OPENLANE, Inc. Reports Second Quarter 2025 Financial Results
OPENLANE (NYSE:KAR) reported strong Q2 2025 financial results with significant growth across key metrics. The company achieved revenue of $482 million, up 9% year-over-year, driven by 24% growth in auction fee revenue. Notable highlights include 21% marketplace dealer volume growth and Gross Merchandise Value of $7.5 billion, representing 10% YoY growth.
The company demonstrated robust profitability with income from continuing operations of $33 million (up 212% YoY) and Adjusted EBITDA of $87 million (up 21% YoY). Cash flow performance was strong with operating cash flow of $72 million (up 91% YoY) and Adjusted Free Cash Flow of $87 million (up 34% YoY).
OPENLANE raised its full-year 2025 guidance, increasing Adjusted EBITDA targets to $310-320 million and Operating Adjusted EPS to $1.12-1.17, reflecting confidence in its digital transformation strategy and anticipated growth from increased off-lease supply starting in 2026.
OPENLANE (NYSE:KAR) ha riportato solidi risultati finanziari nel secondo trimestre 2025, con una crescita significativa in metriche chiave. L'azienda ha raggiunto un fatturato di 482 milioni di dollari, in aumento del 9% su base annua, trainata da una crescita del 24% nei ricavi da commissioni d'asta. Tra i punti salienti, si segnala una crescita del 21% nel volume dei concessionari del marketplace e un Valore Lordo della Merce (GMV) di 7,5 miliardi di dollari, con un incremento del 10% rispetto all'anno precedente.
L'azienda ha mostrato una forte redditivit脿 con un utile dalle operazioni continuative di 33 milioni di dollari (in aumento del 212% su base annua) e un EBITDA rettificato di 87 milioni di dollari (in crescita del 21% su base annua). La performance dei flussi di cassa 猫 stata solida con un flusso di cassa operativo di 72 milioni di dollari (in aumento del 91% su base annua) e un Flusso di Cassa Libero Rettificato di 87 milioni di dollari (in crescita del 34% su base annua).
OPENLANE ha rivisto al rialzo le previsioni per l'intero 2025, aumentando gli obiettivi di EBITDA rettificato a 310-320 milioni di dollari e l'utile operativo rettificato per azione (EPS) a 1,12-1,17 dollari, riflettendo la fiducia nella strategia di trasformazione digitale e nella crescita prevista grazie all'aumento dell'offerta di veicoli fuori leasing a partire dal 2026.
OPENLANE (NYSE:KAR) report贸 s贸lidos resultados financieros en el segundo trimestre de 2025, con un crecimiento significativo en m茅tricas clave. La compa帽铆a alcanz贸 unos ingresos de 482 millones de d贸lares, un aumento del 9% interanual, impulsado por un crecimiento del 24% en los ingresos por comisiones de subasta. Entre los aspectos destacados se incluye un crecimiento del 21% en el volumen de concesionarios del mercado y un Valor Bruto de Mercanc铆a (GMV) de 7.5 mil millones de d贸lares, representando un crecimiento del 10% interanual.
La empresa demostr贸 una s贸lida rentabilidad con un ingreso por operaciones continuas de 33 millones de d贸lares (un aumento del 212% interanual) y un EBITDA ajustado de 87 millones de d贸lares (un incremento del 21% interanual). El desempe帽o del flujo de caja fue fuerte con un flujo de caja operativo de 72 millones de d贸lares (un aumento del 91% interanual) y un Flujo de Caja Libre Ajustado de 87 millones de d贸lares (un crecimiento del 34% interanual).
OPENLANE elev贸 sus previsiones para todo el a帽o 2025, aumentando los objetivos de EBITDA ajustado a 310-320 millones de d贸lares y el EPS operativo ajustado a 1.12-1.17 d贸lares, reflejando confianza en su estrategia de transformaci贸n digital y el crecimiento anticipado por el aumento de la oferta de veh铆culos fuera de arrendamiento a partir de 2026.
