LITHIA MOTORS INC
For the period ended Sep 30, 2026. Filed Oct 28, 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.
Sep 30, 2026 · Filed Oct 28, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious 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 andCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-28.
0001023128-26-000060
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 445 previous paragraphs and 446 current paragraphs.
291 unchanged; 105 reworded; 43 added; 46 removed; 3 previous and 7 current paragraphs rearranged.
Tables are not compared: 55 previous and 54 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 (43)
Current report
by increases in same store aftersales volume and used retail vehicle average selling price per unit. Total gross profit
Current report
also grew in 2026 compared to 2025, driven by acquisition growth and supported by increases in same store
Current report
aftersales gross margin and used retail vehicle average gross profit per unit. New vehicle gross profit decreased
Current report
period of 2025, driven by acquisition activity. Same store new vehicle revenue decreased 2.6% due toa decrease in
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margins of 40 bps. Total same store new vehicle gross profit per unit, which includes the finance and insurance
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New vehicle revenue for thenine months ended September 30, 2026 remained flat compared to the same period of
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2025, primarily due to acquisition growth being offset by same store performance. Same store new vehicle revenue
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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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used vehicle retail revenue increased 0.3% due toan increase in average selling prices of 3.5%, offset bya
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decrease in unit volume of 3.2%.
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Used vehicle retail revenue for thenine months ended September 30, 2026 increased 4.5% compared to the same
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in unit volume of 2.8%.
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the same period of 2025, driven by lower same store sales of finance and insurance products per retail vehicle sold,
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decreased $32 to$1,784.
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Our aftersales revenue increased 4.3% in the three months ended September 30, 2026 compared to the same
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period of 2025, driven by acquisition activity and same store performance.
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56.5% of the total.
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Our aftersales revenue increased 4.8% in thenine months ended September 30, 2026 compared to the same
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revenues of 4.4% compared to the prior year.
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SG&A as a percentage of gross profit was 69.3% for the three months ended September 30, 2026 compared to
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68.1% for the same period of 2025. Total SG&A increased in all expense categories as a result of our acquisition
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activity.
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1.6% compared to the same period of 2025.
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SG&A as a percentage of gross profit was 70.0% for thenine months ended September 30, 2026 compared to
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68.0% for the same period of 2025. Total SG&A increased in all expense categories as a result of our acquisition
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activity.
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compared to 67.1% for the same period of 2025. Theincrease was primarily driven bya decrease in gross profit of
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2.1% compared to the same period of 2025.
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and$0.8 million in storm insurance charges.
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disposals,$2.5 million in storm insurance charges, and$15.9 million in acquisition-related expenses.
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gain on store disposals.
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Adjusted SG&A for thenine months ended September 30, 2025 excludes$5.4 million in storm insurance charges,
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Floor plan interest expense increased $26.1 million in thenine months ended September 30, 2026 compared to the
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our Financing Operations.
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2025, primarily due to increased SG&A as a percentage of gross profit, partially offset by increased profitability of
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our Financing Operations.
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Other income, net in thenine months ended September 30, 2026 increased $36.8 million compared to the same
Current report
negatively affected by a lower benefit from valuation allowance reductions and a decrease in general business
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cash provided by operating activities for the nine months ended September 30, 2025 of$233.0 million, adecrease
Current report
of $437.9 million. Thedecrease was primarily related to changes ininventories, finance receivables, andtrade
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Removed paragraphs (46)
Previous report
aftersales volume related to acquisitions. Total gross profit grew in 2026 compared to 2025, primarily driven by
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acquisition growth and supported by same store increases in aftersales. New vehicle gross profit decreased
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2025, driven by acquisition activity. Same store new vehicle revenue decreased 1.5% due toa decrease in unit
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volume of 2.2%, partially offset byan increase in average selling prices of 0.1%.
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New vehicle revenue for thesix months ended June 30, 2026 decreased 0.8% compared to the same period of
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2025, primarily due to same store performance, offset by acquisition activity. Same store new vehicle revenue
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margins of 60 bps. Total same store new vehicle gross profit per unit, which includes the finance and insurance
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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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due toa decrease in unit volume of 6.1%, partially offset byan increase in average selling prices of 4.2%.
