[{"_1":2,"_3":-5,"_4":-5},"loaderData",{"_5":6,"_7":8},"actionData","errors","root",{"_100":101},"en-item",{"_9":10,"_10":11},"kind","item",{"_12":13,"_14":15,"_16":17,"_18":19,"_20":21,"_22":23,"_24":25,"_26":27,"_28":29,"_30":31,"_32":31,"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":-5,"_48":49,"_50":-5,"_51":-5,"_52":53,"_54":55,"_56":57,"_58":42,"_59":42,"_60":61,"_62":42,"_63":64},"id","xrpo3qi8djiwau1assp4yj361","revision",3,"title","Lithia Motors披露截至2026年9月30日的第三季度及九个月业绩：九个月营收290.094亿美元，归属净利润6.515亿美元","originalTitle","LITHIA MOTORS INC (0001023128) (Filer)","summary","Lithia Motors披露，截至2026年9月30日的第三季度收入为99.467亿美元，同比增长2.8%；归属公司净利润为2.911亿美元，稀释每股收益13.22美元。","reason","材料提供了截至2026年9月30日的季度及九个月业绩、现金流和回购数据，可用于了解公司经营表现与资本配置。","source",{"_12":91,"_92":93,"_9":94,"_95":42,"_96":97,"_98":99},"links",{"_88":89,"_78":90},"publishedAt","2026-10-28T20:09:44.000Z","discoveredAt","2026-10-28T20:14:10.076Z","timelineAt","category","ai-products","tags",[84,85,86,87],"stockSymbols",[83],"score",66,"selected",true,"channel","news","story",{"_73":74,"_16":75},"x","readingMode","full","author","language","body",{"_64":77,"_78":-5,"_79":80,"_81":82},"outline",[],"relatedStories",[76],"indexable","markdownAvailable","group",{"_65":66,"_45":67,"_68":69,"_70":71,"_72":69},"hasTranslation","bodyLanguage","zh","factId","fkGSX6aNuu1k",{"_73":74,"_16":75},"reportCount",1,"additionalSourceCount",0,"developmentCount","publicId","18c2464a-ab29-4640-856c-6ae4b4b1144c","Lithia Motors公布第三季度业绩并宣布现金分红",{"_73":74,"_16":75},"

美国证券交易委员会

华盛顿特区 20549

表格 10-Q


☒	根据1934年《证券交易法》第13或15(d)条提交的季度报告

截至以下日期的季度期间 2026年9月30日

或


☐	根据1934年《证券交易法》第13或15(d)条提交的过渡报告

委员会档案编号： 001-14733

$\"Lithia_Driveway_Combo_FINAL.jpg\"$

Lithia Motors, Inc.

（注册人章程中规定的确切名称）


俄勒冈州		93-0572810
（注册成立或组织所在的州或其他司法管辖区）		（美国国税局雇主识别号）
150 N. Bartlett Street	梅德福，	俄勒冈州	97501
（主要行政办公室地址）	（邮政编码）

(541) 776-6401

注册人电话号码（含区号）

根据该法第12(b)条登记的证券：


各类别证券名称	交易代码	注册所在的各交易所名称
无面值普通股	LAD	纽约证券交易所

请勾选说明注册人是否 (1) 已在过去 12 个月内（或注册人须提交此类报告的较短期间内）提交《1934 年证券交易法》第 13 或 15(d) 条要求提交的所有报告，且 (2) 在过去 90 天内一直受此类申报要求约束。

1934 年内提交此类报告的所有要求报告（或注册人须提交此类报告的较短期间内），并且 (2) 在过去 90 天内一直受此类申报要求约束。

是 ☒ 否 ☐

请勾选说明注册人是否已通过电子方式提交根据规则

405（本章 §232.405）要求提交的所有交互式数据文件（在过去 12 个月内，或注册人须提交此类文件的较短期间内）

提交此类文件）。是 ☒ 否 ☐

请勾选说明注册人是否为大型加速申报公司、加速申报公司、非加速申报公司、小型申报公司

或新兴成长型公司。参见《交易法》规则 12b-2 中“大型加速申报公司”“加速申报公司”“小型申报公司”和

“新兴成长型公司”的定义。


大型加速申报公司	非加速申报公司	加速申报公司	小型申报公司	新兴成长型公司
☒	☐	☐	☐	☐

如果是新兴成长型公司，请勾选说明注册人是否选择不采用《交易法》第 13(a) 条规定的、遵守任何新订或修订财务会计准则的延长过渡期

☐

请勾选说明注册人是否为空壳公司（定义见《交易法》规则 12b-2）。是 ☐ 否 ☒

截至 2026年10月28日，登记人的普通股已发行股数为 21,620,296 股。


	$\"Lithia$

LITHIA MOTORS, INC.

10-Q 表季度报告


项目编号	项目	页码
	术语表	1

第一部分	财务信息

项目 1.	财务报表	2
	合并资产负债表（未经审计）- 2026年9月30日和 2025年12月31日	2
	合并经营报表（未经审计）- 截至2026年和2025年9月30日的三个月和九个月期间	3
	合并综合收益表（未经审计）– 截至2026年和2025年9月30日的三个月和九个月期间	4
	合并权益报表（未经审计）- 截至2026年和2025年9月30日的三个月和九个月期间	5
	合并现金流量表（未经审计）- 截至2026年和2025年9月30日的三个月期间	6
	合并财务报表简明附注（未经审计）	8

项目 2.	管理层对财务状况和经营业绩的讨论与分析	21
项目 3.	有关市场风险的定量和定性披露	40
项目 4.	控制与程序	40

第二部分	其他信息

项目 1.	法律诉讼	40
项目 1A.	风险因素	40
项目 2.	未注册股权证券的销售及所得款项用途	40
项目 5.	其他信息	41
项目 6.	附件	41

	签名	42


	$\"Lithia$	术语表	1

定义术语表

以下为本报告中使用的缩写和术语定义：


术语		定义
AFS		可供出售
ASC		会计准则编纂
ASU		会计准则更新
董事会		董事会
BNS		丰业银行
BPS		基点
CAD		加元（$）
CORRA		加拿大隔夜回购利率平均值
CPO		认证二手车
DFC		Driveway Finance Corporation
EBITDA		息税折旧摊销前利润
EPS		每股收益
FASB		财务会计准则委员会
GAAP		公认会计原则
LAD		Lithia and Driveway
LMMH		Lithia Marubeni Mobility Holdings
Mizuho		瑞穗银行有限公司
NCI		非控股权益
NM		无意义
NYSE		纽约证券交易所
PINE.L		Pinewood Technologies Group PLC
PPA		购买价分摊
RSU		限制性股票单位
SEC		美国证券交易委员会
SG&A		销售、一般及行政费用
SOFR		担保隔夜融资利率
英国		英国
美国		美利坚合众国
USB		美国银行全国协会
YTD		年初至今


	$\"Lithia$	合并财务报表	2


合并资产负债表
（百万美元；未经审计）	9月30日 2026	12月31日 2025
资产
流动资产：
现金、受限现金及现金等价物	$374.0	$341.8
应收账款，扣除坏账准备 $7.7 和 $6.9	1,132.9	1,134.1
存货，净额	6,624.3	6,119.6
其他流动资产	261.8	262.5
流动资产总额	8,393.0	7,858.0

不动产和设备，扣除累计折旧 $1,136.6 和 $1,004.9	5,074.7	4,936.0
经营租赁使用权资产	681.3	717.2
融资应收款，扣除信用损失准备 $158.6 和 $143.7	5,578.6	4,755.1
商誉	2,736.1	2,476.7
特许经营权价值	2,894.6	2,777.4
其他非流动资产	1,477.7	1,586.8
资产总额	$26,836.0	$25,107.2

负债和权益
流动负债：
库存融资应付票据	$2,062.6	$1,992.6
库存融资应付票据：非贸易类	4,504.2	3,016.3
长期债务的流动部分	95.6	64.2
无追索权应付票据的流动部分	19.4	69.7
贸易应付款	434.5	339.5
应计负债	1,289.0	1,214.4
流动负债总额	8,405.3	6,696.7

长期债务，扣除流动部分	6,828.2	7,274.9
无追索权应付票据，扣除流动部分	2,746.3	2,404.2
递延收入	499.4	452.7
递延所得税	595.7	516.3
非流动经营租赁负债	619.9	662.1
其他长期负债	500.4	471.9
负债总额	20,195.2	18,478.8

权益：
优先股——无面值；授权发行 15.0 股；无已发行在外	—	—
普通股——无面值；授权发行 125.0 股；已发行在外 21.7 和 23.5	—	—
额外实缴资本	—	18.1
累计其他综合收益	37.3	67.3
留存收益	6,577.3	6,517.8
Lithia Motors, Inc. 股东权益总额	6,614.6	6,603.2
非控股权益	26.2	25.2
权益总额	6,640.8	6,628.4
负债和权益总额	$26,836.0	$25,107.2

参见合并财务报表附带的简明附注。


	$\"Lithia$	合并财务报表	3


合并经营报表
	截至9月30日的三个月	截至9月30日的九个月
（百万美元，每股金额除外；未经审计）	2026	2025	2026	2025
收入
新车	$4,868.6	$4,792.4	$14,077.1	$14,076.3
二手车	3,630.1	3,463.3	10,647.8	10,192.3
金融和保险	361.4	378.6	1,087.5	1,116.8
售后服务	1,086.6	1,041.5	3,197.0	3,051.7
收入总额	9,946.7	9,675.8	29,009.4	28,437.1
销售成本
新车零售	4,590.7	4,501.0	13,255.7	13,178.1
二手车零售	3,419.2	3,274.4	10,035.2	9,609.2
售后服务	441.0	434.4	1,303.6	1,288.3
销售成本总额	8,450.9	8,209.8	24,594.5	24,075.6
毛利	1,495.8	1,466.0	4,414.9	4,361.5

金融业务收入	32.3	19.1	90.0	51.7

销售、一般及管理费用	1,036.3	998.0	3,088.4	2,965.3
折旧和摊销	71.6	65.5	212.3	194.6
营业利润	420.2	421.6	1,204.2	1,253.3
库存融资利息费用	(70.3)	(57.8)	(195.9)	(169.8)
其他利息费用，净额	(63.1)	(68.3)	(196.0)	(200.5)
其他收入（费用），净额	104.2	(13.3)	72.7	35.9
所得税前收入	391.0	282.2	885.0	918.9
所得税费用	(98.1)	(63.6)	(228.4)	(230.9)
净利润	292.9	218.6	656.6	688.0
归属于非控股权益的净利润	(1.8)	(1.5)	(5.1)	(5.3)
归属于 Lithia Motors, Inc. 的净利润	$291.1	$217.1	$651.5	$682.7

归属于 Lithia Motors, Inc. 普通股股东的基本每股收益普通股股东	$13.28	$8.63	$28.83	$26.47
用于基本每股收益计算的股数	21.9	25.2	22.6	25.8

归属于 Lithia Motors, Inc. 普通股股东的稀释每股收益普通股股东	$13.22	$8.61	$28.77	$26.42
用于稀释每股收益计算的股数	22.0	25.2	22.6	25.8

每股支付的现金股息	$0.70	$0.55	$1.82	$1.63

参见合并财务报表附注。


	$\"Lithia$	合并财务报表	4


合并综合收益表
	截至9月30日的三个月	截至9月30日的九个月
（单位：百万；未经审计）	2026	2025	2026	2025
净利润	$292.9	$218.6	$656.6	$688.0
其他综合（亏损）收益，扣除税项后：
外币折算调整	0.8	(30.2)	(26.8)	89.1
债务证券未实现（亏损）收益，扣除税收优惠后（准备）金额为 $0.4、$—、$0.6和 $(0.2)	(1.5)	0.2	(2.1)	0.7
现金流套期的收益（亏损），扣除税项（准备）优惠为 $(0.1)、$—、$0.4和 $(0.1)	0.2	—	(1.1)	0.4
其他综合（亏损）收益总额，扣除税项后	(0.5)	(30.0)	(30.0)	90.2
综合收益	292.4	188.6	626.6	778.2

归属于非控股权益的综合收益	(1.8)	(1.5)	(5.1)	(5.3)
归属于 Lithia Motors, Inc. 的综合收益	$290.6	$187.1	$621.5	$772.9

参见合并财务报表附注。


	$\"Lithia$	合并财务报表	5


合并权益表
	截至9月30日的三个月	截至9月30日的九个月
（单位：百万；未经审计）	2026	2025	2026	2025
期初权益总额	$6,427.4	$7,011.0	$6,628.4	$6,674.1

期初普通股余额	—	568.8	—	793.1
基于股票的薪酬	1.7	1.6	33.6	29.7
因员工股票购买计划而发行的股票购买计划	7.2	7.6	21.2	21.0
回购普通股（含消费税）	(8.9)	(412.6)	(54.8)	(678.4)
期末普通股余额	—	165.4	—	165.4

期初额外实缴资本余额	—	110.2	18.1	107.2
基于股票的薪酬	14.2	12.4	6.2	15.4
回购普通股（含消费税）	(14.2)	—	(24.3)	—
期末额外实缴资本余额	—	122.6	—	122.6

期初累计其他综合收益（亏损）余额	37.8	116.6	67.3	(3.6)
外币折算调整	0.8	(30.2)	(26.8)	89.1
债务证券未实现（亏损）收益，扣除税收优惠后（准备）金额为 $0.4、$—、$0.6和 $(0.2)	(1.5)	0.2	(2.1)	0.7
现金流套期的收益（亏损），扣除税项（准备）优惠为 $(0.1)、$—、$0.4和 $(0.1)	0.2	—	(1.1)	0.4
累计其他综合收益，期末余额	37.3	86.6	37.3	86.6

留存收益，期初余额	6,364.3	6,190.9	6,517.8	5,753.5
归属于 Lithia Motors, Inc. 的净利润	291.1	217.1	651.5	682.7
已支付股息	(15.4)	(13.9)	(41.1)	(42.1)
回购普通股（含消费税）	(62.7)	—	(550.9)	—
留存收益，期末余额	6,577.3	6,394.1	6,577.3	6,394.1

非控股权益，期初余额	25.3	24.5	25.2	23.9
非控股权益分配	(0.9)	(1.1)	(4.1)	(4.3)
归属于非控股权益的净利润	1.8	1.5	5.1	5.3
非控股权益，期末余额	26.2	24.9	26.2	24.9

