OPENLANE, Inc.

Good morning and welcome to the Open Lane, Inc. First Quarter 2026 Earnings Call. All participants will be in a listen-only mode. Should you need assistance, please signal an operator by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then one on your touchtone phone. To withdraw your question, please press star and then two. Please note that this event is being recorded. I would now like to turn the conference over to Bill Wright. Please go ahead, sir.

Thank you, Operator. Good morning, everyone. Welcome to OpenLane's first quarter 2026 earnings call. With me today are Peter Kelly, CEO of OpenLane, and Brad Herring, EVP and CFO of OpenLane. Our remarks today include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties that may cause our actual results or performance to differ materially from such statements. Factors that may cause such differences include those discussed in our press release issued today and in our SEC filings. Certain non-GAAP financial measures, as defined under SEC rules, will be discussed on this call. reconciliations of GAAP to non-GAAP measures are provided in our earnings materials and available in the investor relations section of our website. Please note that all financial and operational metrics presented during this call are on a year-over-year basis unless otherwise specifically noted. With that, I'll turn the call over to Peter.

Thank you, Bill, and thank you, everyone, for joining the call today. I'm very pleased to report on OpenLane's strong first quarter results and to provide you with an update on our strategy and our outlook. I'll begin with a few opening remarks, and then Brad will walk you through our financial and operational performance and our increased guidance for 2026. But before I turn to our results, I'd like to highlight that this week marks the three-year anniversary of our rebrand to OpenLane. As I stated at our March investor event, the rebrand was never about a new name or logo. It was about forging an entirely new company founded on a single purpose, which is to make wholesale easy so our customers can be more successful. Over the past three years, our investments, strategy, and execution have delivered on that commitment and reinforced several key pillars of differentiation for OpenLane, including the leading commercial off-lease solution that connects thousands of franchise dealers into our marketplace, a dealer business that is outpacing the industry and capturing meaningful market share, A high-performing finance business that is synergistic with our marketplace. An accelerating network effect of new buyers, sellers, listings, and transactions. And a winning culture and team that I consider to be the very best in the industry. The performance and outcomes OpenLane is delivering are the direct result of the strategy we began executing three years ago. And I believe our first quarter results are further evidence to OpenLane's strength and differentiation in the markets. During the first quarter, we continued to build on OpenLane's positive momentum, growing consolidated revenue by 15% and delivering adjusted EBITDA of $97 million, a 17% increase. We also generated $160 million in cash flow from operations. These results were led by strong performance in the marketplace business with both commercial and dealer customers, and solid contributions from our finance business. In the marketplace segment, we grew overall vehicles sold by 19%, increased gross merchandise value by 32% to $9.1 billion, and delivered $52 million in adjusted EBITDA, representing a 39% increase. In our dealer-to-dealer business, we grew vehicles sold by 13%, with similar geographic dynamics to those experienced in Q4 of 2025. In the United States, open lanes dealer-to-dealer transactions continue to accelerate. with growth in the upper 20% range. This represents a significant outperformance of the industry and a meaningful gain in market share. Our go-to-market strategy in the U.S. is working, and OpenLens' unique inventory, technology advantage, and superior customer experience are expanding our dealer network and compounding our growth in transactions. In Canada, we were pleased to see some improvement in the macroeconomic and automotive retail environment. And while Canadian dealer unit sales declined versus a strong prior year comp, we did see sequential improvement over Q4 of 2025. On the commercial vehicle side, the 25% increase in vehicles sold was driven in large part by the onboarding of our latest private label customer. Even excluding that step function increase, however, commercial vehicle sales grew by 6% during the quarter. This reinforces that the inflection of off-lease supply has officially begun, and we expect to see year-on-year growth in off-lease volumes throughout the remainder of 2026 and beyond. Moving to our finance segment, AFC also had a good quarter, growing average receivables managed, holding the loan loss rate to 1.6%, and generating $45 million in adjusted EBITDA. Now, we do believe the industry experienced a strong spring market driven by higher-than-normal tax refunds and constrained supply paired with high consumer demand, which led to high conversion rates and appreciating asset values. That said, there is no question that OpenLane's digital operating model is resonating in the market, and I am highly encouraged by the output of our investments