Open Lending Corporation (LPRO)
Valuation Overview•Is Open Lending Corporation Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Fragile underlying quality score of 44/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. However, capital return yields remain modest, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
LPRO struggles with subpar profitability and pressured margins. This is backed by a fortress balance sheet, holding significant net cash ($89M) and minimal debt risk.
The company maintains stable top-line performance paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (-7.2%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $20.5M | +288.0% | — | — | — | |
| EBITDA | $23K | — | -56.0% | — | — | |
| Net Income | -$460K | +96.9% | — | — | — | |
| EPS (Diluted) | $-0.00 | +96.8% | — | — | — | |
| Free Cash Flow | -$546K | -118.6% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 77.2% | 52.4% | 67.5% | 78.0% |
| Operating Margin | -7.2% | -80.3% | -23.4% | 6.3% |
| Net Margin | -5.9% | -182.6% | -88.6% | -45.7% |
| FCF Margin | -0.2% | 45.9% | 48.1% | 44.6% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.01 | $-0.00 | -139.1% | ||
| Q1'26 | $0.02 | $0.01 | -50.0% | ||
| Q4'25 | $0.01 | $0.03 | +200.0% | ||
| Q3'25 | $0.02 | $0.01 | -50.0% | ||
| Q2'25 | $0.01 | $0.01 | +0.0% | ||
| Q1'25 | $0.02 | $-0.49 | -2550.0% | ||
| Q4'24 | $0.05 | $0.01 | -80.0% | ||
| Q3'24 | $0.05 | $0.02 | -60.0% |
Total return is +48.1% (1Y), outperforming the benchmark by +23.1%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +99.4% | +90.1% | — |
| 1Y | +48.1% | +23.1% | — |
| 3YCAGR | -33.0% | -52.5% | — |
| 5YCAGR | -40.0% | -52.6% | — |
| 10YCAGR | -10.7% | -24.4% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Open Lending Corporation (LPRO) valuation, health, and returns.
Based on peer relative multiples, Open Lending Corporation appears Expensive versus peers compared to industry peers.
Open Lending Corporation has multiple valuation anchors: Peer Relative Fair Value: $1.15 | Wall Street Analyst Target: $3.08 (implying -1.0% upside). A convergence of these signals offers higher conviction.
Open Lending Corporation displays fair financial health with a composite quality score of 44/100, supported by a Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 2.3%.
Open Lending Corporation returns capital via buybacks instead of dividends, carrying a 1.3% buyback yield and reducing outstanding shares by -0.5% in the last 12 months.
Open Lending Corporation's current growth trajectory is Stable. The company achieved +288.0% 1Y revenue growth and +96.8% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 12 analysts, beating EPS expectations in 8% of recent quarters with a -2-quarter streak. The consensus price target represents a -1.0% change from current levels.
Investment risks for Open Lending Corporation include: -54.5% 1-year max drawdown, high beta (1.74x market volatility). Volatility risk is characterized by a beta of 1.74x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.