OPENLANE (NYSE:KAR)電� 2025雲� 2攵勱赴 臧曤牓頃� 鞛 鞁れ爜鞚� 氚滍憸頃橂┌ 欤检殧 歆�響� 鞝勲皹鞐� 瓯胳硱 雸堨棎 霛勲姅 靹膘灔鞚� 旮半頄堨姷雼堧嫟. 须岇偓电� 4鞏� 8,200毵� 雼煬鞚� 毵れ稖鞚� 雼劚頄堨溂氅�, 鞚措姅 鞝勲厔 霃欔赴 雽�牍� 9% 歃濌皜頃� 靾橃箻搿�, 瓴诫Г 靾橃垬耄� 靾橃澋鞚� 24% 靹膘灔頃� 雿� 頌橃瀰鞚� 瓴瓣臣鞛呺媹雼�. 欤检殧 頃橃澊霛检澊韸鸽電� 鞁滌灔 雮� 霐滊煬 瓯半灅霟夓澊 21% 歃濌皜頄堨溂氅�, 齑� 靸來拡 臧�旃�(GMV)電� 75鞏� 雼煬搿� 鞝勲厔 雽�牍� 10% 靹膘灔頄堨姷雼堧嫟.
须岇偓电� 瓿勳啀 鞓侅梾 鞚挫澋 3,300毵� 雼煬(鞝勲厔 雽�牍� 212% 歃濌皜)鞕� 臁办爼 EBITDA 8,700毵� 雼煬(鞝勲厔 雽�牍� 21% 歃濌皜)毳� 旮半頃橂┌ 瓴碃頃� 靾橃澋靹膘潉 氤挫棳欤检棃鞀惦媹雼�. 順勱笀 頋愲 靹标臣霃� 霙办柎雮� 鞓侅梾 順勱笀 頋愲 7,200毵� 雼煬(鞝勲厔 雽�牍� 91% 歃濌皜)鞕� 臁办爼 鞛愳湢 順勱笀 頋愲 8,700毵� 雼煬(鞝勲厔 雽�牍� 34% 歃濌皜)毳� 旮半頄堨姷雼堧嫟.
OPENLANE電� 2025雲� 鞝勳泊 臧�鞚措崢鞀るゼ 靸來枼 臁办爼頃橂┌ 臁办爼 EBITDA 氇╉憸毳� 3鞏� 1,000毵寏3鞏� 2,000毵� 雼煬搿�, 臁办爼 鞓侅梾 欤茧嫻靾滌澊鞚�(EPS)鞚� 1.12~1.17雼煬搿� 靸來枼 臁办爼頄堨溂氅�, 鞚措姅 霐旍韯� 鞝勴櫂 鞝勲灥鞐� 雽�頃� 鞛愳嫚臧愱臣 2026雲勲秬韯� 鞁滌瀾霅橂姅 毽姢 毵岆 彀焿 瓿店笁 歃濌皜鞐� 霐半ジ 靹膘灔 旮半寑毳� 氚橃榿頃� 瓴冹瀰雼堧嫟.
OPENLANE (NYSE:KAR) a publi茅 de solides r茅sultats financiers pour le deuxi猫me trimestre 2025, avec une croissance significative sur les indicateurs cl茅s. La soci茅t茅 a r茅alis茅 un chiffre d'affaires de 482 millions de dollars, en hausse de 9 % en glissement annuel, port茅 par une croissance de 24 % des revenus li茅s aux frais d'ench猫res. Parmi les points forts, on note une croissance de 21 % du volume des concessionnaires sur la place de march茅 et une Valeur Brute de Marchandises (GMV) de 7,5 milliards de dollars, soit une croissance annuelle de 10 %.
L'entreprise a d茅montr茅 une forte rentabilit茅 avec un r茅sultat des op茅rations poursuivies de 33 millions de dollars (en hausse de 212 % en glissement annuel) et un EBITDA ajust茅 de 87 millions de dollars (en hausse de 21 % en glissement annuel). La performance des flux de tr茅sorerie a 茅t茅 solide avec un flux de tr茅sorerie op茅rationnel de 72 millions de dollars (en hausse de 91 % en glissement annuel) et un flux de tr茅sorerie libre ajust茅 de 87 millions de dollars (en hausse de 34 % en glissement annuel).
OPENLANE a relev茅 ses pr茅visions pour l'ensemble de l'ann茅e 2025, augmentant ses objectifs d'EBITDA ajust茅 脿 310-320 millions de dollars et son BPA op茅rationnel ajust茅 脿 1,12-1,17 dollar, refl茅tant la confiance dans sa strat茅gie de transformation digitale et la croissance anticip茅e li茅e 脿 l'augmentation de l'offre de v茅hicules hors leasing 脿 partir de 2026.
