Free cash flow generation remains highly cyclical, with margins fluctuating from a low of 1.5% in 2023Q4 to a high of 24.1% in 2024Q3.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 |
|---|
| Cash from Operations | 391.9M | 291.4M | 235.4M | -466.6M | 413.2M | 384.4M | 542M | 749.8M | 588.8M | 360.8M | 475M | 431.3M | 434M | 290.2M | 305.8M | 467.6M | 250.8M | 224.9M | 96.8M |
| Operating CF Margin % | 20.26% | 16.29% | 14.31% | -30.51% | 28.48% | 28.97% | 19.48% | 19.89% | 17.03% | 11.45% | 18% | 18.24% | 19.97% | 14.78% | 16.21% | 25.76% | 14.5% | 12.7% | 8.78% |
| Operating CF Growth % | 34.49% | 23.79% | 150.45% | -212.92% | 7.49% | -29.08% | -27.71% | 27.34% | 63.19% | -24.04% | 10.13% | -0.62% | 49.55% | -5.1% | -34.6% | 86.44% | 11.52% | 132.33% | - |
| Net Income | 177.7M | 109.9M | -154.1M | 32.2M | 66.5M | 500K | 188.5M | 328M | 362M | 222.4M | 214.6M | 169.3M | 67.7M | 92M | 72.2M | 69.6M | 23.2M | -216.2M | -38.3M |
| Depreciation & Amortization | 91.7M | 95.2M | 101.5M | 100.2M | 109.9M | 191.3M | 188.7M | 269.9M | 264.6M | 240.6M | 212.8M | 196.6M | 194.4M | 190.2M | 179.8M | 171.3M | 172.4M | 182.8M | 126.6M |
| Stock-Based Compensation | 14.6M | 14.7M | 16.5M | 0 | 13.2M | 11.8M | 19.6M | 23.4M | 24.2M | 18.1M | 11.7M | 28M | 67.2M | 23.2M | 17M | 19.8M | 16.4M | -3.8M | 6.7M |
| Deferred Taxes | -31.9M | 1.7M | -29.8M | -2.3M | 4.4M | -7.2M | -3.3M | 100K | -93.5M | -4.2M | 5M | -24.5M | 22.7M | -3.7M | -3.5M | -2.3M | -8.8M | -55.6M | -21.8M |
| Other Non-Cash Items | 139.8M | 30.1M | 327.5M | -437.5M | 156.3M | 95M | 131.7M | 49.1M | 62.1M | 47.1M | 21.8M | 53.7M | 33.8M | 29.4M | 76.9M | 72.6M | 32.1M | 209M | 16.9M |
| Working Capital Changes | 0 | 39.8M | -26.2M | -159.2M | 62.9M | 90.8M | 16.8M | 79.3M | -30.6M | -163.2M | 9.1M | 8.2M | 48.2M | -40.9M | -36.6M | 136.6M | 15.5M | 108.7M | 6.7M |
| Change in Receivables | 0 | 44.4M | -66M | 0 | -94.1M | 117.9M | -3M | -66.5M | -57.4M | -194.7M | -127M | -52.3M | 11.8M | -80M | 1.5M | -33.6M | 38.5M | 32.4M | 113.6M |
| Change in Inventory | 0 | 0 | 0 | 0 | -192.5M | 27.1M | -19.8M | -145.8M | -748.2M | -506.2M | -220M | -484.3M | -356.9M | -294.5M | -177M | -147.9M | -319.8M | -232.2M | 0 |
| Change in Payables | 150.2M | 0 | 0 | -240.8M | 192.5M | -27.1M | 19.8M | 145.8M | 26.8M | 31.5M | 136.1M | 60.5M | 36.4M | 39.1M | -38.1M | 30.2M | -2.7M | 4.2M | 0 |
| Cash from Investing | -56.1M | -70.9M | -83.5M | 70M | -1.22B | -326.6M | -452.4M | -381.2M | -379.8M | -765.3M | -547.6M | -412.8M | -267.9M | -227.6M | -419.8M | -795.9M | -68.8M | -172.1M | -2.38B |
| Capital Expenditures | -55.4M | -53M | -52M | -60.9M | -108.5M | -101.4M | -161.6M | -198M | -152.2M | -155.1M | -134.7M | -101M | -96.6M | -102M | -85.8M | -78.9M | -65.6M | -129.6M | -62.8M |
| CapEx % of Revenue | 2.86% | 2.96% | 3.16% | 3.98% | 7.48% | 7.64% | 5.81% | 5.25% | 4.4% | 4.92% | 5.1% | 4.27% | 4.44% | 5.2% | 4.55% | 4.35% | 3.79% | 7.32% | 5.69% |
