Total Revenue

+10.5% (Q1 2025: $460.1M vs. Q1 2024: $416.3M)

Increased overall revenue is driven by strong performance across segments—particularly the Marketplace and Finance segments—and by geographic expansion. The growth builds on prior period improvements and reflects increased volumes and pricing adjustments. " " "

Marketplace Segment

+10% overall (Q1 2025: $351.2M vs. Q1 2024: $318.3M); Auction Fees up 14% (to $125.2M) and Purchased Vehicle Sales up 47% (to $85.7M)

Marketplace growth is due to a higher number of vehicles sold, resulting in increased Auction Fees and a surge in Purchased Vehicle Sales. The 14% and 47% increases, respectively, reflect improved pricing mixes and higher sales volumes in Europe and the U.S., building on gains from the previous period. " " " " " "

Finance Segment

+11.3% (Q1 2025: $108.9M vs. Q1 2024: $98.0M)

Finance revenue improvement is attributed to increased loan transaction units and higher loan values, along with an enhanced fee revenue yield compared to the prior period. This increment underscores operational improvements over Q1 2024. "

United States Revenue

+4.5% (from $258.5M to $270.3M)

Domestic revenue growth is modest, reflecting sustained performance in the U.S. market where consistent operational momentum is maintained relative to prior periods. "

Foreign Revenue

+20% (from $157.8M to $189.8M)

Foreign market revenue saw robust gains due to significant volume and favorable pricing improvements. This marked recovery and strong performance surpass prior period results, indicating an expanding international footprint. "

Net Income from Continuing Operations

+100% (doubled from $18.5M to $36.9M)

Net income doubled primarily driven by a dramatic reduction in interest expense (down from $39.7M to $4.0M, 90% decline) and operational efficiency gains. These improvements more than offset lower operating profit, reflecting a substantial positive shift from Q1 2024. " " "

Operating Profit

-25% (declined from $69.4M to $51.7M)

Operating profit declined despite higher revenues, suggesting that increased operational costs and margin pressures weighed against the revenue gains. This noteworthy drop compared to Q1 2024 indicates potential cost challenges that warrant further attention. "

Interest Expense

-90% (declined from $39.7M to $4.0M)

Interest expense fell sharply because of a significant reduction in borrowings on lines of credit. This cost management improvement represents a marked departure from the prior period's financing structure. " "

Cash and Cash Equivalents

+Over 100% (increased from $105.2M to $220.5M)

Liquidity improved dramatically due to strong operating cash flows and enhanced working capital, building on a much lower cash base in the prior period. This surge in cash reflects efficient cash generation and prudent capital management practices compared to Q1 2024. " "

Adjusted EBITDA

FY 2025

$290 million to $310 million "

No guidance provided in Q1 2025

no current guidance

Operating Adjusted EPS

FY 2025

$0.90 to $1.00 "

No guidance provided in Q1 2025

no current guidance

Capital Expenditures (CapEx)

FY 2025

$50 million to $55 million " (consistent with 2024 levels)

No guidance provided in Q1 2025

no current guidance

Dealer Volumes & Market Share Growth

Q2 2024 saw dealer volumes decline (impacted by the ransomware and mix issues " " ), Q3 2024 noted modest 3% growth and early signs of momentum ( " " " ), while Q4 2024 reported a strong 15% increase with clear market share gains ( " " " " ).

Q1 2025 continued with a 15% year‐over‐year increase – the second consecutive quarter of double‐digit growth supported by increased buyer and seller participation ( " " " ).

Consistent improvement: After mixed performance in earlier periods, Q1 2025 shows a recovery and sustained strong growth.

Pricing Strategy & Revenue Expansion

Q3 2024 highlighted a differentiated value proposition with modest price increases in Canada and U.S. adjustments ( " ); Q2 2024 described ongoing pricing reviews amid competitive pressures and tax factors ( " ); Q4 2024 had no specific discussion.

Q1 2025 focused on modest Canadian pricing adjustments, with auction fee revenue growing 14% YOY, while reinforcing its high-quality provider position ( " " ).

Ongoing strategic emphasis: The company continues to balance pricing adjustments and revenue expansion with a consistent yet cautious approach.

Commercial/Off-Lease Volume Dynamics

Q2 2024 reported strong commercial volume growth (up 21%) but noted challenges from lower off-lease maturities ( " " " ); Q3 2024 discussed headwinds and a cyclical nature with expectations of improvement starting in 2026 ( " " " ); Q4 2024 projected 2025 as the cycle’s bottom with recovery beginning in 2026 ( " " " ).

Q1 2025 reported a 14% decline in commercial volumes, with management anticipating a recovery beginning in 2026 ( " " ).

