Revenue growth has decelerated to a modest 0.5% in 2025Q4, while operating margins remain pressured, falling to 2.4% despite a robust 54.3% gross margin.
| 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 |
|---|
| Sales/Revenue | 1.93B | 1.79B | 1.65B | 1.53B | 1.45B | 1.33B | 2.78B | 3.77B | 3.46B | 3.15B | 2.64B | 2.36B | 2.17B | 1.96B | 1.89B | 1.81B | 1.73B | 1.77B | 1.1B |
| Revenue Growth % | 8.16% | 8.72% | 7.58% | 5.42% | 9.32% | -52.3% | -26.2% | 9.01% | 9.77% | 19.34% | 11.63% | 8.8% | 10.69% | 4.09% | 3.93% | 4.94% | -2.36% | 60.63% | - |
| Cost of Goods Sold | 1.04B | 1.08B | 867.6M | 913.3M | 792.5M | 744.3M | 1.62B | 2.14B | 1.99B | 1.83B | 1.5B | 1.32B | 1.23B | 1.09B | 1.04B | 1B | 997.3M | 1.05B | 627.4M |
| COGS % of Revenue | 53.85% | 60.37% | 52.74% | 59.72% | 54.63% | 56.09% | 58.13% | 56.84% | 57.47% | 58.01% | 56.73% | 55.77% | 56.7% | 55.37% | 54.88% | 55.19% | 57.66% | 59.44% | 56.89% |
| Gross Profit | 892.8M | 708.7M | 777.5M | 615.9M | 658.1M | 582.6M | 1.16B | 1.63B | 1.47B | 1.32B | 1.14B | 1.05B | 941.1M | 876.3M | 851.1M | 813.3M | 732.3M | 718.4M | 475.4M |
| Gross Margin % | 46.15% | 39.63% | 47.26% | 40.28% | 45.37% | 43.91% | 41.87% | 43.16% | 42.53% | 41.99% | 43.27% | 44.22% | 43.3% | 44.63% | 45.12% | 44.81% | 42.34% | 40.56% | 43.11% |
| Gross Profit Growth % | 25.98% | -8.85% | 26.24% | -6.41% | 12.96% | -49.98% | -28.4% | 10.61% | 11.2% | 15.81% | 9.22% | 11.11% | 7.39% | 2.96% | 4.65% | 11.06% | 1.93% | 51.11% | - |
| Operating Expenses | 696.2M | 526.5M | 782.7M | 521.2M | 530.6M | 513.4M | 850.7M | 1B | 904.8M | 823.7M | 714.8M | 668M | 684.4M | 609.3M | 569.2M | 544.5M | 537M | 566.5M | 369M |
| OpEx % of Revenue | 35.99% | 29.44% | 47.58% | 34.08% | 36.58% | 38.69% | 30.58% | 26.6% | 26.17% | 26.15% | 27.08% | 28.25% | 31.49% | 31.03% | 30.18% | 30% | 31.05% | 31.98% | 33.46% |
| Selling, General & Admin | 445.2M | 408.6M | 430.4M | 436.3M | 420.7M | 374.5M | 662M | 732.8M | 640.2M | 583.1M | 502M | 471.4M | 490M | 419.1M | 389.4M | 373.2M | 364.6M | 383.7M | 242.4M |
| SG&A % of Revenue | 23.01% | 22.85% | 26.16% | 28.53% | 29% | 28.22% | 23.8% | 19.44% | 18.51% | 18.51% | 19.02% | 19.94% | 22.55% | 21.35% | 20.64% | 20.56% | 21.08% | 21.66% | 21.98% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 251M | 117.9M | 352.3M | 84.9M | 109.9M | 138.9M | 188.7M | 3.5M | 1.9M | 500K | 4.6M | 3.8M | 2.6M | 4M | 179.8M | 171.3M | 172.4M | 182.8M | 369M |
| Operating Income | 196.6M | 182.2M | -5.2M | 94.7M | 127.5M | 69.2M | 314.1M | 624.2M | 566M | 499M | 427.3M | 377.7M | 256.7M | 267M | 281.9M | 268.8M | 195.3M | -12.5M | 106.4M |
| Operating Margin % | 10.16% | 10.19% | -0.32% | 6.19% | 8.79% | 5.22% | 11.29% | 16.56% | 16.37% | 15.84% | 16.19% | 15.97% | 11.81% | 13.6% | 14.94% | 14.81% | 11.29% | -0.71% | 9.65% |
| Operating Income Growth % | 7.9% | 3603.85% | -105.49% | -25.73% | 84.25% | -77.97% | -49.68% | 10.28% | 13.43% | 16.78% | 13.13% | 47.14% | -3.86% | -5.29% | 4.87% | 37.63% | 1662.4% | -111.75% | - |
| EBITDA | 288.3M | 277.4M | 96.3M | 194.9M | 237.4M | 178.3M | 502.8M | 796.6M | 830.6M | 739.6M | 640.1M | 574.3M | 451.1M | 457.2M | 461.7M | 440.1M | 367.7M | 170.3M | 233M |
| EBITDA Margin % | 14.9% | 15.51% | 5.85% | 12.75% | 16.37% | 13.44% | 18.07% | 21.13% | 24.02% | 23.48% | 24.25% | 24.29% | 20.76% | 23.29% | 24.48% | 24.25% | 21.26% | 9.61% | 21.13% |
| EBITDA Growth % | 3.93% | 188.06% | -50.59% | -17.9% | 33.15% | -64.54% | -36.88% | -4.09% | 12.3% | 15.54% | 11.46% | 27.31% | -1.33% | -0.97% | 4.91% | 19.69% | 115.91% | -26.91% | - |
| D&A (Non-Cash Add-back) | 91.7M | 95.2M | 101.5M | 100.2M | 109.9M | 109.1M | 188.7M | 172.4M | 264.6M | 240.6M | 212.8M | 196.6M | 194.4M | 190.2M | 179.8M | 171.3M | 172.4M | 182.8M | 126.6M |
