Openlane, Inc. (OPLN)
NYSE:OPLN
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OPENLANE
(NYSE:OPLN)
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Rating:74Outperform
Price Target:
$43.00
â–²(35.95% Upside)
Action:Reiterated
Date:06/12/26
The score is driven primarily by improving financial performance and cash generation, supported by strong bullish technicals and a constructive earnings update with raised EBITDA guidance. The key constraints are the step-up in leverage, some yield/mix pressures discussed on the call, and a valuation that looks more neutral than compelling without dividend support.
Positive Factors
Marketplace Scale & Growth
Sustained GMV and vehicle volume expansion increases marketplace liquidity and strengthens network effects, supporting durable transaction fee growth and better buyer/seller match quality. Scale also enables higher product penetration and operating leverage that can persist over multiple quarters.
Negative Factors
Rising Leverage
Higher leverage reduces financial flexibility and raises refinancing and interest rate risks if market conditions weaken. In a cyclical wholesale auto market this constrains capital allocation choices, limits downside protection, and may force prioritization away from opportunistic investments during stress periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Marketplace Scale & Growth
Sustained GMV and vehicle volume expansion increases marketplace liquidity and strengthens network effects, supporting durable transaction fee growth and better buyer/seller match quality. Scale also enables higher product penetration and operating leverage that can persist over multiple quarters.
Read all positive factors
OPENLANE (OPLN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.01B
Dividend YieldN/A
Average Volume (3M)1.09M
Price to Earnings (P/E)21.3
Beta (1Y)1.12
Revenue Growth11.53%
EPS Growth-271.04%
CountryUS
Employees4,080
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)1.84
Shares Outstanding105,946,106
10 Day Avg. Volume1,033,460
30 Day Avg. Volume1,088,813
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 Cap1.53
Enterprise Value/Revenue3.06
Enterprise Value/Gross Profit7.30
Enterprise Value/Ebitda14.30
Forecast
1Y Price Target
$39.58Price Target Upside25.14% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)1.39
Revenue Forecast (FY)$2.12B
OPENLANE Business Overview & Revenue Model
Company Description
OPENLANE, Inc., including its various subsidiaries, functions as a leading digital platform designed for the transaction of pre-owned vehicles, connecting buyers and sellers across major markets in the United States, Canada, Continental Europe, an...
How the Company Makes Money
OPENLANE generates revenue primarily by facilitating wholesale used-vehicle transactions on its digital platforms and charging fees for those transactions. Key revenue streams generally include: (1) marketplace/auction transaction fees charged to ...
OPENLANE Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call reported a very strong, record first quarter with broad marketplace momentum (GMV, vehicle volumes, revenue, EBITDA and cash generation) and meaningful product/technology progress. Headline metrics and a raised full‑year EBITDA outlook point to positive operating leverage and market share gains. Offsetting items include yield and mix pressures (notably in U.S. dealer and commercial yields), modest pressure in finance yields and a one‑time mix effect from a large new private‑label customer, plus macro and regional risks that could temper back‑half performance. On balance, the positive operational and financial progress materially outweigh the transitory and structural challenges discussed.Positive Updates
Record Quarter — Revenue and EBITDA Growth
Total revenue of $528 million, up 15% year‑over‑year; consolidated adjusted EBITDA of $97 million, up 17% — the highest quarter in company history as a digital marketplace.
Negative Updates
Yield and Mix Pressures in Marketplace
U.S. dealer yields declined ~60 basis points versus the Investor Day baseline (680–700 bps range) driven largely by a higher mix of large dealer group sales and sharply higher average vehicle values; per‑vehicle revenue improved but yield compression is notable.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarter — Revenue and EBITDA Growth
Total revenue of $528 million, up 15% year‑over‑year; consolidated adjusted EBITDA of $97 million, up 17% — the highest quarter in company history as a digital marketplace.
