AUTONATION, INC.
For the period ended Mar 31, 2026. Filed May 1, 2026.
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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.
Mar 31, 2026 · Filed May 1, 2026
AN$184.00-2.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-10-23.
0001628280-25-046121
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-01.
0001628280-26-029317
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe 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 196 previous paragraphs and 166 current paragraphs.
102 unchanged; 44 reworded; 18 added; 45 removed; 5 previous and 2 current paragraphs rearranged.
Tables are not compared: 26 previous and 26 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 (18)
Current report
In the first quarter of 2026, U.S. industry retail new vehicle unit sales, which includes sales in markets in which we do not compete, decreased approximately 8%, as compared to the first quarter of 2025, primarily due to accelerated consumer demand in the later part of March 2025 following tariff-related announcements, as well as consumer caution stemming from macroeconomic factors.
Current report
SG&A expenses increased primarily due to acquisitions, an increase in advertising costs to support vehicle sales, andinvestments targeting customer experience.
Current report
Goodwill
Current report
If we do not perform a qualitative assessment, or if we determine that it is not more likely than not that the fair value of the reporting unit exceeds its carrying amount, we calculate the estimated fair value of the reporting unit using an “income” valuation approach, which discounts projected free cash flows of the reporting unit at a computed weighted average cost of capital as the discount rate. The income valuation approach requires the use of significant estimates and assumptions, which include revenue growth rates and future operating margins used to calculate projected future cash flows, weighted average cost of capital, and future economic and market conditions. In connection with this process, we also reconcile the estimated aggregate fair values of our reporting units to our market capitalization, including consideration of a control premium based upon our stock price and/or average stock price over a reasonable period as of the measurement date. We base our cash flow forecasts on our knowledge of the automotive industry, our recent performance, our expectations of our future performance, and other assumptions we believe to be reasonable but that are unpredictable and inherently uncertain. Actual future results may differ from those estimates. We also make certain judgments and assumptions in allocating shared assets and liabilities to determine the carrying values for each of our reporting units.
Current report
We may first perform a qualitative assessment to determine whether it is more likely than not that a franchise right asset is impaired, or alternatively, we may bypass the qualitative assessment and proceed directly to a quantitative impairment test. The quantitative impairment test for franchise rights requires the comparison of the franchise rights’ estimated fair value to carrying value by store. Fair values of rights under franchise agreements are estimated using unobservable (Level 3) inputs by discounting expected future cash flows of the store. The forecasted cash flows contain inherent uncertainties, including significant estimates and assumptions related to growth rates, margins, working capital requirements, capital expenditures, and cost of capital, for which we utilize certain market participant-based assumptions, using third-party industry projections, economic projections, and other marketplace data we believe to be reasonable.
Current report
Same store new vehicle revenue decreased during the three months ended March 31, 2026, as compared to the same period in 2025, due to a decrease in same store unit volume primarily as a result of the prior year period benefiting from accelerated consumer demand in the later part of March 2025 following tariff-related announcements, a decrease in electric vehicle unit volume due in part to the phasing out of EV tax credits at the end of the third quarter of 2025, and consumer caution stemming from macroeconomic factors.
Current report
Same store new vehicle revenue PVR increased slightly during the three months ended March 31, 2026, as compared to the same period in 2025, reflecting an increase in average selling prices in all three segments, largely offset by a 3% shift in mix away from Premium Luxury vehicles, which have relatively higher average revenue PVR.
Current report
Same store new vehicle gross profit PVR decreased during the three months ended March 31, 2026, as compared to the same period in 2025, primarily due to an increase in average vehicle costs and the shift in mix away from Premium Luxury vehicles, which have relatively higher average gross profit PVR. Same store new vehicle gross profit PVR was also adversely impacted by moderation of margins following post-pandemic elevated levels. New vehicle unit profitability appears to be stabilizing as evidenced by modest quarterly sequential improvement in gross profit PVR since the third quarter of 2025.
Current report
Same store parts and service revenue increased during the three months ended March 31, 2026, as compared to the same period in 2025, primarily due to increases in revenue associated with wholesale parts sales of $26.1 million and customer-pay service of $21.6 million, partially offset by a decrease in revenue associated with the preparation of vehicles for sale of $8.0 million.
Current report
Same store parts and service gross profit increased during the three months ended March 31, 2026, as compared to the same period in 2025, primarily due to an increase in gross profit associated with customer-pay service of $13.4 million, wholesale parts sales of $4.9 million, and warranty service of $4.5 million, partially offset by a decrease in gross profit associated with the preparation of vehicles for sale of $9.0 million. Gross profit as a percentage of revenue decreased during the three months ended March 31, 2026, as compared to the same period in 2025, primarily due to a shift in mix to wholesale parts sales, which have relatively lower margins.
Current report
Domestic revenue was relatively flat during the three months ended March 31, 2026, as compared to the same period in 2025, primarily due to decreases in new and used vehicle unit volume, largely offset by increases in new vehicle revenue PVR of $868, used vehicle revenue PVR of $1,108, and finance and insurance revenue PVR of $295. New vehicle unit volume decreased primarily due to the prior year benefitting from accelerated consumer demand following tariff-related announcements and used vehicle unit volume decreased due to tightening supply in the used vehicle market. Domestic revenue also benefited from an increase in used vehicle wholesale revenue of $6.2 million, and increases in parts and service revenue associated with warranty service of $7.4 million and customer-pay service of $7.3 million.
Current report
Domestic segment income increased during the three months ended March 31, 2026, as compared to the same period in 2025, primarily due to increases in parts and service gross profit associated with warranty service of $5.4 million and customer-pay service of $5.1 million, as well as an increase in finance and insurance gross profit PVR due to higher realized margins on service contracts. These were partially offset by an increase in SG&A expenses of $6.3 million.
Current report
Import revenue was relatively flat during the three months ended March 31, 2026, as compared to the same period in 2025, primarily due to an increase in parts and service revenue primarily associated with wholesale and retail parts sales of $12.0 million, as well as increases in new vehicle revenue PVR of $736, used vehicle revenue PVR of $493, and finance and insurance revenue PVR of $139. These were largely offset by a decrease in new vehicle unit volume primarily due to the prior year benefitting from accelerated consumer demand following tariff-related announcements.
Current report
Premium Luxury revenue decreased during the three months ended March 31, 2026, as compared to the same period in 2025, due to a decrease in new vehicle unit volume, partially offset by a $25.7 million increase in revenue from the acquisitions we completed in the third quarter of 2025 and an increase in new vehicle revenue PVR of $2,083. New vehicle unit volume decreased primarily due to the prior year period benefiting from accelerated consumer demand in the later part of March 2025 following tariff-related announcements and a decrease in electric vehicle unit volume due in part to the phasing out of EV tax credits at the end of the third quarter of 2025. The decrease in new vehicle revenue was partially offset by increases in parts and service revenue associated with customer-pay service of $15.3 million and wholesale and retail parts sales of $8.9 million.
Current report
Premium Luxury segment income decreased during the three months ended March 31, 2026, as compared to the same period in 2025, primarily due to a decrease in new vehicle unit volume, a decrease in new vehicle gross profit PVR of $299, and a $5.8 million increase in SG&A expenses, partially offset by increases in parts and service gross profit associated with customer-pay service of $8.2 million and warranty service of $5.6 million.
