Octane Grows Originations by 36% to more than $1.6 Billion in Record-Breaking Year

Company Exceeds $5 Billion in Aggregate Originations and Doubles RV Originations

• Octane originated more than $1.6 billion in 2024, a 36% increase year-over-year, doubled its RV originations, and surpassed $5 billion in aggregate originations
• Closed its Series E funding round, entered the marine market, and launched over 100 new products and enhancements, including Dealer Portal 2.0
• Expanded its relationships with Kawasaki and CFMOTO, and partnered with RideNow to launch RideNow Finance
• Closed four asset-backed securitizations, including its first ABS transaction wholly backed by RV and Marine collateral, and closed the year GAAP net income profitable
• Completed whole-loan sales and announced forward flow commitments of $1 billion
• Won notable awards, opened new headquarters, and made key personnel appointments

NEW YORK, Jan. 9, 2025 /PRNewswire/ -- Octane^® (Octane Lending, Inc.^®), the fintech company revolutionizing the financing experience, announced its 2024 milestones on its journey to make buying better. The company had a record-breaking year, exceeding its originations targets, expanding its product offering and markets served, diversifying its capital markets strategy, and strengthening its leadership team.

Significant Momentum in Octane's Powersports and Recreational Vehicle (RV) Business
Octane saw considerable growth in both its powersports and RV business in 2024. The company grew originations through its in-house lender, Roadrunner Financial^®, Inc., by 36 percent year-over-year, closing the year at more than $1.6 billion in 2024 originations. Octane also reached several milestones last year, surpassing $4 billion in aggregate originations in February and $5 billion in aggregate originations in September. The company continued to see strong growth in the RV market, doubling its RV originations for the second year in a row. At the same time, it expanded its relationships with key powersports original equipment manufacturers (OEMs), launching full-spectrum financing with both Kawasaki and CFMOTO.

Equity Financing Fuels Product Innovation and Expansion into New Markets
Octane raised $50 million in its Series E funding round, bringing its total equity funding raised since inception to $242 million. This investment fueled the company's entrance into the marine market with full-spectrum credit coverage. During the course of 2024, Octane introduced over 100 new products and product enhancements to make buying better for dealer partners and their customers, including Dealer Portal 2.0, a significantly upgraded version of its industry-leading dealer platform. Octane's soft-pull prequalification tools, Octane Prequal^® and Prequal Flex^®, continued to help consumers quickly and easily apply for financing with more than 1200 dealers using each tool, respectively; nearly 400,000 powersports applications were sent to partner dealers through the two digital tools. The company also partnered with RideNow, the largest powersports retailer in North America, to launch RideNow Finance, a private label partnership that drives more sales for RideNow Powersports Dealerships through digital tools, full-spectrum financing, and branded lifecycle marketing.

Strong Financial Performance Combined with Historic ABS Transaction Concludes a Successful Year in Capital Markets
Octane continued to diversify its capital markets strategy in 2024. The company completed four asset-backed securitizations (ABS), which were supported by over 100 investors. The first three transactions, OCTL 2024-1, OCTL 2024-2, and OCTL 2024-3, were backed by powersports collateral. The fourth transaction, OCTL 2024-RVM1, was Octane's first transaction backed wholly by RV and Marine collateral and the first deal of its type in two decades. In addition to completing more than $4 billion of ABS deals to date, other notable 2024 accomplishments include completing a $500 million forward-flow deal with funds managed by AB CarVal, announcing two separate whole loan sales totaling $280 million to Yieldstreet, and completing a $200 million whole loan sale to funds managed by AB CarVal. Octane maintains approximately $1 billion in revolving capacity. Additionally, the company realized strong financial performance in 2024; year-over-year Octane grew top line revenue by 46%, grew profit by 62% (for a gross profit margin of 41%), and increased GAAP net income by approximately 650%, all new record highs*. 

Key Leadership Appointments and New Headquarters in Octane's 10th Year in Business
In 2024, Octane made several executive appointments, brought in key talent, and garnered recognition for its performance, culture, and leadership. Octane appointed its first President, Steven Fernald, who continues to serve as the company's Chief Financial Officer in addition to overseeing its Powersports and Outdoor Power Equipment (OPE) business, and announced the appointment of a new Chief Risk Officer, Mark Molnar, an executive with over thirty years of risk experience at both established banks and fintech companies.

Octane also strengthened its Sales and Engineering expertise by acquiring the team behind The Lasso, a platform that links car sellers directly to a network of hundreds of top-notch dealerships. Nate Milhalovich, formerly the CEO and co-founder of The Lasso, joined Octane as SVP of New Verticals, along with four talented engineers and salespeople. Octane will leverage Milhalovich and The Lasso team's technical skills, entrepreneurial spirit, and experience building pipelines and relationships to help Octane strengthen its offering and expand into new markets.

In 2024, Octane celebrated its tenth anniversary, opened a new headquarters in Manhattan, and won nearly 30 awards, including ranking on the Inc. 5000 list of the fastest growing private companies for the third year in a row, making the Technology Fast 500 awarded by Deloitte, LLP for the second year in a row, and being named one of the Best Places to Work in Dallas for the second year in a row. Octane's CEO and Co-founder, Jason Guss, continued to receive accolades for his leadership and vision, being named an Entrepreneur Of The Year^® 2024 New York Award Finalist for the second time and receiving the Powersports Finance Achievement Award in Leadership.

"The past year was the most successful in Octane's ten-year history, made possible thanks to the creativity and effort of our team and the ongoing support of our esteemed dealer, OEM, and investor partners," said Guss. "We intend to build on this momentum in 2025, as we reaffirm our commitment to making buying better through a fast, seamless financing experience."

This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

*Financial performance based on 2024 unaudited company financial statements.

About Octane: 
Octane^® is revolutionizing recreational purchases by delivering a seamless, end-to-end digital buying experience. We connect people with their passions by combining cutting-edge technology and innovative risk strategies to make lifestyle purchases–like powersports vehicles, RVs, boats, personal watercraft, and outdoor power equipment–fast, easy, and accessible.

Octane adds value throughout the customer journey: inspiring enthusiasts with the Octane Media™ editorial brands, including Cycle World^® and UTV Driver^®, instantly prequalifying consumers for financing online, routing customers to dealerships for an easy closing, and supporting customers throughout their loan with superior loan servicing.

Founded in 2014, we have approximately 40 OEM partner brands and 4,000 dealer partners, and a team of over 500 in remote and hybrid roles. Visit www.octane.co.

Octane^®, Roadrunner Financial^®, Octane Prequal^®, and Prequal Flex^® are registered service marks of Octane Lending, Inc.

Media Relations: Shannon O'Hara
[email protected]

Investor Relations:
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SOURCE Octane