Education
About Us
Working with TipRanks
Follow Us
OPENLANE (OPLN)
NYSE:OPLN
Top Page
OPENLANE
(NYSE:OPLN)
Select Model
Select Model
Rating:63Neutral
Price Target:
$31.00
▲(8.73% Upside)
Action:ReiteratedDate:02/18/26
The score is driven mainly by improved financial performance (profitability and strong free cash flow) and a positive 2026 EBITDA growth outlook from the earnings call. These strengths are tempered by increased leverage, weak near-term technical momentum, and a relatively high P/E with no dividend support.
Positive Factors
Strong cash generation
Consistent trailing‑twelve‑month operating cash flow (~$392M) and free cash flow (~$337M) provide durable internal funding for reinvestment, working capital and debt service. This cash conversion supports growth initiatives, buybacks and resilience during downturns, improving long‑term financial flexibility.
Marketplace scale & dealer share gains
Accelerating dealer‑to‑dealer volumes and >20% growth in active U.S. buyers/sellers signal expanding network effects and share gains. Scale in GMV and buyer density improves liquidity and pricing efficiency, making the marketplace increasingly attractive to dealers and supporting sustained transaction fee revenue growth over the medium term.
Technology, AI and brand advantage
Ongoing AI and automation investments (pricing, recommendations, inspections) reduce operating costs and improve match rates, while strong transactional NPS and 'most preferred digital pure‑play' positioning strengthen customer retention. These structural assets raise barriers to entry and reinforce durable competitive advantages.
Negative Factors
Rising leverage
A meaningful step‑up in leverage (debt/equity ~0.93) reduces financial flexibility and raises execution risk if margins or cash flow soften. Higher debt amplifies earnings volatility, limits ability to pursue opportunistic investments, and increases sensitivity to interest costs and refinancing conditions over the next several quarters.
Marketplace margin compression
Margin contraction driven by increased purchased vehicle mix, go‑to‑market investments and variable comp can persist if company continually reinvests to capture share. Sustained margin pressure would reduce operating leverage and lower incremental free cash flow per unit of GMV, weakening long‑term profitability resilience.
Finance segment yield & credit sensitivity
The AFC finance business faces structural sensitivity to interest rate moves and credit cycles; falling net yields and small increases in loss rates (target 1.5%–2.0%) can materially dent finance EBITDA. Given rising receivables (~$2.5B) this exposes consolidated profitability and cash flow volatility over time.
OPENLANE (OPLN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.03B
Dividend YieldN/A
Average Volume (3M)932.50K
Price to Earnings (P/E)―
Beta (1Y)0.97
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees4,080
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)0.25
Shares Outstanding106,297,226
10 Day Avg. Volume1,283,957
30 Day Avg. Volume932,497
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)2.07
Price to Sales (P/S)1.64
P/FCF Ratio9.44
Enterprise Value/Market Cap1.42
Enterprise Value/Revenue2.23
Enterprise Value/Gross Profit4.83
Enterprise Value/Ebitda12.41
Forecast
1Y Price Target
$33.90Price Target Upside18.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)1.33
Revenue Forecast (FY)$2.05B
OPENLANE Business Overview & Revenue Model
Company DescriptionOPENLANE, Inc., together with its subsidiaries, operates as a digital marketplace for used vehicles, which connects sellers and buyers in the United States, Canada, Continental Europe and the United Kingdom. The company operates through two segments, Marketplace and Finance. The Marketplace segment offers digital marketplace services for buying and selling used vehicles; and value-added ancillary services, including inbound and outbound transportation logistics, reconditioning, vehicle inspection and certification, titling, administrative, and collateral recovery services. Its digital marketplaces include OPENLANE platform, a mobile app enabled solutions that allows dealers to sell and source inventory. This segment sells its products and services through commercial fleet operators, financial institutions, rental car companies, new and used vehicle dealers, and vehicle manufacturers. The Finance segment offers floorplan financing, a short-term inventory-secured financing to independent vehicle dealers. It serves commercial customers, and franchise and independent dealer customers. The company was formerly known as KAR Auction Services, Inc. and changed its name to OPENLANE, Inc. in May 2023. OPENLANE, Inc. was incorporated in 2006 and is headquartered in Carmel, Indiana.
