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Here are a few analogies for Openlane (KAR):

• eBay for wholesale used cars
• Manheim for the digital age
• Carvana for dealers

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• Openlane Digital Wholesale Vehicle Marketplace: Provides an integrated online platform for professional buyers and sellers to transact wholesale used vehicles through various auction formats and listing services.
• Vehicle Logistics and Inspection Services: Offers transportation, detailed condition reports, and reconditioning services to streamline the movement and preparation of vehicles for sale.
• Dealer Financing Solutions: Supplies floorplan financing and other credit options to licensed dealers to facilitate the acquisition and management of vehicle inventory.
• Data and Analytics Tools: Delivers market insights and analytical tools to help participants make informed pricing and purchasing decisions within the wholesale vehicle ecosystem.

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Openlane (symbol: KAR) operates primarily as a business-to-business (B2B) marketplace for used vehicles. Due to the nature of its diversified marketplace model, Openlane serves a wide array of business customers, and no single customer typically accounts for a significant portion of its total revenue (as stated in their public filings, generally less than 10% of consolidated revenues for any single customer).

Therefore, instead of listing specific major customer companies, Openlane's customer base can be described by the following categories of businesses that regularly utilize its digital platforms for buying and selling vehicles:

• Franchised and Independent Used Vehicle Dealers: These businesses are key participants on Openlane's platforms, actively buying and selling a wide range of used vehicles.
• Fleet and Lease Companies: Entities such as rental car companies, corporate fleets, and vehicle leasing firms use Openlane to efficiently remarket their off-lease, retired, or surplus vehicles.
• Automotive Manufacturers (OEMs): Original Equipment Manufacturers may utilize the platforms for various vehicle remarketing and disposal needs.
• Financial Institutions: Banks, credit unions, and other lending institutions use Openlane to sell repossessed vehicles or manage the disposal of other automotive assets.

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• S&P Global (SPGI)

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Peter Kelly, CEO
Peter Kelly sets the strategic direction for Openlane. He has a long history with the company, having served as President from January 2019 to March 2021, President of Digital Services from December 2014 to January 2019, and Chief Technology Officer from June 2013 to January 2019. Previously, he held the roles of President and Chief Executive Officer of Openlane from February 2011 to June 2013, and President and Chief Financial Officer of Openlane from February 2010 to February 2011. He also held various other positions at Openlane from 1999 to 2010.

Brad Herring, EVP & Chief Financial Officer
Effective May 27, 2025, Brad Herring will assume the role of Executive Vice President and Chief Financial Officer at Openlane, overseeing all financial, reporting, and investor-facing functions. He brings over 30 years of experience in financial operations and investor relations. Prior to joining Openlane, Herring served as CFO of Enfusion (ENFN) and Shift4 Payments (FOUR). His experience also includes CFO positions at Elavon, a global provider of merchant services and payment processing, and Fiserv's Digital Banking Group. He held progressive financial leadership roles at Equifax, Delta Air Lines, and ING North America.

Chuck Coleman, EVP, Chief Legal Officer & Secretary
Chuck Coleman is responsible for managing legal and business planning, corporate governance, securities, litigation, and mergers and acquisitions for Openlane. He has served as Chief Legal Officer, Executive Vice President, and Secretary of the company since November 2020. Before this, he was the Senior Vice President and General Counsel from October 2017 to October 2020, Assistant Secretary from April 2015 to October 2019, and Vice President and Assistant General Counsel from April 2015 to October 2017.

James Coyle, EVP & President, Marketplace
James Coyle leads Openlane’s marketplaces, platforms, and strategy, from innovation to execution and expansion. He has served as the Executive Vice President and President of North American Marketplaces of the company since 2023. Prior to this, he was the Chief Digital Officer from October 2021 to July 2023. Coyle also held the roles of Chief Executive Officer and Director at RealSelf, Inc. from September 2020 to October 2021, and Chief Operating Officer from April 2019 to September 2020.

Tobin Richer, EVP, Marketing & Communications
Tobin Richer directs the marketing and communications strategy and operations for Openlane and its various brands. He is listed as Executive Vice President of Marketing & Communications.

