OPENLANE, Inc. Reports First Quarter 2026 Financial Results
Rhea-AI Summary
OPENLANE (NYSE: OPLN) reported Q1 2026 results: revenue $528M (+15% YoY), GMV ~$9.1B (+32% YoY), net income $49M (+33% YoY), Adjusted EBITDA $97M (+17% YoY), and operating cash flow $160M (+30% YoY). Marketplace vehicle sales grew mid-to-high teens with commercial volume up 25% YoY and dealer volume up 13% YoY. The company raised full-year guidance across net income, Adjusted EBITDA and per-share metrics on May 5, 2026.
AI-generated analysis. Not financial advice.
Positive
- Revenue +15% YoY to $528M
- GMV ~$9.1B, +32% YoY
- Adjusted EBITDA $97M, +17% YoY
- Operating cash flow $160M, +30% YoY
- Raised 2026 guidance for net income and Adjusted EBITDA ranges
Negative
- Interest expense rose to $10.1M from $4.0M year-over-year
- Trade receivables increase to $415.7M (working capital build)
- Provision for credit losses increased to $10.3M
News Market Reaction – OPLN
On the day this news was published, OPLN gained 10.29%, reflecting a significant positive market reaction. Argus tracked a peak move of +8.2% during that session. Our momentum scanner triggered 48 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $358M to the company's valuation, bringing the market cap to $3.84B at that time. Trading volume was above average at 1.8x the daily average, suggesting increased trading activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
No peer stocks from the Auto & Truck Dealerships group were flagged in the momentum scanner, suggesting the move in OPLN reflects company-specific factors rather than a sector-wide rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 18 | Annual results | Positive | +0.3% | Reported 2025 growth with strong cash flow and introduced 2026 financial guidance. |
Limited earnings history in the last six months shows a small positive price reaction to prior results, suggesting earnings news has previously been received modestly positively.
Recent news for OPENLANE centers on financial performance and capital markets visibility. On Feb 18, 2026, the company reported 2025 results with $1.935B revenue, $333M Adjusted EBITDA, and 2026 guidance for net income of $130–$147M and Adjusted EBITDA of $350–$370M, which saw a modest 0.28% positive reaction. Today’s Q1 2026 earnings and guidance raise build directly on that framework.
Historical Comparison
In the past 12 months, OPENLANE released 1 earnings-focused update with an average next-day move of 0.28%. This Q1 2026 earnings release, featuring higher full-year guidance, extends the pattern of fundamentally positive, but historically modestly rewarded, earnings catalysts.
The company moved from reporting strong full-year 2025 results and initial 2026 guidance in February to Q1 2026 results with higher net income and Adjusted EBITDA guidance, indicating progression against its stated 2026 financial targets.
Market Pulse Summary
The stock surged +10.3% in the session following this news. A strong positive reaction aligns with solid Q1 fundamentals, including revenue of $527.9M, net income of $48.9M and Adjusted EBITDA of $96.7M, alongside higher 2026 net income and EBITDA guidance. Historical earnings news previously produced only a 0.28% move, so any large gain would mark a departure from past modest responses and could be sensitive to changing macro conditions or execution risks.
Key Terms
adjusted ebitda financial
ebitda financial
free cash flow financial
adjusted free cash flow financial
operating adjusted eps financial
series a preferred stock financial
saas technical
obd2 technical
AI-generated analysis. Not financial advice.
- Marketplace commercial vehicles sold growth of
25% YoY - Marketplace dealer vehicles sold growth of
13% YoY - Gross Merchandise Value (GMV) of approximately
$9.1 billion 32% YoY growth - Revenue of
$528 million 15% YoY growth, driven by22% growth in auction and related fees - Net income of
$49 million 33% YoY growth - Adjusted EBITDA of
$97 million 17% YoY growth - Cash flow from operating activities of
$160 million 30% YoY growth
"OPENLANE started 2026 strong, growing consolidated revenue by
"OPENLANE's first quarter performance is compelling evidence to the scalability of our business model and the differentiated value OPENLANE provides in the market," said Brad Herring, CFO of OPENLANE. "Our US dealer business continued to accelerate, our finance business responsibly balanced growth and risk, and we are still in the infancy stages of the off-lease volume return. And while no industry is immune to macroeconomic or geopolitical impacts, we remain confident in our ability to execute our plan and deliver on our increased full year guidance."
