Management’s Discussion and Analysis of Financial Condition and Results of Operations, should be read in conjunction with the accompanying unaudited Condensed Consolidated Financial Statements and the notes thereto, as well as our 2025 Form 10-K.
Overview
We are a leading operator in the automotive retail industry. We sell or lease new and used cars and light trucks; arrange related vehicle financing; sell service and insurance contracts; provide automotive maintenance and repair services; and sell vehicle parts retail and wholesale. We have operations in geographically diverse markets that extend across 17 states in the U.S. and 61 towns and cities in the U.K. As of June 30, 2026, our retail network consisted of 147 dealerships in the U.S. and 106 dealerships in the U.K.
Recent Events
On July 20, 2026, President Donald Trump signed a proclamation imposing an additional 50% ad valorem duty on certain products imported from Canada. The additional duty is scheduled to take effect on August 19, 2026, and would apply on top of any existing duties. Preferential tariff treatment under the United States-Mexico-Canada Agreement does not exempt covered goods. At this time, we cannot predict whether the additional duty will be implemented as scheduled, modified or challenged, or the extent or duration of any resulting impact on our business.
During the second quarter of 2026, disruptions in the global supply of Group III base oils, a key component of synthetic motor oil, resulted in supply constraints and increased costs for certain synthetic oils and lubricants across the sector. These disruptions have been attributed to refinery outages and shipping disruptions associated with ongoing geopolitical conflict in the Middle East. Continued supply constraints could increase the cost of lubricants used in our service operations, limit the availability of certain oil grades and affect our ability to perform routine service for customers. At this time, we cannot predict the extent or duration of any such impacts.
In April 2026, we undertook cost-cutting measures within our U.S. business, reducing our staffing by nearly 700 full-time employees and reducing SG&A costs through contract and vendor elimination. We expect that these efforts will remove at least $50 million in annual costs from our U.S. operations.
On April 13, 2026, the U.K. Department for Transport announced a proposal to update minimum vehicle emissions standards to align with the Euro 7 standard implemented in the European Union. If adopted, the Euro 7 standard would set stricter standards for exhaust and non-exhaust vehicle emissions, including greenhouse gas (“GHG”) emissions. Euro 7 would also set battery durability requirements for EVs. If finalized, stricter emissions standards could result in increased costs and affect our U.K. results of operations. The consultation period closed on May 25, 2026, however the proposal has not yet been finalized. Further, on July 6, 2026, the U.K. Department for Transport opened a consultation on its proposal to prohibit the maintenance or modification of vehicles subsequent to their manufacture that would prevent them from meeting the emissions standards in place when the vehicles were originally produced. The Department for Transport has estimated that the legislation will be passed in 2027.
On February 28, 2026, the U.S. and the State of Israel commenced coordinated military operations against the Islamic Republic of Iran (“Iran”). The resulting conflict has increased volatility in global supply chains and energy markets, as well as geopolitical instability. Disruptions affected energy supplies and critical maritime transit routes, particularly the Strait of Hormuz, driving additional increases in fuel prices and reductions in supplies, which adversely affected consumer demand for vehicles and broader economic conditions. On June 17, 2026, the U.S. and Iran signed a memorandum of understanding intended to end the conflict and reopen the Strait of Hormuz. However, the ceasefire has been repeatedly disrupted by renewed military operations and continued attacks in the region. As a result, uncertainty regarding energy markets, commercial shipping and broader geopolitical conditions continues, and we cannot predict the extent nor duration of any resulting impacts on our business, financial condition or results of operations.
On February 20, 2026, the U.S. Supreme Court held that President Donald Trump lacked authority under the International Emergency Economic Powers Act (“IEEPA”) to impose certain reciprocal and other emergency-based tariffs. The decision invalidated those IEEPA-based tariff actions and halted their collection. On the same date, President Donald Trump issued an executive order, which formally terminated those IEEPA‑based tariff actions and directed that their collection cease. Tariffs imposed under other statutory authorities, including Section 232 (such as the automotive and medium/heavy-duty vehicle proclamations), were not affected by the ruling or executive order and remain in force.
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The Supreme Court’s decision and related executive action have created uncertainty regarding the future tariff environment, including the potential for litigation, refund claims by parties directly subject to the invalidated tariffs and the use of alternative statutory authorities by the administration to impose new or modified tariffs. We cannot predict the timing, scope, nor outcome of future tariff‑related actions or their potential effect, if any, on our results of operations. We will continue to monitor the impact of the Trump Administration’s policies and the response of U.S. trading partners on our results of operations in future periods.
On February 18, 2026, the U.S. Environmental Protection Agency (“EPA”) issued a final rule rescinding the GHG “Endangerment Finding,” which provides the authority underpinning the majority of the EPA’s GHG-related regulations, including those for emissions from new motor vehicles and engines, and the National Highway Traffic Safety Administration’s Corporate Average Fuel Economy standards. The final rule also repealed all of the EPA’s GHG emission standards for light-duty, medium-duty and heavy-duty motor vehicles and engines. Litigation challenging the EPA’s final rule is ongoing, and we cannot predict the final outcome. Certain states, such as California, have previously adopted or have announced an intent to adopt standards regulating GHG and other vehicle emissions and setting EV targets. However, on June 12, 2026, the EPA announced its transmission to Congress of four of California’s Clean Air Act preemption waivers, which allow the state to implement more stringent emission control requirements, seeking congressional resolutions disapproving of the waivers under the Congressional Review Act. California has challenged the EPA’s action in the U.S. District Court for the District of Columbia, the outcome of which is uncertain. As a result, there is significant uncertainty with respect to U.S. regulations related to GHG emissions.
Critical Accounting Policies and Accounting Estimates
For discussion of our critical accounting policies and accounting estimates, refer to Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of our 2025 Form 10-K. There have been no material changes to our critical accounting policies or accounting estimates since December 31, 2025.
Results of Operations
The “same store” amounts presented below include the results of dealerships and corporate headquarters for the identical months in each comparative period, commencing with the first full month in which we owned the dealership. Amounts related to divestitures are excluded from each comparative period, ending with the last full month in which we owned the dealership. Same store results provide a measurement of our ability to grow revenues and profitability of our existing stores and also provide a metric for peer group comparisons. For these reasons, same store results allow management to accurately manage and monitor the underlying performance of the business and is also useful to investors.
We evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. Our primary foreign currency exposure is to GBP. We believe providing constant currency information provides valuable supplemental information regarding our underlying business and results of operations, consistent with how we evaluate our performance. We calculate constant currency percentages by converting our current period reported results for entities reporting in currencies other than USD using comparative period exchange rates rather than the actual exchange rates in effect during the respective periods. The constant currency performance measures should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP. Additionally, we caution investors not to place undue reliance on non-GAAP measures, but also to consider them with the most directly comparable U.S. GAAP measures. Our management also uses constant currency and adjusted cash flows from operating, investing and financing activities in conjunction with U.S. GAAP financial measures to assess our business, including communication with our Board of Directors, investors and industry analysts concerning financial performance. We disclose these non-GAAP measures and the related reconciliations because we believe investors use these metrics in evaluating longer-term period-over-period performance. These metrics also allow investors to better understand and evaluate the information used by management to assess operating performance.
Retail new and used vehicle units sold include new and used vehicle agency units sold under agency arrangements with certain manufacturers in the U.K. The agency units and related revenues are excluded from the calculation of the average sales price per unit sold for new and used vehicles due to their net presentation within revenues as only the sales commission is reported in revenues for dealerships operating under an agency arrangement. The agency units and related net revenues are included in the calculation of gross profit per unit sold.
Certain amounts in the financial statements may not compute due to rounding. All computations have been calculated using unrounded amounts for all periods presented.
