OPLN

Strategic Priorities

• Deliver the best marketplace: Expand depth/breadth of buyers, sellers, and diverse inventory across dealer and commercial segments
• Deliver best-in-class technology: Build innovative, AI-enhanced products to improve customer decision-making and outcomes
• Deliver best customer experience: Maintain a fast, fair, transparent marketplace that simplifies transactions to build preference

Marketplace Operational Highlights

• U.S. dealer-to-dealer segment posted 31% YoY vehicle sales growth, marking the sixth consecutive quarter of double-digit growth for new buyers, sellers, and unique listings, all of which grew over 20% YoY to all-time highs
• Commercial segment delivered 39% YoY vehicle sales growth (14% excluding the new 2026 private label client), with 75% YoY growth in U.S. open channel commercial vehicle sales
• Over 60% of AFC's independent dealer base is now registered on the OpenLane marketplace, and over two-thirds of private label franchise dealers are activated as buyers/sellers in the open marketplace

Technology and Product Highlights

• OpenLane Intelligence, the combined human and AI analytics platform, continues to expand its capabilities for customer insights
• MILOT, the new Canadian subscription SaaS inventory management tool launched in Q1 2026, already has over 800 enrolled dealers, exceeding internal projections
• The Absolute Sales feature, which generates over $900 in additional price per vehicle for sellers, now accounts for over 60% of all U.S. open sale transactions
• A fully redesigned auction management system is rolling out in Canada to replace legacy physical auction technology and modernize the local digital marketplace

Customer Experience Highlights

• Launched a new U.S. dealer portfolio dashboard and mobile arbitration submission tool, and rolled out an improved customer call routing system to track dealer sentiment
• Transactional NPS scores across all regions remain in the great to excellent range, with U.S. seller NPS hitting all-time highs; brand awareness and preference scores continue to rise in internal and third-party surveys

• Management raised full-year 2026 consolidated adjusted EBITDA guidance from the prior range of $365-$385 million to a new range of $385-$400 million. • The upward guidance revision reflects stronger-than-expected momentum in both U.S. dealer and commercial business segments, although management expects U.S. dealer growth rates to moderate in the second half of 2026 due to more challenging year-over-year comparisons. • The revised guidance incorporates plans for expanded go-to-market investments in the second half of 2026, driven by sustained strong returns on prior investments that have not yet shown diminishing returns. • The updated guidance also accounts for continued volatile fuel prices pressuring transportation margins, the current off-lease waterfall mix in U.S. commercial business, stronger-than-expected portfolio growth at AFC, updated interest rate outlooks, and lower-than-anticipated credit risk in the finance segment.

1. Marketplace Segment: Total Q2 2026 GMV was $10.5 billion, growing 41% YoY. Dealer sub-segment GMV grew 15% YoY to $2.8 billion: U.S. dealer GMV increased 58% YoY (31% units sold growth, 21% average vehicle value growth), while Canadian dealer GMV decreased 15% YoY due to 2025 tariff-driven volume pull-forward. Commercial sub-segment GMV grew 53% YoY to $7.7 billion, driven by 69% U.S. commercial GMV growth from new OEM onboarding and accelerating lease maturities; Canadian commercial GMV grew 17% YoY. Total auction and related revenues were $259 million (+21% YoY), SaaS and other revenues were $73 million (+16% YoY, driven by repo remarketing subscription growth), and purchase vehicle sales were $115 million (+17% YoY). Adjusted EBITDA for the marketplace segment was $57 million (+27% YoY), with an adjusted EBITDA margin of 13% (up 80 bps YoY), though higher diesel prices pressured margins by over 100 bps in the quarter. The marketplace segment contributed 55.3% of total consolidated adjusted EBITDA.

2. Finance Segment (AFC): Average outstanding managed receivables were $2.6 billion (+9% YoY), driven by 7% growth in floor plans outstanding and 4% higher average vehicle values. Net finance margin was 12.8% (down 80 bps YoY), while the annualized credit loss provision was 1.17% (improved 28 bps YoY). Adjusted EBITDA for the finance segment was $46.5 million (+10% YoY), contributing 44.7% of total consolidated adjusted EBITDA.

• Elevated used vehicle values increased consumer off-lease equity, temporarily slowing the flow of vehicles into higher-yield off-lease waterfall sales channels, and delaying the expected trend of declining consumer payoffs. • Significant diesel price increases negatively pressured transportation margins in Q2 2026, with a 100+ basis point negative impact on marketplace segment margins. • Canadian dealer-to-dealer volumes remain in a decline due to 2025 tariff-driven volume pull-forward, creating challenging near-term comps. • Geopolitical instability and broader macroeconomic headwinds could impact industry dynamics, though management notes OpenLane's business model is resilient and adaptable. • Intensified competition from existing physical and digital wholesale marketplaces could pressure market share or pricing.

Q: Where are U.S. dealer share gains coming from — are they from traditional physical auctions or competing digital marketplaces? / A: Management confirms the vast majority of share gains are coming from the secular shift of wholesale volume from physical auctions to digital platforms. OpenLane has captured the lion's share of digital market growth over multiple quarters, and cannot yet fully comment on performance versus other digital competitors as full Q2 industry data is not yet available. Continued investment in digital wholesale remains the company's core focus.

Q: What is the incremental expense for the additional 2026 go-to-market investments embedded in the revised guidance? / A: Incremental expenses for the back half of 2026 will be a mid-single digit increase in annualized spend. On a full annualized basis, the incremental investments will fall in the mid-teens percentage range consistent with prior long-term guidance for investment spending.

Q: Can you quantify the impact of elevated off-lease equity on Q2 2026 volumes? / A: Elevated used vehicle values held through Q2 after rising in Q1, increasing average off-lease equity by $300-$400 for typical ICE vehicles and reducing the EV equity deficit by ~$1,000. This arrested the expected decline in consumer payoffs for the quarter, skewing sales mix toward lower-yield early-stage franchise dealer purchases even as overall commercial volumes grew 39% YoY. The long-term trend of rising off-lease supply flowing to higher-yield channels remains unchanged.

Q: How do you manage mobile arbitration tools without triggering a spike in frivolous claims? / A: Management notes no spike in claims has occurred to date, and proactively manages claim volume through data-driven buyer/seller protection programs. Dealers with excessive abnormal claim rates are addressed directly, and the new mobile tool includes an AI layer that rejects incomplete or illegitimate claims before they are submitted, to filter out bad-faith submissions.

Q: How should we expect competitors to respond to your strong share gains, and how are you preparing? / A: Management focuses on executing its own strategy rather than reacting to competitor moves, and notes that short-term promotional pricing or gimmicks like free transport rarely retain customers long-term. Customers stay for consistent operational results, and OpenLane has grown profitably while gaining share, supporting continued reinvestment and shareholder returns. Pricing in the market remains largely rational.