Open Lending Corp (NASDAQ: LPRO)

Open Lending Corp is a leading provider of lending enablement and risk analytics, specializing in the automotive finance industry. The company offers solutions that facilitate automotive consumer loans for underserved near-prime and non-prime borrowers. Through its flagship product, the Lenders Protection Platform (LPP), Open Lending Corp enables automotive lenders to assess credit risk and provide loans with attractive risk-return profiles. The company has accumulated approximately 25 years of proprietary data and developed over two million unique risk profiles, serving 450 active lenders.

Open Lending Corp generates revenue through a multi-faceted business model. The primary revenue streams include program fees paid by automotive lenders for using LPP, profit-sharing with insurance partners that provide default insurance, and fees for claims administration services. In 2025, the average program fee was $558 per loan, and the average profit share revenue per loan was $298. The company also launched ApexOne Auto, an advanced decisioning platform that supports loans made to prime borrowers, further diversifying its revenue streams.

• Lenders Protection Platform (LPP): This cloud-based automotive lending enablement platform supports loans made to near-prime and non-prime borrowers. LPP uses risk-based pricing models to assess credit risk and determine the appropriate insurance premium for loan applications. It supports the full transaction lifecycle, including credit application, underwriting, real-time insurance approval, settlement, servicing, invoicing of insurance premiums and fees, and advanced data analytics. LPP is powered by a unique database that drives risk decisioning using data accumulated over approximately 25 years.

• ApexOne Auto: Launched in November 2025, ApexOne Auto is an advanced decisioning platform that supports loans made to prime borrowers. Like LPP, it uses risk-based pricing models to arrive at an all-inclusive interest rate for a loan customized to each automotive lender. However, unlike LPP, default insurance is not provided in connection with loans facilitated through ApexOne Auto.

Open Lending Corp operates in a competitive industry, facing competition from providers of credit decisioning and underwriting software, loan origination system providers, and third-party lending-as-a-service companies. The company's competitive advantages include its proprietary technology, extensive data accumulated over 25 years, and a robust ecosystem that integrates various parties in the automotive lending marketplace. Open Lending Corp's unique solution combines lending enablement, risk analytics, auto loan performance data, real-time loan decisioning, risk-based pricing, and auto loan default insurance, which has not been directly replicated by competitors.

The company's customer base includes credit unions, regional banks, finance companies, and OEM captive finance companies. These automotive lenders rely on Open Lending Corp to assist in insuring against loan defaults by pairing them with highly rated insurance companies. The company supports new and used automotive loans originated through various channels, including direct loans, indirect loans through auto dealers, and targeted refinance programs. Through its innovative platforms and comprehensive solutions, Open Lending Corp aims to make the near-prime and non-prime automotive lending market more competitive, resulting in more attractive loan terms for borrowers.