 2024 certified loans totaled 110,652, with $24 million in revenue.

• Ended Q4 with $296.4 million in total assets, including $243.2 million in unrestricted cash.

Outlook and guidance

• Q1 2025 certified loans expected between 27,000 and 28,000, up sequentially from Q4.

• Leadership will prioritize profitable growth, improved pricing predictability, and cost optimization.

• Further credit tightening and pricing adjustments planned for 2025 to improve loan performance and profitability.

• Focus on profitable unit economics, real-time data-driven pricing, and enhanced predictability in profit share revenue.

• Future investments will focus on the core Lenders Protection Program.