Current report
Other Expense, Net (Operating)
Current report
Other interest expense was $48.0 million for the three months ended March 31, 2026, compared to $42.3 million for the three months ended March 31, 2025. The increase in interest expense of $5.7 million was due to higher average debt balances and higher interest rates.
Current report
to January 2034.
Removed paragraphs (45)
Previous report
Certain reclassifications of amounts previously reported have been made to the accompanying Unaudited Condensed Consolidated Financial Statements in order to maintain consistency and comparability between periods presented.
Previous report
In the third quarter of 2025, U.S. industry retail new vehicle unit sales, which includes sales in markets in which we do not compete, increased approximately 5%, as compared to the third quarter of 2024, due to sustained consumer demand and acceleration of consumer demand for hybrid vehicles and electric vehicles resulting from the phasing out of electric vehicle (“EV”) tax credits through the end of the third quarter of 2025. The higher levels of manufacturer vehicle production over the past several years led to an increased supply of new vehicle inventory, which has resulted in moderation of new vehicle unit profitability. We expect that new vehicle unit profitability may continue to moderate, in part due to the tariffs announced earlier this year.
Previous report
The 2025 Budget Reconciliation Act (the “Act”), signed into law in July 2025, introduces several provisions with direct implications for the automotive retail industry, particularly in areas of taxation, consumer incentives, and EV policies. The Act provides beneficial tax provisions for dealerships and new car buyers while creating uncertainty in the EV market due to the accelerated phasing out of EV tax credits. While we are encouraged by the potential uplift certain provisions of the Act may have on our business and the automotive retail industry, we currently do not expect the impact will be material to our results of operations.
Previous report
Net income and diluted earnings per share for the three months ended September 30, 2025, were favorably impacted by after-tax gains on insurance recoveries of $30.2 million for business interruption and related losses caused by the CDK outage that occurred in June 2024. See Note 15 of the Notes to Unaudited Condensed Consolidated Financial Statements for more information. In addition, net income and diluted earnings per share for the three months ended September 30, 2025, were adversely impacted by after-tax acquisition-related expenses of $6.0 million.
Previous report
Under accounting standards, we chose to make a qualitative evaluation about the likelihood of goodwill impairment as of April 30, 2025, for our Domestic, Import, Premium Luxury, AutoNation Finance, and Collision Center reporting units and determined that it was not more likely than not that the fair values of these reporting units were less than their carrying amounts. For our Mobile Service reporting unit, which relates to the mobile automotive repair and maintenance start-up business we acquired in the first quarter of 2023, we elected to perform a quantitative goodwill impairment test as of April 30, 2025, and determined that its fair value was less than its carrying value. As a result, during the three months ended June 30, 2025, we recorded a non-cash goodwill impairment charge of $65.3 million. The non-cash impairment charge is reflected as Goodwill Impairment in the accompanying Unaudited Condensed Consolidated Statements of Income.
Previous report
The quantitative goodwill impairment test is dependent on many variables used to determine the fair value of a reporting unit. See Note 14 of the Notes to Unaudited Condensed Consolidated Financial Statements for additional information on how the fair values and carrying values of our reporting units are derived for the quantitative goodwill impairment test. The key assumptions used in our estimate of fair value for our Mobile Service reporting unit included revenue growth rates to calculate projected future cash flows. As a measure of sensitivity, a 20% decrease in the revenue growth rates would have resulted in an increase to the goodwill impairment charge of approximately $30 million. This result and discussion is not intended to address all potential outcomes that could have resulted if different assumptions had been used in determining our goodwill impairment given the number of assumptions used in determining the impairment and the degree of sensitivity to changes in such assumptions in the determination of the fair value.
Previous report
We may first perform a qualitative assessment to determine whether it is more likely than not that a franchise right asset is impaired. We elected to perform quantitative franchise rights impairment tests for our annual impairment tests as of April 30, 2025. As a result of the quantitative tests, we determined the franchise rights carrying values for nine stores exceeded their fair values, and we recorded non-cash franchise rights impairment charges of $71.7 million during the three months ended June 30, 2025, to reduce the carrying value of the stores’ franchise agreements to their estimated fair values. We also identified 10 stores that, while they each had franchise rights fair value in excess of carrying value, had lower relative performance compared to our total store population. We will continue to monitor these stores, as well as all stores, for events or changes in circumstances that may indicate potential impairment. The remainder of our stores had franchise rights with calculated fair values that substantially exceeded their carrying values.
Previous report
The quantitative franchise rights impairment test is dependent on many variables used to determine the fair value of each store’s franchise rights. See Note 14 of the Notes to Unaudited Condensed Consolidated Financial Statements for a description of the valuation method and related estimates and assumptions used in our quantitative impairment testing. Based on a sensitivity analysis of these estimates and assumptions, including if the fair value of each of our franchise rights had been determined to be a hypothetical 10% lower as of the valuation date of April 30, 2025, the resulting incremental impairment charge would have been approximately $7 million. The sensitivity analysis performed, including the effect of a hypothetical 10% decrease in fair value estimates, is not intended to provide a sensitivity analysis of every potential outcome.
Previous report
As of September 30, 2025, we had 78 stores with franchise rights totaling $967.4 million.
Previous report
Same store new vehicle revenue increased during the three months ended September 30, 2025, as compared to the same period in 2024, due to increases in same store unit volume and same store revenue PVR. Same store unit volume benefited from sustained consumer demand, better execution in our sales pipeline, and an acceleration of consumer demand for hybrid vehicles and electric vehicles resulting from the phasing out of EV tax credits through the end of the third quarter of 2025. In addition, same store unit volume in the prior year was adversely impacted by manufacturer stop sale orders on certain vehicle models.
Previous report
Same store new vehicle revenue PVR increased during the three months ended September 30, 2025, as compared to the same period in 2024, largely due to increases in the average selling prices for vehicles in all franchised dealership segments. In addition, same store revenue PVR benefited from a 6% shift in mix to hybrid vehicles and electric vehicles and a 2% shift in mix toward larger vehicles, such as trucks and sport utility vehicles, that have relatively higher average selling prices. Increases in same store new vehicle revenue PVR were partially offset by a 2% shift in mix toward Domestic vehicles.
Previous report
Same store new vehicle gross profit PVR decreased during the three months ended September 30, 2025, as compared to the same period in 2024, primarily due to an increase in average vehicle costs largely due to lower manufacturer incentive assistance, a shift in mix to hybrid vehicles and electric vehicles, which have relatively lower average gross profit PVR, and continued moderation of margins following post-pandemic elevated levels. We expect that new vehicle unit profitability may continue to moderate, in part due to the tariffs announced earlier this year.
Previous report
Same store new vehicle revenue increased during the nine months ended September 30, 2025, as compared to the same period in 2024, due to increases in same store unit volume and same store revenue PVR. Same store unit volume benefited from sustained consumer demand, better execution in our sales pipeline, an increase in supply of new vehicle inventory, and an acceleration of consumer demand for hybrid vehicles and electric vehicles resulting from the phasing out of EV tax credits through the end of the third quarter of 2025. In addition, same store unit volume in the prior year was adversely impacted by a decrease in productivity during the CDK outage.
Previous report
Same store new vehicle revenue PVR increased during the nine months ended September 30, 2025, as compared to the same period in 2024, largely due to increases in the average selling price for vehicles across all franchised dealership segments.
