Open Lending
LPRO Small CapFinancial Services · Credit Services
Updated: Jul 6, 2026, 22:20 UTC
Price Chart
Key Metrics
Valuation Analysis
About the Company
Open Lending Corporation provides lending enablement and risk analytics solutions to credit unions, regional banks, finance companies, and captive finance companies of automakers in the United States. The company offers lenders protection platform (LPP), which is a cloud-based automotive lending enablement platform that provides loan analytics solutions and automated issuance of credit default insurance with third-party insurance providers. Its LPP products include loan analytics, risk-based loan pricing, risk modeling, and automated decision technology for automotive lenders. The company was founded in 2000 and is headquartered in Austin, Texas.
Open Lending Stock at a Glance
Open Lending (LPRO) is currently trading at $3.13 with a market capitalization of $370.3M. The 52-week range spans from $1.18 to $3.13; the current price is 0% below the yearly high. Year-over-year revenue growth stands at -16.0%.
💰 Dividend
Open Lending currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.
📊 Analyst Rating
4 analysts rate Open Lending (LPRO) on consensus: Hold. The average price target is $2.50, implying -20.13% from the current price. Analyst price targets range from $1.70 to $3.15.
Open Lending: The Investment Case in Detail
Open Lending (LPRO) operates in the Financial Services — specifically Credit Services — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.
The Bull Case
With a gross margin near 77.24%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns.
The Bear Case
Revenue is contracting at -16% year-over-year — until that trend reverses, valuation is exposed to further downgrades. Net margins remain negative, meaning every euro of revenue is still producing losses — the path to profitability is the central question for shareholders. With a beta near 2.2, the share price moves sharply more than the broader market — drawdowns in market corrections can be unusually severe and require strong nerves.
Valuation in Context
The EV/EBITDA multiple of 55.65x reflects rich expectations — historically, multiples at this level have proven hard to maintain for more than a few quarters.
What to Watch Next
- The share is trading at 100% of its 52-week range — a break above the recent high opens technical upside, a failure here often invites profit-taking.
Investment Thesis: Strengths & Weaknesses
- High gross margin of 77.24% — indicates pricing power
- Positive free cash flow
- –Revenue shrinking (-16% YoY)
- –Currently unprofitable
- –High volatility (Beta 2.2)
- –Price near 52-week high — limited upside cushion
Technical Snapshot
Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).
Risk Profile
The data points to above-average price swings, higher leverage relative to equity.
Trading Data
Related Stocks in the Same Sector
Open Lending at 1.85 dollars: the auto-lending analytics platform priced for extinction
The Real Story
Open Lending sells one product: a cloud-based platform (LPP — Lender Protection Program) that helps credit unions, regional banks and captive auto-finance companies underwrite near-prime auto loans more profitably. The LPP scores the borrower, prices the credit-default insurance, and the originator can lend to a customer that would otherwise be rejected. Open Lending takes a fee per loan funded.
The business was a darling 2020 SPAC IPO. Then near-prime auto loans started going bad in 2023 to 2024 (used car prices fell, repayments deteriorated, charge-offs rose), and Open Lending's volume collapsed. The market took the stock from $30 to under $2. Forward P/E 10.9 on consensus $0.17 forward EPS implies a recovery to roughly $80M EBITDA — credible but not certain.
What Smart Money Thinks
Founders Sandy Watkins and Ross Jessup hold ~10 percent combined. No major hedge fund 13F whale. Adams Street Partners and SVB Capital (legacy pre-SPAC PE) have largely exited. Insider buying was minimal in 2024.
Explore the BMI Smart-Money Tracker →
📈 The 3 Real Bull Points
📉 The 3 Real Bear Points
Valuation in Context
At 1.85 USD with negative trailing EPS, the trailing P/E is meaningless. Forward P/E 10.9 prices in modest recovery. P/B 2.9 and P/S 2.5 reflect the SaaS-multiple premium that has not fully compressed. EV/EBITDA 26 is high — the market gives credit for the asset-light model but discounts on near-term volume.
🗓️ Next 3 Catalyst Dates
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💬 Daniel's Take
Open Lending is a high-beta credit-cycle play, not a value stock. The thesis only works if US near-prime auto credit normalizes in 2026 to 2027. If it does not, the stock could go to zero through dilution or restructuring. I size this as a 0.3 to 0.5 percent speculative position in a cyclical-recovery basket — money I can afford to lose. The upside scenario is 200 percent over 24 months; the downside scenario is total loss. Not a core holding.
Sources (3)
Disclaimer: This article is not investment advice. Investing in stocks carries risks, including total loss.
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