Open Lending Corporation has announced significant accounting issues related to its profit share revenue and related contract assets, impacting its financial standing. On March 17, 2025, the company disclosed it would be unable to timely file its Annual Report for 2024, citing the need for additional time to finalize its accounting and review processes. This revelation caused a 9% drop in its share price, closing at $3.91. Subsequently, on March 31, 2025, Open Lending released its financial results, reporting a negative quarterly revenue of $56.9 million due to an $81.3 million reduction in estimated profit share revenues. The company attributed this to the deterioration of its 2021 and 2022 loan vintages and underperformance in its 2023 and 2024 vintages, driven by heightened delinquencies and defaults. The announcement has resulted in a major securities class action lawsuit against the company.
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