Previous report
In addition, same store revenue PVR benefited from a 6% shift in mix to hybrid vehicles and electric vehicles and a 2% shift in mix toward larger vehicles, such as trucks and sport utility vehicles, that have relatively higher average selling prices.
Previous report
Same store new vehicle gross profit PVR decreased during the nine months ended September 30, 2025, as compared to the same period in 2024, due in part to an increase in supply of new vehicle inventory as compared to the prior year, which has resulted in moderation of margins following post-pandemic elevated levels, as well as an increase in average vehicle costs and a shift in mix to hybrid vehicles and electric vehicles, which have relatively lower average gross profit PVR. We expect that new vehicle unit profitability may continue to moderate, in part due to the tariffs announced earlier this year.
Previous report
The net new vehicle inventory carrying expense decreased during the three months ended September 30, 2025, as compared to the same period in 2024, due to a decrease in floorplan interest expense, partially offset by a decrease in floorplan assistance. Floorplan interest expense decreased due to lower average interest rates and lower average vehicle floorplan balances. Floorplan assistance decreased primarily due to a decrease in the floorplan assistance rate per unit, partially offset by higher new vehicle sales.
Previous report
Same store retail used vehicle revenue increased during the nine months ended September 30, 2025, as compared to the same period in 2024, primarily due to an increase in same store unit volume as the prior year was adversely impacted by the CDK outage. The increase in same store unit volume was partially offset by a 1% shift in mix from used vehicles to new vehicles. Wholesale used vehicle revenue decreased during the nine months ended September 30, 2025, as compared to the same period in 2024, due to a shift in mix to lower-value used vehicles.
Previous report
Same store used vehicle revenue and gross profit PVR during the nine months ended September 30, 2025, was relatively flat as compared to the same period in 2024, as used vehicle unit profitability has been stabilizing due in part to our initiatives to achieve more optimal levels and mix of used vehicle inventory.
Previous report
Same store parts and service revenue increased during the three months ended September 30, 2025, as compared to the same period in 2024, primarily due to increases in revenue associated with customer-pay service of $36.6 million and the preparation of vehicles for sale of $15.5 million.
Previous report
Same store parts and service gross profit increased during the three months ended September 30, 2025, as compared to the same period in 2024, primarily due to increases in gross profit associated with customer-pay service of $23.6 million, the preparation of vehicles for sale of $7.6 million, and warranty service of $5.2 million.
Previous report
Same store parts and service revenue increased during the nine months ended September 30, 2025, as compared to the same period in 2024, primarily due to increases in revenue associated with customer-pay service of $82.2 million and warranty service of $79.4 million.
Previous report
Same store parts and service gross profit increased during the nine months ended September 30, 2025, as compared to the same period in 2024, primarily due to increases in gross profit associated with warranty service of $51.1 million, customer-pay service of $49.0 million, and the preparation of vehicles for sale of $31.5 million.
Previous report
Same store finance and insurance revenue and gross profit increased during the nine months ended September 30, 2025, as compared to the same period in 2024, due to increases in finance and insurance gross profit PVR and vehicle unit volume. Finance and insurance gross profit PVR benefited from higher realized margins on vehicle service contracts, partially offset by an increase in retail vehicle sales financed through AutoNation Finance. In addition, finance and insurance gross profit in the prior year was adversely impacted by the CDK outage.
Previous report
Domestic revenue increased during the three months ended September 30, 2025, as compared to the same period in 2024, primarily due to an increase in new vehicle revenue, over 75% of which was due to an increase in new vehicle unit volume. New vehicle unit volume benefited from sustained consumer demand, better execution in our sales pipeline, and an acceleration of consumer demand for hybrid vehicles and electric vehicles resulting from the phasing out of EV tax credits through the end of the third quarter of 2025. In addition, Domestic revenue in the prior year was adversely impacted by the residual effects of the CDK outage.
Previous report
Domestic segment income increased during the three months ended September 30, 2025, as compared to the same period in 2024, primarily due to an increase in finance and insurance gross profit, approximately 55% of which was driven by an increase in finance and insurance gross profit PVR of $241 primarily due to higher realized margins on vehicle service contracts, and 45% of which was due to higher vehicle unit volume. Domestic segment income also benefited from a decrease in SG&A expenses resulting from the divestitures we completed in the third quarters of 2024 and 2025. In addition, Domestic segment income in the prior year was adversely impacted by the residual effects of the CDK outage.
Previous report
Domestic revenue increased during the nine months ended September 30, 2025, as compared to the same period in 2024, primarily due to an increase in new vehicle revenue, approximately 90% of which was due to an increase in new vehicle unit volume. New vehicle unit volume benefited from sustained consumer demand, better execution in our sales pipeline, and an acceleration of consumer demand for electric vehicles resulting from the phasing out of EV tax credits through the end of the third quarter of 2025. The increase in new vehicle unit volume was partially offset by a decrease in new vehicle revenue of approximately $70 million related to the divestitures we completed in the third quarters of 2024 and 2025. In addition, Domestic revenue in the prior year was adversely impacted by a decrease in productivity as a result of the CDK outage.
Previous report
Domestic segment income increased during the nine months ended September 30, 2025, as compared to the same period in 2024, primarily due to an increase in finance and insurance gross profit, approximately 60% of which was due to an increase in finance and insurance gross profit PVR of $237 driven by higher realized margins on vehicle service contracts. Domestic segment income also benefited from a decrease in SG&A expenses resulting from the divestitures we completed in the third quarters of 2024 and 2025. In addition, Domestic segment income in the prior year was adversely impacted by a decrease in productivity as a result of the CDK outage.
Previous report
Import revenue increased during the three months ended September 30, 2025, as compared to the same period in 2024, primarily due to an increase in new vehicle revenue, approximately 60% of which was due to higher new vehicle unit volume and 40% of which was driven by an increase in average selling prices, with new vehicle revenue PVR up $864. New vehicle unit volume benefited from sustained consumer demand, better execution in our sales pipeline, and an acceleration of consumer demand for hybrid vehicles and electric vehicles resulting from the phasing out of EV tax credits through the end of the third quarter of 2025. Import revenue also benefited from an increase in parts and service revenue, largely due to increases in revenue associated with customer-pay service of $10.3 million and warranty service of $10.0 million. In addition, Import revenue in the prior year was adversely impacted by the residual effects of the CDK outage.
Previous report
Import segment income increased during the three months ended September 30, 2025, as compared to the same period in 2024, primarily due to an increase in parts and service gross profit, largely resulting from increases in gross profit associated with customer-pay service of $6.7 million and warranty service of $6.1 million. In addition, Import segment income in the prior year was adversely impacted by the residual effects of the CDK outage. Increases in Import segment income were partially offset by an increase in SG&A expenses of $13.3 million, largely due to an increase in performance-driven compensation expense.
Previous report
Import revenue increased during the nine months ended September 30, 2025, as compared to the same period in 2024, primarily due to an increase in new vehicle revenue, approximately half of which was due to higher new vehicle unit volume and half was driven by an increase in average selling prices, with new vehicle revenue PVR up $1,025. New vehicle unit volume benefited from sustained consumer demand, better execution in our sales pipeline, and an acceleration of consumer demand for hybrid vehicles and electric vehicles resulting from the phasing out of EV tax credits through the end of the third quarter of 2025. Import revenue also benefited from an increase in parts and service revenue, largely due to increases in revenue associated with warranty service of $59.1 million and the preparation of vehicles for sale of $21.8 million. In addition, Import revenue in the prior year was adversely impacted by a decrease in productivity as a result of the CDK outage.
