Citizens reiterates Market Perform rating on Open Lending stock

Investing.com - Citizens has reiterated its Market Perform rating on Open Lending (NASDAQ:LPRO) following the company’s third-quarter 2025 results released last Thursday. The stock, currently trading at $1.53, has fallen 13.07% over the past week and 75.71% over the last year, according to InvestingPro data.

The financial services company reported moderately improving unit economics compared to the lows experienced at the end of 2024 as it continues rebuilding its underwriting models. Certified loan volume aligned with management’s guided range for the quarter. Despite recent struggles, InvestingPro analysts expect Open Lending to return to profitability this year with an EPS forecast of $0.02 for FY2025, though the company suffers from weak gross profit margins (-36.75%).

Open Lending provided fourth-quarter volume guidance suggesting sequential stability when accounting for seasonality, though projected volumes remain down approximately 14% at the midpoint of guidance compared to the previous year.

The company recently launched Apex One Auto, a new product potentially allowing it to expand into higher credit spectrum markets, though Citizens expressed uncertainty about the product’s appeal to prime lenders.

Despite signs of business stabilization, Citizens views the shares as fairly valued at approximately 3.5 times its updated 2026 adjusted EBITDA forecast, citing concerns about limited detailed guidance, depressed volume outlook, questions regarding total addressable market, and uncertainty about whether new underwriting and pricing models can restore previous volume and profitability levels.

In other recent news, Open Lending Corp reported its financial results for the third quarter of 2025, showing a 3% year-over-year increase in total revenue, reaching $24.2 million. Despite the revenue growth, the company experienced a net loss of $7.6 million, a significant change from the net income of $1.4 million reported in the same quarter the previous year. This financial performance has drawn attention from investors and analysts alike. The earnings announcement has led to discussions regarding the company’s future guidance and financial health. Analyst firms have been evaluating the company’s prospects, although specific upgrades or downgrades were not mentioned in the recent reports. Open Lending’s financial results have become a focal point for investors assessing the company’s current trajectory. These developments highlight the challenges and opportunities facing Open Lending as it navigates the changing financial landscape.

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