OPENLANE (KAR1) Q3 2026 Earnings Report
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MX:KAR1 Q3 2026 EPS Results
- Actual EPS
- MXN 7.98
- Consensus EPS
- MXN 7.03
- Beat/Miss
- Beat by +MXN 0.95
- One Year Ago EPS
- MXN 6.49
MX:KAR1 Q3 2026 Revenue Results
- Actual Revenue
- MXN 10.41B
- Expected Revenue
- MXN 10.31B
- Beat/Miss
- Beat by +MXN 98.98M
- YoY Revenue Growth
- +12.60%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/04/2026
- Time
- Before Open
- Conference Call
- Wednesday, November 4, 2026
MX:KAR1 Upcoming Earnings
OPENLANE's next earnings date is estimated for February 23, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:KAR1 Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. OPENLANE reported broad-based revenue, EBITDA, cash flow, marketplace volume, U.S. dealer, commercial, and finance growth, along with improved margins, strong liquidity, upwardly tightened guidance, and continued technology and customer-engagement progress. The main challenges were Canadian macroeconomic weakness, used-vehicle value declines affecting dealer conversion, lower commercial and finance yields, expected Q4 seasonality, and a planned increase in go-to-market spending and loan-loss rates.
Company Guidance
OPENLANE tightened full-year Adjusted EBITDA guidance from $385 million-$400 million to $390 million-$400 million, expects a more normal seasonal dip in U.S. dealer volumes in Q4, and increased incremental go-to-market investments in the back half of 2026 from mid-single-digit millions of new spend to low double-digit millions of new spend, with the spending largely concentrated in selected markets. The company expects U.S. commercial performance to remain in line with expectations as lease maturities continue to ramp up, off-lease supply to continue to scale throughout the year and beyond, and off-lease maturities to increase all through 2027 and into 2028. For finance, revised guidance factors in a normal Q4 seasonal pattern with a slight pull-down in the portfolio balance and an increase in the loan loss rate to the low end of the targeted range of 1.5%-2.0%.
- Strong Consolidated Revenue, EBITDA and Cash Flow GrowthThird-quarter consolidated revenue grew 13% to $561 million, Adjusted EBITDA increased 23% to $107 million, and cash from operations rose 34% to $97 million.
- Marketplace Segment Delivered Significant Volume GrowthMarketplace vehicles sold increased 28%, while transacted GMV grew 38% to $10.0 billion. Auction and related revenues rose 18% to $253 million.
- Record U.S. Dealer PerformanceU.S. dealer volumes increased 22%, setting a new single-quarter volume record and marking the sixth consecutive quarter of double-digit U.S. dealer volume growth. U.S. dealer GMV increased 30% to $2.6 billion.
- Commercial Volume Growth and Off-Lease MomentumCommercial volumes grew 46% in the quarter, or 17% excluding the step-function addition of the latest private-label customer. Commercial GMV increased 55% to $7.5 billion, including 76% growth in U.S. commercial GMV, driven by the new OEM launched in Q1 and accelerating U.S. lease maturities.
- Improvement in Commercial Waterfall MixFewer consumer payoffs and more vehicles flowing down the off-lease waterfall improved the U.S. commercial mix. Commercial vehicles sold through the OPENLANE U.S. open sale increased approximately 100% year over year, while about 5 percentage points of volume moved from the top two waterfall categories to the bottom two categories.
- Growing Buyer and Seller EngagementBuyers on private-label programs increased 30% during the quarter, and private-label buyers also transacting in OPENLANE's open-sale channel increased over 45% since the start of the year. This contributed to a 90% year-over-year increase in commercial vehicles sold through the OPENLANE open sale.
- Expansion of AFC Dealer ParticipationNearly two-thirds of AFC's active North American dealer base is registered on OPENLANE. Since the start of 2026, the number of North American AFC dealers transacting on OPENLANE increased 19%, representing about one-third of AFC's total active dealer base.
- Marketplace Profitability ExpansionMarketplace Adjusted EBITDA increased 33% to $58 million, while the Adjusted EBITDA margin expanded 170 basis points to 13%. Management said the margin profile returned in line with expectations as short-term fuel-price volatility decreased.
