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1. eBay for wholesale used cars.

2. A NASDAQ for used vehicles.

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• Digital Used Vehicle Marketplaces: Online platforms that connect sellers and buyers for used vehicles through various auction and remarketing formats across multiple regions.
• Vehicle Logistics: Services encompassing inbound and outbound transportation of vehicles for sellers and buyers.
• Vehicle Reconditioning and Inspection: Services including reconditioning, inspection, and certification to prepare used vehicles for sale on their platforms.
• Vehicle Transaction Support Services: Ancillary administrative, titling, and collateral recovery services that facilitate vehicle sales and management.
• Floorplan Financing: Short-term, inventory-secured loans provided to independent used vehicle dealers to finance their vehicle inventory.

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Openlane (OPLN) primarily sells its services to other companies. Its major customers fall into the following categories:

• Vehicle manufacturers
• Vehicle rental companies
• Financial institutions
• Commercial fleets and fleet management companies
• Franchised and independent used vehicle dealers

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Peter Kelly, CEO

Peter Kelly was appointed CEO of OPENLANE in April 2021. He previously served as President of the company 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. Before these roles, he was President and CEO of the OPENLANE subsidiary from February 2011 to June 2013, and President and CFO of OPENLANE from February 2010 to February 2011. Kelly co-founded OPENLANE in 1999 and held various executive positions there until 2010. The acquisition of the OPENLANE platform by what was then KAR Auction Services (now OPENLANE, Inc.) in 2011 was a pivotal moment, transforming the company into a technology-driven auction enterprise.

Brad Herring, EVP & Chief Financial Officer

Brad Herring was named EVP and Chief Financial Officer of OPENLANE, effective May 27, 2025. In this role, he oversees all financial, reporting, and investor relations functions, including the company's capital investment strategy. Herring brings over 30 years of experience in financial operations, investor relations, financial planning and analysis, public company reporting, and business development. He most recently served as CFO for digitally-focused companies Enfusion and Shift4 Payments. His prior experience also includes CFO positions at Elavon and Fiserv's Digital Banking Group, as well as financial leadership roles at Equifax, Delta Air Lines, and ING North America.

James Coyle, EVP & President, Marketplace

James Coyle leads OPENLANE's marketplaces across the U.S., Canada, and Europe, focusing on growth and business success. He is responsible for expanding the company's digital presence and delivering a diverse suite of products and services. Coyle joined OPENLANE in 2021 as Executive Vice President and Chief Digital Officer and assumed his current role in August 2023. Before joining OPENLANE, he was the CEO of RealSelf, a digital marketplace, and the Chief Customer Officer at Varsity Tutors, where he significantly grew the business and contributed to its successful IPO. Earlier in his career, he held positions at Amazon and Microsoft.

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.

Will Mitchell, President, AFC

Will Mitchell leads AFC (Automotive Finance Corporation), which provides floorplan and inventory financing solutions to independent used vehicle dealers across North America, supporting their business growth.

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1. Sensitivity to Used-Vehicle Market Cycles and Macroeconomic Conditions

Openlane's business is highly susceptible to fluctuations in the used-vehicle market, including changes in vehicle supply (especially off-lease flows) and pricing cycles. These dynamics directly impact the company's fee per unit in its marketplace segment and significantly influence the performance of its Automotive Finance Corporation (AFC) loan portfolio. Macroeconomic headwinds such as inflation, rising interest rates, and a squeeze on consumer spending can dampen demand for used vehicles, affecting both the volume of transactions in its marketplaces and the affordability of financing for dealers and end-buyers. A substantial decline in used vehicle sales, potentially caused by decreased consumer auto loan originations or other economic factors, could materially and negatively affect AFC's financial results.

2. Intense Competition and Evolving Industry Landscape

The company operates in a highly competitive environment, facing significant rivals such as Manheim, other digital platforms, and channels owned by original equipment manufacturers (OEMs) or dealerships. This intense competition could lead to pricing pressures, reduced profit margins, or a loss of market share. Furthermore, Openlane must continuously adapt to evolving industry trends, including any potential shifts back towards physical auctions or the growing practice of simultaneously listing and selling vehicles on multiple online platforms, which could impact its digital-first strategy.

3. Credit Risk in the Finance Segment and Financial Leverage

Openlane's Finance segment, primarily through AFC, provides floorplan financing to independent used vehicle dealers. This exposes the company to inherent credit risk, as the performance of this loan portfolio is directly tied to the overall health of the used-vehicle market and the financial stability of these independent dealers. While the company actively manages these risks, a downturn could lead to increased loan losses. Additionally, Openlane carries a notable level of financial leverage, with its debt-to-EBITDA ratio being a point of analyst scrutiny, which could limit its financial flexibility and increase dilution risk, particularly given its reliance on large securitization lines for funding.