2026 Guidance
The company is updating its annual guidance to the following:
Previous Guidance (February 18, 2026) | Revised Guidance (May 5, 2026) | ||
Net income (in millions) | |||
Adjusted EBITDA (in millions) | |||
Net income per share - diluted * | |||
Operating Adjusted EPS |
* The company uses the two-class method of calculating net income per diluted share. Under the two-class method, net income is adjusted for dividends (including deemed dividends) and undistributed earnings (losses) to the holders of the Series A Preferred Stock. The weighted average diluted shares used in the net income per diluted share calculation assumes conversion of the remaining preferred shares to common shares in June 2026. |
Earnings guidance does not contemplate future items such as business development activities, strategic developments (such as restructurings, spin-offs or dispositions of assets or investments), contingent purchase price adjustments, significant expenses related to litigation, tax adjustments, adverse changes in the value of foreign currencies relative to the
Earnings Conference Call Information
OPENLANE will be hosting an earnings conference call and webcast on Tuesday, May 5, 2026 at 8:30 a.m. ET. The conference call may be accessed by calling 1-833-634-2155 and asking to join the OPENLANE call. A live webcast will be available at the investor relations section of corporate.openlane.com. Supplemental financial information for OPENLANE's first quarter 2026 results is available at the investor relations section of corporate.openlane.com.
The archive of the webcast will be available following the call at the investor relations section of corporate.openlane.com for a limited time.
About OPENLANE
OPENLANE, Inc. (NYSE: OPLN) makes wholesale easy by connecting the leading automotive manufacturers, dealers, rental companies, fleet operators, captive finance and lending institutions as buyers and sellers to create the most advanced digital marketplace for used vehicles. Our innovative products and services deliver a fast, fair and transparent experience that helps customers make smarter decisions and achieve better outcomes. Headquartered in
Forward-Looking Statements
Certain statements contained in this release include, and the company may make related oral, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and which are subject to certain risks, trends and uncertainties. In particular, statements made that are not historical facts (including but not limited to statements regarding our growth opportunities and strategies, industry outlook, competitive position, business and investment plans and initiatives, the impact of macroeconomic conditions, tariffs and global trade policy, and 2026 financial guidance) may be forward-looking statements. Words such as "should," "may," "will," "would," "anticipate," "expect," "project," "intend," "contemplate," "plan," "believe," "seek," "estimate," "assume," "can," "could," "continue," "of the opinion," "confident," "is set," "is on track," "outlook," "target," "position," "predict," "initiative," "goal," "opportunity" and similar expressions identify forward-looking statements. Such statements are based on management's current assumptions, expectations and/or beliefs, are not guarantees of future performance and are subject to substantial risks, uncertainties and changes that could cause actual results to differ materially from the results projected, expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the section entitled "Risk Factors" in the company's annual and quarterly periodic reports, and in the company's other filings and reports filed with the Securities and Exchange Commission. The forward-looking statements are made as of the date of this release. The company undertakes no obligation to update any forward-looking statements.