总权益，期末余额	$6,640.8	$6,793.6	$6,640.8	$6,793.6

请参阅合并财务报表附带的简明附注。


	$\"Lithia$	合并财务报表	6


合并现金流量表
	截至9月30日的九个月
（单位：百万；未经审计）	2026	2025
经营活动产生的现金流量：
净利润	$656.6	$688.0
将净利润调节为经营活动所用（提供）的现金净额：
折旧和摊销	266.2	239.5
股份支付薪酬	39.8	45.1
处置其他资产净损失	6.3	3.9
处置门店净收益	(9.2)	(17.7)
未实现投资收益，净额	(54.5)	(12.1)
递延所得税	68.7	102.6
经营租赁使用权资产摊销	73.8	67.2
减少（增加）（扣除收购和处置的影响后）：
应收账款，净额	2.6	55.5
存货	(555.0)	44.8
融资应收款	(831.4)	(671.3)
其他资产	(136.2)	(263.8)
增加（减少）（扣除收购和处置的影响后）：
库存融资应付款	87.6	(151.0)
贸易应付款	93.3	(7.4)
应计负债	54.9	52.8
其他长期负债和递延收入	31.6	56.9
经营活动所用（提供）的现金净额	(204.9)	233.0
投资活动产生的现金流量：
收到的应收票据本金	13.8	—
资本性支出	(252.3)	(257.7)
资产出售所得款项	24.2	30.5
其他投资活动使用的现金净额	(34.0)	(12.7)
收购支付的现金，扣除取得的现金	(264.8)	(417.6)
出售门店所得款项净额	31.9	178.1
投资活动使用的现金净额	(481.2)	(479.4)
融资活动产生的现金流量：
库存融资应付款借款净额：非贸易类	1,542.2	73.3
信贷额度借款	9,037.0	11,707.1
偿还信贷额度借款	(9,405.5)	(11,575.1)
按计划偿还长期债务和融资租赁负债本金	(36.2)	(29.6)
其他长期债务和融资租赁负债本金偿付	(51.4)	(15.7)
发行长期债务所得款项	—	741.0
偿还无追索权应付款本金	(1,228.4)	(959.0)
发行无追索权应付款所得款项	1,520.2	1,095.3
支付债务发行成本	(7.2)	(11.7)
发行普通股所得款项	21.2	21.0
回购普通股	(624.5)	(662.3)
已支付股息	(41.1)	(42.1)
支付与收购相关的或有对价	—	(9.4)
其他融资活动	(4.0)	(68.3)
融资活动提供的现金净额	722.3	264.5
汇率变动对现金、受限现金及现金等价物的影响	(3.5)	4.7
现金、受限现金及现金等价物增加额	32.7	22.8
年初现金、受限现金及现金等价物	391.3	445.8
期末现金、受限现金及现金等价物	$424.0	$468.6

See accompanying condensed notes to consolidated financial statements.


	$\"Lithia$	CONSOLIDATED FINANCIAL STATEMENTS	7

Table of Contents


SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
	Nine Months Ended September 30,
(In millions)	2026	2025
Reconciliation of cash, restricted cash, and cash equivalents to the consolidated balance sheets
Cash and cash equivalents	$108.1	$206.5
Restricted cash from collections on auto loans receivable and customer deposits	265.9	210.6
Cash, restricted cash, and cash equivalents	374.0	417.1
Restricted cash on deposit in reserve accounts, included in other non-current assets	50.0	51.5
Total cash, restricted cash, and cash equivalents reported in the Consolidated Statements of Cash Flows	$424.0	$468.6

Supplemental cash flow information:
Cash paid during the period for interest	$565.7	$524.7
Cash paid during the period for income taxes, net	116.0	137.9
Debt paid in connection with store disposals	27.1	40.8

Non-cash activities:
Debt assumed in connection with acquisitions	$12.2	$—
Acquisition of finance leases in connection with acquisitions	62.0	—
Right-of-use assets obtained in exchange for lease liabilities	65.3	30.8
Unsettled repurchases of common stock and excise taxes	5.5	16.1
Issuance of notes receivable in connection with divestitures	22.2	—

See accompanying condensed notes to consolidated financial statements.


	$\"Lithia$	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS	8

Table of Contents

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. INTERIM FINANCIAL STATEMENTS

Basis of Presentation

These Consolidated Financial Statements contain unaudited information as of September 30, 2026, and for the

three and nine months ended September 30, 2026 and 2025. The unaudited interim financial statements have been

prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain disclosures required

by accounting principles generally accepted in the United States of America for annual financial statements are not

included herein. In management’s opinion, these unaudited financial statements reflect all adjustments (which

include only normal recurring adjustments) necessary for a fair presentation of the information when read in

conjunction with our 2025 audited Consolidated Financial Statements and the related notes thereto. The financial

information as of December 31, 2025, is derived from our Annual Report on Form 10-K filed with the SEC on

February 25, 2026. The results of operations for the interim periods presented are not necessarily indicative of the

results to be expected for the full year.

Reclassifications

Certain reclassifications of amounts previously reported have been made to the accompanying Consolidated

财务报表为保持所列期间的一致性和可比性。在我们的

合并经营报表中，我们将二手车批发收入与二手车零售收入合并，现在

将这些收入统称为二手车收入。此外，我们将车队收入与新车零售

收入合并，现在将这些收入统称为新车收入。

这些变更旨在更好地反映管理层评估收入表现的方式，并提高

与行业惯例的可比性。重新分类对所列任何期间的总收入、毛利、经营

收益、净收益或现金流均无影响。

附注 2. 应收账款

应收账款包括以下项目：


（百万美元）	2026年9月30日	2025年12月31日
在途合同	$411.3	$468.6
车辆应收款	212.7	177.6
制造商应收款	356.9	327.9
贸易应收款	127.0	148.6
其他应收款（流动）	32.7	18.3
	1,140.6	1,141.0
减：呆账准备	(7.7)	(6.9)
应收账款总额（净额）	$1,132.9	$1,134.1

其他应收款中的长期部分计入其他非流动资产，列于

合并资产负债表。

附注 3. 存货及库存融资应付票据

存货净额包括以下项目：


（百万美元）	2026年9月30日	2025年12月31日
新车	$3,778.6	$3,586.1
二手车	2,584.5	2,266.7
零部件及配件	261.2	266.8
存货总额	$6,624.3	$6,119.6

车辆存货成本通常会扣除制造商返利和奖励，而相关库存融资

应付票据反映的是车辆的总成本。


	$\"Lithia$	合并财务报表附注	9


（百万美元）	2026年9月30日	2025年12月31日
库存融资应付票据	$2,062.6	$1,992.6
库存融资应付票据：非贸易	4,504.2	3,016.3
库存融资债务总额	$6,566.8	$5,008.9

附注 4. 融资应收款

融资应收款的利息收入根据各项应收款的合同条款确认，并

计提至还款、转为非应计状态、核销或收回车辆为止。与发放

相关的直接成本予以资本化，并在应收款确认收入时作为利息收入的抵减项计入费用。

融资应收款余额由以相关车辆作担保的贷款和融资租赁构成。超过

99% 的投资组合逾期未满60天，处于非应计状态的比例不到 1%。

融资应收款净额


（百万美元）	2026年9月30日	2025年12月31日
资产支持定期融资	$3,263.1	$2,954.6
仓储融资额度	2,048.4	1,514.8
其他受管理应收款	396.9	403.4
融资应收款总额	5,708.4	4,872.8
应计利息和费用	28.8	26.0
减：信用损失准备	(158.6)	(143.7)
融资应收款净额	$5,578.6	$4,755.1

按 FICO 评分划分的融资应收款


	截至 2026 年 9 月 30 日
	发放年份
（百万美元）	2026	2025	2024	2023	2022	2022 年以前	总计
<599	$26.1	$30.6	$23.6	$14.3	$7.0	$2.3	$103.9
600-699	609.5	476.8	260.2	165.6	104.8	23.3	1,640.2
700-774	761.7	591.0	269.1	169.6	102.4	11.0	1,904.8
775+	820.1	580.4	233.9	125.1	60.7	2.6	1,822.8
汽车贷款应收款总额	$2,217.4	$1,678.8	$786.8	$474.6	$274.9	$39.2	5,471.7
其他融资应收款 1							236.7
融资应收款总额							$5,708.4


		截至 2025 年 12 月 31 日
		发放年份
（百万美元）	2025	2024	2023	2022	2021	2021 年以前	总计
<599	$42.0	$34.4	$22.7	$12.0	$4.7	$0.5	$116.3
600-699	629.9	369.1	250.9	173.0	45.2	3.3	1,471.4
700-774	784.1	382.1	254.7	168.4	20.4	1.3	1,611.0
775+	810.5	338.5	197.3	102.0	4.8	0.4	1,453.5
汽车贷款应收款总额	$2,266.5	$1,124.1	$725.6	$455.4	$75.1	$5.5	4,652.2
其他融资应收款 1							220.6
融资应收款总额							$4,872.8

1包括遗留组合、发放时没有可用 FICO 评分的贷款、租赁应收款以及递延发放

费用。

根据 FASB ASC 主题 326，融资应收款的信用损失准备根据

我们的历史核销经验、当前状况和预测，以及作为这些应收款担保的任何相关资产的价值进行估算

。估算时会考虑近期逾期趋势和回收率。账户

余额在逾期达到 120 天时从准备金中核销。


	$\"Lithia$	合并财务报表附注	10

融资应收款信用损失准备变动表

我们的融资应收款信用损失准备代表预计在受管理应收款剩余

合同期限内发生的净信用损失。融资应收款信用损失准备在该期间的变动

如下：


	截至以下日期的九个月 9 月 30 日，	2026 年与 2025 年相比
（百万美元）	2026	2025	变动金额	变动百分比
期初信用损失准备	$143.7	$123.4	$20.3	16.5%
核销	(111.5)	(120.1)	8.6	(7.2)
回收	61.9	64.5	(2.6)	(4.0)
净核销	(49.6)	(55.6)	6.0	(10.8)%
组合规模导致的准备金变动	15.0	16.9	(1.9)	(11.2)
净核销导致的准备金变动	49.6	55.6	(6.0)	(10.8)
货币折算	(0.1)	(0.5)	0.4	(80.0)
期末信用损失准备	$158.6	$139.8	$18.8	13.4%

按发放年份划分的核销活动


	截至 9 月 30 日的九个月
（百万美元）	2026	2025
2026	$5.5	$—
2025	34.8	6.0
2024	29.9	37.1
2023	21.9	38.3
2022	13.8	26.7
2021 年及以前	2.8	8.0
其他融资应收款 1	2.8	4.0
核销总额	$111.5	$120.1

1包括遗留组合、发放时没有可用 FICO 评分的贷款以及融资租赁应收款。

附注 5。商誉和特许经营价值

商誉账面金额变动如下：


（百万美元）	车辆运营	融资运营	合并
截至 2024 年 12 月 31 日的余额	$2,099.3	$16.2	$2,115.5
收购增加额 1	383.1	—	383.1
处置减少额	(39.2)	—	(39.2)
货币折算	16.5	0.8	17.3
截至 2025 年 12 月 31 日的余额	2,459.7	17.0	2,476.7
收购增加额 2	268.2	—	268.2
通过处置减少	(2.9)	—	(2.9)
货币折算	(5.3)	(0.6)	(5.9)
截至2026年9月30日的余额	$2,719.7	$16.4	$2,736.1

1我们对PPA的2024年收购的购买价分摊（PPA）于2025年敲定。因此，我们增加了3.482亿美元

商誉。我们对部分PPA的2025年收购的初步购买价分摊导致增加了3490万美元的商誉。我们对PPA的

其余2025年收购的购买价分摊仍为初步分摊，商誉尚未分配至各业务分部。这些金额

在我们完成购买会计处理之前计入其他非流动资产。请参阅附注12 – 收购。

2我们对其余PPA的2025年收购的购买价分摊于2026年敲定。因此，我们增加了2.682亿美元的商誉。

我们对PPA的2026年收购的购买价分摊仍为初步分摊，商誉尚未分配至各业务分部。这些金额

在我们完成购买会计处理之前计入其他非流动资产。请参阅附注12 – 收购。


	$\"Lithia$	合并财务报表附注	11

特许经营价值账面金额的变动如下：


（百万）	特许经营价值
截至2024年12月31日的余额	$2,550.3
通过收购增加 1	231.1
通过剥离减少	(20.9)
因减值减少 2	(5.8)
货币折算	22.7
截至2025年12月31日的余额	2,777.4
通过收购增加 3	153.6
通过剥离减少	(26.8)
货币折算	(9.6)
截至2026年9月30日的余额	$2,894.6

1我们对PPA的2024年收购的购买价分摊于2025年敲定。因此，我们增加了2.180亿美元的特许经营价值。

我们对部分PPA的2025年收购的初步购买价分摊导致增加了1310万美元的特许经营价值。这些金额

在我们完成购买会计处理之前计入其他非流动资产。请参阅附注12 – 收购。

2在2025年的年度减值测试中，我们认定一家业绩不佳门店的特许经营价值一项不可

收回，因此确认了580万美元减值，并将其计入合并经营报表，作为

资产减值。于 2026年9月30日和 2025年12月31日的余额仅扣除了该项累计减值

金额。

3我们对 PPA 的其余 2025 年收购的会计处理于 2026 年完成。因此，我们新增了 1.536亿美元的特许经营权

价值。我们对 2026 年收购的 PPA 尚属初步，特许经营权价值尚未分配。这些金额

在完成购买会计处理前计入其他非流动资产。请参阅附注12 – 收购。

附注6。投资

有价证券

截至 2026年9月30日和 2025年12月31日，记录在合并资产负债表中其他流动

资产内的有价股权证券分别为 890万美元和 240万美元。在截至

报告日持有的有价股权证券于九个月期间确认的未实现净收益分别为 2026年9月30日和 2025 年

分别为 700,000美元和 200,000美元。.