OPENLANE (NYSE:KAR) meldete starke Finanzergebnisse f眉r das zweite Quartal 2025 mit erheblichem Wachstum bei wichtigen Kennzahlen. Das Unternehmen erzielte einen Umsatz von 482 Millionen US-Dollar, was einem Anstieg von 9 % gegen眉ber dem Vorjahr entspricht, angetrieben durch ein Wachstum der Auktionsgeb眉hren um 24 %. Bemerkenswerte Highlights sind ein Marktplatz-H盲ndlerumsatzwachstum von 21 % und ein Bruttowarenwert (GMV) von 7,5 Milliarden US-Dollar, was einem Wachstum von 10 % gegen眉ber dem Vorjahr entspricht.
Das Unternehmen zeigte eine robuste Rentabilit盲t mit einem Ergebnis aus fortgef眉hrten Gesch盲ftst盲tigkeiten von 33 Millionen US-Dollar (plus 212 % gegen眉ber dem Vorjahr) und einem bereinigten EBITDA von 87 Millionen US-Dollar (plus 21 % gegen眉ber dem Vorjahr). Die Cashflow-Performance war stark mit einem operativen Cashflow von 72 Millionen US-Dollar (plus 91 % gegen眉ber dem Vorjahr) und einem bereinigten freien Cashflow von 87 Millionen US-Dollar (plus 34 % gegen眉ber dem Vorjahr).
OPENLANE hob seine Prognose f眉r das Gesamtjahr 2025 an und erh枚hte die Ziele f眉r das bereinigte EBITDA auf 310 bis 320 Millionen US-Dollar sowie das bereinigte operative Ergebnis je Aktie (EPS) auf 1,12 bis 1,17 US-Dollar, was das Vertrauen in die digitale Transformationsstrategie und das erwartete Wachstum durch das erh枚hte Angebot an Leasingr眉ckl盲ufern ab 2026 widerspiegelt.
- Revenue grew 9% YoY to $482 million with auction fee revenue up 24%
- Income from continuing operations increased 212% YoY to $33 million
- Adjusted EBITDA grew 21% YoY to $87 million
- Operating cash flow increased 91% YoY to $72 million
- Marketplace segment now represents 51% of consolidated Adjusted EBITDA
- Company raised full-year 2025 guidance for both Adjusted EBITDA and Operating Adjusted EPS
- Dealer volume grew 21% with double-digit increases in unique buying and selling dealers
- Service revenue declined from $147.1M to $142.1M YoY in Q2
- Finance revenue decreased slightly from $107.8M to $106.2M YoY
- Selling, general and administrative expenses increased 9.2% YoY to $114.3M
- Recorded $7.0M loss on sale of property
Insights
OPENLANE delivered exceptional Q2 growth with 24% higher auction fees, raised guidance, and strong dealer volume growth signaling digital marketplace success.
OPENLANE has delivered remarkably strong Q2 2025 results that demonstrate the scalability and effectiveness of their digital marketplace strategy. The company posted
The
Cash flow metrics were equally impressive, with operating cash flow up
The company's confidence is evident in its raised full-year guidance, with Adjusted EBITDA now projected at
Perhaps most telling about OPENLANE's transformation is that the marketplace segment now represents
- Marketplace dealer volume growth of
21% YoY - Gross Merchandise Value (GMV) of approximately
$7.5 billion 10% YoY growth - Revenue of
$482 million 9% 听YoY growth, driven by24% growth in auction fee revenue - Income from continuing operations of
$33 million 212% 听YoY growth - Adjusted EBITDA of
$87 million 21% 听YoY growth - Cash flow from operating activities of
$72 million 91% 听YoY growth - Adjusted Free Cash Flow of
$87 million 34% 听YoY growth - Raised full year guidance for Adjusted EBITDA and Operating Adjusted EPS
"OPENLANE delivered a very strong second quarter, growing auction fee revenue by
"OPENLANE is successfully executing our 2025 plan and longer-term strategy," said Brad Herring, CFO of OPENLANE. "Our second quarter results further reinforce the strong scalability characteristics of our asset-light, digital operating model, and I am very pleased that the marketplace segment now represents
2025 Guidance
The company is updating its annual guidance to the following:
Previous Guidance (February 19, 2025) | Revised Guidance (August 6, 2025) | ||
Income from continuing operations (in millions) | |||
Adjusted EBITDA (in millions) | |||
Income from continuing operations per share - diluted * | |||
Operating Adjusted EPS |
* The company uses the two-class method of calculating income from continuing operations per diluted share. Under the two-class method, income from continuing operations is adjusted for dividends and undistributed earnings (losses) to the holders of the Series A Preferred Stock, and the weighted average diluted shares do not assume conversion of the preferred shares to common shares. |
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Earnings guidance does not contemplate future items such as business development activities, strategic developments (such as听restructurings, spin-offs or dispositions of assets or investments), contingent purchase price adjustments, significant expenses related to litigation, tax adjustments, adverse changes in the value of foreign currencies relative to the
Earnings Conference Call Information
OPENLANE will be hosting an earnings conference call and webcast on Wednesday, August听6, 2025 at 8:30 a.m. ET. The conference call may be accessed by calling 1-833-634-2155 and asking to join the OPENLANE call. A live webcast will be available at the investor relations section of corporate.openlane.com. Supplemental financial information for OPENLANE's second quarter 2025 results is available at the investor relations section of corporate.openlane.com.
