OPENLANE (OPLN)
NYSE:OPLN
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OPENLANE
(NYSE:OPLN)
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Rating:63Neutral
Price Target:
$30.00
▲(0.77% Upside)
Action:ReiteratedDate:03/04/26
The score is driven primarily by improved financial performance (strong revenue growth, restored profitability, and solid free cash flow) and a positive, growth-oriented 2026 outlook from management. These positives are tempered by higher leverage and margin/finance headwinds, while technicals are currently soft and valuation metrics are unattractive due to a negative P/E and no dividend yield provided.
Positive Factors
Cash generation
Sustained high operating cash flow and strong free cash flow demonstrate durable internal funding to support reinvestment, platform improvements, buybacks, and debt servicing. This cash conversion (about ~0.82x of net income) underpins financial flexibility even if revenue growth moderates.
Negative Factors
Rising leverage
A sharp step-up in leverage reduces financial flexibility, increases interest and covenant risk, and limits ability to pursue M&A or withstand revenue shocks. With sizable debt outstanding, weaker profitability or cash-flow variability could constrain strategic options over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained high operating cash flow and strong free cash flow demonstrate durable internal funding to support reinvestment, platform improvements, buybacks, and debt servicing. This cash conversion (about ~0.82x of net income) underpins financial flexibility even if revenue growth moderates.
Read all positive factors
OPENLANE (OPLN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.16B
Dividend YieldN/A
Average Volume (3M)961.38K
Price to Earnings (P/E)13.3
Beta (1Y)1.00
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. Volume756,123
30 Day Avg. Volume961,376
Financial Highlights & Ratios
PEG Ratio-0.06
Price to Book (P/B)2.07
Price to Sales (P/S)1.64
P/FCF Ratio9.44
Enterprise Value/Market Cap1.41
Enterprise Value/Revenue2.30
Enterprise Value/Gross Profit4.98
Enterprise Value/Ebitda14.72
Forecast
1Y Price Target
$34.90Price Target Upside17.23% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.34
Revenue Forecast (FY)$2.07B
OPENLANE Business Overview & Revenue Model
Company Description
OPENLANE, 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 segmen...
How the Company Makes Money
OPENLANE primarily generates revenue by enabling wholesale used-vehicle transactions on its digital marketplace and charging fees tied to those transactions and related services. Key revenue streams include: (1) marketplace/auction-related fees ch...
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.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.
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.
Read all updates
Q4-2025 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
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 | 302.00M | 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 | -149.00M | -70.90M | -83.50M | 70.00M | -1.22B |
| Financing Cash Flow | -251.00M | -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
Business Operations and StrategyFinancial Disclosures
OPENLANE Showcases Digital Growth Strategy at Investor Day
Positive
Mar 3, 2026
OPENLANE held an investor day on March 3, 2026, where management outlined its strategy to grow its customer base, increase vehicle volumes and improve financial performance, building on 2025 results that included 1.5 million commercial and dealer ...
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 ...
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.