SONIC AUTOMOTIVE INC

Previous wording

Unless otherwise noted, all discussion of increases or decreases are for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024. The following discussion of Franchised Dealerships Segment new vehicles, used vehicles, wholesale vehicles, parts, service and collision repair, and finance, insurance and other, net is on a same store basis, except where otherwise noted. All currently operating franchised dealership stores are included within the same store group as of the first full month following the first anniversary of the store’s opening or acquisition. The following discussion of EchoPark Segment used vehicles, wholesale vehicles, and finance, insurance and other, net is on a reported basis, except where otherwise noted. All currently operating EchoPark stores in a local geographic market are included within the same market group as of the first full month following the first anniversary of the market’s opening or acquisition. The following discussion of Powersports Segment new vehicles, used vehicles, wholesale vehicles, parts, service and collision repair, and finance, insurance and other, net is on a reported basis, except where otherwise noted. All currently operating stores in the Powersports Segment are included within the same store group as of the first full month following the first anniversary of the store’s opening or acquisition.

Current wording

Unless otherwise noted, all discussion of increases or decreases are for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024. The following discussion of Franchised Dealerships Segment new vehicles, used vehicles, wholesale vehicles, parts, service and collision repair, and finance, insurance and other, net is on a same store basis, except where otherwise noted. All currently operating franchised dealership stores are included within the same store group as of the first full month following the first anniversary of the store’s opening or acquisition. The following discussion of EchoPark Segment used vehicles, wholesale vehicles, and finance, insurance and other, net is on a reported basis, except where otherwise noted. All currently operating EchoPark stores in a local geographic market are included within the same market group as of the first full month following the first anniversary of the market’s opening or acquisition. The following discussion of Powersports Segment new vehicles, used vehicles, wholesale vehicles, parts, service and collision repair, and finance, insurance and other, net is on a reported basis, except where otherwise noted. All currently operating stores in the Powersports Segment are included within the same store group as of the first full month following the first anniversary of the store’s opening or acquisition.

Previous wording

We are one of the largest automotive retailers in the U.S. (as measured by reported total revenue). As a result of the way we manage our business, we had three reportable segments as of June 30, 2025: (1) the Franchised Dealerships Segment; (2) the EchoPark Segment; and (3) the Powersports Segment. For management and operational reporting purposes, we group certain businesses together that share management and inventory (principally used vehicles) into “stores.” As of June 30, 2025, we operated 111 stores in the Franchised Dealerships Segment, 18 stores in the EchoPark Segment and 14 stores in the Powersports Segment. The Franchised Dealerships Segment consists of 136 new vehicle franchises (representing 25 different brands of cars and light trucks) and 16 collision repair centers in 18 states. The EchoPark Segment consists of 18 stores in 10 states. The Powersports Segment consists of 41 franchises at 14 locations (11 full-service dealerships and three authorized retail outlets) in three states.

Current wording

We are one of the largest automotive retailers in the U.S. (as measured by reported total revenue). As a result of the way we manage our business, we had three reportable segments as of September 30, 2025: (1) the Franchised Dealerships Segment; (2) the EchoPark Segment; and (3) the Powersports Segment. For management and operational reporting purposes, we group certain businesses together that share management and inventory (principally used vehicles) into “stores.” As of September 30, 2025, we operated 111 stores in the Franchised Dealerships Segment, 18 stores in the EchoPark Segment and 14 stores in the Powersports Segment. The Franchised Dealerships Segment consists of 137 new vehicle franchises (representing 25 different brands of cars and light trucks) and 16 collision repair centers in 18 states. The EchoPark Segment consists of 18 stores in 10 states. The Powersports Segment consists of 41 franchises at 14 locations (11 full-service dealerships and three authorized retail outlets) in three states.

Previous wording

The U.S. retail automotive industry’s total new vehicle (retail and fleet combined) seasonally adjusted annual rate of unit sales volume (the “total new vehicle SAAR”) increased 2% and 3% for the three and six months ended June 30, 2025, respectively, to approximately 16.0 million vehicles for both the three and six months ended June 30, 2025, compared to approximately 15.7 million and 15.6 million vehicles for the three and six months ended June 30, 2024, respectively, according to the Power Information Network (“PIN”) from J.D. Power. We currently estimate the 2025 new vehicle industry volume will be between 15.6 million vehicles (a decrease of 3% compared to 2024) and 16.3 million vehicles (an increase of 1% compared to 2024). The effects of changes in trade policy and the imposition of tariffs, interest rates, changes in consumer confidence, availability of consumer financing, manufacturer inventory production levels, incentive levels from automotive manufacturers or shifts in such levels, or timing of consumer demand as a result of economic conditions, natural disasters or other unforeseen circumstances could cause the actual 2025 new vehicle industry volume to vary from expectations. Many factors, including brand and geographic concentrations as well as the industry sales mix between retail and fleet new vehicle unit sales volume, have caused our past results to differ from the industry’s overall trend. Our new vehicle sales strategy focuses on our retail new vehicle sales (as opposed to fleet new vehicle sales) and, as a result, we believe it is appropriate to compare our retail new vehicle unit sales volume to the industry retail new vehicle seasonally adjusted annual rate of unit sales volume (the “retail new vehicle SAAR”) (which excludes fleet new vehicle sales). According to PIN from J.D. Power, the retail new vehicle SAAR increased 6% and 4% to approximately 13.4 million and 13.2 million vehicles for the three and six months ended June 30, 2025, respectively, from approximately 12.7 million vehicles for both the three and six months ended June 30, 2024. We believe some of the increase in new vehicle SAAR during the three and six months ended June 30, 2025 is attributable to advanced purchases of new vehicles ahead of changes in U.S. tariff policy announced on April 2, 2025.