Previous report
Premium Luxury revenue increased during the three months ended September 30, 2025, as compared to the same period in 2024, primarily due to an increase in used vehicle retail revenue, approximately 60% of which was driven by an increase in average selling prices, with used vehicle revenue PVR up $2,082, and 40% of which was due to an increase in used vehicle unit volume, particularly for higher-priced used vehicles. Premium luxury revenue also benefited from an increase in new vehicle revenue driven by an increase in new vehicle revenue PVR of $3,330 due in part to the acceleration of consumer demand for hybrid vehicles and electric vehicles, which have relatively higher average selling prices, resulting from the phasing out of EV tax credits through the end of the third quarter of 2025. In addition, Premium Luxury revenue in the prior year was adversely impacted by the residual effects of the CDK outage.
Previous report
Premium Luxury segment income increased during the three months ended September 30, 2025, as compared to the same period in 2024, primarily due to an increase in finance and insurance gross profit, approximately 75% of which was due to a $187 increase in finance and insurance gross profit PVR driven primarily by higher realized margins on vehicle service contracts. Premium luxury segment income also benefited from an increase in parts and service gross profit, largely resulting from an increase in gross profit associated with customer-pay service of $7.5 million, and a decrease in floorplan interest expense of $7.1 million. In addition, Premium Luxury segment income in the prior year was adversely impacted by the residual effects of the CDK outage. The increases in Premium Luxury segment income were partially offset by a decrease in new vehicle gross profit, over 95% of which was driven by a decrease in new vehicle gross profit PVR primarily due to an increase in average vehicle costs resulting in part from lower manufacturer incentive assistance, a shift in mix to hybrid vehicles and electric vehicles, which have relatively lower average gross profit PVR, and continued moderation of margins following post-pandemic elevated levels.
Previous report
Premium Luxury revenue increased during the nine months ended September 30, 2025, as compared to the same period in 2024, primarily due to an increase in new vehicle revenue, approximately 75% of which was due to higher new vehicle unit volume and 25% was driven by an increase in average selling prices, with new vehicle revenue PVR up $1,317. New vehicle unit volume benefited from sustained consumer demand, better execution in our sales pipeline, and an acceleration of consumer demand for hybrid vehicles and electric vehicles resulting from the phasing out of EV tax credits through the end of the third quarter of 2025. Premium Luxury revenue also benefited from an increase in used vehicle retail revenue, approximately 75% of which was due to higher used vehicle unit volume, particularly for higher-priced used vehicles, and 25% of which was due to an increase in average selling prices, with used vehicle revenue PVR up $421. In addition, Premium Luxury revenue in the prior year was adversely impacted by a decrease in productivity as a result of the CDK outage.
Previous report
Premium Luxury segment income increased during the nine months ended September 30, 2025, as compared to the same period in 2024, primarily due to an increase in finance and insurance gross profit, approximately 55% of which was due to a $176 increase in finance and insurance gross profit PVR driven by higher realized margins on vehicle service contracts, and 45% of which was due to an increase in vehicle unit volume. Premium Luxury segment income also benefited from increases in gross profit associated with customer-pay service of $16.5 million and warranty service of $11.5 million. In addition, Premium Luxury segment income in the prior year was adversely impacted by a decrease in productivity as a result of the CDK outage. The increases in Premium Luxury segment income were partially offset by an increase in SG&A expenses of $28.0 million, largely due to an increase in performance-driven compensation expense.
Previous report
ANF income benefited from a decrease in the expected credit loss rates compared to the prior year reflecting improved credit quality of new loan originations and the sale of third-party receivables originated through third-party dealers that we completed in the fourth quarter of 2024. As auto loans receivable shifted towards higher credit tiers, past due accounts and annualized net credit losses as a percentage of managed receivables decreased at September 30, 2025, compared to the prior year.
Previous report
ANF income benefited from a decrease in the expected credit loss rates compared to the prior year reflecting improved credit quality of new loan originations and the sale of third-party receivables originated through third-party dealers that we completed in the fourth quarter of 2024. As auto loans receivable shifted towards higher credit tiers, past due accounts and annualized net credit losses as a percentage of managed receivables decreased at September 30, 2025, compared to the prior year.
Previous report
SG&A expenses increased during thenine months ended September 30, 2025, as compared to the same period in 2024, primarily due to an increase in compensation expense, an increase in acquisition-related expenses of $10.1 million, an increase in advertising expenses to support vehicle sales, and acquisitions and newly opened stores. The increase in compensation expense was largely due to an increase in performance-driven compensation, partially offset by certain one-time compensation of approximately $43 million paid to commission-based associates in the prior year to ensure business continuity as a result of the CDK outage. In addition, SG&A expenses benefited from the divestitures we completed in the third quarters of 2024 and 2025. As a percentage of total gross profit, SG&A expenses decreased to 67.7% during the nine months ended September 30, 2025, from 68.6% in the same period in 2024, due to prior year gross profit and SG&A expenses being adversely impacted by the CDK outage in the prior year and effective cost management.
Previous report
Other Income, Net (Operating)
Previous report
Floorplan interest expense was $47.5 million for the three months ended September 30, 2025, compared to $60.5 million for the same period in 2024. The decrease in floorplan interest expense of $13.0 million was due to lower average interest rates and lower average vehicle floorplan balances.
Showing the first 40 of 45 passages. Open the source sections for the rest.
Reworded paragraphs (44)
Previous wording
AutoNation, Inc., through its subsidiaries, is one of the largest automotive retailers in the United States. As of September 30, 2025, we owned and operated 323 new vehicle franchises from 244 stores located in the United States, predominantly in major metropolitan markets in the Sunbelt region. Our stores, which we believe include some of the most recognizable and well known in our key markets, sell 30 different new vehicle brands. The core brands of new vehicles that we sell, representing approximately 89% of the new vehicles that we sold during the nine months ended September 30, 2025, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, BMW, Mercedes-Benz, Stellantis, and Volkswagen (including Audi and Porsche). As of September 30, 2025, we also owned and operated 52 AutoNation-branded collision centers, 26 AutoNation USA used vehicle stores, 4 AutoNation-branded automotive auction operations, 3 parts distribution centers, a mobile automotive repair and maintenance business, and an auto finance company.
Current wording
AutoNation, Inc., through its subsidiaries, is one of the largest automotive retailers in the United States. As of March 31, 2026, we owned and operated 324 new vehicle franchises from 244 stores located in the United States, predominantly in major metropolitan markets in the Sunbelt region. Our stores, which we believe include some of the most recognizable and well known in our key markets, sell 30 different new vehicle brands. The core brands of new vehicles that we sell, representing approximately 88% of the new vehicles that we sold during the three months ended March 31, 2026, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, Mercedes-Benz, BMW, Stellantis, and Volkswagen (including Audi and Porsche). As of March 31, 2026, we also owned and operated 52 AutoNation-branded collision centers, 25 AutoNation USA used vehicle stores, 4 AutoNation-branded automotive auction operations, 3 parts distribution centers, a mobile automotive repair and maintenance business, and an auto finance company.