OPENLANE, Inc. Condensed Consolidated Statements of Income (In millions, except per share data) (Unaudited) | |||
Three Months Ended March 31, | |||
2026 | 2025 | ||
Operating revenues | |||
Auction and related fees | $ 241.8 | $ 198.9 | |
SaaS and other revenue | 67.5 | 66.6 | |
Purchased vehicle sales | 112.2 | 85.7 | |
Finance revenue | 106.4 | 108.9 | |
Total operating revenues | 527.9 | 460.1 | |
Operating expenses | |||
Cost of services (exclusive of depreciation and amortization) | 271.7 | 241.6 | |
Finance interest expense | 24.8 | 27.6 | |
Provision for credit losses | 10.3 | 9.3 | |
Selling, general and administrative | 124.4 | 107.2 | |
Depreciation and amortization | 22.9 | 22.7 | |
Total operating expenses | 454.1 | 408.4 | |
Operating profit | 73.8 | 51.7 | |
Interest expense | 10.1 | 4.0 | |
Other income, net | (1.6) | (5.0) | |
Income before income taxes | 65.3 | 52.7 | |
Income taxes | 16.4 | 15.8 | |
Net income | $ 48.9 | $ 36.9 | |
Amounts attributable to common stockholders | |||
Net income | $ 48.9 | $ 36.9 | |
Series A Preferred Stock dividends | (5.3) | (11.1) | |
Net income attributable to participating securities | (6.0) | (6.4) | |
Net income attributable to common stockholders | $ 37.6 | $ 19.4 | |
Net income per share | |||
Basic | $ 0.35 | $ 0.18 | |
Diluted | $ 0.35 | $ 0.18 | |
OPENLANE, Inc. Condensed Consolidated Balance Sheets (In millions) (Unaudited) | |||
March 31, 2026 | December 31, 2025 | ||
Cash and cash equivalents | $ 180.1 | $ 141.5 | |
Restricted cash | 36.8 | 43.9 | |
Trade receivables, net of allowances | 415.7 | 314.1 | |
Finance receivables, net of allowances | 2,444.3 | 2,425.4 | |
Other current assets | 128.1 | 86.7 | |
Total current assets | 3,205.0 | 3,011.6 | |
Goodwill | 1,239.8 | 1,243.5 | |
Customer relationships, net of accumulated amortization | 98.4 | 102.7 | |
Operating lease right-of-use assets | 57.5 | 57.9 | |
Property and equipment, net of accumulated depreciation | 100.3 | 104.2 | |
Intangible and other assets | 198.5 | 204.4 | |
Total assets | $ 4,899.5 | $ 4,724.3 | |
Current liabilities, excluding obligations collateralized by finance receivables and current maturities of debt | $ 1,048.6 | $ 840.1 | |
Obligations collateralized by finance receivables | 1,693.2 | 1,758.3 | |
Current maturities of debt | 24.9 | 5.5 | |
Total current liabilities | 2,766.7 | 2,603.9 | |
Long-term debt | 529.7 | 530.1 | |
Operating lease liabilities | 52.7 | 53.0 | |
Other non-current liabilities | 7.0 | 6.8 | |
Temporary equity | 289.8 | 289.8 | |
Stockholders' equity | 1,253.6 | 1,240.7 | |
Total liabilities, temporary equity and stockholders' equity | $ 4,899.5 | $ 4,724.3 | |
OPENLANE, Inc. Condensed Consolidated Statements of Cash Flows (In millions) (Unaudited) | |||
Three Months Ended March 31, | |||
2026 | 2025 | ||
Operating activities | |||
Net income | $ 48.9 | $ 36.9 | |
Adjustments to reconcile net income to net cash provided by operating | |||
Depreciation and amortization | 22.9 | 22.7 | |
Provision for credit losses | 10.3 | 9.3 | |
Deferred income taxes | 2.6 | 2.4 | |
Amortization of debt issuance costs | 2.4 | 2.2 | |
Stock-based compensation | 9.4 | 1.7 | |
Other non-cash, net | 0.4 | 0.2 | |
Changes in operating assets and liabilities: | |||
Trade receivables and other assets | (140.2) | (109.3) | |
Accounts payable and accrued expenses | 202.9 | 156.5 | |
Net cash provided by operating activities | 159.6 | 122.6 | |
Investing activities | |||
Net increase in finance receivables held for investment | (30.5) | (19.8) | |
Purchases of property, equipment and computer software | (13.1) | (11.9) | |
Investments in securities | (1.1) | (0.6) | |
Proceeds from the sale of property and equipment | — | 0.4 | |
Net cash used by investing activities | (44.7) | (31.9) | |
Financing activities | |||
Net increase (decrease) in book overdrafts | 3.1 | (5.0) | |
Net borrowings from lines of credit | 19.6 | 1.7 | |
Net decrease in obligations collateralized by finance receivables | (63.1) | (2.2) | |
Payments for debt issuance costs/amendments | — | (0.1) | |
Payments on long-term debt | (1.4) | — | |
Issuance of common stock under stock plans | 3.3 | 2.1 | |
Tax withholding payments for vested RSUs | (9.2) | (4.2) | |
Repurchase and retirement of common stock | (25.7) | (0.1) | |
Dividends paid on Series A Preferred Stock | (5.3) | (11.1) | |
Net cash used by financing activities | (78.7) | (18.9) | |
Effect of exchange rate changes on cash | (4.7) | 1.0 | |
Net increase in cash, cash equivalents and restricted cash | 31.5 | 72.8 | |
Cash, cash equivalents and restricted cash at beginning of period | 185.4 | 183.7 | |
Cash, cash equivalents and restricted cash at end of period | $ 216.9 | $ 256.5 | |
Supplemental disclosures of cash flow information | |||
Cash paid for interest | $ 33.4 | $ 26.1 | |
Cash paid for taxes, net of refunds - continuing operations | $ 23.1 | $ 18.1 | |
Cash paid for taxes, net of refunds - discontinued operations | $ (0.5) | $ (1.5) | |
Supplemental disclosure of non-cash financing activity | |||
Accrual for repurchase of common stock | $ 0.7 | $ — | |
OPENLANE, Inc.