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1. High Debt and Overleveraging: Openlane is significantly leveraged with $1.89 billion of debt, substantially exceeding its $146.4 million cash balance. The company's net-debt-to-EBITDA ratio of 5x indicates that it is overleveraged. This high level of debt could lead to increased borrowing expenses, potential downgrades in credit ratings if profitability declines, and reduced financial flexibility to invest or withstand adverse market conditions.
2. Intense Market Competition: The automotive remarketing sector, where Openlane operates, is highly competitive. Key competitors include Manheim (owned by Cox Automotive), Carvana's ADESA auction business, ACV Auctions (NASDAQ: ACVA), and America's Auto Auction. The presence of numerous platforms offering similar services, along with the rise of direct-to-consumer sales models and other online auction platforms, could negatively impact Openlane's pricing power, market position, transaction volumes, and overall revenue.
3. Vulnerability to Automotive Industry Cyclicality and Supply Chain Disruptions: Openlane's business performance is inherently tied to the health and dynamics of the automotive industry. The cyclical nature of this industry means that economic downturns, rising interest rates, or other macroeconomic factors can depress both new and used vehicle sales. Furthermore, supply chain disruptions in new car production can lead to unpredictable fluctuations in the availability of used vehicles for auction, directly impacting Openlane's transaction opportunities and financial performance.

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Openlane (NYSE: KAR) operates in the wholesale used vehicle remarketing industry, with its primary services being a digital marketplace for used vehicles and floorplan financing. The company's addressable market in North America is substantial, encompassing both retail used and wholesale vehicle transactions.

The total addressable market for used vehicles in North America is estimated at 55 million transactions annually, comprising approximately 40 million retail used vehicle transactions and 15 million wholesale vehicle transactions. Openlane focuses on the digital wholesale used vehicle sector, a segment estimated to be only 30% digital, indicating significant potential for further penetration from physical channels.

Openlane's Marketplace segment connects buyers and sellers of pre-owned vehicles through its digital platforms across North America and Europe. This segment offers various services, including digital auctions, inspection services, transportation, and data analytics. The Finance segment, known as Automotive Finance Corporation (AFC), provides short-term inventory-secured financing (floorplan financing) to independent vehicle dealers, primarily in the United States and Canada.

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Openlane (KAR) is expected to experience future revenue growth over the next 2-3 years driven by several key factors:

• Growth in Marketplace Segment and Dealer-to-Dealer Volume: The company has demonstrated strong growth in its Marketplace segment, particularly in dealer-to-dealer volumes. Openlane's CEO, Peter Kelly, noted a 14% year-over-year increase in dealer-to-dealer volumes, which has outpaced the broader industry and led to meaningful market share gains in North America.
• Digital Adoption and Technology Investments: Openlane is strategically investing in enhancing its digital marketplace capabilities and leveraging advanced technology. This includes integrating AI and "OPENLANE intelligence" for vehicle recommendations, pricing, and condition report transparency, as well as introducing innovative features like "Audio Boost" for detailed vehicle inspections.
• Expansion of Buyer and Seller Networks: A core component of Openlane's growth strategy involves continuously expanding its network of both buyers and sellers. Management has emphasized continued investments in this area to drive increased engagement and participation within its marketplace.
• Inflection of Off-Lease Vehicles: The company anticipates a significant increase in commercial vehicle volumes starting in the second quarter of 2026. This expected "inflection of off-lease vehicles" is projected to be a key driver of growth, stemming from off-lease maturities and lower consumer buyout rates.
• Auction Fee Growth and Pricing Adjustments: Openlane has seen revenue growth from increases in auction fees. This growth is a result of both higher transaction volumes and strategic "moderate pricing adjustments" implemented by the company.

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Share Repurchases

• In September 2025, Openlane announced agreements to repurchase 53% of its Series A Convertible Preferred Stock for approximately $559 million. This transaction closed in October 2025 and was financed by $550 million in secured term loans.
• In Q3 2024, the company repurchased approximately 1.8 million shares, and its share repurchase program authorization was increased to $100 million through the end of 2025.
• As of July 2025, Openlane repurchased 1.46 million shares year-to-date at an average price of $24.35, with $214.4 million remaining authorization under its 2025 program.

Share Issuance

• Openlane issued $2.9 million in common stock under stock plans as of June 30, 2025.
• The Series A Convertible Preferred Stock was originally issued in June 2020. The repurchase of these preferred shares in late 2025 is expected to reduce fully diluted shares by approximately 19 million.

Inbound Investments

• In June 2020, Openlane issued Series A Convertible Preferred Stock, representing strategic investments from funds advised by Apax Partners, L.P. and Periphas Capital, L.P.

Capital Expenditures

• Openlane's Capital Expenditures (CapEx) Guidance for full-year 2025 is $50 million to $55 million.
• Capital expenditures are expected to be in line with the prior year and are funded through business cash flow.
• The primary focus of capital expenditures includes investments in AI-driven products, process automation, and user experience enhancements, such as Absolute Sale and advanced inspection technology, to improve operational efficiency and boost transaction values.