Previous wording
For the nine months ended September 30, 2025, new vehicle sales accounted for 49% of our total revenue and 14% of our total gross profit. Used vehicle sales accounted for 29% of our total revenue and 10% of our total gross profit. Our parts and service operations, while comprising 17% of our total revenue, contributed 47% of our total gross profit. Our finance and insurance sales, while comprising 5% of our total revenue, contributed 29% of our total gross profit.
Current wording
For the three months ended March 31, 2026, new vehicle sales accounted for 46% of our total revenue and 12% of our total gross profit. Used vehicle sales accounted for 30% of our total revenue and 10% of our total gross profit. Our parts and service operations, while comprising 19% of our total revenue, contributed 49% of our total gross profit. Our finance and insurance sales, while comprising 5% of our total revenue, contributed 29% of our total gross profit.
Previous wording
The tariffs announced by the U.S. government beginning in the first quarter of 2025 on vehicles and parts imported from other countries could increase our costs and/or consumer prices and limit the availability of inventory and/or reduce demand for the products and services we offer, which in turn could have a material adverse effect on our business and results of operations. The policies and announcements regarding tariffs on imported goods have been evolving and remain highly fluid. The ultimate impact of any tariffs is uncertain and will depend on various factors, including whether the tariffs are maintained and/or implemented, the duration of the tariffs and the timing of their implementation, the amount, scope, and nature of the tariffs, and the related responses from other countries, manufacturers, and/or consumers.
Current wording
The tariffs announced by the U.S. government beginning in the first quarter of 2025 on vehicles and parts imported from other countries by our suppliers could indirectly increase our costs and limit the availability of inventory and/or reduce demand for the products and services we offer, which in turn could have a material adverse effect on our business and results of operations. While we have not observed a meaningful increase in our costs or other adverse impacts as a result of such tariffs to date, the policies and announcements regarding tariffs on imported goods are evolving and remain highly fluid. The ultimate impact of any tariffs is uncertain and will depend on various factors, including whether the tariffs are maintained and/or implemented, the duration of the tariffs and the timing of their implementation, the amount, scope, and nature of the tariffs, and the related responses from other countries, manufacturers, and/or consumers.
Previous wording
During the three months ended September 30, 2025, we had net income of $215.1 million and diluted earnings per share of $5.65, as compared to net income of $185.8 million and diluted earnings per share of $4.61 during the same period in 2024.
Current wording
During the three months ended March 31, 2026, we had net income of $205.4 million and diluted earnings per share of $5.85, as compared to net income of $175.5 million and diluted earnings per share of $4.45 during the same period in 2025.
Previous wording
Our total gross profit increased 5% during the third quarter of 2025 compared to the same period in the prior year, driven by increases in finance and insurance gross profit of 12% and parts and service gross profit of 7%, partially offset by a decrease in new vehicle gross profit of 15%, each as compared to the third quarter of 2024. Finance and insurance gross profit benefited from higher realized margins on vehicle service contracts and an increase in vehicle unit volume. Parts and service results benefited primarily from increases in gross profit from customer-pay service and the preparation of vehicles for sale. New vehicle gross profit was adversely impacted by a decrease in gross profit per vehicle retailed (“PVR”) resulting from higher average vehicle costs, a shift in mix toward hybrid vehicles and electric vehicles, which have relatively lower average gross profit PVR, and continued moderation of margins following post-pandemic elevated levels.
Current wording
Our total gross profit was relatively flat during the first quarter of 2026 compared to the same period in the prior year, driven by decreases in new vehicle gross profit of 17% and used vehicle gross profit of 2%, largely offset by an increase in parts and service gross profit of 5%, each as compared to the first quarter of 2025. New vehicle gross profit was adversely impacted by a decrease in new vehicle unit volume as the prior year benefited from accelerated consumer demand following tariff-related announcements, as well as a decrease in gross profit per vehicle retailed (“PVR”) resulting from higher average vehicle costs, a shift in mix away from Premium Luxury vehicles, and moderation of margins following post-pandemic elevated levels. Used vehicle gross profit was adversely impacted by a decrease in used vehicle retail unit volume and a decrease in gross profit PVR resulting from an increase in acquisition costs, partially offset by improvement in wholesale gross profit. Parts and service results benefited primarily from increases in gross profit associated with customer-pay service, wholesale parts sales, and warranty service.
Previous wording
Net income for the three months ended September 30, 2024, benefited from an after-tax net gain of $35.3 million related to business/property dispositions, net of asset impairments, partially offset by an after-tax net loss of $5.1 million related to changes in fair value of certain equity investments and after-tax self-insured losses of $4.3 million primarily related to hailstorms and other natural catastrophes.
Current wording
Net income for the three months ended March 31, 2026, benefited from an after-tax gain of $40.8 million related to changes in fair value of certain minority equity investments. Net income for the three months ended March 31, 2025, was adversely impacted by an after-tax loss of $8.7 million related to changes in fair value of a minority equity investment.
Previous wording
Our new vehicle inventory units at September 30, 2025 and 2024, were 43,200 and 46,000, respectively. We have typically not experienced significant losses on the sale of new vehicle inventory, in part due to incentives provided by manufacturers to promote sales of new vehicles and our inventory management practices. We monitor our new vehicle inventory values as compared to net realizable values. Our new vehicle inventory was net of cumulative write-downs of $2.7 million at September 30, 2025, and $2.0 million at December 31, 2024.
Current wording
Our new vehicle inventory units at March 31, 2026 and 2025, were 42,440 and 39,300, respectively. We have typically not experienced significant losses on the sale of new vehicle inventory, in part due to incentives provided by manufacturers to promote sales of new vehicles and our inventory management practices. We monitor our new vehicle inventory values as compared to net realizable values. Our new vehicle inventory was net of cumulative write-downs of $0.6 million at March 31, 2026, and $1.2 million at December 31, 2025.
Previous wording
We recondition the majority of used vehicles acquired for retail sale in our parts and service departments and capitalize the related costs to the used vehicle inventory. We monitor our used vehicle inventory values as compared to net realizable values. Typically, used vehicles that are not sold on a retail basis are sold at wholesale auctions. Our used vehicle inventory balance was net of cumulative write-downs of $6.1 million at September 30, 2025, and $7.8 million at December 31, 2024.
Current wording
Our used vehicle inventory units at March 31, 2026 and 2025, were 32,615 and 34,281, respectively. We recondition the majority of used vehicles acquired for retail sale in our parts and service departments and capitalize the related costs to the used vehicle inventory. We monitor our used vehicle inventory values as compared to net realizable values. Typically, used vehicles that are not sold on a retail basis are sold at wholesale auctions. Our used vehicle inventory balance was net of cumulative write-downs of $5.2 million at March 31, 2026, and $5.8 million at December 31, 2025.
Previous wording
Parts, accessories, and other inventory are carried at the lower of cost or net realizable value. We estimate the amount of potentially damaged and/or excess and obsolete inventory based upon historical experience, manufacturer return policies, and industry trends. Our parts, accessories, and other inventory balance was net of cumulative write-downs of $9.5 million at September 30, 2025, and $8.3 million at December 31, 2024.
