SONIC AUTOMOTIVE INC

Previous wording

Unless otherwise noted, all discussions of increases or decreases are for the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025. The following discussion of Franchised Dealerships Segment new vehicles, used vehicles, wholesale vehicles, parts, service and collision repair, and finance, insurance and other, net is on a same store basis, except where otherwise noted. All currently operating franchised dealership stores are included within the same store group as of the first full month following the first anniversary of the store’s opening or acquisition. The following discussion of EchoPark Segment used vehicles, wholesale vehicles, and finance, insurance and other, net is on a same market basis, except where otherwise noted. All currently operating EchoPark stores in a local geographic market are included within the same market group as of the first full month following the first anniversary of the market’s opening or acquisition. The following discussion of Powersports Segment new vehicles, used vehicles, wholesale vehicles, parts, service and collision repair, and finance, insurance and other, net is on a same store basis, except where otherwise noted. All currently operating stores in the Powersports Segment are included within the same store group as of the first full month following the first anniversary of the store’s opening or acquisition.

Current wording

Unless otherwise noted, all discussions of increases or decreases are for the three and nine months ended September 30, 2026 compared to the three and nine months ended September 30, 2025. The following discussion of Franchised Dealerships Segment new vehicles, used vehicles, wholesale vehicles, parts, service and collision repair, and finance, insurance and other, net is on a same store basis, except where otherwise noted. All currently operating franchised dealership stores are included within the same store group as of the first full month following the first anniversary of the store’s opening or acquisition. The following discussion of EchoPark Segment used vehicles, wholesale vehicles, and finance, insurance and other, net is on a same market basis, except where otherwise noted. All currently operating EchoPark stores in a local geographic market are included within the same market group as of the first full month following the first anniversary of the market’s opening or acquisition. The following discussion of Powersports Segment new vehicles, used vehicles, wholesale vehicles, parts, service and collision repair, and finance, insurance and other, net is on a same store basis, except where otherwise noted. All currently operating stores in the Powersports Segment are included within the same store group as of the first full month following the first anniversary of the store’s opening or acquisition.

Previous wording

We are one of the largest automotive retailers in the U.S. (as measured by reported total revenue). As a result of the way we manage our business, we had three reportable segments as of June 30, 2026: (1) the Franchised Dealerships Segment; (2) the EchoPark Segment; and (3) the Powersports Segment. For management and operational reporting purposes, we group certain businesses together that share management and inventory (principally used vehicles) into “stores.” As of June 30, 2026, we operated 107 stores in the Franchised Dealerships Segment, 18 stores in the EchoPark Segment and 20 stores in the Powersports Segment. The Franchised Dealerships Segment consists of 127 new vehicle franchises (representing 24 different brands of cars and light trucks) and 15 collision repair centers in 17 states. The EchoPark Segment consists of 18 stores in 10 states. The Powersports Segment consists of 46 franchises at 20 locations (16 full-service dealerships and four authorized retail outlets) in five states.

Current wording

We are one of the largest automotive retailers in the U.S. (as measured by reported total revenue). As a result of the way we manage our business, we had three reportable segments as of September 30, 2026: (1) the Franchised Dealerships Segment; (2) the EchoPark Segment; and (3) the Powersports Segment. For management and operational reporting purposes, we group certain businesses together that share management and inventory (principally used vehicles) into “stores.” As of September 30, 2026, we operated 108 stores in the Franchised Dealerships Segment, 18 stores in the EchoPark Segment and 20 stores in the Powersports Segment. The Franchised Dealerships Segment consists of 128 new vehicle franchises (representing 24 different brands of cars and light trucks) and 15 collision repair centers in 17 states. The EchoPark Segment consists of 18 stores in 10 states. The Powersports Segment consists of 46 franchises at 20 locations (16 full-service dealerships and four authorized retail outlets) in five states.

Previous wording

The U.S. retail automotive industry’s total new vehicle (retail and fleet combined) seasonally adjusted annual rate of unit sales volume (the “total new vehicle SAAR”) increased 2% and decreased 2% for the three and six months ended June 30, 2026, respectively, to approximately 16.3 million and 15.9 million vehicles, respectively, compared to approximately 16.0 million and 16.3 million vehicles for the three and six months ended June 30, 2025, respectively, according to the Power Information Network (“PIN”) from J.D. Power. We currently estimate the 2026 new vehicle industry volume will be between 15.5 million vehicles (a decrease of 5% compared to 2025) and 16.0 million vehicles (a decrease of 2% compared to 2025). The effects of tariffs and trade policies, interest rates, changes in consumer confidence, availability of consumer financing, manufacturer inventory production levels, incentive levels from automotive manufacturers or shifts in such levels, or timing of consumer demand in response to economic conditions, geopolitical disruptions, energy prices, natural disasters or other unforeseen circumstances could cause the actual 2026 new vehicle industry volume to vary from expectations. Many factors, including brand and geographic concentrations as well as the industry sales mix between retail and fleet new vehicle unit sales volume, have caused our past results to differ from the industry’s overall trend. Our new vehicle sales strategy focuses on our retail new vehicle sales (as opposed to fleet new vehicle sales) and, as a result, we believe it is appropriate to compare our retail new vehicle unit sales volume to the industry retail new vehicle seasonally adjusted annual rate of unit sales volume (the “retail new vehicle SAAR”) (which excludes fleet new vehicle sales). According to PIN from J.D. Power, the retail new vehicle SAAR increased 1% and decreased 4% to approximately 13.6 million and 13.2 million vehicles for the three and six months ended June 30, 2026, respectively, from approximately 13.4 million and 13.7 million vehicles for the three and six months ended June 30, 2025, respectively.

