AUTONATION, INC.
For the period ended Jun 30, 2026. Filed Jul 31, 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.
Jun 30, 2026 · Filed Jul 31, 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 2026-03-31; filed 2026-05-01.
0001628280-26-029317
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-31.
0001628280-26-051427
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 166 previous paragraphs and 195 current paragraphs.
109 unchanged; 46 reworded; 33 added; 10 removed; 1 previous and 7 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 (33)
Current report
Certain reclassifications of amounts previously reported have been made to the accompanying Unaudited Condensed
Current report
Consolidated Financial Statements in order to maintain consistency and comparability between periods presented.
Current report
unit volume in the current year period due in part to the phasing out of EV tax credits at the end of the third quarter of 2025, as well as a decrease in gross profit per vehicle retailed (“PVR”) resulting from higher average vehicle costs. Used vehicle gross profit was adversely impacted by a decrease in used vehicle retail unit volume primarily due to supply constraints on lower-priced used vehicles. Finance and insurance gross profit was adversely impacted by a decrease in vehicle unit volume, largely offset by an increase in finance and insurance gross profit PVR reflecting higher realized margins on vehicle service contracts and higher gross profit per transaction associated with arranging customer financing. Parts and service results benefited primarily from increases in gross profit associated with customer-pay service of 7% and wholesale parts sales of 9%.
Current report
Net income for the three months ended June 30, 2026, was adversely impacted by after-tax asset impairments, net of gains on property and store dispositions, of $2.4 million and an after-tax net loss from operations of terminated stores of $3.3 million. Net income for the three months ended June 30, 2025, was adversely impacted by non-cash goodwill and franchise rights impairments and other asset adjustments totaling $122.8 million after-tax.
Current report
Under accounting standards, we chose to make a qualitative evaluation about the likelihood of goodwill impairment as of April 30, 2026, 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, we elected to perform a quantitative goodwill impairment test as of April 30, 2026, and no impairment charges resulted from this quantitative test. The fair value of the Mobile Service reporting unit substantially exceeded its carrying value as of April 30, 2026. The quantitative goodwill impairment test is dependent on many variables used to determine the fair value of a reporting unit. See Note 15 of the Notes to Unaudited Condensed Consolidated Financial
Current report
Statements for additional information on how the fair values and carrying values of our reporting units are derived for the quantitative goodwill impairment test.
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. We elected to perform quantitative franchise rights impairment tests for our annual impairment tests as of April 30, 2026, and no impairment charges resulted from these quantitative tests. We identified 16 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.
Current 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 15 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 sensitivity analyses 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, the resulting hypothetical impairment charge would have been between $3 million and $4 million. The sensitivity analyses performed are not intended to provide an estimate for every potential outcome.
Current report
As of June 30, 2026, we had 79 stores with franchise rights totaling $1.2 billion.
Current report
Same store new vehicle revenue decreased during the three months ended June 30, 2026, as compared to the same period in 2025, primarily due to a decrease in same store unit volume, particularly in the Domestic and Premium Luxury segments, largely as a result of the prior year period benefiting from accelerated consumer demand in April 2025 following tariff-related announcements and a decrease in EV unit volume in the current year period due in part to the phasing out of EV tax credits at the end of the third quarter of 2025.
Current report
Same store new vehicle gross profit PVR decreased during the three months ended June 30, 2026, as compared to the same period in 2025, reflecting an increase in average vehicle costs across all franchised dealership segments due in part to a decrease in manufacturer incentives.
Current report
Same store new vehicle gross profit PVR decreased during the six months ended June 30, 2026, as compared to the same period in 2025, reflecting an increase in average vehicle costs across all franchised dealership segments due in part to a decrease in manufacturer incentives.
Current report
The net new vehicle inventory carrying expense decreased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to a decrease in floorplan interest expense, partially offset by a decrease in floorplan assistance. Floorplan interest expense decreased as a result of lower average interest rates, partially offset by higher average vehicle floorplan balances. Floorplan assistance decreased due to lower new vehicle sales, partially offset by an increase in the average floorplan assistance per unit.
Current report
Same store used vehicle gross profit PVR decreased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to an increase in acquisition costs in the Domestic and Premium Luxury segments, reflecting a competitive vehicle sourcing market.
