OPENLANE, Inc. Q3 FY2025 earnings call

Strategy - Anchored in making wholesale easy with 3 priorities: delivering best marketplace, best technology, best customer experience. ### Marketplace - GMV $7.3B (9% increase), dealer-to-dealer volumes up 14% (4th straight quarter of double-digit), auction fee revenue up 20%, adjusted EBITDA up 22%. ### Technology - Injected AI into areas like vehicle recommendations, released Audio Boost feature. ### AFC Partnership - Increased AFC dealers registered on OPENLANE by over 900 basis points, introduced AFC recommendations carousel. ### Customer Experience - Strong transactional NPS scores, focus on relationship-first approach.

Consolidated revenue grew by 8% to $498 million, with adjusted EBITDA at $87 million, a 17% increase. In the Marketplace segment, GMV processed was $7.3 billion (9% increase), auction fee revenue up 20%, and adjusted EBITDA $44 million (22% growth). The Finance segment saw average managed receivables increase, loan transaction units grow, loan loss rate at 1.6%, and adjusted EBITDA up 12% year-over-year.

Revised full year 2025 adjusted EBITDA guidance to $328 million to $333 million, up from previous $310 million to $320 million. Driven by continued strength in North American dealer business and prudent portfolio growth/credit management in Finance segment.

Economic Trends - New vehicle affordability, loan delinquencies, general economic uncertainty could impact. ### Tariff Situation - Remains a potential headwind. ### Consumer Retail Credit - Tightening could pose longer-term challenges.

Q: What's the take on AuctionNet data and new dealer onboarding?

A: AuctionNet dealer volumes up low single digits, OPENLANE U.S. dealer-to-dealer up high teens. New dealers onboarding with focus on platform ease, technology innovations, go-to-market investments, and leveraging franchise and AFC partnerships.

Q: Update on OE customer onboarding?

A: Timing moved to early Q1 2026, technology ready, customer wanted to derisk launch.

Q: Cross-pollination between OPENLANE and AFC?

A: AFC dealers can get financing from AFC to buy on OPENLANE, 50% of AFC dealers registered on OPENLANE, working on increasing adoption and wallet share.

Q: AuctionNet market growth and market share gains?

A: Dealer-to-dealer up 14%, U.S. high teens, AuctionNet dealer volumes up low single digits. Growth driven by industry transition to digital, platform ease, technology, and go-to-market investments. New dealers have ramped adoption over time.

Q: Competitor reaction?

A: No massively notable recent changes, market somewhat consolidated with smaller digital models exiting, OPENLANE seen as leader.

Q: Motivation behind growing purchased cars?

A: Driven by European business (cross-border requires ownership) and North American guaranteed products (buyer returns lead to ownership). Europe drives most volume, North American growth from guaranteed products, business is profitable with margin.

Q: Off-lease impact on P&L?

A: Commercial open channel up 2x year-over-year. Blended ARPUs may tick down as commercial has lower ARPU, but marketplace gross margin may tick up due to higher margin on commercial vehicles.