OPENLANE, Inc. Q1 FY2026 earnings call

Peter Kelly highlighted 3-year rebrand anniversary and strong first quarter results. Marketplace business grew with more buyers, sellers, and unique vehicles listed. Technology advancements like OPENLANE Intelligence and new features in Canada and US. Customer experience improved with high transactional NPS scores. Brad Herring noted record quarter with revenues and adjusted EBITDA growth, and impact of Canadian DST repeal on marketplace cost of services.

Consolidated revenue grew by 15% to $528 million. Marketplace segment: GMV was $9.1 billion, up 32%; vehicles sold grew 19%; adjusted EBITDA was $52 million, up 39%. Dealer-to-dealer in US grew in upper 20% range. Commercial vehicles in US saw 25% growth, 6% ex new customer. Finance segment: Average receivables managed $2.4 billion, up 3%; adjusted EBITDA $45 million, down 1%; loan loss rate 1.6%.

Raised full year adjusted EBITDA guidance from $350M - $370M to $365M - $385M, driven by Marketplace segment. Cautious about downstream impact of macro conditions. Maintained guidance for Finance segment as volatility offsets rate cut likelihood.

Sharp decline in used vehicle values could lead to higher risk for floor plan financers. Geopolitical or macroeconomic events like fuel prices, vehicle affordability, chip production could impact industry, though no material impact seen yet.

Q: About full impact of returning commercial customer; A: Launched mid-January, live for most of quarter.

Q: Behavior of EVs and ICE in auctions; A: EVs performing well, conversion rates comparable, fewer payoffs.

Q: Yield dynamic in Q1 commercial; A: Mix issue due to US commercial GMV mix increase.

Q: Full year implications of DST repeal; A: $5.5M - $6M annual impact.

Q: US dealer-to-dealer growth; A: Upper 20% growth, spread to market widening.

Q: Off-lease volumes and flow-through; A: Maturities increasing, consumer payoffs down, cars flowing deeper.

Q: AFC business growth; A: Great business, synergistic, but managed conservatively for risk