Open Lending Q3 2025 slides: revenue grows 3% despite 13% drop in certified loans

Introduction & Market Context

Open Lending Corp (NASDAQ:LPRO) released its Q3 2025 earnings presentation on November 6, 2025, revealing a complex financial picture as the company navigates a challenging auto lending environment. The presentation showed modest revenue growth despite a significant decline in loan certification volume, highlighting the company’s strategic shift toward higher-quality lending partnerships and improved unit economics.

Following the earnings announcement, Open Lending’s stock fell 8.52% in after-hours trading to $1.76, significantly below its 52-week high of $6.855, as investors reacted to the company’s net loss and ongoing volume challenges.

Quarterly Performance Highlights

Open Lending reported Q3 2025 revenue of $24.2 million, a 3% increase from $23.5 million in Q3 2024, despite a 13% year-over-year decrease in certified loans. The company’s Adjusted EBITDA rose to $5.6 million, up 24.4% from $4.5 million in the prior year, with margin expanding from 19% to 23%.

As shown in the following financial highlights chart:

However, the company posted a net loss of $7.6 million for the quarter, compared to net income of $1.4 million in Q3 2024, primarily due to an $11 million non-recurring expense. The presentation revealed total certified loans of 23,880 for Q3 2025, down from 27,435 in the same period last year.

Detailed Financial Analysis

Open Lending’s financial results show a strategic pivot toward higher-margin business despite lower volumes. Program fee revenue declined to $13.3 million from $14.2 million year-over-year, while profit share revenue increased to $8.5 million from $6.8 million. The company’s average profit share revenue per certification decreased to $310 from $502 in Q3 2024, but this was offset by an increase in average program fee revenue per certification to $558 from $516.

The detailed income statement reveals significant changes in operating expenses, with general and administrative expenses more than doubling to $21.1 million from $9.6 million in Q3 2024:

The reconciliation to non-GAAP measures shows the impact of the $11 million non-recurring expense on the company’s bottom line, explaining the difference between the net loss and the positive Adjusted EBITDA:

Strategic Initiatives & Channel Mix

Open Lending’s presentation highlighted a strategic shift in its business mix, with an increasing focus on credit union and bank partnerships. The company reported that 89.8% of its Q3 2025 certifications came from the CU/Bank channel, up significantly from previous quarters, while OEM channel certifications declined to just 10.2%.

This channel mix evolution is clearly illustrated in the following chart:

The company’s loan origination mix by segment shows a continued decline in OEM volumes and a slight recovery in refinance volumes as interest rates begin to decline. The portfolio remains predominantly focused on used vehicles, which represented 87.5% of total certifications in Q3 2025:

Open Lending also reported progress in reducing exposure to higher-risk segments, with credit builder loans decreasing to 6.3% in Q3 2025 from 13.0% in Q4 2023. This reflects the company’s disciplined underwriting approach and focus on loan quality over volume.

Forward-Looking Statements

While the presentation focused primarily on Q3 results, the earnings call transcript revealed that Open Lending projects certified loans volume of 21,500 to 23,500 for Q4 2025. The company also announced the launch of a new platform, Apex One Auto, targeting a $500 million market opportunity, which was not detailed in the presentation slides.

CEO Jessica Boss expressed optimism about the company’s future, stating, "We believe we are well positioned for renewed growth in 2026," highlighting the strategic focus on innovation and market expansion. Meanwhile, CFO Massimo Monaco emphasized cost control as a priority moving forward.

Despite the current challenges in loan volume, Open Lending’s facilitated loan origination volume remained substantial at $701.7 million for Q3 2025, with average loan size increasing to $29,384:

The company’s comprehensive key performance indicators provide additional context for its strategic positioning and operational execution:

Open Lending faces ongoing challenges in the auto lending market, including vulnerabilities in near and non-prime borrowers and broader economic pressures. However, the company’s focus on higher-quality loans, improved unit economics, and strategic channel partnerships suggests a deliberate approach to navigating the current environment while positioning for future growth.

Full presentation:

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