| Acquisitions | 0 | 79.8M | -103M | 39.4M | -519.6M | -396.7M | -120.7M | -45.2M | -78.3M | -432.1M | -118.1M | -31.9M | -45.8M | -1.1M | -214.6M | -50.7M | -7.1M | -155.3M | -2.31B |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | -95.8M | 72.8M | 0 | -606.5M | 171.5M | -170.1M | -138M | -149.3M | -178.1M | -294.8M | -279.9M | -125.5M | -124.5M | 400K | 700K | 6.6M | 112.8M | -13M |
| Cash from Financing | 0 | -173.9M | -279.9M | -1.61B | 210.4M | 194.8M | 153.8M | -320.1M | -107.6M | 436M | 94.5M | -48.5M | -76.6M | -53.5M | 93M | 83M | 22.8M | -94.7M | 2.49B |
| Debt Issued (Net) | 0 | -132.6M | -51.9M | -789.1M | 393.3M | -30.9M | -798M | -32.4M | 186.5M | 588.8M | 98M | -37.3M | -68.8M | -127.3M | 0 | -443.7M | -286.2M | -92.3M | 1.78B |
| Equity Issued (Net) | 0 | -1000K | -1000K | -1000K | -1000K | 1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 0 | 0 | 1000K | 1000K | 1000K | 1000K | -100K | 1000K |
| Dividends Paid | -38.6M | -44.4M | -44.4M | -22.2M | 0 | -49M | -164.3M | -188.3M | -174.8M | -157.1M | -151.9M | -139.9M | -78.6M | -26M | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -45.6M | -30M | -22.2M | -182.2M | -180.9M | -10.2M | -119.7M | -150M | -150M | -80.4M | -227.6M | 0 | 0 | 0 | 0 | 0 | 0 | -100K | 0 |
| Other Financing | 38.6M | 33.1M | -164.1M | -618.2M | 200K | -280.2M | 1.25B | 50.6M | 36.6M | 95.2M | 376M | 128.7M | 70.8M | 96.5M | 87M | 521.8M | -1.3M | -2.3M | 0 |
| Net Change in Cash | 1.7M | 24.8M | -118.8M | 74.3M | -596.5M | 251.4M | 256.2M | 28.1M | 115.4M | 46.8M | 2.1M | -38.7M | 82.9M | 11.3M | -21.7M | -244.8M | 205.5M | -45.7M | 204.1M |
| Free Cash Flow | 336.5M | 238.4M | 183.4M | -527.5M | 304.7M | 283M | 380.4M | 551.8M | 436.6M | 205.7M | 340.3M | 330.3M | 337.4M | 188.2M | 220M | 388.7M | 185.2M | 95.3M | 34M |
| FCF Margin % | 17.39% | 13.33% | 11.15% | -34.5% | 21.01% | 21.33% | 13.67% | 14.64% | 12.63% | 6.53% | 12.89% | 13.97% | 15.52% | 9.59% | 11.66% | 21.42% | 10.71% | 5.38% | 3.08% |
| FCF Growth % | 41.15% | 29.99% | 134.77% | -273.12% | 7.67% | -25.6% | -31.06% | 26.39% | 112.25% | -39.55% | 3.03% | -2.1% | 79.28% | -14.45% | -43.4% | 109.88% | 94.33% | 180.29% | - |
| FCF per Share | 3.11 | 2.19 | 1.68 | -4.54 | 2.48 | 2.19 | 2.86 | 4.07 | 3.16 | 1.48 | 2.39 | 2.33 | 2.40 | 1.35 | 1.60 | 2.86 | 1.68 | 0.89 | 0.32 |
| FCF Conversion (FCF/Net Income) | 2.21x | 2.65x | -1.53x | -1.93x | 6.21x | 768.80x | 2.88x | 2.29x | 1.63x | 1.62x | 2.21x | 2.55x | 6.41x | 3.15x | 4.24x | 6.72x | 10.81x | -1.04x | -2.53x |
| Interest Paid | 0 | 140.7M | 145.2M | 106.4M | 112.7M | 116.6M | 170M | 180.8M | 147.1M | 124.5M | 79.7M | 75.9M | 89.8M | 109M | 136.8M | 129.4M | 159.3M | 202M | 136.7M |
| Taxes Paid | 0 | 36.6M | 37.3M | 403.7M | 26M | 16.6M | 79.2M | 121.9M | 126M | 121.6M | 129.9M | 102.2M | 46.8M | 65.3M | 36.5M | 36.3M | 18.8M | 21.4M | 18.1M |
Used vehicle price volatility
