Quarterly report [Sections 13 or 15(d)]

Segment Information (Tables)

v3.25.3
Segment Information (Tables)
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Summary of Reportable Operating Segment
Reportable segment financial information for the three and nine months ended September 30, 2025 and 2024 were as follows:

Franchised Dealerships Segment - Reported
Three Months Ended September 30, Nine Months Ended September 30,
2025 2024 2025 2024
(In millions)
Revenues:
Retail new vehicles $ 1,834.0  $ 1,539.9  $ 5,110.1  $ 4,510.8 
Fleet new vehicles 26.0  22.2  77.4  68.0 
Used vehicles 796.7  701.4  2,287.3  2,162.8 
Wholesale vehicles 52.8  42.4  165.1  139.1 
Parts, service and collision repair 510.1  458.9  1,462.5  1,333.2 
Finance, insurance and other, net 147.6  122.4  422.5  366.3 
Cost of sales:
Retail new vehicles (1,742.7) (1,456.4) (4,836.8) (4,238.3)
Fleet new vehicles (26.0) (21.6) (76.3) (65.7)
Used vehicles (756.3) (666.8) (2,167.5) (2,048.7)
Wholesale vehicles (55.7) (43.5) (169.8) (140.9)
Parts, service and collision repair (248.8) (228.2) (715.1) (662.8)
Segment gross profit
 $ 537.7  $ 470.7  $ 1,559.4  $ 1,423.8 
Selling, general and administrative expenses:
Compensation (248.9) (220.2) (707.5) (658.5)
Advertising (18.8) (13.7) (51.4) (43.2)
Rent (12.7) (9.2) (31.8) (29.6)
Other (1)
 (114.7) (97.4) (290.5) (295.7)
Depreciation and amortization (34.6) (31.5) (102.2) (91.6)
Other income (expense):
Interest expense, floor plan (20.7) (18.7) (52.3) (52.5)
Interest expense, other, net (26.4) (28.5) (79.3) (84.1)
Other income (expense), net (0.1) 0.1  —  (0.6)
Segment income
 $ 60.8  $ 51.6  $ 244.4  $ 168.0 
(1)Other selling, general and administrative expenses include various fixed and variable expenses, including gain or loss on disposal of franchises, facility repairs and maintenance, utilities, property taxes, certain customer-related costs such as gasoline and service loaners, and insurance, training, legal and information technology expenses.
EchoPark Segment - Reported
Three Months Ended September 30, Nine Months Ended September 30,
2025 2024 2025 2024
(In millions)
Revenues:
Used vehicles $ 439.2  $ 470.3  $ 1,340.3  $ 1,402.0 
Wholesale vehicles 30.4  23.8  83.2  74.4 
Finance, insurance and other, net 52.9  50.8  167.4  145.2 
Cost of Sales:
Used vehicles (437.2) (465.9) (1,326.0) (1,387.6)
Wholesale vehicles (30.9) (23.8) (84.5) (75.1)
Segment gross profit
 $ 54.4  $ 55.2  $ 180.4  $ 158.9 
Selling, general and administrative expenses:
Compensation (25.0) (23.5) (76.1) (72.0)
Advertising (7.4) (7.4) (22.4) (21.0)
Rent (0.8) (0.7) (2.3) 2.7 
Other (1)
 (10.3) (8.6) (29.8) (32.8)
Depreciation and amortization (5.1) (5.4) (15.5) (16.4)
Other income (expense):
Interest expense, floor plan (2.8) (3.7) (8.6) (11.3)
Interest expense, other, net (0.4) (0.7) (1.1) (2.0)
Other income (expense), net —  —  —  — 
Segment income (loss)
 $ 2.6  $ 5.2  $ 24.6  $ 6.1 
(1)Other selling, general and administrative expenses include various fixed and variable expenses, including facility repairs and maintenance, utilities, property taxes, certain customer-related costs such as gasoline, and insurance, training, legal and information technology expenses.
Powersports Segment - Reported
Three Months Ended September 30, Nine Months Ended September 30,
2025 2024 2025 2024
(In millions)
Revenues:
Retail new vehicles $ 38.8  $ 26.9  $ 85.1  $ 64.4 
Used vehicles 17.2  9.0  31.2  17.6 
Wholesale vehicles 1.0  1.1  2.1  2.3 
Parts, service and collision repair 23.8  20.1  41.4  36.6 
Finance, insurance and other, net 3.3  2.3  6.7  5.8 
Cost of Sales:
Retail new vehicles (32.7) (22.8) (72.4) (55.1)
Used vehicles (14.3) (6.8) (25.6) (13.3)
Wholesale vehicles (1.1) (1.2) (2.2) (2.5)
Parts, service and collision repair (12.7) (10.9) (21.9) (19.6)
Segment gross profit
 $ 23.3  $ 17.7  $ 44.4  $ 36.2 
Selling, general and administrative expenses:
Compensation (9.7) (8.4) (23.1) (19.8)
Advertising (0.3) (0.4) (0.8) (1.2)
Rent 0.2  1.1  0.7  1.0 
Other (1)
 (3.2) (3.6) (9.6) (7.3)
Depreciation and amortization (1.3) (1.1) (3.9) (3.1)
Other income (expense):
Interest expense, floor plan (0.4) (0.7) (1.4) (1.6)
Interest expense, other, net (0.7) (0.6) (2.1) (1.9)
Other income (expense), net (0.1) —  0.1  — 
Segment income (loss)
 $ 7.8  $ 4.0  $ 4.3  $ 2.3 
(1)Other selling, general and administrative expenses include various fixed and variable expenses, including gain or loss on disposal of franchises, facility repairs and maintenance, utilities, property taxes, certain customer-related costs such as gasoline, insurance, training, legal and information technology expenses.
Three Months Ended September 30, Nine Months Ended September 30,
2025 2024 2025 2024
(In millions)
Segment Income (Loss) (1):
Franchised Dealerships Segment (2) $ 60.8  $ 51.6  $ 244.4  $ 168.0 
EchoPark Segment (3) 2.6  5.2  24.6  6.1 
Powersports Segment (4) 7.8  4.0  4.3  2.3 
Total segment income $ 71.2  $ 60.8  $ 273.3  $ 176.4 
Impairment charges (5) —  —  (173.8) (2.4)
Income before taxes $ 71.2  $ 60.8  $ 99.6  $ 174.0 