Reconciliation of Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, Free Cash Flow, Adjusted Free Cash Flow, Operating adjusted income and Operating adjusted income per diluted share (or "Operating Adjusted EPS") as presented herein are supplemental measures of our performance and liquidity that are not required by, or presented in accordance with, generally accepted accounting principles in
EBITDA is defined as net income (loss), plus interest expense net of interest income, income tax provision (benefit), depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for the items of income and expense and expected incremental revenue and cost savings as described in our senior secured credit agreement covenant calculations. Management believes that the inclusion of supplementary adjustments to EBITDA applied in presenting Adjusted EBITDA is appropriate to provide additional information to investors about one of the principal measures of performance used by our creditors. In addition, management uses EBITDA and Adjusted EBITDA to evaluate our performance.
Free Cash Flow is defined as net cash provided by operating activities, less purchases of property, equipment and computer software. Adjusted Free Cash Flow is Free Cash Flow adjusted for the cash portion of EBITDA addbacks to calculate Adjusted EBITDA, the net change in finance receivables held for investment and the net change in obligations collateralized by finance receivables. Management uses Adjusted Free Cash Flow to measure the funds generated in a given period that are available for capital allocation.
Operating adjusted income is defined as net income (loss) adjusted for acquired amortization expense, gains/losses on sale of property or businesses, impairments to goodwill or other intangible assets and certain other non-recurring items. Amortization expense associated with acquired intangible assets is not representative of ongoing capital expenditures but has a continuing effect on our reported results. Management believes Operating adjusted income provides comparability to other companies that may not have incurred these types of non-cash expenses or that report a similar measure. Operating Adjusted EPS represents Operating adjusted income divided by weighted average diluted shares, including the assumed conversion of preferred shares.
EBITDA, Adjusted EBITDA, Free Cash Flow, Adjusted Free Cash Flow, Operating adjusted income and Operating Adjusted EPS have limitations as analytical tools, and should not be considered in isolation or as a substitute for analysis of the results as reported under GAAP. These non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies.
The following tables reconcile net income to EBITDA and Adjusted EBITDA for the periods presented:
Three Months Ended March 31, | |||
(In millions), (Unaudited) | 2026 | 2025 | |
Net income | $ 48.9 | $ 36.9 | |
Add back: | |||
Income taxes | 16.4 | 15.8 | |
Finance interest expense | 24.8 | 27.6 | |
Interest expense, net of interest income | 9.7 | 3.4 | |
Depreciation and amortization | 22.9 | 22.7 | |
EBITDA | 122.7 | 106.4 | |
Non-cash stock-based compensation | 9.7 | 2.0 | |
Securitization interest | (22.0) | (25.1) | |
Severance | 1.7 | 2.0 | |
Foreign currency gains | — | (3.3) | |
ERP implementation costs | 0.4 | — | |
Impact of Canadian DST related to prior years | (15.9) | — | |
Other | 0.1 | 0.8 | |
Total addbacks (deductions) | (26.0) | (23.6) | |
Adjusted EBITDA | $ 96.7 | $ 82.8 | |
Three Months Ended March 31, 2026 | |||||
(In millions), (Unaudited) | Marketplace | Finance | Consolidated | ||
Net income | $ 21.2 | $ 27.7 | $ 48.9 | ||
Add back: | |||||
Income taxes | 7.2 | 9.2 | 16.4 | ||
Finance interest expense | — | 24.8 | 24.8 | ||