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Used vehicle retail revenue for thesix months ended June 30, 2026 increased 4.3% compared to the same period
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decreased $3 to$1,811.
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to$1,809.
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Our aftersales revenue increased 3.9% in the three months ended June 30, 2026 compared to the same period of
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56.7% of the total.
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Our aftersales revenue increased 5.0% in thesix months ended June 30, 2026 compared to the same period of
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3.4% compared to the prior year.
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collateral management team.
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economies of scale.
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SG&A as a percentage of gross profit was 67.8% for the three months ended June 30, 2026 compared to 68.3% for
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the same period of 2025. SG&A expense remained flat, including increases in advertising, rent, and facility costs
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due to acquisitions, and offsetting decreases in personnel and other SG&A costs.
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compared to 67.2% for the same period of 2025. Theincrease was primarily related to SG&A growth outpacing
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gross profit growth in the period.
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SG&A as a percentage of gross profit was 70.3% for thesix months ended June 30, 2026 compared to 67.9% for
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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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SG&A expense increased 4.3%, driven by all areas as a result of our acquisition activity.
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growth in the period.
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$2.3 million in storm insurance charges, and$0.4 million in acquisition-related expenses.
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$2.4 million in storm insurance charges, and$0.1 million in acquisition-related expenses.
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store disposals.
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Adjusted SG&A for thesix months ended June 30, 2025 excludes$2.8 million in storm insurance charges,
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Floor plan interest expense increased $13.6 million in thesix months ended June 30, 2026 compared to the same
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primarily due to decreased SG&A as a percentage of revenue and improved profitability of our Financing
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Operations, partially offset by a decrease in gross margin.
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increased profitability of our Financing Operations.
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2025 issuance of senior notes due 2030, offset by a decrease in borrowings on used inventory‑secured revolvers
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Pinewood Technologies Group PLC.
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Other (expense) income, net in thesix months ended June 30, 2026 decreased $80.8 million compared to the same
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and foreign currency remeasurements.
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(1) Investment losses (gains) retrospectively included in adjusted non-GAAP financial measures presented.
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Reworded paragraphs (105)
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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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however consumers desire. As of September 30, 2026, we operated 467 locations representing 59 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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current valuation trends in acquisitions relative to stock price performance. During the firstsix months of 2026, we
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current valuation trends in acquisitions relative to stock price performance. During the first nine months of 2026, we
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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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utilized$252.3 million for capital expenditures investing in our existing business and$264.8 million expanding our
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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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network through acquisitions. We also provided shareholder return in the form of$41.1 million in dividends and
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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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$624.5 million in share repurchases. As of September 30, 2026, we had available liquidity of approximately$1.4
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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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billion, which was comprised of$108.1 million in unrestricted cash,$76.1 million in marketable securities, and$1.3
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availability on our credit facilities.
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billion availability on our credit facilities.
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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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We experienced growth of revenue in 2026 compared to 2025, primarily driven by acquisition growth and supported
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primarily as a result of our increase in SG&A as a percentage of gross profit and equity method investment losses.
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primarily as a result of our increase in SG&A as a percentage of gross profit.
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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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months when operations occurred in both periods. For example, a store acquired in August 2025 would be included
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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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in same store operating data beginning in September 2026, 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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New vehicle revenue for the three months ended June 30, 2026 increased 2.7% compared to the same period of
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New vehicle revenue for the three months ended September 30, 2026 increased 1.6% compared to the same
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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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Same store new vehicle gross profit per unit decreased 6.0%, driven bya decrease in new vehicle gross profit
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revenue generated from the sales of new vehicles, decreased $352 to$4,812.
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revenue generated from the sales of new vehicles, decreased $212 to$4,604.
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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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decreased 3.6% due toa decrease in unit volume of 3.8% anda decrease in average selling prices of 0.4%.
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Same store new vehicle gross profit per unit decreased 9.5%, driven bya decrease in new vehicle gross profit
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Same store new vehicle gross profit per unit decreased 8.2%, driven bya decrease in new vehicle gross profit
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revenue generated from the sales of new vehicles, decreased $249 to$4,831.