- Strong Finance Segment Results and Credit PerformanceAFC average managed receivables increased 13% to $2.70 billion, driven by a 9% increase in floor plans outstanding and a 3% increase in average vehicle values. Finance-segment Adjusted EBITDA grew 13% to $49 million, while the annual provision for credit losses was 1.14%, 48 basis points lower than last year.
- High Free Cash Flow Conversion and LiquidityTrailing 12-month adjusted free cash flow totaled $345 million, representing a 90% conversion rate versus the expected range of 65%-75%. Excluding the one-time $58 million balance-sheet benefit from the securitization renewal, LTM free cash flow conversion was 75%. The company ended the quarter with $245 million of unrestricted cash and over $400 million of revolver capacity.
- Guidance Tightened UpwardFull-year 2026 Adjusted EBITDA guidance was narrowed from $385 million-$400 million to $390 million-$400 million.
- Technology and Onboarding ImprovementsA pilot of the streamlined registration process cut onboarding time in half and reduced the time between activation and a dealer's first bid by over 75%. The company also said its price prediction accuracy continues to tighten and that the tool remains the only forward-looking 30, 60, 90-day pricing forecast tool in the market.
- Progress in Canadian SaaS and Technology ModernizationMore than 900 Canadian dealers have enrolled in the MyLot subscription-based SaaS product. OPENLANE also continued rolling out its modernized Canadian auction management system, transitioned its largest operational hubs during the quarter, and expects to complete the project by the end of this year.
- Customer Experience and Brand SatisfactionNew features included expanded seller condition disclosures, enhanced EV battery health information, improved in-transit tracking, and a redesigned checkout process. Transactional NPS remained in the great to excellent range across all geographies, with U.S. seller NPS reaching its highest scores.
- Share Repurchases and Increased AuthorizationOPENLANE repurchased 1.2 million shares during the quarter at an average price of $35.23, bringing year-to-date repurchases to 2.8 million shares at an average price of $32.72. The board increased the share repurchase authorization from $250 million-$400 million.
- Competitive Opportunity and Continued InvestmentManagement said the acquisition of a primary competitor creates an opportunity to capture additional share. The company is pulling forward planned investments into Q4, including sales and operations headcount, brand-awareness programs, and operational capacity to support higher volumes.
- EVs Contributing to Higher-Value ChannelsEVs represent about 15% of the total off-lease maturity portfolio but more than 30% of vehicles being returned because their consumer payoff percentage is lower. Management said a higher percentage of returned EVs flows into the non-grounding dealer auction and OPENLANE open-sale channels, making EVs accretive to the yield calculation.
- Strong Commercial Conversion RatesOff-lease commercial conversion rates were in the 70-ish percent level, which management said remained strong despite increasing maturities. U.S. open-sale conversion rates reached record levels in late Q3, with aggregate rates exceeding 20%.
- Growth Across Larger Dealer AccountsManagement said the greatest U.S. dealer growth is coming from the largest franchise dealer groups, including middle-sized operators expanding from approximately 30 stores to 40 or 50 stores. OPENLANE cited its low-integration model and custom trading networks as factors that resonate with these customers.
MX:KAR1 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 23, 2027 | 2026 (Q4) | 5.90- | 4.64 | ― | ― |
| Nov 04, 2026 | 2026 (Q3) | 7.037.98 | 6.49 | 22.86% (+1.48) | |
| Aug 04, 2026 | 2026 (Q2) | 6.467.42 | 6.12 | 21.21% (+1.30) | |
| May 05, 2026 | 2026 (Q1) | 5.666.49 | 5.75 | 12.90% (+0.74) | |
| Feb 18, 2026 | 2025 (Q4) | 5.014.64 | 3.9 | 19.05% (+0.74) | |
| Nov 12, 2025 | 2025 (Q3) | 4.996.49 | 4.82 | 34.62% (+1.67) | |
| Aug 06, 2025 | 2025 (Q2) | 4.086.12 | 3.53 | 73.68% (+2.60) | |
| May 07, 2025 | 2025 (Q1) | 3.975.75 | 3.53 | 63.16% (+2.23) | |
| Feb 19, 2025 | 2024 (Q4) | 3.843.90 | 2.97 | 31.25% (+0.93) | |
| Nov 06, 2024 | 2024 (Q3) | 4.054.82 | 3.34 | 44.44% (+1.48) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
