OPENLANE, Inc. reported a total operating revenue of $460.1 million for the three months ended March 31, 2025, marking a 7% increase from $429.9 million in the same period of the previous year. The growth was driven by a rise in auction fees, which increased to $125.2 million from $109.9 million, and a significant jump in purchased vehicle sales, which rose to $85.7 million from $58.2 million. However, service revenue declined to $140.3 million from $150.2 million, primarily due to the sale of the automotive key business in 2024. The company reported a net income of $36.9 million, or $0.18 per diluted share, compared to $18.5 million, or $0.05 per diluted share, in the prior year.
Operating expenses for OPENLANE also increased, totaling $408.4 million, up from $393.1 million in the previous year. The rise in expenses was attributed to higher costs of services, which grew to $241.6 million from $213.9 million, and an increase in selling, general, and administrative expenses. Notably, finance interest expense decreased significantly to $27.6 million from $32.6 million, contributing to an operating profit of $51.7 million, compared to $36.8 million in the prior year.
In terms of operational metrics, the company reported a total of 363,000 vehicles sold in the first quarter of 2025, a slight decrease from 372,000 in the same period of 2024. The number of dealer consignment vehicles sold increased by 15%, while commercial vehicle sales saw a 14% decline. The gross merchandise value of vehicles sold was approximately $6.9 billion, down from $7.0 billion year-over-year. The company’s finance segment managed total receivables of $2.3 billion, with an allowance for credit losses of $20.5 million.
Strategically, OPENLANE has been focusing on enhancing its marketplace capabilities and expanding its digital services. The company operates in North America and Europe, with a significant portion of its revenue generated from Canada. As of March 31, 2025, OPENLANE had cash and cash equivalents of $220.5 million, up from $143 million at the end of 2024, and had no borrowings on its revolving credit facilities. The company anticipates continued growth in the used vehicle market, supported by an expected increase in off-lease vehicles becoming available in the coming years. However, it remains cautious about macroeconomic factors that could impact vehicle demand and pricing.
About OPENLANE, Inc.
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