OPENLANE, Inc.

OPENLANE runs digital wholesale marketplaces where dealers buy and sell used vehicles. Automakers, lenders and fleet operators also supply cars, including vehicles coming off lease. Its AFC lending business finances inventory for independent dealers.

Third-quarter vehicle volume from commercial sellers grew 46%, compared with 39% in the second quarter. Excluding the newest large customer, third-quarter growth was 17%. Dealer-consigned growth eased to 10% from 13%.

The annual adjusted EBITDA range narrowed from $385 million–$400 million in August to $390 million–$400 million in November. The latest analysis examines why fee yield fell while operating profit rose.

Annual operating adjusted earnings per share are now expected at $1.45–$1.52, up from $1.40–$1.50. That company measure excludes specified expenses and assumes the preferred shares converted at the start of the year, making it different from GAAP earnings per share.

Dealer lending and cash

At September 30, cash and cash equivalents were $244.9 million, separate from $34.7 million of restricted cash. Corporate debt carrying value was about $534.2 million. The revolving facilities were undrawn, with $405.3 million available after $42.6 million of letters of credit.

AFC's dealer lending has its own funding structure. Net finance receivables were $2.764 billion, backed in part by $2.084 billion of gross securitization obligations, or $2.064 billion after issuance costs. These secured borrowings are separate from corporate debt.

Delinquent receivables represented 0.6% of the managed loan portfolio at September 30, up from 0.3% a year earlier. The annualized net finance margin fell to 12.7% from 13.4% in the third quarter, while the finance segment's provision for credit losses declined to $7.7 million from $9.7 million.

In September, OPENLANE extended the U.S. $2 billion and Canadian C$500 million receivables facilities to January 2030. Those amendments produced about $58 million of incremental borrowing. The company reported compliance with its credit and securitization covenants.

Nine-month operating cash flow rose to $309.5 million from $266.4 million. Loan growth used $367.6 million in investing cash, while collateralized borrowing supplied $322.9 million in financing cash. OPENLANE's adjusted free cash flow incorporates both movements; ordinary free cash flow deducts equipment and software purchases from operating cash flow.

Changes in shareholder funding

The remaining preferred shares converted into about 17.1 million common shares in May 2026. The conversion ended the preferred dividend and changed the calculation of earnings attributable to common shareholders. Corporate interest expense also reflects a term loan taken out in October 2025 to help repurchase an earlier portion of preferred stock.

The repurchase program expanded by $150 million to $400 million in October and runs through December 2027. About $250 million remained at October 31.