Current report
Same store parts and service revenue increased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to increases in revenue associated with wholesale parts sales of $66.5 million and customer-pay service of $41.7 million, partially offset by a decrease in revenue associated with the preparation of vehicles for sale of $26.2 million.
Current report
Same store finance and insurance revenue and gross profit decreased during the six months ended June 30, 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 and higher gross profit per transaction associated with arranging customer financing, partially offset by an increase in retail vehicle sales financed through AutoNation Finance.
Current report
Domestic revenue decreased during the three months ended June 30, 2026, as compared to the same period in 2025, primarily due to decreases in new and used vehicle unit volume, partially offset by increases in new vehicle revenue PVR of $1,261 and used vehicle revenue PVR of $1,674. New vehicle unit volume decreased as a result of the prior year period benefiting from accelerated consumer demand in April 2025 following tariff-related announcements and a decrease in EV unit volume in the current year period due in part to the phasing out of EV tax credits at the end of the third quarter of 2025. Used vehicle unit volume decreased due to supply constraints on lower-priced used vehicles.
Current report
Domestic segment income decreased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to decreases in new and used vehicle unit volume and a decrease in new vehicle gross profit PVR of $239 resulting from an increase in average vehicle costs driven in part by a decrease in manufacturer incentives. These decreases were partially offset by an increase in finance and insurance gross profit PVR of $223, due to higher realized margins on service contracts and higher gross profit per transaction associated with arranging customer financing, and increases in parts and service gross profit associated with customer-pay service of $7.1 million and warranty service of $8.1 million.
Current report
Import revenue increased during the three months ended June 30, 2026, as compared to the same period in 2025, primarily due to an increase in new vehicle revenue PVR of $957 due in part to a 7% shift in mix to hybrid and electric vehicles, which have relatively higher average revenue PVR, and an increase in new vehicle unit volume particularly for hybrid vehicles. Import revenue also benefited from an increase in used vehicle revenue PVR of $1,411 resulting from a shift in mix to higher-priced vehicles, including late-model and lower-mileage used vehicles, partially offset by a decrease in used retail vehicle unit volume due to supply constraints on lower-priced used vehicles.
Current report
Import segment income decreased during the three months ended June 30, 2026, as compared to the same period in 2025, primarily due to a $4.9 million increase in SG&A expenses, as well as a decrease in new vehicle gross profit PVR of $187 reflecting an increase in average vehicle costs due in part to a decrease in manufacturer incentives.
Current report
Import revenue increased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to an increase in used vehicle revenue and parts and service revenue. The increase in used vehicle revenue is due to an increase in used vehicle revenue PVR of $952 resulting from a shift in mix to higher-priced vehicles, including late-model and lower-mileage used vehicles, partially offset by a decrease in used retail vehicle unit volume due to supply constraints on lower-priced used vehicles. Parts and service revenue benefited from increases in revenue associated with wholesale and retail parts sales of $30.8 million.
Current report
Import segment income decreased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to a decrease in new vehicle gross profit PVR of $201 primarily due to an increase in vehicle acquisition costs reflecting a competitive vehicle sourcing market, as well as a decrease in new vehicle unit volume. Import segment income was also adversely impacted by a $12.9 million increase in SG&A expenses.
Current report
Premium Luxury revenue increased during the three months ended June 30, 2026, as compared to the same period in 2025, primarily due to $82.3 million in revenue from the acquisitions we completed in the third quarter of 2025 and second quarter of 2026, and increases in used vehicle revenue and parts and service revenue. Used vehicle revenue increased due to an increase in used vehicle revenue PVR of $3,536 reflecting a shift in mix to late-model and lower-mileage used vehicles, which have relatively higher average selling prices, partially offset by a decrease in used vehicle unit volume due to supply constraints on lower-priced used vehicles. Parts and service revenue benefited from an increase in revenue associated with customer-pay service of $20.4 million. The increases in Premium Luxury revenue were partially offset by a decrease in new vehicle unit volume as a result of the prior year period benefiting from accelerated consumer demand in April 2025 following tariff-related announcements and a decrease in EV unit volume in the current year period due in part to the phasing out of EV tax credits at the end of the third quarter of 2025.