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The following tables summarize our operating results on a reported basis and on a same store basis:
Reported Operating Data — Consolidated
(In millions, except unit data)
Three Months Ended June 30,
2026 2025 Increase/ (Decrease) % Change Currency Impact on Current Period Results Constant Currency % Change
Revenues:
New vehicle retail sales $ 2,606.1 $ 2,735.5 $ (129.3) (4.7) % $ 2.0 (4.8) %
Used vehicle retail sales 1,718.3 1,848.2 (129.9) (7.0) % 3.1 (7.2) %
Used vehicle wholesale sales 151.5 163.8 (12.3) (7.5) % 0.3 (7.7) %
Total used 1,869.8 2,012.0 (142.2) (7.1) % 3.4 (7.2) %
Parts and service sales 692.4 718.4 (26.0) (3.6) % 0.7 (3.7) %
F&I, net 216.8 237.8 (21.0) (8.8) % 0.2 (8.9) %
Total revenues $ 5,385.1 $ 5,703.5 $ (318.5) (5.6) % $ 6.2 (5.7) %
Gross profit:
New vehicle retail sales $ 173.6 $ 198.4 $ (24.8) (12.5) % $ — (12.5) %
Used vehicle retail sales 81.9 96.4 (14.5) (15.0) % 0.1 (15.2) %
Used vehicle wholesale sales (0.7) 0.5 (1.2) NM — NM
Total used 81.2 96.9 (15.7) (16.2) % 0.1 (16.4) %
Parts and service sales 389.0 402.8 (13.8) (3.4) % 0.3 (3.5) %
F&I, net 216.8 237.8 (21.0) (8.8) % 0.2 (8.9) %
Total gross profit $ 860.6 $ 935.8 $ (75.2) (8.0) % $ 0.7 (8.1) %
Gross margin:
New vehicle retail sales 6.7 % 7.3 % (0.6) %
Used vehicle retail sales 4.8 % 5.2 % (0.4) %
Used vehicle wholesale sales (0.5) % 0.3 % (0.8) %
Total used 4.3 % 4.8 % (0.5) %
Parts and service sales 56.2 % 56.1 % 0.1 %
Total gross margin 16.0 % 16.4 % (0.4) %
Units sold:
Retail new vehicles sold 53,335 55,763 (2,428) (4.4) %
Retail used vehicles sold 53,469 60,240 (6,771) (11.2) %
Wholesale used vehicles sold 15,315 17,030 (1,715) (10.1) %
Total used 68,784 77,270 (8,486) (11.0) %
Average sales price per unit sold:
New vehicle retail $ 51,726 $ 50,557 $ 1,169 2.3 % $ 39 2.2 %
Used vehicle retail $ 32,195 $ 30,713 $ 1,482 4.8 % $ 57 4.6 %
Gross profit per unit sold:
New vehicle retail sales $ 3,254 $ 3,557 $ (303) (8.5) % $ 1 (8.5) %
Used vehicle retail sales $ 1,532 $ 1,600 $ (69) (4.3) % $ 3 (4.5) %
Used vehicle wholesale sales $ (47) $ 29 $ (76) NM $ (2) NM
Total used $ 1,180 $ 1,254 $ (74) (5.9) % $ 2 (6.0) %
F&I PRU $ 2,030 $ 2,050 $ (20) (1.0) % $ 2 (1.0) %
Other:
SG&A expenses $ 623.5 $ 646.1 $ (22.6) (3.5) % $ 0.8 (3.6) %
SG&A as % gross profit 72.4 % 69.0 % 3.4 %
Floorplan expense:
Floorplan interest expense $ 22.0 $ 26.4 $ (4.4) (16.7) % $ — (16.8) %
Less: floorplan assistance (1) 21.9 22.6 (0.7) (3.0) % — (3.0) %
Net floorplan expense $ 0.1 $ 3.8 $ (3.7) $ —
(1) Floorplan assistance is included within Gross profit — New vehicle retail sales above and Cost of sales — New vehicle retail sales in our Condensed Consolidated Statements of Operations.
NM – Not Meaningful
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Same Store Operating Data — Consolidated
(In millions, except unit data)
Three Months Ended June 30,
2026 2025 Increase/ (Decrease) % Change Currency Impact on Current Period Results Constant Currency % Change
Revenues:
New vehicle retail sales $ 2,522.0 $ 2,590.6 $ (68.6) (2.6) % $ 2.0 (2.7) %
Used vehicle retail sales 1,657.9 1,754.9 (96.9) (5.5) % 3.1 (5.7) %
Used vehicle wholesale sales 138.2 146.8 (8.6) (5.9) % 0.3 (6.1) %
Total used 1,796.1 1,901.7 (105.5) (5.5) % 3.4 (5.7) %
Parts and service sales 673.3 659.4 13.9 2.1 % 0.7 2.0 %
F&I, net 211.7 229.0 (17.3) (7.5) % 0.2 (7.6) %
Total revenues $ 5,203.1 $ 5,380.7 $ (177.6) (3.3) % $ 6.2 (3.4) %
Gross profit:
New vehicle retail sales $ 167.6 $ 189.5 $ (21.9) (11.5) % $ — (11.6) %
Used vehicle retail sales 79.6 93.2 (13.6) (14.6) % 0.1 (14.7) %
Used vehicle wholesale sales (0.2) 1.1 (1.4) (119.6) % — (116.6) %
Total used 79.4 94.3 (15.0) (15.9) % 0.1 (16.0) %
Parts and service sales 377.2 377.7 (0.6) (0.2) % 0.3 (0.2) %
F&I, net 211.7 229.0 (17.3) (7.5) % 0.2 (7.6) %
Total gross profit $ 835.9 $ 890.5 $ (54.7) (6.1) % $ 0.7 (6.2) %
Gross margin:
New vehicle retail sales 6.6 % 7.3 % (0.7) %
Used vehicle retail sales 4.8 % 5.3 % (0.5) %
Used vehicle wholesale sales (0.2) % 0.8 % (0.9) %
Total used 4.4 % 5.0 % (0.5) %
Parts and service sales 56.0 % 57.3 % (1.3) %
Total gross margin 16.1 % 16.6 % (0.5) %
Units sold:
Retail new vehicles sold 51,840 53,315 (1,475) (2.8) %
Retail used vehicles sold 51,907 57,534 (5,627) (9.8) %
Wholesale used vehicles sold 14,734 15,938 (1,204) (7.6) %
Total used 66,641 73,472 (6,831) (9.3) %
Average sales price per unit sold:
New vehicle retail $ 51,586 $ 50,114 $ 1,472 2.9 % $ 41 2.9 %
Used vehicle retail $ 32,001 $ 30,528 $ 1,473 4.8 % $ 59 4.6 %
Gross profit per unit sold:
New vehicle retail sales $ 3,233 $ 3,554 $ (321) (9.0) % $ 1 (9.0) %
Used vehicle retail sales $ 1,534 $ 1,620 $ (86) (5.3) % $ 3 (5.5) %
Used vehicle wholesale sales $ (15) $ 71 $ (86) (121.2) % $ (2) (118.0) %
Total used $ 1,191 $ 1,284 $ (93) (7.2) % $ 2 (7.4) %
F&I PRU $ 2,041 $ 2,066 $ (25) (1.2) % $ 2 (1.3) %
Other:
SG&A expenses $ 593.8 $ 605.0 $ (11.2) (1.9) % $ 0.8 (2.0) %
SG&A as % gross profit 71.0 % 67.9 % 3.1 %
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Reported Operating Data — Consolidated
(In millions, except unit data)
Six Months Ended June 30,
2026 2025 Increase/ (Decrease) % Change Currency Impact on Current Period Results Constant Currency % Change
Revenues:
New vehicle retail sales $ 5,168.5 $ 5,415.4 $ (246.9) (4.6) % $ 41.3 (5.3) %
Used vehicle retail sales 3,493.2 3,603.6 (110.4) (3.1) % 44.2 (4.3) %
Used vehicle wholesale sales 300.9 315.4 (14.4) (4.6) % 3.7 (5.7) %
Total used 3,794.2 3,919.0 (124.8) (3.2) % 47.8 (4.4) %
Parts and service sales 1,396.8 1,410.4 (13.6) (1.0) % 12.1 (1.8) %
F&I, net 432.7 464.0 (31.3) (6.7) % 2.8 (7.3) %
Total revenues $ 10,792.2 $ 11,208.8 $ (416.7) (3.7) % $ 103.9 (4.6) %
Gross profit:
New vehicle retail sales $ 346.3 $ 388.0 $ (41.7) (10.8) % $ 3.2 (11.6) %
Used vehicle retail sales 169.6 189.9 (20.3) (10.7) % 2.0 (11.7) %
Used vehicle wholesale sales 0.8 2.0 (1.2) (60.4) % (0.1) (53.7) %