The archive of the webcast will be available following the call at the investor relations section of corporate.openlane.com for a limited time.
About OPENLANE
OPENLANE, Inc. (NYSE: KAR), provides sellers and buyers across the global wholesale used vehicle industry with innovative, technology-driven remarketing solutions. OPENLANE's unique end-to-end platform supports whole car, financing, logistics and other ancillary and related services. Our integrated marketplaces reduce risk, improve transparency and streamline transactions for customers around the globe. Headquartered in
Forward-Looking Statements
Certain statements contained in this release include, and the company may make related oral, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and which are subject to certain risks, trends and uncertainties. In particular, statements made that are not historical facts (including but not limited to statements regarding our growth opportunities and strategies, industry outlook, competitive position, business and investment plans and initiatives, the impact of macroeconomic conditions, tariffs and global trade policy, and 2025 financial guidance) may be forward-looking statements. Words such as "should," "may," "will," "would," "anticipate," "expect," "project," "intend," "contemplate," "plan," "believe," "seek," "estimate," "assume," "can," "could," "continue," "of the opinion," "confident," "is set," "is on track," "outlook," "target," "position," "predict," "initiative," "goal," "opportunity" and similar expressions identify forward-looking statements. Such statements are based on management's current assumptions, expectations and/or beliefs, are not guarantees of future performance and are subject to substantial risks, uncertainties and changes that could cause actual results to differ materially from the results projected, expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the section entitled "Risk Factors" in the company's annual and quarterly periodic reports, and in the company's other filings and reports filed with the Securities and Exchange Commission. The forward-looking statements are made as of the date of this release. The company undertakes no obligation to update any forward-looking statements.
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OPENLANE, Inc Condensed Consolidated Statements of Income (In millions, except per share data) (Unaudited) | |||||||
Three Months Ended | Six Months Ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Operating revenues | |||||||
Auction fees | $听听听听听 134.9 | $听听听听听 108.7 | $听听听听听 260.1 | $听听听听听 218.6 | |||
Service revenue | 142.1 | 147.1 | 282.4 | 297.3 | |||
Purchased vehicle sales | 98.5 | 80.2 | 184.2 | 138.4 | |||
Finance revenue | 106.2 | 107.8 | 215.1 | 219.4 | |||
Total operating revenues | 481.7 | 443.8 | 941.8 | 873.7 | |||
Operating expenses | |||||||
Cost of services (exclusive of depreciation and amortization) | 254.4 | 245.9 | 496.0 | 459.8 | |||
Finance interest expense | 26.9 | 31.9 | 54.5 | 64.5 | |||
Provision for credit losses | 8.7 | 13.3 | 18.0 | 29.1 | |||
Selling, general and administrative | 114.3 | 104.7 | 221.5 | 211.2 | |||
Depreciation and amortization | 23.0 | 24.1 | 45.7 | 48.4 | |||
Loss on sale of property | 7.0 | 鈥� | 7.0 | 鈥� | |||
Total operating expenses | 434.3 | 419.9 | 842.7 | 813.0 | |||
Operating profit | 47.4 | 23.9 | 99.1 | 60.7 | |||
Interest expense | 3.1 | 5.5 | 7.1 | 12.6 | |||
Other (income) expense, net | (7.4) | 0.2 | (12.4) | 0.7 | |||
Income from continuing operations before income taxes | 51.7 | 18.2 | 104.4 | 47.4 | |||
Income taxes | 18.3 | 7.5 | 34.1 | 18.2 | |||
Income from continuing operations | 33.4 | 10.7 | 70.3 | 29.2 | |||
Income from discontinued operations, net of income taxes | 鈥� | 鈥� | 鈥� | 鈥� | |||
Net income | $听听听听听听听 33.4 | $听听听听听听听 10.7 | $听听听听听听听 70.3 | $听听听听听听听 29.2 | |||
