OPENLANE | 8-K: FY2025 Q4 Revenue Beats Estimate at USD 494.3 M

Revenue: As of FY2025 Q4, the actual value is USD 494.3 M, beating the estimate of USD 473.65 M.EPS: As of FY2025 Q4, the actual value is USD -1.77, missing the estimate of USD 0.185.EBIT: As of FY2025 Q4, the actual value is USD 52.1 M.OPENLANE, Inc. reported its financial results for the three months and year ended December 31, 2025 .Consolidated Financial PerformanceTotal Operating Revenues: $494.3 million for the three months ended December 31, 2025, an increase of 9% compared to $455.0 million in the prior year period . For the year ended December 31, 2025, total operating revenues were $1,934.5 million, an 8% increase from $1,788.5 million in the prior year .Operating Profit: $42.5 million for the three months ended December 31, 2025, compared to $79.0 million in the prior year period . For the year ended December 31, 2025, operating profit was $196.6 million, compared to $182.2 million in the prior year .Net Income (Income from continuing operations): $59.5 million for the three months ended December 31, 2025, an increase of 14% from $52.3 million in the prior year period . For the year ended December 31, 2025, net income was $177.7 million, compared to $109.9 million in the prior year .Income from Continuing Operations Attributable to Common Stockholders: -$188.0 million for the three months ended December 31, 2025, compared to $31.0 million in the prior year period . For the year ended December 31, 2025, this figure was -$103.1 million, compared to $49.2 million in the prior year .EBITDA: $91.9 million for the three months ended December 31, 2025, compared to $124.4 million in the prior year period . For the year ended December 31, 2025, EBITDA was $408.7 million, compared to $396.8 million in the prior year .Adjusted EBITDA: $76.0 million for the three months ended December 31, 2025, a 5% increase from $72.7 million in the prior year period . For the year ended December 31, 2025, Adjusted EBITDA was $332.6 million, up from $293.4 million in the prior year . The full year 2025 Adjusted EBITDA was reported as $333 million .Operating Expenses:Cost of services: $275.5 million for Q4 2025 and $1,041.7 million for FY 2025 .Finance interest expense: $27.3 million for Q4 2025 and $109.9 million for FY 2025 .Provision for credit losses: $12.9 million for Q4 2025 and $42.4 million for FY 2025 .Selling, general and administrative: $112.8 million for Q4 2025 and $445.2 million for FY 2025 .Depreciation and amortization: $23.3 million for Q4 2025, up 1% from $23.0 million in the prior year period; $91.7 million for FY 2025, down 4% from $95.2 million in the prior year .Interest Expense: $9.9 million for the three months ended December 31, 2025, an increase of 115% from $4.6 million in the prior year period, primarily due to new term loan debt . For the year ended December 31, 2025, interest expense was $18.1 million, a decrease of 17% from $21.8 million in the prior year, primarily due to repayment of senior note debt .Other Expense (Income), Net: Other expense of $0.9 million for the three months ended December 31, 2025, a decrease from $5.4 million other expense in the prior year period, mainly due to reduced foreign currency losses . For the year ended December 31, 2025, other income was $13.7 million, an increase from $2.5 million other expense in the prior year, mainly due to foreign currency gains .Effective Tax Rate: -87.7% for the three months ended December 31, 2025, and 7.5% for the year ended December 31, 2025, both favorably impacted by the release of a $35.8 million valuation allowance against the U.S. net deferred tax asset .Marketplace Segment PerformanceTotal Marketplace Revenue: $384.7 million for the three months ended December 31, 2025, a 10% increase from $348.8 million in the prior year period, driven by a 3% increase in vehicles sold . For the year ended December 31, 2025, total marketplace revenue was $1,500.8 million, an 11% increase from $1,357.4 million in the prior year, partly due to a 15% increase in dealer consignment vehicles sold .Gross Profit: $109.1 million for the three months ended December 31, 2025, a 6% increase from $103.2 million in the prior year period . Gross profit as a percentage of revenue was 28.4% for Q4 2025, down from 29.6% in the prior year period, mainly due to increased purchased vehicle sales . For the year ended December 31, 2025, gross profit was $457.8 million, a 16% increase from $393.4 million in the prior year . Gross profit as a percentage of revenue was 30.5% for FY 2025, up from 29.0% in the prior year, due to lower Canadian DST and increased prices .Operational Metrics:Total Vehicles Sold: 357,000 units for Q4 2025, up from 347,000 units in the prior year period; 1,472,000 units for FY 2025, up from 1,446,000 units in the prior year . The full year total vehicles sold was nearly 1.5 million .Gross Merchandise Value (GMV): $7.1 billion for Q4 2025, up from $6.6 billion in the prior year period; $28.8 billion for FY 2025, up from $27.1 billion in the prior year . The full year GMV was $29 billion .Auction Fees Per Vehicle Sold: $361 for Q4 2025, a 12% increase from $323 in the prior year period; $357 for