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