Net income per share - basic | |||||||
Income from continuing operations | $听听听听听听听 0.16 | $听听听听听听听听听听 鈥� | $听听听听听听听 0.34 | $听听听听听听听 0.05 | |||
Income from discontinued operations | 鈥� | 鈥� | 鈥� | 鈥� | |||
Net income per share - basic | $听听听听听听听 0.16 | $听听听听听听听听听听 鈥� | $听听听听听听听 0.34 | $听听听听听听听 0.05 | |||
Net income per share - diluted | |||||||
Income from continuing operations | $听听听听听听听 0.15 | $听听听听听听听听听听 鈥� | $听听听听听听听 0.33 | $听听听听听听听 0.05 | |||
Income from discontinued operations | 鈥� | 鈥� | 鈥� | 鈥� | |||
Net income per share - diluted | $听听听听听听听 0.15 | $听听听听听听听听听听 鈥� | $听听听听听听听 0.33 | $听听听听听听听 0.05 | |||
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OPENLANE, Inc Condensed Consolidated Balance Sheets (In millions) (Unaudited) | |||
June 30, 2025 | December 31, 2024 | ||
Cash and cash equivalents | $听听听听听听听听听听听听听听听 119.1 | $听听听听听听听听听听听听听听听 143.0 | |
Restricted cash | 29.7 | 40.7 | |
Trade receivables, net of allowances | 305.9 | 248.2 | |
Finance receivables, net of allowances | 2,355.8 | 2,322.7 | |
Other current assets | 94.3 | 96.9 | |
Total current assets | 2,904.8 | 2,851.5 | |
Goodwill | 1,244.9 | 1,222.9 | |
Customer relationships, net of accumulated amortization | 110.9 | 117.7 | |
Operating lease right-of-use assets | 62.9 | 67.1 | |
Property and equipment, net of accumulated depreciation | 104.2 | 149.3 | |
Intangible and other assets | 210.6 | 213.8 | |
Total assets | $听听听听听听听听听听听听 4,638.3 | $听听听听听听听听听听听听 4,622.3 | |
Current liabilities, excluding obligations collateralized by 听听听听 finance receivables and current maturities of debt | $听听听听听听听听听听听听听听听 784.6 | $听听听听听听听听听听听听听听听 682.7 | |
Obligations collateralized by finance receivables | 1,724.8 | 1,660.3 | |
Current maturities of debt | 鈥� | 222.5 | |
Total current liabilities | 2,509.4 | 2,565.5 | |
Long-term debt | 鈥� | 鈥� | |
Operating lease liabilities | 56.8 | 60.4 | |
Other non-current liabilities | 44.0 | 41.2 | |
Temporary equity | 612.5 | 612.5 | |
Stockholders' equity | 1,415.6 | 1,342.7 | |
Total liabilities, temporary equity and stockholders' equity | $听听听听听听听听听听听听 4,638.3 | $听听听听听听听听听听听听 4,622.3 | |
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OPENLANE, Inc Condensed Consolidated Statements of Cash Flows (In millions) (Unaudited) | |||
Six Months Ended June 30, | |||
2025 | 2024 | ||
Operating activities | |||
Net income | $听听听听听听听听 70.3 | $听听听听听听听听 29.2 | |
Net income from discontinued operations | 鈥� | 鈥� | |
Adjustments to reconcile net income to net cash provided byoperating activities: | |||
Depreciation and amortization | 45.7 | 48.4 | |
Provision for credit losses | 18.0 | 29.1 | |
Deferred income taxes | 2.8 | 0.4 | |
Amortization of debt issuance costs | 4.4 | 4.7 | |
Stock-based compensation | 5.8 | 10.1 | |
Loss on sale of property | 7.0 | 鈥� | |
Other non-cash, net | 0.2 | 0.1 | |
Changes in operating assets and liabilities, net of acquisitions: | |||
Trade receivables and other assets | (55.1) | (23.7) | |
Accounts payable and accrued expenses | 95.1 | 39.4 | |
Net cash provided by operating activities - continuing operations | 194.2 | 137.7 | |
Net cash used by operating activities - discontinued operations | 鈥� | (0.1) | |
Investing activities | |||
Net (increase) decrease in finance receivables held for investment | (45.0) | 33.1 | |
Purchases of property, equipment and computer software | (26.1) | (25.9) | |
Investments in securities | (0.7) | (1.6) | |
Proceeds from the sale of property and equipment | 42.4 | 0.3 | |
Net cash (used by) provided by investing activities - continuing operations | (29.4) | 5.9 | |
Net cash provided by investing activities - discontinued operations | 鈥� | 鈥� | |
Financing activities | |||
Net increase (decrease) in book overdrafts | 0.5 | (1.6) | |
Net repayments of lines of credit | (23.2) | (81.2) | |
