Adjusted EBITDA

FY 2025

no prior guidance [N/A]

$310 million to $320 million "

no prior guidance

Operating Adjusted EPS

FY 2025

no prior guidance [N/A]

$1.12 to $1.17 per share "

no prior guidance

Capital Expenditures (CapEx)

FY 2025

no prior guidance [N/A]

$50 million to $55 million "

no prior guidance

Provision for Credit Losses

FY 2025

no prior guidance [N/A]

1.5% to 2% (expected on the lower side) "

no prior guidance

Adjusted Free Cash Flow Conversion Rate

FY 2025

no prior guidance [N/A]

75% or higher "

no prior guidance

Dealer volumes and market share growth

Q1 2025 discussed a 15% year-over-year increase and recognition of ongoing double-digit growth. " " " In Q4 2024, dealer volumes grew 15% with strong new dealer sign‐ups " " " and Q3 2024 highlighted modest growth (3%) but rising participation and market share gains. " " "

In Q2 2025, dealer-to-dealer volumes grew by 21% year-over-year with market share gains across geographies and a strong focus on digital conversion. " " "

Acceleration and increasing momentum – The company’s growth in dealer volumes and market share has strengthened from modest to robust rates, indicating positive sentiment and effective strategic execution.

Pricing strategies and revenue expansion

Q1 2025 emphasized strategic pricing actions with modest increases (e.g., auction fees and revenue growth at 7% with a 14% increase in auction fee revenue). " " " Q4 2024 noted auction fee revenue growth of 24% and broad revenue gains driven by pricing and volume increases. " " Q3 2024 highlighted competitive, value‐oriented pricing, with new price increases in key markets to boost revenue. " "

In Q2 2025, pricing remains focused on delivering high value at a reasonable cost with a small pricing tweak, alongside solid revenue expansion of 9% year-over-year and strong contributions from auction fees and dealer GMV growth. " " "

Consistent and refined approach – While the pricing strategy remains consistent in delivering quality and value, the current period shows refinement with slight pricing tweaks and continued robust revenue expansion, reinforcing positive performance.

Commercial segment volatility and declining off-lease volumes

Q1 2025 noted a 14% decline in commercial off-lease volumes with expectations for a turnaround in 2026. " " Q4 2024 pointed out off-lease supply cycle challenges with the bottom expected in 2025 but improvements coming later. " " " Q3 2024 described ongoing challenges from legacy lease originations with optimism for a volume ramp-up in 2026. " " "

In Q2 2025, commercial volumes were down approximately 9% year-over-year, and off-lease declines remain in line with expectations; however, the company is optimistic about recovery starting in Q2 2026, supported by new lease originations and program launches. " " "

Mixed sentiment with long-term optimism – Current commentary continues to highlight short-term declines, but the long-term outlook remains positive as structural factors are expected to drive recovery beginning in 2026.

Tariff and macroeconomic uncertainty

Q1 2025 had nuanced discussions around tariffs—viewing potential impacts as mixed with proactive measures like the tariff filter in Canada " " " while Q4 2024 focused on managing speculation with confidence in adapting to macroeconomic headwinds. " " " Q3 2024 did not address these topics.

In Q2 2025, there is more clarity on the tariff situation with moderated concerns and acknowledgment that tariffs might still modestly impact new vehicle retail sales; macroeconomic uncertainty is recognized with adjustments made to projections. " "

Improving clarity and measured caution – There is an evolution from uncertainty to a more informed and cautiously optimistic approach, with better clarity on tariffs and a coherent strategy to manage macroeconomic risks.

AFC performance and integration

Q1 2025 reported strong AFC performance with 15% adjusted EBITDA growth, low loan loss rates, and effective integration with the marketplace, where AFC facilitated dealer liquidity. " " " Q4 2024 showed robust performance with a 10% increase in adjusted EBITDA and effective integration of commercial inventory. " " Q3 2024 noted solid results with improved risk management and key integration contributions. " " "

In Q2 2025, AFC delivered strong quarter results with continued growth in average managed receivables, maintained loan loss rates at 1.5%, and enhanced cross-pollination initiatives between AFC and the marketplace (e.g. dealer registration streamlining and replacement vehicle recommendations). " " " "

Sustained strength with deepening integration – AFC continues to perform strongly and is now more tightly integrated with the core marketplace, reinforcing its strategic importance and enhancing cross-selling synergies.

