LITHIA MOTORS INC
For the period ended Sep 30, 2025. Filed Oct 24, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 24, 2025
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-30.
0001023128-25-000094
Item 2. Management’s Discussion and Analysis of Financial Condition andCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-24.
0001023128-25-000125
Item 2. Management’s Discussion and Analysis of Financial Condition andThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 442 previous paragraphs and 458 current paragraphs.
305 unchanged; 102 reworded; 48 added; 30 removed; 5 previous and 3 current paragraphs rearranged.
Tables are not compared: 54 previous and 55 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (48)
Current report
•The profitability of our strategy and growth
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billion availability on our credit facilities.
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New vehicle retail revenue for thenine months ended September 30, 2025 increased 5.1% compared to the same
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vehicle retail revenue increased 4.4% due toan increase in unit volume of 2.6% andan increase in average selling
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prices of 1.7%.
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used vehicle revenue increased 11.8% due toan increase in unit volume of 6.3% andan increase in average selling
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prices of 5.1%.
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Used vehicle retail revenue for thenine months ended September 30, 2025 increased 5.6% compared to the same
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used vehicle retail sales increased 5.7% due toan increase in unit volume of 3.2% andan increase in average
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retail unit increased $20 to$1,847.
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increased $26 to$1,857.
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Our aftersales revenue increased 2.4% in the three months ended September 30, 2025 compared to the same
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56.7% of the total.
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Our aftersales revenue increased 5.7% in thenine months ended September 30, 2025 compared to the same
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SG&A as a percentage of gross profit was 68.1% for the three months ended September 30, 2025 compared to
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SG&A as a percentage of gross profit was 68.0% for thenine months ended September 30, 2025 compared to
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result of our acquisition activity.
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compared to 66.6% for the same period of 2024. Theincrease was related to SG&A growth outpacing gross profit
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disposals,$2.5 million in storm insurance charges, and$15.9 million in acquisition-related expenses.
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and$0.2 million in acquisition-related expenses.
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Adjusted SG&A for thenine months ended September 30, 2025 excludes$16.1 million in acquisition-related
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expenses and$5.4 million in storm insurance charges, partially offset by a$17.7 million net gain on store disposals.
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Adjusted SG&A for thenine months ended September 30, 2024 excludes$9.7 million in acquisition-related
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expenses,$6.0 million in storm insurance charges, and a$0.3 million net gain on store disposals.
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Floor plan interest expense decreased $44.2 million in thenine months ended September 30, 2025 compared to the
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Operating margin decreased 20 bps in the three months ended September 30, 2025 compared to the same period
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profitability of our Financing Operations.
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senior notes due 2030.
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senior notes due 2030.
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Other (Expense) Income, net
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the same period of 2024, primarily as a result of fair market value changes in our investment in Pinewood
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Other income, net in thenine months ended September 30, 2025 increased $0.5 million compared to the same
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PLC, foreign currency remeasurements, and an increase in net pension benefit.
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On July 4, 2025, the One Big Beautiful Bill Act ("OB3 Act") was enacted into U.S. law. The effect of this legislation
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has been included in our income tax provision for the nine-month period ended September 30, 2025. As a result of
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the OB3 Act, we expect to realize cash tax savings in 2025, primarily driven by enhanced bonus depreciation
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provisions and modifications to the business interest expense limitation rules. The OB3 Act does not have a material
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impact on our effective tax rate.
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(1) Investment losses (gains) retrospectively included in adjusted non-GAAP financial measures presented
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performance.
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Removed paragraphs (30)
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on our credit facilities.
Previous report
2024, driven by same store performance. Same store new vehicle revenue increased 2.0% due toan increase in
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unit volume of 2.0%.
Previous report
New vehicle retail revenue for thesix months ended June 30, 2025 increased 5.5% compared to the same period of
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revenue increased 6.5% due toan increase in unit volume of 3.9% andan increase in average selling prices of
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Used vehicle retail revenue for thesix months ended June 30, 2025 increased 3.9% compared to the same period
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vehicle retail sales increased 2.7% due toan increase in unit volume of 1.7% andan increase in average selling
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increased $25 to$1,841.
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increased $31 to$1,860.
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Our aftersales revenue increased 7.6% in the three months ended June 30, 2025 compared to the same period of
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56.3% of the total.
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Our aftersales revenue increased 7.5% in thesix months ended June 30, 2025 compared to the same period of
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SG&A as a percentage of gross profit was 68.3% for the three months ended June 30, 2025 compared to 68.5% for
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SG&A as a percentage of gross profit was 67.9% for thesix months ended June 30, 2025 compared to 69.2% for
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compared to 67.4% for the same period of 2024. The decrease was related to gross profit growth outpacing SG&A
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$2.4 million in storm insurance charges, and$0.1 million in acquisition-related expenses.
