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OPENLANE
(NYSE:OPLN)
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Rating:61Neutral
Price Target:
$37.00
▲(6.02% Upside)
Action:Reiterated
Date:09/29/26
The score is driven primarily by improved TTM operating performance and solid free cash flow, offset by a meaningful increase in leverage and earnings/cash-flow volatility. Technicals are mildly weak (negative MACD and below key moving averages), and valuation is a notable headwind due to the very high P/E. A recent extension of funding facilities adds a modest positive offset by improving medium-term funding stability.
Positive Factors
Profitable operating model
Healthy gross, operating, and net margins show that OPENLANE’s marketplace and related services currently convert revenue into meaningful earnings. Continued revenue growth and recovery from the 2023 loss support improving operating economics, although durability remains cycle-dependent.
Negative Factors
Higher financial leverage
The sharp increase in debt relative to equity makes OPENLANE’s capital structure less flexible than in prior periods. If wholesale vehicle demand softens or margins compress, greater leverage could constrain investment, capital allocation, and the ability to absorb operating pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitable operating model
Healthy gross, operating, and net margins show that OPENLANE’s marketplace and related services currently convert revenue into meaningful earnings. Continued revenue growth and recovery from the 2023 loss support improving operating economics, although durability remains cycle-dependent.
Read all positive factors
OPENLANE (OPLN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.60B
Dividend Yield5.49%
Average Volume (3M)1.08M
Price to Earnings (P/E)108.3
Beta (1Y)1.06
Revenue Growth12.46%
EPS Growth-211.41%
CountryUS
Employees4,416
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)0.34
Shares Outstanding122,797,455
10 Day Avg. Volume1,248,006
30 Day Avg. Volume1,081,187
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)2.07
Price to Sales (P/S)1.64
P/FCF Ratio9.44
Enterprise Value/Market Cap1.54
Enterprise Value/Revenue3.42
Enterprise Value/Gross Profit8.27
Enterprise Value/Ebitda17.01
Forecast
1Y Price Target
$46.80Price Target Upside34.10% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.44
Revenue Forecast (FY)$2.19B
OPENLANE Business Overview & Revenue Model
Company Description
OPENLANE, Inc., including its various subsidiaries, functions as a leading digital platform designed for the transaction of pre-owned vehicles, connecting buyers and sellers across major markets in the United States, Canada, Continental Europe, an...
How the Company Makes Money
OPENLANE makes money primarily by monetizing transactions and services tied to wholesale used-vehicle remarketing on its digital platform. Key revenue streams include: (1) Transaction and marketplace fees: fees charged to sellers and/or buyers whe...
OPENLANE Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call reported a very strong, record first quarter with broad marketplace momentum (GMV, vehicle volumes, revenue, EBITDA and cash generation) and meaningful product/technology progress. Headline metrics and a raised full‑year EBITDA outlook point to positive operating leverage and market share gains. Offsetting items include yield and mix pressures (notably in U.S. dealer and commercial yields), modest pressure in finance yields and a one‑time mix effect from a large new private‑label customer, plus macro and regional risks that could temper back‑half performance. On balance, the positive operational and financial progress materially outweigh the transitory and structural challenges discussed.Positive Updates
Record Quarter — Revenue and EBITDA Growth
Total revenue of $528 million, up 15% year‑over‑year; consolidated adjusted EBITDA of $97 million, up 17% — the highest quarter in company history as a digital marketplace.
Negative Updates
Yield and Mix Pressures in Marketplace
U.S. dealer yields declined ~60 basis points versus the Investor Day baseline (680–700 bps range) driven largely by a higher mix of large dealer group sales and sharply higher average vehicle values; per‑vehicle revenue improved but yield compression is notable.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarter — Revenue and EBITDA Growth
Total revenue of $528 million, up 15% year‑over‑year; consolidated adjusted EBITDA of $97 million, up 17% — the highest quarter in company history as a digital marketplace.