作为可供出售（AFS）核算的有价债务证券，记录在其他流动资产中

合并资产负债表，具体如下：


	截至2026年9月30日
					具有合同到期日的证券公允价值期限
（百万）	摊余成本	净收益总额收益1	净损失总额损失1	公允价值	1年以内年	1年后至 5年以内年	5年后年
美国国债	$25.8	$—	$(0.8)	$25.0	$4.2	$15.8	$5.0
市政证券	10.5	—	(0.2)	10.3	1.5	7.4	1.4
公司债务	32.9	—	(1.0)	31.9	2.5	19.9	9.5
总计	$69.2	$—	$(2.0)	$67.2	$8.2	$43.1	$15.9


	截至2025年12月31日
					具有合同到期日的证券公允价值到期日
（百万）	摊余成本	净额收益1	净额损失1	公允价值	1年内到期	1年至5年以内	5年后到期
美国国债	$21.4	$0.2	$—	$21.6	$3.7	$14.5	$3.4
市政证券	10.4	0.2	—	10.6	0.1	9.0	1.5
公司债务	21.5	0.3	—	21.8	4.0	14.3	3.5
总计	$53.3	$0.7	$—	$54.0	$7.8	$37.8	$8.4

1表示在其他综合收益中累计的证券净收益（损失）对应的未实现收益（损失）总额。


	$\"Lithia$	合并财务报表附注	12

来自可供出售AFS债务证券到期的收益为790万美元和820万美元，截至九个月

2026年9月30日和2025。可供出售没有债务证券到期的已实现总收益或损失AFS

截至三个月和九个月2026年9月30日和2025。

权益法投资

我们对Pinewood Technologies, PLC (PINE.L)的投资，该公司是一家总部位于英国的汽车经销商管理系统

提供商，包括其普通股投票权的31.95%，在本文中作为权益法

投资。该投资按公允价值计量，依据为报价市场价格，所有公允价值变动均计入

该投资的未实现收益或损失，作为其他收入（支出）净额的组成部分，列于

合并经营报表。我们该项投资的公允价值为2.175亿美元和1.772亿美元，分别截至

2026年9月30日和2025年12月31日。请参见注释11——公允价值计量。

我们通过 Lithia Marubeni Mobility 持有 Wheels, Inc. 的投资；该公司是一家汽车车队管理服务提供商

控股公司 (LMMH)，包括其普通股投票权的26.5%，在本文中作为权益法

投资。该投资按成本计量，并加减我们应占权益法被投资方的收益或亏损

作为合并资产负债表中其他非流动资产的组成部分。我们该项投资的账面价值

为2.210亿美元和2.220亿美元，分别截至2026年9月30日和2025年12月31日。我们收到

股息980万美元，截至九个月2026年9月30日。采用累计收益法

，该股息归类于合并现金流量表中的经营活动，因为它

低于我们应占被投资方累计收益。

附注 7。承诺和或有事项

合同负债

我们对售予客户以及在收购中承接的各类合同承担义务。这些金额

记作合同负债。在销售时，我们递延全部售价，并根据预期后续成本的发生率确认收入

。

与售后合同负债相关的收入金额扣除取消部分后，按以下方式计算

采用最能反映合同履行情况的投入法。与售后相关的合同负债余额

截至 $549.7 million 和 $501.5 million，分别为 September 30, 2026 和 December 31, 2025；

我们确认了 $31.2 million 和 $99.5 million 的收入，分别与截至 three and nine 个月期间

September 30, 2026 的期初合同负债余额（与售后相关）有关。

与经营租赁车辆合同负债相关的收入在相关租赁合同期限内平均确认

。与经营租赁车辆相关的合同负债余额为

$155.2 million 和 $136.4 million，分别截至 September 30, 2026 和 December 31, 2025；我们确认了

$19.3 million 和 $51.5 million 的收入，分别与截至 three and nine 个月期间 September 30, 2026 的

经营租赁车辆相关期初合同负债余额有关。

我们的合同负债余额计入应计负债和递延收入。

诉讼

我们在正常业务过程中涉及多起法律诉讼。尽管我们预计，正常业务过程中产生的法律诉讼的解决不会对我们的业务、经营业绩、财务状况或现金流产生重大

不利影响，但我们无法

确定地作出预测。

。

附注 8. 债务

信贷安排

US Bank 银团信贷安排

2026年2月27日，我们修订了由 US Bank 担任代理行的现有银团信贷安排（USB 信贷

安排），目前由 18 家金融机构组成，其中包括六家制造商关联融资公司，到期日为

February 27, 2031。此次修订延长了到期日，将现有的二手车库存融资和

服务代步车库存融资安排转换为特定 VIN 的融资安排，取消了 0.10% 的信贷利差调整，并且

将二手车库存融资利差从 1.40% 降至 1.20%。


	$\"Lithia$	合并财务报表附注	13

该 USB 信贷额度提供总额为 $6.5 billion 的融资承诺，经贷款方批准并满足其他条件后，还可进一步扩大，

总额最高可达 $7.0 billion。融资承诺的分配如下：

新车库存平面融资最高 $2.7 billion，二手车库存平面融资最高 $1.3 billion，

维修代步车平面融资最高 $150 million，以及最高

$2.4 billion 的循环融资，用于一般公司用途，包括收购和营运资金。我们

可以选择重新分配该 USB 信贷额度下的承诺，但循环

贷款承诺不得超过承诺总额的 50%。向贷款方集团的所有借款和

还款均列示在合并现金流量表的融资活动提供的净现金

项下。

我们在 USB 信贷额度项下的义务以我们的相当大部分资产作担保，包括我们的

存货（包括新车和二手车、零部件及配件）、设备、应收账款（以及其他

收款权利）、不动产，以及我们在某些子公司的股权。

USB 信贷额度的利率因债务类型而异，按每日简单 SOFR 加

新车库存融资的利差为 1.10%，二手车库存融资为 1.20%，服务代步车库存融资为 1.20%，

循环融资的适用利差则为 1.00% 至

2.00%，具体取决于我们的杠杆率。截至2026年9月30日，我们各项承诺对应的年利率如下：


承诺	截至2026年9月30日的年利率
新车库存融资	5.00%
二手车库存融资	5.10%
服务代步车库存融资	5.10%
循环信贷额度	5.15%

加拿大丰业银行银团信贷额度

2026年2月27日，我们修订了由加拿大丰业银行担任代理行（BNS

信贷额度）的一项银团信贷协议，该额度由六家金融机构组成，其中包括两家制造商关联金融

公司。该修订延长了到期日，并将现有的二手车库存融资额度转换为

VIN 专属融资额度，并将二手车库存融资的利差从 1.25% 降至 1.10%。

BNS 信贷额度提供总额约 $1.1 billion CAD 的融资承诺，包括

最高 $125 million CAD 的营运资金循环信贷额度、新车批发库存融资额度（最高

$375 million CAD）、二手车库存融资额度（最高 $100 million CAD）、批发租赁融资额度（最高 $500

million CAD）以及每日租赁车辆融资额度（最高 $25 million CAD。

BNS 信贷额度的利率因债务类型而异，采用加拿大隔夜回购利率平均值（Term 或 Daily

复利利率（CORRA）加信用利差调整值 CORRA）再加

0.30%，批发库存融资额度的利差为 1.00%，二手车库存融资额度为 1.10%，每日租赁融资额度为 1.20%

，批发租赁融资额度为 1.30%，营运资金

循环额度的适用利差为 1.25% 至 2.25%，具体取决于我们的杠杆率。承诺额度的年利率

如下：


承诺额度	截至 September 30, 2026 的年利率
批发库存融资额度	3.61%
二手车库存融资额度	3.71%
每日租赁融资额度	3.81%
批发租赁融资额度	3.91%
营运资金循环额度	3.86%

除批发和二手车库存融资额度（均为随时偿还额度）外，所有 BNS 融资额度的到期日均为

March 18, 2029。信贷协议包含此类协议通常涉及的各项财务及其他契约。

Mizuho 仓储融资额度

2026 年 9 月 30 日，我们修订了与 Mizuho Bank Ltd. 就汽车贷款组合设立的证券化融资额度

（Mizuho 仓储融资额度）；Mizuho Bank Ltd. 担任行政代理人和账户银行。修订将承诺终止日期延长

至 July 31, 2028，并修改了若干抵押品资格、集中度及对冲条款。该修订还


	$\"Lithia$	合并财务报表附注	14

将该融资额度的利率下调至 Daily Simple SOFR 利率加 0.825%。Mizuho 仓储融资额度

提供最高 $1.0 billion 的总融资承诺。

无追索权应付票据

在 2026 年，我们发行了总额为 15亿美元的与资产支持定期融资相关的无追索权应付票据

交易。

以下为已发行未偿无追索权应付票据汇总：


（百万美元）	截至 9月30日， 2026	初始本金金额	发行日期	利率区间	最终分配日期
LAD Auto Receivables Trust 2023-1 D类	7.3	31.3	02/14/23	7.30% 至 7.30%	不同日期，至 2030年6月
LAD Auto Receivables Trust 2023-2 C-D类	36.3	79.5	05/24/23	5.58% 至 6.30%	不同日期，至 2031年2月
LAD Auto Receivables Trust 2023-3 C-D类	50.5	56.7	08/23/23	6.43% 至 6.92%	不同日期，至 2030年12月
LAD Auto Receivables Trust 2023-4 B-D类	66.4	80.5	11/15/23	6.39% 至 7.37%	不同日期，至 2031年4月
LAD Auto Receivables Trust 2024-1 A-D类	68.0	100.9	02/14/24	5.17% 至 6.15%	不同日期，至 2031年6月
LAD Auto Receivables Trust 2024-2 A-D类	116.3	118.2	06/20/24	5.46% 至 6.37%	不同日期，至 2031年10月
LAD Auto Receivables Trust 2024-3 A-D类	221.5	306.3	11/15/24	4.52% 至 5.18%	不同日期，至 2032年2月
LAD Auto Receivables Trust 2025-1 A-D类	247.3	311.4	02/12/25	4.69% 至 5.52%	不同日期，至 2032年5月
LAD Auto Receivables Trust 2025-2 A-D类	312.3	443.3	08/13/25	4.25% 至 5.01%	不同日期，至 2032年12月
LAD Auto Receivables Trust 2025-3 A-C类	394.6	477.4	11/13/25	4.03% 至 4.60%	不同日期，至 2033年3月
LAD Auto Receivables Trust 2026-1 A-C类	401.4	532.1	02/18/26	3.75% 至 4.42%	不同日期，至 2033年8月
LAD Auto Receivables Trust 2026-2 A-C类	434.9	525.6	05/13/26	4.17% 至 4.94%	不同日期，至 2033年10月
LAD Select Auto Receivables Trust 2026-A A-E类	408.9	462.5	07/29/26	4.05% 至 7.45%	不同日期，至 2034年6月
无追索权应付票据总额	$2,765.7	$3,525.7

附注9。退休计划和退休后福利

公司赞助的固定收益养老金计划

我们维持两项公司赞助的固定收益计划，适用于部分过去和现在的受薪

团队成员；这些计划已关闭，不再累积未来福利。

定期净福利

利息成本表示随着时间的推移，预计福利义务（即折现后的金额）的增加，原因是

时间流逝。计划资产预期回报反映了使用估算的长期回报率计算的计划资产投资当年收益金额。


	截至9月30日的三个月	截至9月30日的九个月
（百万）	2026	2025	2026	2025
利息成本	$8.4	$8.4	$25.1	$25.2
计划资产预期回报	(9.0)	(10.8)	(27.0)	(32.3)
净损失摊销	0.1	—	0.4	—
定期净福利	$(0.5)	$(2.4)	$(1.5)	$(7.1)

截至九个月期间，即2026年9月30日，养老金计划的注资额为600万美元。我们估计，

2026年剩余时间的现金缴款约为220万美元。


	$\"Lithia$	合并财务报表附注	15

附注 10. 权益

普通股回购

我们的普通股回购依据董事会授予的回购授权进行，并涉及董事会以及与

归属的RSUs所扣留的股份。

2026年5月，我们的董事会批准了额外的5亿美元普通股回购授权。该

授权与董事会此前批准的回购金额合并后，使总董事会授权达到

37亿美元。根据我们的授权进行的股份回购情况如下：


	2026年发生的回购	累计回购（截至 2026年9月30日
	股份	平均价格1	股份	平均价格
股份回购授权	2,041,727	$287.07	13,338,691	$233.50

1价格未计入《通胀削减法案》规定的消费税；截至550万美元的消费税金额适用于九个月期间，即

2026年9月30日。

截至2026年9月30日，根据董事会在2026年及以前年度授予的股份回购授权，我们尚有5.354亿美元可用于回购

股份。董事会。

此外，在2026年期间，我们回购了115,367股，平均价格为每股$332.32，总额为

3,830万美元，涉及归属RSUs时相关的税款预扣。与

股票奖励相关的税款预扣所涉及的股份回购，不会减少董事会批准的可回购股份数量

。董事会。

附注 11. 公允价值计量

用于确定我们金融资产和负债公允价值的因素可归纳为三大

类别：

•第 1 级 - 活跃市场中相同证券的报价；

•第 2 级 - 其他重要可观察输入值，包括类似证券的报价、利率、

提前还款利差、信用风险；以及

•第 3 级 - 重要不可观察输入值，包括我们在确定公允价值时采用的自身假设。

我们认为现金、受限现金、现金等价物、应收账款、应付贸易款、

应计负债、融资应收款和短期借款的账面价值接近其公允价值，这是因为这些工具的条款性质及其当前市场利率。

我们认为浮动利率的账面价值

rate debt approximates fair value.

We have money market securities, which include restricted cash from collections on finance receivables, recorded

as a component of Cash, restricted cash, and cash equivalents in our Consolidated Balance Sheets, as well as

restricted cash on deposit in reserve accounts, recorded as a component of Other non-current assets in our

Consolidated Balance Sheets. These money market securities consist of highly liquid investments with original

maturities of three months or less and are classified as Level 1.

We have investments consisting of equity securities, available for sale debt securities, and equity method

investments with a fair value election. We calculated the estimated fair value of the equity securities, equity method

investments, and U.S. Treasury debt securities using quoted market prices (Level 1). The fair value of corporate and

municipal debt securities are measured using observable Level 2 market expectations at each measurement date.

See Note 6 – Investments.

We have fixed rate debt primarily consisting of amounts outstanding under our senior notes, non-recourse notes

payable, and real estate mortgages. We calculated the estimated fair value of the senior notes using quoted prices

for the identical liability (Level 1). The fair value of non-recourse notes payable are measured using observable

Level 2 market expectations at each measurement date. The calculated estimated fair values of the fixed rate real

estate mortgages and finance lease liabilities use a discounted cash flow methodology with estimated current


	$\"Lithia$	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS	16

Table of Contents

interest rates based on a similar risk profile and duration (Level 2). The fixed cash flows are discounted and

summed to compute the fair value of the debt.

