Open Lending Corp gross margin has been in long-term decline. The average rate of decline per year is -1.9%.
The historical rank and industry rank for Open Lending's Gross Margin % or its related term are showing as below:
LPRO'
s Gross Margin % Range Over the Past 10 Years
Min: 81.03 Med: 91.1 Max: 91.59
Current: 81.03
During the past 6 years, the highestGross Margin % of Open Lending was 91.59%. The lowest was 81.03%. And the median was 91.10%.
LPRO's Gross Margin % is ranked better than 80.28% of 355
companies
in the Credit Services industry
Industry Median: 53.89
vs LPRO: 81.03
Open Lending had a gross margin of 64.09% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Open Lending was -1.90% per year.
Open Lending Gross Margin % Historical Data
The historical data trend for Open Lending's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Open Lending's Gross Margin %
For the Credit Services subindustry, Open Lending's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Open Lending's Gross Margin % Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Open Lending's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Open Lending's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Open Lending (NAS:LPRO) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Open Lending had a gross margin of 64.09% for the quarter that ended in Dec. 2023 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Open Lending Gross Margin % Related Terms
Thank you for viewing the detailed overview of Open Lending's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Open Lending Corp is engaged in providing automated lending services to financial institutions. The company offers loan analytics, risk-based pricing, risk modeling, and automated decision technology. Its Lenders Protection Program ("LPP") enables automotive lenders to make loans that are largely insured against losses from defaults.
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