Current wording
Parts, accessories, and other inventory are carried at the lower of cost or net realizable value. We estimate the amount of potentially damaged and/or excess and obsolete inventory based upon historical experience, manufacturer return policies, and industry trends. Our parts, accessories, and other inventory balance was net of cumulative write-downs of $9.1 million at March 31, 2026, and $9.5 million at December 31, 2025.
Previous wording
Goodwill for our reporting units is tested for impairment annually as of April 30 or more frequently when events or changes in circumstances indicate that the carrying value of a reporting unit more likely than not exceeds its fair value. We may first perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired. When assessing goodwill for impairment, our decision to perform a qualitative assessment for an individual reporting unit is influenced by a number of factors, including the carrying value of the reporting unit’s goodwill, the significance of the excess of the reporting unit’s estimated fair value over carrying value at the last quantitative assessment date, the amount of time in between quantitative fair value assessments, macroeconomic conditions, automotive industry and market conditions, and our operating performance.
Current wording
We may first perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired. When assessing goodwill for impairment, our decision to perform a qualitative assessment for an individual reporting unit is influenced by a number of factors, including the carrying value of the reporting unit’s goodwill, the significance of the excess of the reporting unit’s estimated fair value over carrying value at the last quantitative assessment date, the amount of time in between quantitative fair value assessments, macroeconomic conditions, automotive industry and market conditions, and our operating performance.
Previous wording
As of September 30, 2025, we have $221.9 million of goodwill related to the Domestic reporting unit, $523.4 million related to the Import reporting unit, $496.0 million related to the Premium Luxury reporting unit, $75.2 million related to the Mobile Service reporting unit, $78.4 million related to the AutoNation Finance reporting unit, and $4.6 million related to the Collision Center reporting unit.
Current wording
As of March 31, 2026, we have $219.4 million of goodwill related to the Domestic reporting unit, $531.0 million related to the Import reporting unit, $498.8 million related to the Premium Luxury reporting unit, $75.2 million related to the Mobile Service reporting unit, $78.4 million related to the AutoNation Finance reporting unit, and $4.6 million related to the Collision Center reporting unit.
Previous wording
The net new vehicle inventory carrying expense decreased during the nine months ended September 30, 2025, as compared to the same period in 2024, primarily due to a decrease in floorplan interest expense as a result of lower average interest rates and lower average vehicle floorplan balances.
Current wording
The net new vehicle inventory carrying expense decreased during the three months ended March 31, 2026, as compared to the same period in 2025, primarily due to a decrease in floorplan interest expense as a result of lower average interest rates, partially offset by higher average vehicle floorplan balances.
Previous wording
Same store retail used vehicle revenue increased during the three months ended September 30, 2025, as compared to the same period in 2024, due to an increase in same store unit volume, particularly for higher-priced used vehicles, and an increase in same store revenue PVR. Same store volume in the prior year was adversely impacted by the residual effects of the CDK outage. Wholesale used vehicle revenue decreased during the three months ended September 30, 2025, as compared to the same period in 2024, primarily due to a shift in mix to lower-value used vehicles.
Current wording
Same store retail used vehicle revenue was relatively flat during the three months ended March 31, 2026, as compared to the same period in 2025, reflecting a decrease in same store unit volume due to tightening supply in the used vehicle market, largely offset by an increase in same store revenue PVR. Wholesale used vehicle revenue increased during the three months ended March 31, 2026, as compared to the same period in 2025 due to an increase in used vehicle wholesale values.
Previous wording
Same store used vehicle revenue PVR increased during the three months ended September 30, 2025, as compared to the same period in 2024, primarily due to an increase in the average selling price of used vehicles sold in our Premium Luxury segment and a shift in mix to higher-priced used vehicles.
Current wording
Same store used vehicle revenue PVR increased during the three months ended March 31, 2026, as compared to the same period in 2025, primarily due to an increase in the average selling price of used vehicles sold in all three segments and a shift in mix to higher-priced used vehicles.
Previous wording
Same store used vehicle gross profit PVR decreased during the three months ended September 30, 2025 as compared to the same period in 2024, primarily due to an increase in acquisition costs, partially offset by the adverse impact of the residual effects of the CDK outage in the prior year. Wholesale used vehicle gross profit increased during the three months ended September 30, 2025, as compared to the same period in 2024, primarily due to an increase in used vehicle wholesale values.
Current wording
Same store used vehicle gross profit PVR decreased during the three months ended March 31, 2026, as compared to the same period in 2025, primarily due to an increase in acquisition costs. Wholesale used vehicle gross profit increased during the three months ended March 31, 2026, as compared to the same period in 2025 due to an increase in used vehicle wholesale values.
Previous wording
Parts and service revenue and gross profit across all revenue types benefited from an increase in repair order volume, due in part to the prior year being adversely impacted by the CDK outage, which disrupted our sales and service processes, and an increase in technician headcount. Parts and service revenue and gross profit associated with warranty service also benefited from an increase in manufacturer recalls, improved parts and labor rates, and higher value repair orders. Parts and service revenue and gross profit associated with customer-pay service also benefited from higher value repair orders.
Current wording
Parts and service revenue and gross profit associated with customer-pay service benefited from an increase in repair order volume, due in part to an increase in technician headcount, and higher value repair orders. Wholesale parts revenue and gross profit increased primarily due to an increase in volume. Parts and service revenue associated with warranty service benefited from higher value repair orders and improved parts and labor rates. Parts and service revenue and gross profit associated with the preparation of vehicles for sale was adversely impacted by lower new and used vehicle unit volume and margin compression primarily resulting from a shift in mix to service work outsourced to third parties.
Previous wording
Same store finance and insurance revenue and gross profit increased during the three months ended September 30, 2025, as compared to the same period in 2024, due to increases in finance and insurance gross profit PVR and vehicle unit volume. Finance and insurance gross profit PVR benefited primarily from higher realized margins on vehicle service contracts. Product penetration in the prior year was adversely impacted by the residual effects of the CDK outage.
Current wording
Same store finance and insurance revenue and gross profit slightly decreased during the three months ended March 31, 2026, as compared to the same period in 2025, reflecting a decrease in vehicle unit volume, largely offset by an increase in finance and insurance gross profit PVR. Finance and insurance gross profit PVR benefited primarily from higher realized margins on vehicle service contracts.
Previous wording
Import segment income increased during the nine months ended September 30, 2025, as compared to the same period in 2024, primarily due to an increase in parts and service gross profit, largely resulting from increases in gross profit associated with warranty service of $36.3 million and customer-pay service of $11.5 million. In addition, Import segment income in the prior year was adversely impacted by a decrease in productivity as a result of the CDK outage. The increases in Import segment income were partially offset by an increase in SG&A expenses of $33.8 million, largely due to an increase in performance-driven compensation expense.
Current wording
Import segment income decreased during the three months ended March 31, 2026, as compared to the same period in 2025, primarily due to an increase in SG&A expenses of $8.0 million, a decrease in new vehicle gross profit PVR of $217, and a decrease in new vehicle unit volume. The decreases in Import segment income were partially offset by an increase in finance and insurance gross profit PVR due to higher realized margins on service contracts.
Previous wording
ANF income (loss) includes the interest and fee income generated by auto loans receivable less the interest expense associated with the debt issued or used to fund these receivables, a provision for estimated credit losses on the auto loans receivable originated or acquired, and direct expenses. Interest income on auto loans receivable is recognized over the contractual term of the related loans. ANF income (loss) does not include amortization of intercompany discounts or intercompany dealer participation fees.
