OPENLANE, Inc.

Total revenues were $561 million, up 13% year over year. Consolidated Adjusted EBITDA was $107 million, up 23%, and cash from operations was $97 million, up 34%. Marketplace GMV was $10.0 billion, up 38%; dealer GMV was $2.6 billion, up 5%; commercial GMV was $7.5 billion, up 55%. Auction and related revenues were $253 million, up 18%; SaaS and other revenues were $74 million, up 13%; purchased vehicle sales were $119 million, up 10%. Marketplace Adjusted EBITDA was $58 million with a 13% margin, up 33% and 170 basis points year over year. Finance segment Adjusted EBITDA was $49 million, up 13%; average receivables managed were $2.70 billion, up 13%; net finance margin was 12.7%, down 70 basis points; and annual provision for credit losses was 1.14%, 48 basis points lower than last year. Trailing 12-month adjusted free cash flow was $345 million, and adjusted free cash flow conversion was 90%, or 75% excluding a one-time securitization renewal benefit. Management tightened full-year 2026 Adjusted EBITDA guidance to $390 million-$400 million from $385 million-$400 million. They also said Q4 typically has the most EBITDA variability, expect a normal seasonal dip in U.S. dealer volumes, anticipate the loan loss rate moving to the low end of the 1.5%-2.0% target range, and increased incremental go-to-market investment in the back half of 2026 to low double-digit millions of new spend.

Peter Kelly framed the quarter as proof that OPENLANE is outperforming a mixed industry backdrop, with gains in share, buyer/seller engagement, and customer value. He emphasized three strategy pillars: the best marketplace, best technology, and best customer experience, and pointed to stronger activation of AFC dealers, rising private-label participation, and product improvements such as faster onboarding and enhanced vehicle data. His tone was confident and constructive, but he acknowledged near-term dealer conversion pressure from falling used vehicle values and said Canada remains challenged.

Brad Herring focused on the quarter’s financial leverage and balance-sheet strength. He cited $561 million of revenue, $107 million of Adjusted EBITDA, $345 million of trailing 12-month adjusted free cash flow, and $245 million of unrestricted cash, plus over $400 million of revolver capacity. He explained that the 90% free cash flow conversion was boosted by a $58 million securitization renewal benefit, that the core conversion was 75% excluding that one-time item, and that the board raised the stock repurchase authorization from $250 million to $400 million. He also noted continued margin pressure in finance from higher vehicle values, with a 12.7% net finance margin and a likely move in credit losses to the low end of the 1.5%-2.0% range.

Analysts focused on the rationale for pulling forward and increasing go-to-market spend, the timing of off-lease flow benefits, competition after a rival’s acquisition, and the drivers of dealer growth. Management said the extra spend is mainly pulled forward from the 2027 plan into Q4 to add sales and operations headcount in the U.S. dealer-to-dealer channel, where OPENLANE is already around 10% share and seeing strong momentum. On off-lease, management said maturities are rising now and should increase through 2027 and into 2028, with commercial yields expected to improve gradually over years rather than quarters. They also said they have not yet seen meaningful behavior changes from the newly acquired competitor. In dealer and commercial conversion, management said falling used values have pressured dealer conversion rates, while commercial open-sale conversion rates have reached record levels.