Technological and product innovations

Q1 2025 highlighted platform consolidation, the launch of the OneApp in the U.S., and Canadian innovations like tariff filter technology and Pro subscription enhancements. " Q4 2024 emphasized a robust pipeline for 2025 including AI-enabled features and seamless platform integrations. " " " Q3 2024 detailed innovations such as Visual Boost AI, Absolute Sale enhancements, and AI-powered recommendations across geographies. " "

In Q2 2025, the company is advancing technology with initiatives to simplify its tech stack, roll out AI-driven inspection enhancements, extend the "absolute sale" feature which adds additional value per vehicle sale, and implement new digital marketing and analytic capabilities. "

Enhanced innovation with a focus on customer experience – The product innovation pipeline remains robust, with continual improvements and new AI-driven features that further streamline processes and enhance both seller and buyer experiences, indicating positive momentum.

Operational cost pressures and margin compression

Q1 2025 stressed revenue growth outpacing cost increases with flat or controlled SG&A and operating leverage yielding improved margins. " Q4 2024 acknowledged some cost pressures (e.g. 19% increase in cost of services) but emphasized reductions in SG&A and strong margin gains in key segments. " " Q3 2024 focused on cost management with SG&A reductions and efficient marketplace operations despite some external impacts. " "

In Q2 2025, the company reported margin expansion with a 190 basis point increase in adjusted EBITDA margin (18%) and emphasized the scalability and cost efficiency of its asset-light digital model, with only modest increases in SG&A when adjusted. " "

Improved efficiency and healthy margins – The narrative shows a clear evolution from managing cost pressures to achieving margin expansion, underpinned by efficiency gains in both the marketplace and finance segments.

Business portfolio adjustments (divestiture of Automotive Keys)

Q1 2025 described the divestiture’s impact on service revenue (a 2%-3% contribution in prior periods) and noted that excluding Automotive Keys, adjusted EBITDA growth would be higher. " " Q4 2024 confirmed the sale as part of the strategic shift towards an asset-light digital model and noted its contribution to cash flow and guidance adjustments. " " " Q3 2024 did not mention this topic.

In Q2 2025, the divestiture of the Automotive Keys business is noted as a factor affecting year-over-year comparisons, with adjusted EBITDA growth reported higher when excluding its impact, reinforcing the focus on digital marketplace operations. " "

Streamlining for core focus – The divestiture remains a consistent adjustment that supports the company’s strategy to concentrate on its core marketplace and finance segments, thereby enhancing overall operational focus and long-term growth potential.

Leadership changes (CFO changes)

Q1 2025 announced the appointment of Brad Herring as the incoming CFO (with interim leadership by Ryan Miller), while Q4 2024 noted the departure of CFO Brad Lakhia with a transition underway. " " Q3 2024 communicated CFO Brad Lakhia’s impending departure and a national search for his successor. " "

In Q2 2025, the new CFO, Brad Herring, is formally introduced as having joined in May 2025, bringing extensive experience and outlining his strategic approach to growth, profitability, and cash generation. " "

Ongoing leadership transitions with stabilization – Although CFO turnover has been a recurring theme, the introduction of an experienced new CFO in Q2 2025 reflects the company’s commitment to effective financial leadership and long-term stability.

Cross-selling initiatives and integration challenges

Q1 2025 underscored cross-selling between AFC and the marketplace, highlighting opportunities such as leveraging dealers’ loan payoffs to offer replacement vehicles, with no significant integration challenges reported. " " Q4 2024 did not discuss this topic, and Q3 2024 had no mention of cross-selling or integration challenges.

In Q2 2025, cross-selling initiatives are prominently featured with efforts to enhance integration between AFC and the marketplace through streamlined dealer registration, internal incentive alignment, and showcasing replacement vehicles on the AFC platform. "

Growing focus on integrated cross-selling – The current period introduces clearer and more strategic cross-selling initiatives aimed at deepening integration between business segments, suggesting a proactive effort to capitalize on internal synergies.