| EBIT | 0 | 179.7M | 9.3M | 78.8M | 140M | 63.4M | 319.6M | 343.1M | 562.8M | 499M | 427.3M | 377.7M | 252.5M | 271M | 214.5M | 238.2M | 184.4M | -32.4M | 114M |
| Net Interest Income | 0 | -21.8M | -155.8M | -40.2M | -125.7M | -128.2M | -189.5M | -191.2M | -163.2M | -138.8M | -91.4M | -86.2M | -104.7M | -119.4M | -143.1M | -141.4M | -172.6M | -215.2M | -162.3M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 109.9M | 21.8M | 155.8M | 40.2M | 125.7M | 128.2M | 189.5M | 192M | 164M | 138.8M | 91.4M | 86.2M | 104.7M | 119.4M | 143.1M | 141.4M | 172.6M | 215.2M | 162.3M |
| Other Income/Expense | -4.4M | -24.3M | -141.3M | -56.1M | -113.2M | -134M | -184M | -188.2M | -168M | -143.7M | -86.8M | -112.7M | -107.5M | -115.4M | -191.9M | -172M | -161M | -410.2M | -154.7M |
| Pretax Income | 192.2M | 157.9M | -146.5M | 38.6M | 14.3M | -64.8M | 130.1M | 435.7M | 398M | 355.3M | 340.5M | 265M | 149.2M | 151.6M | 90M | 96.8M | 34.3M | -247.6M | -48.3M |
| Pretax Margin % | 9.94% | 8.83% | -8.91% | 2.52% | 0.99% | -4.88% | 4.68% | 11.56% | 11.51% | 11.28% | 12.9% | 11.21% | 6.87% | 7.72% | 4.77% | 5.33% | 1.98% | -13.98% | -4.38% |
| Income Tax | 14.5M | 48M | 8.3M | 10M | 15.1M | -11.2M | 37.7M | 107.7M | 36M | 132.9M | 125.9M | 95.7M | 81.5M | 59.6M | 17.8M | 27.2M | 11.1M | -31.4M | -10M |
| Effective Tax Rate % | 7.54% | 30.4% | -5.67% | 25.91% | 105.59% | 17.28% | 28.98% | 24.72% | 9.05% | 37.41% | 36.98% | 36.11% | 54.62% | 39.31% | 19.78% | 28.1% | 32.36% | 12.68% | 20.7% |
| Net Income | 177.7M | 109.9M | -154.1M | 241.2M | 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 |
| Net Margin % | 9.19% | 6.14% | -9.37% | 15.77% | 4.58% | 0.04% | 6.78% | 8.7% | 10.47% | 7.06% | 8.13% | 7.16% | 3.12% | 4.69% | 3.83% | 3.83% | 1.34% | -12.21% | -3.47% |
| Net Income Growth % | 61.69% | 171.32% | -163.89% | 262.71% | 13200% | -99.73% | -42.53% | -9.39% | 62.77% | 3.63% | 26.76% | 150.07% | -26.41% | 27.42% | 3.74% | 200% | 110.73% | -464.49% | - |
| Net Income (Continuing) | 177.7M | 109.9M | -154.8M | 28.6M | -800K | -53.6M | 92.4M | 117.6M | 174M | 222.4M | 214.6M | 169.3M | 67.7M | 92M | 72.2M | 69.6M | 23.2M | -216.2M | -38.3M |
| Discontinued Operations | 0 | 0 | 700K | 212.6M | 67.3M | 54.1M | 96.1M | 210.4M | 188M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.64 | 0.45 | -1.82 | 0.25 | 0.28 | -0.16 | 0.70 | 2.42 | 2.62 | 1.60 | 1.51 | 1.19 | 0.48 | 0.66 | 0.52 | 0.51 | 0.21 | -2.02 | -0.36 |
| EPS Growth % | 264.44% | 124.73% | -828% | -10.71% | 275% | -122.86% | -71.07% | -7.63% | 63.75% | 5.96% | 26.89% | 147.92% | -27.27% | 26.92% | 1.96% | 142.86% | 110.4% | -461.11% | - |
| EPS (Basic) | 1.67 | 0.46 | -1.82 | 0.25 | 0.28 | -0.16 | 0.70 | 2.44 | 2.66 | 1.62 | 1.53 | 1.21 | 0.49 | 0.67 | 0.53 | 0.52 | 0.21 | -2.02 | -0.36 |
| Diluted Shares Outstanding | 108.3M | 109M | 109.1M | 116.3M | 123M | 129.3M | 132.9M | 135.7M | 138M | 139.1M | 142.3M | 141.8M | 140.8M | 139M | 137.8M | 135.9M | 110.48M | 106.9M | 106.7M |
| Basic Shares Outstanding | 106.7M | 108M | 109.1M | 116.3M | 123M | 129.3M | 131.6M | 134.43M | 136.09M | 137.28M | 140.26M | 139.92M | 138.16M | 137.31M | 136M | 134.9M | 110.48M | 106.9M | 106.7M |
| Dividend Payout Ratio | - | - | - | - | - | 9800% | 87.16% | 57.41% | 48.29% | 70.64% | 70.78% | 82.63% | 116.1% | 28.26% | - | - | - | - | - |
Used vehicle price volatility
As reported in recent financial filings, OPENLANE's revenue growth has displayed significant volatility, fluctuating from a 25.7% surge in 2024Q4 to a modest 0.5% increase by 2025Q4, reflecting the ongoing challenges of stabilizing top-line performance following the divestiture of its physical auction infrastructure.
