Financial Data and Key Metrics Changes - OpenLane reported consolidated revenues of $482 million, representing a 9% year-over-year growth [22] - Adjusted EBITDA for the quarter was $87 million, reflecting a 21% increase, with an adjusted EBITDA margin of 18%, showing a margin expansion of 190 basis points [23][24] - Adjusted free cash flow for the quarter was $87 million, achieving a conversion rate of 100% [24] Business Segment Data and Key Metrics Changes - In the marketplace segment, total gross merchandise value (GMV) processed was $7.5 billion, a 10% increase, with dealer GMV growing by 32% while commercial GMV remained flat [25][26] - Auction fees in the marketplace grew by 24%, while service revenues decreased by 3% [26] - Adjusted EBITDA for the marketplace segment was $45 million, representing a 36% growth and a 220 basis points margin expansion [26] - The finance segment reported average outstanding receivables of $2.3 billion, up 4%, with adjusted EBITDA increasing by 9% to $42 million [27] Market Data and Key Metrics Changes - Dealer-to-dealer volumes increased by 21%, marking the third consecutive quarter of double-digit growth [6][11] - Commercial vehicle volumes were down as expected, but recovery is anticipated starting in 2026 [10][16] Company Strategy and Development Direction - OpenLane's growth strategy focuses on enhancing the marketplace, technology, and customer experience to make wholesale easier for customers [7][8] - The company aims to leverage its digital platform to capture market share from traditional physical auctions, with a significant opportunity in the dealer-to-dealer segment [10][19] - OpenLane is committed to integrating its marketplace and finance segments to accelerate growth and enhance customer value [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic path, highlighting the transition to digital solutions in the industry and the expected recovery in commercial vehicle volumes [16][19] - The company raised its full-year guidance for adjusted EBITDA from $290 million - $310 million to $310 million - $320 million, reflecting strong performance and market conditions [30] Other Important Information - OpenLane ended the quarter with a cash balance of $119 million and zero net debt after paying off outstanding senior notes [28] - The company has repurchased approximately 1.3 million shares at a total cost of about $31 million under its share repurchase program [28] Q&A Session Summary Question: Impact of broader macro tariffs on dealer volumes - Management noted strong dealer volume growth of 21% year-over-year, attributing it to strategic execution and technology investments, with a minor benefit from macro factors [36][40] Question: U.S. versus international growth - Management indicated comparable growth rates in both Canada and the U.S., with a stronger market position in Canada [43][44] Question: Selling capacity and future benefits - Management highlighted the scalability of the business and the focus on building the buyer network after successful supply-side investments [46][49] Question: Second half guidance and market expectations - Management acknowledged uncertainty in the market but indicated a conservative approach to guidance, factoring in potential deceleration in growth [54][56] Question: Update on win-back customer onboarding - The project is on track for a launch by the end of the year, which could positively impact commercial volume growth in 2026 [105][106] Question: Cross-pollination projects between AFC and OpenLane - Management discussed synergies between AFC and OpenLane, emphasizing the potential for enhanced customer relationships and streamlined processes [92][94]