Current wording

The U.S. retail automotive industry’s total new vehicle (retail and fleet combined) seasonally adjusted annual rate of unit sales volume (the “total new vehicle SAAR”) increased 1% and decreased 1% for the three and nine months ended September 30, 2026, respectively, to approximately 16.4 million and 16.1 million vehicles, respectively, compared to approximately 16.3 million vehicles for both the three and nine months ended September 30, 2025, according to the Power Information Network (“PIN”) from J.D. Power. We currently estimate the 2026 new vehicle industry volume will be between 15.8 million vehicles (a decrease of 3% compared to 2025) and 16.2 million vehicles (a decrease of 1% compared to 2025). The effects of tariffs and trade policies, interest rates, changes in consumer confidence, availability of consumer financing, manufacturer inventory production levels, incentive levels from automotive manufacturers or shifts in such levels, or timing of consumer demand in response to economic conditions, geopolitical disruptions, energy prices, natural disasters or other unforeseen circumstances could cause the actual 2026 new vehicle industry volume to vary from expectations. Many factors, including brand and geographic concentrations as well as the industry sales mix between retail and fleet new vehicle unit sales volume, have caused our past results to differ from the industry’s overall trend. Our new vehicle sales strategy focuses on our retail new vehicle sales (as opposed to fleet new vehicle sales) and, as a result, we believe it is appropriate to compare our retail new vehicle unit sales volume to the industry retail new vehicle seasonally adjusted annual rate of unit sales volume (the “retail new vehicle SAAR”) (which excludes fleet new vehicle sales). According to PIN from J.D. Power, the retail new vehicle SAAR decreased 1% and 2% to approximately 13.5 million and 13.3 million vehicles for the three and nine months ended September 30, 2026, respectively, from approximately 13.6 million vehicles for both the three and nine months ended September 30, 2025.

Previous wording

Same store retail new vehicle revenue increased 1% during the three months ended June 30, 2026, driven by a 1% increase in average selling price per new retail unit. Same store retail new vehicle revenue decreased 4% during the six months ended June 30, 2026, primarily driven by a 5% decrease in retail new vehicle unit sales volume. Retail new vehicle gross profit decreased 17% and 15% during the three and six months ended June 30, 2026, respectively, due primarily to increased price competition as a result of increasing levels of available inventory and higher inventory invoice costs, which combined to drive lower retail new vehicle gross profit per unit. Retail new vehicle gross profit per unit decreased $559, or 16%, to $2,872 per unit during the three months ended June 30, 2026. Retail new vehicle gross profit per unit decreased $349 per unit, or 11%, to $2,934 per unit during the six months ended June 30, 2026. On a trailing quarter cost of sales basis, our reported Franchised Dealerships Segment new vehicle inventory days’ supply was approximately 56 days as of June 30, 2026, compared to 54 days as of June 30, 2025.

Current wording

Same store retail new vehicle revenue decreased 7% during the three months ended September 30, 2026, driven by a 7% decrease in retail new vehicle unit sales volume. Same store retail new vehicle revenue decreased 5% during the nine months ended September 30, 2026, primarily driven by a 6% decrease in retail new vehicle unit sales volume. Retail new vehicle gross profit decreased 7% and 13% during the three and nine months ended September 30, 2026, respectively, due primarily to increased price competition as a result of increasing levels of available inventory and higher inventory invoice costs, which combined to drive lower retail new vehicle gross profit per unit. Retail new vehicle gross profit per unit remained flat at $3,000 per unit during the three months ended September 30, 2026. Retail new vehicle gross profit per unit decreased $226 per unit, or 7%, to $2,957 per unit during the nine months ended September 30, 2026. On a trailing quarter cost of sales basis, our reported Franchised Dealerships Segment new vehicle inventory days’ supply was approximately 65 days as of September 30, 2026, compared to 51 days as of September 30, 2025.

Previous wording

Same store retail used vehicle revenue increased 9% and 5% during the three and six months ended June 30, 2026, respectively, driven primarily by a 7% and 5% increase in retail used vehicle unit sales volume, respectively. Retail used vehicle gross profit decreased 8% and 4% during the three and six months ended June 30, 2026, respectively, primarily due to lower retail used vehicle gross profit per unit. Retail used vehicle gross profit per unit decreased $214 per unit, or 13%, to $1,401 per unit during the three months ended June 30, 2026. Retail used vehicle gross profit per unit decreased $136 per unit, or 8%, to $1,467 per unit during the six months ended June 30, 2026. Same store wholesale vehicle gross loss worsened by approximately $2.0 million to a gross loss of approximately $2.8 million during the three months ended June 30, 2026, due primarily to a $456 per unit, or 404%, worsening of wholesale vehicle gross loss per unit as a result of changes in pricing and demand for vehicles at wholesale auction. Same store wholesale vehicle gross loss worsened by approximately $3.0 million, to a gross loss of approximately $4.5 million during the six months ended June 30, 2026, due primarily to a $352 per unit, or 277%, worsening of wholesale vehicle gross loss per unit as a result of changes in pricing and demand for vehicles at wholesale auction. We generally focus on maintaining Franchised Dealerships Segment used vehicle inventory days’ supply in the 25- to 35-day range, which may fluctuate seasonally, in order to limit our exposure to market pricing volatility. On a trailing quarter cost of sales basis, our reported Franchised Dealerships Segment used vehicle inventory days’ supply was approximately 35 days as of both June 30, 2026 and June 30, 2025.

Current wording

Same store retail used vehicle revenue increased 7% and 6% during the three and nine months ended September 30, 2026, respectively, driven primarily by a 3% and 4% increase in retail used vehicle unit sales volume, respectively, coupled with a 4% and 2% increase in used vehicle average selling price. Retail used vehicle gross profit remained flat and decreased 3% during the three and nine months ended September 30, 2026, respectively, primarily due to lower retail used vehicle gross profit per unit. Retail used vehicle gross profit per unit decreased $42 per unit, or 3%, to $1,506 per unit during the three months ended September 30, 2026. Retail used vehicle gross profit per unit decreased $104 per unit, or 7%, to $1,480 per unit during the nine months ended September 30, 2026. Same store wholesale vehicle gross loss worsened by approximately $2.4 million to a gross loss of approximately $5.2 million during the three months ended September 30, 2026, due primarily to a $462 per unit, or 91%, worsening of wholesale vehicle gross loss per unit as a result of changes in pricing and demand for vehicles at wholesale auction. Same store wholesale vehicle gross loss worsened by approximately $5.3 million, to a gross loss of approximately $9.7 million during the nine months ended September 30, 2026, due primarily to a $409 per unit, or 166%, worsening of wholesale vehicle gross loss per unit as a result of changes in pricing and demand for vehicles at wholesale auction. We generally focus on maintaining Franchised Dealerships Segment used vehicle inventory days’ supply in the 25- to 35-day range, which may fluctuate seasonally, in order to limit our exposure to market pricing volatility. On a trailing quarter cost of sales basis, our reported Franchised Dealerships Segment used vehicle inventory days’ supply was approximately 34 days as of both September 30, 2026 and September 30, 2025.