Nonfinancial assets such as goodwill, franchise value, or other long-lived assets are measured and recorded at fair

value during a business combination or when there is an indicator of impairment. We evaluate our goodwill and

franchise value using a qualitative assessment process. If the qualitative factors determine that it is more likely than

not that the carrying value exceeds the fair value, we would further evaluate for potential impairment using a

quantitative assessment. The quantitative assessment estimates fair values using unobservable (Level 3) inputs by

discounting expected future cash flows of the store for franchise value, or reporting unit for goodwill. The forecasted

cash flows contain inherent uncertainties, including significant estimates and assumptions related to growth rates,

margins, working capital requirements, and cost of capital, for which we utilize certain market participant-based

assumptions we believe to be reasonable. We estimate the value of other long-lived assets that are recorded at fair

value on a non-recurring basis on a market valuation approach. We use prices and other relevant information

generated primarily by recent market transactions involving similar or comparable assets, as well as our historical

experience in divestitures, acquisitions and real estate transactions. Additionally, we may use a cost valuation

approach to value long-lived assets when a market valuation approach is unavailable. Under this approach, we

determine the cost to replace the service capacity of an asset, adjusted for physical and economic obsolescence.

When available, we use valuation inputs from independent valuation experts, such as real estate appraisers and

brokers, to corroborate our estimates of fair value. Real estate appraisers’ and brokers’ valuations are typically

developed using one or more valuation techniques including market, income and replacement cost approaches.

Because these valuations contain unobservable inputs, we classified the measurement of fair value of long-lived

assets as Level 3.

There were no changes to our valuation techniques during the nine-month period ended September 30, 2026.

Below are our assets and liabilities that are measured at fair value:


	As of September 30, 2026	As of December 31, 2025
(In millions)	Carrying Value	Level 1	Level 2	Level 3	Carrying Value	Level 1	Level 2	Level 3
Recorded at fair value
Marketable securities
Restricted cash - collections	$144.9	$144.9	$—	$—	$131.3	$131.3	$—	$—
Restricted cash - reserve	42.0	42.0	—	—	34.3	34.3	—	—
Total money market funds	$186.9	$186.9	$—	$—	$165.6	$165.6	$—	$—

Equity securities	$8.9	$8.9	$—	$—	$2.4	$2.4	$—	$—

U.S. Treasury	$25.0	$25.0	$—	$—	$21.6	$21.6	$—	$—
Municipal debt	10.3	—	10.3	—	10.6	—	10.6	—
Corporate debt	31.9	—	31.9	—	21.8	—	21.8	—
Total debt securities	$67.2	$25.0	$42.2	$—	$54.0	$21.6	$32.4	$—

Equity Method Investment
PINE.L	$217.5	$217.5	$—	$—	$177.2	$177.2	$—	$—

Recorded at historical value
Fixed rate debt 1
4.625% Senior notes due 2027	$400.0	$394.5	$—	$—	$400.0	$398.0	$—	$—
3.875% Senior notes due 2029	800.0	750.0	—	—	800.0	770.0	—	—
5.500% Senior notes due 2030	600.0	576.0	—	—	600.0	602.3	—	—
4.375% Senior notes due 2031	550.0	503.3	—	—	550.0	526.6	—	—
Non-recourse notes payable	2,765.7	—	2,744.0	—	2,473.9	—	2,489.0	—
Real estate mortgages and other debt	710.1	—	680.6	—	730.0	—	703.8	—

1Excluding unamortized debt issuance costs


	$\"Lithia$	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS	17

Table of Contents

NOTE 12. ACQUISITIONS

In the first nine months of 2026, we completed the following acquisitions:

•In February 2026, Mercedes-Benz of Medford in Oregon.

•In March 2026, Toyota of Gallatin in Tennessee.

•In March 2026, Read Motor Group in the United Kingdom.

•In April 2026, Newport Citroen and Peugeot in the United Kingdom.

•In April 2026, Agility Fleet in the United Kingdom.

•In May 2026, Kia of North Tucson in Arizona.

•In May 2026, Preston, Chester & Derby Group 1 Jaguar Land Rover in the United Kingdom.

•In July 2026, Northwest CDJR of Beaverton in Oregon.

•In August 2026, Hyundai of Rockwall in Texas.

The acquisitions were accounted for as business combinations under the acquisition method of accounting. The

results of operations of the acquired stores are included in our Consolidated Financial Statements from the date of

acquisition.

Revenue and operating income contributed by the 2026 acquisitions subsequent to the date of acquisition were as

follows (in millions):


Nine Months Ended September 30,	2026
Revenue	$277.9
Operating income	11.2

The following tables summarize the consideration paid for the 2026 acquisitions and the PPA for identified assets

acquired and liabilities assumed as of the acquisition date:


(In millions)	Consideration
Cash paid, net of cash acquired	$264.8
Total consideration transferred	$264.8


(In millions)	Assets Acquired and Liabilities Assumed
Accounts receivables, net	$1.1
Inventories, net	62.3
Property and equipment	127.6
Operating lease right-of-use assets	2.2
Other assets	154.8
Floor plan notes payable assumed	(12.2)
Trade payables	(2.5)
Finance lease obligations assumed	(62.0)
Deferred taxes, net	(0.3)
Other liabilities and deferred revenue	(6.2)
Total net assets acquired and liabilities assumed	$264.8

The PPA for the 2026 acquisitions is preliminary, as we have not obtained and evaluated all of the detailed

information necessary to finalize the opening balance sheet amounts in all respects. We recorded the PPA based

upon information that is currently available and recorded unallocated items as a component of Other non-current

assets in the Consolidated Balance Sheets.

We expect all of the goodwill related to U.S. acquisitions in 2026 to be deductible for U.S. federal income tax

purposes.

For the three months ended September 30, 2026, we recorded no acquisition-related expenses, compared with

$15.9 million in the corresponding period of 2025. For the nine months ended September 30, 2026, we recorded

$0.7 million of acquisition related expenses, compared with $16.1 million in the corresponding period of 2025.

Acquisition related expenses are included as a component of SG&A expense.


	$\"Lithia$	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS	18

Table of Contents

The following unaudited pro forma summary presents consolidated information as if all acquisitions in the three and

nine-month periods ended September 30, 2026 and 2025 had occurred on January 1, 2025:


	Three Months Ended September 30,	Nine Months Ended September 30,
(In millions, except per share amounts)	2026	2025	2026	2025
Revenue	$9,961.1	$9,869.1	$29,267.8	$29,003.3
Net income attributable to Lithia Motors, Inc.	292.9	220.1	657.4	692.3
Basic EPS attributable to Lithia Motors, Inc. common stockholders	13.36	8.74	29.09	26.84
Diluted EPS attributable to Lithia Motors, Inc. common stockholders	13.31	8.73	29.03	26.79

We calculated these amounts by applying our accounting policies and estimates. The results of the acquired stores

have been adjusted to reflect the following: depreciation on a straight-line basis over the expected lives for property

and equipment, accounting for inventory on a specific identification method, and recognition of interest expense for

real estate financing related to stores where we purchased the facility. No nonrecurring proforma adjustments

directly attributable to the acquisitions are included in the reported proforma revenues and earnings.

NOTE 13. EARNINGS PER SHARE

We calculate basic EPS by dividing net income attributable to Lithia Motors, Inc. by the weighted average number of

common shares outstanding for the period, including vested RSU awards. We calculate diluted EPS by dividing net

income attributable to Lithia Motors, Inc. by the weighted average number of shares outstanding, adjusted for the

dilutive effect of unvested RSU awards and employee stock purchases.

The following is a reconciliation of net income attributable to Lithia Motors, Inc. and weighted average shares used

for our basic EPS and diluted EPS:


	Three Months Ended September 30,	Nine Months Ended September 30,
(In millions, except per share amounts)	2026	2025	2026	2025
Net income attributable to Lithia Motors, Inc.	$291.1	$217.1	$651.5	$682.7

Weighted average common shares outstanding – basic	21.9	25.2	22.6	25.8
Effect of employee stock purchases and restricted stock units on weighted average common shares outstanding	0.1	—	—	—
Weighted average common shares outstanding – diluted	22.0	25.2	22.6	25.8

Basic EPS attributable to Lithia Motors, Inc. common stockholders	$13.28	$8.63	$28.83	$26.47
Diluted EPS attributable to Lithia Motors, Inc. common stockholders	$13.22	$8.61	$28.77	$26.42

We evaluated the effect of antidilutive securities on common stock for the three and nine-month periods ended

September 30, 2026 and 2025 and determined the effect to be immaterial.

NOTE 14. SEGMENTS

We operate in two reportable segments: Vehicle Operations and Financing Operations. Our Vehicle Operations

consists of all aspects of our auto merchandising and aftersales operations, excluding financing provided by our

Financing Operations. Our Financing Operations provides financing to customers buying and leasing retail vehicles

from our Vehicle Operations, as well as leasing vehicles from our fleet management services provider.

All other remaining unallocated corporate overhead expenses and internal charges are reported under Corporate

and Other. We do not utilize asset information by segment for purposes of assessing performance or allocating

resources and, as a result, we do not present such information.


	$\"Lithia$	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS	19

Table of Contents

The reportable segments identified above represent our business activities for which discrete financial information is

available and for which operating results are regularly provided and reviewed by our CODM to allocate resources

and assess performance. Our CODM is our Chief Executive Officer. The CODM assesses segment performance

using segment income, which is measured as net segment profit before taxes on a U.S. GAAP basis.

We do not regularly provide total asset information by segment to our CODM or utilize the information for purposes

of assessing performance or allocating resources and, as a result, we do not present such information. Certain

financing operations asset information including total managed receivables are used by the financing operations

segment manager to manage operations and are included in various reports regularly provided to our CODM. See

Note 4 – Finance Receivables.

Certain financial information on a segment basis is as follows:


	Three Months Ended September 30,	Nine Months Ended September 30,
(In millions)	2026	2025	2026	2025
Vehicle operations
Total revenue	$9,946.7	$9,675.8	$29,009.4	$28,437.1

Total gross profit	1,495.8	1,466.0	4,414.9	4,361.5
Floor plan interest expense	(70.3)	(57.8)	(195.9)	(169.8)
Personnel expense	(556.8)	(539.6)	(1,658.0)	(1,600.3)
Rent and facility expense	(205.6)	(191.6)	(608.9)	(555.2)
Advertising expense	(79.5)	(72.7)	(237.8)	(214.9)
Other vehicle operations expenses1	(306.5)	(283.3)	(908.5)	(838.2)
Vehicle operations income	277.1	321.0	805.8	983.1

Financing Operations
Interest and fee income	122.1	104.9	349.0	298.0
Interest expense	(56.3)	(52.1)	(161.4)	(150.0)
Total interest margin	65.8	52.8	187.6	148.0
Lease income	29.2	23.4	79.5	67.7
Lease costs	(25.6)	(18.6)	(68.3)	(54.0)
Lease income, net	3.6	4.8	11.2	13.7
Provision expense	(22.5)	(25.8)	(64.7)	(72.5)
Other financing operations expenses2	(14.6)	(12.7)	(44.1)	(37.5)
Financing operations income	32.3	19.1	90.0	51.7

Total segment income for reportable segments	309.4	340.1	895.8	1,034.8

Corporate and other3	112.1	89.2	324.8	243.3
Depreciation and amortization	(71.6)	(65.5)	(212.3)	(194.6)
Other interest expense	(63.1)	(68.3)	(196.0)	(200.5)
Other income (expense), net	104.2	(13.3)	72.7	35.9
Income before income taxes	$391.0	$282.2	$885.0	$918.9

(1)Other vehicle operations expenses includes management fees, data processing fees, outside services fees, insurance

expense, office and other supplies expense, banking expense, and certain overhead expenses.

(2)Other financing operations expenses includes personnel expense, data processing fees, outside services fees, expenses

attributable to underwriting, funding, and loan servicing, and certain overhead expenses.

(3)Corporate and other includes management fee income.


	$\"Lithia$	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS	20

Table of Contents

The following table presents revenue by geographic area:


	Three Months Ended September 30,	Nine Months Ended September 30,
(In millions)	2026	2025	2026	2025
Revenue from external customers:
United States	$7,552.3	$7,681.7	$22,136.0	$22,242.7
United Kingdom	2,039.1	1,716.0	5,858.8	5,315.5
Canada	355.3	278.1	1,014.6	878.9
Total revenue from external customers	$9,946.7	$9,675.8	$29,009.4	$28,437.1

NOTE 15. RECENT ACCOUNTING PRONOUNCEMENTS

In November 2024, the FASB issued ASU 2024-03 related to the disaggregation of certain income statement

expenses. The amendments in this update require public entities to disclose incremental information related to

purchases of inventory, team member compensation, and depreciation, which will provide investors the ability to

better understand entity expenses and make their own judgments about entity performance. The amendments in

this update are effective for fiscal years beginning after December 15, 2026. We plan to adopt this pronouncement

and make the necessary updates to our disclosures for the year ending December 31, 2027, and, aside from these

disclosure changes, we do not expect the amendments to have a material effect on our financial statements.

In December 2025, the FASB issued ASU 2025-11 that included amendments to improve the organization of

required interim disclosures and clarified the scope of their applicability. The amendments in this update are

effective for fiscal years beginning after December 15, 2027. We plan to adopt this pronouncement and make the

necessary updates to our disclosures for the year ending December 31, 2028, and, aside from these disclosure

changes, we do not expect the amendments to have a material effect on our financial statements.

In December 2025, the FASB issued ASU 2025-12 intended to make financial reporting more straightforward by

addressing 33 specific issues within the FASB ASC. The amendments in this update are effective for fiscal years

beginning after December 15, 2026. We plan to adopt this pronouncement and make the necessary updates to our

disclosures for the year ending December 31, 2027, and, aside from these disclosure changes, we do not expect

the amendments to have a material effect on our financial statements.


	$\"Lithia$	MANAGEMENT’S DISCUSSION AND ANALYSIS	21

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Item 2. Management’s Discussion and Analysis of Financial Condition and

Results of Operations

Forward-Looking Statements and Risk Factors

Certain statements under the sections entitled “Management’s Discussion and Analysis of Financial Condition and

Results of Operations,” and “Risk Factors” and elsewhere in this Form 10-Q constitute forward-looking statements

within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. Generally,

you can identify forward-looking statements by terms such as “project,” “outlook,” “target,” “may,” “will,” “would,”

“should,” “seek,” “expect,” “plan,” “intend,” “forecast,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “likely,”

“ensure,” “goal,” “strategy,” “future,” “maintain,” and “continue” or the negative of these terms or other comparable

terms. Examples of forward-looking statements in this Form 10-Q include, among others, statements we make

regarding:

•The profitability of our strategy and growth

•Future market conditions, including anticipated vehicle and other sales, gross profit and inventory supply

•Our business strategy and plans, including our achieving our long-term financial targets

•The growth, expansion, make-up and success of our network, including our finding accretive acquisitions that

meet our target valuations and acquiring additional stores

•Annualized revenues from acquired stores or achieving target returns

•The growth and performance of our Driveway e-commerce home solution and DFC, their synergies and other

impacts on our business and our ability to meet Driveway and DFC-related targets

•The impact of sustainable vehicles and other market and regulatory changes on our business, including

evolving vehicle distribution models

•Our capital allocations and uses and levels of capital expenditures in the future

•Expected operating results, such as improved store performance, continued improvement of SG&A as a

percentage of gross profit and any projections

•Our anticipated financial condition and liquidity, including from our cash and the future availability of our credit

facilities, unfinanced real estate and other financing sources

•Our continuing to purchase shares under our share repurchase program

•Our compliance with financial and restrictive covenants in our credit facilities and other debt agreements

•Our programs and initiatives for team member recruitment, training, and retention

•Our strategies and targets for customer retention, growth, market position, operations, financial results and risk

management

The forward-looking statements contained in this Form 10-Q involve known and unknown risks, uncertainties, and

situations that may cause our actual results to materially differ from the results expressed or implied by these

statements. Certain important factors that could cause actual results to differ from our expectations are discussed in

the Risk Factors section of our 2025 Annual Report on Form 10-K, as supplemented and amended from time to time

in Quarterly Reports on Form 10-Q and our other filings with the SEC.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events that

depend on circumstances that may or may not occur in the future. You should not place undue reliance on these

forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. We

assume no obligation to update or revise any forward-looking statement.