FY 2025, a 16% increase from $307 in the prior year .SaaS and Other Revenue: Decreased by $7.1 million, or 10%, to $62.1 million for Q4 2025, primarily due to the sale of the automotive key business . Decreased by $38.0 million, or 13%, to $257.1 million for FY 2025, primarily due to the same reason .Purchased Vehicle Sales: Increased by $21.5 million, or 22%, to $117.1 million for Q4 2025 . Increased by $83.2 million, or 25%, to $410.2 million for FY 2025 .Provision for Credit Losses: Increased by $1.3 million, or 87%, to $2.8 million for Q4 2025 . Decreased by $1.6 million, or 24%, to $5.1 million for FY 2025 .Selling, General and Administrative: Increased by $10.7 million, or 12%, to $99.0 million for Q4 2025, driven by increases in stock-based and incentive-based compensation . Increased by $31.6 million, or 9%, to $391.2 million for FY 2025, driven by increases in incentive-based compensation and sales-related expenses .Finance Segment PerformanceTotal Finance Revenue: $109.6 million for the three months ended December 31, 2025, a 3% increase from $106.2 million in the prior year period, due to increased loan values and loan transaction units . For the year ended December 31, 2025, total finance revenue was $433.7 million, a 1% increase from $431.1 million in the prior year, due to increased loan values and loan transaction units .Net Finance Margin: 13.2% (annualized) for Q4 2025, a decrease of 0.5% from 13.7% in the prior year period . For FY 2025, net finance margin was 13.5%, a decrease of 0.2% from 13.7% in the prior year .Operational Metrics:Finance Interest Expense: Decreased by $1.0 million, or 4%, to $27.3 million for Q4 2025, due to a decrease in the average interest rate on securitization obligations . Decreased by $13.6 million, or 11%, to $109.9 million for FY 2025, due to the same reason .Finance Provision for Credit Losses: Decreased by $0.5 million, or 5%, to $10.1 million for Q4 2025, representing 1.6% of average receivables managed . Decreased by $10.3 million, or 22%, to $37.3 million for FY 2025, representing 1.6% of average receivables managed .Total Loan Transaction Units: 413,000 units for Q4 2025, up from 405,000 units in the prior year period; 1,681,000 units for FY 2025, up from 1,645,000 units in the prior year . The full year facilitated 1.7 million finance transactions .Total Receivables Managed: $2,423.5 million as of December 31, 2025, up from $2,314.0 million in the prior year .Average Receivables Managed: $2,466.5 million for Q4 2025, up from $2,259.6 million in the prior year period; $2,389.8 million for FY 2025, up from $2,239.3 million in the prior year . The full year managed an average of $2.4 billion in receivables .Allowance for Credit Losses: $27.5 million, or 1.1% of total receivables managed, as of December 31, 2025, up from $19.8 million, or 0.9%, in the prior year .Receivables Delinquent as a Percentage of Total Receivables Managed: 0.4% as of December 31, 2025, down from 0.8% in the prior year .Selling, General and Administrative: Increased by $2.4 million, or 21%, to $13.8 million for Q4 2025, due to increases in stock-based and incentive-based compensation and severance . Increased by $5.0 million, or 10%, to $54.0 million for FY 2025, due to increases in incentive-based compensation, postage, and stock-based compensation .Liquidity and Capital ResourcesCash and Cash Equivalents: $141.5 million as of December 31, 2025, compared to $143.0 million as of December 31, 2024 .Working Capital: $407.7 million as of December 31, 2025, compared to $286.0 million as of December 31, 2024 .Amounts Available Under Revolving Credit Facilities: $409.9 million as of December 31, 2025, compared to $397.9 million as of December 31, 2024 .Cash Flow from Operating Activities (Continuing Operations): $391.9 million for the year ended December 31, 2025, compared to $292.8 million in the prior year, primarily due to increased profitability and changes in operating assets and liabilities . Cash flow from operating activities for Q4 2025 was $125.5 million, a 284% increase from $32.7 million in Q4 2024 . The full year 2025 cash flow from operations was $392 million .Cash Flow from Investing Activities (Continuing Operations): -$149.0 million for the year ended December 31, 2025, compared to -$70.9 million in the prior year, primarily due to an increase in finance receivables held for investment and purchases of property and equipment .Cash Flow from Financing Activities (Continuing Operations): -$257.9 million for the year ended December 31, 2025, compared to -$173.9 million in the prior year, primarily due to share repurchases, debt payments, and dividends .Adjusted Free Cash Flow: $111.6 million in Q4 2025, a substantial increase of 620% from $15.5 million in Q4 2024 .Outlook / GuidanceOPENLANE, Inc. anticipates Adjusted EBITDA for the full year 2026 to be in the range of $350 million to $370 million . Operating Adjusted EPS is projected to be between $1.24 and $1.38, with capital expenditures expected to be $55 million to $60 million . The provision for credit losses in the Finance segment is expected to be approximately 2% or under, on a long-term basis, of the average receivables managed balance .