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Jun 30
OPENLANE Q2 2025 Earnings Report
OPENLANE, Inc. reported its second quarter 2025 financial results, showcasing significant growth in auction fee revenue, Adjusted EBITDA, and Adjusted Free Cash Flow.
Key Takeaways
OPENLANE delivered a very strong second quarter in 2025, with revenue growing 9% year-over-year to $481.7 million, driven by a 24% increase in auction fee revenue. The company reported a net income of $33.4 million and an operating profit of $47.4 million. Adjusted EBITDA increased by 21% to $86.7 million, and Adjusted Free Cash Flow reached $86.5 million, demonstrating strong operational performance and cash generation. The marketplace segment now accounts for 51% of consolidated Adjusted EBITDA.
Revenue increased by 9% year-over-year to $481.7 million, primarily driven by a 24% growth in auction fee revenue.
Net income from continuing operations surged by 212% year-over-year to $33.4 million.
Adjusted EBITDA grew by 21% year-over-year to $86.7 million, with the marketplace segment contributing 51% of this total.
Cash flow from operating activities increased by 91% year-over-year to $71.6 million, and Adjusted Free Cash Flow was $86.5 million.
OPENLANE
OPENLANE
OPENLANE Revenue by Segment
Revenue by Segment
Marketplace Revenue
CapyFin.comFinance Revenue
CapyFin.comAuction Fees Revenue
CapyFin.comService Revenue
CapyFin.comPurchased Vehicle Sales Revenue
CapyFin.com Forward Guidance
OPENLANE has raised its full-year 2025 guidance for Adjusted EBITDA and Operating Adjusted EPS, reflecting confidence in continued growth and profitability.
Positive Outlook
- Revised Adjusted EBITDA guidance raised to $310 million - $320 million (from $290 million - $310 million).
- Revised Operating Adjusted EPS guidance raised to $1.12 - $1.17 (from $0.90 - $1.00).
- Revised Income from continuing operations guidance raised to $132 million - $140 million (from $100 million - $114 million).
- Company remains well-positioned to benefit from the industry's transition from physical to digital.
- Anticipated increase in off-lease supply beginning in 2026 is expected to further support growth.
Challenges Ahead
- Guidance does not account for future business development activities.
- Strategic developments like restructurings or dispositions are not contemplated in the guidance.
- Contingent purchase price adjustments are not included in the forecast.
- Significant expenses related to litigation are not factored into the guidance.
- Adverse changes in foreign currency values relative to the U.S. dollar could impact results.