Current wording
ANF income includes the interest and fee income generated by auto loans receivable less the interest expense associated with the debt issued or used to fund these receivables, a provision for estimated credit losses on the auto loans receivable originated or acquired, and direct expenses. Interest income on auto loans receivable is recognized over the contractual term of the related loans. ANF income does not include amortization of intercompany discounts or intercompany dealer participation fees.
Previous wording
We typically use non-recourse funding facilities, including warehouse facilities and asset-backed term funding transactions, as well as free cash flows from operations to fund the auto loans receivable of ANF. See Notes 6 and 9 of the Notes to Unaudited Condensed Consolidated Financial Statements for more information about our auto loans receivables and related non-recourse debt, respectively.
Current wording
We use non-recourse funding facilities, including warehouse facilities and asset-backed term funding transactions, as well as free cash flows from operations to fund the auto loans receivable of ANF. See Notes 6 and 9 of the Notes to Unaudited Condensed Consolidated Financial Statements for more information about our auto loans receivables and related non-recourse debt, respectively.
Previous wording
The following table presents the components of ANF income (loss):
Current wording
The following table presents the components of ANF income:
Previous wording
ANF recognized income of $1.5 million during the three months ended September 30, 2025, and a loss of $6.2 million during the three months ended September 30, 2024. The current year period benefited from an increase in interest and fee income from the growth in average managed receivables of $1.1 billion as we continue to grow our ANF business and increase our finance penetration rates associated with vehicles sold through our stores.
Current wording
ANF recognized income of $9.4 million during the three months ended March 31, 2026, and $0.1 million during the three months ended March 31, 2025. The current year period benefited from an increase in interest and fee income from the growth in average managed receivables of $1.1 billion as we continue to grow our ANF business and increase our finance penetration rates associated with vehicles sold through our stores. ANF continues to realize operational efficiencies as the portfolio scales, resulting in reduced direct expenses as a percentage of the managed portfolio. We expect our portfolio delinquency rates will continue to normalize and trend upward as our portfolio seasons.
Previous wording
SG&A expenses increased during the three months ended September 30, 2025, as compared to the same period in 2024, primarily due to an increase in compensation expense largely driven by an increase in performance-driven compensation expense, an increase in acquisition-related expenses of $8.0 million, andacquisitions and newly opened stores. The increases in SG&A expenses were partially offset by the divestitures we completed in the third quarters of 2024 and 2025. As a percentage of total gross profit, SG&A expenses for the three months ended September 30, 2025, were flat as compared to the same period in 2024.
Current wording
SG&A expenses increased during the three months ended March 31, 2026, as compared to the same period in 2025, primarily due to the impact of acquisitions, net of divestitures, of $10.1 million, an increase in advertising costs to support vehicle sales, and investments targeting customer experience. The increases in SG&A expenses were partially offset by a $6.7 million decrease in performance-driven compensation expense. As a percentage of total gross profit, SG&A expenses for the three months ended March 31, 2026, increased as compared to the same period in 2025, primarily due to the increases in SG&A expenses as described above and moderation of gross profit.
Previous wording
Other Income, Net includes asset impairments and gains or losses associated with business/property divestitures, among other items. During the three months ended September 30, 2025, we recognized $40 million in insurance recoveries received under our cybersecurity insurance policies for business interruption and related losses caused by the CDK outage that occurred in the prior year. During the three months ended September 30, 2024, we recognized $55.3 million related to net gains on business/property divestitures, which were partially offset by asset impairments of $7.8 million.
Current wording
Other Expense, Net generally includes asset impairments, gains or losses associated with business/property divestitures, and legal settlements, among other items.
Previous wording
Other interest expense was $133.6 million for the nine months ended September 30, 2025, compared to $136.3 million for the same period in 2024. The decrease in interest expense of $2.7 million was driven by lower average debt balances, partially offset by higher average interest rates.
Current wording
Floorplan interest expense was $41.8 million for the three months ended March 31, 2026, compared to $46.5 million for the same period in 2025. The decrease in floorplan interest expense of $4.7 million was due to lower average interest rates, partially offset by higher average vehicle floorplan balances.
Previous wording
We recognized net gains of $7.7 million and $8.4 million for the three months ended September 30, 2025 and 2024, respectively, and net gains of $16.2 million and $16.1 million for the nine months ended September 30, 2025 and 2024, respectively, related to changes in the cash surrender value of corporate-owned life insurance (“COLI”) for deferred compensation plan participants as a result of changes in market performance of the underlying investments. Gains and losses related to the COLI are substantially offset by corresponding increases and decreases, respectively, in the deferred compensation obligations, which are reflected in SG&A expenses.
Current wording
We recognized net losses of $2.9 million and $1.9 million for the three months ended March 31, 2026 and 2025, respectively, related to changes in the cash surrender value of corporate-owned life insurance (“COLI”) for deferred compensation plan participants as a result of changes in market performance of the underlying investments. Gains and losses related to the COLI are substantially offset by corresponding increases and decreases, respectively, in the deferred compensation obligations, which are reflected in SG&A expenses.
Previous wording
We recorded unrealized losses of $0.3 million and $6.7 million for the three months ended September 30, 2025 and 2024, respectively, and unrealized losses of $10.1 million and $8.5 million for the nine months ended September 30, 2025 and 2024, respectively, related to the change in fair value of the underlying securities of our minority equity investments. During the period that we hold our minority equity investments, unrealized gains and losses will be recorded as the fair market values of securities with readily determinable fair values change over time, or as observable price changes are identified for securities without readily determinable fair values. See Note 14 of the Notes to Unaudited Condensed Consolidated Financial Statements for more information.
Current wording
We recorded net gains of $54.0 million for the three months ended March 31, 2026, and net losses of $11.5 million for the three months ended March 31, 2025, related to changes in fair value of the underlying securities of our minority equity investments. During the period that we hold our minority equity investments, unrealized gains and losses will be recorded as the fair market values of securities with readily determinable fair values change over time, or as observable price changes are identified for securities without readily determinable fair values. See Note 14 of the Notes to Unaudited Condensed Consolidated Financial Statements for more information.
Previous wording
Income taxes are provided based upon our anticipated underlying annual blended federal and state income tax rates adjusted, as necessary, for any discrete tax matters occurring during the period. As we operate in various states, our effective tax rate is also dependent upon our geographic revenue mix.
Current wording
Income taxes are provided based upon our anticipated underlying annual blended federal and state income tax rates adjusted, as necessary, for any discrete tax matters occurring during the period. As we operate in various states, our effective tax rate is also dependent upon our geographic revenue mix. Our effective income tax rate was 25.5% for the three months ended March 31, 2026, and 25.0% for the three months ended March 31, 2025.
Previous wording
(1) At September 30, 2025, we had $0.4 million of letters of credit outstanding. In addition, we use the revolving credit facility under our credit agreement as a liquidity backstop for borrowings under our commercial paper program. We had $200.0 million of commercial paper notes outstanding at September 30, 2025. See Note 9 of the Notes to Unaudited Condensed Consolidated Financial Statements for more information.
