What were the key takeaways from OPENLANE's earnings call?

What guidance did OPENLANE's management provide for the next earnings period?

What is the revenue and EPS growth rate for OPENLANE year over year?

What is OPENLANE's gross profit margin?

What were the key takeaways from OPENLANE’s earnings call?

What is OPENLANE's latest dividend and current dividend yield?

What factors drove the changes in OPENLANE's revenue and profit?

Did OPENLANE beat or miss consensus estimates last quarter?

- **Revenue Growth**: 8% YoY to $498M, with Marketplace GMV up 9% to $7.3B, driven by 14% dealer-to-dealer volume growth.
- **Profit Expansion**: Adjusted EBITDA up 17% to $87M, Marketplace EBITDA margin +110bps to 11%.
- **Strategic Momentum**: 2x YoY increase in commercial open channel volumes, 900bps growth in AFC dealer registrations.
- **Capital Allocation**: $550M term loan for preferred share buyback, reducing diluted shares by 19M.
- **Credit Stability**: Finance segment loan loss rate stable at 1.6%, targeting 1.5-2.0% range.


**【CEO Summary Section】**
- **Revenue and Profit Growth**: Q3 revenue rose 8% YoY to $498 million, with adjusted EBITDA up 17% to $87 million. Marketplace GMV increased 9% to $7.3 billion, driven by 14% dealer-to-dealer volume growth and 20% auction fee revenue rise.
- **Market Share Expansion**: Dealer-to-dealer volumes in the U.S. grew high teens YoY, outpacing industry peers. OPENLANE now processes 2x more commercial vehicles in the open channel compared to last year.
- **Strategic Initiatives**: AI-driven innovations like Audio Boost enhance user experience. Cross-registration with AFC dealers grew 900 basis points, with nearly half of AFC dealers now active on the platform.
- **Customer Engagement**: Record levels of unique buyer and seller activity, with franchise dealer market share gains supported by private-label programs.

**【CFO Financial Commentary】**
- **Financial Performance**: GAAP revenue $498 million (+8% YoY), adjusted EBITDA $87 million (+17% YoY). Marketplace segment EBITDA up 22%, Finance segment up 12%.
- **Cost Management**: SG&A rose 14% due to incentives and investments, but core SG&A declined 1% through back-office efficiencies. Free cash flow conversion rate 5% for the quarter, 61% LTM.
- **Capital Allocation**: Repurchased 1.5 million common shares YTD at $24.35 average price. Completed $550 million term loan to buy 53% of Series A preferred shares, reducing diluted shares by 19 million.
- **Credit Quality**: Finance segment loan loss rate 1.6%, stable with prior quarter, targeting 1.5-2.0% range.

**【Q&A Highlights】**
- **Market Growth Dynamics**: Dealer-to-dealer volumes up 14% YoY vs. industry low single-digit growth, driven by digital migration and U.S. market share gains.
- **AFC Integration Progress**: 50% of AFC dealers now registered on OPENLANE, with weekly 300+ new engagements from floor plan loan completions.
- **Off-Lease Vehicle Outlook**: Expect commercial volume recovery in Q2 2026, with higher off-lease volumes flowing into open channel (2x YoY in Q3).
- **Purchased Cars Business**: 70% of growth from Europe, 30% from U.S. guarantees, with Europe contributing low-margin but profitable cross-border transactions.
- **SG&A Efficiency**: Targeted investments balanced with back-office cost savings, aiming for 75%+ LTM free cash flow conversion.


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