Overview

Lithia and Driveway (NYSE: LAD) is the largest global automotive retailer providing an array of products and

services throughout the vehicle ownership lifecycle. Simple, convenient and transparent experiences are offered

through our comprehensive network of physical locations, e-commerce platforms, captive finance solutions, fleet

management offerings, and other synergistic adjacencies. We have delivered consistent profitable growth in a

massive and unconsolidated industry. Our highly diversified and competitively differentiated design provides us the

flexibility and scale to pursue our vision to modernize personal transportation solutions wherever, whenever and

however consumers desire. As of September 30, 2026, we operated 467 locations representing 59 brands in the

United States, the United Kingdom, and Canada.

We offer a wide array of products and services fulfilling the entire vehicle ownership lifecycle including new and

used vehicles, financing and insurance products, and aftersales automotive repair and maintenance services. We


	$\"Lithia$	MANAGEMENT’S DISCUSSION AND ANALYSIS	22

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strive for diversification in our products, services, brands, and geographic locations to reduce dependence on any

one manufacturer, reduce susceptibility to changing consumer preferences, manage market risk and maintain

profitability. Our diversification, along with our operating structure, provides a resilient and nimble business model.

We seek to provide customers with a seamless, blended online and physical retail experience, broad selection, and

access to specialized expertise and knowledge. Our comprehensive network provides convenient touch points for

customers and provides services throughout the vehicle life cycle. We seek to increase market share and optimize

profitability by focusing on the consumer experience and applying proprietary performance measurement systems

fueled by data science. Our Driveway and GreenCars brands and online customer portal complement our in-store

experiences in the United States and provide convenient, simple, and transparent platforms that serve as our e-

commerce home solutions and allow us to deliver differentiated, proprietary digital experiences. Enhancing our

business, our captive auto financing division allows us to provide financing solutions for customers and diversify our

business model with adjacent products.

Our long-term strategy to create value for our customers, team members and shareholders includes the following

elements:

Driving operational excellence, innovation and diversification

LAD builds magnetic customer loyalty across our 467 stores, our Driveway and GreenCars e-commerce platforms,

and our entire omnichannel ecosystem by focusing on convenient and transparent experiences supported by

proprietary data science. Our entrepreneurial model that emphasizes personal accountability for our team powers

efficient operations and allows dynamic responsiveness to each of our local markets. Our best-in-class performance

management reporting provides the foundation to enable high-performing teams to drive our platform’s full potential.

Investments across our ecosystem built a framework that is responsive to evolving consumer preferences, providing

a foundation that supports our current business and our ongoing expansion. These investments, particularly in our

digital strategies, connect our experienced, knowledgeable team members with our expansive inventory and

physical network of stores to ensure we are agile and adaptable. Additionally, we systematically explore and invest

in transformative adjacencies that are synergistic and complementary to our existing business, such as our captive

auto finance and fleet management offerings.

These investments support the foundational elements of our strategy. We seek to create durable customer loyalty in

our stores and our digital platforms, such as our My Driveway customer portal. These experiences and offerings,

backed by our extensive physical network, broad geographic reach, and customized digital offerings, empower our

people to provide transparent, flexible, and simple retail experiences.

Our performance-based culture is geared toward an incentive-based compensation structure for a majority of our

personnel. We develop pay plans that measure factors such as customer satisfaction, profitability, and individual

performance metrics. These plans reward team members for creating customer loyalty, achieving store potential,

developing high-performing talent, meeting and exceeding manufacturer requirements, and living our core values.

We centralize many administrative functions to drive efficiencies and streamline store-level operations. These

efficiencies allow our local managers to focus on serving customers to increase revenues and gross profit. Our

operations are supported by regional and corporate management, as well as dedicated training and personnel

development programs which allow us to share best practices across our network and develop talent.

Growth through acquisition and network optimization

Our acquisition growth strategy has diversified our business and been financially and culturally successful. Our

disciplined approach focuses on acquiring new vehicle franchises, which operate in markets ranging from mid-sized

regional markets to metropolitan markets. Acquisition of these businesses increases our proximity to consumers

throughout North America and the United Kingdom. While we target annual after tax return of more than 15% for our

acquisitions, we have averaged over a 25% return by the third year of ownership due to a disciplined approach

focusing on accretive, cash flow positive targets at reasonable valuations. In addition to being financially accretive,

acquisitions aim to drive network growth that improves our ability to serve customers through vast selection, greater

density, easy access, and the ability to leverage national branding and advertising.

As we focus on expanding our physical network of stores, one of the criteria we evaluate is a valuation multiple

between 3x to 6x of investment in intangibles to estimated annualized adjusted EBITDA, with various factors


	$\"Lithia$	MANAGEMENT’S DISCUSSION AND ANALYSIS	23

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including location, ability to expand our network and talent considered in determining value. We also target an

investment in intangibles as a percentage of annualized revenues in the range of 15% to 30%.

We regularly optimize and balance our network through strategic divestitures to ensure continued high performance.

We believe our disciplined approach provides us with attractive acquisition opportunities and expanded coast-to-

coast coverage.

Thoughtful capital allocation

We manage our liquidity and available cash to support our long-term plan focused on growth through acquisitions

and investments in our existing business, technology and adjacencies that expand and diversify our business

model. In the current market of elevated acquisition pricing, we have adjusted our free cash flow deployment

strategy. Under current conditions, including recent trends in our stock price, we may consider repurchases as a

more attractive use of funds than acquisitions. Our current free cash flow deployment strategy includes a target

allocation of 25% to 35% investment in acquisitions, 25% investment in capital expenditures, innovation, and

diversification and 40% to 50% in shareholder return in the form of dividends and share repurchases based on

current valuation trends in acquisitions relative to stock price performance. During the first nine months of 2026, we

utilized $252.3 million for capital expenditures investing in our existing business and $264.8 million expanding our

network through acquisitions. We also provided shareholder return in the form of $41.1 million in dividends and

$624.5 million in share repurchases. As of September 30, 2026, we had available liquidity of approximately $1.4

billion, which was comprised of $108.1 million in unrestricted cash, $76.1 million in marketable securities, and $1.3

billion availability on our credit facilities.

Financial Performance

$\"26\"$

$\"27\"$

$\"29\"$

We experienced growth of revenue in 2026 compared to 2025, primarily driven by acquisition growth and supported

by increases in same store aftersales volume and used retail vehicle average selling price per unit. Total gross profit

also grew in 2026 compared to 2025, driven by acquisition growth and supported by increases in same store

aftersales gross margin and used retail vehicle average gross profit per unit. New vehicle gross profit decreased

compared to 2025 due to continued normalization of margins. Net income declined in 2026 compared to 2025,

primarily as a result of our increase in SG&A as a percentage of gross profit.

$\"543\"$

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	$\"Lithia$	MANAGEMENT’S DISCUSSION AND ANALYSIS	24

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Vehicle Operations

Key performance metrics for revenue and gross profit were as follows:


	Three Months Ended September 30,		Nine Months Ended September 30,
($ in millions, except per unit values)	2026	2025	Change	2026	2025	Change
Revenues
New vehicle	$4,868.6	$4,792.4	1.6 %	$14,077.1	$14,076.3	— %
Used vehicle	3,630.1	3,463.3	4.8	10,647.8	10,192.3	4.5
Finance and insurance	361.4	378.6	(4.5)	1,087.5	1,116.8	(2.6)
Aftersales	1,086.6	1,041.5	4.3	3,197.0	3,051.7	4.8
Total revenues	9,946.7	9,675.8	2.8	$29,009.4	$28,437.1	2.0

Gross profit
New vehicle	$277.9	$291.4	(4.6) %	$821.4	$898.2	(8.6) %
Used vehicle	210.9	189.2	11.5	612.6	583.1	5.1
Finance and insurance	361.4	378.6	(4.5)	1,087.5	1,116.7	(2.6)
Aftersales	645.6	606.8	6.4	1,893.4	1,763.5	7.4
Total gross profit	1,495.8	1,466.0	2.0	$4,414.9	$4,361.5	1.2

Gross profit margins
New vehicle	5.7%	6.1%	(40) bps	5.8%	6.4%	(60) bps
Used vehicle	5.8	5.5	30	5.8	5.7	10
Finance and insurance	100.0	100.0	—	100.0	100.0	—
Aftersales	59.4	58.3	110	59.2	57.8	140
Total gross profit margin	15.0	15.2	(20)	15.2	15.3	(10)

Units sold
New vehicle	105,471	104,332	1.1 %	304,347	305,151	(0.3) %
Used vehicle retail	109,791	109,097	0.6	326,056	325,476	0.2

Average selling price per unit (excluding agency)
New vehicle	$46,777	$46,804	(0.1) %	$46,938	$47,165	(0.5) %
Used vehicle retail	29,499	28,381	3.9	29,180	27,990	4.3

Average gross profit per unit
New vehicle	$2,635	$2,793	(5.7)%	$2,699	$2,943	(8.3)%
Used vehicle retail	1,970	1,773	11.1	1,889	1,818	3.9
Finance and insurance	1,733	1,818	(4.7)	1,782	1,814	(1.8)
Total vehicle 1	3,949	4,025	(1.9)	4,000	4,120	(2.9)

1Includes the sales and gross profit related to new, used, and finance and insurance and unit sales for new and used retail.


	$\"Lithia$	MANAGEMENT’S DISCUSSION AND ANALYSIS	25

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Same Store Operating Data

We believe that same store comparisons are an important indicator of our financial performance. Same store

measures demonstrate our ability to grow revenues in our existing locations. As a result, same store measures have

been integrated into the discussion below.

Same store measures reflect results for stores that were operating in each comparison period and only include the

months when operations occurred in both periods. For example, a store acquired in August 2025 would be included

in same store operating data beginning in September 2026, after its first complete comparable month of operation.

The third quarter operating results for the same store comparisons would include results for that store in only the

month of September for both comparable periods.


	Three Months Ended September 30,		Nine Months Ended September 30,
($ in millions, except per unit values)	2026	2025	Change	2026	2025	Change
Revenues
New vehicle	$4,608.3	$4,729.9	(2.6) %	$13,293.7	$13,784.0	(3.6) %
Used vehicle	3,419.4	3,409.5	0.3	10,023.4	9,932.6	0.9
Finance and insurance	345.1	375.6	(8.1)	1,039.6	1,102.0	(5.7)
Aftersales	1,027.9	1,021.0	0.7	3,018.5	2,964.1	1.8
Total revenues	9,400.6	9,536.0	(1.4)	$27,375.2	$27,782.8	(1.5)

Gross profit
New vehicle	$263.9	$288.4	(8.5) %	$778.0	$881.6	(11.8) %
Used vehicle	203.1	185.8	9.3	586.6	575.2	2.0
Finance and insurance	345.1	375.6	(8.1)	1,039.6	1,102.0	(5.7)
Aftersales	611.1	596.9	2.4	1,786.0	1,721.2	3.8
Total gross profit	1,423.2	1,446.7	(1.6)	$4,190.2	$4,280.1	(2.1)

Gross profit margins
New vehicle	5.7%	6.1%	(40) bps	5.9%	6.4%	(50) bps
Used vehicle	5.9	5.4	50	5.9	5.8	10
Finance and insurance	100.0	100.0	—	100.0	100.0	—
Aftersales	59.5	58.5	100	59.2	58.1	110
Total gross profit margin	15.1	15.2	(10)	15.3	15.4	(10)

Units sold
New vehicles	100,559	103,318	(2.7) %	289,351	300,917	(3.8) %
Used vehicle retail	104,612	108,039	(3.2)	311,741	320,566	(2.8)

Average selling price per unit (excluding agency)
New vehicles	$46,470	$46,652	(0.4) %	$46,659	$46,843	(0.4) %
Used vehicle retail	29,197	28,200	3.5	28,770	27,703	3.9

Average gross profit per unit
New vehicles	$2,624	$2,792	(6.0)%	$2,689	$2,930	(8.2)%
Used vehicle retail	1,993	1,759	13.3	1,893	1,818	4.1
Finance and insurance	1,736	1,821	(4.7)	1,784	1,816	(1.8)
Total vehicle 1	3,958	4,021	(1.6)	4,000	4,117	(2.8)

1Includes the sales and gross profit related to new, used, and finance and insurance and unit sales for new and used retail.

New Vehicles

We believe that our new vehicle sales create incremental profit opportunities through certain manufacturer incentive

programs, arranging of third-party financing, vehicle service and insurance contracts, future resale of used vehicles

acquired through trade-in, and aftersales. Our leaders in each market continue to adapt to changing conditions,

respond to customer needs and manage inventory availability and selection.


	$\"Lithia$	MANAGEMENT’S DISCUSSION AND ANALYSIS	26

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Q3 2026 vs. Q3 2025

New vehicle revenue for the three months ended September 30, 2026 increased 1.6% compared to the same

period of 2025, driven by acquisition activity. Same store new vehicle revenue decreased 2.6% due to a decrease in

unit volume of 2.7% and a decrease in average selling prices of 0.4%.

Same store new vehicle gross profit per unit decreased 6.0%, driven by a decrease in new vehicle gross profit

margins of 40 bps. Total same store new vehicle gross profit per unit, which includes the finance and insurance

revenue generated from the sales of new vehicles, decreased $212 to $4,604.

