Free cash flow remains highly erratic, swinging from a 108.2% margin in 2023Q4 to a negative 23.7% in 2025Q3, largely driven by volatile working capital adjustments.
| Cash from Operations | 98K | -3.19M | 17.6M | 82.66M | 107.43M | 95.16M | 24.64M | 41.76M | 28.6M | 13.09M |
| Operating CF Margin % | - | -3.43% | 73.25% | 70.37% | 59.82% | 44.12% | 22.63% | 44.98% | 54.8% | 40.43% |
| Operating CF Growth % | 357.69% | -118.15% | -78.71% | -23.06% | 12.9% | 286.19% | -41% | 46.02% | 118.46% | - |
| Net Income | -5.31M | -4.24M | -135.01M | 22.07M | 66.62M | 146.08M | -97.56M | 62.54M | 28.28M | 15.77M |
| Depreciation & Amortization | 2.52M | 2.41M | 1.67M | 1.16M | 915K | 525K | 1.77M | 105K | 80K | 20K |
| Stock-Based Compensation | 5.2M | 7.04M | 8.68M | 9.49M | 5.45M | 3.81M | 2.83M | 1.98M | 2.53M | 1M |
| Deferred Taxes | 70K | 0 | 70.11M | -4.99M | 375K | 20.05M | 4.73M | 0 | 0 | 0 |
| Other Non-Cash Items | 2.19M | 1.25M | 1.26M | 1.06M | 1M | -45.5M | 131.93M | 92K | 30K | -363K |
| Working Capital Changes | -4.56M | -9.66M | 70.89M | 53.86M | 33.07M | -29.82M | -19.06M | -22.96M | -2.32M | -3.34M |
| Change in Receivables | 6.64M | -8.61M | 18.01M | 47.22M | 29.96M | -26.39M | -585K | -1.83M | -443K | -3.86M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | -20.03M | 0 | 0 | 0 |
| Change in Payables | 190K | -507K | 578K | 86K | -996K | -2.16M | 2.1M | 583K | 378K | 0 |
| Cash from Investing | -713K | -1.03M | -3.9M | -2.18M | -624K | -1.99M | -1.2M | -99K | -106K | -48K |
| Capital Expenditures | -811K | -56K | -165K | -123K | -238K | -111K | -1.2M | -99K | -106K | -48K |
| CapEx % of Revenue | 0.91% | 0.06% | 0.69% | 0.1% | 0.13% | 0.05% | 1.1% | 0.11% | 0.2% | 0.15% |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - |
| Investments | 2.38M | 2.89M | 5.09M | 0 | 0 | 0 | 0 | 0 | 278.32M | 0 |
| Other Investing | 98K | -974K | -3.73M | -2.06M | -386K | -1.88M | 0 | 0 | 0 | 0 |
| Cash from Financing | -61.28M | -61.48M | -6.45M | -42.33M | -17.8M | -77.81M | 70.81M | -44.9M | -21.38M | -14.08M |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | -4.89M | -4.89M | 0 | -37.32M | -18.02M | -20M | -37.5M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | -135.6M | -42.4M | -18.88M | -11.79M |
| Share Repurchases | -4.89M | -4.89M | 0 | -37.32M | -18.02M | -20M | -37.5M | 0 | 0 | 0 |
| Other Financing | -677K | -1.1M | -1.76M | -1.26M | -1.19M | -38.62M | 80.42M | 0 | 0 | 0 |
| Net Change in Cash | -61.9M | -65.71M | 7.25M | 38.15M | 89.01M | 15.36M | 94.25M | -3.24M | 7.12M | -1.03M |
| Free Cash Flow | -207K | -3.25M | 17.43M | 80.48M | 106.81M | 93.17M | 23.44M | 41.66M | 28.5M | 13.04M |
| FCF Margin % | -0.23% | -3.49% | 72.56% | 68.52% | 59.47% | 43.2% | 21.53% | 44.87% | 54.6% | 40.28% |
| FCF Growth % | 81.28% | -118.64% | -78.34% | -24.65% | 14.64% | 297.41% | -43.73% | 46.21% | 118.45% | - |
| FCF per Share | -0.00 | -0.03 | 0.15 | 0.66 | 0.85 | 0.74 | 0.28 | 1.11 | 0.31 | 0.42 |
| FCF Conversion (FCF/Net Income) | 0.04x | 0.75x | -0.13x | 3.75x | 1.61x | 0.65x | -0.25x | 0.67x | 1.01x | -426.70x |
| Interest Paid | 4.66M | 0 | 0 | 10.31M | 3.52M | 5.24M | 10.44M | 0 | 346K | 0 |
| Taxes Paid | 73K | 0 | 0 | 9.07M | 36.11M | 25.28M | 144K | 0 | 37K | 0 |
Accounting-driven cash flow volatility
As reported in recent financial statements, LPRO's operating cash flow to net income ratio has fluctuated wildly, reaching a low of -6.22 in 2025Q1, which suggests that reported earnings are frequently decoupled from actual cash generation due to significant non-cash accruals and contract asset adjustments.
The extreme variance in the OCF/NI ratio indicates that net income is a poor proxy for the company's underlying cash-generating capacity. Investors should monitor whether these accruals represent sustainable future cash inflows or merely accounting estimates that may require future downward revisions.
Based on historical cash flow data, LPRO's free cash flow trajectory remains highly erratic, with margins swinging from a peak of 108.2% in 2023Q4 to a negative 23.7% in 2025Q3, reflecting the inherent instability of a business model reliant on periodic profit-share recognition.
The inability to maintain a consistent positive FCF margin suggests that the company's cash flow is highly sensitive to the timing of loan originations and subsequent insurance claim performance. This volatility warrants further investigation into whether the firm can achieve self-sustaining cash flow without relying on external financing.
According to quarterly cash flow filings, working capital changes have been the primary driver of cash flow variance, including a massive $72.4 million inflow in 2024Q4 followed by a $7.3 million outflow in 2025Q1, highlighting the company's exposure to timing differences in contract asset realization.
These large swings in working capital suggest that the company's cash position is heavily influenced by the timing of payments from insurance partners and the settlement of contract assets. Such fluctuations may indicate that the firm's liquidity is more dependent on accounting cycle timing than operational efficiency.
As indicated by the cash flow statement, stock-based compensation remains a consistent non-cash expense, averaging over $1.5 million per quarter, which effectively masks the true cash cost of talent required to maintain the company's proprietary actuarial and technical infrastructure.
While SBC is a standard non-cash add-back, its persistence in the face of negative net margins suggests that the company is relying on equity dilution to retain key personnel. This practice may be obscuring the true operational cash burn rate and warrants careful scrutiny by long-term investors.
Quick answers to the most common questions about buying LPRO stock.
Open Lending Corporation (LPRO) generated $-3.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Open Lending Corporation (LPRO) reported negative free cash flow of $3.3M in 2025, indicating capital requirements exceeded cash from operations.
Open Lending Corporation (LPRO) spent $0.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Open Lending Corporation (LPRO) spent $4.9M on share repurchases. This shows the company's commitment to returning capital to its equity investors.