Cyclical challenges persist: Near-term declines remain, but long-term recovery and strong fundamentals are anticipated.

Tariff & Trade Uncertainty

In Q4 2024, Peter Kelly addressed widespread speculation and uncertainty over tariffs, particularly affecting Canadian wholesale volumes ( " ). Q3 and Q2 2024 did not mention this topic.

Q1 2025 provided detailed commentary on tariff impacts – maintaining guidance despite potential changes and implementing a tariff filter for Canadian exports ( " " " ).

Increased focus: Tariff and trade uncertainty is receiving sharper attention in Q1 2025, reflecting evolving external risks and proactive mitigation strategies.

Operational Costs & Margin Compression

Q2 2024 discussed a notable margin charge and adjustments from increased go-to-market investments ( " " ); Q3 2024 reported rising cost of services paired with declining SG&A ( " ); Q4 2024 showed a 19% increase in cost of services but highlighted disciplined cost management ( " ).

Q1 2025 noted a 13% increase in the cost of services with flat SG&A, while revenue growth outpaced these costs – underscoring effective cost discipline ( " " ).

Consistent management: Despite rising service costs, ongoing cost-saving initiatives and disciplined expense management are steadily counterbalancing margin pressures.

Finance Segment (AFC) Performance & Credit Risk

Q2 2024 and Q3 2024 showed mixed performance with slight declines in adjusted EBITDA and modest revenue drops, yet improvements in credit risk (provisions around 2.1% and downward trends) ( " " " " ); Q4 2024 reported improved margins and lower credit loss rates ( " ).

Q1 2025 achieved stable performance with a net finance margin of $81 million (yield of 13.9%), improved credit losses at 1.5% (the lowest since Q4 2022), and a 15% YOY increase in AFC adjusted EBITDA ( " " ).

Improving stability: The Finance segment is gradually recovering, with enhanced risk management and margin improvements evidenced in Q1 2025.

Technological Innovations & Digital Platform Enhancements

Q2 2024 emphasized technology strength via dealer testimonials and a 'Dealer-fest' event to showcase recent innovations ( " ); Q3 and Q4 2024 provided little to no new detail.

Q1 2025 showcased new product launches (the OneApp in the U.S.), enhancements to its Canadian Pro subscription programs, and the deployment of tariff filter technology, all boosting customer experience and transactional NPS ( " ).

Accelerated innovation: Building on earlier initiatives, Q1 2025 marks a ramp-up in digital enhancements that further streamline and enrich the customer experience.

Acquisition Integration (Manheim Canada) & Operational Efficiency

Q2 2024 provided detailed updates on the successful integration of Manheim Canada, including operational consolidation in five metro areas and improved customer retention ( " ).

Q1 2025 did not mention Acquisition Integration (Manheim Canada).

No longer mentioned: The topic’s absence in Q1 2025 suggests the integration has been completed and is now de-emphasized in current discussions.

Non-GAAP Adjustments & Business Divestitures (Automotive Keys)

Q2 2024 mentioned non-GAAP measures without specific divestiture details ( " ); Q3 2024 noted non-GAAP reconciliations with minimal discussion of divestitures; Q4 2024 detailed the divestiture of the Automotive Keys business (representing 2%-3% of revenue/EBITDA) and its impact on financial reporting ( " " " ).

Q1 2025 provided a detailed analysis of non-GAAP adjustments, noting that the Automotive Keys divestiture impacted service revenue and adjusted EBITDA, with underlying performance rising by 12% when this segment is excluded ( " " " ).

Consistent accounting emphasis: The ongoing focus on non-GAAP adjustments reflects continued transparency in financial reporting, with refined messaging around the divestiture’s impact in Q1 2025.

Leadership Changes & Management Uncertainty

No discussion of leadership or management changes was noted in Q2, Q3, or Q4 2024 ( " " ).

Q1 2025 similarly did not mention any leadership changes or management uncertainty.

Stable environment: The absence of any commentary on this topic across periods indicates a consistent and stable management environment.

Increased Competition & Market Dynamics

Q2 2024 discussed market share stability, competitive pricing considerations, and supply dynamics amid below-normal volume levels ( " " " " ); Q4 2024 featured an explicit discussion by Peter Kelly on customer clarity, differentiation, and long-term market opportunity ( " ); Q3 2024 had minimal explicit commentary.

Q1 2025 emphasized market positioning through strong digital growth and customer participation without specifically focusing on increased competition ( " " " " ).

Evolving emphasis: While earlier periods included explicit commentary on competition, Q1 2025 maintains a focus on market leadership and organic growth, suggesting confidence and a stable competitive stance.