Digital vehicle marketplace OPENLANE (NYSE: OPLN) announced better-than-expected revenue in Q4 CY2025, with sales up 8.6% year on year to $494.3 million. Its non-GAAP profit of $0.25 per share was 8.3% below analysts’ consensus estimates.
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OPENLANE (OPLN) Q4 CY2025 Highlights:
- Revenue: $494.3 million vs analyst estimates of $473.4 million (8.6% year-on-year growth, 4.4% beat)
- Adjusted EPS: $0.25 vs analyst expectations of $0.27 (8.3% miss)
- Adjusted EBITDA: $76 million vs analyst estimates of $74.76 million (15.4% margin, 1.7% beat)
- Adjusted EPS guidance for the upcoming financial year 2026 is $1.31 at the midpoint, missing analyst estimates by 8%
- EBITDA guidance for the upcoming financial year 2026 is $360 million at the midpoint, above analyst estimates of $352.5 million
- Operating Margin: 8.6%, down from 17.4% in the same quarter last year
- Free Cash Flow Margin: 22.4%, up from 4% in the same quarter last year
- Market Capitalization: $3.08 billion
"OPENLANE's strong fourth quarter and full-year 2025 results are compelling proof points to the strength of our strategy and our ability to execute with precision," said Peter Kelly, CEO of OPENLANE.
Company Overview
Facilitating the sale of approximately 1.3 million used vehicles in 2023, OPENLANE (NYSE: OPLN) operates digital marketplaces that connect sellers and buyers of used vehicles across North America and Europe, facilitating wholesale transactions.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years.
With $1.93 billion in revenue over the past 12 months, OPENLANE is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale.
As you can see below, OPENLANE’s demand was weak over the last five years. Its sales fell by 2.4% annually, a poor baseline for our analysis.
We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. OPENLANE’s annualized revenue growth of 6.8% over the last two years is above its five-year trend, suggesting some bright spots. 
This quarter, OPENLANE reported year-on-year revenue growth of 8.6%, and its $494.3 million of revenue exceeded Wall Street’s estimates by 4.4%.
Looking ahead, sell-side analysts expect revenue to grow 4.5% over the next 12 months, a slight deceleration versus the last two years. This projection doesn't excite us and implies its products and services will see some demand headwinds.
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Operating Margin
OPENLANE was profitable over the last five years but held back by its large cost base. Its average operating margin of 7.6% was weak for a business services business.
On the plus side, OPENLANE’s operating margin rose by 1.4 percentage points over the last five years.
This quarter, OPENLANE generated an operating margin profit margin of 8.6%, down 8.8 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.
OPENLANE’s EPS grew at an astounding 19% compounded annual growth rate over the last five years, higher than its 2.4% annualized revenue declines. This tells us management adapted its cost structure in response to a challenging demand environment.
Diving into the nuances of OPENLANE’s earnings can give us a better understanding of its performance. As we mentioned earlier, OPENLANE’s operating margin declined this quarter but expanded by 1.4 percentage points over the last five years. Its share count also shrank by 2.2%, and these factors together are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. 
Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.
For OPENLANE, its two-year annual EPS growth of 32.2% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base.
In Q4, OPENLANE reported adjusted EPS of $0.25, up from $0.21 in the same quarter last year. Despite growing year on year, this print missed analysts’ estimates, but we care more about long-term adjusted EPS growth than short-term movements. Over the next 12 months, Wall Street expects OPENLANE’s full-year EPS of $1.24 to grow 11.7%.
Key Takeaways from OPENLANE’s Q4 Results
We enjoyed seeing OPENLANE beat analysts’ revenue expectations this quarter. On the other hand, its full-year EPS guidance missed and its EPS fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock remained flat at $29.02 immediately after reporting.
OPENLANE’s latest earnings report disappointed. One quarter doesn’t define a company’s quality, so let’s explore whether the stock is a buy at the current price. We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