Total used 170.5 192.0 (21.5) (11.2) % 1.8 (12.2) %
Parts and service sales 789.1 783.8 5.3 0.7 % 6.8 (0.2) %
F&I, net 432.7 464.0 (31.3) (6.7) % 2.8 (7.3) %
Total gross profit $ 1,738.4 $ 1,827.7 $ (89.3) (4.9) % $ 14.6 (5.7) %
Gross margin:
New vehicle retail sales 6.7 % 7.2 % (0.5) %
Used vehicle retail sales 4.9 % 5.3 % (0.4) %
Used vehicle wholesale sales 0.3 % 0.6 % (0.4) %
Total used 4.5 % 4.9 % (0.4) %
Parts and service sales 56.5 % 55.6 % 0.9 %
Total gross margin 16.1 % 16.3 % (0.2) %
Units sold:
Retail new vehicles sold 105,733 111,862 (6,129) (5.5) %
Retail used vehicles sold 110,454 119,858 (9,404) (7.8) %
Wholesale used vehicles sold 30,717 33,384 (2,667) (8.0) %
Total used 141,171 153,242 (12,071) (7.9) %
Average sales price per unit sold:
New vehicle retail $ 52,065 $ 50,210 $ 1,855 3.7 % $ 411 2.9 %
Used vehicle retail $ 31,684 $ 30,084 $ 1,600 5.3 % $ 401 4.0 %
Gross profit per unit sold:
New vehicle retail sales $ 3,275 $ 3,469 $ (194) (5.6) % $ 30 (6.5) %
Used vehicle retail sales $ 1,536 $ 1,585 $ (49) (3.1) % $ 18 (4.2) %
Used vehicle wholesale sales $ 26 $ 61 $ (35) (57.0) % $ (4) (49.6) %
Total used $ 1,207 $ 1,253 $ (45) (3.6) % $ 13 (4.7) %
F&I PRU $ 2,001 $ 2,002 $ (1) — % $ 13 (0.7) %
Other:
SG&A expenses $ 1,224.1 $ 1,263.4 $ (39.3) (3.1) % $ 12.8 (4.1) %
SG&A as % gross profit 70.4 % 69.1 % 1.3 %
Floorplan expense:
Floorplan interest expense $ 45.3 $ 53.3 $ (8.0) (15.0) % $ 0.5 (16.0) %
Less: floorplan assistance (1) 42.0 43.0 (1.0) (2.4) % — (2.4) %
Net floorplan expense $ 3.3 $ 10.3 $ (7.0) $ 0.5
(1) Floorplan assistance is included within Gross Profit — New vehicle retail sales above and Cost of Sales — New vehicle retail sales in our Condensed Consolidated Statements of Operations.
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Same Store Operating Data — Consolidated
(In millions, except unit data)
Six Months Ended June 30,
2026 2025 Increase/ (Decrease) % Change Currency Impact on Current Period Results Constant Currency % Change
Revenues:
New vehicle retail sales $ 4,984.4 $ 5,159.8 $ (175.3) (3.4) % $ 40.5 (4.2) %
Used vehicle retail sales 3,366.2 3,440.3 (74.1) (2.2) % 43.8 (3.4) %
Used vehicle wholesale sales 279.0 284.9 (6.0) (2.1) % 3.2 (3.2) %
Total used 3,645.2 3,725.2 (80.1) (2.1) % 46.9 (3.4) %
Parts and service sales 1,350.6 1,307.3 43.3 3.3 % 11.9 2.4 %
F&I, net 420.5 448.4 (28.0) (6.2) % 2.7 (6.8) %
Total revenues $ 10,400.7 $ 10,640.8 $ (240.1) (2.3) % $ 102.1 (3.2) %
Gross profit:
New vehicle retail sales $ 332.2 $ 371.9 $ (39.7) (10.7) % $ 3.2 (11.5) %
Used vehicle retail sales 164.7 183.0 (18.2) (10.0) % 1.9 (11.0) %
Used vehicle wholesale sales 1.6 3.2 (1.6) (49.6) % (0.1) (46.2) %
Total used 166.3 186.2 (19.8) (10.6) % 1.8 (11.6) %
Parts and service sales 761.6 740.6 21.0 2.8 % 6.6 1.9 %
F&I, net 420.5 448.4 (28.0) (6.2) % 2.7 (6.8) %
Total gross profit $ 1,680.5 $ 1,747.0 $ (66.5) (3.8) % $ 14.3 (4.6) %
Gross margin:
New vehicle retail sales 6.7 % 7.2 % (0.5) %
Used vehicle retail sales 4.9 % 5.3 % (0.4) %
Used vehicle wholesale sales 0.6 % 1.1 % (0.5) %
Total used 4.6 % 5.0 % (0.4) %
Parts and service sales 56.4 % 56.6 % (0.3) %
Total gross margin 16.2 % 16.4 % (0.3) %
Units sold:
Retail new vehicles sold 102,652 106,940 (4,288) (4.0) %
Retail used vehicles sold 107,035 114,689 (7,654) (6.7) %
Wholesale used vehicles sold 29,573 31,212 (1,639) (5.3) %
Total used 136,608 145,901 (9,293) (6.4) %
Average sales price per unit sold:
New vehicle retail $ 51,818 $ 50,032 $ 1,787 3.6 % $ 417 2.7 %
Used vehicle retail $ 31,509 $ 30,013 $ 1,497 5.0 % $ 410 3.6 %
Gross profit per unit sold:
New vehicle retail sales $ 3,236 $ 3,477 $ (242) (6.9) % $ 31 (7.8) %
Used vehicle retail sales $ 1,539 $ 1,595 $ (56) (3.5) % $ 18 (4.6) %
Used vehicle wholesale sales $ 54 $ 102 $ (48) (46.8) % $ (4) (43.2) %
Total used $ 1,218 $ 1,276 $ (58) (4.6) % $ 13 (5.6) %
F&I PRU $ 2,005 $ 2,023 $ (18) (0.9) % $ 13 (1.5) %
Other:
SG&A expenses $ 1,209.2 $ 1,200.0 $ 9.3 0.8 % $ 12.2 (0.2) %
SG&A as % gross profit 72.0 % 68.7 % 3.3 %
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Reported Operating Data — U.S.
(In millions, except unit data)
Three Months Ended June 30,
2026 2025 Increase/(Decrease) % Change
Revenues:
New vehicle retail sales $ 2,023.0 $ 2,132.9 $ (109.9) (5.2) %
Used vehicle retail sales 1,112.8 1,203.2 (90.4) (7.5) %
Used vehicle wholesale sales 87.7 86.5 1.2 1.4 %
Total used 1,200.5 1,289.7 (89.2) (6.9) %
Parts and service sales 531.0 555.5 (24.5) (4.4) %
F&I, net 178.8 199.0 (20.2) (10.1) %
Total revenues $ 3,933.4 $ 4,177.2 $ (243.8) (5.8) %
Gross profit:
New vehicle retail sales $ 125.7 $ 150.5 $ (24.8) (16.5) %
Used vehicle retail sales 56.3 68.6 (12.4) (18.0) %
Used vehicle wholesale sales 2.5 2.5 — (0.9) %
Total used 58.7 71.1 (12.4) (17.4) %
Parts and service sales 295.2 308.1 (12.9) (4.2) %
F&I, net 178.8 199.0 (20.2) (10.1) %
Total gross profit $ 658.5 $ 728.7 $ (70.2) (9.6) %
Gross margin:
New vehicle retail sales 6.2 % 7.1 % (0.8) %
Used vehicle retail sales 5.1 % 5.7 % (0.6) %
Used vehicle wholesale sales 2.8 % 2.9 % (0.1) %
Total used 4.9 % 5.5 % (0.6) %
Parts and service sales 55.6 % 55.5 % 0.1 %
Total gross margin 16.7 % 17.4 % (0.7) %
Units sold:
Retail new vehicles sold 38,549 41,067 (2,518) (6.1) %
Retail used vehicles sold 34,261 39,665 (5,404) (13.6) %
Wholesale used vehicles sold 9,012 9,661 (649) (6.7) %
Total used 43,273 49,326 (6,053) (12.3) %
Average sales price per unit sold:
New vehicle retail $ 52,479 $ 51,938 $ 541 1.0 %
Used vehicle retail $ 32,481 $ 30,335 $ 2,146 7.1 %
Gross profit per unit sold:
New vehicle retail sales $ 3,260 $ 3,664 $ (404) (11.0) %
Used vehicle retail sales $ 1,642 $ 1,730 $ (88) (5.1) %
Used vehicle wholesale sales $ 275 $ 259 $ 16 6.2 %
Total used $ 1,358 $ 1,442 $ (85) (5.9) %
F&I PRU $ 2,456 $ 2,465 $ (9) (0.4) %
Other:
SG&A expenses $ 444.3 $ 471.6 $ (27.2) (5.8) %
SG&A as % gross profit 67.5 % 64.7 % 2.8 %
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Same Store Operating Data — U.S.