YTD 2026 vs. YTD 2025

New vehicle revenue for the nine months ended September 30, 2026 remained flat compared to the same period of

2025, primarily due to acquisition growth being offset by same store performance. Same store new vehicle revenue

decreased 3.6% due to a decrease in unit volume of 3.8% and a decrease in average selling prices of 0.4%.

Same store new vehicle gross profit per unit decreased 8.2%, driven by a decrease in new vehicle gross profit

margins of 50 bps. Total same store new vehicle gross profit per unit, which includes the finance and insurance

revenue generated from the sales of new vehicles, decreased $234 to $4,758.

Used Retail Vehicles

Used vehicle retail sales are a strategic focus for organic growth. We offer three categories of used vehicles:

manufacturer certified pre-owned (CPO) vehicles; core vehicles, or late-model vehicles with lower mileage; and

value autos, or vehicles with over 80,000 miles. We continue to focus on procuring vehicles across the full spectrum

of the addressable used vehicle market to provide customers with a wide selection meeting all levels of affordability,

driving increased used vehicle unit volumes. Our used vehicle operations provide an opportunity to generate sales

to customers unable or unwilling to purchase a new vehicle, sell brands other than the store’s new vehicle

franchise(s) and increase sales from finance and insurance and aftersales.

Q3 2026 vs. Q3 2025

Used vehicle retail revenue for the three months ended September 30, 2026 increased 4.8% compared to the same

period of 2025 driven by acquisition activity and supported by same store performance. On a same store basis,

used vehicle retail revenue increased 0.3% due to an increase in average selling prices of 3.5%, offset by a

decrease in unit volume of 3.2%.

Total same store used vehicle retail gross profit per unit, which includes the finance and insurance revenue

generated from the sales of retail used vehicles, increased $125 to $3,550.

YTD 2026 vs. YTD 2025

Used vehicle retail revenue for the nine months ended September 30, 2026 increased 4.5% compared to the same

period of 2025 driven by acquisition activity and supported by same store performance. On a same store basis,

used vehicle retail sales increased 0.9% due to an increase in average selling prices of 3.9%, offset by a decrease

in unit volume of 2.8%.

Total same store used vehicle retail gross profit per unit, which includes the finance and insurance revenue

generated from the sales of used retail vehicles, increased $37 to $3,477.

Finance and Insurance

We believe that arranging vehicle financing is an important part of our ability to sell vehicles, and we attempt to

arrange financing for every vehicle we sell. We also offer related products such as extended warranties, insurance

contracts and vehicle and theft protection which promotes continued engagement with the consumer throughout the

ownership lifecycle.

Q3 2026 vs. Q3 2025

Total finance and insurance income decreased 4.5% in the three months ended September 30, 2026 compared to

the same period of 2025, driven by lower same store sales of finance and insurance products per retail vehicle sold,

offset by acquisition activity. Same store finance and insurance revenues decreased 8.1%. On a same store basis,

our finance and insurance revenue per retail unit decreased $85 to $1,736.


	$\"Lithia$	MANAGEMENT’S DISCUSSION AND ANALYSIS	27

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YTD 2026 vs. YTD 2025

Total finance and insurance income decreased 2.6% in the nine months ended September 30, 2026 compared to

the same period of 2025, driven by same store performance, offset by acquisition activity. Same store finance and

insurance revenues decreased 5.7%. On a same store basis, our finance and insurance revenue per retail unit

decreased $32 to $1,784.

Aftersales

We provide automotive repair and maintenance services for customers for the new vehicle brands sold by our

stores, as well as service and repairs for most other makes and models. These aftersales services are an integral

part of our customer retention and the largest contributor to our overall profitability. Earnings from aftersales

continue to prove to be more resilient during economic downturns, when owners tend to repair their existing

vehicles rather than buy new vehicles. We believe the increased number of units in operation will continue to benefit

our aftersales revenue in the coming years as more late-model vehicles age, necessitating repairs and

maintenance.

Q3 2026 vs. Q3 2025

Our aftersales revenue increased 4.3% in the three months ended September 30, 2026 compared to the same

period of 2025, driven by acquisition activity and same store performance.

We focus on retaining customers by offering competitively-priced routine maintenance and through our marketing

efforts. Customer pay revenue accounted for the largest share of our same-store aftersales revenue, representing

56.5% of the total.

Same store aftersales gross profit increased 2.4%. This increase was primarily due to increased volume of warranty

transactions. Overall same store aftersales gross margins increased 100 bps, primarily as a result of increased

warranty gross margin of 240 bps.

YTD 2026 vs. YTD 2025

Our aftersales revenue increased 4.8% in the nine months ended September 30, 2026 compared to the same

period of 2025, driven by same store performance and supported by acquisition activity. Same store aftersales

revenue increased 1.8%, driven by an increase in customer pay revenues of 1.8% and an increase in warranty

revenues of 4.4% compared to the prior year.

Same store aftersales gross profit increased 3.8%. This increase was primarily due to increased volume of

customer pay transactions. Overall same store aftersales gross margins increased 110 bps, primarily as a result of

increased customer pay margins of 80 bps and increased warranty gross margins of 150 bps.

Financing Operations

In the United States, Financing Operations is a captive lender, originating loans only from our stores and Driveway.

In Canada, Financing Operations originates loans and leases from both our Canadian stores and third-party

dealerships. In the United Kingdom, Financing Operations is related to our fleet funding and management division.

These product offerings add diversity to the business model and provide an opportunity to capture additional profits,

cash flows, and sales while managing our reliance on third-party finance sources.

Financing Operations income reflects the interest and fee income generated by the portfolio of auto loan and

finance lease receivables, plus the lease income generated by our net investment in operating leases, less the

interest expense associated with the debt utilized to fund the lending, including internal capital, a provision for

estimated loan and lease losses, depreciation on vehicles leased via operating leases, and directly-related

expenses.


	$\"Lithia$	MANAGEMENT’S DISCUSSION AND ANALYSIS	28

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Selected Financing Operations Financial Information


	Three Months Ended September 30,	Nine Months Ended September 30,
($ in millions)	2026	% (1)	2025	% (1)	2026	% 1	2025	% 1
Interest and fee income	$122.1	8.7	$104.9	9.2	$349.0	8.8	$298.0	9.2
Interest expense	(56.3)	(4.0)	(52.1)	(4.6)	(161.4)	(4.1)	(150.0)	(4.6)
Total interest margin	65.8	4.7	52.8	4.6	187.6	4.7	148.0	4.6
Lease income	29.2		23.4		79.5		67.7
Lease costs	(25.6)		(18.6)		(68.3)		(54.0)
Lease income, net	3.6		4.8		11.2		13.7
Provision expense	(22.5)	(1.6)	(25.8)	(2.3)	(64.7)	(1.6)	(72.5)	(2.2)
Other financing operations expenses	(14.6)	(1.0)	(12.7)	(1.1)	(44.1)	(1.1)	(37.5)	(1.2)
Finance operations income	$32.3		$19.1		$90.0		$51.7

Total average managed finance receivables	$5,558.0		$4,541.8		$5,290.6		$4,316.3

1Annualized percentage of total average managed finance receivables.

DFC Portfolio Information1


	Three Months Ended September 30,	Nine Months Ended September 30,
($ in millions)	2026	2025	2026	2025
Loan origination information
Net loans originated	$936.8	$731.6	$2,661.1	$2,085.0
Vehicle units financed	28,622	23,546	82,706	67,971
Total penetration rate 2	18.3%	14.5%	17.9%	14.3%
Weighted average contract rate	7.9%	8.6%	7.9%	8.8%
Weighted average credit score 3	752	746	750	746
Weighted average FE LTV 4	94.6%	95.0%	95.1%	95.0%
Weighted average term (in months)	72	73	72	73

Loan performance information
Allowance for loan losses as a percentage of ending managed receivables	2.8%	3.1%	2.8%	3.1%
Net credit losses on managed receivables	$16.8	$20.6	$47.8	$54.1
Annualized net credit losses as a percentage of total average managed receivables	1.3%	1.9%	1.3%	1.8%
Past due accounts as a percentage of ending managed receivables 5	3.3%	4.1%	3.3%	4.1%
Average recovery rate 6	47.5%	46.5%	48.5%	45.8%

1Excludes Canadian and U.K. portfolios

2Units financed as a percentage of total U.S. new and used vehicle retail units sold.

3The credit scores represent FICO scores and reflect only receivables with obligors that have a FICO score at the time of

application. For receivables with co-borrowers, the FICO score is the primary borrower’s. FICO scores are not a significant

factor in our proprietary credit model, which relies on information from credit bureaus and other application information.

4Front-end loan-to-value represents the ratio of the amount financed to the total collateral value, which is measured as the

vehicle selling price plus applicable taxes, title and fees.

5Past due means loans at least 3 months old that are 30 or more days delinquent.

6The average recovery rate represents the average percentage of the outstanding principal balance we receive when a

vehicle is repossessed and liquidated, generally at wholesale auctions.

Q3 2026 vs. Q3 2025

Financing operations recorded higher income in the three months ended September 30, 2026 compared to the

same period of 2025, primarily due to the increased interest income resulting from the growth of the portfolio and a

decreased cost of funds, which collectively expanded total interest margin to 4.7%.

Loan originations increased in the three months ended September 30, 2026 compared to the same period of 2025,

and our penetration rate increased due to increased engagement with our stores. The weighted average contract

rate of loans originated in the three months ended September 30, 2026 decreased to 7.9%, compared with 8.6% in

the same period of 2025, primarily due to our maintaining competitive pricing following the Federal Reserve rate

cuts during the fourth quarter of 2025. The decrease in annualized net charge-offs of past due accounts as a


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percentage of ending managed receivables compared to the prior year reflects the increased credit quality of the

portfolio as well as improved execution of our collateral management team.

YTD 2026 vs. YTD 2025

Financing operations recorded higher income in the nine months ended September 30, 2026 compared to the same

period of 2025, primarily due to increased interest income resulting from the growth of the portfolio and a decreased

cost of funds, resulting in an expansion of total interest margin to 4.7%.

The weighted average contract rate on loans originated in the nine months ended September 30, 2026 decreased

to 7.9%, compared with 8.8% in the same period of 2025 as we decreased rates to maintain competitiveness

following the Federal Reserve rate cuts during the fourth quarter of 2025. The decrease in provision expense as a

percentage of receivables compared to the prior year reflected lower net charge-offs, attributable to the increased

credit quality of the portfolio and improved servicing, as well as a decrease in the percentage of ending managed

receivables constituted by the allowance for loan losses. Other financing operations expenses as a percentage of

average managed receivables was flat with the same period of 2025 despite significant portfolio growth, reflecting

improved operational performance and economies of scale.

Operating Expenses

Selling, General and Administrative Expense (SG&A)

SG&A includes salaries and related personnel expenses, advertising (net of manufacturer cooperative advertising

credits), rent, facility costs, and other general corporate expenses.

Q3 2026 vs. Q3 2025


	Three Months Ended September 30,	Increase	% Increase
($ in millions)	2026	2025
Personnel	$629.2	$619.6	$9.6	1.5%
Rent and facility costs	111.8	107.6	4.2	3.9
Advertising	70.1	64.9	5.2	8.0
Other	225.2	205.9	19.3	9.4
Total SG&A	$1,036.3	$998.0	$38.3	3.8%


	Three Months Ended September 30,	Increase (Decrease)
As a % of gross profit	2026	2025
Personnel	42.1%	42.3%	(20)bps
Rent and facility costs	7.5	7.3	20
Advertising	4.7	4.4	30
Other	15.0	14.1	90
Total SG&A	69.3%	68.1%	120bps

SG&A as a percentage of gross profit was 69.3% for the three months ended September 30, 2026 compared to

68.1% for the same period of 2025. Total SG&A increased in all expense categories as a result of our acquisition

activity.

On a same store basis and excluding non-core charges, SG&A as a percentage of gross profit was 68.5%

compared to 67.0% for the same period of 2025. The increase was primarily driven by a decrease in gross profit of

1.6% compared to the same period of 2025.

YTD 2026 vs. YTD 2025


	Nine Months Ended September 30,	Increase	% Increase
($ in millions)	2026	2025
Personnel	$1,896.0	$1,868.0	$28.0	1.5%
Rent and facility costs	325.4	306.2	19.2	6.3
Advertising	211.1	190.2	20.9	11.0
Other	655.9	600.9	55.0	9.2
Total SG&A	$3,088.4	$2,965.3	$123.1	4.2%


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	Nine Months Ended September 30,	Increase
As a % of gross profit	2026	2025
Personnel	42.9%	42.8%	10bps
Rent and facility costs	7.4	7.0	40
Advertising	4.8	4.4	40
Other	14.9	13.8	110
Total SG&A	70.0%	68.0%	200bps

SG&A as a percentage of gross profit was 70.0% for the nine months ended September 30, 2026 compared to

68.0% for the same period of 2025. Total SG&A increased in all expense categories as a result of our acquisition

activity.

On a same store basis and excluding non-core charges, SG&A as a percentage of gross profit was 69.5%

compared to 67.1% for the same period of 2025. The increase was primarily driven by a decrease in gross profit of

2.1% compared to the same period of 2025.

SG&A expense adjusted for non-core charges was as follows:

Q3 2026 vs. Q3 2025


	Three Months Ended September 30,	Increase	% Increase
($ in millions)	2026	2025
Personnel	$629.2	$619.6	$9.6	1.5%
Rent and facility costs	111.8	107.6	4.2	3.9
Advertising	70.1	64.9	5.2	8.0
Adjusted other	218.6	203.0	15.6	7.7
Adjusted total SG&A	$1,029.7	$995.1	$34.6	3.5%


	Three Months Ended September 30,	Increase (Decrease)
As a % of gross profit	2026	2025
Personnel	42.1%	42.3%	(20)bps
Rent and facility costs	7.5	7.3	20
Advertising	4.7	4.4	30
Adjusted other	14.5	13.9	60
Adjusted total SG&A	68.8%	67.9%	90bps

Adjusted SG&A for the three months ended September 30, 2026 excludes a $5.8 million net loss on store disposals

and $0.8 million in storm insurance charges.

Adjusted SG&A for the three months ended September 30, 2025 excludes a $15.4 million net gain on store

disposals, $2.5 million in storm insurance charges, and $15.9 million in acquisition-related expenses.