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revenue generated from the sales of new vehicles, decreased $234 to$4,758.
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Used vehicle retail revenue for the three months ended June 30, 2026 increased 1.4% compared to the same
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Used vehicle retail revenue for the three months ended September 30, 2026 increased 4.8% compared to the same
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of 2025 driven by acquisition activity and supported by same store performance. On a same store basis, used
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period of 2025 driven by acquisition activity and supported by same store performance. On a same store basis,
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generated from the sales of retail used vehicles, increased $138 to$3,621.
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generated from the sales of retail used vehicles, increased $125 to$3,550.
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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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used vehicle retail sales increased 0.9% due toan increase in average selling prices of 3.9%, offset bya decrease
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decrease in unit volume of 2.5%. Total same store used vehicle retail gross profit per unit, which includes the
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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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finance and insurance revenue generated from the sales of used retail vehicles, decreased $7 to$3,438.
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generated from the sales of used retail vehicles, increased $37 to$3,477.
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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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Total finance and insurance income decreased 4.5% in the three months ended September 30, 2026 compared to
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period of 2025, driven by same store performance, offset by acquisition activity. Same store finance and insurance
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offset by acquisition activity. Same store finance and insurance revenues decreased 8.1%. On a same store basis,
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revenues decreased 4.4%. On a same store basis, our finance and insurance revenue per retail unit decreased $4
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our finance and insurance revenue per retail unit decreased $85 to$1,736.
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Total finance and insurance income decreased 1.6% in thesix months ended June 30, 2026 compared to the same
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Total finance and insurance income decreased 2.6% in thenine months ended September 30, 2026 compared to
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same period of 2025, driven by same store performance, offset by acquisition activity. Same store finance and
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the same period of 2025, driven by same store performance, offset by acquisition activity. Same store finance and
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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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insurance revenues decreased 5.7%. On a same store basis, our finance and insurance revenue per retail unit
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Same store aftersales gross profit increased 3.1%. This increase was primarily due to increased volumes of
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Same store aftersales gross profit increased 2.4%. This increase was primarily due to increased volume of warranty
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customer pay and warranty transactions. Overall same store aftersales gross margins increased 120 bps, primarily
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transactions. Overall same store aftersales gross margins increased 100 bps, primarily as a result ofincreased
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as a result ofincreased customer pay gross margin of 110 bps andincreased warranty gross margin of 150 bps.
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warranty gross margin of 240 bps.
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2025, driven by same store performance and supported by acquisition activity. Same store aftersales revenue
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period of 2025, driven by same store performance and supported by acquisition activity. Same store aftersales
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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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revenue increased 1.8%, driven byan increase in customer pay revenues of 1.8% andan increase inwarranty
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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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Same store aftersales gross profit increased 3.8%. This increase was primarily due to increased volume of
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increased customer pay margins of 110 bps andincreased warranty gross margins of 100 bps.
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increased customer pay margins of 80 bps andincreased warranty gross margins of 150 bps.
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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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Financing operations recorded higher income in the three months ended September 30, 2026 compared to the
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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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same period of 2025, primarily due to the increased interest income resulting from the growth of the portfolio and a
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Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
unit volume of 2.7% anda decrease in average selling prices of 0.4%.
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period of 2025 driven by acquisition activity and supported by same store performance. On a same store basis,
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portfolio as well as improved execution of our collateral management team.
Current report — wording carried from elsewhere
improved operational performance and economies of scale.
Current report — wording carried from elsewhere
decreased borrowings on used inventory‑secured revolvers compared to the same period of 2025, partially offset by
Current report — wording carried from elsewhere
an increase from our September 2025 issuance of senior notes due 2030.
Current report — wording carried from elsewhere
credit facility and in communications with our Board concerning financial performance. These measures should not
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
margins of 80 bps. Total same store new vehicle gross profit per unit, which includes the finance and insurance
Previous report — wording carried elsewhere
2025, driven by same store performance and supported by acquisition activity.
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compared to the same period of 2025.