LITHIA MOTORS INC
For the period ended Jun 30, 2026. Filed Jul 29, 2026.
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.
Jun 30, 2026 · Filed Jul 29, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-29.
0001023128-26-000036
Item 2. Management’s Discussion and Analysis of Financial Condition andCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-29.
0001023128-26-000051
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 391 previous paragraphs and 445 current paragraphs.
296 unchanged; 75 reworded; 55 added; 20 removed; 0 previous and 19 current paragraphs rearranged.
Tables are not compared: 39 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 (55)
Current report
2025, driven by acquisition activity. Same store new vehicle revenue decreased 1.5% due toa decrease in unit
Current report
volume of 2.2%, partially offset byan increase in average selling prices of 0.1%.
Current report
margins of 80 bps. Total same store new vehicle gross profit per unit, which includes the finance and insurance
Current report
New vehicle revenue for thesix months ended June 30, 2026 decreased 0.8% compared to the same period of
Current report
margins of 60 bps. Total same store new vehicle gross profit per unit, which includes the finance and insurance
Current report
Used vehicle retail revenue for the three months ended June 30, 2026 increased 1.4% compared to the same
Current report
due toa decrease in unit volume of 6.1%, partially offset byan increase in average selling prices of 4.2%.
Current report
generated from the sales of retail used vehicles, increased $138 to$3,621.
Current report
Used vehicle retail revenue for thesix months ended June 30, 2026 increased 4.3% compared to the same period
Current report
of 2025 driven by acquisition activity and supported by same store performance. On a same store basis, used
Current report
decreased $3 to$1,811.
Current report
Total finance and insurance income decreased 1.6% in thesix months ended June 30, 2026 compared to the same
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to$1,809.
Current report
Our aftersales revenue increased 3.9% in the three months ended June 30, 2026 compared to the same period of
Current report
We focus on retaining customers by offering competitively-priced routine maintenance and through our marketing
Current report
efforts. Customer pay revenue accounted for the largest share of our same-store aftersales revenue, representing
Current report
56.7% of the total.
Current report
customer pay and warranty transactions. Overall same store aftersales gross margins increased 120 bps, primarily
Current report
as a result ofincreased customer pay gross margin of 110 bps andincreased warranty gross margin of 150 bps.
Current report
Our aftersales revenue increased 5.0% in thesix months ended June 30, 2026 compared to the same period of
Current report
Loan originations increased in the three months ended June 30, 2026 compared to the same period of 2025, and
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our penetration rate increased due to increased engagement with our stores. The weighted average contract rate of
Current report
loans originated in the three months ended June 30, 2026 decreased to 8.0%, compared with 8.7% in the same
Current report
period of 2025, primarily due to our maintaining competitive pricing following Federal Reserve rate cuts. The
Current report
decrease in annualized net charge-offs of past due accounts as a percentage of ending managed receivables
Current report
compared to the prior year reflects the increased credit quality of the portfolio as well as improved execution of our
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collateral management team.
Current report
SG&A as a percentage of gross profit was 67.8% for the three months ended June 30, 2026 compared to 68.3% for
Current report
the same period of 2025. SG&A expense remained flat, including increases in advertising, rent, and facility costs
Current report
due to acquisitions, and offsetting decreases in personnel and other SG&A costs.
Current report
SG&A as a percentage of gross profit was 70.3% for thesix months ended June 30, 2026 compared to 67.9% for
Current report
Adjusted SG&A for the three months ended June 30, 2026 excludes a$15.1 million net gain on store disposals,
Current report
$2.3 million in storm insurance charges, and$0.4 million in acquisition-related expenses.
Current report
Adjusted SG&A for the three months ended June 30, 2025 excludes a$7.2 million net loss on store disposals,
Current report
$2.4 million in storm insurance charges, and$0.1 million in acquisition-related expenses.
Current report
$2.3 million in storm insurance charges, $0.7 million in acquisition-related expenses, and a$15.0 million net gain on
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store disposals.
Current report
Adjusted SG&A for thesix months ended June 30, 2025 excludes$2.8 million in storm insurance charges,
Current report
Floor plan interest expense increased $14.7 million in the three months ended June 30, 2026 compared to the same
Current report
Floor plan interest expense increased $13.6 million in thesix months ended June 30, 2026 compared to the same
Showing the first 40 of 55 passages. Open the source sections for the rest.
Removed paragraphs (20)
Previous report
margins of 50 bps. Total same store new vehicle gross profit per unit, which includes the finance and insurance
Previous report
Used vehicle retail revenue for thethree months ended March 31, 2026 increased 7.3% compared to the same
Previous report
increased $1 to$1,813.
Previous report
Our aftersales revenue increased 6.1% in thethree months ended March 31, 2026 compared to the same period of
Previous report
SG&A as a percentage of gross profit was 73.0% for thethree months ended March 31, 2026 compared to 67.5%
Previous report
activity.
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Adjusted SG&A for thethree months ended March 31, 2025 excludes$0.2 million in acquisition-related expenses,
Previous report
$0.4 million in storm insurance charges, and a$9.4 million net gain on store disposals.
