Online used-car retailer OPENLANE Q3 revenue rises on auction fee growth

By Reuters News


Overview

  • U.S. digital used-vehicle marketplace's Q3 revenue grew 13% yr/yr, driven by auction fee growth

  • Adjusted EBITDA for Q3 rose 23% yr/yr to $107 mln

  • Company increased share repurchase authorization to $400 mln, with $250 mln remaining


Outlook

  • OPENLANE narrows 2026 net income guidance to $169 mln-$177 mln from $163 mln-$176 mln

  • Company raises 2026 adjusted EBITDA outlook to $390 mln-$400 mln from $385 mln-$400 mln

  • OPENLANE expects 2026 operating adjusted EPS of $1.45-$1.52, up from prior $1.40-$1.50


Result Drivers

  • COMMERCIAL VEHICLE SALES - Marketplace commercial vehicles sold grew 46% yr/yr, contributing to overall volume growth

  • US DEALER VOLUME - US dealer vehicles sold grew 22% yr/yr, helping drive 10% overall dealer vehicle sales growth

  • AUCTION FEE GROWTH - Revenue growth was driven by an 18% increase in auction and related fees


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Net Income

$44.70 mln

Q3 Operating Expenses

$490.80 mln

Q3 Operating Income

$70.40 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"

  • Wall Street's median 12-month price target for OPENLANE, Inc. is $45.00, about 15.7% above its November 3 closing price of $38.88

  • The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 25 three months ago


Reuters Recommended Reads

  • Nov 4 - Ralliant Q3 revenue beats estimates, lifts 2026 outlook

  • Nov 4 - Trex Q3 net sales rise 26% on volumes, adjusted EPS beats estimates

  • Nov 3 - Fiserv Q3 adjusted EPS beats, revenue slightly tops estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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