As reported in quarterly filings, OPENLANE consistently generates operating cash flow significantly in excess of net income, with the OCF/NI ratio reaching a peak of 5.42 in 2024Q1, suggesting that reported earnings may be conservative relative to the actual cash-generating capacity of the underlying digital marketplace.
The persistent gap between net income and operating cash flow indicates that non-cash charges and working capital adjustments play a dominant role in the company's reported profitability. Investors should monitor whether this conversion strength is sustainable or if it reflects temporary timing differences in the settlement of marketplace transactions.
Based on the provided financial data, free cash flow margins have fluctuated wildly from a low of 1.5% in 2023Q4 to a high of 24.1% in 2024Q3, illustrating the sensitivity of the company's cash generation to the inherent volatility of the used vehicle remarketing cycle.
The inconsistency in FCF margins suggests that the company's transition to a digital-first model has not yet fully insulated its cash flow from market-wide fluctuations in vehicle demand. Analysts should investigate whether the recent improvement in FCF margin to 22.4% in 2025Q4 represents a structural shift or merely a cyclical recovery in transaction volumes.
According to recent financial statements, the company maintains a disciplined approach to capital expenditure, with CapEx/Revenue ratios consistently hovering between 2.6% and 3.1%, suggesting that the digital-first strategy has successfully reduced the heavy asset maintenance requirements typical of the legacy physical auction business model.
This low capital intensity appears to support the company's pivot toward a more scalable, software-driven platform. However, investors should remain cautious, as the reliance on technology infrastructure may necessitate future spikes in growth-related CapEx to maintain competitive parity with digital-native rivals.
As indicated by the quarterly cash flow statements, working capital changes have been a primary driver of cash flow variance, with a significant $47.2M inflow in 2025Q1 contrasting sharply with a $36.9M outflow in 2023Q4, highlighting the impact of inventory and receivable timing on liquidity.
The volatility in working capital suggests that the company's cash position is highly sensitive to the speed of dealer collections and the timing of vehicle inventory turnover. This pattern warrants further investigation into whether these swings are indicative of operational inefficiencies or simply the natural rhythm of the floorplan financing business.
Quick answers to the most common questions about buying KAR stock.
OPENLANE, Inc. (KAR) generated $391.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
OPENLANE, Inc. (KAR) generated $336.5M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
OPENLANE, Inc. (KAR) spent $55.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, OPENLANE, Inc. (KAR) returned $38.6M to shareholders via cash dividends and spent $45.6M on share repurchases. This shows the company's commitment to returning capital to its equity investors.