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Adjusted SG&A for the three months ended June 30, 2024 excludes$6.1 million in storm insurance charges, and
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$1.8 million in acquisition-related expenses.
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Adjusted SG&A for thesix months ended June 30, 2025 excludes$2.8 million in storm insurance charges and
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$0.3 million in acquisition-related expenses, partially offset by a$2.2 million net gain on store disposals.
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Adjusted SG&A for thesix months ended June 30, 2024 excludes$9.5 million in acquisition-related expenses and
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$6.1 million in storm insurance charges.
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Floor plan interest expense decreased$25.3 million in thesix months ended June 30, 2025 compared to the same
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Operating margin increased 30 bps in thesix months ended June 30, 2025 compared to the same period in 2024,
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Other Income, net
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Other income, net in thesix months ended June 30, 2025 increased $18.9 million compared to the same period of
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2024, primarily as aresult of foreign currency exchange gains.
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Cash provided by operating activities for thesix months ended June 30, 2025 increased $187.4 million compared to
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deferred revenue, partially offset by changes infloor plan notes payable, accrued liabilities, andfinance receivables
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Over the last several years, our Board has authorized the repurchase of up to$2.4 billion of our Common Stock. We
Reworded paragraphs (102)
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however consumers desire. As of June 30, 2025, we operated 448 locations representing 52 brands in the United
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however consumers desire. As of September 30, 2025, we operated 447 locations representing 52 brands in the
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States, the United Kingdom, and Canada.
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United States, the United Kingdom, and Canada.
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LAD builds magnetic customer loyalty across our 448 stores, our Driveway and GreenCars e-commerce platforms,
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LAD builds magnetic customer loyalty across our 447 stores, our Driveway and GreenCars e-commerce platforms,
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more attractive use of funds than acquisitions. Our current free cash flow deployment strategy includes an allocation
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more attractive use of funds than acquisitions. Our current free cash flow deployment strategy includes a target
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of 25% to 35% investment in acquisitions, 25% investment in capital expenditures, innovation, and diversification
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allocation of 25% to 35% investment in acquisitions, 25% investment in capital expenditures, innovation, and
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and 40% to 50% in shareholder return in the form of dividends and share repurchases based on current valuation
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diversification and 40% to 50% in shareholder return in the form of dividends and share repurchases based on
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trends in acquisitions relative to stock price performance. During the firstsix months of 2025, we utilized$148.8
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current valuation trends in acquisitions relative to stock price performance. During the first nine months of 2025, we
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million for capital expenditures investing in our existing business, paid $28.2 million in dividends, and$263.3 million
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utilized$257.7 million for capital expenditures investing in our existing business, paid$42.1 million in dividends, and
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in share repurchases. As of June 30, 2025, we had available liquidity of approximately$1.3 billion, which was
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$662.3 million in share repurchases. As of September 30, 2025, we had available liquidity of approximately$1.9
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comprised of$202.8 million in unrestricted cash,$52.1 million in marketable securities, and$1.0 billion availability
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billion, which was comprised of$206.5 million in unrestricted cash,$54.9 million in marketable securities, and$1.6
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increase in total gross profit and financing operations, while remaining diligent in managing SG&Acosts, reducing
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increase in total gross profit and financing operations, while remaining diligentin managing SG&A costs, reducing
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months when operations occurred in both periods. For example, a store acquired in May 2024 would be included in
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months when operations occurred in both periods. For example, a store acquired in August 2024 would be included
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same store operating data beginning in June 2025, after its first complete comparable month of operation. The
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in same store operating data beginning in September 2025, after its first complete comparable month of operation.
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second quarter operating results for the same store comparisons would include results for that store in only the
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Thethird quarter operating results for the same store comparisons would include results for that store in only the
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compared to the same period of 2024.
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New vehicle revenue for the three months ended September 30, 2025 increased 4.5% compared to the same
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revenue increased 3.6% due toan increase in unit volume of 2.5% andan increase in average selling prices of
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revenue increased 5.5% due toan increase in average selling prices of 3.0% andan increase in unit volume of
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Same store new vehicle gross profit per unit decreased 8.1%, driven bya decrease in new vehicle gross profit
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Same store new vehicle gross profit per unit decreased 10.8%, driven bya decrease in new vehicle gross profit
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margins of 50 bps. Total same store new vehicle gross profit per unit, which includes the finance and insurance
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margins of 90 bps. Total same store new vehicle gross profit per unit, which includes the finance and insurance
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revenue generated from the sales of new vehicles, decreased $196 to$5,312.