(In millions, except unit data)
Three Months Ended June 30,
2026 2025 Increase/(Decrease) % Change
Revenues:
New vehicle retail sales $ 1,962.8 $ 2,035.4 $ (72.6) (3.6) %
Used vehicle retail sales 1,065.2 1,161.7 (96.5) (8.3) %
Used vehicle wholesale sales 83.1 77.3 5.8 7.5 %
Total used 1,148.3 1,239.1 (90.8) (7.3) %
Parts and service sales 516.5 510.1 6.4 1.3 %
F&I, net 174.6 193.4 (18.8) (9.7) %
Total revenues $ 3,802.2 $ 3,977.9 $ (175.7) (4.4) %
Gross profit:
New vehicle retail sales $ 121.0 $ 145.0 $ (24.0) (16.5) %
Used vehicle retail sales 54.6 66.6 (12.0) (18.1) %
Used vehicle wholesale sales 2.6 2.3 0.3 11.8 %
Total used 57.2 68.9 (11.8) (17.1) %
Parts and service sales 286.2 290.1 (4.0) (1.4) %
F&I, net 174.6 193.4 (18.8) (9.7) %
Total gross profit $ 639.0 $ 697.5 $ (58.5) (8.4) %
Gross margin:
New vehicle retail sales 6.2 % 7.1 % (1.0) %
Used vehicle retail sales 5.1 % 5.7 % (0.6) %
Used vehicle wholesale sales 3.1 % 3.0 % 0.1 %
Total used 5.0 % 5.6 % (0.6) %
Parts and service sales 55.4 % 56.9 % (1.5) %
Total gross margin 16.8 % 17.5 % (0.7) %
Units sold:
Retail new vehicles sold 37,578 39,594 (2,016) (5.1) %
Retail used vehicles sold 33,060 38,431 (5,371) (14.0) %
Wholesale used vehicles sold 8,714 9,219 (505) (5.5) %
Total used 41,774 47,650 (5,876) (12.3) %
Average sales price per unit sold:
New vehicle retail $ 52,232 $ 51,407 $ 825 1.6 %
Used vehicle retail $ 32,220 $ 30,229 $ 1,991 6.6 %
Gross profit per unit sold:
New vehicle retail sales $ 3,221 $ 3,662 $ (441) (12.0) %
Used vehicle retail sales $ 1,651 $ 1,733 $ (83) (4.8) %
Used vehicle wholesale sales $ 299 $ 253 $ 46 18.2 %
Total used $ 1,369 $ 1,447 $ (78) (5.4) %
F&I PRU $ 2,471 $ 2,478 $ (7) (0.3) %
Other:
SG&A expenses $ 429.4 $ 446.1 $ (16.7) (3.7) %
SG&A as % gross profit 67.2 % 64.0 % 3.2 %
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U.S. Segment — Three Months Ended June 30, 2026 Compared to 2025
Revenues
Total revenues in the U.S. during the three months ended June 30, 2026 (“Current Quarter”) decreased $243.8 million, or 5.8%, as compared to the three months ended June 30, 2025 (“Prior Year Quarter”), driven by lower same store revenues and the disposition of stores.
Total same store revenues in the U.S. during the Current Quarter decreased $175.7 million, or 4.4%, as compared to the Prior Year Quarter, driven by lower revenues across most business lines.
New vehicle retail same store revenues underperformed the Prior Year Quarter, driven by a decrease in units sold, partially offset by higher pricing. This underperformance reflects affordability pressures impacting demand, as well as inventory pressure on certain brands. We ended the Current Quarter with a U.S. new vehicle inventory supply of 54 days, six days higher than the Prior Year Quarter.
Used vehicle retail same store revenues underperformed the Prior Year Quarter, driven by a decrease in units sold, partially offset by higher pricing. We believe this underperformance reflects the same affordability pressures affecting new vehicle demand, as well as ongoing inventory supply constraints that limited available vehicle selection. We ended the Current Quarter with a U.S. used vehicle inventory supply of 32 days, one day higher than the Prior Year Quarter. Used vehicle wholesale same store revenues outperformed the Prior Year Quarter, driven by higher pricing, partially offset by fewer units sold.
Parts and service same store revenues outperformed the Prior Year Quarter, driven by increases in customer pay, warranty and wholesale revenues, partially offset by a decrease in collision revenues. Higher same store technician count resulted in an increase in customer pay repair orders, compared to the Prior Year Quarter, reflecting our continued technician recruiting and retention efforts and our greater capacity to meet increased demand. We continue to invest in incremental service capacity through new dealership construction and expansion of existing facilities.
F&I same store revenues underperformed the Prior Year Quarter, driven by lower same store new and used vehicle retail units sold, partially offset by higher income per contract on most of our products offered.
Gross Profit
Total gross profit in the U.S. during the Current Quarter decreased $70.2 million, or 9.6%, as compared to the Prior Year Quarter, driven by lower same store gross profit and the disposition of stores.
Total same store gross profit in the U.S. during the Current Quarter decreased $58.5 million, or 8.4%, as compared to the Prior Year Quarter, driven by lower gross profit across most business lines.
New vehicle retail same store gross profit underperformed the Prior Year Quarter, driven by reduced inventory availability for certain brands, a decrease in gross profit per unit sold and a decline in same store new vehicle retail units sold. Vehicle affordability continues to be a concern for the consumer.
Used vehicle retail same store gross profit underperformed the Prior Year Quarter, primarily driven by lower same store gross profit per unit sold, coupled with a decrease in same store used vehicle retail units sold. Additionally, the limited availability of new vehicle inventory for certain brands reduced used vehicle availability, further impacting used vehicle retail units sold. Used vehicle wholesale same store gross profit outperformed the Prior Year Quarter, driven by an increase in same store gross profit per unit sold, partially offset by a decrease in same store units sold.
Parts and service same store gross profit underperformed the Prior Year Quarter, driven by decreases in collision and wholesale gross profit, partially offset by increases in customer pay and warranty gross profit. We continue to prioritize higher margin service business and shop efficiency initiatives.
F&I same store gross profit underperformed the Prior Year Quarter, driven by lower same store new and used vehicle retail units sold, with similar gross profit per unit performance.
Total same store gross margin in the U.S. decreased 73 basis points for the Current Quarter as compared to the Prior Year Quarter.
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SG&A Expenses
SG&A as a percentage of gross profit increased 276 basis points and increased 324 basis points on an as reported and same store basis, respectively, compared to the Prior Year Quarter.
Total SG&A expenses in the U.S. during the Current Quarter decreased $27.2 million, or 5.8%, as compared to the Prior Year Quarter, primarily driven by a $27.6 million decrease in employee related costs resulting from reduced staffing as part of our cost-cutting measures and lower commission expense associated with lower gross profit. Total same store SG&A expenses in the U.S. during the Current Quarter, decreased $16.7 million, or 3.7%, as compared to the Prior Year Quarter, primarily driven by a decrease in employee related costs as described above, partially offset by the absence of CDK outage related credits recognized in the Prior Year Quarter that did not recur in the Current Quarter, as well as lower manufacturer advertising assistance as a result of decreases in units sold.
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Reported Operating Data — U.S.