The inconsistent revenue trajectory suggests that the company is still navigating the transition from a physical-asset-heavy model to a digital-first marketplace. Investors should monitor whether the current growth deceleration indicates a loss of market share to digital-native competitors or simply the expected outcome of shedding lower-margin legacy business lines.
Based on the provided income statement data, gross margins have exhibited substantial instability, ranging from a low of 25.2% in 2024Q4 to a peak of 54.3% in 2025Q4, which highlights the sensitivity of the company's service-based model to fluctuating transaction costs and inventory-related expenses.
The wide variance in gross profitability suggests that the company's cost structure is not yet fully optimized for a digital-only environment. This instability may imply that ancillary service costs or inventory-related write-downs are periodically eroding the benefits of the higher-margin digital marketplace fees.
According to the company's quarterly performance metrics, operating income has failed to scale linearly with gross profit, as evidenced by the 2025Q4 operating margin of 2.4% despite a robust gross margin of 54.3%, indicating that SG&A expenses continue to exert significant pressure on bottom-line profitability.
The inability to consistently translate gross profit into operating income suggests that the company's overhead and technology investments remain high relative to its current transaction volume. This warrants further investigation into whether the current SG&A levels are necessary for platform development or if they represent structural inefficiencies that may hinder long-term margin expansion.
As indicated by the provided financial data, net income has frequently decoupled from operating performance, with 2025Q4 net income reaching $59.5M despite a meager $12.0M in operating income, suggesting that non-operating items or tax anomalies are significantly influencing the reported bottom-line results.
The reliance on non-operating gains to bolster net income raises questions regarding the sustainability of current earnings quality. Investors should be cautious, as these items may mask underlying operational weaknesses and do not necessarily reflect the core earning power of the digital marketplace and finance segments.
While the company has successfully pivoted to a digital-first model, the persistent volatility in operating margins and the reliance on non-operating income suggest that the business model may be more vulnerable to cyclical downturns in the used vehicle market than the current valuation implies.
Short-sellers might focus on the company's inability to maintain consistent operating profitability, which could indicate that the digital platform lacks the expected economies of scale. If the Finance segment's credit performance deteriorates alongside a decline in used vehicle values, the company may face a double-edged sword of rising provisions and declining transaction fee revenue.
Quick answers to the most common questions about buying KAR stock.
For fiscal year 2025, OPENLANE, Inc. (KAR) reported total revenue of $1.93B. This represents a 75.4% increase compared to $1.10B in 2007.
OPENLANE, Inc. (KAR) is profitable, generating $177.7M in net income for the fiscal year ending 2025 with a net profit margin of 9.2%.
OPENLANE, Inc. (KAR) reported an operating income of $196.6M, resulting in an operating profit margin of 10.2%. This margin reflects the operational efficiency of the business before interest and taxes.
OPENLANE, Inc. (KAR) generated $892.8M in gross profit for the year, representing a gross profit margin of 46.2%. This demonstrates the company's core pricing power and production efficiency.