Previous wording

Same store Fixed Operations revenue increased 3% and 4% during the three and six months ended June 30, 2026, respectively, driven primarily by increased service capacity as a result of additional technician headcount, and higher parts and labor costs that were passed along to consumers. Same store Fixed Operations gross profit increased 2% and 4% during the three and six months ended June 30, 2026, respectively, driven primarily by higher customer pay revenue contribution and higher warranty and internal, sublet and other gross margin contribution. Same store Fixed Operations gross margin decreased 30 basis points, to 51.0% during the three months ended June 30, 2026, and increased 10 basis points, to 51.1%, during the six months ended June 30, 2026.

Current wording

Same store Fixed Operations revenue increased 1% and 3% during the three and nine months ended September 30, 2026, respectively, driven primarily by increased service capacity as a result of additional technician headcount, and higher parts and labor costs that were passed along to consumers. Same store Fixed Operations gross profit increased 1% and 3% during the three and nine months ended September 30, 2026, respectively, driven primarily by higher customer pay revenue contribution and higher warranty and internal, sublet and other gross margin contribution. Same store Fixed Operations gross margin increased 20 basis points, to 51.4% during the three months ended September 30, 2026, and increased 10 basis points, to 51.2%, during the nine months ended September 30, 2026.

Previous wording

Same store F&I revenue decreased 1% and remained flat during the three and six months ended June 30, 2026, respectively, driven by a 4% decrease and 1% increase in F&I gross profit per retail unit, respectively, partially offset by a 3% increase and 1% decrease in retail new and used vehicle unit sales volume, respectively. Same store F&I gross profit per retail unit decreased $108 per unit, or 4%, to $2,619 per unit during the three months ended June 30, 2026 primarily due to lower penetration rates for other aftermarket product contracts, which was partially offset by a higher penetration rate for finance contracts, higher gross profit per service contract, and changes to our F&I product cost structure. Same store F&I gross profit per retail unit increased $20 per unit, or 1%, to $2,607 per unit during the six months ended June 30, 2026, due primarily to higher gross profit per finance, service and other aftermarket contracts, increases in finance contract and service contract penetration rates, and changes to our F&I product cost structure.

Current wording

Same store F&I revenue remained flat during both the three and nine months ended September 30, 2026, respectively, driven by a 2% increase and 1% increase in F&I gross profit per retail unit, respectively, partially offset by a 2% decrease and 1% decrease in retail new and used vehicle unit sales volume, respectively. Same store F&I gross profit per retail unit increased $63 per unit, or 2%, to $2,630 per unit during the three months ended September 30, 2026 primarily due to higher gross profit per service contract and changes to our F&I product cost structure. Same store F&I gross profit per retail unit increased $35 per unit, or 1%, to $2,615 per unit during the nine months ended September 30, 2026, due primarily to higher gross profit per service and other aftermarket contracts, increases in finance contract and service contract penetration rates, and changes to our F&I product cost structure.

Previous wording

Same market total revenues increased 15% and 9% during the three and six months ended June 30, 2026, respectively, attributable to a 16% and 9% increase in total vehicle unit sales volume (retail used vehicles plus wholesale used vehicles) in the three and six months ended June 30, 2026, respectively. Same market total gross profit increased 3% and 5% during the three and six months ended June 30, 2026, respectively, primarily driven by the increase in total vehicle unit sales volume in both the three and six months ended June 30, 2026, partially offset by a 12% and 5% decrease in combined used and F&I gross profit per retail unit during the three and six months ended June 30, 2026, respectively.

Current wording

Same market total revenues increased 14% and 11% during the three and nine months ended September 30, 2026, respectively, attributable to a 20% and 12% increase in total vehicle unit sales volume (retail used vehicles plus wholesale used vehicles) in the three and nine months ended September 30, 2026, respectively. Same market total gross profit increased 8% and 6% during the three and nine months ended September 30, 2026, respectively, primarily driven by the increase in total vehicle unit sales volume in both the three and nine months ended September 30, 2026, partially offset by decreases in used vehicle and wholesale vehicle average selling prices during the three and nine months ended September 30, 2026.

Previous wording

Same market retail used vehicle revenue increased 17% and 10% during the three and six months ended June 30, 2026, respectively, driven primarily by a 17% and 10% increase in retail used vehicle unit sales volume in the three and six months ended June 30, 2026, respectively. F&I revenue increased 4% during both the three and six months ended June 30, 2026, driven primarily by the increase in retail used vehicle unit sales during the three and six months ended June 30, 2026, partially offset by an 11% and 5% decrease in F&I gross profit per unit in the three and six months ended June 30, 2026, respectively. Same market combined retail used vehicle and F&I gross profit per unit decreased $466 per unit, or 12%, to $3,303 for the three months ended June 30, 2026, due primarily to decreases in both used vehicle gross profit per unit and F&I gross profit per unit. Same market combined retail used vehicle and F&I gross profit per unit decreased $181 per unit, or 5%, to $3,410 for the six months ended June 30, 2026, due primarily to decreases in both used vehicle gross profit per unit and F&I gross profit per unit.

Current wording

Same market retail used vehicle revenue increased 16% and 12% during the three and nine months ended September 30, 2026, respectively, driven primarily by a 22% and 13% increase in retail used vehicle unit sales volume in the three and nine months ended September 30, 2026, respectively, partially offset by a 5% and 1% decrease in used vehicle average selling price. F&I revenue increased 3% and 4% during the three and nine months ended September 30, 2026, respectively, driven primarily by the increase in retail used vehicle unit sales during the three and nine months ended September 30, 2026, partially offset by a 15% and 8% decrease in F&I gross profit per unit in the three and nine months ended September 30, 2026, respectively. Same market combined retail used vehicle and F&I gross profit per unit decreased $396 per unit, or 12%, to $2,979 for the three months ended September 30, 2026, due primarily to a decrease in F&I gross profit per unit. Same market combined retail used vehicle and F&I gross profit per unit decreased $259 per unit, or 7%, to $3,264 for the nine months ended September 30, 2026, due primarily to a decrease in F&I gross profit per unit.

Previous wording

Same market wholesale vehicle gross profit improved by approximately $0.5 million and $1.0 million during the three and six months ended June 30, 2026, respectively, primarily due to a 75% and 109% increase in wholesale vehicle gross profit per unit during the three and six months ended June 30, 2026, respectively. We generally focus on maintaining EchoPark Segment used vehicle inventory days’ supply in the 30- to 40-day range, which may fluctuate seasonally, in order to limit our exposure to market pricing volatility. On a trailing quarter cost of sales basis, our reported EchoPark Segment used vehicle inventory days’ supply was approximately 47 and 41 days as of June 30, 2026 and 2025, respectively. The higher days’ supply as of June 30, 2026, reflected a deliberate increase in inventory levels to support higher retail unit sales. This differed from a typical quarter, during which we generally maintain inventory within our targeted 30- to 40-day range.