(In millions, except unit data)
Six Months Ended June 30,
2026 2025 Increase/(Decrease) % Change
Revenues:
New vehicle retail sales $ 3,875.0 $ 4,101.6 $ (226.6) (5.5) %
Used vehicle retail sales 2,230.4 2,347.6 (117.2) (5.0) %
Used vehicle wholesale sales 182.2 178.5 3.8 2.1 %
Total used 2,412.6 2,526.0 (113.5) (4.5) %
Parts and service sales 1,058.2 1,086.8 (28.6) (2.6) %
F&I, net 351.4 384.5 (33.1) (8.6) %
Total revenues $ 7,697.2 $ 8,098.9 $ (401.7) (5.0) %
Gross profit:
New vehicle retail sales $ 240.5 $ 281.1 $ (40.6) (14.4) %
Used vehicle retail sales 115.8 134.4 (18.6) (13.8) %
Used vehicle wholesale sales 5.2 5.1 0.2 3.1 %
Total used 121.1 139.5 (18.4) (13.2) %
Parts and service sales 592.7 598.6 (5.9) (1.0) %
F&I, net 351.4 384.5 (33.1) (8.6) %
Total gross profit $ 1,305.7 $ 1,403.7 $ (98.0) (7.0) %
Gross margin:
New vehicle retail sales 6.2 % 6.9 % (0.6) %
Used vehicle retail sales 5.2 % 5.7 % (0.5) %
Used vehicle wholesale sales 2.9 % 2.8 % — %
Total used 5.0 % 5.5 % (0.5) %
Parts and service sales 56.0 % 55.1 % 0.9 %
Total gross margin 17.0 % 17.3 % (0.4) %
Units sold:
Retail new vehicles sold 73,215 78,902 (5,687) (7.2) %
Retail used vehicles sold 70,358 78,278 (7,920) (10.1) %
Wholesale used vehicles sold 18,880 19,878 (998) (5.0) %
Total used 89,238 98,156 (8,918) (9.1) %
Average sales price per unit sold:
New vehicle retail $ 52,926 $ 51,984 $ 943 1.8 %
Used vehicle retail $ 31,700 $ 29,990 $ 1,710 5.7 %
Gross profit per unit sold:
New vehicle retail sales $ 3,285 $ 3,563 $ (277) (7.8) %
Used vehicle retail sales $ 1,646 $ 1,717 $ (71) (4.1) %
Used vehicle wholesale sales $ 277 $ 255 $ 22 8.6 %
Total used $ 1,356 $ 1,421 $ (65) (4.5) %
F&I PRU $ 2,447 $ 2,446 $ 1 0.1 %
Other:
SG&A expenses $ 862.5 $ 919.0 $ (56.5) (6.1) %
SG&A as % gross profit 66.1 % 65.5 % 0.6 %
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Same Store Operating Data — U.S.
(In millions, except unit data)
Six Months Ended June 30,
2026 2025 Increase/(Decrease) % Change
Revenues:
New vehicle retail sales $ 3,727.2 $ 3,934.2 $ (207.0) (5.3) %
Used vehicle retail sales 2,125.7 2,275.4 (149.7) (6.6) %
Used vehicle wholesale sales 172.7 162.4 10.4 6.4 %
Total used 2,298.4 2,437.8 (139.4) (5.7) %
Parts and service sales 1,020.8 1,008.8 12.0 1.2 %
F&I, net 340.5 374.7 (34.2) (9.1) %
Total revenues $ 7,386.9 $ 7,755.5 $ (368.6) (4.8) %
Gross profit:
New vehicle retail sales $ 228.9 $ 272.1 $ (43.1) (15.9) %
Used vehicle retail sales 111.9 131.1 (19.1) (14.6) %
Used vehicle wholesale sales 5.3 4.8 0.6 11.9 %
Total used 117.3 135.8 (18.6) (13.7) %
Parts and service sales 570.2 569.0 1.1 0.2 %
F&I, net 340.5 374.7 (34.2) (9.1) %
Total gross profit $ 1,256.8 $ 1,351.6 $ (94.8) (7.0) %
Gross margin:
New vehicle retail sales 6.1 % 6.9 % (0.8) %
Used vehicle retail sales 5.3 % 5.8 % (0.5) %
Used vehicle wholesale sales 3.1 % 2.9 % 0.2 %
Total used 5.1 % 5.6 % (0.5) %
Parts and service sales 55.9 % 56.4 % (0.5) %
Total gross margin 17.0 % 17.4 % (0.4) %
Units sold:
Retail new vehicles sold 70,982 76,184 (5,202) (6.8) %
Retail used vehicles sold 67,644 75,997 (8,353) (11.0) %
Wholesale used vehicles sold 18,220 19,008 (788) (4.1) %
Total used 85,864 95,005 (9,141) (9.6) %
Average sales price per unit sold:
New vehicle retail $ 52,509 $ 51,640 $ 868 1.7 %
Used vehicle retail $ 31,425 $ 29,941 $ 1,484 5.0 %
Gross profit per unit sold:
New vehicle retail sales $ 3,225 $ 3,571 $ (346) (9.7) %
Used vehicle retail sales $ 1,655 $ 1,725 $ (70) (4.0) %
Used vehicle wholesale sales $ 293 $ 251 $ 42 16.8 %
Total used $ 1,366 $ 1,430 $ (64) (4.5) %
F&I PRU $ 2,456 $ 2,462 $ (6) (0.2) %
Other:
SG&A expenses $ 870.3 $ 884.5 $ (14.2) (1.6) %
SG&A as % gross profit 69.2 % 65.4 % 3.8 %
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U.S. Segment — Six Months Ended June 30, 2026 Compared to 2025
Revenues
Total revenues in the U.S. during the six months ended June 30, 2026 (“Current Year”) decreased $401.7 million, or 5.0%, as compared to the six months ended June 30, 2025 (“Prior Year”), driven by lower same store revenues and the disposition of stores.
Total same store revenues in the U.S. during the Current Year decreased $368.6 million, or 4.8%, as compared to the Prior Year. This decrease was driven by lower revenues across most business lines.
New vehicle retail same store revenues underperformed the Prior Year, driven by a decrease in units sold, partially offset by higher pricing. This underperformance reflects affordability pressures impacting demand, as well as inventory pressure on certain brands. Additionally, the Prior Year had strong results ahead of the implementation of announced tariffs. We ended the Current Year with a U.S. new vehicle inventory supply of 54 days, six days higher than the Prior Year.
Used vehicle retail same store revenues underperformed the Prior Year, driven by a decrease in units sold, partially offset by higher pricing. We believe this underperformance reflects the same affordability pressures affecting new vehicle demand, as well as ongoing inventory supply constraints that limited available vehicle selection. We ended the Current Year with a U.S. used vehicle inventory supply of 32 days, one day higher than the Prior Year. Used vehicle wholesale same store revenues outperformed the Prior Year, driven by higher pricing, partially offset by fewer units sold.
Parts and service same store revenues outperformed the Prior Year, driven by increases in customer pay, warranty and wholesale revenues, partially offset by a decrease in collision revenues. Higher same store technician count resulted in an increase in customer pay repair orders, compared to the Prior Year, reflecting our continued technician recruiting and retention efforts and our greater capacity to meet increased demand. We continue to invest in incremental aftersales capacity through new dealership construction and expansion of existing facilities.
F&I same store revenues underperformed the Prior Year, primarily driven by lower same store new and used vehicle retail units sold, partially offset by higher penetration rates and income per contract on most of our products offered.
Gross Profit
Total gross profit in the U.S. during the Current Year decreased $98.0 million, or 7.0%, as compared to the Prior Year, driven by lower same store gross profit and the disposition of stores.
Total same store gross profit in the U.S. during the Current Year decreased $94.8 million, or 7.0%, as compared to the Prior Year, driven by decreases in new and used vehicle retail and F&I gross profit, partially offset by increases in used vehicle
wholesale and parts and service gross profit.
New vehicle retail same store gross profit underperformed the Prior Year, driven by reduced inventory availability for certain brands, a decrease in gross profit per unit sold and a decline in same store new vehicle retail units sold. Vehicle affordability remains a concern for some consumers.
Used vehicle retail same store gross profit underperformed the Prior Year, primarily driven by lower same store gross profit per unit sold, coupled with a decrease in same store used vehicle retail units sold. Additionally, the limited availability of new vehicle inventory for certain brands reduced used vehicle availability, further impacting used vehicle retail units sold. Used vehicle wholesale same store gross profit outperformed the Prior Year, driven by an increase in same store gross profit per unit sold, partially offset by a decrease in same store units sold.