Current wording

The U.S. retail automotive industry’s total new vehicle (retail and fleet combined) seasonally adjusted annual rate of unit sales volume (the “total new vehicle SAAR”) increased 4% and 3% for the three and nine months ended September 30, 2025, respectively, to approximately 16.3 million and 16.1 million vehicles for the three and nine months ended September 30, 2025, respectively, compared to approximately 15.6 million vehicles for both the three and nine months ended September 30, 2024, according to the Power Information Network (“PIN”) from J.D. Power. We currently estimate the 2025 new vehicle industry volume will be between 15.6 million vehicles (a decrease of 3% compared to 2024) and 16.3 million vehicles (an increase of 1% compared to 2024). The effects of changes in trade policy and the imposition of tariffs, interest rates, changes in consumer confidence, availability of consumer financing, manufacturer inventory production levels, incentive levels from automotive manufacturers or shifts in such levels, or timing of consumer demand as a result of economic conditions, natural disasters or other unforeseen circumstances could cause the actual 2025 new vehicle industry volume to vary from expectations. Many factors, including brand and geographic concentrations as well as the industry sales mix between retail and fleet new vehicle unit sales volume, have caused our past results to differ from the industry’s overall trend. Our new vehicle sales strategy focuses on our retail new vehicle sales (as opposed to fleet new vehicle sales) and, as a result, we believe it is appropriate to compare our retail new vehicle unit sales volume to the industry retail new vehicle seasonally adjusted annual rate of unit sales volume (the “retail new vehicle SAAR”) (which excludes fleet new vehicle sales). According to PIN from J.D. Power, the retail new vehicle SAAR increased 5% and 4% to approximately 13.6 million and 13.3 million vehicles for the three and nine months ended September 30, 2025, respectively, from approximately 12.9 million and 12.8 million vehicles for the three and nine months ended September 30, 2024, respectively. We believe some of the increase in new vehicle SAAR during the three and nine months ended September 30, 2025 is attributable to advanced purchases of new vehicles ahead of changes in U.S. tariff policy announced on April 2, 2025 and purchase of electric vehicles ahead of expiration of the federal tax credit in September 2025.

Previous wording

On June 19, 2024, CDK Global (“CDK”), a third-party provider of certain information systems, notified us that CDK had suspended certain systems used by us in response to a cybersecurity incident impacting CDK (the “CDK outage”). This outage adversely affected our business and results of operations during the second and third quarters of 2024. In connection with the CDK outage, we recognized $10.0 million in pre-tax income from cyber insurance proceeds during the three months ended December 31, 2024, $30.0 million in pre-tax income from cyber insurance proceeds during the three months ended March 31, 2025, and $10.0 million in pre-tax income from cyber insurance proceeds during the three months ended June 30, 2025, which were each recorded as a reduction to selling, general and administrative expenses.

Current wording

On June 19, 2024, CDK Global (“CDK”), a third-party provider of certain information systems, notified us that CDK had suspended certain systems used by us in response to a cybersecurity incident impacting CDK (the “CDK outage”). This outage adversely affected our business and results of operations during the second and third quarters of 2024. In connection with the CDK outage, we recognized $10.0 million in pre-tax income from cyber insurance proceeds during the three months ended December 31, 2024 and $40.0 million in pre-tax income from cyber insurance proceeds during the nine months ended September 30, 2025, which were each recorded as a reduction to selling, general and administrative expenses.

Previous wording

Same store retail new vehicle revenue increased 6% and 10% during the three and six months ended June 30, 2025, driven primarily by a 5% and 8% increase in retail new vehicle unit sales volume, respectively, coupled with a 1% and 2% increase in retail new vehicle average selling price, respectively. Retail new vehicle gross profit decreased 1% and 5% during the three and six months ended June 30, 2025, respectively, due primarily to increased price competition as a result of increasing levels of available inventory and higher inventory invoice cost, which combined to drive lower retail new vehicle gross profit per unit. Retail new vehicle gross profit per unit decreased $212 per unit, or 6%, to $3,391 per unit during the three months ended June 30, 2025 and decreased $425 per unit, or 12%, to $3,245 per unit during the six months ended June 30, 2025. On a trailing quarter cost of sales basis, our reported Franchised Dealerships Segment new vehicle inventory days’ supply was approximately 54 days as of June 30, 2025, compared to 59 days as of June 30, 2024.

Current wording

Same store retail new vehicle revenue increased 13% and 11% during the three and nine months ended September 30, 2025, driven primarily by an 8% increase in retail new vehicle unit sales volume for both the three and nine months ended September 30, 2025, driven in part by increase and in consumer demand for electric vehicles ahead of expiration of the federal tax credit in September 30, 2025, coupled with a 5% and 3% increase in retail new vehicle average selling price, respectively. Retail new vehicle gross profit remained flat and decreased 3% during the three and nine months ended September 30, 2025, respectively, due primarily to increased price competition as a result of increasing levels of available inventory and higher inventory invoice cost, which combined to drive lower retail new vehicle gross profit per unit. Retail new vehicle gross profit per unit decreased $215 per unit, or 7%, to $2,852 per unit during the three months ended September 30, 2025 and decreased $352 per unit, or 10%, to $3,114 per unit during the nine months ended September 30, 2025. On a trailing quarter cost of sales basis, our reported Franchised Dealerships Segment new vehicle inventory days’ supply was approximately 51 days as of September 30, 2025, compared to 57 days as of September 30, 2024.

Previous wording

Same store retail used vehicle revenue increased 1% during both the three and six months ended June 30, 2025, driven primarily by a 5% and 4% increase in retail used vehicle average selling prices, respectively, partially offset by a 4% and 3% decrease in retail used vehicle sales volume, respectively. Retail used vehicle gross profit decreased 1% and 3% during the three and six months ended June 30, 2025, respectively, primarily due to lower retail used vehicle sales volume. Retail used vehicle gross profit per unit increased $49 per unit, or 3%, to $1,590 per unit during the three months ended June 30, 2025 and remained flat at $1,573 per unit during the six months ended June 30, 2025. Same store wholesale vehicle gross loss worsened by approximately $0.3 million, to a gross loss of approximately $0.8 million during the three months ended June 30, 2025, and worsened by approximately $1.0 million, to a gross loss of approximately $1.7 million during the six months ended June 30, 2025, due primarily to a $49 per unit, or 60%, increase in wholesale vehicle gross loss per unit, and a $83 per unit, or 148%, increase in wholesale vehicle gross loss per unit, respectively, as a result of changes in pricing and demand for vehicles at wholesale auction. We generally focus on maintaining Franchised Dealerships Segment used vehicle inventory days’ supply in the 25- to 35-day range, which may fluctuate seasonally, in order to limit our exposure to market pricing volatility. On a trailing quarter cost of sales basis, our reported Franchised Dealerships Segment used vehicle inventory days’ supply was approximately 35 and 30 days as of June 30, 2025 and 2024, respectively.