Current wording

Same market wholesale vehicle gross profit improved by approximately $0.2 million and $1.2 million during the three and nine months ended September 30, 2026, respectively, primarily due to a 40% and 83% increase in wholesale vehicle gross profit per unit during the three and nine months ended September 30, 2026, respectively. We generally focus on maintaining EchoPark Segment used vehicle inventory days’ supply in the 30- to 40-day range, which may fluctuate seasonally, in order to limit our exposure to market pricing volatility. On a trailing quarter cost of sales basis, our reported EchoPark Segment used vehicle inventory days’ supply was approximately 41 and 37 days as of September 30, 2026 and 2025, respectively. The higher days’ supply as of September 30, 2026, reflected a deliberate increase in inventory levels to support higher retail unit sales.

Previous wording

Same store retail new vehicle revenue increased 6% and 11% during the three and six months ended June 30, 2026, respectively, driven by a 3% and 8% increase in retail new vehicle unit sales volume, respectively, coupled with a 3% increase in retail new vehicle average selling price during both the three and six months ended June 30, 2026. Retail new vehicle gross profit increased 8% and 12% during the three and six months ended June 30, 2026, respectively, as a result of the increase in retail new vehicle unit sales volume and a 4% and 5% increase in same store retail new vehicle gross profit per unit, respectively. Retail new vehicle gross profit per unit increased $103 per unit, or 4%, to $2,925 per unit for the three months ended June 30, 2026. Retail new vehicle gross profit per unit increased $134 per unit, or 5%, to $2,910 per unit for the six months ended June 30, 2026. On a trailing quarter cost of sales basis, our reported Powersports Segment new vehicle inventory days’ supply was approximately 160 and 135 days as of June 30, 2026 and 2025, respectively, varying based on manufacturer production levels and consumer demand.

Current wording

Same store retail new vehicle revenue increased 9% and 10% during the three and nine months ended September 30, 2026, respectively, driven by a 6% and 7% increase in retail new vehicle unit sales volume, respectively, coupled with a 2% increase in retail new vehicle average selling price during both the three and nine months ended September 30, 2026. Retail new vehicle gross profit decreased 3% in the three months ended September 30, 2026, primarily driven by an 8% decrease in retail new gross profit per unit, partially offset by a 6% increase in retail new vehicle unit sales volume. Retail new vehicle gross profit increased 6% during the nine months ended September 30, 2026, primarily driven by a 7% increase in retail new vehicle unit sales volume. Retail new vehicle gross profit per unit decreased $306 per unit, or 8%, to $3,349 per unit for the three months ended September 30, 2026. Retail new vehicle gross profit per unit decreased $50 per unit, or 2%, to $3,090 per unit for the nine months ended September 30, 2026. On a trailing quarter cost of sales basis, our reported Powersports Segment new vehicle inventory days’ supply was approximately 83 and 75 days as of September 30, 2026 and 2025, respectively, varying based on manufacturer production levels and consumer demand.

Previous wording

Same store used vehicle revenue increased 40% and 54%during thethree and six months ended June 30, 2026, respectively, driven primarily by a 19% and 34% increase in retail used vehicle unit sales volume, respectively, and a 17% and 15% increase in average used vehicle selling price duringthe three and six months ended June 30, 2026, respectively. Retail used vehicle gross profit increased 25% and 42% during the three and six months ended June 30, 2026, respectively, driven by the increase in used vehicle unit sales volume and a 4% and 5% increase in retail used vehicle gross profit per unit, respectively. Retail used vehicle gross profit per unit increased $78 per unit, or 4%, to $2,092 per unit for the three months ended June 30, 2026. Retail used vehicle gross profit per unit increased $92 per unit, or 5%, to $2,021 per unit for the six months ended June 30, 2026. On a trailing quarter cost of sales basis, our reported Powersports Segment used vehicle inventory days’ supply was approximately 103 and 102 days as of June 30, 2026 and 2025, respectively.

Current wording

Same store used vehicle revenue increased 22% and 36%during thethree and nine months ended September 30, 2026, respectively, driven primarily by a 21% and 16% increase in average used vehicle selling price, respectively, coupled with a 1% and 17% increase in retail used vehicle unit sales volume, respectively. Retail used vehicle gross profit decreased 14% in the three months ended September 30, 2026, driven by a 12% decrease in retail used vehicle gross profit per unit. Retail used vehicle gross profit increased 13% during the nine months ended September 30, 2026, driven by a 16% increase in average used vehicle selling price, partially offset by a 3% decrease in retail used vehicle gross profit per unit. Retail used vehicle gross profit per unit decreased $251 per unit, or 12%, to $1,797 per unit for the three months ended September 30, 2026. Retail used vehicle gross profit per unit decreased $67 per unit, or 3%, to $1,923 per unit for the nine months ended September 30, 2026. On a trailing quarter cost of sales basis, our reported Powersports Segment used vehicle inventory days’ supply was approximately 65 and 45 days as of September 30, 2026 and 2025, respectively.

Previous wording

Same store Fixed Operations revenue increased 5% and 7% during the three and six months ended June 30, 2026, respectively, while gross profit increased 12% and 11%, respectively. These increases were primarily driven by higher repair order volume. Fixed Operations gross margin increased 330 basis points to 49.8% during the three months ended June 30, 2026, primarily due to a more favorable revenue mix, including increased contribution from higher-margin internal, sublet, and other services, as well as improved gross margins on customer pay repairs, warranty work, wholesale parts, and internal, sublet and other repairs. Fixed Operations gross margin increased 150 basis points to 49.1% during the six months ended June 30, 2026, primarily due to a more favorable revenue mix, including increased contribution from high-margin internal, sublet, and other services, as well as improved gross margins on customer pay repairs, wholesale parts, and internal, sublet and other repairs.

Current wording

Same store Fixed Operations revenue decreased 3% and gross profit remained flat during the three months ended September 30, 2026, primarily driven by lower volume in customer pay contracts. Fixed Operations revenue increased 1% and gross profit increased 5% during the nine months ended September 30, 2026, primarily driven by higher parts and labor costs that were passed along to customers. Fixed Operations gross margin increased 130 basis points to 48.0% during the three months ended September 30, 2026, primarily due to a more favorable revenue mix, including improved gross margins on wholesale parts and internal, sublet and other repairs. Fixed Operations gross margin increased 140 basis points to 48.5% during the nine months ended September 30, 2026, primarily due to a more favorable revenue mix, including improved gross margins on customer pay repairs, wholesale parts, and internal, sublet and other repairs.