Current report
Premium Luxury segment income decreased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily resulting from decreases in new and used vehicle unit volume, a decrease in new vehicle gross profit PVR of $611 reflecting an increase in average vehicle costs due in part to a decrease in manufacturer incentives, a decrease in used vehicle gross profit PVR of $213 largely due to an increase in vehicle acquisition costs reflecting a competitive vehicle sourcing market, and an $11.8 million increase in SG&A expenses. The decreases in Premium Luxury segment income were partially offset by increases in parts and service gross profit associated with customer-pay service of $18.7 million and warranty service of $8.4 million.
Current report
ANF income also benefited from a decrease in the expected credit loss rates compared to the prior year reflecting improved credit quality of new loan originations. 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.
Current report
ANF income also benefited from a decrease in the expected credit loss rates compared to the prior year reflecting improved credit quality of new loan originations. 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.
Current report
Floorplan interest expense was $85.5 million for the six months ended June 30, 2026, compared to $91.8 million for the same period in 2025. The decrease in floorplan interest expense of $6.3 million was primarily due to lower average interest rates, partially offset by higher average vehicle floorplan balances.
Current report
Other interest expense was $97.9 million for the six months ended June 30, 2026, compared to $88.5 million for the same period in 2025. The increase in interest expense of $9.4 million was driven by higher average debt balances and higher average interest rates.
Current report
Our effective income tax rate was 25.3% for the three months ended June 30, 2026, and 37.6% for the three months ended June 30, 2025. Our effective income tax rate was 25.4% for the six months ended June 30, 2026, and 29.7% for the six months ended June 30, 2025. The tax rates for the three and six months ended June 30, 2025, reflect the fact that the goodwill impairment charge recorded in the second quarter of 2025 was not deductible for income tax purposes.
Current report
(1) As limited by the maximum consolidated leverage ratio in our credit agreement.
Current report
to May 2034.
Current report
Net cash used in operating activities decreased for the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to a $201.4 million increase in collections on auto loans receivable.
Current report
During the six months ended June 30, 2026, we borrowed $2.1 billion of non-recourse debt, including issuance of $1.3 billion in non-recourse notes payable related to asset-backed term securitizations, and repaid $1.7 billion of non-recourse debt. During the six months ended June 30, 2025, we borrowed $1.3 billion of non-recourse debt, including issuance of $700.0 million in non-recourse notes payable related to asset-backed term securitizations, and repaid $690.1 million of non-recourse debt.
Removed paragraphs (10)
Previous report
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 report
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 report
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 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.
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, 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
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 report
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.
Reworded paragraphs (46)
Previous 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.
Current wording
AutoNation, Inc., through its subsidiaries, is one of the largest automotive retailers in the United States. As of June 30, 2026, we owned and operated 327 new vehicle franchises from 246 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 major brands of new vehicles that we sell, representing approximately 88% of the new vehicles that we sold during the six months ended June 30, 2026, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, BMW, Mercedes-Benz, Stellantis, and Volkswagen (including Audi and Porsche). As of June 30, 2026, we also owned and operated 52 AutoNation-branded collision centers, 24 AutoNation USA stores, 4 AutoNation-branded automotive auction operations, 3 parts distribution centers, and an auto finance company.
Previous wording
We offer a diversified range of automotive products and services, including new vehicles, used vehicles, “parts and service” (also referred to as “After-Sales”), which includes automotive repair and maintenance services as well as wholesale parts and collision businesses, and automotive “finance and insurance” products (also referred to as “Customer Financial Services”), which include vehicle service and other protection products, as well as the arranging of financing for vehicle purchases through third-party finance sources. We also offer indirect financing through our captive finance company on vehicles we sell.
Current wording
We offer a diversified range of automotive products and services, including new vehicles, used vehicles, “parts and service” (also referred to as “After-Sales”), which includes in-store and mobile automotive repair and maintenance services as well as wholesale parts and collision businesses, and automotive “finance and insurance” products (also referred to as “Customer Financial Services”), which include vehicle service and other protection products, as well as the arranging of financing for vehicle purchases through third-party finance sources. We also offer indirect financing through our captive finance company on vehicles we sell.
Previous 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.
Current wording
For the six months ended June 30, 2026, new vehicle sales accounted for 47% of our total revenue and 12% 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 18% 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
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 wording
In the second quarter of 2026, U.S. industry retail new vehicle unit sales, which includes sales in markets in which we do not compete, was relatively flat, with a decrease in April offset by increases in May and June, as compared to the same periods in the second quarter of 2025. New vehicle unit sales benefited from accelerated consumer demand in April 2025 following tariff-related announcements, and consumer demand and industry new vehicle unit sales stabilized in the later part of the second quarter of 2025.
