Q2 2026 Openlane Inc Earnings Call Transcript
Key Points
- Openlane Inc (OPLN) delivered strong Q2 results with consolidated revenue growth of 15% and adjusted EBITDA up 19% to $103 million, driven by robust marketplace performance.
- The company's marketplace segment saw significant growth, with overall vehicles sold up 27% and GMV increasing 41% to $10.5 billion, led by a 31% surge in US dealer-to-dealer volumes.
- Openlane Inc (OPLN) raised its full-year 2026 adjusted EBITDA guidance to $385-$400 million, reflecting strong momentum and confidence in its growth strategy.
- The finance segment, AFC, delivered another solid quarter with adjusted EBITDA up 10% to $46.5 million, while maintaining a low loan loss rate of 1.17%.
- The company's go-to-market investments are yielding positive returns, with six consecutive quarters of double-digit growth in new buyers, sellers, and unique vehicle listings in the US.
- Openlane Inc (OPLN) is capitalizing on the cyclical recovery in off-lease supply, with commercial vehicle sales up 39% and a 75% increase in US open sale channel volumes.
- Openlane Inc (OPLN) experienced significant margin pressure in its transportation business due to volatile and rising diesel prices, negatively impacting marketplace adjusted EBITDA margins by over 100 basis points.
- Elevated used vehicle values in Q2 slowed the flow of off-lease vehicles down the waterfall, temporarily stalling the expected improvement in commercial yields and mix.
- The company's Canadian dealer-to-dealer business saw a 15% decline in GMV, impacted by tough comparisons from tariff-related pull-forward effects in the prior year.
- Trailing twelve-month adjusted free cash flow conversion was 62%, below the expected 65-75% range, due to stronger-than-anticipated growth in the AFC receivable balance using approximately $45 million in cash.
- US commercial yields declined approximately 4 basis points to 0.63%, driven by an increase in consumer payoffs as the trend of declining lease equity temporarily stalled.
- Openlane Inc (OPLN) expects US dealer growth rates to temper in the second half of 2026 due to more challenging year-over-year comparisons.
Good day and welcome to Open Lane second quarter 2026 earnings conference call.
All participants will be in listen-only mode should you need assistance, please signal a conference specialist by pressing the key followed by 0.
After today's presentation, there will be an opportunity to ask questions, to ask a question you may press star, then one on a touch tone phone to withdraw your question, please press 2.
Please note this event is being recorded.
I would now like to turn the conference over to Bill Wright, Vice President of Investor Relations.
Please go ahead.
Thank you, operator.
Good morning, everyone.
Welcome to OpenLanes second quarter, 2026 earnings call.
With me today are Peter Kenney, CEO of Open Lane, and Brad Herring, CFO of Open Lane.
Our remarks today include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1,995.
Such forward-looking
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