Previous wording

Same store F&I revenue increased 20% and 24% during thethree and six months ended June 30, 2026, respectively, driven primarily by a 9% and 18% increase in combined retail new and used vehicle unit sales volume, coupled with increases in F&I gross profit per retail unit for the three and six months ended June 30, 2026. F&I gross profit per retail unit increased $105 per unit, or 12%, to $995 per unit for the three months ended June 30, 2026. F&I gross profit per retail unit increased $40 per unit, or 4%, to $955 per unit for the six months ended June 30, 2026.

Current wording

Same store F&I revenue increased 6% and 13% during thethree and nine months ended September 30, 2026, respectively, driven primarily by a 4% and 11% increase in combined retail new and used vehicle unit sales volume, coupled with increases in F&I gross profit per retail unit for the three and nine months ended September 30, 2026. F&I gross profit per retail unit increased $22 per unit, or 2%, to $1,088 per unit for the three months ended September 30, 2026. F&I gross profit per retail unit increased $28 per unit, or 3%, to $1,012 per unit for the nine months ended September 30, 2026.

Previous wording

The following table depicts the breakdown of our Franchised Dealerships Segment new vehicle revenues by brand for the three and six months ended June 30, 2026 and 2025:

Current wording

The following table depicts the breakdown of our Franchised Dealerships Segment new vehicle revenues by brand for the three and nine months ended September 30, 2026 and 2025:

Previous wording

Retail new vehicle revenue decreased $118.7 million, or 4%, due primarily to a 5% decrease in retail new vehicle unit sales volume, offset partially by a 2% increase in retail new vehicle average selling prices. Retail new vehicle gross profit decreased $28.0 million, or 15%, due primarily to an 11% decrease in retail new vehicle gross profit per unit and the decrease in retail new vehicle unit sales volume. Retail new vehicle gross profit per unit decreased $349 per unit to $2,934 per unit, due primarily to increased price competition resulting from higher inventory availability and higher inventory invoice costs.

Current wording

Retail new vehicle revenue decreased $242.3 million, or 5%, due primarily to a 6% decrease in retail new vehicle unit sales volume, offset partially by a 1% increase in retail new vehicle average selling prices. Retail new vehicle gross profit decreased $33.9 million, or 13%, due primarily to a 7% decrease in retail new vehicle gross profit per unit, coupled with the 6% decrease in retail new vehicle unit sales volume. Retail new vehicle gross profit per unit decreased $226, or 7%, per unit to $2,957 per unit, due primarily to increased price competition resulting from higher inventory availability and higher inventory invoice costs.

Previous wording

Retail used vehicle revenue increased $62.9 million, or 9%, driven primarily by a 7% increase in retail used vehicle unit sales volume and anincrease in revenue per unit of 2%. Retail used vehicle gross profit decreased $3.0 million, or 8%, driven primarily by a 13% decrease in retail used vehicle gross profit per unit, partially offset by a 7% increase in retail used vehicle unit sales volume.

Current wording

Retail used vehicle revenue increased $129.1 million, or 6%, driven primarily by a 4% increase in retail used vehicle unit sales volume and anincrease inretail used vehicle revenue per unit of 2%. Retail used vehicle gross profit decreased $3.3 million, or 3%, driven primarily by a $104 per unit, or 7%, decrease in retail used vehicle gross profit per unit, partially offset by a 4% increase in retail used vehicle unit sales volume.

Previous wording

Wholesale vehicle revenue decreased approximately $14.7 million, or 26%, driven primarily by a 19% decrease in wholesale vehicle unit sales volume and a 9% decrease in revenue per unit. Wholesale vehicle gross loss worsened by approximately $2.0 million, driven primarily by a $456 worsening of wholesale vehicle gross loss per unit.

Current wording

Wholesale vehicle revenue decreased approximately $4.9 million, or 10%, driven primarily by a 3% decrease in wholesale vehicle unit sales volume and a 7% decrease in revenue per unit. Wholesale vehicle gross loss worsened by approximately $2.4 million, driven primarily by a $462 worsening of wholesale vehicle gross loss per unit.

Previous wording

Wholesale vehicle revenue decreased approximately $27.1 million, or 25%, driven primarily by a 22% decrease in wholesale vehicle unit sales volume and a 4% decrease in revenue per unit. Wholesale vehicle gross loss worsened by approximately $3.0 million, driven primarily by a $352 worsening of wholesale vehicle gross loss per unit.

Current wording

Wholesale vehicle revenue decreased approximately $31.8 million, or 20%, driven primarily by a 16% decrease in wholesale vehicle unit sales volume and a 5% decrease in revenue per unit. Wholesale vehicle gross loss worsened by approximately $5.3 million, driven primarily by a $409 worsening of wholesale vehicle gross loss per unit.

Previous wording

Fixed Operations revenue increased approximately $13.1 million, or 3%, and Fixed Operations gross profit increased approximately $5.5 million, or 2%. Customer pay revenue increased approximately $7.2 million, or 3%, and customer pay gross profit increased approximately $1.8 million, or 1%. Warranty revenue increased approximately $2.0 million, or 2%, and warranty gross profit increased approximately $1.7 million, or 3%. Wholesale parts revenue increased approximately $2.3 million, or 5%, and wholesale parts gross profit increased approximately $0.2 million, or 3%. Internal, sublet and other revenue increased approximately $1.6 million, or 1%, and internal, sublet and other gross profit increased approximately $1.8 million, or 3%. Our Fixed Operations business has benefited from a higher level of vehicle recalls and warranty repairs, as well as additional technician headcount that has driven an increase in customer pay service capacity.

Current wording

Fixed Operations revenue increased approximately $4.7 million, or 1%, and Fixed Operations gross profit increased approximately $3.2 million, or 1%. Customer pay revenue increased approximately $3.9 million, or 2%, and customer pay gross profit increased approximately $0.5 million, or remained flat. Warranty revenue decreased approximately $0.4 million, or remained flat and warranty gross profit increased approximately $0.8 million, or 1%. Wholesale parts revenue increased approximately $0.4 million, or 1%, and wholesale parts gross profit remained flat. Internal, sublet and other revenue increased approximately $0.8 million, or 1%, and internal, sublet and other gross profit increased approximately $1.9 million, or 3%. Our Fixed Operations business has benefited from a higher level of vehicle recalls, as well as additional technician headcount that has driven an increase in customer pay service capacity.

