OPENLANE (OPLN) Bank of America Global Automotive Summit summary

Market environment and growth outlook

• Anticipates strong growth in 2026 and 2027, driven by increasing lease maturities and a rebound from the 2022 trough in lease originations.

• Commercial off-lease volume is expected to grow in Q1, supported by an inflection seen in December and the addition of a new OEM brand customer.

• Declining consumer payoffs are increasing the supply of vehicles available for remarketing, further supporting volume growth.

• EVs now represent about 15% of off-lease maturities, with most being returned due to negative equity, leading to higher ARPU for these transactions.

• Dealer-to-dealer (D2D) growth accelerated to over 20% in Q4, attributed to strong platform performance, rapid sales cycles, and increased adoption by major dealer groups.

Platform innovation and technology investments

• Significant investments in technology, including the Absolute Sale feature and enhanced price guidance tools, have improved conversion rates and seller outcomes.

• AI is integrated into inspections, pricing guidance, and operational processes, enhancing accuracy and efficiency.

• The Horizon framework guides product innovation, with Horizon One focused on incremental features and Horizon Two on adjacent solutions like inventory management.

• The One App initiative has driven crossover enrollment and contributed to 30%+ growth in franchise dealer participation.

• ERP consolidation is underway to improve data consistency and operational efficiency, with benefits expected to materialize over the next two years.

Financial performance and capital allocation

• EBITDA growth in 2026 is expected to be concentrated in the marketplace segment, while finance (AFC) remains relatively flat due to normalization of loan losses and rate pressures.

• New quarterly disclosures will provide separate GMV and yield data for dealer and commercial segments to improve transparency.

• Capital allocation priorities for 2026 include funding organic growth, ongoing share buybacks, and eventual debt paydown starting late 2026 or early 2027.

• Major dealer group wallet share gains have outpaced overall growth, supported by targeted go-to-market investments and national agreements.

• There remains significant runway for digital penetration, with 75% of transactions still physical, supporting continued investment in growth initiatives.