Previous 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.
Current wording
During the three months ended June 30, 2026, we had net income of $182.1 million and diluted earnings per share of $5.39, as compared to net income of $86.4 million and diluted earnings per share of $2.26 during the same period in 2025.
Previous 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.
Current wording
Our total gross profit decreased 3% during the second quarter of 2026, compared to the same period in the prior year, driven by decreases in new vehicle gross profit of 18%, used vehicle gross profit of 8%, and finance and insurance gross profit of 3%, partially offset by an increase in parts and service gross profit of 1%, each as compared to the second 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 in April 2025 and a decrease in electric vehicle (“EV”)
Previous 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.
Current wording
Our new vehicle inventory units at June 30, 2026 and 2025, were 45,283 and 42,600, 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 $0.2 million at June 30, 2026, and $1.2 million at December 31, 2025.
Previous 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.
Current wording
Our used vehicle inventory units at June 30, 2026 and 2025, were 34,777 and 35,802, 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 $5.7 million at June 30, 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 $9.1 million at March 31, 2026, and $9.5 million at December 31, 2025.
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 $9.0 million at June 30, 2026, and $9.5 million at December 31, 2025.
Previous 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.
Current wording
As of June 30, 2026, we have $221.5 million of goodwill related to the Domestic reporting unit, $538.5 million related to the Import reporting unit, $504.6 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
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 wording
Same store new vehicle revenue decreased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to a decrease in same store unit volume largely as a result of the prior year period benefiting from accelerated consumer demand in the later part of March 2025 into April 2025 following tariff-related announcements and a decrease in EV unit volume in the current year period due in part to the phasing out of EV tax credits at the end of the third quarter of 2025.
Previous 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.
Current wording
The net new vehicle inventory carrying expense decreased during the three months ended June 30, 2026, as compared to the same period in 2025, primarily due to a decrease in floorplan interest expense, partially offset by a decrease in floorplan assistance. Floorplan interest expense decreased as a result of lower average interest rates, partially offset by higher average vehicle floorplan balances. Floorplan assistance decreased due to lower new vehicle sales, partially offset by an increase in the average floorplan assistance per unit.
Previous 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.
Current wording
Same store retail used vehicle revenue was relatively flat during the three months ended June 30, 2026, as compared to the same period in 2025, reflecting a decrease in same store retail unit volume primarily due to supply constraints on lower-priced used vehicles, largely offset by an increase in same store revenue PVR.
Previous 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.
Current wording
Same store used vehicle revenue PVR increased during the three months ended June 30, 2026, as compared to the same period in 2025, reflecting an increase in the average selling price of used vehicles across all franchised dealership segments primarily due to a 3% shift in mix to higher-priced vehicles including late-model and lower-mileage used vehicles.
Previous 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.
Current wording
Same store used vehicle gross profit PVR decreased during the three months ended June 30, 2026, as compared to the same period in 2025, primarily due to an increase in acquisition costs in the Domestic and Premium Luxury segments, reflecting a competitive vehicle sourcing market.
Previous wording
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 wording
Same store used vehicle revenue PVR increased during the six months ended June 30, 2026, as compared to the same period in 2025, reflecting an increase in the average selling price of used vehicles across all franchised dealership segments primarily due to a 3% shift in mix to higher-priced vehicles including late-model and lower-mileage used vehicles.
Previous wording
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 wording
Same store parts and service revenue increased during the three months ended June 30, 2026, as compared to the same period in 2025, primarily due to increases in revenue associated with wholesale parts sales of $40.4 million and customer-pay service of $20.2 million, partially offset by a decrease in revenue associated with the preparation of vehicles for sale of $18.4 million.
Previous 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.
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. Wholesale parts revenue and gross profit increased primarily due to an increase in volume driven by new commercial agreements. 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, margin compression, and lower value repair orders.
Previous wording
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 wording
Same store parts and service gross profit slightly increased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to an increase in gross profit associated with customer-pay service of $24.9 million and wholesale parts sales of $9.6 million, partially offset by a decrease in gross profit associated with the preparation of vehicles for sale of $21.3 million. Gross profit as a percentage of revenue decreased during the six months ended June 30, 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.
