$OPLN

KAR Auction Services, Inc.

CIK:0001395942|SEC Filings

Consolidated Statements of Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Consolidated Statements of Income - USD ($) $ in Millions	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Operating revenues
Operating revenues	$ 554.6	$ 481.7	$ 1,082.5	$ 941.8
Operating expenses
Cost of services (exclusive of depreciation and amortization)	306.4	254.4	578.1	496.0
Finance interest expense	25.7	26.9	50.5	54.5
Provision for credit losses	8.9	8.7	19.2	18.0
Selling, general and administrative	123.8	114.3	248.2	221.5
Depreciation and amortization	22.3	23.0	45.2	45.7
Loss on sale of property	0.0	7.0	0.0	7.0
Total operating expenses	487.1	434.3	941.2	842.7
Operating profit	67.5	47.4	141.3	99.1
Interest expense	10.0	3.1	20.1	7.1
Other income, net	(3.6)	(7.4)	(5.2)	(12.4)
Income before income taxes	61.1	51.7	126.4	104.4
Income taxes	16.8	18.3	33.2	34.1
Net income	44.3	33.4	93.2	70.3
Amounts attributable to common stockholders [Abstract]
Net income	44.3	33.4	93.2	70.3
Series A Preferred Stock dividends	(3.3)	(11.1)	(8.6)	(22.2)
Net income attributable to participating securities	(3.4)	(5.6)	(9.3)	(12.0)
Net income attributable to common stockholders	$ 37.6	$ 16.7	$ 75.3	$ 36.1
Net income per share, Basic
Basic (in dollars per share)	$ 0.33	$ 0.16	$ 0.68	$ 0.34
Net income per share, Diluted
Diluted (in dollars per share)	$ 0.32	$ 0.15	$ 0.67	$ 0.33
Auction and Related Fees
Operating revenues
Operating revenues	$ 259.0	$ 213.9	$ 500.8	$ 412.8
SaaS and Other Revenue
Operating revenues
Operating revenues	73.4	63.1	140.9	129.7
Purchased vehicle sales
Operating revenues
Operating revenues	114.9	98.5	227.1	184.2
Finance revenue
Operating revenues
Operating revenues	$ 107.3	$ 106.2	$ 213.7	$ 215.1

Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities
Net income	$ 93.2	$ 70.3
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	45.2	45.7
Provision for credit losses	19.2	18.0
Deferred income taxes	3.5	2.8
Amortization of debt issuance costs	4.8	4.4
Stock-based compensation	17.9	5.8
Loss on sale of property	0.0	7.0
Other non-cash, net	0.7	0.2
Changes in operating assets and liabilities:
Trade receivables and other assets	(86.9)	(55.1)
Accounts payable and accrued expenses	114.8	95.1
Net cash provided by operating activities	212.4	194.2
Investing activities
Net increase in finance receivables held for investment	(216.7)	(45.0)
Purchases of property, equipment and computer software	(26.9)	(26.1)
Investments in securities	(1.6)	(0.7)
Proceeds from sale of investments	1.9	0.0
Proceeds from the sale of property and equipment	0.0	42.4
Net cash used by investing activities	(243.3)	(29.4)
Financing activities
Net increase in book overdrafts	3.4	0.5
Net repayments of lines of credit	0.0	(23.2)
Net increase in obligations collateralized by finance receivables	134.8	49.4
Payments for debt issuance costs/amendments	0.0	(0.4)
Payments on long-term debt	(2.8)	(210.0)
Issuance of common stock under stock plans	9.9	2.9
Tax withholding payments for vested RSUs	(9.4)	(6.5)
Repurchase and retirement of common stock, including excise taxes	(48.2)	(9.4)
Repurchase and retirement of Series A Preferred Stock, including excise taxes	(5.6)	0.0
Dividends paid on Series A Preferred Stock	(5.3)	(22.2)
Net cash provided by (used by) financing activities	76.8	(218.9)
Effect of exchange rate changes on cash	(13.5)	19.2
Net increase (decrease) in cash, cash equivalents and restricted cash	32.4	(34.9)
Cash, cash equivalents and restricted cash at beginning of period	185.4	183.7
Cash, cash equivalents and restricted cash at end of period	217.8	148.8
Supplemental disclosures of cash flow information
Cash paid for interest	66.6	58.1
Cash paid for taxes, net of refunds	39.2	27.3
Supplemental disclosure of non-cash financing activity
Accrual for repurchase of common stock	0.1	0.0
Discontinued Operations
Cash paid for taxes, net of refunds	$ (0.5)	$ (1.5)

Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents	$ 189.7	$ 141.5
Restricted cash	28.1	43.9
Trade receivables, net of allowances of $9.6 and $9.7	391.2	314.1
Finance receivables, net of allowances of $30.0 and $27.5	2,621.1	2,425.4
Other current assets	98.4	86.7
Total current assets	3,328.5	3,011.6
Other assets
Goodwill	1,236.1	1,243.5
Customer relationships, net of accumulated amortization of $463.7 and $459.2	94.2	102.7
Other intangible assets, net of accumulated amortization of $570.9 and $555.0	135.2	142.8
Operating lease right-of-use assets	55.9	57.9
Property and equipment, net of accumulated depreciation of $139.4 and $141.5	98.0	104.2
Other assets	58.5	61.6
Total other assets	1,677.9	1,712.7
Total assets	5,006.4	4,724.3
Current liabilities
Accounts payable	802.9	665.8
Accrued employee benefits and compensation expenses	42.8	50.8
Accrued interest	10.7	11.3
Other accrued expenses	85.4	90.8
Income taxes payable	15.9	21.4
Obligations collateralized by finance receivables	1,887.0	1,758.3
Current maturities of long-term debt	5.5	5.5
Total current liabilities	2,850.2	2,603.9
Non-current liabilities
Long-term debt	529.2	530.1
Deferred income tax liabilities	0.5	0.6
Operating lease liabilities	50.8	53.0
Other liabilities	4.5	6.2
Total non-current liabilities	585.0	589.9
Commitments and contingencies (Note 9)
Temporary equity
Series A convertible preferred stock	0.0	289.8
Stockholders' equity
Common stock, $0.01 par value: Authorized shares: 400,000,000; Issued and outstanding shares: June 30, 2026: 122,930,643 December 31, 2025: 106,175,229	1.2	1.1
Additional paid-in capital	956.0	692.8
Retained earnings	671.3	586.7
Accumulated other comprehensive loss	(57.3)	(39.9)
Total stockholders' equity	1,571.2	1,240.7
Total liabilities, temporary equity and stockholders' equity	$ 5,006.4	$ 4,724.3