Current wording

Same store retail used vehicle revenue increased 10% and 4% during the three and nine months ended September 30, 2025, respectively, driven primarily by a 6% and 5% increase in retail used vehicle average selling prices, respectively, coupled with a 3% increase in retail used vehicle sales volume in the three months ended September 30, 2025, and partially offset by a 1% decrease in retail used vehicle sales volume in the nine months ended September 30, 2025. Retail used vehicle gross profit increased 13% and 2% during the three and nine months ended September 30, 2025, respectively, primarily due to higher retail used vehicle sales volume in the three months ended September 30, 2025 and higher retail used vehicle gross profit per unit. Retail used vehicle gross profit per unit increased $136 per unit, or 10%, to $1,530 per unit during the three months ended September 30, 2025 and increased $47 per unit, or 3%, to $1,565 per unit during the nine months ended September 30, 2025. Same store wholesale vehicle gross loss worsened by approximately $1.4 million, to a gross loss of approximately $2.6 million during the three months ended September 30, 2025, and worsened by approximately $2.7 million, to a gross loss of approximately $4.3 million during the nine months ended September 30, 2025, due primarily to a $263 per unit, or 113%, worsening of wholesale vehicle gross loss per unit, and a $135 per unit, or 121%, worsening of wholesale vehicle gross loss per unit, respectively, as a result of changes in pricing and demand for vehicles at wholesale auction. We generally focus on maintaining Franchised Dealerships Segment used vehicle inventory days’ supply in the 25- to 35-day range, which may fluctuate seasonally, in order to limit our exposure to market pricing volatility. On a trailing quarter cost of sales basis, our reported Franchised Dealerships Segment used vehicle inventory days’ supply was approximately 34 days as of both September 30, 2025 and 2024.

Previous wording

Same store Fixed Operations revenue increased 10% and 8% during the three and six months ended June 30, 2025, respectively, driven primarily by increased service capacity as a result of additional technician headcount, and higher parts and labor costs that were passed along to consumers. Same store Fixed Operations gross profit increased 12% and 10% during the three and six months ended June 30, 2025, respectively, driven primarily by higher warranty revenue contribution and higher warranty gross margin. Same store Fixed Operations gross margin increased 90 basis points, to 51.3%, during the three months ended June 30, 2025, and increased 80 basis points, to 51.0%, during the six months ended June 30, 2025, primarily driven by an increase in warranty revenue contribution and higher warranty gross margin.

Current wording

Same store Fixed Operations revenue increased 6% and 7% during the three and nine months ended September 30, 2025, respectively, driven primarily by increased service capacity as a result of additional technician headcount, and higher parts and labor costs that were passed along to consumers. Same store Fixed Operations gross profit increased 8% and 9% during the three and nine months ended September 30, 2025, respectively, driven primarily by higher warranty revenue contribution and higher warranty gross margin. Same store Fixed Operations gross margin increased 100 basis points, to 51.2%, during the three months ended September 30, 2025, and increased 90 basis points, to 51.1%, during the nine months ended September 30, 2025, primarily driven by an increase in warranty revenue contribution and higher warranty gross margin.

Previous wording

Same store F&I revenue increased 15% and 12% during the three and six months ended June 30, 2025, respectively, driven by a 14% and 9% increase in F&I gross profit per retail unit, respectively, and a 1% and 3% increase in retail new and used vehicle unit sales volume, respectively. Same store F&I gross profit per retail unit increased $335 per unit, or 14%, to $2,718 per unit during the three months ended June 30, 2025, and increased $213 per unit, or 9%, to $2,580 per unit during the six months ended June 30, 2025.

Current wording

Same store F&I revenue increased 13% and 12% during the three and nine months ended September 30, 2025, respectively, driven by a 7% and 8% increase in F&I gross profit per retail unit, respectively, and a 5% and 3% increase in retail new and used vehicle unit sales volume, respectively. Same store F&I gross profit per retail unit increased $158 per unit, or 7%, to $2,500 per unit during the three months ended September 30, 2025, and increased $195 per unit, or 8%, to $2,554 per unit during the nine months ended September 30, 2025.

Previous wording

Reported total revenues decreased 2% and 1% during the three and six months ended June 30, 2025, respectively, driven primarily by a 5% and 6% decrease in average retail used vehicle unit selling prices, respectively, partially offset by a 3% and 4% increase in total vehicle unit sales volume, respectively. Reported total gross profit increased 22% during both the three and six months ended June 30, 2025, respectively, driven primarily by a 47% and 23% increase in used vehicles gross profit, respectively.

Current wording

Reported total revenues decreased 4% and 2% during the three and nine months ended September 30, 2025, respectively, driven primarily by a 4% decrease in total vehicle unit sales volume in the three months ended September 30, 2025, and a 4% decrease in average selling price per used retail unit, partially offset by a 1% increase in total vehicle unit sales volume in the nine months ended September 30, 2025. Reported total gross profit decreased 1% and increased 14% during the three and nine months ended September 30, 2025, respectively, driven primarily by a 1% decrease in combined used vehicles and F&I gross profit and a 15% increase in F&I gross profit, respectively.

Previous wording

Same market total revenues decreased 2% and remained flat during the three and six months ended June 30, 2025, respectively, attributable to a 5% and 6% decrease in average selling price per used retail unit, respectively, partially offset by a 3% and 5% increase in total vehicle unit sales volume, respectively. Same market total gross profit increased 19% during both the three and six months ended June 30, 2025, respectively, driven by a 19% and 15% increase in combined retail used vehicle and F&I gross profit per unit, respectively and a 3% and 5% increase in total vehicle unit sales volume, respectively.

Current wording

Same market total revenues decreased 4% and 1% during the three and nine months ended September 30, 2025, respectively, attributable to a 4% decrease in total vehicle unit sales volume in the three months ended September 30, 2025, and a 4% decrease in average selling price per used retail unit, partially offset by a 2% increase in total vehicle unit sales volume, in the nine months ended September 30, 2025. Same market total gross profit decreased 4% and increased 11% during the three and nine months ended September 30, 2025, respectively, primarily driven by a 4% decrease in total vehicle unit sales volume, and a 12% increase in combined retail used vehicle and F&I gross profit per unit.

Previous wording

Reported wholesale vehicle gross loss worsened by approximately $0.5 million and $0.2 million during the three and six months ended June 30, 2025, respectively, primarily due to a 380% and 25% decline in wholesale vehicle gross loss per unit, respectively, partially offset by a 19% and 12% increase in wholesale vehicle unit sales volume during the three and six months ended June 30, 2025, respectively. We generally focus on maintaining EchoPark Segment used vehicle inventory days’ supply in the 30- to 40-day range, which may fluctuate seasonally, in order to limit our exposure to market pricing volatility. On a trailing quarter cost of sales basis, our reported EchoPark Segment used vehicle inventory days’ supply was approximately 41 and 38 days as of June 30, 2025 and 2024, respectively.