Previous wording

Fixed Operations revenue increased approximately $34.5 million, or 4%, and Fixed Operations gross profit increased approximately $18.1 million, or 4%. Customer pay revenue increased approximately $19.5 million, or 4%, and customer pay gross profit increased approximately $7.8 million, or 3%. Warranty revenue increased approximately $6.9 million, or 4%, and warranty gross profit increased approximately $5.3 million, or 5%. Wholesale parts revenue increased approximately $3.9 million, or 4%, and wholesale parts gross profit increased approximately $0.1 million, or 1%. Internal, sublet and other revenue increased approximately $4.2 million, or 2%, and internal, sublet and other gross profit increased approximately $4.9 million, or 4%. Our Fixed Operations business has benefited from a higher level of vehicle recalls and warranty repairs, as well as additional technician headcount that has driven an increase in customer pay service capacity.

Current wording

Fixed Operations revenue increased approximately $39.1 million, or 3%, and Fixed Operations gross profit increased approximately $21.3 million, or 3%. Customer pay revenue increased approximately $23.5 million, or 4%, and customer pay gross profit increased approximately $8.3 million, or 2%. Warranty revenue increased approximately $6.5 million, or 3%, and warranty gross profit increased approximately $5.9 million, or 4%. Wholesale parts revenue increased approximately $4.4 million, or 3%, and wholesale parts gross profit increased approximately $0.1 million, or remained flat. Internal, sublet and other revenue increased approximately $4.7 million, or 1%, and internal, sublet and other gross profit increased approximately $7.0 million, or 4%. Our Fixed Operations business has benefited from a higher level of vehicle recalls and warranty repairs, as well as additional technician headcount that has driven an increase in customer pay service capacity.

Previous wording

Finance contract revenue for combined retail new and used vehicles increased 3%, due primarily to a 210 basis point increase in finance contract penetration rate and a 1% increase in gross profit per finance contract. Service contract revenue for combined retail new and used vehicles increased 5%, due primarily to a 5% increase in gross profit per service contract and a 40 basis point increase in service contract penetration rate. Aftermarket product revenue for combined retail new and used vehicles decreased 8%, due primarily to a 1,660 basis point decrease in the aftermarket product penetration rate and an 11% decrease in total aftermarket product contracts, partially offset by a 4% increase in gross profit per other aftermarket product contract.

Current wording

Finance contract revenue for combined retail new and used vehicles decreased 4%, due primarily to a 4% decrease in finance contract volume, a 100 basis point decrease in finance contract penetration rate, and a 1% decrease in gross profit per finance contract. Service contract revenue for combined retail new and used vehicles increased 9%, due primarily to a 10% increase in gross profit per service contract and a 100 basis point increase in service contract penetration rate. Aftermarket product revenue for combined retail new and used vehicles decreased 15%, due primarily to a 2,590 basis point decrease in aftermarket product penetration rate, which helped drive a 19% decrease in aftermarket product sales volume, partially offset by a 5% increase in gross profit per aftermarket product.

Previous wording

F&I revenue increased $0.7 million, due primarily to a 1% increase in F&I gross profit per retail unit and partially offset by a 1% decrease in total combined retail new and used vehicle unit sales volume. F&I gross profit per retail unit increased $20 per unit, or 1%, to $2,607 per unit, due primarily to higher gross profit per finance, service and other aftermarket contracts, increases in finance contract and service contract penetration rates, and changes to our F&I product cost structure.

Current wording

F&I revenue increased $0.7 million, or remained flat, due primarily to a 1% increase in F&I gross profit per retail unit, partially offset by a 1% decrease in total combined retail new and used vehicle unit sales volume. F&I gross profit per retail unit increased $35 per unit, to $2,615 per unit, due primarily to changes to our F&I product cost structure, higher gross profit per finance contract, service contract, and aftermarket product, and increases in finance contract and service contract penetration rates, offset by a lower penetration rate for aftermarket products.

Previous wording

Finance contract revenue for combined retail new and used vehicles increased 5%, due primarily to a 5% increase in finance contract volume and a 130 basis point increase in finance contract penetration rate. Service contract revenue for combined retail new and used vehicles increased 8%, due primarily to a 7% increase in gross profit per service contract and a 1% increase in service contract volume, partially offset by an 80 basis point decrease in service contract penetration rate. Aftermarket product revenue for combined retail new and used vehicles decreased 10%, due primarily to a 2,730 basis point decrease in aftermarket product penetration rate, partially offset by a 6% increase in gross profit per aftermarket product contract.

Current wording

Finance contract revenue for combined retail new and used vehicles remained flat, due primarily to a 100 basis point increase in finance contract penetration rate, partially offset by the decrease in total combined new and used retail sales units. Service contract revenue for combined retail new and used vehicles increased 6%, due primarily to a 6% increase in gross profit per service contract and a 60 basis point increase in service contract penetration rate, partially offset by the decrease in total combined new and used retail sales units. Aftermarket product revenue for combined retail new and used vehicles decreased 10%, due primarily to a 1,980 basis point decrease in the aftermarket product penetration rate, which helped drive a 14% decrease in total aftermarket product sales volume, partially offset by a 4% increase in gross profit per aftermarket product.

Previous wording

Retail used vehicle revenue increased $71.5 million, or 17%, due primarily to a 17% increase in retail used vehicle unit sales volume, partially offset by a$74 decrease in retail used vehicle revenue per unit. Combined retail used vehicle gross profit and F&I revenue increased $1.6 million, or 3%, due primarily tothe increase in retail used vehicle unit sales volume, offset partially by a 12% decrease in combined retail used vehicle and F&I gross profit per unit. The decreasein combined retail used vehicle and F&I gross profit per unit was due primarily to lower F&I penetration rates and lower retail used vehicle gross profit per unit, offset partially by changes to our F&I product cost structure, improvements in inventory acquisition costs as a result of sourcing a higher percentage of inventory from non-auction sources, and expanding our inventory to include older vehicles, which typically earn a higher gross profit per unit.