(1)Segment income (loss) for each segment is defined as income (loss) before taxes and impairment charges.
(2)For the three months ended September 30, 2025, amount includes approximately $2.8 million of pre-tax loss related to the disposal of franchises, and approximately $0.7 million of pre-tax legal expenses. For the three months ended September 30, 2024, amount includes approximately $1.8 million of pre-tax charges related to excess compensation related to a cybersecurity incident impacting certain of our information systems provided by CDK Global (“the CDK outage”) and approximately $1.5 million of pre-tax charges related to storm damage. For the nine months ended September 30, 2025, amount includes $40.0 million of pre-tax benefit from cyber insurance proceeds related to a cybersecurity incident impacting certain of our information systems provided by CDK Global in the second quarter of 2024, approximately $5.0 million of pre-tax charges related to storm damage, approximately $165.9 million of non-cash pre-tax franchise asset impairment charges, approximately $5.5 million of pre-tax loss related to dispositions, and approximately $0.7 million of pre-tax legal expenses. For the nine months ended September 30, 2024, amount includes approximately $13.0 million of pre-tax charges related to excess compensation related to the CDK outage, approximately $5.1 million of pre-tax charges related to storm damage, approximately $2.2 million of pre-tax charges for severance and long-term compensation expense and approximately $1.0 million of non-cash pre-tax impairment charges related to property and equipment. Due to rounding, segment level financial data may not sum to consolidated results.
(3)For the three months ended September 30, 2025, amount includes approximately $0.1 million of pre-tax loss on dispositions. For the three months ended September 30, 2024, amount includes approximately $2.3 million of pre-tax gain on dispositions of real estate. For the nine months ended September 30, 2025, amount includes approximately $0.9 million of pre-tax gain on dispositions, and approximately $0.2 million of non-cash pre-tax property and equipment impairment charges for real estate held for sale. For the nine months ended September 30, 2024, amount includes approximately $3.0 million of pre-tax gain on exit of leased properties, approximately $2.9 million of pre-tax charges for severance and long-term compensation expense, approximately $2.1 million of pre-tax charges related to closed store accrued expenses related to the indefinite suspension of operations at certain EchoPark locations, approximately $1.4 million of non-cash pre-tax impairment charges related to property and equipment, approximately $2.9 million of pre-tax gain on acquisitions and dispositions and approximately $0.4 million of pre-tax charges related to excess compensation related to the CDK outage. Due to rounding, segment level financial data may not sum to consolidated results.
(4)For the three months ended September 30, 2025, amount includes approximately $0.2 million of pre-tax loss related to dispositions. For the nine months ended September 30, 2025, amount includes approximately $1.1 million of pre-tax charges related to dispositions, approximately $0.4 million of non-cash pre-tax property, equipment and right-of-use asset impairment charges, and approximately $7.2 million of non-cash pre-tax franchise asset impairment charges. Due to rounding, segment level financial data may not sum to consolidated results.
(5)For the nine months ended September 30, 2025, amount includes approximately $0.2 million of non-cash pre-tax property and equipment charges for real estate held for sale in the EchoPark Segment, approximately $7.2 million of non-cash pre-tax franchise asset impairment charges for the Powersports Segment, approximately $0.4 million of non-cash pre-tax property, equipment and right-of-use asset impairment charges for the Powersports Segment, and approximately $165.9 million of non-cash pre-tax franchise asset impairment charges for the Franchised Dealerships Segment. For the nine months ended September 30, 2024, amount includes approximately $1.4 million of non-cash pre-tax property and equipment charges for real estate held for sale in the EchoPark Segment and approximately $1.0 million of non-cash pre-tax impairment charges for the Franchised Dealerships Segment. Due to rounding, segment level financial data may not sum to consolidated results.
Three Months Ended September 30, Nine Months Ended September 30,
2025 2024 2025 2024
(In millions)
Segment Capital Expenditures:
Franchised Dealerships Segment $ 32.3  $ 50.3  $ 109.3  $ 141.4 
EchoPark Segment 0.6  0.2  1.1  0.8 
Powersports Segment 0.6  2.8  2.2  3.7 
Total capital expenditures $ 33.5  $ 53.3  $ 112.6  $ 145.9 
September 30, 2025 December 31, 2024
(In millions)
Segment Assets:
Franchised Dealerships Segment $ 5,005.0  $ 4,704.5 
EchoPark Segment 520.5  574.5 
Powersports Segment 226.5  232.7 
Corporate and other:
Cash and cash equivalents 89.4  44.0 
Floor plan deposit balance 175.0  340.0 
Total assets $ 6,016.4  $ 5,895.7