Read all positive updates
Company Guidance
OPENLANE raised full‑year adjusted EBITDA guidance to $365–$385 million (from $350–$370M), driven by Marketplace strength; Q1 results included consolidated revenue of $528M (+15%), GMV of $9.1B (+32%), consolidated adjusted EBITDA of $97M (+17%), Marketplace adjusted EBITDA of $52M (+39%, 12% margin) and AFC adjusted EBITDA of $45M (down 1%). Management highlighted the Canadian DST repeal reduced Marketplace cost of services by $17.3M (with $15.9M prior‑period removal and $1.4M in‑quarter savings) and a ~$5.5–$6.0M annual benefit; trailing 12‑month adjusted free cash flow was $259M (75% conversion vs. a 65–70% target). Liquidity and capital notes: unrestricted cash $180M, revolver capacity >$400M, Q1 share repurchases of 964k shares at $27.20 (~0.7% of diluted shares), and a capital priority sequence of organic growth, buybacks, then debt paydown (no material paydowns expected until late‑2026/early‑2027). On Finance, average receivables managed were $2.4B (+3%), net yield 13.6% (–30 bps), Q1 provision for credit losses 1.6% (target 1.5–2.0%); management also expects off‑lease supply to scale through 2026 with maturities up roughly 20–25% in H2.OPENLANE Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
58
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.00B | 1.93B | 1.79B | 1.65B | 1.53B | 1.45B |
| Gross Profit | 838.60M | 801.10M | 708.70M | 777.50M | 615.90M | 658.10M |
| EBITDA | 428.00M | 411.90M | 274.90M | 110.80M | 179.00M | 249.90M |
| Net Income | 189.70M | 177.70M | 109.90M | -154.10M | 241.20M | 66.50M |
Balance Sheet | ||||||
| Total Assets | 4.90B | 4.72B | 4.62B | 4.73B | 5.12B | 7.45B |
| Cash, Cash Equivalents and Short-Term Investments | 216.90M | 141.50M | 143.00M | 93.50M | 225.70M | 177.60M |
| Total Debt | 2.30B | 1.42B | 282.90M | 427.40M | 573.70M | 1.95B |
| Total Liabilities | 3.36B | 3.19B | 2.67B | 3.40B | 3.60B | 5.94B |
| Stockholders Equity | 1.54B | 1.54B | 1.96B | 1.94B | 2.13B | 2.10B |
Cash Flow | ||||||
| Free Cash Flow | 365.80M | 336.50M | 238.40M | 183.40M | -527.50M | 304.70M |
| Operating Cash Flow | 422.40M | 391.90M | 291.40M | 235.40M | -466.60M | 413.20M |
| Investing Cash Flow | -161.80M | -149.00M | -70.90M | -83.50M | 70.00M | -1.22B |
| Financing Cash Flow | -311.20M | -257.90M | -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 Adds Veteran Auto Executive David Hult to Board
Positive
Jun 12, 2026
On June 9, 2026, OPENLANE’s Board of Directors expanded its size to ten members and elected veteran automotive executive David Hult as a director, effective June 12, 2026, with his term running until the 2027 annual meeting of shareholders. ...
Executive/Board ChangesShareholder Meetings
OPENLANE Shareholders Approve Governance Matters at Annual Meeting
Positive
Jun 8, 2026
OPENLANE, Inc. held its annual meeting of stockholders on June 5, 2026, where investors approved key governance and oversight items. Shareholders elected the director nominee designated by Ignition Parent LP’s Apax Investor alongside eight o...
Business Operations and StrategyRegulatory Filings and Compliance
OPENLANE Eliminates Series A Preferred, Simplifies Capital Structure
Neutral
May 29, 2026
On May 29, 2026, OPENLANE, Inc. filed a Certificate of Elimination with the Delaware Secretary of State to remove the Certificate of Designations for its Series A Convertible Preferred Stock, originally established on June 9, 2020. The filing imme...
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.