Current wording

Reported wholesale vehicle gross loss worsened by approximately $0.5 million and $0.6 million during the three and nine months ended September 30, 2025, respectively, primarily due to a decline in wholesale vehicle gross loss per unit during both the three and nine months ended September 30, 2025. We generally focus on maintaining EchoPark Segment used vehicle inventory days’ supply in the 30- to 40-day range, which may fluctuate seasonally, in order to limit our exposure to market pricing volatility. On a trailing quarter cost of sales basis, our reported EchoPark Segment used vehicle inventory days’ supply was approximately 37 and 33 days as of September 30, 2025 and 2024, respectively.

Previous wording

Reported retail new vehicle revenue increased by 24% and 23% during the during the three and six months ended June 30, 2025, respectively, primarily due to a 17% increase in retail new vehicle unit sales volume during both the three and six months ended June 30, 2025, coupled with a 6% and 5% increase in retail new vehicle average selling prices during the three and six months ended June 30, 2025, respectively. Retail new vehicle gross profit increased 34% and 27% during the three and six months ended June 30, 2025, respectively, as a result of the higher retail new vehicle unit sales volume. Retail new vehicle gross profit per unit increased $362 per unit, or 15%, to $2,828 per unit for the three months ended June 30, 2025 and increased $214 per unit, or 8%, to $2,767 per unit for the six months ended June 30, 2025.

Current wording

Reported retail new vehicle revenue increased by 44% and 32% during the during the three and nine months ended September 30, 2025, respectively, primarily due to a 32% and 23% increase in retail new vehicle unit sales volume during the three and nine months ended September 30, 2025, respectively, coupled with a 9% and 8% increase in retail new vehicle average selling prices during the three and nine months ended September 30, 2025, respectively. Retail new vehicle gross profit increased 49% and 37% during the three and nine months ended September 30, 2025, respectively, as a result of the higher retail new vehicle unit sales volume and higher gross profit per unit. Retail new vehicle gross profit per unit increased $406 per unit, or 12%, to $3,655 per unit for the three months ended September 30, 2025 and increased $313 per unit, or 11%, to $3,133 per unit for the nine months ended September 30, 2025.

Previous wording

Same store retail new vehicle revenue increased 13% and 11% during the three and six months ended June 30, 2025, respectively, driven by a 7% and 6% increase in retail new vehicle unit sales volume and a 6% and 5% increase in retail new vehicle average selling price during the three and six months ended June 30, 2025, respectively. Retail new vehicle gross profit increased 19% and 11% during the three and six months ended June 30, 2025, respectively, as a result of the increase in retail new vehicle unit sales volume and an increase in gross profit per unit. Retail new vehicle gross profit per unit increased $282 per unit, or 11%, to $2,771 for the three months ended June 30, 2025 and increased $132 per unit, or 5%, to $2,696 per unit for the six months ended June 30, 2025, due primarily to higher inventory invoice costs. On a trailing quarter cost of sales basis, our reported Powersports Segment new vehicle inventory days’ supply was approximately 135 and 187 days as of June 30, 2025 and 2024, respectively, varying based on manufacturer production levels and consumer demand.

Current wording

Same store retail new vehicle revenue increased 33% and 20% during the three and nine months ended September 30, 2025, respectively, driven by a 21% and 11% increase in retail new vehicle unit sales volume, respectively, coupled with an 11% and 8% increase in retail new vehicle average selling price during the three and nine months ended September 30, 2025, respectively. Retail new vehicle gross profit increased 38% and 22% during the three and nine months ended September 30, 2025, respectively, as a result of the increase in retail new vehicle unit sales volume and an increase in gross profit per unit. Retail new vehicle gross profit per unit increased $430 per unit, or 13%, to $3,693 for the three months ended September 30, 2025 and increased $278 per unit, or 10%, to $3,112 per unit for the nine months ended September 30, 2025. On a trailing quarter cost of sales basis, our reported Powersports Segment new vehicle inventory days’ supply was approximately 75 and 121 days as of September 30, 2025 and 2024, respectively, varying based on manufacturer production levels and consumer demand.

Previous wording

Reported retail used vehicle revenue increased 57% and 62% during the three and six months ended June 30, 2025, respectively, primarily driven by a 57% and 50% increase in retail used vehicle unit sales volume, coupled with a 1% and 8% increase in used unit prices for the three and six months ended June 30, 2025, respectively. Retail used vehicle gross profit increased 30% and 25% during the three and six months ended June 30, 2025, respectively, as a result of higher retail used vehicle unit sales volume. Retail used vehicle gross profit per unit decreased $409 per unit, or 17%, to $2,014 per unit for the three months ended June 30, 2025, and decreased $383 per unit, or 17%, to $1,935 per unit for the six months ended June 30, 2025, primarily due to higher inventory costs.

Current wording

Reported retail used vehicle revenue increased 91% and 77% during the three and nine months ended September 30, 2025, respectively, primarily driven by an 81% and 64% increase in retail used vehicle unit sales volume, coupled with a 6% and 8% increase in used unit prices for the three and nine months ended September 30, 2025, respectively. Retail used vehicle gross profit increased 32% and 30% during the three and nine months ended September 30, 2025, respectively, as a result of higher retail used vehicle unit sales volume. Retail used vehicle gross profit per unit decreased $750 per unit, or 27%, to $2,048 per unit for the three months ended September 30, 2025, and decreased $545 per unit, or 21%, to $1,992 per unit for the nine months ended September 30, 2025, primarily due to higher inventory costs.

Previous wording

Same store used vehicle revenue increased 43% and 44%during thethree and six months ended June 30, 2025, respectively, primarily driven by a 46% and 37% increase in retail used vehicle unit sales volume forthe three and six months ended June 30, 2025, respectively. Retail used vehicle gross profit increased 22% and 14% during the three and six months ended June 30, 2025, respectively. Retail used vehicle gross profit per unit decreased $415 per unit, or 17%, to $2,043, for the three months ended June 30, 2025 and decreased $387 per unit, or 17%, to $1,940 per unit for the six months ended June 30, 2025, primarily due to higher inventory costs. On a trailing quarter cost of sales basis, our reported Powersports Segment used vehicle inventory days’ supply was approximately 102 and 96 days as of June 30, 2025 and 2024, respectively.