Current wording

Retail used vehicle revenue increased $70.7 million, or 16%, due primarily to a 22% increase in retail used vehicle unit sales volume, partially offset by a$1,260, or 5%, decrease in retail used vehicle revenue per unit. Combined retail used vehicle gross profit and F&I revenue increased $4.1 million, or 7%, due primarily tothe increase in retail used vehicle unit sales volume, offset partially by a $396, or 12%, decrease in combined retail used vehicle and F&I gross profit per unit. The decreasein combined retail used vehicle and F&I gross profit per unit was due primarily to a $493 decrease in F&I gross profit per unit, driven by lower F&I penetration rates, offset partially by higher retail used vehicle gross profit per unit as well as changes to our F&I product cost structure, improvements in inventory acquisition costs as a result of sourcing a higher percentage of inventory from non-auction sources, and expanding our inventory to include older vehicles, which typically earn a higher gross profit per unit.

Previous wording

Retail used vehicle revenue increased $89.6 million, or 10%, due primarily to a 10% increase in retail used vehicle unit sales volume, along with a $96 increase in retail used vehicle revenue per unit. Combined retail used vehicle gross profit and F&I revenue increased $5.1 million, or 4%, due primarily to the increase in retail used vehicle unit sales volume, offset partially by a 5% decrease in combined retail used vehicle and F&I gross profit per unit. The decreasein combined retail used vehicle and F&I gross profit per unit was due primarily to lower F&I penetration rates for service contracts and aftermarket product contracts and lower retail used vehicle gross profit per unit, offset partially by changes to our F&I product cost structure, improvements in inventory acquisition costs as a result of sourcing a higher percentage of inventory from non-auction sources, and expanding our inventory to include older vehicles, which typically earn a higher gross profit per unit.

Current wording

Retail used vehicle revenue increased $160.4 million, or 12%, due primarily to a 13% increase in retail used vehicle unit sales volume, partially offset by a $328, or 1%, decrease in retail used vehicle revenue per unit. Combined retail used vehicle gross profit and F&I revenue increased $9.2 million, or 5%, due primarily to the increase in retail used vehicle unit sales volume, offset partially by a$259, or 7%, decrease in combined retail used vehicle and F&I gross profit per unit. The decreasein combined retail used vehicle and F&I gross profit per unit was due primarily to a $273 decrease in F&I gross profit per unit, driven by lower F&I penetration rates, offset partially by higher retail used vehicle gross profit per unit as well as changes to our F&I product cost structure, improvements in inventory acquisition costs as a result of sourcing a higher percentage of inventory from non-auction sources, and expanding our inventory to include older vehicles, which typically earn a higher gross profit per unit.

Previous wording

Wholesale vehicle revenue increased approximately $0.4 million, or 2%, due primarily to a 12% increase in wholesale vehicle unit sales volume, offset partially by a 9% decrease in wholesale vehicle revenue per unit. As we adjust the inventory mix of nearly-new versus older model year vehicles sold at retail going forward, the levels of wholesale vehicle revenue and gross profit may vary.

Current wording

Wholesale vehicle revenue increased approximately $0.8 million, or 3%, due primarily to an 8% increase in wholesale vehicle unit sales volume, offset partially by a 5% decrease in wholesale vehicle revenue per unit. As we adjust the inventory mix of nearly-new versus older model year vehicles sold at retail going forward, the levels of wholesale vehicle revenue and gross profit may vary.

Previous wording

Wholesale vehicle revenue increased approximately $0.4 million, or 1%, due primarily to a 6% increase in wholesale vehicle unit sales volume, offset partially by a 4% decrease in wholesale vehicle revenue per unit. As we adjust the inventory mix of nearly-new versus older model year vehicles sold at retail going forward, the levels of wholesale vehicle revenue and gross profit may vary.

Current wording

Wholesale vehicle revenue increased approximately $1.1 million, or 1%, due primarily to a 6% increase in wholesale vehicle unit sales volume, offset partially by a 5% decrease in wholesale vehicle revenue per unit. As we adjust the inventory mix of nearly-new versus older model year vehicles sold at retail going forward, the levels of wholesale vehicle revenue and gross profit may vary.

Previous wording

Retail used vehicle revenue increased 40%, due primarily to a 19% increase in retail used vehicle unit sales volume, and a 17% increase in retail used vehicle average selling prices. Retail used vehicle gross profit increased 25% as a result of higher retail used vehicle unit sales volume and higher retail used vehicle gross profit per unit. Retail used vehicle gross profit per unit increased $78 per unit, or 4%, to $2,092 per unit.

Current wording

Retail used vehicle revenue increased 36%, due primarily to a 17% increase in retail used vehicle unit sales volume, and a 16% increase in retail used vehicle average selling prices. Retail used vehicle gross profit increased $0.7 million, or 13%, as a result of higher retail used vehicle unit sales volume. Retail used vehicle gross profit per unit decreased $67 per unit, or 3%, to $1,923 per unit.

Previous wording

Wholesale vehicle revenue increased $0.5 million and wholesale vehicle gross loss worsened by $0.1 million, driven by changes in wholesale unit sales volume and wholesale gross loss per unit.

Current wording

Wholesale vehicle revenue remained flat and wholesale vehicle gross loss improved by $0.1 million, driven by changes in wholesale unit sales volume and wholesale gross loss per unit.

Previous wording

Wholesale vehicle revenue increased $0.2 million and wholesale vehicle gross loss worsened by $0.1 million, driven by changes in wholesale unit sales volume and wholesale gross loss per unit.

Current wording

Wholesale vehicle revenue increased $0.2 million, or 10%, and wholesale vehicle gross loss remained flat, driven by changes in revenue per unit, partially offset by wholesale unit sales volume and wholesale gross loss per unit.

Previous wording

Fixed Operations revenue increased approximately $0.5 million, or 5%, and Fixed Operations gross profit increased approximately $0.6 million, or 12%. Customer pay revenue increased approximately $0.1 million, or 5%, and customer pay gross profit increased approximately $0.2 million, or 25%. Warranty revenue decreased approximately $0.1 million, or 7%, and warranty gross profit decreased approximately $0.1 million, or 10%. Wholesale parts revenue increased approximately $0.1 million, or 100%, and wholesale parts gross profit increased approximately $0.1 million, or 100%. Internal, sublet and other revenue increased approximately $0.4 million, or 6%, and internal, sublet and other gross profit increased approximately $0.4 million, or 13%.

Current wording

Fixed Operations revenue decreased approximately $0.6 million, or 3%, and Fixed Operations gross profit remained flat. Customer pay revenue decreased approximately $0.2 million, or 6%, and customer pay gross profit decreased approximately $0.2 million, or 13%. Warranty revenue increased approximately $0.2 million, or 14%, and warranty gross profit remained flat. Wholesale parts revenue increased approximately $0.1 million, or 50%, and wholesale parts gross profit increased approximately $0.1 million, or 100%. Internal, sublet and other revenue decreased approximately $0.7 million, or 4%, and internal, sublet and other gross profit increased approximately $0.1 million, or 1%.