Current wording
(1) At March 31, 2026, we had $0.4 million of letters of credit outstanding. In addition, we use the revolving credit facility under our credit agreement as a liquidity backstop for borrowings under our commercial paper program. We had $320.0 million of commercial paper notes outstanding at March 31, 2026. See Note 9 of the Notes to Unaudited Condensed Consolidated Financial Statements for more information.
Previous wording
In the ordinary course of business, we are required to post performance and surety bonds, letters of credit, and/or cash deposits as financial guarantees of our performance primarily relating to insurance matters. At September 30, 2025, surety bonds, letters of credit, and cash deposits totaled $112.4 million, of which $0.4 million were letters of credit. We do not currently provide cash collateral for outstanding letters of credit.
Current wording
In the ordinary course of business, we are required to post performance and surety bonds, letters of credit, and/or cash deposits as financial guarantees of our performance primarily relating to insurance matters. At March 31, 2026, surety bonds, letters of credit, and cash deposits totaled $118.8 million, of which $0.4 million were letters of credit. We do not currently provide cash collateral for outstanding letters of credit.
Previous wording
In addition, we own a significant portion of our new vehicle franchise store locations and other locations associated with our non-franchised businesses, as well as other properties. At September 30, 2025, these properties had a net book value of $2.9 billion. None of these properties are mortgaged or encumbered.
Current wording
In addition, we own a significant portion of our new vehicle franchise store locations and other locations associated with our non-franchised businesses, as well as other properties. At March 31, 2026, these properties had a net book value of $3.0 billion. None of these properties are mortgaged or encumbered.
Previous wording
From October 1, 2025, through October 21, 2025, we repurchased 0.4 million shares of common stock for an aggregate purchase price of $88.2 million (average purchase price per share of $218.76). As of October 21, 2025, $337.7 million remained available under our stock repurchase limit authorized by our Board of Directors.
Current wording
From April 1, 2026, through April 29, 2026, we repurchased 0.5 million shares of common stock for an aggregate purchase price of $90.9 million (average purchase price per share of $201.22). As of April 29, 2026, $685.1 million remained available under our stock repurchase limit authorized by our Board of Directors.
Previous wording
We purchased one Domestic store, one Import store, and two Premium Luxury stores during the nine months ended September 30, 2025. We did not purchase any stores during the nine months ended September 30, 2024.
Current wording
We did not purchase any stores during the three months ended March 31, 2026. We purchased one Domestic store and one Import store during the three months ended March 31, 2025.
Previous wording
We divested one Domestic store and one Import store during the nine months ended September 30, 2025. We divested seven Domestic stores and one Import store during the nine months ended September 30, 2024.
Current wording
We divested one Domestic store during the three months ended March 31, 2026. We did not divest any stores during the three months ended March 31, 2025.
Previous wording
In addition, we had commercial paper notes outstanding of $200.0 million at September 30, 2025, and $630.0 million at December 31, 2024.
Current wording
We had commercial paper notes outstanding of $320.0 million at March 31, 2026, and $200.0 million at December 31, 2025.
Previous wording
In May 2025, we issued non-recourse notes payable related to asset-backed term securitizations with an aggregate principal amount of $700.0 million, a weighted-average interest rate of 4.90%, and maturity dates ranging from June 2026 to September 2032. In July 2025, we repaid the outstanding balance of non-recourse notes payable of the CIG Auto Receivables Trust 2021-1.
Current wording
In January 2026, we issued non-recourse notes payable related to asset-backed term securitizations with an aggregate
Previous wording
We had net cash used in operating activities of $38.6 million for the nine months ended September 30, 2025, and net cash provided by operating activities of $164.9 million during the nine months ended September 30, 2024. This change was primarily due to a $384.5 million increase in auto loans receivable for vehicles sold through our stores as we continued to grow our AutoNation Finance business, partially offset by an increase in earnings excluding non-cash adjustments.
Current wording
We had net cash provided by operating activities of $22.2 million for the three months ended March 31, 2026, and net cash used in operating activities of $52.5 million during the three months ended March 31, 2025. This change was primarily due to a $104.7 million increase in collections on auto loans receivable, partially offset by the cash flow impact of accelerated consumer demand in the later part of March 2025.
Previous wording
Net cash used in investing activities increased during the nine months ended September 30, 2025, as compared to the same period in 2024, primarily due to a $348.4 million increase in cash used for acquisitions and a $139.9 million decrease in cash received from divestitures.
Current wording
Net cash used in investing activities decreased during the three months ended March 31, 2026, as compared to the same period in 2025, primarily due to a $69.6 million decrease in cash used for acquisitions, an $18.8 million decrease in purchases of property and equipment, and a $12.7 million increase in cash received from divestitures, partially offset by an $11.5 million increase in investments in equity securities.
Previous wording
During the nine months ended September 30, 2025, we borrowed $2.0 billion of non-recourse debt, including through the issuance of $700.0 million in non-recourse notes payable related to asset-backed term securitizations, and we repaid $1.1 billion of non-recourse debt. During the nine months ended September 30, 2024, we borrowed $1.0 billion and repaid $635.0 million of non-recourse debt.
Current wording
During the three months ended March 31, 2026, we borrowed $1.1 billion and repaid $0.9 billion of non-recourse debt. During the three months ended March 31, 2025, we borrowed $407.0 million and repaid $153.0 million of non-recourse debt.
Previous wording
Cash flows from financing activities include changes in commercial paper notes outstanding totaling net payments of $430.0 million and $90.0 million during the nine months ended September 30, 2025 and 2024, respectively.
Current wording
Cash flows from financing activities include changes in commercial paper notes outstanding reflecting net proceeds of $120.0 million and net payments of $290.0 million during the three months ended March 31, 2026 and 2025, respectively.
Showing the first 40 of 44 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Goodwill for our reporting units is tested for impairment annually as of April 30 or more frequently when events or changes in circumstances indicate that the carrying value of a reporting unit more likely than not exceeds its fair value.
Current report — wording carried from elsewhere
principal amount of $749.2 million, a weighted-average interest rate of 4.25%, and maturity dates ranging from February 2027
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
Parts and service revenue and gross profit associated with customer-pay service, the preparation of vehicles for sale, and warranty service benefited from higher value repair orders. Parts and service revenue and gross profit associated with the preparation of vehicles for sale also benefited from an increase in repair order volume due to an increase in technician headcount, as well as the adverse impact of the residual effects of the CDK outage in the prior year. Parts and service revenue and gross profit associated with warranty service also benefited from improved parts and labor rates and an increase in repair order volume due to an increase in technician headcount.
Previous report — wording carried elsewhere
ANF continues to realize operational efficiencies as the portfolio scales, resulting in reduced direct expenses as a percentage of the managed portfolio.
Previous report — wording carried elsewhere
ANF recognized income of $3.6 million during the nine months ended September 30, 2025, and a loss of $10.5 million during the nine months ended September 30, 2024. The current year period benefited from an increase in interest and fee income from the growth in average managed receivables of $877.4 million as we continue to grow our ANF business and increase our finance penetration rates associated with vehicles sold through our stores.
Previous report — wording carried elsewhere
ANF continues to realize operational efficiencies as the portfolio scales, resulting in reduced direct expenses as a percentage of the managed portfolio.
Previous report — wording carried elsewhere
While we have seen improvement in our credit loss rates resulting from the improved credit quality of our portfolio, we expect our portfolio delinquency rates will continue to normalize and trend upward as our portfolio seasons.