Read all positive updates
Company Guidance
OPENLANE raised full‑year adjusted EBITDA guidance to $365–$385 million (from $350–$370M), driven by Marketplace strength; Q1 results included consolidated revenue of $528M (+15%), GMV of $9.1B (+32%), consolidated adjusted EBITDA of $97M (+17%), Marketplace adjusted EBITDA of $52M (+39%, 12% margin) and AFC adjusted EBITDA of $45M (down 1%). Management highlighted the Canadian DST repeal reduced Marketplace cost of services by $17.3M (with $15.9M prior‑period removal and $1.4M in‑quarter savings) and a ~$5.5–$6.0M annual benefit; trailing 12‑month adjusted free cash flow was $259M (75% conversion vs. a 65–70% target). Liquidity and capital notes: unrestricted cash $180M, revolver capacity >$400M, Q1 share repurchases of 964k shares at $27.20 (~0.7% of diluted shares), and a capital priority sequence of organic growth, buybacks, then debt paydown (no material paydowns expected until late‑2026/early‑2027). On Finance, average receivables managed were $2.4B (+3%), net yield 13.6% (–30 bps), Q1 provision for credit losses 1.6% (target 1.5–2.0%); management also expects off‑lease supply to scale through 2026 with maturities up roughly 20–25% in H2.OPENLANE Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
56
Neutral
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.08B | 1.93B | 1.79B | 1.65B | 1.53B | 1.45B |
| Gross Profit | 856.80M | 801.10M | 708.70M | 777.50M | 615.90M | 658.10M |
| EBITDA | 416.70M | 411.90M | 274.90M | 110.80M | 179.00M | 249.90M |
| Net Income | 200.60M | 177.70M | 109.90M | -154.10M | 241.20M | 66.50M |
Balance Sheet | ||||||
| Total Assets | 5.01B | 4.72B | 4.62B | 4.73B | 5.12B | 7.45B |
| Cash, Cash Equivalents and Short-Term Investments | 189.70M | 141.50M | 143.00M | 93.50M | 225.70M | 177.60M |
| Total Debt | 585.50M | 1.42B | 282.90M | 427.40M | 573.70M | 1.95B |
| Total Liabilities | 3.44B | 3.19B | 3.28B | 2.79B | 2.99B | 5.35B |
| Stockholders Equity | 1.57B | 1.54B | 1.34B | 1.94B | 2.13B | 2.10B |
Cash Flow | ||||||
| Free Cash Flow | 347.40M | 336.50M | 223.30M | 176.70M | -527.50M | 348.40M |
| Operating Cash Flow | 403.60M | 391.90M | 276.30M | 228.70M | -466.60M | 412.60M |
| Investing Cash Flow | -362.90M | -149.00M | -70.90M | -83.50M | 70.00M | -1.19B |
| Financing Cash Flow | 44.30M | -257.90M | -158.80M | -273.20M | -1.61B | 204.60M |
OPENLANE Technical Analysis
Positive
34.90
Price Trends
35.23
Positive
37.16
Negative
33.72
Positive
Market Momentum
0.37
Negative
59.29
Neutral
80.55
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPLN, the sentiment is Positive. The current price of 34.9 is below the 20-day moving average (MA) of 35.17, below the 50-day MA of 35.23, and above the 200-day MA of 33.72, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 59.29 is Neutral, neither overbought nor oversold. The STOCH value of 80.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OPLN.
OPENLANE Risk Analysis
OPENLANE disclosed 37 risk factors in its most recent earnings report. OPENLANE reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
OPENLANE Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $66.46B | 20.03 | 46.57% | ― | 53.98% | 159.43% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $4.60B | 108.26 | 13.88% | 5.49% | 12.46% | -211.41% | |
60 Neutral | $1.78B | -28.94 | -14.99% | ― | 13.30% | 4.45% | |
58 Neutral | $7.21B | 23.39 | 4.80% | ― | 4.09% | -40.01% | |
56 Neutral | $5.14B | 6.95 | 33.18% | ― | -0.06% | 35.87% | |
48 Neutral | $246.38M | -3.53 | 73.63% | ― | 97.00% | -42.04% |
* Consumer Cyclical Sector Average
OPLN
OPENLANE
36.81
10.28
38.75%
AN
AutoNation
153.19
-63.44
-29.28%
KMX
CarMax
49.82
5.40
12.16%
CVNA
Carvana Co
57.96
-13.12
-18.46%
UXIN
Uxin
1.03
-2.07
-66.77%
ACVA
ACV Auctions
10.50
1.76
20.14%
OPENLANE Corporate Events
Business Operations and StrategyPrivate Placements and Financing
OPENLANE Extends U.S. and Canadian Funding Facilities
Positive
Sep 28, 2026
On September 25, 2026, Automotive Finance Corporation and AFC Funding Corporation, subsidiaries of OPENLANE, Inc., entered into a second amendment to an existing receivables purchase agreement with a broad syndicate of U.S. lenders. The amendment ...
Stock BuybackPrivate Placements and Financing
OPENLANE Sees Major Secondary Offering and Share Repurchase
Neutral
Aug 13, 2026
On August 11, 2026, Ignition Acquisition Holdings LP, a fund advised by Apax Partners, launched and priced a registered secondary public offering of 8,000,000 shares of OPENLANE common stock, which closed on August 13, 2026, generating approximate...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.