Previous wording

Fixed Operations revenue increased approximately $1.2 million, or 7%, and Fixed Operations gross profit increased approximately $0.9 million, or 11%. Customer pay revenue increased approximately $0.1 million, or 3%, and customer pay gross profit increased approximately $0.4 million, or 31%. Warranty revenue decreased approximately $0.2 million, or 7%, and warranty gross profit decreased approximately $0.1 million, or 6%. Wholesale parts revenue increased approximately $0.2 million, or 100%, and wholesale parts gross profit increased approximately $0.1 million, or 100%. Internal, sublet and other revenue increased approximately $1.1 million, or 10%, and internal, sublet and other gross profit increased approximately $0.5 million, or 10%.

Current wording

Fixed Operations revenue increased approximately $0.6 million, or 1%, and Fixed Operations gross profit increased approximately $0.9 million, or 5%. Customer pay revenue remained flat, and customer pay gross profit increased approximately $0.2 million, or 7%. Warranty revenue remained flat, and warranty gross profit remained flat. Wholesale parts revenue increased approximately $0.3 million, or 75%, and wholesale parts gross profit increased approximately $0.1 million, or 100%. Internal, sublet and other revenue increased approximately $0.3 million, or 1%, and internal, sublet and other gross profit increased approximately $0.6 million, or 4%.

Previous wording

F&I revenue increased $0.4 million, or 20%, due primarily to a 12% increase in F&I gross profit per retail unit and a 9% increase in retail new and used vehicle unit sales volume. F&I gross profit per retail unit increased $105 per unit to $995 per unit, primarily due to higher penetration rates and unit sales volume for finance contracts, service contracts, and aftermarket products and changes to our F&I product cost structure.

Current wording

F&I revenue increased $0.2 million, or 6%, due primarily to a 2% increase in F&I gross profit per retail unit, and a 4% increase in retail new and used vehicle unit sales volume. F&I gross profit per retail unit increased $22 per unit, to $1,088 per unit, primarily due to higher penetration rates for finance contracts, service contracts, and aftermarket products, partially offset by lower gross profit per finance contract, service contract, and aftermarket product, and changes to our F&I product cost structure.

Previous wording

F&I revenue increased $0.8 million, or 24%, due primarily to an 18% increase in retail new and used vehicle unit sales volume and a 4% increase in F&I gross profit per retail unit. F&I gross profit per retail unit increased $40 per unit, or 4%, to $955 per unit, primarily due to higher penetration rates and unit sales volume for finance contracts, service contracts and aftermarket products and changes to our F&I product cost structure.

Current wording

F&I revenue increased $0.9 million, or 13%, due primarily to an 11% increase in retail new and used vehicle unit sales volume, and a 3% increase in F&I gross profit per retail unit. F&I gross profit per retail unit increased $28 per unit, to $1,012 per unit, primarily due to higher penetration rates for finance contracts, service contracts, and aftermarket products, partially offset by lower gross profit per finance contract, service contract, and aftermarket product, and changes to our F&I product cost structure.

Previous wording

(2)For the three months ended June 30, 2026, amount includes approximately $1.2 million of pre-tax charges related to storm damages. For the three months ended June 30, 2025, amount includes approximately $2.4 million of pre-tax loss related to the termination of a franchise, approximately $4.1 million of pre-tax charges related to storm damage, and $10.0 million of pre-tax benefit from cyber insurance proceeds related to a cybersecurity incident impacting certain of our information systems provided by CDK Global in the second quarter of 2024.

Current wording

(2)For the three months ended September 30, 2026, amount includes approximately $0.9 million of pre-tax charges related to property damages, approximately $1.0 million in pre-tax proceeds from legal settlements, and approximately $0.6 million in pre-tax charges related to lease exits. For the three months ended September 30, 2025, amount includes approximately $2.8 million of pre-tax loss related to the disposal of franchises and approximately $0.7 million of pre-tax legal expenses.

Previous wording

(4)For the three months ended June 30, 2026 and three months ended June 30, 2025 there was no pre-tax charges.

Current wording

(4)For the three months ended September 30, 2025, amount includes approximately $0.2 million of pre-tax charges related to dispositions.

Previous wording

(2)For the six months ended June 30, 2026, amount includes approximately $5.1 million of pre-tax gain related to dispositions. For the six months ended June 30, 2025, amount includes $40.0 million of pre-tax benefit from cyber insurance proceeds related to a cybersecurity incident impacting certain of our information systems provided by CDK Global in the second quarter of 2024, approximately $5.0 million of pre-tax charges related to storm damage, and approximately $2.7 million of pre-tax charges related to dispositions. Due to rounding, segment level financial data may not sum to consolidated results.

Current wording

(2)For the nine months ended September 30, 2026, amount includes approximately $5.1 million of pre-tax gain related to dispositions, approximately $2.1 million of pre-tax charges related to property damages, approximately $0.6 million in pre-tax charges related to lease exits, and approximately $1.0 million in pre-tax proceeds related to legal settlements. For the nine months ended September 30, 2025, amount includes $40.0 million of pre-tax benefit from cyber insurance proceeds related to a cybersecurity incident impacting certain of our information systems provided by CDK Global in the second quarter of 2024, approximately $5.0 million of pre-tax charges related to storm damage, approximately $5.5 million of pre-tax loss related to dispositions, and approximately $0.7 million of pre-tax legal expenses.

Previous wording

For the EchoPark Segment, SG&A expenses for the six months ended June 30, 2026, amount includes approximately $3.6 million of pre-tax gain related to lease terminations. For the six months ended June 30, 2025, amount includes approximately $1.0 million of pre-tax gain on sale of real estate.

Current wording

(3)For the nine months ended September 30, 2026, amount includes approximately $3.0 million of pre-tax gain on lease terminations. For the nine months ended September 30, 2025, amount includes approximately $0.9 million of pre-tax gain on dispositions.

Previous wording

(4)For the six months ended June 30, 2025, amount includes approximately $0.9 million of pre-tax charges related to dispositions. Due to rounding, segment level financial data may not sum to consolidated results.

Current wording

(4)For the nine months ended September 30, 2025, amount includes approximately $1.1 million of pre-tax charges related to dispositions. Due to rounding, segment level financial data may not sum to consolidated results.