Segment Reporting

The Company has evaluated how it is organized and managed and has identified one operating segment. During the year ended December 31, 2024, the Company’s chief operating decision maker was the Chief Executive Officer and Interim Chief Financial Officer (the "CODM"). The CODM manages the business as a multi-service provider of lending enablement and risk analytics to automotive lenders, coupled with real-time underwriting of loan default insurance and claim administration services. The CODM reviews financial information including operating results and assets on a consolidated basis, accompanied by disaggregated information about the Company’s revenue. For information about how the Company derives revenue, as well as the Company’s accounting policies, refer to Note 2—Summary of Significant Accounting and Reporting Policies. All of the Company’s operations and assets are in the U.S., and all of its revenues are attributable to U.S. customers.

The CODM uses multiple measures of performance including consolidated net income to assess performance, evaluate cost optimization, and allocate financial, capital and personnel resources. These measures are used in the annual operating plan and forecasting process as well as ongoing decisions driven by the monthly reviews of the plan versus actual results. The measure of segment assets is reported on the Company’s Consolidated Balance Sheets as total consolidated assets.

The following table sets forth significant expense categories and other specified amounts included in consolidated net income that are reviewed by the CODM, or are otherwise regularly provided to the CODM, for the years ended December 31, 2024, 2023 and 2022.


	Year Ended December 31,
	2024		2023		2022
	(in thousands)
Revenue
Program fees	$	57,040	$	64,092	$	80,611
Profit share	(43,123)		43,301		90,056
Claims administration and other service fees	10,107		10,067		8,927
Total revenue	24,024		117,460		179,594
Cost of services
Employee compensation and benefits	8,371		7,520		4,102
Share-based compensation	624		684		339
Depreciation and amortization	604		77		—
Other cost of services(1)	14,256		14,001		15,527
Gross profit	169		95,178		159,626
Operating expenses
Employee compensation and benefits	33,661		30,719		31,786
Share-based compensation	8,053		8,808		5,110
Professional fees	9,127		8,468		9,824
IT services	4,357		4,149		3,528
Depreciation and amortization	1,070		1,082		915
Other(2)	9,279		12,877		10,848
Total operating expenses	65,547		66,103		62,011
Operating income (loss)	(65,378)		29,075		97,615
Other income (expense)
Interest expense	(11,317)		(10,661)		(5,832)
Interest income	12,090		10,335		1,995
Other income (expense), net	—		109		(238)
Total other expense, net	773		(217)		(4,075)
Income (loss) before income taxes	(64,605)		28,858		93,540
Income tax expense	70,405		6,788		26,920
Net income (loss)	$	(135,010)	$	22,070	$	66,620

(1) Other cost of services primarily consists of costs incurred to third party partners for partner commissions, fees paid for actuarial services, fees for integration with the loan origination system of automotive lenders and fees paid to credit bureaus and data service providers.

(2) Other operating expenses includes marketing expenses, insurance expenses, travel expenses, meals and entertainment expenses, facilities expenses and business development expenses.

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Open Lending Corp Segments Disclosure

About Segments Disclosures

Other Available Disclosures