How the Company Makes Money
OPENLANE Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive operational and financial momentum: solid Q4 and full-year 2025 results, meaningful U.S. dealer-to-dealer share gains and marketplace GMV growth, continued finance segment scale, and a constructive 2026 EBITDA guide driven by marketplace strength. Offsetting risks include Canada macro weakness, some margin compression in the marketplace from reinvestments and mix, pressure on finance yields and sensitivity to credit trends, a lower adjusted free cash flow conversion rate driven by financing accounting changes, and the one-time GAAP EPS impacts from the Series A repurchase. On balance the company emphasized execution, scale benefits from prior investments, and confidence in U.S. marketplace tailwinds (off-lease flow, private-label and AFC cross-sell), supporting an overall positive outlook despite identifiable near-term headwinds.Q4-2025 Updates
Positive Updates
Quarterly Revenue and Adjusted EBITDA Growth
Q4 2025 total revenues of $494,000,000, up 9% year-over-year; consolidated adjusted EBITDA of $76,000,000, up 5% year-over-year.
Strong Full-Year 2025 Financial Results
Full year 2025: nearly 1,500,000 vehicles sold, $1,900,000,000 in total revenue, $333,000,000 in adjusted EBITDA (said to be +17% for the year), and $392,000,000 in cash flow from operations.
Dealer-to-Dealer Momentum (U.S. Acceleration)
Full-year dealer-to-dealer volumes increased ~15%; Q4 consolidated dealer-to-dealer units +9% YoY with U.S. dealer-to-dealer growth accelerating to over 20% YoY in Q4 (company’s highest D2D growth in years). Active U.S. buyers and sellers each grew north of 20% in Q4.
Marketplace GMV and Auction Revenue Expansion
Q4 GMV of $7,100,000,000, up 8% YoY; full-year GMV up 6% to $29,000,000,000; auction and related revenues of $200,000,000 in Q4, up 12% YoY driven by higher U.S. dealer volumes and modest price increases.
Finance Segment Growth and Credit Performance
Average receivables managed in Q4 of $2,500,000,000, up 9% YoY; finance adjusted EBITDA of $44,000,000, up 6% YoY; Q4 provision/loan loss rate 1.6% (near the low end of target 1.5%–2%).
Commercial Momentum and New Programs
Commercial open-channel volumes sold in the open sale up ~2x YoY in Q4 (despite total commercial volume down 2%); new commercial private-label program went live, adding >900 new dealers; company expects off-lease volume growth beginning Q1 2026 and sustained through the year.
Balance Sheet, Liquidity and Capital Actions
Closed repurchase of >50% of Series A preferred shares; ended Q4 with $142,000,000 unrestricted cash, >$400,000,000 revolver capacity, $550,000,000 debt outstanding; repurchased 1,800,000 common shares in 2025 at an average $24.71 per share; fully diluted share count 125,000,000 (assumes conversion).
Technology, AI and Brand Strength
Ongoing investments in AI-driven vehicle recommendations, predictive pricing, inspection automation and operations efficiency; 2025 transactional NPS consistently in the 'great to excellent' range and cited as the most preferred digital pure-play marketplace in recent third-party research.
2026 Adjusted EBITDA Guidance
Company guides 2026 adjusted EBITDA to $350,000,000–$370,000,000 (+5% to +11% YoY), with nearly all growth expected from the marketplace (mid- to upper-teens growth expected in marketplace EBITDA).
Negative Updates
Canada Market Weakness
Canada experienced a weaker macro and retail environment in Q4 and into January 2026; company expects Canadian marketplace volumes to be relatively flat in 2026, limiting growth contribution from that region.
SaaS and Other Revenues Decline (Divestiture Impact)
Q4 SaaS and other revenues declined 10% YoY to $62,000,000, primarily attributable to the December 2024 divestiture of the keys business (company notes that, excluding the divestiture, SaaS and other revenues were up 2%).
Marketplace Margin Compression
Q4 marketplace adjusted EBITDA margin was 8.2% (adjusted EBITDA $32,000,000), representing only 2% YoY EBITDA growth and a 60-basis-point decline in adjusted EBITDA margin due to higher mix of purchased vehicle revenue, go-to-market investments, and incremental variable compensation.
Finance Yield Pressure and Credit/Risk Headwinds
Q4 net yield in the finance segment was 13.2%, down 50 basis points YoY (transaction fee yields down ~90 bps driven by higher loan values, partially offset by net interest spreads); company expects net yield pressure from anticipated rate cuts and a gradually normalizing/higher risk environment in 2026 which could mute AFC performance (finance expected largely flat in 2026).
Adjusted Free Cash Flow Conversion Revision and GAAP EPS Impacts
Trailing conversion guidance revised down to an adjusted free cash flow conversion rate of 65%–70% (from prior ~75%) due to financing cost mapping changes; Q4 included a deemed dividend of ~ $242,000,000 from the Series A repurchase that reduced retained earnings and negatively affected Q4 GAAP EPS by ~$2.20 per share (offset in part by a $35,000,000 non-cash tax benefit increasing GAAP EPS by ~$0.32).
