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The company reported a negative quarterly revenue of $56.9 million, compared to $14.9 million a year earlier.
Open Lending Corp (LPRO) stock fell 17.8% in extended trading on Monday after the company reported a bigger fourth-quarter loss.
The company reported a negative quarterly revenue of $56.9 million, compared to $14.9 million a year earlier. According to FinChat data, Wall Street expected it to post a positive revenue of $23.7 million during the reported quarter.
The auto industry-focused insurance analytics firm posted a net loss of $144.4 million, or $1.21 per share, for the fourth quarter, compared to a loss of $4.8 million, or $0.04 per share, in the year-ago quarter.
Open Lending said its fourth-quarter earnings were hit after it recorded a valuation allowance of $86.1 million on its deferred tax assets, which increased its income tax expense.
Adjustments attributable to its profit share revenue forecast hit its revenue, resulting in a negative change in estimate of $81.3 million.
The Austin, Texas-based company said this was primarily due to heightened delinquencies and corresponding defaults associated with loans originated in 2021 through 2024.
The company facilitated 26,065 certified loans during the fourth quarter, compared to 26,263 certified loans in the year-ago quarter.
For the first quarter, the company expects total certified loans to be between 27,000 and 28,000.
Open Lending also named board chair Jessica Buss its interim chief executive officer.
Buss would replace Chuck Jehl, who will continue to serve as interim chief financial officer and board member.
Retail sentiment on Stocktwits remained in the ‘neutral’ (46/100) territory, while retail chatter rose slightly higher but remained in the ‘normal’ (54/100) zone.
One trader posted the company’s earnings and described its quarter as challenging.
Open Lending shares have fallen 54.2% year-to-date (YTD).
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