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The increasing trend among vehicle manufacturers (OEMs), particularly with the rise of electric vehicles, to adopt direct-to-consumer (DTC) sales models for new vehicles. This shift implies that OEMs may also manage the remarketing of their own used vehicles (e.g., trade-ins, off-lease vehicles) directly to consumers or through proprietary channels, thereby reducing the volume of inventory available to third-party wholesale marketplaces like Openlane.

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Marketplace Segment (Digital Marketplace for Used Vehicles)

• North America: The North American used vehicles market recorded revenues of $1.29 trillion in 2024. While a specific market size for digital wholesale marketplaces in North America is not readily available, the broader online car buying market in North America is significant, with the U.S. dominating this segment. Digital retailing and online-to-door used car platforms are key market drivers in North America.
• Europe: The Europe used cars market was valued at USD 725.3 billion in 2024. Within this, online transactions are growing, with some estimates indicating that online sales are scaling fastest at a 16.35% compound annual growth rate (CAGR) through 2031, despite offline routes still accounting for a significant share of the European used-car market in 2025.

Finance Segment (Floorplan Financing)

• North America: The floorplan finance market in North America accounted for approximately USD 26.4 billion in 2024.
• Europe: The floorplan finance market in Europe was valued at USD 15.3 billion in 2024.

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Openlane (OPLN) is positioned for future revenue growth over the next 2-3 years, driven by several key factors:

1. Continued U.S. Dealer Market Expansion and Dealer-to-Dealer Volume Growth: Openlane anticipates sustained market share gains within the U.S. dealer segment. Management points to previous investments in sales staff and marketing efforts as maturing and contributing to increased wallet share and account growth among both franchise and independent dealers. The company has reported strong year-on-year growth in active U.S. dealer buyers and sellers, with U.S. dealer-to-dealer volumes accelerating.
2. Recovery and Growth in Commercial Vehicle Volumes, Driven by Off-Lease Supply: Openlane expects a positive shift and resumption of growth in commercial vehicle volumes. This anticipated recovery is supported by an increasing supply of off-lease vehicles entering the market and the establishment of new OEM partnerships. The company is well-positioned to capitalize on this growing volume of lease originations.
3. Strategic Investments in Technology, Innovation, and AI for Digital Marketplace Enhancement: Openlane is making significant strategic investments in innovation and technology, including the leveraging of artificial intelligence (AI). These investments are aimed at improving operational efficiency, enhancing customer-facing tools, and expanding its digital capabilities. These technological advancements are expected to further differentiate Openlane's offerings and strengthen its ability to deliver continued growth and improved financial performance.
4. Increased Digital Adoption and Migration to Online Marketplaces: The broader industry trend of migration towards digital channels for wholesale used vehicles is a significant tailwind for Openlane. The company's focus on its asset-light, digital marketplace model allows it to capitalize on this shift, driving increased participation and digital channel migration among its commercial customers. This continued digital adoption is expected to be a primary growth engine.

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Share Repurchases

• In 2022, KAR (now Openlane) repurchased and retired 12.6 million shares of common stock, aggregating approximately $182 million.
• In May 2022, the board of directors authorized an increase of $200 million to the company's share repurchase program, extending it through December 31, 2023, with approximately $309 million remaining available for repurchases.
• In October 2025, Openlane completed the repurchase of 53% of its Series A Convertible Preferred Stock, originally issued in June 2020, for approximately $559 million.
• In May 2025, Openlane's Board of Directors authorized a new $250 million share repurchase program, replacing a previous authorization, which extends through the end of 2026.

Share Issuance

• In October 2021, KAR (now Openlane) issued 1,953,124 shares of common stock for $30 million in connection with the CARWAVE acquisition.

Inbound Investments

• Strategic investments were made in the company since 2020, including the issuance of Series A Convertible Preferred Stock in June 2020, by funds advised by Apax Partners and Periphas Capital.

Outbound Investments

• In May 2022, KAR (now Openlane) sold its ADESA U.S. physical auction business to Carvana for $2.2 billion in cash, a move to pivot to an asset-light, digital-first model.
• In December 2023, Openlane announced plans to acquire Manheim Canada from Cox Automotive for $95 million.
• In 2021 and 2022, the company realized gains of $17.0 million and $32 million, respectively, from the sale of strategic investments in early-stage automotive companies.

Capital Expenditures

• Capital expenditures aggregated to $61 million in 2022.
• Openlane expected capital expenditures of approximately $65 million in 2023, with a continued focus on its digital strategy.
• Capital expenditures in the last 12 months were -$55.40 million.