Previous report
Floor plan interest expense decreased $1.2 million in thethree months ended March 31, 2026 compared to the
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customer lists.
Previous report
1 See Non-GAAP Reconciliations for more details.
Previous report
borrowings on our warehouse facilities compared to the same period of 2025, and our September 2025 issuance of
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senior notes due 2030.
Previous report
Other (Expense) Income, net
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Group PLC.
Previous report
1 See Non-GAAP Reconciliations for more details.
Previous report
affected by the geographic mix of earnings during the period and a decrease in general business credits. Excluding
Previous report
Cash provided by operating activities for thethree months ended March 31, 2026 decreased $430.5 million
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ended March 31, 2026 and 2025.
Previous report
technology, and higher in existing operations improvements.
Reworded paragraphs (75)
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however consumers desire. As of March 31, 2026, we operated 465 locations representing 57 brands in the United
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however consumers desire. As of June 30, 2026, we operated 467 locations representing 59 brands in the United
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LAD builds magnetic customer loyalty across our 465 stores, our Driveway and GreenCars e-commerce platforms,
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LAD builds magnetic customer loyalty across our 467 stores, our Driveway and GreenCars e-commerce platforms,
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current valuation trends in acquisitions relative to stock price performance. During the first three months of 2026, we
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current valuation trends in acquisitions relative to stock price performance. During the firstsix months of 2026, we
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utilized$97.1 million for capital expenditures investing in our existing business and$145.3 million expanding our
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utilized$153.4 million for capital expenditures investing in our existing business and$221.7 million expanding our
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network through acquisitions. We also provided shareholder return in the form of$12.8 million in dividends and
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network through acquisitions. We also provided shareholder return in the form of$25.7 million in dividends and
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$297.0 million in share repurchases. As of March 31, 2026, we had available liquidity of approximately$1.4 billion,
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$534.0 million in share repurchases. As of June 30, 2026, we had available liquidity of approximately$1.3 billion,
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which was comprised of$160.8 million in unrestricted cash,$55.9 million in marketable securities, and$1.2 billion
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which was comprised of$110.3 million in unrestricted cash,$67.0 million in marketable securities, and$1.1 billion
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We experienced growth of revenue in 2026 compared to 2025, primarily driven byincreases in used vehicle and
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We experienced growth of revenue in 2026 compared to 2025, primarily driven by increases in used vehicle and
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months when operations occurred in both periods. For example, a store acquired in February 2025 would be
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months when operations occurred in both periods. For example, a store acquired in May 2025 would be included in
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included in same store operating data beginning in March 2026, after its first complete comparable month of
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same store operating data beginning in June 2026, after its first complete comparable month of operation. The
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operation. Thefirst quarter operating results for the same store comparisons would include results for that store in
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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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only the month of March for both comparable periods.
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month of June for both comparable periods.
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to the same period of 2025.
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New vehicle revenue for the three months ended June 30, 2026 increased 2.7% compared to the same period of
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Same store new vehicle gross profit per unit decreased 7.7%, driven bya decrease in new vehicle gross profit
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Same store new vehicle gross profit per unit decreased 11.1%, driven bya decrease in new vehicle gross profit
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revenue generated from the sales of new vehicles, decreased $139 to$4,866.
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revenue generated from the sales of new vehicles, decreased $352 to$4,812.
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decreased 7.1% due toa decrease in unit volume of 7.1% anda decrease in average selling prices of 1.0%.
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decreased 4.1% due toa decrease in unit volume of 4.5% anda decrease in average selling prices of 0.4%.
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period of 2025 driven by same store performanceand supported by acquisition activity. On a same store basis,
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period of 2025 driven by acquisition activity. On a same store basis, used vehicle retail revenue decreased 2.2%
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volume of 0.6%. Total same store used vehicle retail gross profit per unit, which includes the finance and insurance
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Total same store used vehicle retail gross profit per unit, which includes the finance and insurance revenue
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used vehicle retail sales increased 4.6% due toan increase in average selling prices of 4.2% andan increase in unit
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vehicle retail sales increased 1.2% due toan increase in average selling prices of 4.0%, partially offset bya
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revenue generated from the sales of used retail vehicles, decreased $134 to$3,279.
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finance and insurance revenue generated from the sales of used retail vehicles, decreased $7 to$3,438.
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Total finance and insurance income decreased 1.3% in thethree months ended March 31, 2026 compared to the
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Total finance and insurance income decreased 2.0% in the three months ended June 30, 2026 compared to the
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insurance revenues decreased 3.7%. On a same store basis, our finance and insurance revenue per retail unit
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insurance revenues decreased 5.2%. On a same store basis, our finance and insurance revenue per retail unit
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increased 3.8%, driven byan increase in customer pay revenues of 4.8% andan increase inwarranty revenues of
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increased 2.4%, driven byan increase in customer pay revenues of 2.8% andan increase inwarranty revenues of
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4.0% compared to the prior year.
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3.4% compared to the prior year.