Current wording

Same store used vehicle revenue increased 88% and 67%during thethree and nine months ended September 30, 2025, respectively, primarily driven by a 77% and 56% increase in retail used vehicle unit sales volume forthe three and nine months ended September 30, 2025, respectively. Retail used vehicle gross profit increased 29% and 22% during the three and nine months ended September 30, 2025, respectively. Retail used vehicle gross profit per unit decreased $771 per unit, or 27%, to $2,041, for the three months ended September 30, 2025 and decreased $558 per unit, or 22%, to $1,993 per unit for the nine months ended September 30, 2025, primarily due to higher inventory costs. On a trailing quarter cost of sales basis, our reported Powersports Segment used vehicle inventory days’ supply was approximately 45 and 59 days as of September 30, 2025 and 2024, respectively.

Previous wording

Reported Fixed Operations revenue increased 9% and 7% during the three and six months ended June 30, 2025, respectively, and Fixed Operations gross profit increased 9% during both the three and six months ended June 30, 2025, driven primarily by higher repair order volume as a result of acquisitions. Fixed Operations gross margin increased 30 basis points to 47.1% and increased 70 basis points to 47.7% during the three and six months ended June 30, 2025, respectively, driven primarily by an increase in customer pay and warranty revenue contribution and customer pay gross margin.

Current wording

Reported Fixed Operations revenue increased 18% and 13% during the three and nine months ended September 30, 2025, respectively, and Fixed Operations gross profit increased 21% and 15% during the three and nine months ended September 30, 2025, driven primarily by higher repair order volume as a result of acquisitions. Fixed Operations gross margin increased 80 basis points to 46.7% and increased 70 basis points to 47.1% during the three and nine months ended September 30, 2025, respectively, driven primarily by an increase in warranty and internal, sublet and other revenue contribution and customer pay gross margin.

Previous wording

Same store Fixed Operations revenue increased 2% and Fixed Operations gross profit increased 5% for the three months ended June 30, 2025, driven primarily by higher repair order volume during the quarter. Same store Fixed Operations revenue decreased 3% and Fixed Operations gross profit remained flat during the six months ended June 30, 2025, driven by lower repair order volume for the year-to-date period. Fixed Operations gross margin increased 70 basis points, to 48% and increased 160 basis points to 49% during the three and six months ended June 30, 2025, respectively, driven primarily by an increase in customer pay revenue contribution and customer pay gross margin.

Current wording

Same store Fixed Operations revenue increased 15% and Fixed Operations gross profit increased 18% for the three months ended September 30, 2025, driven primarily by higher repair order volume during the quarter. Same store Fixed Operations revenue increased 8% and Fixed Operations gross profit increased 10% during the nine months ended September 30, 2025, driven by higher repair order volume for the year-to-date period. Fixed Operations gross margin increased 90 basis points, to 47% and increased 110 basis points to 48% during the three and nine months ended September 30, 2025, respectively, driven primarily by an increase in warranty and internal, sublet and other revenue contribution and customer pay gross margin.

Previous wording

The following table depicts the breakdown of our Franchised Dealerships Segment new vehicle revenues by brand for the three and six months ended June 30, 2025 and 2024:

Current wording

The following table depicts the breakdown of our Franchised Dealerships Segment new vehicle revenues by brand for the three and nine months ended September 30, 2025 and 2024:

Previous wording

Retail new vehicle revenue increased 6%, due primarily to a 5% increase in retail new vehicle unit sales volume and a 1% increase in retail new vehicle average selling prices. Retail new vehicle gross profit decreased approximately $0.7 million, or 1%, as a result of lower retail new vehicle gross profit per unit, offset partially by higher retail new vehicle unit sales volume. Retail new vehicle gross profit per unit decreased $212 per unit, or 6%, to $3,391 per unit, due primarily to increased price competition as a result of higher levels of available inventory than in the prior year period and higher inventory invoice costs.

Current wording

Retail new vehicle revenue increased 13%, due primarily to a 7% increase in retail new vehicle unit sales volume, driven in part by an increase in consumer demand for electric vehicles ahead of expiration of the federal tax credit in September 2025, and a 5% increase in retail new vehicle average selling prices. Retail new vehicle gross profit remained flat. Retail new vehicle gross profit per unit decreased $215 per unit, or 7%, to $2,852 per unit, due primarily to increased price competition as a result of higher levels of available inventory than in the prior year period and higher inventory invoice costs.

Previous wording

Retail new vehicle revenue increased 10%, due primarily to an 8% increase in retail new vehicle unit sales volume and a 2% increase in retail new vehicle average selling prices. Retail new vehicle gross profit decreased approximately $8.8 million, or 5%, as a result of lower retail new vehicle gross profit per unit, offset partially by higher retail new vehicle unit sales volume. Retail new vehicle gross profit per unit decreased $425 per unit, or 12%, to $3,245 per unit, due primarily to increased price competition as a result of higher levels of available inventory than in the prior year period and higher inventory invoice costs.

Current wording

Retail new vehicle revenue increased 11%, due primarily to an 8% increase in retail new vehicle unit sales volume and a 3% increase in retail new vehicle average selling prices. Retail new vehicle gross profit decreased approximately $8.9 million, or 3%, as a result of lower retail new vehicle gross profit per unit, offset partially by higher retail new vehicle unit sales volume. Retail new vehicle gross profit per unit decreased $352 per unit, or 10%, to $3,114 per unit, due primarily to increased price competition as a result of higher levels of available inventory than in the prior year period and higher inventory invoice costs.

Previous wording

Retail used vehicle revenue increased approximately $10.4 million, or 1%, driven primarily by an 4% increase in retail used vehicle average selling prices, partially offset by a 3% decrease in retail used vehicle unit sales volume. Retail used vehicle gross profit decreased approximately $2.3 million, or 3%, driven primarily by a 3% decrease in retail used vehicle unit sales volume during the six months ended June 30, 2025 and flat retail used vehicle gross profit per unit.

Current wording

Retail used vehicle revenue increased approximately $75.5 million, or 4%, driven primarily by an 5% increase in retail used vehicle average selling prices, partially offset by a 1% decrease in retail used vehicle unit sales volume. Retail used vehicle gross profit increased approximately $2.3 million, or 2%, driven primarily by a 3% increase in retail used vehicle gross profit per unit, offset partially by a 1% decrease in retail used vehicle unit sales volume during the nine months ended September 30, 2025.

