OPENLANE 2025 Q3 Earnings Net Income Surges 69% as Guidance Raised

OPENLANE (KAR) reported Q3 2025 earnings that exceeded expectations, with revenue rising 8.4% year-over-year to $498.40 million and net income growing 69% to $47.90 million. The company raised full-year guidance for Adjusted EBITDA and Operating Adjusted EPS, reflecting strong performance and strategic momentum.

Revenue

OPENLANE’s total revenue increased by 8.4% to $498.40 million in Q3 2025, surpassing the $459.80 million reported in Q3 2024. This growth was driven by a 20% rise in auction fee revenue and a 14% year-over-year increase in marketplace dealer volume, which outpaced industry trends.

Earnings/Net Income

The company’s EPS surged 116.7% to $0.26 in Q3 2025 from $0.12 in Q3 2024, while net income reached $47.90 million, a 69% increase from $28.40 million in the prior-year period. These results underscore improved profitability and efficient cost management. The EPS growth reflects strong operational execution and the benefits of the company’s asset-light model.

Price Action

OPENLANE’s stock price declined 4.30% on the latest trading day, 0.84% over the past week, and 5.92% month-to-date, indicating short-term volatility despite strong earnings.

Post-Earnings Price Action Review

A backtest of buying OPENLANE shares after quarterly revenue raises and holding for 30 days shows mixed historical performance. While the recent Q3 2025 earnings beat led to a positive stock reaction, data gaps for earlier periods (2023–2024) limit long-term conclusions. The strategy aligns with short-term momentum but faces risks from market volatility and incomplete historical data.

CEO Commentary

OPENLANE CEO Peter Kelly highlighted 8% revenue growth and $87 million in Adjusted EBITDA for Q3 2025, attributing success to the company’s digital operating model and market share gains. He expressed confidence in long-term opportunities driven by the anticipated inflection in off-lease vehicle demand by 2026.

Guidance

OPENLANE raised 2025 guidance, projecting income from continuing operations of $139–$144 million and Adjusted EBITDA of $328–$333 million. Operating Adjusted EPS guidance was increased to $1.22–$1.26, reflecting stronger year-to-date performance and strategic investments.

Additional News

OPENLANE announced a term loan to repurchase 53% of its outstanding Series A convertible preferred shares, signaling capital allocation confidence. The company also welcomed Bill Wright as Vice President of Investor Relations. Analysts revised 2025 EBITDA estimates upward, and the stock’s forward P/E ratio fell to 21 from 23, suggesting improved valuation metrics.