and our focused execution. So now let me turn to our strategy and outlook. As I mentioned at the start of the call, our strategy is delivering results, and we remain committed to advancing our three strategic priorities. First, delivering the best marketplace, expanding our depth and breadth with more buyers and more sellers, and offering the most diverse commercial and dealer inventory available. Second, delivering the best technology, innovative products and services that help our customers make informed decisions and achieve better outcomes. And third, delivering the best customer experience, keeping our marketplace fast, fair, and transparent, making it easy for customers to transact. and making OpenLane the most preferred marketplace. And I'll touch on each of these in a little more detail. First, in terms of offering the best marketplace, we continued to make significant gains and drove another quarter of double-digit increases in new buyers, sellers, and unique vehicles listed, each of which were up over 20% in the United States. Customer anticipation for the off-lease recovery is also driving more franchise dealers from our private label programs into OpenLane's open sale. During the quarter, we nearly doubled the number of commercial vehicles sold in this higher margin channel versus the prior year. And on the independent dealer side, AFC new dealer registrations also increased during the quarter, each of which also presents a new dealer opportunity for OpenLane. At the end of Q1, approximately 54% of all AFC dealers were registered with OpenLane. From a best technology perspective, we extended our technology advantage in the first quarter with our public release of OpenLane Intelligence. OpenLane Intelligence unifies our human and AI enhanced capabilities to deliver actionable insights that improve customer decision-making. We see AI as a true enabler and accelerator of our digital solutions. And during the quarter, we released several new offerings and features that leverage our AI expertise and deep data resources. In Canada, we launched our new MyLot inventory management solution. Initial interest has exceeded our expectations with hundreds of early signups, and we are optimistic about the potential of this subscription-based SaaS offering. Across the US and Canada, we also released our new predictive pricing feature, the only technology in the industry that provides dealers with a forward-looking 30-, 60-, 90-day view into the anticipated value of every dealer vehicle offered on OpenLane. And finally, in terms of providing the best customer experience, we are also leveraging our human and AI capabilities to streamline and enhance the customer experience, improve the consistency, accuracy, and speed of arbitrations, and to help address dealer inquiries as quickly as possible. At the end of Q1, our transactional NPS scores across all geographies sit squarely in the excellent range, with our U.S. seller NPS achieving the highest scores, indicating exceptional customer loyalty and brand satisfaction. So as we look into the remainder of 2026, while we cannot count on an industry environment as strong as Q1, there is still a lot of opportunity for open lane. We are continuing to build momentum, and I'm very optimistic about our ability to execute our strategy with precision. As our 2025 go-to-market investments in dealer-to-dealer continue to ramp up towards full productivity, we remain focused on increasing market share and wallet share. As stated earlier, we expect off-lease supply to scale up throughout the year, and OpenLane will be a primary beneficiary of this cyclical recovery. Our Canadian business is leveraging its strong market position to introduce new revenue-generating products and services. Used vehicle values significantly appreciated in Q1 and remain strong. This is a positive for the marketplace and for AFC, though any sharp decline in used vehicle values could lead to a higher risk environment for floor plans and answers. And while no industry is immune to geopolitical or macroeconomic events, we have not seen a material industry impact from fuel prices, new and used vehicle affordability, chip production, or any other external factors that we monitor. So just to summarize, OpenLane remains well positioned to capture the opportunities ahead, and we're executing a strategy that is delivering results, winning customers and outpacing the industry. Because of that, I believe the key elements of our value proposition for investors remain very compelling. OpenLane is a highly scalable digital marketplace leader focused on making wholesale easy for automotive dealers, manufacturers, and commercial sellers. There is a large addressable market for our services, and OpenLane is uniquely well-positioned with commercial customers and franchise and independent dealers. Our customer surveys and third-party research indicate we are the most preferred pure-play digital marketplace in the industry. Our technology advantage is a competitive differentiator. Our floor plan finance business, AFC, is a high-performing business that is synergistic with the marketplace. We generate significant cash flow and have a strong balance sheet. And we believe our business has the capability to deliver meaningful growth, profitability, and cash generation over the next several years. So with that, I will now turn the call over to Brad.