Parts and service same store gross profit outperformed the Prior Year, driven by increases in customer pay and warranty gross profit, partially offset by decreases in collision and wholesale gross profit. We believe this reflects both the benefit of the strategic decision to reduce our collision footprint in exchange for higher margin service business, and our focus on shop efficiency.
F&I same store gross profit underperformed the Prior Year, driven by lower same store new and used vehicle retail units sold, with similar gross profit per unit performance.
Total same store gross margin in the U.S. decreased 41 basis points for the Current Year as compared to the Prior Year.
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SG&A Expenses
SG&A as a percentage of gross profit increased 59 basis points and increased 380 basis points on an as reported and same store basis, respectively, as compared to the Prior Year.
Total SG&A expenses in the U.S. during the Current Year decreased $56.5 million, or 6.1%, as compared to the Prior Year, primarily driven by an increase in gains recognized on disposal of assets of $40.6 million, coupled with a $24.8 million decrease in employee related costs resulting from reduced staffing as part of our cost-cutting measures and lower commission expenses associated with lower gross profit. Total same store SG&A expenses in the U.S. during the Current Year, decreased $14.2 million, or 1.6%, as compared to the Prior Year, primarily driven by a decrease in employee related costs as described above. These decreases were partially offset by the absence of CDK outage related credits recognized in the Prior Year that did not recur in the Current Year, as well as lower manufacturer advertising assistance as a result of decreases in units sold and higher third-party service fees.
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Reported Operating Data — U.K.
(In millions, except unit data)
Three Months Ended June 30,
2026 2025 Increase/ (Decrease) % Change Currency Impact on Current Period Results Constant Currency % Change
Revenues:
New vehicle retail sales $ 583.1 $ 602.5 $ (19.4) (3.2) % $ 2.0 (3.6) %
Used vehicle retail sales 605.5 645.0 (39.5) (6.1) % 3.1 (6.6) %
Used vehicle wholesale sales 63.8 77.3 (13.5) (17.4) % 0.3 (17.8) %
Total used 669.3 722.2 (53.0) (7.3) % 3.4 (7.8) %
Parts and service sales 161.3 162.8 (1.5) (0.9) % 0.7 (1.3) %
F&I, net 38.0 38.8 (0.8) (2.0) % 0.2 (2.4) %
Total revenues $ 1,451.7 $ 1,526.4 $ (74.7) (4.9) % $ 6.2 (5.3) %
Gross profit:
New vehicle retail sales $ 47.9 $ 47.9 $ — — % $ — — %
Used vehicle retail sales 25.6 27.8 (2.1) (7.7) % 0.1 (8.2) %
Used vehicle wholesale sales (3.2) (2.0) (1.2) (59.7) % — (58.5) %
Total used 22.4 25.8 (3.3) (12.9) % 0.1 (13.4) %
Parts and service sales 93.8 94.7 (0.9) (0.9) % 0.3 (1.3) %
F&I, net 38.0 38.8 (0.8) (2.0) % 0.2 (2.4) %
Total gross profit $ 202.1 $ 207.1 $ (5.0) (2.4) % $ 0.7 (2.7) %
Gross margin:
New vehicle retail sales 8.2 % 7.9 % 0.3 %
Used vehicle retail sales 4.2 % 4.3 % (0.1) %
Used vehicle wholesale sales (5.0) % (2.6) % (2.4) %
Total used 3.4 % 3.6 % (0.2) %
Parts and service sales 58.1 % 58.1 % — %
Total gross margin 13.9 % 13.6 % 0.4 %
Units sold:
Retail new vehicles sold 14,786 14,696 90 0.6 %
Retail used vehicles sold 19,208 20,575 (1,367) (6.6) %
Wholesale used vehicles sold 6,303 7,369 (1,066) (14.5) %
Total used 25,511 27,944 (2,433) (8.7) %
Average sales price per unit sold:
New vehicle retail $ 49,235 $ 46,163 $ 3,072 6.7 % $ 168 6.3 %
Used vehicle retail $ 31,683 $ 31,444 $ 239 0.8 % $ 160 0.3 %
Gross profit per unit sold:
New vehicle retail sales $ 3,240 $ 3,259 $ (19) (0.6) % $ 2 (0.7) %
Used vehicle retail sales $ 1,335 $ 1,350 $ (15) (1.1) % $ 8 (1.7) %
Used vehicle wholesale sales $ (508) $ (272) $ (236) (86.7) % $ (4) (85.3) %
Total used $ 879 $ 922 $ (42) (4.6) % $ 5 (5.1) %
F&I PRU $ 1,118 $ 1,099 $ 18 1.7 % $ 5 1.2 %
Other:
SG&A expenses $ 179.2 $ 174.5 $ 4.6 2.7 % $ 0.8 2.2 %
SG&A as % gross profit 88.7 % 84.3 % 4.4 %
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Same Store Operating Data — U.K.
(In millions, except unit data)
Three Months Ended June 30,
2026 2025 Increase/ (Decrease) % Change Currency Impact on Current Period Results Constant Currency % Change
Revenues:
New vehicle retail sales $ 559.2 $ 555.2 $ 4.0 0.7 % $ 2.0 0.4 %
Used vehicle retail sales 592.7 593.1 (0.4) (0.1) % 3.1 (0.6) %
Used vehicle wholesale sales 55.1 69.5 (14.4) (20.7) % 0.3 (21.1) %
Total used 647.8 662.6 (14.8) (2.2) % 3.4 (2.7) %
Parts and service sales 156.8 149.4 7.4 5.0 % 0.7 4.5 %
F&I, net 37.2 35.6 1.5 4.2 % 0.2 3.8 %
Total revenues $ 1,401.0 $ 1,402.8 $ (1.8) (0.1) % $ 6.2 (0.6) %
Gross profit:
New vehicle retail sales $ 46.5 $ 44.4 $ 2.1 4.7 % $ — 4.6 %
Used vehicle retail sales 25.0 26.6 (1.6) (5.9) % 0.1 (6.4) %
Used vehicle wholesale sales (2.8) (1.2) (1.6) (137.2) % — (134.4) %
Total used 22.2 25.4 (3.2) (12.6) % 0.1 (13.0) %
Parts and service sales 91.0 87.6 3.4 3.9 % 0.3 3.5 %
F&I, net 37.2 35.6 1.5 4.2 % 0.2 3.8 %
Total gross profit $ 196.9 $ 193.1 $ 3.8 2.0 % $ 0.7 1.6 %
Gross margin:
New vehicle retail sales 8.3 % 8.0 % 0.3 %
Used vehicle retail sales 4.2 % 4.5 % (0.3) %
Used vehicle wholesale sales (5.1) % (1.7) % (3.4) %
Total used 3.4 % 3.8 % (0.4) %
Parts and service sales 58.0 % 58.7 % (0.6) %
Total gross margin 14.1 % 13.8 % 0.3 %
Units sold:
Retail new vehicles sold 14,262 13,721 541 3.9 %
Retail used vehicles sold 18,847 19,103 (256) (1.3) %
Wholesale used vehicles sold 6,020 6,719 (699) (10.4) %
Total used 24,867 25,822 (955) (3.7) %
Average sales price per unit sold:
New vehicle retail $ 49,404 $ 45,837 $ 3,567 7.8 % $ 180 7.4 %
Used vehicle retail $ 31,614 $ 31,130 $ 484 1.6 % $ 164 1.0 %
Gross profit per unit sold:
New vehicle retail sales $ 3,263 $ 3,239 $ 24 0.7 % $ 3 0.6 %
Used vehicle retail sales $ 1,328 $ 1,392 $ (64) (4.6) % $ 8 (5.1) %
Used vehicle wholesale sales $ (469) $ (177) $ (292) NM $ (6) NM
Total used $ 893 $ 983 $ (91) (9.2) % $ 5 (9.7) %
F&I PRU $ 1,122 $ 1,086 $ 36 3.4 % $ 5 2.9 %
Other:
SG&A expenses $ 164.3 $ 158.8 $ 5.5 3.5 % $ 0.8 3.0 %
SG&A as % gross profit 83.5 % 82.2 % 1.2 %
NM – Not Meaningful
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U.K. Segment — Three Months Ended June 30, 2026 Compared to 2025
Retail new and used vehicle units sold include new and used vehicle agency units. The agency units and related revenues are excluded from the calculation of the average sales price per unit sold as only the sales commission is reported within revenues. The agency units and related net revenues are included in the calculation of gross profit per unit sold. The GBP to USD foreign currency exchange rate has fluctuated from £1 to $1.372 at June 30, 2025, to £1 to $1.324 at June 30, 2026, or a decrease in the value of the GBP of 3.4%.