Previous wording
As we continue to grow our AutoNation Finance business and increase our finance penetration rates associated with vehicles sold through our stores, we expect that income related to arranging customer financing will shift to AutoNation Finance and that the resulting decrease in finance and insurance gross profit will be offset by greater profitability generated by our AutoNation Finance business. Interest income on financing provided through AutoNation Finance is recognized over the contractual term of the related loans. See “AutoNation Finance” for additional information.
Current wording
As we continue to grow our AutoNation Finance business and increase our finance penetration rates associated with vehicles sold through our stores, we expect that income related to arranging customer financing will shift to AutoNation Finance and that the resulting decrease in finance and insurance gross profit will be offset by greater future profitability generated by our AutoNation Finance business. Interest income on financing provided through AutoNation Finance is recognized over the contractual term of the related loans. See “AutoNation Finance” for additional information.
Previous 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.
Current wording
Same store finance and insurance revenue and gross profit decreased during the three months ended June 30, 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 and higher gross profit per transaction associated with arranging customer financing, partially offset by an increase in retail vehicle sales financed through AutoNation Finance.
Previous 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.
Current wording
Domestic segment income decreased during the three months ended June 30, 2026, as compared to the same period in 2025, primarily due to decreases in new and used vehicle unit volume, as well as a decrease in new vehicle gross profit PVR of $345 resulting from an increase in average vehicle costs driven in part by a decrease in manufacturer incentives. These decreases were partially offset by an increase in finance and insurance gross profit PVR of $159 due to higher realized margins on service contracts and higher gross profit per transaction associated with arranging customer financing, and a decrease in SG&A expenses of $7.1 million.
Previous wording
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 wording
Domestic revenue decreased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to decreases in new and used vehicle unit volume, partially offset by increases in new vehicle revenue PVR of $1,075 and used vehicle revenue PVR of $1,379. New vehicle unit volume decreased primarily due to the prior year period benefiting from accelerated consumer demand in the later part of March 2025 into April 2025 following tariff-related announcements and a decrease in EV unit volume in the current year period due in part to the phasing out of EV tax credits at the end of the third quarter of 2025. Used vehicle unit volume decreased due to supply constraints on lower-priced used vehicles.
Previous wording
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 wording
Premium Luxury segment income decreased during the three months ended June 30, 2026, as compared to the same period in 2025, primarily due to decreases in new and used vehicle unit volume, a decrease in used vehicle gross profit PVR of $266 largely due to an increase in vehicle acquisition costs reflecting a competitive vehicle sourcing market, and a $6.0 million increase in SG&A expenses, partially offset by an increase in parts and service gross profit associated with customer-pay service of $10.5 million.
Previous wording
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 wording
Premium Luxury revenue decreased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to a decrease in new vehicle unit volume as a result of the prior year period benefiting from accelerated consumer demand in the later part of March 2025 into April 2025 following tariff-related announcements and a decrease in EV unit volume in the current year period due in part to the phasing out of EV tax credits at the end of the third quarter of 2025, which was partially offset by an increase in new vehicle revenue PVR of $1,022. The decreases in Premium Luxury revenue were partially offset by revenue of $147.9 million from the acquisitions we completed in the third quarter of 2025 and second quarter of 2026, increases in parts and service revenue associated with customer-pay service of $35.7 million and parts retail and wholesale sales of $18.5 million, and a decrease in used vehicle unit volume decreased due to supply constraints on lower-priced used vehicles.
Previous 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.
Current wording
ANF income increased during the three months ended June 30, 2026, as compared to the same period in 2025, primarily due to an increase in interest and fee income from the growth in average managed receivables of $942.5 million 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.
Previous 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.
Current wording
SG&A expenses increased slightly during the three months ended June 30, 2026, as compared to the same period in 2025, primarily due to the impact of acquisitions, net of divestitures, of $8.6 million and an increase in advertising costs to support vehicle sales. The increases in SG&A expenses were largely offset by a $16.3 million decrease in performance-driven compensation expense. As a percentage of total gross profit, SG&A expenses for the three months ended June 30, 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
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.
Current wording
Floorplan interest expense was $43.7 million for the three months ended June 30, 2026, compared to $45.3 million for the same period in 2025. The decrease in floorplan interest expense of $1.6 million was due to lower average interest rates, partially offset by higher average vehicle floorplan balances.
