Quarterly report [Sections 13 or 15(d)]

Segment Information

v3.26.3
Segment Information
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Information
9. Segment Information
As of September 30, 2026, Sonic had three operating segments: (1) the Franchised Dealerships Segment; (2) the EchoPark Segment; and (3) the Powersports Segment. Refer to Note 1, “Description of Business and Summary of Significant Accounting Policies,” to the consolidated financial statements in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2025 for additional discussion of our operating segments. Sonic has determined that its operating segments also represent its reportable segments.
The reportable segments identified above are the business activities of Sonic for which discrete financial information is available and for which operating results are regularly reviewed by Sonic’s chief operating decision maker (“CODM”) to assess operating performance and allocate resources. Sonic’s CODM is a group of three individuals consisting of: (1) the Company’s Chief Executive Officer; (2) the Company’s President; and (3) the Company’s Chief Financial Officer.
The CODM uses segment gross profit and segment income (loss) to assess performance and allocate resources across the reportable segments. The CODM evaluates these measures against budget and prior-year results on a monthly basis to assess each segment’s operating performance and determine resource needs. Segment gross profit is used to evaluate the profitability of each segment’s revenue-generating activities, while segment income (loss) is used to evaluate profitability after operating expenses and other income and expenses included in the measure. These evaluations inform the annual budgeting process and ongoing decisions regarding capital expenditures, business expansion, and other investments within and among the segments.
These measures are calculated consistently across the reportable segments using accounting policies consistent with those applied in Sonic’s consolidated financial statements.