Revenues
Total revenues in the U.K. during the Current Quarter decreased $74.7 million, or 4.9%, as compared to the Prior Year Quarter, driven primarily by the impact of dealership dispositions.
Total same store revenues in the U.K. during the Current Quarter remained flat, as compared to the Prior Year Quarter, as increases in parts and service, new vehicle retail and F&I, net revenues were offset by a decline in used vehicle revenues. On a constant currency basis, same store revenues decreased 0.6%, reflecting growth in parts and service, F&I, net and new vehicle retail revenues, offset by a decline in used vehicle revenues.
New vehicle retail same store revenues increased 0.4% on a constant currency basis, as compared to the Prior Year Quarter. New vehicle retail units sold increased 3.9%, driven by higher volumes of retail agency unit sales. Because agency vehicle sales are recognized on a net basis, these units are included in retail volume metrics but excluded from the average selling price calculation, which increased 7.4% on a constant currency basis. The Current Quarter ended with a new vehicle inventory supply of 36 days, an increase of four days compared to the Prior Year Quarter.
Used vehicle retail same store revenues decreased 0.6% on a constant currency basis, as compared to the Prior Year Quarter, driven by a decrease in used vehicle units sold, partially offset by a constant currency increase in average selling price. The Current Quarter ended with a used vehicle inventory supply of 43 days, no change from the Prior Year Quarter. Used vehicle wholesale same store revenues decreased 21.1% on a constant currency basis, as compared to the Prior Year Quarter, primarily driven by a decrease in wholesale used vehicle units sold, as well as a decline in average wholesale values.
Parts and service same store revenues increased 4.5% on a constant currency basis, as compared to the Prior Year Quarter, driven by increases across all business lines, led by wholesale parts revenues. We have invested in improvements to our U.K. customer contact center, streamlining operations to make scheduling appointments easier for customers, which also contributed to increased customer pay activity as compared to the Prior Year Quarter.
F&I, net same store revenues, increased 3.8% on a constant currency basis, as compared to the Prior Year Quarter, driven by higher income per contract from our retail finance fees, improved penetration rates on vehicle service contracts and higher new vehicle retail unit sales.
Gross Profit
Total gross profit in the U.K. during the Current Quarter decreased $5.0 million, or 2.4%, as compared to the Prior Year Quarter, driven primarily by the impact of dealership dispositions.
Total same store gross profit in the U.K. during the Current Quarter increased $3.8 million, or 2.0%, as compared to the Prior Year Quarter. On a constant currency basis, total same store gross profit increased 1.6%, driven by increases in new vehicle retail, parts and service and F&I, net gross profit, partially offset by declines in used vehicle gross profit.
New vehicle retail same store gross profit increased 4.6% on a constant currency basis, as compared to the Prior Year Quarter, driven by an increase in retail units sold and a constant currency increase in gross profit per unit sold.
Used vehicle retail same store gross profit decreased 6.4% on a constant currency basis as compared to the Prior Year Quarter, driven by a decrease in gross profit per unit sold, as well as a decrease in retail units sold. Used vehicle wholesale same store gross profit declined as compared to the Prior Year Quarter, reflecting widened losses per unit sold on lower average wholesale values.
Parts and service same store gross profit, on a constant currency basis, increased as compared to the Prior Year Quarter, driven by the increase in parts and service same store revenues, as discussed above.
F&I same store gross profit, on a constant currency basis, increased as compared to the Prior Year Quarter, as described above in F&I same store revenues.
Total same store gross margin in the U.K. increased 29 basis points, primarily driven by improvements in new vehicle retail gross margin, offset by declines in our other lines of business.
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SG&A Expenses
SG&A as a percentage of gross profit increased by 438 and 121 basis points on an as reported and same store basis, respectively, compared to the Prior Year Quarter.
Total SG&A expenses in the U.K. during the Current Quarter increased $4.6 million, or 2.7%, as compared to the Prior Year Quarter. Total same store SG&A expenses in the U.K. during the Current Quarter increased $5.5 million, or 3.5%, as compared to the Prior Year Quarter. Total same store SG&A expenses increased 3.0% on a constant currency basis, as compared to the Prior Year Quarter, driven primarily by higher facility, information technology and vehicle delivery costs and an unfavorable comparison to the Prior Year Quarter, which included a credit for auction rebates. These increases were partially offset by lower employee related costs resulting from reduced staffing as part of our cost-cutting measures.
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Reported Operating Data — U.K.
(In millions, except unit data)
Six Months Ended June 30,
2026 2025 Increase/ (Decrease) % Change Currency Impact on Current Period Results Constant Currency % Change
Revenues:
New vehicle retail sales $ 1,293.5 $ 1,313.8 $ (20.3) (1.5) % $ 41.3 (4.7) %
Used vehicle retail sales 1,262.9 1,256.0 6.8 0.5 % 44.2 (3.0) %
Used vehicle wholesale sales 118.7 136.9 (18.2) (13.3) % 3.7 (15.9) %
Total used 1,381.6 1,392.9 (11.4) (0.8) % 47.8 (4.2) %
Parts and service sales 338.6 323.7 14.9 4.6 % 12.1 0.9 %
F&I, net 81.3 79.5 1.8 2.2 % 2.8 (1.3) %
Total revenues $ 3,094.9 $ 3,109.9 $ (14.9) (0.5) % $ 103.9 (3.8) %
Gross profit:
New vehicle retail sales $ 105.7 $ 106.9 $ (1.2) (1.1) % $ 3.2 (4.1) %
Used vehicle retail sales 53.8 55.5 (1.7) (3.1) % 2.0 (6.6) %
Used vehicle wholesale sales (4.4) (3.1) (1.4) (45.3) % (0.1) (40.8) %
Total used 49.4 52.5 (3.1) (5.9) % 1.8 (9.4) %
Parts and service sales 196.3 185.1 11.2 6.0 % 6.8 2.4 %
F&I, net 81.3 79.5 1.8 2.2 % 2.8 (1.3) %
Total gross profit $ 432.7 $ 424.0 $ 8.7 2.0 % $ 14.6 (1.4) %
Gross margin:
New vehicle retail sales 8.2 % 8.1 % — %
Used vehicle retail sales 4.3 % 4.4 % (0.2) %
Used vehicle wholesale sales (3.7) % (2.2) % (1.5) %
Total used 3.6 % 3.8 % (0.2) %
Parts and service sales 58.0 % 57.2 % 0.8 %
Total gross margin 14.0 % 13.6 % 0.3 %
Units sold:
Retail new vehicles sold 32,518 32,960 (442) (1.3) %
Retail used vehicles sold 40,096 41,580 (1,484) (3.6) %
Wholesale used vehicles sold 11,837 13,506 (1,669) (12.4) %
Total used 51,933 55,086 (3,153) (5.7) %
Average sales price per unit sold:
New vehicle retail $ 49,607 $ 45,327 $ 4,280 9.4 % $ 1,585 5.9 %
Used vehicle retail $ 31,656 $ 30,261 $ 1,394 4.6 % $ 1,108 0.9 %
Gross profit per unit sold:
New vehicle retail sales $ 3,251 $ 3,243 $ 8 0.2 % $ 99 (2.8) %
Used vehicle retail sales $ 1,343 $ 1,336 $ 7 0.5 % $ 49 (3.2) %
Used vehicle wholesale sales $ (375) $ (226) $ (149) (65.8) % $ (12) (60.6) %
Total used $ 951 $ 953 $ (2) (0.2) % $ 35 (3.9) %
F&I PRU $ 1,120 $ 1,067 $ 53 4.9 % $ 38 1.4 %
Other:
SG&A expenses $ 361.5 $ 344.3 $ 17.2 5.0 % $ 12.8 1.3 %
SG&A as % gross profit 83.5 % 81.2 % 2.3 %
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Same Store Operating Data — U.K.