Previous wording

Wholesale vehicle revenue increased approximately $8.6 million, or 18%, driven primarily by a 17% increase in wholesale vehicle unit sales volume coupled with a 1% increase in wholesale vehicle revenue per unit during the three months ended June 30, 2025. Wholesale vehicle gross profit (loss) worsened by approximately $0.3 million, driven primarily by a $49 per unit worsening of wholesale vehicle gross profit (loss) per unit during the second quarter of 2025.

Current wording

Wholesale vehicle revenue increased approximately $6.7 million, or 16%, driven primarily by a 10% increase in wholesale vehicle unit sales volume coupled with a 5% increase in wholesale vehicle revenue per unit during the three months ended September 30, 2025. Wholesale vehicle gross loss worsened by approximately $1.4 million, driven primarily by a $263 per unit worsening of wholesale vehicle gross loss per unit during the third quarter of 2025.

Previous wording

Wholesale vehicle revenue increased approximately $14.7 million, or 15%, driven primarily by a 19% increase in wholesale vehicle unit sales volume, offset slightly by a 3% decrease in wholesale vehicle revenue per unit during the first six months of 2025. Wholesale vehicle gross profit (loss) worsened approximately $1.0 million, driven primarily by a $83 per unit worsening of wholesale vehicle gross profit (loss) per unit during the first six months of 2025.

Current wording

Wholesale vehicle revenue increased approximately $21.0 million, or 15%, driven primarily by a 16% increase in wholesale vehicle unit sales volume, offset slightly by a 1% decrease in wholesale vehicle revenue per unit during the nine months ended September 30, 2025. Wholesale vehicle gross loss worsened approximately $2.7 million, driven primarily by a $135 per unit worsening of wholesale vehicle gross loss per unit during the first nine months of 2025.

Previous wording

Fixed Operations revenue increased approximately $45.1 million, or 10%, and Fixed Operations gross profit increased approximately $27.1 million, or 12%. Customer pay gross profit increased approximately $10.2 million, or 9%, warranty gross profit increased approximately $13.1 million, or 34%, wholesale parts gross profit decreased approximately $0.7 million, or 8%, and internal, sublet and other gross profit increased approximately $4.5 million, or 8%. Our Fixed Operations business has benefited from a higher level of vehicle recalls and warranty repairs, as well as additional technician headcount that has driven an increase in customer pay service capacity.

Current wording

Fixed Operations revenue increased approximately $27.5 million, or 6%, and Fixed Operations gross profit increased approximately $18.5 million, or 8%. Customer pay gross profit increased approximately $7.4 million, or 6%, warranty gross profit increased approximately $6.2 million, or 13%, wholesale parts gross profit decreased approximately $0.7 million, or 8%, and internal, sublet and other gross profit increased approximately $5.6 million, or 10%. Our Fixed Operations business has benefited from a higher level of vehicle recalls and warranty repairs, as well as additional technician headcount that has driven an increase in customer pay service capacity.

Previous wording

Fixed Operations revenue increased approximately $67.8 million, or 8%, and Fixed Operations gross profit increased approximately $41.7 million, or 10%. Customer pay gross profit increased approximately $11.9 million, or 5%, warranty gross profit increased approximately $27.7 million, or 36%, wholesale parts gross profit decreased approximately $1.7 million, or 10%, and internal, sublet and other gross profit increased approximately $3.8 million, or 3%. Our Fixed Operations business has benefited from a higher level of vehicle recalls and warranty repairs, as well as additional technician headcount that has driven an increase in customer pay service capacity.

Current wording

Fixed Operations revenue increased approximately $94.8 million, or 7%, and Fixed Operations gross profit increased approximately $60.0 million, or 9%. Customer pay gross profit increased approximately $19.4 million, or 6%, warranty gross profit increased approximately $33.8 million, or 28%, wholesale parts gross profit decreased approximately $2.3 million, or 9%, and internal, sublet and other gross profit increased approximately $9.1 million, or 5%. Our Fixed Operations business has benefited from a higher level of vehicle recalls and warranty repairs, as well as additional technician headcount that has driven an increase in customer pay service capacity.

Previous wording

F&I revenue increased approximately $18.6 million, or 15%, due primarily to a 14% increase in F&I gross profit per retail unit and a 1% increase in total combined retail new and used vehicle unit sales volume. F&I gross profit per retail unit increased $335 per unit, or 14%, to $2,718 per unit, due primarily to higher gross profit per finance contract and service contract, an increase in other aftermarket contract penetration rates, and changes to our F&I product cost structure.

Current wording

F&I revenue increased approximately $15.3 million, or 13%, due primarily to a 7% increase in F&I gross profit per retail unit and a 5% increase in total combined retail new and used vehicle unit sales volume. F&I gross profit per retail unit increased $158 per unit, or 7%, to $2,500 per unit, due primarily to higher gross profit per finance contract and service contract, an increase in other aftermarket contract penetration rates, and changes to our F&I product cost structure.

Previous wording

Finance contract revenue for combined retail new and used vehicles increase 9%, due primarily to a 7% increase in gross profit per finance contract and a 1% increase in finance contract volume. Service contract revenue for combined retail new and used vehicles increased 11%, due primarily to a 5% increase in gross profit per service contract and a 5% increase in service contract volume. Other aftermarket contract revenue for combined retail new and used vehicles increased 2%, primarily to a 3% increase in total contracts, and a 250-basis point increase in the other aftermarket contract penetration rate, offset by a 1% decrease in gross profit per other aftermarket contract.

Current wording

Finance contract revenue for combined retail new and used vehicles increased 14%, due primarily to a 6% increase in gross profit per finance contract and a 7% increase in finance contract volume. Service contract revenue for combined retail new and used vehicles increased 14%, due primarily to a 7% increase in gross profit per service contract and a 7% increase in service contract volume. Other aftermarket contract revenue for combined retail new and used vehicles increased 8%, primarily to a 7% increase in total contracts, a 1% increase in gross profit per other aftermarket contract, and a 240-basis point increase in the other aftermarket contract penetration rate.

Previous wording

F&I revenue increased approximately $28.4 million, or 12%, due primarily to a 9% increase in F&I gross profit per retail unit and a 3% increase in total combined retail new and used vehicle unit sales volume. F&I gross profit per retail unit increased $213 per unit, or 9%, to $2,580 per unit, due primarily to higher gross profit per finance contract and service contract, an increase in other aftermarket contract penetration rates, and changes to our F&I product cost structure.