YTD 2026 vs. YTD 2025


	Nine Months Ended September 30,	Increase	% Increase
($ in millions)	2026	2025
Personnel	$1,896.0	$1,868.0	$28.0	1.5%
Rent and facility costs	325.4	306.2	19.2	6.3%
Advertising	211.1	190.2	20.9	11.0%
Adjusted other	640.9	597.0	43.9	7.4%
Adjusted total SG&A	$3,073.4	$2,961.4	$112.0	3.8%


	Nine Months Ended September 30,	Increase
As a % of gross profit	2026	2025
Personnel	42.9%	42.8%	10bps
Rent and facility costs	7.4	7.0	40
Advertising	4.8	4.4	40
Adjusted other	14.5	13.7	80
Adjusted total SG&A	69.6%	67.9%	170bps


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Adjusted SG&A for the nine months ended September 30, 2026 excludes $20.3 million in one-time contract

buyouts, $3.2 million in storm insurance charges, $0.7 million in acquisition-related expenses, and a $9.2 million net

gain on store disposals.

Adjusted SG&A for the nine months ended September 30, 2025 excludes $5.4 million in storm insurance charges,

$16.1 million in acquisition-related expenses, and a $17.7 million net gain on store disposals.

Adjusted SG&A is a non-GAAP measure. See Non-GAAP Reconciliations for more details.

Floor Plan Interest Expense

Below are the details for carrying costs for vehicle inventory:

Q3 2026 vs. Q3 2025


	Three Months Ended September 30,		%
($ in millions)	2026	2025	Change	Change
Floor plan interest expense	$70.3	$57.8	$12.5	21.6%

Floor plan interest expense increased $12.5 million in the three months ended September 30, 2026 compared to the

same period of 2025 due to an increase in floored inventory levels, as a result of our converting used

inventory‑secured revolvers to floorplan facilities during the year, offset by decreased interest rates.

YTD 2026 vs. YTD 2025


	Nine Months Ended September 30,		%
($ in millions)	2026	2025	Change	Change
Floor plan interest expense	$195.9	$169.8	$26.1	15.4%

Floor plan interest expense increased $26.1 million in the nine months ended September 30, 2026 compared to the

same period of 2025 due to an increase in floored inventory levels, as a result of our converting used

inventory‑secured revolvers to floorplan facilities during the year, offset by decreased interest rates.

Depreciation and Amortization

Depreciation and amortization is comprised of depreciation expense related to buildings, significant remodels or

improvements, furniture, tools, equipment, signage, and amortization of certain intangible assets.

Q3 2026 vs. Q3 2025


	Three Months Ended September 30,	Increase	% Increase
($ in millions)	2026	2025
Depreciation and amortization	$71.6	$65.5	$6.1	9.3%

YTD 2026 vs. YTD 2025


	Nine Months Ended September 30,	Increase	% Increase
($ in millions)	2026	2025
Depreciation and amortization	$212.3	$194.6	$17.7	9.1%

Acquisition activity contributed to the increases in depreciation and amortization in 2026 compared to 2025. We

acquired $187.1 million of depreciable property as part of our acquisition activity over the trailing twelve months

ended September 30, 2026. For the nine months ended September 30, 2026, we invested $252.3 million in capital

expenditures. These investments increased the amount of depreciation expense in the three and nine months

ended September 30, 2026. See the discussion under Liquidity and Capital Resources for additional information.

Operating Income

Operating income as a percentage of revenue, or operating margin, was as follows:


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Q3 2026 vs. Q3 2025


	Three Months Ended September 30,
	2026	2025	Change
Operating margin	4.2%	4.4%	(20) bps
Operating margin adjusted for non-core charges 1	4.3%	4.4%	(10) bps

1See Non-GAAP Reconciliations for more details.

Operating margin decreased 20 bps in the three months ended September 30, 2026 compared to the same period

in 2025, primarily due to increased SG&A as a percentage of gross profit, partially offset by improved profitability of

our Financing Operations.

YTD 2026 vs. YTD 2025


	Nine Months Ended September 30,
	2026	2025	Change
Operating margin	4.2%	4.4%	(20) bps
Operating margin adjusted for non-core charges 1	4.2%	4.4%	(20) bps

1See Non-GAAP Reconciliations for more details.

Operating margin decreased 20 bps in the nine months ended September 30, 2026 compared to the same period in

2025, primarily due to increased SG&A as a percentage of gross profit, partially offset by increased profitability of

our Financing Operations.

Non-Operating Expenses

Other Interest Expense

Other interest expense includes interest on senior notes, debt incurred related to acquisitions, real estate

mortgages, service loaner vehicle inventory financing commitments, and revolving lines of credit.

Q3 2026 vs. Q3 2025


	Three Months Ended September 30,	Increase (Decrease)	% Increase (Decrease)
($ in millions)	2026	2025
Senior notes interest	$27.6	$21.0	$6.6	31.4%
Mortgage interest	16.0	14.9	1.1	7.4
Other interest	20.5	34.7	(14.2)	(40.9)
Capitalized interest	(1.0)	(2.3)	(1.3)	NM
Total other interest expense	$63.1	$68.3	$(5.2)	(7.6)%

Other interest expense for the three months ended September 30, 2026 decreased $5.2 million related to

decreased borrowings on used inventory‑secured revolvers compared to the same period of 2025, partially offset by

an increase from our September 2025 issuance of senior notes due 2030.

YTD 2026 vs. YTD 2025


	Nine Months Ended September 30,	Increase (Decrease)	% Increase (Decrease)
($ in millions)	2026	2025
Senior notes interest	$82.7	$59.1	$23.6	39.9%
Mortgage interest	47.6	43.4	4.2	9.7
Other interest	69.6	104.6	(35.0)	(33.5)
Capitalized interest	(3.9)	(6.6)	(2.7)	NM
Total other interest expense	$196.0	$200.5	$(4.5)	(2.2)%

Other interest expense for the nine months ended September 30, 2026 decreased $4.5 million related to decreased

borrowings on used inventory‑secured revolvers compared to the same period of 2025, partially offset by an

increase from our September 2025 issuance of senior notes due 2030.


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Other Income (Expense), net

Q3 2026 vs. Q3 2025


	Three Months Ended September 30,	Increase (Decrease)	% Increase (Decrease)
($ in millions)	2026	2025
Equity method investment	$92.5	$(19.6)	$112.1	NM
Foreign currency remeasurement	0.1	(2.1)	2.2	NM
Net pension benefit	0.5	2.4	(1.9)	(79.2)
Miscellaneous	11.1	6.0	5.1	85.0
Other (expense) income, net	$104.2	$(13.3)	$117.5	NM

Other income, net in the three months ended September 30, 2026 increased $117.5 million compared to the same

period of 2025, primarily as a result of fair value changes in our investment in Pinewood Technologies Group PLC.

YTD 2026 vs. YTD 2025


	Nine Months Ended September 30,	Increase (Decrease)	% Increase (Decrease)
($ in millions)	2026	2025
Equity method investments	$53.6	$11.3	42.3	374.3
Foreign currency remeasurements	(4.9)	3.0	(7.9)	NM
Net pension benefits	1.5	7.1	(5.6)	(78.9)
Miscellaneous	22.5	14.5	8.0	55.2
Other income, net	$72.7	$35.9	$36.8	102.5%

Other income, net in the nine months ended September 30, 2026 increased $36.8 million compared to the same

period of 2025, primarily as a result of fair value changes in our investment in Pinewood Technologies Group PLC.

Income Tax Provision

Our effective income tax rate was as follows:


	Three Months Ended September 30,	Nine Months Ended September 30,
	2026	2025	2026	2025
Effective income tax rate	25.1%	22.5%	25.8%	25.1%
Effective income tax rate excluding non-core items 1	25.7%	21.7%	26.4%	24.6%

1See Non-GAAP Reconciliations for more details.

Our effective income tax rate for the nine months ended September 30, 2026 compared to the prior year was

negatively affected by a lower benefit from valuation allowance reductions and a decrease in general business

credits, partially offset by tax basis differences on assets divested in 2025. Excluding non-core charges and

acquired general business credits, we estimate our annual effective income tax rate to be approximately 26.5% to

27.0%.

Non-GAAP Reconciliations

Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not comparable to

similarly titled measures used by other companies. We caution you not to place undue reliance on such non-GAAP

measures and to consider them together with the most directly comparable GAAP measures. We believe each of

the non-GAAP financial measures below or otherwise presented herein improves the transparency of our

disclosures, provides a meaningful presentation of our results from the core business operations because they

exclude items not related to our ongoing core business operations and other non-cash items, and improves the

period-to-period comparability of our results from the core business operations. We use these measures in

conjunction with GAAP financial measures to assess our business, including our compliance with covenants in our

credit facility and in communications with our Board concerning financial performance. These measures should not

be considered an alternative to GAAP measures.

The following tables reconcile certain reported non-GAAP measures, which we refer to as “adjusted,” to the most

comparable GAAP measure from our Consolidated Statements of Operations.


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	Three Months Ended September 30, 2026
($ in millions, except per share amounts)	As reported	Net loss on disposal of stores	Investment gain	Insurance reserves	Tax attribute	Adjusted
Selling, general and administrative	$1,036.3	$(5.8)	$—	$(0.8)	$—	$1,029.7
Operating income	420.2	5.8	—	0.8	—	426.8
Other income (expense), net	104.2	—	(88.8)	—	—	15.4

Income (loss) before income taxes	$391.0	$5.8	$(88.8)	$0.8	$—	$308.8
Income tax (provision) benefit	(98.1)	(1.6)	23.7	(0.2)	(3.3)	(79.5)
Net income (loss)	292.9	4.2	(65.1)	0.6	(3.3)	229.3
Net income attributable to NCI	(1.8)	—	—	—	—	(1.8)
Net income (loss) attributable to Lithia Motors, Inc.	$291.1	$4.2	$(65.1)	$0.6	$(3.3)	$227.5

Diluted earnings (loss) per share attributable to Lithia Motors, Inc.	$13.22	$0.19	$(2.95)	$0.03	$(0.15)	$10.34
Diluted share count	22.0


	Three Months Ended September 30, 2025
($ in millions, except per share amounts)	As reported	Net gain on disposal of stores	Investment loss	Insurance reserves	Acquisition expenses	Tax attribute	Adjusted
Selling, general and administrative	$998.0	$15.4	$—	$(2.5)	$(15.9)	$—	$995.0
Operating income (loss)	421.6	(15.4)	—	2.5	15.9	—	424.6
Other (expense) income, net	(13.3)	—	22.7	—	—	—	9.4

Income (loss) before income taxes	$282.2	$(15.4)	$22.7	$2.5	$15.9	$—	$307.9
Income tax (provision) benefit	(63.6)	7.2	(6.0)	(0.5)	(0.6)	(3.5)	(67.0)
Net income (loss)	218.6	(8.2)	16.7	2.0	15.3	(3.5)	240.9
Net income attributable to NCI	(1.5)	—	—	—	—	—	(1.5)
Net income (loss) attributable to Lithia Motors, Inc.	$217.1	$(8.2)	$16.7	$2.0	$15.3	$(3.5)	$239.4

Diluted earnings (loss) per share attributable to Lithia Motors, Inc.	$8.61	$(0.32)	$0.66	$0.08	$0.61	$(0.14)	$9.50
Diluted share count	25.2


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	Nine Months Ended September 30, 2026
($ in millions, except per share amounts)	As reported	Net gain on disposal of stores	Investment gain	Insurance reserves	Acquisition expenses	Contract buyouts	Tax attribute	Adjusted
Selling, general and administrative	$3,088.4	$9.2	$—	$(3.2)	$(0.7)	$(20.3)	$—	$3,073.4
Operating income (loss)	1,204.2	(9.2)	—	3.2	0.7	20.3	—	1,219.2
Other income (expense), net	72.7	—	(43.7)	—	—	—	—	29.0

Income (loss) before income taxes	$885.0	$(9.2)	$(43.7)	$3.2	$0.7	$20.3	$—	$856.3
Income tax (provision) benefit	(228.4)	2.4	11.6	(0.9)	(0.1)	(5.1)	(5.3)	(225.8)
Net income (loss)	656.6	(6.8)	(32.1)	2.3	0.6	15.2	(5.3)	630.5
Net income attributable to NCI	(5.1)	—	—	—	—	—	—	(5.1)
Net income (loss) attributable to Lithia Motors, Inc.	$651.5	$(6.8)	$(32.1)	$2.3	$0.6	$15.2	$(5.3)	$625.4

Diluted earnings (loss) per share attributable to Lithia Motors, Inc.	$28.77	$(0.30)	$(1.42)	$0.10	$0.03	$0.67	$(0.24)	$27.61
Diluted share count	22.6


	Nine Months Ended September 30, 2025
($ in millions, except per share amounts)	As reported	Net gain on disposal of stores	Investment gain	Insurance reserves	Acquisition expenses	Tax attribute	Adjusted
Selling, general and administrative	$2,965.3	$17.7	$—	$(5.4)	$(16.1)	$—	$2,961.5
Operating income (loss)	1,253.3	(17.7)	—	5.4	16.1	—	1,257.1
Other income (expense), net	35.9	—	(4.1)	—	—	—	31.8

Income (loss) before income taxes	$918.9	$(17.7)	$(4.1)	$5.4	$16.1	$—	$918.6
Income tax (provision) benefit	(230.9)	11.6	1.0	(1.4)	(0.6)	(5.7)	(226.0)
Net income (loss)	688.0	(6.1)	(3.1)	4.0	15.5	(5.7)	692.6
Net income attributable to NCI	(5.3)	—	—	—	—	—	(5.3)
Net income (loss) attributable to Lithia Motors, Inc.	$682.7	$(6.1)	$(3.1)	$4.0	$15.5	$(5.7)	$687.3

Diluted earnings (loss) per share attributable to Lithia Motors, Inc.	$26.42	$(0.24)	$(0.12)	$0.16	$0.60	$(0.22)	$26.60
Diluted share count	25.8

Liquidity and Capital Resources

We manage our liquidity and capital resources in the context of our overall business strategy, continually forecasting

and managing our cash, working capital balances and capital structure in a way that we believe will meet the short-

term and long-term obligations of our business while maintaining liquidity and financial flexibility. Our current free

cash flow deployment strategy includes a target allocation of 25% to 35% investment in acquisitions, 25%

investment in capital expenditures, innovation, and diversification and 40% to 50% in shareholder return in the form

of dividends and share repurchases based on current valuation trends in acquisitions relative to stock price

performance.

We believe we have sufficient sources of funding to meet our business requirements for the next 12 months and in

the longer term. Cash flows from operations and borrowings under our credit facilities are our main sources for

liquidity. In addition to the above sources of liquidity, potential sources to fund our business strategy include

financing of real estate and proceeds from debt or equity offerings. We evaluate all of these options and may select


	$\"Lithia$	MANAGEMENT’S DISCUSSION AND ANALYSIS	36

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one or more of them depending on overall capital needs and the availability and cost of capital, although no

assurances can be provided that these capital sources will be available in sufficient amounts or with terms

acceptable to us.