Net increase (decrease) in obligations collateralized by finance receivables | 49.4 | (56.1) | |
Payments for debt issuance costs/amendments | (0.4) | (2.2) | |
Payments on long-term debt | (210.0) | 鈥� | |
Payments on finance leases | 鈥� | (0.6) | |
Issuance of common stock under stock plans | 2.9 | 0.8 | |
Tax withholding payments for vested RSUs | (6.5) | (3.4) | |
Repurchase and retirement of common stock | (9.4) | 鈥� | |
Dividends paid on Series A Preferred Stock | (22.2) | (22.2) | |
Net cash used by financing activities - continuing operations | (218.9) | (166.5) | |
Net cash provided by financing activities - discontinued operations | 鈥� | 鈥� | |
Net change in cash balances of discontinued operations | 鈥� | 鈥� | |
Effect of exchange rate changes on cash | 19.2 | (7.3) | |
Net decrease in cash, cash equivalents and restricted cash | (34.9) | (30.3) | |
Cash, cash equivalents and restricted cash at beginning of period | 183.7 | 158.9 | |
Cash, cash equivalents and restricted cash at end of period | $听听听听听听 148.8 | $听听听听听听 128.6 | |
Cash paid for interest | $听听听听听听听听 58.1 | $听听听听听听听听 74.6 | |
Cash paid for taxes, net of refunds - continuing operations | $听听听听听听听听 27.3 | $听听听听听听听听 29.4 | |
Cash paid for taxes, net of refunds - discontinued operations | $听听听听听听听听听 (1.5) | $听听听听听听听听听听听听 鈥� | |
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OPENLANE, Inc.
Reconciliation of Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, Free Cash Flow, Adjusted Free Cash Flow, operating adjusted income from continuing operations and operating adjusted income from continuing operations per share (or "Operating Adjusted EPS") as presented herein are supplemental measures of our performance and liquidity that are not required by, or presented in accordance with, generally accepted accounting principles in
EBITDA is defined as net income (loss), plus interest expense net of interest income, income tax provision (benefit), depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for the items of income and expense and expected incremental revenue and cost savings as described in our senior secured credit agreement covenant calculations. Management believes that the inclusion of supplementary adjustments to EBITDA applied in presenting Adjusted EBITDA is appropriate to provide additional information to investors about one of the principal measures of performance used by our creditors. In addition, management uses EBITDA and Adjusted EBITDA to evaluate our performance.
Free Cash Flow is defined as net cash provided by operating activities, less purchases of property, equipment and computer software. Adjusted Free Cash Flow is Free Cash Flow adjusted for the cash portion of EBITDA addbacks to calculate Adjusted EBITDA, the net change in finance receivables held for investment and the net change in obligations collateralized by finance receivables. Management uses Adjusted Free Cash Flow to measure the funds generated in a given period that are available for capital allocation.
Operating adjusted income from continuing operations is defined as income from continuing operations adjusted for acquired amortization expense, gains/losses on sale of property or businesses, impairments to goodwill or other intangible assets and certain other non-recurring items. Amortization expense associated with acquired intangible assets is not representative of ongoing capital expenditures but has a continuing effect on our reported results. Management believes operating adjusted income from continuing operations provides comparability to other companies that may not have incurred these types of non-cash expenses or that report a similar measure. Operating Adjusted EPS represents operating adjusted income from continuing operations divided by weighted average diluted shares, including the assumed conversion of preferred shares.