Current wording

F&I revenue increased approximately $43.6 million, or 12%, due primarily to an 8% increase in F&I gross profit per retail unit and a 3% increase in total combined retail new and used vehicle unit sales volume. F&I gross profit per retail unit increased $195 per unit, or 8%, to $2,554 per unit, due primarily to higher gross profit per finance contract and service contract, an increase in other aftermarket contract penetration rates, and changes to our F&I product cost structure.

Previous wording

Finance contract revenue for combined retail new and used vehicles increased 9%, due primarily to a 6% increase in gross profit per finance contract and a 2% increase in finance contract volume. Service contract revenue for combined retail new and used vehicles increased 10%, due primarily to a 4% increase in service contract volume and a 6% increase in gross profit per service contract. Other aftermarket contract revenue for combined retail new and used vehicles increased 4%, due primarily to a 1% increase in gross profit per other aftermarket contract, a 4% increase in total contracts, and a 140-basis point increase in the other aftermarket contract penetration rate.

Current wording

Finance contract revenue for combined retail new and used vehicles increased 10%, due primarily to a 6% increase in gross profit per finance contract and a 4% increase in finance contract volume. Service contract revenue for combined retail new and used vehicles increased 11%, due primarily to a 6% increase in gross profit per service contract and a 5% increase in service contract volume. Other aftermarket contract revenue for combined retail new and used vehicles increased 5%, due primarily to a a 5% increase in total contracts, a 1% increase in gross profit per other aftermarket contract, and a 190-basis point increase in the other aftermarket contract penetration rate.

Previous wording

Retail used vehicle revenue decreased approximately $21.4 million, due primarily to a 5% decrease in retail used vehicle revenue per unit, offset partially by a 1% increase in retail used vehicle unit sales volume. Combined retail used vehicle gross profit and F&I revenue increased approximately $10.1 million, or 19%, due primarily to an $8.8 million, or 19%, increase in F&I revenue and a$590, or a 19% per unit increase in combined retail used vehicle and F&I gross profit. The increasein combined retail used vehicle and F&I gross profit per unit was due primarily to higher F&I penetration rates, changes to our F&I product cost structure, an improvement in inventory acquisition costs as a result of sourcing a higher percentage of inventory from non-auction sources, and expanding our inventory to include older vehicles, which typically earn a higher gross profit per unit.

Current wording

Retail used vehicle revenue decreased approximately $31.1 million, or 7%, due primarily to an 8% decrease in retail used vehicle unit sales volume, offset partially by a 1% increase in retail used vehicle revenue per unit. Combined retail used vehicle gross profit and F&I revenue decreased approximately $1.5 million, or 3%, due primarily to a 1,404, or 8%, decrease in retail used vehicle unit sales, offset partially by a 5% per unit increase in combined retail used vehicle and F&I gross profit. The increasein combined retail used vehicle and F&I gross profit per unit was due primarily to higher F&I penetration rates, changes to our F&I product cost structure, an improvement in inventory acquisition costs as a result of sourcing a higher percentage of inventory from non-auction sources, and expanding our inventory to include older vehicles, which typically earn a higher gross profit per unit.

Previous wording

Retail used vehicle revenue decreased approximately $20.9 million, or 2%, due primarily to a 6% decrease in retail used vehicle revenue per unit, offset partially by a 4% increase in retail used vehicle unit sales volume. Combined retail used vehicle gross profit and F&I revenue increased approximately $20.4 million, or 19%, due primarily to a $20.4 million, or 22%, increase in F&I revenue and a$464, or 15% per unit increase in combined retail used vehicle and F&I gross profit. The increasein combined retail used vehicle and F&I gross profit per unit was due primarily to higher F&I penetration rates, changes to our F&I product cost structure, an improvement in inventory acquisition costs as a result of paying lower wholesale auction prices, sourcing a higher percentage of inventory from non-auction sources, and expanding our inventory to include older vehicles, which typically earn a higher gross profit per unit.

Current wording

Retail used vehicle revenue decreased approximately $52.1 million, or 4%, due primarily to a 4% decrease in retail used vehicle revenue per unit. Combined retail used vehicle gross profit and F&I revenue increased approximately $18.9 million, or 12%, due primarily to a $22.2 million, or 15%, increase in F&I revenue, offset partially by a $940, or 4%, decrease in retail used vehicle revenue per unit. The increasein combined retail used vehicle and F&I gross profit per unit was due primarily to higher F&I penetration rates, changes to our F&I product cost structure, an improvement in inventory acquisition costs as a result of paying lower wholesale auction prices, sourcing a higher percentage of inventory from non-auction sources, and expanding our inventory to include older vehicles, which typically earn a higher gross profit per unit.

Previous wording

Same market wholesale vehicle revenue increased approximately $3.5 million, or 16%, due primarily to a 19% increase in wholesale vehicle unit sales volume, offset partially by a 3% decrease in wholesale vehicle revenue per unit. As we adjust the inventory mix of nearly new versus older model year vehicles sold at retail going forward, the levels of wholesale vehicle revenue and gross profit may vary.

Current wording

Same market wholesale vehicle revenue increased approximately $6.6 million, or 28%, due primarily to a 19% increase in wholesale vehicle unit sales volume, and an 8% increase in wholesale vehicle revenue per unit. As we adjust the inventory mix of nearly new versus older model year vehicles sold at retail going forward, the levels of wholesale vehicle revenue and gross profit may vary.

Previous wording

Same market wholesale vehicle revenue increased approximately $5.4 million, or 11%, due primarily to a 16% increase in wholesale vehicle unit sales volume, offset partially by a 4% decrease in wholesale vehicle revenue per unit. As we adjust the inventory mix of nearly new versus older model year vehicles sold at retail going forward, the levels of wholesale vehicle revenue and gross profit may vary.

Current wording

Same market wholesale vehicle revenue increased approximately $12.0 million, or 17%, due primarily to a 17% increase in wholesale vehicle unit sales volume. As we adjust the inventory mix of nearly new versus older model year vehicles sold at retail going forward, the levels of wholesale vehicle revenue and gross profit may vary.

Previous wording

Retail new vehicle revenue increased 13%, due primarily to a 6% increase in retail new vehicle average selling prices, along with a 7% increase in retail new vehicle unit sales volume. Retail new vehicle gross profit increased 19%, as a result of higher retail new vehicle gross profit per unit and higher retail new vehicle unit sales volume. Retail new vehicle gross profit per unit increased $282 per unit, or 11%, to $2,771 per unit.

