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AUSTIN, Texas - Open Lending Corporation (NASDAQ:LPRO) reported a significant miss on both earnings and revenue for the fourth quarter of 2024, sending shares down 2.5% in after-hours trading.
The lending enablement and risk analytics solutions provider posted a Q4 adjusted loss per share of $1.21, falling well short of analysts’ expectations for earnings of $0.02 per share. Revenue for the quarter came in at -$56.9 million, compared to the consensus estimate of $24.02 million.
The company’s results were heavily impacted by an $81.3 million reduction in estimated profit share revenues related to historic business vintages. This adjustment was primarily due to heightened delinquencies and defaults associated with loans originated between 2021 and 2024.
"The fourth quarter presented significant challenges, particularly in our profit share revenue forecasts," said Jessica Buss, newly appointed CEO of Open Lending. "We’re taking decisive steps to address these issues and strengthen our risk assessment models going forward."
Open Lending facilitated 26,065 certified loans during Q4, slightly down from 26,263 in the same quarter last year. For the full year 2024, the company reported a net loss of $135.0 million, compared to net income of $22.1 million in 2023.
Looking ahead, Open Lending expects total certified loans for Q1 2025 to be between 27,000 and 28,000. The company did not provide specific revenue or earnings guidance for the upcoming quarter.
The stock’s 2.5% decline following the earnings release reflects investor concerns about the company’s performance and outlook amid challenging market conditions.
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