EBITDA, Adjusted EBITDA, Free Cash Flow, Adjusted Free Cash Flow, operating adjusted income from continuing operations and operating adjusted income from continuing operations per share have limitations as analytical tools, and should not be considered in isolation or as a substitute for analysis of the results as reported under GAAP. These non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies.
The following tables reconcile income from continuing operations to EBITDA and Adjusted EBITDA for the periods presented:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
(In millions), (Unaudited) | 2025 | 2024 | 2025 | 2024 | |||
Income from continuing operations | $听听听听听 33.4 | $听听听听听 10.7 | $听听听听听 70.3 | $听听听听听 29.2 | |||
Add back: | |||||||
Income taxes | 18.3 | 7.5 | 34.1 | 18.2 | |||
Finance interest expense | 26.9 | 31.9 | 54.5 | 64.5 | |||
Interest expense, net of interest income | 1.3 | 5.2 | 4.7 | 11.9 | |||
Depreciation and amortization | 23.0 | 24.1 | 45.7 | 48.4 | |||
EBITDA | 102.9 | 79.4 | 209.3 | 172.2 | |||
Non-cash stock-based compensation | 4.4 | 3.7 | 6.4 | 10.7 | |||
Acquisition related costs | 鈥� | 0.2 | 鈥� | 0.5 | |||
Securitization interest | (24.4) | (29.2) | (49.5) | (59.1) | |||
Loss on sale of property | 7.0 | 鈥� | 7.0 | 鈥� | |||
Severance | 2.4 | 6.0 | 4.4 | 7.7 | |||
Foreign currency (gains) losses | (5.6) | 0.5 | (8.9) | 2.5 | |||
Professional fees related to business improvement efforts | 鈥� | 0.7 | 鈥� | 1.5 | |||
Impact for newly enacted Canadian DST related to prior years | 鈥� | 10.0 | 鈥� | 10.0 | |||
Other | 鈥� | 0.1 | 0.8 | 0.2 | |||
听 Total deductions | (16.2) | (8.0) | (39.8) | (26.0) | |||
Adjusted EBITDA | $听听听听听 86.7 | $听听听听听 71.4 | $听听听听 169.5 | $听听听听 146.2 | |||
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Three Months Ended June 30, 2025 | |||||
(In millions), (Unaudited) | Marketplace | Finance | Consolidated | ||
Income from continuing operations | $听听听听听听听听听听听听 8.6 | $听听听听听听听听听听 24.8 | $听听听听听听听听听听 33.4 | ||
Add back: | |||||
Income taxes | 7.5 | 10.8 | 18.3 | ||
Finance interest expense | 鈥� | 26.9 | 26.9 | ||
Interest expense, net of interest income | 1.3 | 鈥� | 1.3 | ||
Depreciation and amortization | 19.9 | 3.1 | 23.0 | ||
EBITDA | 37.3 | 65.6 | 102.9 | ||
Non-cash stock-based compensation | 3.4 | 1.0 | 4.4 | ||
Securitization interest | 鈥� | (24.4) | (24.4) | ||
Loss on sale of property | 7.0 | 鈥� | 7.0 | ||
Severance | 2.3 | 0.1 | 2.4 | ||
Foreign currency (gains) losses | (5.5) | (0.1) | (5.6) | ||
听 Total addbacks (deductions) | 7.2 | (23.4) | (16.2) | ||
Adjusted EBITDA | $听听听听听听听听听听 44.5 | $听听听听听听听听听听 42.2 | $听听听听听听听听听听 86.7 | ||
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The following table reconciles net cash provided by operating activities to Free Cash Flow and Adjusted Free Cash Flow for the periods presented:
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Three Months Ended June 30, | |||
(In millions), (Unaudited) | 2025 | 2024 | |
Net cash provided by operating activities | $听听听听听 71.6 | $听听听听听 37.5 | |
Purchases of property, equipment and computer software | (14.2) | (13.0) | |
Free Cash Flow | 57.4 | 24.5 | |
Acquisition related costs | 鈥� | 0.6 | |
Severance | 2.1 | 2.0 | |
Professional fees related to business improvement efforts | 鈥� | 1.1 | |
Other | 0.6 | 0.2 | |
Net (increase) decrease in finance receivables held for investment | (25.2) | 59.5 | |
Net increase (decrease) in obligations collateralized by finance receivables | 51.6 | (23.3) | |
Adjusted Free Cash Flow | $听听听听听 86.5 | $听听听听听 64.6 | |