Risk That Incremental Losses Could Impact AFC
While target loss rate remains 1.5%–2.0%, management noted that even small upward movements within that range could impact AFC's performance, indicating sensitivity of finance results to modest credit deterioration.
Company Guidance
Management guided 2026 adjusted EBITDA of $350–$370 million (≈5%–11% growth vs. 2025), saying nearly all incremental EBITDA will come from the marketplace, which it expects to grow in the mid‑to‑upper teens; they expect U.S. commercial volumes to inflect and grow beginning in Q1 2026, continued U.S. dealer share gains (after U.S. D2D growth accelerated to >20% in Q4), relatively flat volumes in Canada, and modest growth in Europe. AFC (finance) is expected to be largely flat year‑over‑year amid anticipated net yield headwinds from rate cuts and a higher risk environment, with a reiterated target loss rate of 1.5%–2.0%. They also revised trailing adjusted free‑cash‑flow conversion to 65%–70%, and noted quarter‑end liquidity and capital metrics of $142M unrestricted cash, >$400M revolver capacity, $550M debt outstanding, and ~125M fully diluted shares.OPENLANE Financial Statement Overview
Summary
Improving fundamentals with ~12% TTM revenue growth, stronger profitability (TTM net margin ~8.8% and operating profitability ~9%), and solid cash generation (TTM OCF ~$392M; FCF ~$337M). Offsets include notable margin variability and a sharp leverage increase (debt-to-equity ~0.93), reducing financial flexibility if profitability softens.Income Statement
OPLN shows solid top-line momentum with revenue up ~12% in TTM (Trailing-Twelve-Months) following steady growth in prior years. Profitability has improved materially versus 2023 (loss year), with TTM net margin ~8.8% and operating profitability around 9%—a healthier, more consistent profile than the volatility seen from 2022’s strong profit to 2023’s loss. The main offset is margin variability (gross margin drifting down vs earlier years and EBITDA margin down from 2024), which suggests earnings can be sensitive to market/pricing conditions.72
Positive
Balance Sheet
The balance sheet is mixed. Leverage has increased sharply in TTM (Trailing-Twelve-Months), with debt-to-equity near 0.93 versus a much lower level in 2024, indicating a meaningful step-up in balance-sheet risk. Equity remains sizable (~$1.54B) and return on equity has improved to ~8.5% in TTM, but the rapid change in leverage reduces financial flexibility and raises execution risk if profitability softens.58
Neutral
Cash Flow
Cash generation is a clear strength: TTM (Trailing-Twelve-Months) operating cash flow (~$392M) and free cash flow (~$337M) are both solid, with strong free-cash-flow growth versus 2024. Free cash flow is reasonably supported by earnings (about ~0.82x of net income), suggesting profits are translating into cash. The key watch-out is that cash flow has shown historical swings (notably negative operating/free cash flow in 2022), implying periodic working-capital or investment-driven volatility.74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.93B | 1.79B | 1.65B | 1.53B | 1.45B |
| Gross Profit | 892.80M | 708.70M | 777.50M | 615.90M | 658.10M |
| EBITDA | 393.80M | 274.90M | 110.80M | 179.00M | 249.90M |
| Net Income | 177.70M | 109.90M | -154.10M | 241.20M | 66.50M |
Balance Sheet | |||||
| Total Assets | 4.72B | 4.62B | 4.73B | 5.12B | 7.45B |
| Cash, Cash Equivalents and Short-Term Investments | 141.50M | 143.00M | 93.50M | 225.70M | 177.60M |
| Total Debt | 1.42B | 282.90M | 427.40M | 573.70M | 1.95B |
| Total Liabilities | 3.19B | 3.28B | 3.40B | 3.60B | 5.94B |
| Stockholders Equity | 1.54B | 1.96B | 1.94B | 2.13B | 2.10B |
Cash Flow | |||||
| Free Cash Flow | 336.50M | 238.40M | 183.40M | -527.50M | 304.70M |
| Operating Cash Flow | 391.90M | 291.40M | 235.40M | -466.60M | 413.20M |
| Investing Cash Flow | -56.10M | -70.90M | -83.50M | 70.00M | -1.22B |
| Financing Cash Flow | 0.00 | -173.90M | -279.90M | -1.61B | 210.40M |
OPENLANE Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
OPENLANE Corporate Events
Executive/Board Changes
OPENLANE announces orderly resignation of board member
Neutral
Jan 30, 2026
On January 29, 2026, OPENLANE, Inc. announced that board member Sanjeev Mehra resigned from the company’s Board of Directors, effective the same day. The company emphasized that Mehra’s departure was not the result of any disagreement regarding OPENLANE’s operations, policies or practices, signaling an orderly transition rather than governance or strategic conflict.
The most recent analyst rating on (OPLN) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on OPENLANE stock, see the OPLN Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.