Available Sources

Below is a summary of our immediately available funds:


($ in millions)	September 30, 2026	December 31, 2025	Change	% Change
Cash and cash equivalents	$108.1	$109.2	$(1.1)	(1.0)%
Marketable securities	76.1	56.4	19.7	34.9
Available credit on credit facilities	1,256.5	1,359.2	(102.7)	(7.6)
Total current available funds	$1,440.7	$1,524.8	$(84.1)	(5.5)%

Information about our cash flows, by category, is presented in our Consolidated Statements of Cash Flows. The

following table summarizes our cash flows:


	Nine Months Ended September 30,	Change
(In millions)	2026	2025	in Cash Flow
Net cash (used in) provided by operating activities	$(204.9)	$233.0	$(437.9)
Net cash used in investing activities	(481.2)	(479.4)	(1.8)
Net cash provided by financing activities	722.3	264.5	457.8

Operating Activities

Cash used in operating activities for the nine months ended September 30, 2026 was $204.9 million compared to

cash provided by operating activities for the nine months ended September 30, 2025 of $233.0 million, a decrease

of $437.9 million. The decrease was primarily related to changes in inventories, finance receivables, and trade

receivables, partially offset by changes in floor plan notes payable, other assets, and trade payables compared to

the same period of 2025.

Borrowings from and repayments to our syndicated credit facilities related to our vehicle inventory floor plan

financing are presented as financing activities. To better understand the impact of changes in inventory, other

assets, and the associated financing, we also consider our adjusted net cash provided by operating activities to

include borrowings or repayments associated with our vehicle floor plan commitment and exclude the impact of our

finance receivables activity. Adjusted net cash provided by operating activities, a non-GAAP measure, is presented

below:


	Nine Months Ended September 30,	Change
(In millions)	2026	2025	in Cash Flow
Net cash (used in) provided by operating activities – as reported	$(204.9)	$233.0	$(437.9)
Adjust: Net borrowings on floor plan notes payable, non-trade(1)	1,542.2	73.3	1,468.9
Less: Borrowings on floor plan notes payable, non-trade associated with acquired vehicle inventory	(43.5)	(62.9)	19.4
Adjust: Finance receivables activity	831.4	671.3	160.1
Net cash provided by operating activities – adjusted	$2,125.2	$914.7	$1,210.5

(1) Includes the impact of converting inventory‑secured revolvers to floorplan facilities during 2026, increasing net floorplan

borrowings and adjusted operating cash flows by $1,138.3 million.


	$\"Lithia$	MANAGEMENT’S DISCUSSION AND ANALYSIS	37

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Investing Activities

Net cash used in investing activities totaled $481.2 million and $479.4 million, respectively, for the nine months

ended September 30, 2026 and 2025.

Below are highlights of significant activity related to our cash flows from investing activities:


	Nine Months Ended September 30,	Change
(In millions)	2026	2025	in Cash Flow
Capital expenditures	$(252.3)	$(257.7)	$5.4
Cash paid for acquisitions, net of cash acquired	(264.8)	(417.6)	152.8
Net proceeds from sales of stores	31.9	178.1	(146.2)

Capital Expenditures

Below is a summary of our capital expenditure activities ($ in millions):

$\"316\"$

Many manufacturers provide assistance in the form of additional incentives or assistance if facilities meet specified

standards and requirements. We expect that certain facility upgrades and remodels will generate additional

manufacturer incentive payments. Also, tax laws allowing accelerated deductions for capital expenditures reduce

the overall investment needed and encourage accelerated project timelines.

We expect to use a portion of our future capital expenditures to upgrade facilities that we recently acquired. Our

initial evaluation of the investment return metrics applied to each acquisition contemplates this additional capital

investment, which is usually associated with manufacturer standards and requirements.

If we undertake a significant capital commitment in the future, we expect to pay for the commitment out of existing

cash balances, construction financing, and borrowings on one of our credit facilities. Upon completion of the

projects, we believe we would have the ability to secure long-term financing and general borrowings from third party

lenders for 70% to 90% of the amounts expended, although no assurances can be provided that these financings

will be available to us in sufficient amounts or on terms acceptable to us.

Acquisitions

We focus on acquiring stores at attractive purchase prices that meet our return thresholds and strategic objectives.

We look for acquisitions that diversify our brand and geographic mix as we continue to evaluate our portfolio to

minimize exposure to any one manufacturer and achieve financial returns.

We are able to subsequently floor new vehicle inventory acquired as part of an acquisition; however, the cash

generated by this transaction is recorded as borrowings on floor plan notes payable, non-trade.


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Adjusted net cash paid for acquisitions, a non-GAAP measure, as well as certain other acquisition-related

information is presented below:


	Nine Months Ended September 30,
($ in millions)	2026	2025
Number of locations acquired	12	6
Number of stores opened	5	2

Cash paid for acquisitions, net of cash acquired	$(264.8)	$(417.6)
Add: Borrowings on floor plan notes payable: non-trade associated with acquired new vehicle inventory	43.5	62.9
Cash paid for acquisitions, net of cash acquired – adjusted	$(221.3)	$(354.7)

We evaluate potential capital investments primarily based on targeted rates of return on assets and return on our

net equity investment.

Financing Activities

Adjusted net cash (used in) provided by financing activities, a non-GAAP measure, which is adjusted for borrowings

and repayments on floor plan facilities: non-trade and borrowings and repayments associated with our Financing

Operations segment was as follows:


	Nine Months Ended September 30,	Change
(In millions)	2026	2025	in Cash Flow
Cash provided by financing activities, as reported	$722.3	$264.5	$457.8
Less: Net borrowings on floor plan notes payable: non-trade (1)	(1,542.2)	(73.3)	(1,468.9)
Less: Net borrowings on non-recourse notes payable	(291.8)	(136.3)	(155.5)
Cash (used in) provided by financing activities, as adjusted	$(1,111.7)	$54.9	$(1,166.6)

(1) Includes the impact of converting inventory‑secured revolvers to floorplan facilities during 2026, increasing net floorplan

borrowings and adjusted operating cash flows by $1,138.3 million.

Below are highlights of significant activity related to our cash flows from financing activities, excluding borrowings

and repayments on floor plan notes payable: non-trade, which are discussed above:


	Nine Months Ended September 30,	Change
(In millions)	2026	2025	in Cash Flow
Net (repayments) borrowings on lines of credit	$(368.5)	$132.0	$(500.5)
Proceeds from issuance of long-term debt	—	741.0	(741.0)
Principal payments on non-recourse notes payable	(1,228.4)	(959.0)	(269.4)
Proceeds from the issuance of non-recourse notes payable	1,520.2	1,095.3	424.9
Repurchase of common stock	(624.5)	(662.3)	37.8

Equity Transactions

Our Board has approved share repurchase authorizations totaling up to $3.7 billion of our common stock. We

repurchased a total of 2,157,094 shares of our common stock at an average price of $289.49 in the first nine

months of 2026, consisting of 115,367 related to tax withholding on vesting RSUs, and 2,041,727 related to our

repurchase authorizations. As of September 30, 2026, we had $535.4 million remaining available for repurchases

and the authorizations do not have expiration dates.

In the first nine months of 2026, we declared and paid dividends on our common stock as follows:


Dividend paid:	Dividend amount per share	Total amount of dividend (in millions)
March 2026	$0.55	$12.8
May 2026	$0.57	$12.9
August 2026	$0.70	$15.4

We evaluate performance and make a recommendation to the Board on dividend payments on a quarterly basis.


	$\"Lithia$	MANAGEMENT’S DISCUSSION AND ANALYSIS	39

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Summary of Outstanding Balances on Credit Facilities and Long-Term Debt

Below is a summary of our outstanding balances on credit facilities and long-term debt:


	As of September 30, 2026
(In millions)	Outstanding	Remaining Available
Floor plan notes payable: non-trade	$4,504.2	$—	(1)
Floor plan notes payable	2,062.6	—
Daily rental vehicle inventory financing commitments	3.5	0.4	(2)
Revolving lines of credit	1,736.6	1,226.7	(2), (3)
Warehouse facilities	1,743.5	29.4
Non-recourse notes payable	2,765.7	—
4.625% Senior notes due 2027	400.0	—
5.500% Senior notes due 2030	600.0	—
4.375% Senior notes due 2031	550.0	—
3.875% Senior notes due 2029	800.0	—
Real estate mortgages, finance lease obligations, and other debt	1,114.6	—
Unamortized debt issuance costs	(24.4)	—	(4)
Total debt	16,256.3	$1,256.5

Less: Inventory related debt	(6,570.3)
Less: Financing operations related debt	(4,509.2)
Less: Unrestricted cash and cash equivalents	(108.1)
Less: Marketable securities	(76.1)
Less: Availability on daily rental financing facilities	(0.4)
Net debt(5)	$4,992.2

(1)As of September 30, 2026, we had a $2.7 billion vehicle floor plan commitment as part of our US Bank syndicated credit

facility, and a $375 million CAD wholesale floorplan commitment as part of our Bank of Nova Scotia syndicated credit facility.

(2)The amount available on this credit facility is limited based on borrowing base calculations and fluctuates monthly.

(3)Available credit is based on the borrowing base amount effective as of August 31, 2026. This amount is reduced by $6.2

million for outstanding letters of credit.

(4)Debt issuance costs are presented on the balance sheet as a reduction from the carrying amount of the related debt liability.

(5)Non-GAAP financial measure.

Financial Covenants

Our credit facilities, non-recourse notes payable, and senior notes contain customary representations and

warranties, conditions and covenants for transactions of these types.

Recent Accounting Pronouncements

See Note 15 – Recent Accounting Pronouncements for discussion.

Critical Accounting Policies and Use of Estimates

There have been no material changes in the critical accounting policies and use of estimates described in our 2025

Annual Report on Form 10-K filed with the SEC on February 25, 2026.

Seasonality and Quarterly Fluctuations

Our North American operations generally experience lower volumes in the first quarter of each year due to

consumer purchasing patterns and inclement weather in certain of our markets. As a result, financial performance is

expected to be lower during the first quarter than during the second, third and fourth quarters of each fiscal year.

Our U.K. operations generally experience higher volumes in the first and third quarters of each year, due primarily to

new vehicle registration practices in the United Kingdom. We believe that interest rates, levels of consumer debt,

consumer confidence and manufacturer sales incentives, as well as general economic conditions, also contribute to

fluctuations in sales and operating results.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a material current or

future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations,

liquidity, capital expenditures or capital resources.


	$\"Lithia$		40

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes in our reported market risks or risk management policies since the filing of

our 2025 Annual Report on Form 10-K, which was filed with the SEC on February 25, 2026.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We evaluated, with the participation and under the supervision of our Chief Executive Officer and our Chief

Financial Officer, the effectiveness of our disclosure controls and procedures as of the end of the period covered by

this Quarterly Report on Form 10-Q. Based on this evaluation, our Chief Executive Officer and our Chief Financial

Officer concluded that our disclosure controls and procedures are effective to ensure that information we are

required to disclose in reports that we file or submit under the Securities Exchange Act of 1934 is accumulated and

communicated to our management, including our Chief Executive Officer and our Chief Financial Officer, as

appropriate to allow timely decisions regarding required disclosure and that such information is recorded,

processed, summarized and reported within the time periods specified in SEC rules and forms.

Changes in Internal Control Over Financial Reporting

There was no change in our internal control over financial reporting that occurred during our most recent fiscal

quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial

reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

We are party to numerous legal proceedings arising in the normal course of our business. Although we do not

anticipate that the resolution of legal proceedings arising in the normal course of business will have a material

adverse effect on our business, results of operations, financial condition, or cash flows, we cannot predict this with

certainty.

Item 1A. Risk Factors

The information in this Form 10-Q should be read in conjunction with the risk factors and information disclosed in

our 2025 Annual Report on Form 10-K, which was filed with the SEC on February 25, 2026. We have described in

our 2025 Annual Report on Form 10-K, under Risk Factors in Item 1A, the primary risks related to our business and

securities.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

We repurchased the following shares of our common stock during the third quarter of 2026:


For the full calendar month of	Total number of shares purchased2	Average price paid per share	Total number of shares purchased as part of publicly announced plans1	Maximum dollar value of shares that may yet be purchased under publicly announced plan
July	—	$—	—	$620,491
August	60,564	371.14	60,483	598,044
September	185,753	337.02	185,753	535,442
Total	246,317	345.41	246,236

1On May 26, 2026, our Board approved an additional $500 million repurchase authorization of our common stock. This

authorization is in addition to the amount previously authorized by the Board for repurchase, which brings the total

authorizations to $3.7 billion. There are no expiration dates for the share repurchase authorizations.

2Of the shares repurchased in the third quarter of 2026, 81 shares were related to tax withholding upon the vesting of RSUs.


	$\"Lithia$		41

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Item 5. Other Information

Rule 10b5-1 Trading Plans of Directors and Section 16 Officers

During the fiscal quarter ended September 30, 2026, none of our directors or officers (as defined in Rule 16a-1

under the Exchange Act) adopted, modified or terminated any Rule 10b5-1 plan or any non-Rule 10b5-1 trading

arrangement.

Item 6. Exhibits

The following exhibits are filed herewith and this list is intended to constitute the exhibit index.

Incorporated by Reference

Filed or

Furnished

Herewith

Exhibit

Number

Exhibit Description

Form

File

Number

Exhibit

Filing

Date

3.1

Restated Articles of Incorporation of Lithia Motors, Inc.

10-Q

001-14733

3.1

07/28/21

3.2

Bylaws of Lithia Motors, Inc.

8-K

001-14733

3.1

02/20/26

31.1

Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the

Securities Exchange Act of 1934.

31.2

Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the

Securities Exchange Act of 1934.

32.1

Certification of Chief Executive Officer pursuant to Rule 13a-14(b) of the

Securities Exchange Act of 1934 and 18 U.S.C. Section 1350.

32.2

Certification of Chief Financial Officer pursuant to Rule 13a-14(b) of the

Securities Exchange Act of 1934 and 18 U.S.C. Section 1350.

101

Inline XBRL Document Set for the consolidated financial statements and

accompanying notes to consolidated financial statements.

104

Cover page formatted as Inline XBRL and contained in Exhibit 101.


	$\"Lithia$		42

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to

be signed on its behalf by the undersigned thereunto duly authorized.


Date: October 28, 2026	LITHIA MOTORS, INC.
	Registrant

	By:	/s/ Tina Miller
		Tina Miller
		Chief Financial Officer, Senior Vice President, and Principal Accounting Officer

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