Interest expense, net of interest income | 9.7 | — | 9.7 | ||
Depreciation and amortization | 19.7 | 3.2 | 22.9 | ||
EBITDA | 57.8 | 64.9 | 122.7 | ||
Non-cash stock-based compensation | 7.6 | 2.1 | 9.7 | ||
Securitization interest | — | (22.0) | (22.0) | ||
Severance | 1.6 | 0.1 | 1.7 | ||
Foreign currency losses (gains) | 0.1 | (0.1) | — | ||
ERP implementation costs | 0.3 | 0.1 | 0.4 | ||
Impact of Canadian DST related to prior years | (15.9) | — | (15.9) | ||
Other | 0.1 | — | 0.1 | ||
Total addbacks (deductions) | (6.2) | (19.8) | (26.0) | ||
Adjusted EBITDA | $ 51.6 | $ 45.1 | $ 96.7 | ||
The following table reconciles net cash provided by operating activities to Free Cash Flow and Adjusted Free Cash Flow for the periods presented:
Three Months Ended March 31, | |||
(In millions), (Unaudited) | 2026 | 2025 | |
Net cash provided by operating activities | $ 159.6 | $ 122.6 | |
Purchases of property, equipment and computer software | (13.1) | (11.9) | |
Free Cash Flow | 146.5 | 110.7 | |
Severance | 3.1 | 3.9 | |
Other | 0.1 | 0.5 | |
Net increase in finance receivables held for investment | (30.5) | (19.8) | |
Net decrease in obligations collateralized by finance receivables | (63.1) | (2.2) | |
Adjusted Free Cash Flow | $ 56.1 | $ 93.1 | |
The following table reconciles net income to Operating adjusted income and Operating Adjusted EPS for the periods presented:
Three Months Ended March 31, | |||
(In millions, except per share amounts), (Unaudited) | 2026 | 2025 | |
Net income | $ 48.9 | $ 36.9 | |
Acquired amortization expense | 8.3 | 8.3 | |
Impact of Canadian DST related to prior years | (15.9) | — | |
ERP implementation costs | 0.4 | — | |
Income taxes (1) | 2.1 | (1.1) | |
Operating adjusted income | $ 43.8 | $ 44.1 | |
Operating Adjusted EPS (2) | $ 0.35 | $ 0.31 | |
Weighted average diluted shares - including assumed conversion of preferred shares | 125.0 | 144.3 | |
(1) | For the three months ended March 31, 2026 and 2025, each tax deductible item was booked to the applicable statutory rate. |
(2) | The Series A Preferred Stock dividends and undistributed earnings allocated to participating securities have not been included in the determination of Operating adjusted income for purposes of calculating Operating Adjusted EPS. |
The following table reconciles net income to EBITDA and Adjusted EBITDA for the 2026 guidance presented:
2026 Guidance - Previous | 2026 Guidance - Revised | ||||||
(In millions), (Unaudited) | Low | High | Low | High | |||
Net income | $ 130 | $ 147 | $ 147 | $ 164 | |||
Add back: | |||||||
Income taxes | 51 | 55 | 54 | 58 | |||
Finance interest expense | 101 | 100 | 102 | 101 | |||
Interest expense, net of interest income | 35 | 35 | 40 | 40 | |||
Depreciation and amortization | 93 | 93 | 92 | 92 | |||
EBITDA | 410 | 430 | 435 | 455 | |||
Total addbacks (deductions), net | (60) | (60) | (70) | (70) | |||
Adjusted EBITDA | $ 350 | $ 370 | $ 365 | $ 385 | |||
The following table reconciles net income to Operating adjusted income and Operating Adjusted EPS for the 2026 guidance presented:
2026 Guidance - Previous | 2026 Guidance - Revised | ||||||
(In millions, except per share amounts), (Unaudited) | Low | High | Low | High | |||
Net income | $ 130 | $ 147 | $ 147 | $ 164 | |||
Total adjustments, net | 25 | 26 | 13 | 14 | |||
Operating adjusted income | $ 155 | $ 173 | $ 160 | $ 178 | |||
Operating Adjusted EPS | $ 1.24 | $ 1.38 | $ 1.28 | $ 1.42 | |||
Weighted average diluted shares - including assumed conversion | 125 | 125 | 125 | 125 | |||
Analyst Inquiries: | Media Inquiries: |
Bill Wright | Laurie Dippold |
(317) 249-4559 | (317) 468-3900 |
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SOURCE OPENLANE, Inc.