Previous wording
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 wording
Other interest expense was $49.9 million for the three months ended June 30, 2026, compared to $46.2 million for the three months ended June 30, 2025. The increase in interest expense of $3.7 million was due to higher average debt balances, partially offset by lower average interest rates.
Previous 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.
Current wording
We recognized net gains of $16.9 million and $10.4 million for the three months ended June 30, 2026 and 2025, respectively, and net gains of $14.0 million and $8.5 million for the six months ended June 30, 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 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.
Current wording
We did not record any gains or losses for the three months ended June 30, 2026, related to changes in fair value of the underlying securities of our minority equity investments. We recognized net gains of $54.0 million during the six months ended June 30, 2026, and $1.7 million and $9.8 million for the three and six months ended June 30, 2025, respectively, 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 15 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. 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.
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.
Previous 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.
Current wording
(2) At June 30, 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 $635.0 million of commercial paper notes outstanding at June 30, 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 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.
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 June 30, 2026, surety bonds, letters of credit, and cash deposits totaled $108.7 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 March 31, 2026, these properties had a net book value of $3.0 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 June 30, 2026, these properties had a net book value of $3.1 billion. None of these properties are mortgaged or encumbered.
Previous 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.
Current wording
As of June 30, 2026, $618.9 million remained available under our stock repurchase limit authorized by our Board of Directors.
Previous 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.
Current wording
We purchased one Import store and three Premium Luxury stores during the six months ended June 30, 2026. We purchased one Domestic store and one Import store during the six months ended June 30, 2025.
Previous 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.
Current wording
We divested two Domestic stores during the six months ended June 30, 2026. We did not divest any stores during the six months ended June 30, 2025.
Previous wording
We had commercial paper notes outstanding of $320.0 million at March 31, 2026, and $200.0 million at December 31, 2025.
Current wording
We had commercial paper notes outstanding of $635.0 million at June 30, 2026, and $200.0 million at December 31, 2025.
Previous wording
Net cash flows from investing activities consist primarily of cash used in capital additions and activity from business acquisitions, business divestitures, property dispositions, originations of and collections on auto loans receivable acquired through third-party dealers, and other transactions.
Current wording
Net cash flows from investing activities consist primarily of cash used in capital additions and activity from business acquisitions, business divestitures, property dispositions, and other transactions.
Showing the first 40 of 46 pairs. Open the source sections for the rest.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
Same store retail used vehicle revenue was relatively flat during the six months ended June 30, 2026, as compared to the same period in 2025, reflecting a decrease in same store retail unit volume primarily due to supply constraints on lower-priced used vehicles, largely offset by an increase in same store revenue PVR.
Current report — wording carried from elsewhere
Same store parts and service gross profit was relatively flat during the three months ended June 30, 2026, as compared to the same period in 2025, reflecting an increase in gross profit associated with customer-pay service of $11.6 million and wholesale parts sales of $4.7 million, partially offset by a decrease in gross profit associated with the preparation of vehicles for sale of $12.5 million. Gross profit as a percentage of revenue decreased during the three months ended June 30, 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 — wording carried from elsewhere
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. Wholesale parts revenue and gross profit increased primarily due to an increase in volume driven by new commercial agreements. 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, margin compression, and lower value repair orders.
Current report — wording carried from elsewhere
ANF income increased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to an increase in interest and fee income from the growth in average managed receivables of $1.0 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.
Current report — wording carried from elsewhere
SG&A expenses increased during thesix months ended June 30, 2026, as compared to the same period in 2025, primarily due to the impact of acquisitions, net of divestitures, of $15.2 million, an increase in advertising costs to support vehicle sales, an increase in self-insured losses of $7.8 million related to unfavorable claim development and hailstorms, and investments targeting customer experience. The increases in SG&A expenses were largely offset by a $22.1 million decrease in performance-driven compensation expense. As a percentage of total gross profit, SG&A expenses increased to 69.5% during thesix months ended June 30, 2026, from 67.2% in the same period in 2025, primarily due to the increases in SG&A expenses as described above and moderation of gross profit.
Current report — wording carried from elsewhere
In June 2026, we issued non-recourse notes payable related to asset-backed term securitizations with an aggregate
Current report — wording carried from elsewhere
principal amount of $550.0 million, a weighted-average interest rate of 4.76%, and maturity dates ranging from June 2027
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
SG&A expenses increased primarily due to acquisitions, an increase in advertising costs to support vehicle sales, andinvestments targeting customer experience.