Current wording

Retail new vehicle revenue increased 33%, due primarily to a 11% increase in retail new vehicle average selling prices, along with a 21% increase in retail new vehicle unit sales volume. Retail new vehicle gross profit increased 38%, as a result of higher retail new vehicle gross profit per unit and higher retail new vehicle unit sales volume. Retail new vehicle gross profit per unit increased $430 per unit, or 13%, to $3,693 per unit.

Previous wording

Retail used vehicle revenue increased 43%, due primarily to a 46% increase in retail used vehicle unit sales volume, offset by a 2% decrease in retail used vehicle average selling prices. Retail used vehicle gross profit increased 22% as a result of higher retail used vehicle unit sales volume, partially offset by a decrease in gross profit per unit. Retail used vehicle gross profit per unit decreased $415 per unit, or 17%, to $2,043 per unit.

Current wording

Retail used vehicle revenue increased 88%, due primarily to a 77% increase in retail used vehicle unit sales volume, and a 6% increase in retail used vehicle average selling prices. Retail used vehicle gross profit increased 29% as a result of higher retail used vehicle unit sales volume, partially offset by a decrease in gross profit per unit. Retail used vehicle gross profit per unit decreased $771 per unit, or 27%, to $2,041 per unit.

Previous wording

Same store wholesale vehicle revenue increased approximately $0.2 million, due to higher wholesale vehicle unit sales volume. Same store wholesale vehicle gross profit loss improved by approximately $0.1 million.

Current wording

Same store wholesale vehicle revenue increased approximately $0.1 million, primarily due to a 53% increase in wholesale vehicle unit sales volume. Same store wholesale vehicle gross profit loss remained flat during the nine months ended September 30, 2025.

Previous wording

Same store Fixed Operations revenue increased approximately $0.2 million, or 2%, and same store Fixed Operations gross profit increased approximately $0.2 million, or 5%. Customer pay revenue increased approximately $0.4 million, or 27%, and customer pay gross profit increased approximately $0.7 million, or 700%. Warranty revenue increased approximately $0.1 million, or 8%, and warranty gross profit decreased approximately $0.2 million, or 18%. Wholesale parts revenue decreased approximately $0.1 million, or 50%, and wholesale parts gross profit decreased approximately $0.1 million, or 80%. Internal, sublet and other revenue decreased approximately $0.2 million, or 3%, and internal, sublet and other gross profit decreased approximately $0.2 million, or 7%.

Current wording

Same store Fixed Operations revenue increased approximately $3.0 million, or 15%, and same store Fixed Operations gross profit increased approximately $1.5 million, or 18%. Customer pay revenue increased approximately $0.3 million, or 11%, and customer pay gross profit increased approximately $0.2 million, or 17%. Warranty revenue increased approximately $0.1 million, or 9%, and warranty gross profit increased approximately $0.1 million, or 13%. Wholesale parts revenue decreased approximately $0.1 million, or 50%, and wholesale parts gross profit decreased approximately $0.1 million, or 100%. Internal, sublet and other revenue increased approximately $2.7 million, or 17%, and internal, sublet and other gross profit increased approximately $1.3 million, or 19%.

Previous wording

Same Store Fixed Operations revenue decreased approximately $0.4 million, or 3%, and same store Fixed Operations gross profit was flat. Customer pay revenue decreased approximately $0.2 million or 6%, and customer pay gross profit increased approximately $0.3 million, or 33%. Warranty revenue increased approximately $0.6 million, or 38%, and warranty gross profit increased approximately $0.1 million, or 7%. Wholesale parts revenue decreased approximately $0.2 million, or 50%, and wholesale parts gross profit decreased approximately $0.1 million, or 60%. Internal, sublet and other revenue decreased approximately $0.6 million, or 6%, and internal, sublet and other gross profit decreased approximately $0.3 million, or 7%.

Current wording

Same Store Fixed Operations revenue increased approximately $2.7 million, or 8%, and same store Fixed Operations gross profit increased approximately $1.7 million, or 10%. Customer pay revenue increased approximately $0.1 million or 2%, and customer pay gross profit increased approximately $0.5 million, or 24%. Warranty revenue increased approximately $0.6 million, or 21%, and warranty gross profit increased approximately $0.2 million, or 9%. Wholesale parts revenue decreased approximately $0.3 million, or 50%, and wholesale parts gross profit decreased approximately $0.1 million, or 50%. Internal, sublet and other revenue increased approximately $2.3 million, or 9%, and internal, sublet and other gross profit increased approximately $1.1 million, or 9%.

Previous wording

Same store F&I revenue increased approximately $0.1 million, or 3%, due primarily to a 19% increase in retail new and used vehicle unit sales volume. F&I gross profit per retail unit decreased $147 per unit, or 13%, to $948 per unit, due primarily to a decrease in gross profit per finance and service contracts.

Current wording

Same store F&I revenue increased approximately $0.9 million, or 41%, due primarily to a 42% increase in retail new and used vehicle unit sales volume. F&I gross profit per retail unit decreased $8 per unit, or 1%, to $1,125 per unit, due primarily to a decrease in gross profit per finance and service contracts.

Previous wording

Same store finance contract revenue increased 7%, due primarily to a 20% increase in combined new and used vehicle finance contract volume, offset partially by a 11% decrease in gross profit per finance contract. Service contract revenue decreased 6%, due primarily to a 17% decrease in gross profit per service contract, offset partially by a 14% increase in retail new and used vehicle service contract unit sales volume. Other aftermarket contract revenue increased 19%, due primarily to a 17% increase in other aftermarket contract volume, a 2% increase in gross profit per other aftermarket contract, offset partially by a 50-basis point decrease in the other aftermarket contract penetration rate.

Current wording

Same store finance contract revenue increased 28%, due primarily to a 43% increase in combined new and used vehicle finance contract volume, offset partially by an 11% decrease in gross profit per finance contract. Service contract revenue increased 16%, due primarily to a 39% increase in retail new and used vehicle service contract unit sales volume, offset partially by a 16% decrease in gross profit per service contract. Other aftermarket contract revenue increased 113%, due primarily to a 31% increase in other aftermarket contract volume, a 63% increase in gross profit per other aftermarket contract, offset partially by a 210-basis point decrease in the other aftermarket contract penetration rate.