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Same store aftersales gross profit increased 5.7%. This increase was primarily due to increased volume of
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Same store aftersales gross profit increased 4.4%. This increase was primarily due to increased volume of
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customer pay transactions. Overall same store aftersales gross margins increased 100 bps, primarily as a result of
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customer pay transactions. Overall same store aftersales gross margins increased 110 bps, primarily as a result of
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increased customer pay margins of 120 bps andincreased warranty gross margins of 50 bps.
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increased customer pay margins of 110 bps andincreased warranty gross margins of 100 bps.
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Financing Operations income reflects theinterest and fee income generated by the portfolio of auto loan and
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Financing Operations income reflects the interest and fee income generated by the portfolio of auto loan and
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Financing operations recorded higher income in thethree months ended March 31, 2026 compared to the same
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Financing operations recorded higher income in the three months ended June 30, 2026 compared to the same
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period of 2025, primarily due to increased interest income resulting from the growth of the portfolio and a decreased
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period of 2025, primarily due to the increased interest income resulting from the growth of the portfolio and a
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cost of funds, resulting in an expansion of total interest margin to 4.8%.
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funds, resulting in an expansion of total interest margin to 4.8%.
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The weighted average contract rate on loans originated in thethree months ended March 31, 2026 decreased to
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The weighted average contract rate on loans originated in thesix months ended June 30, 2026 decreased to 8.0%,
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7.9%, compared with 9.1% in the same period of 2025 as we decreased rates to maintain competitiveness following
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compared with 8.9% in the same period of 2025 as we decreased rates to maintain competitiveness following
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On a same store basis and excluding non-core charges, SG&A as a percentage of gross profit was 71.8%
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On a same store basis and excluding non-core charges, SG&A as a percentage of gross profit was 68.6%
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for the same period of 2025, driven by increases in all expense categories outpacing the increase in gross profit.
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the same period of 2025, driven by increases in all expense categories outpacing the increase in gross profit. Total
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Total SG&A expense increased 8.9%, driven by increases in personnel and other costs as a result of our acquisition
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SG&A expense increased 4.3%, driven by all areas as a result of our acquisition activity.
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compared to 67.4% for the same period of 2025. Theincrease was related to SG&A growth outpacing gross profit
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compared to 67.3% for the same period of 2025. Theincrease was related to SG&A growth outpacing gross profit
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Adjusted SG&A for thethree months ended March 31, 2026 excludes$20.3 million in one-time contract buyouts and
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Adjusted SG&A for thesix months ended June 30, 2026 excludes$20.3 million in one-time contract buyouts,
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$0.3 million in acquisition-related expenses.
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$0.3 million in acquisition-related expenses, and a$2.2 million net gain on store disposals.
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same period of 2025 due to a decrease in interest rates, offset by an increase in floored inventory levels.
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period of 2025 due to an increase in floored inventory levels, as a result of our converting used inventory‑secured
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Rearranged current paragraphs (19)
Current report — wording carried from elsewhere
Same store new vehicle gross profit per unit decreased 9.5%, driven bya decrease in new vehicle gross profit
Current report — wording carried from elsewhere
revenue generated from the sales of new vehicles, decreased $249 to$4,831.
Current report — wording carried from elsewhere
decrease in unit volume of 2.5%. Total same store used vehicle retail gross profit per unit, which includes the
Current report — wording carried from elsewhere
period of 2025, driven by same store performance, offset by acquisition activity. Same store finance and insurance
Current report — wording carried from elsewhere
revenues decreased 4.4%. On a same store basis, our finance and insurance revenue per retail unit decreased $4
Current report — wording carried from elsewhere
2025, driven by same store performance and supported by acquisition activity.
Current report — wording carried from elsewhere
Same store aftersales gross profit increased 3.1%. This increase was primarily due to increased volumes of
Current report — wording carried from elsewhere
decreased cost of funds, which collectively expanded total interest margin to 4.8%.
Current report — wording carried from elsewhere
Financing operations recorded higher income in thesix months ended June 30, 2026 compared to the same period
Current report — wording carried from elsewhere
of 2025, primarily due to increased interest income resulting from the growth of the portfolio and a decreased cost of
Current report — wording carried from elsewhere
compared to 67.2% for the same period of 2025. Theincrease was primarily related to SG&A growth outpacing
Current report — wording carried from elsewhere
gross profit growth in the period.
Current report — wording carried from elsewhere
On a same store basis and excluding non-core charges, SG&A as a percentage of gross profit was 70.1%
Current report — wording carried from elsewhere
revolvers to floorplan facilities during the year.
Current report — wording carried from elsewhere
revolvers to floorplan facilities during the year.
Current report — wording carried from elsewhere
of 2025, primarily as a result of foreign currency remeasurements and fair value changes in our investment in
Current report — wording carried from elsewhere
for new operations purchases and improvements.
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(1) Includes the impact of converting inventory‑secured revolvers to floorplan facilities during 2026, increasing net floorplan
Current report — wording carried from elsewhere
borrowings and adjusted operating cash flows by $1,138.3 million.