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The following table reconciles income from continuing operations to operating adjusted income from continuing operations and operating adjusted income from continuing operations per diluted share for the periods presented:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
(In millions, except per share amounts), (Unaudited) | 2025 | 2024 | 2025 | 2024 | |||
Income from continuing operations | $听听听听听 33.4 | $听听听听听 10.7 | $听听听听听 70.3 | $听听听听听 29.2 | |||
Acquired amortization expense | 8.3 | 9.1 | 16.6 | 18.4 | |||
Impact for newly enacted Canadian DST related to prior years | 鈥� | 10.0 | 鈥� | 10.0 | |||
Loss on sale of property | 7.0 | 鈥� | 7.0 | 鈥� | |||
Income taxes (1) | (1.4) | (2.1) | (2.6) | (2.5) | |||
Operating adjusted income from continuing operations | $听听听听听 47.3 | $听听听听听 27.7 | $听听听听听 91.3 | $听听听听听 55.1 | |||
Operating adjusted income from discontinued operations | $听听听听听听听听听 鈥� | $听听听听听听听听听 鈥� | $听听听听听听听听听 鈥� | $听听听听听听听听听 鈥� | |||
Operating adjusted income | $听听听听听 47.3 | $听听听听听 27.7 | $听听听听听 91.3 | $听听听听听 55.1 | |||
Operating adjusted income from continuing operations per | $听听听听听 0.33 | $听听听听听 0.19 | $听听听听听 0.63 | $听听听听听 0.38 | |||
Operating adjusted income from discontinued operations per | 鈥� | 鈥� | 鈥� | 鈥� | |||
Operating adjusted income per share - diluted | $听听听听听 0.33 | $听听听听听 0.19 | $听听听听听 0.63 | $听听听听听 0.38 | |||
Weighted average diluted shares - including assumed conversion | 144.4 | 144.4 | 144.3 | 145.1 | |||
(1) | For the three and six months ended June 30, 2025 and 2024, each tax deductible item was booked to the applicable statutory rate. The deferred tax benefits of |
(2) | The Series A Preferred Stock dividends and undistributed earnings allocated to participating securities have not been included in the determination of operating adjusted income for purposes of calculating operating adjusted income per diluted share. |
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The following table reconciles income from continuing operations to EBITDA and Adjusted EBITDA for the 2025 guidance presented:
2025 Guidance - Previous | 2025 Guidance - Revised | ||||||
(In millions), (Unaudited) | Low | High | Low | High | |||
Income from continuing operations | $听听听听听听 100 | $听听听听听听 114 | $听听听听听听 132 | $听听听听听听 140 | |||
Add back: | |||||||
Income taxes | 47 | 53 | 52 | 54 | |||
Finance interest expense | 110 | 110 | 110 | 109 | |||
Interest expense, net of interest income | 12 | 12 | 6 | 6 | |||
Depreciation and amortization | 94 | 94 | 92 | 92 | |||
EBITDA | 363 | 383 | 392 | 401 | |||
听 Total addbacks (deductions), net | (73) | (73) | (82) | (81) | |||
Adjusted EBITDA | $听听听听听听 290 | $听听听听听听 310 | $听听听听听听 310 | $听听听听听听 320 | |||
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The following table reconciles income from continuing operations to operating adjusted income from continuing operations and operating adjusted income from continuing operations per diluted share for the 2025 guidance presented:
2025 Guidance - Previous | 2025 Guidance - Revised | ||||||
(In millions, except per share amounts), (Unaudited) | Low | High | Low | High | |||
Income from continuing operations | $听听听听听听 100 | $听听听听听听 114 | $听听听听听听 132 | $听听听听听听 140 | |||
听听 Total adjustments, net | 31 | 31 | 29 | 29 | |||
Operating adjusted income from continuing operations | $听听听听听听 131 | $听听听听听听 145 | $听听听听听听 161 | $听听听听听听 169 | |||
Operating adjusted income from continuing operations per | $听听听听听 0.90 | $听听听听听 1.00 | $听听听听听 1.12 | $听听听听听 1.17 | |||
Weighted average diluted shares - including assumed | 145 | 145 | 144 | 144 | |||
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Analyst Inquiries: | Media Inquiries: |
Itunu Orelaru | Laurie Dippold听听 |
(317) 249-4559 | (317) 468-3900 |
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