third quarter 2026
Filed Nov 4, 2026OPENLANE, Inc. Reports Third Quarter 2026 Financial Results
Revenue, GMV, marketplace vehicle volumes, Adjusted EBITDA and operating cash flow all grew year over year, while quarterly GAAP net income declined and the company narrowed its 2026 outlook ranges.
Actuals vs. the company’s prior outlook
from its previous release| Metric | Guided | Reported | Verdict |
|---|---|---|---|
| 2026 net income | $163 - $176 million | not reported for full-year 2026 | n/a |
| 2026 Adjusted EBITDA | $385 - $400 million | not reported for full-year 2026 | n/a |
| 2026 net income per share - diluted | $1.23 - $1.33 | not reported for full-year 2026 | n/a |
| 2026 Operating Adjusted EPS | $1.40 - $1.50 | not reported for full-year 2026 | n/a |
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Marketplace GMV, three months ended September 30, 2026other | approximately $10.0 billion | – | 38% YoY growth |
| Marketplace commercial vehicles sold, three months ended September 30, 2026other | 46% YoY growth | – | 46% YoY growth |
| Marketplace dealer vehicles sold, three months ended September 30, 2026other | 10% YoY growth | – | 10% YoY growth |
| US dealer vehicles sold, three months ended September 30, 2026other | 22% growth | – | 22% growth |
| Auction and related fees, three months ended September 30, 2026GAAP | $253.2M | – | 18% growth |
| SaaS and other revenue, three months ended September 30, 2026GAAP | $73.9M | – | – |
| Purchased vehicle sales, three months ended September 30, 2026GAAP | $119.4M | – | – |
| Finance revenue, three months ended September 30, 2026GAAP | $114.7M | – | – |
| Total operating revenues, three months ended September 30, 2026GAAP | $561.2M | – | 13% YoY growth |
| Cost of services, exclusive of depreciation and amortization, three months ended September 30, 2026GAAP | $309.3M | – | – |
| Finance interest expense, three months ended September 30, 2026GAAP | $28.2M | – | – |
| Provision for credit losses, three months ended September 30, 2026GAAP | $8.4M | – | – |
| Selling, general and administrative, three months ended September 30, 2026GAAP | $123.4M | – | – |
| Depreciation and amortization, three months ended September 30, 2026GAAP | $21.5M | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | $490.8M | – | – |
| Operating profit, three months ended September 30, 2026GAAP | $70.4M | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | $60.1M | – | – |
| Income taxes, three months ended September 30, 2026GAAP | $15.4M | – | – |
| Net income, three months ended September 30, 2026GAAP | $44.7M | – | – |
| Net income attributable to common stockholders, three months ended September 30, 2026GAAP | $44.7M | – | – |
| Net income per share, basic, three months ended September 30, 2026GAAP | $0.36 | – | – |
| Net income per share, diluted, three months ended September 30, 2026GAAP | $0.36 | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $106.8M | – | 23% YoY growth |
| Marketplace Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $57.8M | – | – |
| Finance Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $49M | – | – |
| Operating adjusted income, three months ended September 30, 2026non-GAAP | $54.4M | – | – |
| Operating Adjusted EPS, three months ended September 30, 2026non-GAAP | $0.43 | – | – |
| Net cash provided by operating activities, three months ended September 30, 2026GAAP | $97.1M | – | 34% YoY growth |
| Free Cash Flow, three months ended September 30, 2026non-GAAP | $83.3M | – | – |
| Adjusted Free Cash Flow, three months ended September 30, 2026non-GAAP | $124.2M | – | – |
| Total operating revenues, nine months ended September 30, 2026GAAP | $1.64B | – | – |
| Operating profit, nine months ended September 30, 2026GAAP | $211.7M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $137.9M | – | – |
| Net income per share, diluted, nine months ended September 30, 2026GAAP | $1.02 | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $306.7M | – | – |
| Operating Adjusted EPS, nine months ended September 30, 2026non-GAAP | $1.18 | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $309.5M | – | – |
2026 Guidance - Revised outlook
- NoteNet income: $169 - $177 million
- NoteAdjusted EBITDA: $390 - $400 million
- NoteNet income per share - diluted: $1.27 - $1.34
- NoteOperating Adjusted EPS: $1.45 - $1.52
- NoteIncome taxes: $61 - $64 million
- NoteFinance interest expense: $107 million
- NoteInterest expense, net of interest income: $38 - $37 million
- NoteDepreciation and amortization: $88 - $89 million
- NoteEBITDA: $463 - $474 million
- NoteTotal addbacks (deductions), net: $(73) - $(74) million
- NoteOperating adjusted income: $182 - $191 million
- NoteWeighted average diluted shares - including assumed conversion of preferred shares on January 1, 2026: 125
Capital returns
- The board of directors authorized an increase in the size of the company's $250 million share repurchase program by an additional $150 million to $400 million.
