Good afternoon, and welcome to the Open Lending Second Quarter 2025 Earnings Conference Call. As a reminder, today's conference call is being recorded. On the call today are Jessica Buss, Chairman of the Board of Directors and Chief Executive Officer; and Matthew Sather, Chief Underwriting Officer, who will both be available for Q&A section of the call. I'd like to pass the call over to Ryan Gardella, Investor Relations, to read the safe harbor statement.

Thank you. I appreciate you joining us. Prior to the start of this call, the company posted the second quarter 2025 earnings release and supplemental slides to its Investor Relations website. In the release, you will find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures discussed on this call. Before we begin, I would like to remind you that this call may contain estimates and other forward-looking statements that represent the company's view as of today, August 6, 2025. Open Lending disclaims any obligation to update these statements to reflect future events or circumstances. Please refer to today's earnings release and our filings with the SEC for more information concerning factors that could cause actual results to differ from those expressed or implied with such statements. And now I will pass the call over to Jessica to give an update on the business and financial results for the second quarter 2025.

Thank you. Good afternoon, everyone, and thank you for joining us today. This marks my third earnings call as CEO, and I am pleased to report on our results for the second quarter, which we believe are starting to reflect the progress we are making in executing our strategy for the business. While we are encouraged by the impact our actions are making on the early results from our changes, we believe that 2026 will truly demonstrate the full financial impact of our initiatives. Before we get into my comments and results, I will start by thanking Open Lending employees for all the work and efforts, which contributed to the solid and positive momentum in our results and execution. When I first stepped into this role, I laid out a clear vision with 4 priorities. First, we would focus on profitable and less volatile unit economics. Second, we would increase our service level to improve customer retention and demonstrate value through the life cycle of the loan. Third, we would streamline the business by eliminating unnecessary costs and refocus our investments on our core capabilities. And fourth, we would enable a culture of accountability and empower our employee base. I'm happy to report that we've made substantial progress on all 4 of these priorities in the quarter, and we're going to continue pushing the business and our results forward. As part of our third initiative, we are optimizing efficiencies and reducing expenses to put us in a position where our program and TPA fees support our expense structure. I will also discuss progress in that area. I want to start by reaffirming our belief in the value proposition provided to our customers by our signature Lenders Protection program, which we believe is the industry-leading solution for pricing and decisioning near…

[Operator Instructions] We'll move to John Davis with Raymond James.

Just first off, what drove the early extension with AmTrust? Just curious, did you guys go to them and say, "Hey, we want to extend"? Did they come to you? Just obviously, 3 years early extension was a little bit surprising. So just curious kind of the back story on what drove that extension.

Yes. Thanks, John, for the question. This is Jessica. AmTrust actually came to us wanting to extend the agreement. Again, we have a very long-standing partnership with them. I think it was just an important signal to the market given everything that has happened in the last couple of quarters that they stood behind us, and we were really glad that they approached us and happy to enter the extension. Again, at the same terms that the previous agreement was at and covering all the same sectors, OEMs, banks and credit unions.

Okay. No, that's great to hear. And then just -- you had the first kind of positive profit share CIE since, I think, 1Q of '23. Is that a signal that you guys feel pretty good that a lot of the negative adjustments have been taken and are behind us at this point that you've kind of worked through the troubled '21 and '22 vintages. Just obviously, you can't predict the future, but just thoughts there. I mean, I think it's a very positive sign that we're going in the right direction for the first time in a couple of years. But anything bigger picture that we should be aware of or any thoughts on the CIE this quarter and going forward?

Sure. I think, obviously, we all view that as a positive that we had the positive adjustment. I think as I've mentioned on previous calls that we should always expect some minor ups and downs as we run our prior book through the back book through our models and things change in the macroeconomic environment. But we did see 2 things I did mention on the call that were positive. One is a lower frequency in claims versus what we expected and an increase in the MUVVI at 206.9%, which helped reduce projected severity across the claims. So as long as those things continue, we feel good about where our back book is. But as you mentioned, certainly, things can change moving forward. But sort of our largest years, as we get further out from our largest years and we have those further developed, we feel better about where those sit.

Okay. Great. And then last one for me. Just the 3Q cert guide. Jessica, you've been very clear about steps you're taking to put higher quality, lower-risk certs on the books. So curious, as we look at the year-over-year decline, I think it was down 8%, certs around 8% in the second quarter and the midpoint is roughly down 14% in 2Q. Is that delta and kind of deceleration? Is that demand related? Is that your controls and kind of your restriction on higher quality certs? Just trying to understand kind of the puts and takes between the demand environment, also credit union's willingness and ability. I think you mentioned that loan-to-value -- or sorry, loan-to-deposit ratios have improved. Their balance sheets are better. But just trying to understand the supply/demand and what you're kind of restricting to do higher quality certs, like what that environment looks like and the push and pull there?

Sure. Yes. I would say the largest sort of put and take in that formula is our decrease in OEM business, which is a result of rate increases and tighter underwriting standards as they also have the largest amount of OSC files that we now are writing 0 of. As we bring on OEM 3, of course, we would expect and hope that in 2026, we start to see an increase in our OEM cert volume. In terms of credit unions, we still do see a demand there. We're actually seeing an increase -- a significant percentage increase, although it's a small part of our overall portfolio in the refi channel as we've seen interest rate drops and just in general, just sort of that bubble that's likely to break in terms of refi, and we're working to be even more refi ready, as I would call it, as we move into what I would consider to be an environment where we think that there's a good opportunity for us to capitalize on that channel. But in terms of overall credit union demand, I would say that it is good or better than it was before. And really, this has come down to making sure, again, we have better quality over quantity to position us. And I think I mentioned in the call, hopefully, that we're at the bottom of the inflection point of getting there and that we'll be in a position to be in a growth mode in 2026.

[Operator Instructions] It appears that we have no further questions at this time. I would now like to turn the program back over to Jessica Buss for any additional or closing remarks.

We appreciate your interest and support, and I'd like to again thank all of the team members at Open Lending for your hard work and dedication to our company. Thanks, and have a great day.

Thank you. Ladies and gentlemen, that does conclude today's program. We thank you for your participation. You may disconnect at this time.