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revenue generated from the sales of new vehicles, decreased $372 to$4,916.
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2024, primarily due to same store performance and supported by acquisition activity. Same store new vehicle retail
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period of 2024, primarily due to same store performance and supported by acquisition activity. Same store new
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Same store new vehicle retail gross profit per unit decreased 10.1%, driven bya decrease in new vehicle retail
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Same store new vehicle retail gross profit per unit decreased 10.2%, driven bya decrease in new vehicle retail
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gross profit margins of 80 bps. Total same store new vehicle retail gross profit per unit, which includes the finance
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gross profit margins of 90 bps. Total same store new vehicle retail gross profit per unit, which includes the finance
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and insurance revenue generated from the sales of new retail vehicles, decreased $303 to$5,231.
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and insurance revenue generated from the sales of new retail vehicles, decreased $324 to$5,122.
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Used vehicle revenue for the three months ended June 30, 2025 increased 3.6% compared to the same period of
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Used vehicle revenue for the three months ended September 30, 2025 increased 8.9% compared to the same
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of 2024 driven by same store performance and supported by acquisition activity. On a same store basis, used
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period of 2024 driven by same store performance and supported by acquisition activity. On a same store basis,
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from the sales of retail used vehicles, decreased $18 to$3,486.
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from the sales of retail used vehicles, decreased $22 to$3,435.
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2024 driven by same store performance and supported by acquisition activity. On a same store basis, used vehicle
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period of 2024 driven by same store performance and supported by acquisition activity. On a same store basis,
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prices of 1.1%. Total same store used vehicle retail gross profit per unit, which includes the finance and insurance
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selling prices of 2.4%. Total same store used vehicle retail gross profit per unit, which includes the finance and
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revenue generated from the sales of used retail vehicles, increased $25 to$3,508.
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insurance revenue generated from the sales of used retail vehicles, increased $6 to$3,483.
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Total finance and insurance income increased 3.6% in the three months ended June 30, 2025 compared to the
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Total finance and insurance income increased 5.0% in the three months ended September 30, 2025 compared to
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Newvehicle revenue for the three months ended June 30, 2025 increased 2.2% compared to the same period of
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the same period of 2024, driven by same store performance and supported by acquisition activity. Same store
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insurance revenues increased 3.8%. On a same store basis, our finance and insurance revenue per retail unit
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finance and insurance revenues increased 5.7%. On a same store basis, our finance and insurance revenue per
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Total finance and insurance income increased 5.2% in thesix months ended June 30, 2025 compared to the same
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Total finance and insurance income increased 5.2% in thenine months ended September 30, 2025 compared to the
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and insurance revenues increased 4.5%. On a same store basis, our finance and insurance revenue per retail unit
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and insurance revenues increased 4.4%. On a same store basis, our finance and insurance revenue per retail unit
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Same store aftersales gross profit increased 11.9%. This increase was primarily due to increased volumes of
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Same store aftersales gross profit increased 9.1%. This increase was primarily due to increased volumes of
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warranty and customer pay transactions. Overall same store aftersales gross margins increased 180 bps, primarily
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customer pay and warranty transactions. Overall same store aftersales gross margins increased 280 bps, primarily
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as a result of increased customer pay gross margin of 260 bps.
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as a result ofincreased customer pay gross margin of 240 bps andincreased warranty gross margin of 120 bps.
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2024, driven by same store performance and supported by acquisition activity. Same store warranty revenues saw a
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period of 2024, driven by same store performance and supported by acquisition activity. Same store warranty
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20.0% increase compared to the prior year.
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revenues saw a 15.7% increase compared to the prior year.
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Same store aftersales gross profit increased 9.7%. This increase was primarily due to increased volumes of
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Same store aftersales gross profit increased 9.5%. This increase was primarily due to increased volumes of
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Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
period of 2024, driven by same store performance and supported by acquisition activity. Same store new vehicle
Current report — wording carried from elsewhere
period of 2024, driven by same store performance and supported by acquisition activity.
Current report — wording carried from elsewhere
Adjusted SG&A for the three months ended September 30, 2025 excludes a$15.4 million net gain on store
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
period of 2024, driven by same store performance and supported by acquisition activity. Same store finance and
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2024, driven by same store performance and supported by acquisition activity.
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the same period of 2024, driven by improvements in personnel and advertising costs relative to gross profit. SG&A
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by increased SG&A of 3.0%.
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