- The company extended the share repurchase program through December 31, 2027.
- Approximately $250 million remains available for repurchases under the share repurchase program at October 31, 2026.
- Repurchase and retirement of common stock, including excise taxes, was $91.5 million for the nine months ended September 30, 2026.
- Repurchase and retirement of Series A Preferred Stock, including excise taxes, was $5.6 million for the nine months ended September 30, 2026.
- Dividends paid on Series A Preferred Stock were $5.3 million for the nine months ended September 30, 2026.
What drove it
- Auction and related fees grew 18% year over year.
- Marketplace commercial vehicles sold grew 46% year over year.
- Marketplace dealer vehicles sold grew 10% year over year, driven by 22% growth in US dealer vehicles sold.
- The company stated that commercial-business acceleration followed an upward inflection of off-lease volumes.
- The company cited its advantages with AFC's independent dealers and franchise dealers in its private-label programs.
Concerns
- Quarterly GAAP net income was $44.7 million, compared with $47.9 million in the prior-year quarter.
- Income taxes were $15.4 million, compared with $8.2 million in the prior-year quarter.
- Interest expense was $10.0 million, compared with $1.1 million in the prior-year quarter.
- Net increase in finance receivables held for investment was $(367.6) million for the nine months ended September 30, 2026, compared with $(196.1) million for the prior-year period.
- The release states that guidance does not contemplate future items including business development activities, strategic developments, contingent purchase price adjustments, litigation expenses, tax adjustments, foreign-currency changes, legal and regulatory changes, and intangible impairments.
What to watch
- Delivery against revised 2026 net income guidance of $169 - $177 million.
- Delivery against revised 2026 Adjusted EBITDA guidance of $390 - $400 million.
- Marketplace commercial and dealer vehicle-sales trends, including US dealer vehicles sold.
- The pace of off-lease volumes and the company's stated opportunity to gain additional market share.
- Finance receivables held for investment and obligations collateralized by finance receivables.
- Execution of the expanded $400 million share repurchase program, with approximately $250 million available at October 31, 2026.
Balance sheet and cash flow
- Cash and cash equivalents were $244.9 million at September 30, 2026, compared with $141.5 million at December 31, 2025.
- Restricted cash was $34.7 million at September 30, 2026, compared with $43.9 million at December 31, 2025.
- Finance receivables, net of allowances, were $2,763.8 million at September 30, 2026, compared with $2,425.4 million at December 31, 2025.
- Obligations collateralized by finance receivables were $2,064.1 million at September 30, 2026, compared with $1,758.3 million at December 31, 2025.
- Current maturities of debt were $5.5 million at September 30, 2026, compared with $5.5 million at December 31, 2025.
- Long-term debt was $528.7 million at September 30, 2026, compared with $530.1 million at December 31, 2025.
- Net cash provided by operating activities was $309.5 million for the nine months ended September 30, 2026, compared with $266.4 million for the nine months ended September 30, 2025.
- Net cash used by investing activities was $(407.9) million for the nine months ended September 30, 2026, compared with $(195.5) million for the nine months ended September 30, 2025.
- Net cash provided by financing activities was $207.3 million for the nine months ended September 30, 2026, compared with net cash used by financing activities of $(119.9) million for the nine months ended September 30, 2025.
- Cash, cash equivalents and restricted cash at end of period was $279.6 million for the nine months ended September 30, 2026, compared with $146.4 million for the nine months ended September 30, 2025.
Analysis
OPENLANE reported a solid third quarter, with total operating revenues of $561.2 million versus $498.4 million in the prior-year quarter. The release attributes the 13% growth to 18% growth in auction and related fees. Marketplace GMV was approximately $10.0 billion, representing 38% YoY growth. Commercial vehicles sold grew 46% YoY, marketplace dealer vehicles sold grew 10% YoY, and US dealer vehicles sold grew 22%.
The revenue mix showed growth across all reported operating-revenue lines. Auction and related fees were $253.2 million, SaaS and other revenue was $73.9 million, purchased vehicle sales were $119.4 million, and finance revenue was $114.7 million. Operating profit increased to $70.4 million from $55.0 million. Adjusted EBITDA increased to $106.8 million from $87.1 million, while Marketplace Adjusted EBITDA was $57.8 million and Finance Adjusted EBITDA was $49.0 million.
GAAP net income was $44.7 million, below $47.9 million a year earlier, despite the increase in operating profit. Income taxes were $15.4 million compared with $8.2 million, and interest expense was $10.0 million compared with $1.1 million. Diluted GAAP EPS was $0.36 versus $0.25, while Operating Adjusted EPS was $0.43 versus $0.35. Cash generation strengthened, with quarterly operating cash flow of $97.1 million and Free Cash Flow of $83.3 million, compared with $72.2 million and $57.6 million, respectively.
For the first nine months, revenue was $1,643.7 million, operating profit was $211.7 million, net income was $137.9 million, and Adjusted EBITDA was $306.7 million. Operating cash flow was $309.5 million. Finance receivables, net of allowances, rose to $2,763.8 million at September 30, 2026, while obligations collateralized by finance receivables rose to $2,064.1 million. The company also repurchased and retired $91.5 million of common stock, including excise taxes, during the nine-month period.
Management narrowed 2026 guidance. Net income is now guided to $169 - $177 million from $163 - $176 million, Adjusted EBITDA to $390 - $400 million from $385 - $400 million, diluted EPS to $1.27 - $1.34 from $1.23 - $1.33, and Operating Adjusted EPS to $1.45 - $1.52 from $1.40 - $1.50. Separately, the board increased the share repurchase program by $150 million to $400 million, extended it through December 31, 2027, and reported approximately $250 million available at October 31, 2026.
Management, verbatim
The positive momentum OPENLANE sustained in the third quarter reinforces the strength of our strategy and the differentiated value we deliver to the market.
Peter Kelly, CEO of OPENLANE
We grew consolidated revenue by 13%, delivered Adjusted EBITDA of $107 million and grew marketplace GMV by 38% to $10 billion. Our US dealer volumes grew 22%, meaningfully outpacing the industry, while our commercial business accelerated from the upward inflection of off-lease volumes. And we believe the recent changes to our competitive landscape provide OPENLANE with a unique opportunity to gain additional market share.
Peter Kelly, CEO of OPENLANE
OPENLANE’s focused execution continues to fuel growth and deliver compelling operational and financial results.
Brad Herring, CFO of OPENLANE
Not in the filing
stated, not guessed- Gross margin was not reported.
- Gross profit was not reported.
- Reportable-segment revenue was not reported.
- Prior-quarter comparisons were not reported for the presented quarterly operating metrics.
- Full-year 2026 actual results were not reported, so revised guidance cannot be evaluated against actual full-year results.
- No dividend for common stockholders was reported.
- No analyst consensus estimates, price targets, share-price reaction, or external expectations were provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.