(In millions, except unit data)
Six Months Ended June 30,
2026 2025 Increase/ (Decrease) % Change Currency Impact on Current Period Results Constant Currency % Change
Revenues:
New vehicle retail sales $ 1,257.2 $ 1,225.6 $ 31.6 2.6 % $ 40.5 (0.7) %
Used vehicle retail sales 1,240.5 1,164.9 75.6 6.5 % 43.8 2.7 %
Used vehicle wholesale sales 106.2 122.6 (16.3) (13.3) % 3.2 (16.0) %
Total used 1,346.7 1,287.4 59.3 4.6 % 46.9 1.0 %
Parts and service sales 329.8 298.5 31.3 10.5 % 11.9 6.5 %
F&I, net 80.0 73.7 6.2 8.5 % 2.7 4.7 %
Total revenues $ 3,013.8 $ 2,885.3 $ 128.5 4.5 % $ 102.1 0.9 %
Gross profit:
New vehicle retail sales $ 103.3 $ 99.8 $ 3.4 3.4 % $ 3.2 0.3 %
Used vehicle retail sales 52.8 51.9 0.9 1.7 % 1.9 (1.9) %
Used vehicle wholesale sales (3.7) (1.6) (2.2) (136.4) % (0.1) (129.6) %
Total used 49.1 50.3 (1.3) (2.5) % 1.8 (6.0) %
Parts and service sales 191.4 171.5 19.9 11.6 % 6.6 7.7 %
F&I, net 80.0 73.7 6.2 8.5 % 2.7 4.7 %
Total gross profit $ 423.7 $ 395.4 $ 28.3 7.1 % $ 14.3 3.5 %
Gross margin:
New vehicle retail sales 8.2 % 8.1 % 0.1 %
Used vehicle retail sales 4.3 % 4.5 % (0.2) %
Used vehicle wholesale sales (3.5) % (1.3) % (2.2) %
Total used 3.6 % 3.9 % (0.3) %
Parts and service sales 58.0 % 57.5 % 0.6 %
Total gross margin 14.1 % 13.7 % 0.4 %
Units sold:
Retail new vehicles sold 31,670 30,756 914 3.0 %
Retail used vehicles sold 39,391 38,692 699 1.8 %
Wholesale used vehicles sold 11,353 12,204 (851) (7.0) %
Total used 50,744 50,896 (152) (0.3) %
Average sales price per unit sold:
New vehicle retail $ 49,842 $ 45,434 $ 4,407 9.7 % $ 1,609 6.2 %
Used vehicle retail $ 31,654 $ 30,153 $ 1,501 5.0 % $ 1,118 1.3 %
Gross profit per unit sold:
New vehicle retail sales $ 3,260 $ 3,246 $ 15 0.4 % $ 100 (2.6) %
Used vehicle retail sales $ 1,341 $ 1,342 $ (1) (0.1) % $ 48 (3.7) %
Used vehicle wholesale sales $ (328) $ (129) $ (199) NM $ (9) (146.9) %
Total used $ 967 $ 989 $ (22) (2.2) % $ 35 (5.8) %
F&I PRU $ 1,126 $ 1,062 $ 64 6.0 % $ 39 2.4 %
Other:
SG&A expenses $ 338.9 $ 315.5 $ 23.5 7.4 % $ 12.2 3.6 %
SG&A as % gross profit 80.0 % 79.8 % 0.2 %
NM – Not Meaningful
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U.K. Segment — Six Months Ended June 30, 2026 Compared to 2025
Retail new and used vehicle units sold include new and used vehicle agency units. The agency units and related revenues are excluded from the calculation of the average sales price per unit sold as only the sales commission is reported within revenues. The agency units and related net revenues are included in the calculation of gross profit per unit sold. The GBP to USD foreign currency exchange rate has fluctuated from £1 to $1.372 at June 30, 2025, to £1 to $1.324 at June 30, 2026, or a decrease in the value of the GBP of 3.4%.
Revenues
Total revenues in the U.K. during the Current Year decreased $14.9 million, or 0.5%, as compared to the Prior Year, driven by the net impact of dispositions, partially offset by higher same store revenues and favorable foreign currency translation.
Total same store revenues in the U.K. during the Current Year increased $128.5 million, or 4.5%, as compared to the Prior Year, driven by outperformances across nearly all lines of business, led by used vehicle retail, new vehicle retail, parts and service and F&I, net, partially offset by a decline in used vehicle wholesale.
New vehicle retail same store revenues decreased 0.7% on a constant currency basis, as compared to the Prior Year. The decrease occurred despite increases in both unit sales and average selling prices, reflecting a higher mix of agency vehicle sales. The Current Year ended with a U.K. new vehicle inventory supply of 36 days, an increase of four days compared to the Prior Year.
Used vehicle retail same store revenues increased 2.7% on a constant currency basis, as compared to the Prior Year, driven by increases in both unit sales and average selling prices. The Current Year ended with a U.K. used vehicle inventory supply of 43 days, no change compared to the Prior Year. Used vehicle wholesale same store revenues decreased 16.0% on a constant currency basis, as compared to the Prior Year, primarily driven by a decrease in wholesale used vehicle units sold, as well as a decline in average wholesale values.
Parts and service same store revenues increased 6.5% on a constant currency basis, as compared to the Prior Year, driven by increases across all business lines, led by wholesale parts revenues. We have invested in improvements to our U.K. customer contact center, streamlining operations to make scheduling appointments easier for customers. In addition, we expanded Saturday appointment availability and implemented more competitive service fee pricing to drive customer pay business, which together contributed to an increase in customer service activity as compared to the Prior Year.
F&I, net same store revenues increased 4.7% on a constant currency basis, as compared to the Prior Year, driven by higher income per contract from our retail finance fees, improved penetration rates on vehicle service contracts and higher new and used vehicle retail unit sales.
Gross Profit
Total gross profit in the U.K. during the Current Year increased $8.7 million, or 2.0%, as compared to the Prior Year, driven by improved same store performance, partially offset by the net impact of dispositions.
Total same store gross profit in the U.K. during the Current Year increased $28.3 million, or 7.1%, as compared to the Prior Year. On a constant currency basis, total same store gross profit increased 3.5%, driven by increases in parts and service, F&I and new vehicle retail gross profit, partially offset by declines in used vehicle gross profit.
New vehicle retail same store gross profit was relatively flat, increasing 0.3% on a constant currency basis, as compared to the Prior Year, as an increase in retail units sold was largely offset by lower gross profit per unit sold. Vehicle affordability pressures continue to impact new vehicle margins.
Used vehicle retail same store gross profit decreased 1.9% on a constant currency basis, as compared to the Prior Year, driven by a decline in gross profit per unit sold, partially offset by an increase in retail units sold.
Parts and service same store gross profit increased on a constant currency basis, as compared to the Prior Year, driven by the increase in parts and service same store revenues, as discussed above.
F&I same store gross profit increased on a constant currency basis, as compared to the Prior Year, as described above in F&I same store revenues.
Total same store gross margin in the U.K. increased 35 basis points, primarily driven by improvement in parts and service gross margin, partially offset by declines in used vehicle retail and used vehicle wholesale gross margins.
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SG&A Expenses
Total SG&A expenses in the U.K. during the Current Year increased $17.2 million, or 5.0%, as compared to the Prior Year. Total same store SG&A expenses in the U.K. during the Current Year increased $23.5 million, or 7.4%, as compared to the Prior Year. Total same store SG&A expenses increased 3.6% on a constant currency basis, as compared to the Prior Year, driven by higher employee-related, information technology and facility costs and an unfavorable comparison to the Prior Year, which included a credit for auction rebates. These increases were partially offset by lower third-party and professional service fees, as a result of our cost-cutting measures.
Consolidated Selected Comparisons — Three and Six Months Ended Compared to 2025
The following table (in millions) and discussion of our results of operations are on a consolidated basis, unless otherwise noted.
Three Months Ended June 30,
2026 2025 Increase/ (Decrease) % Change
Depreciation and amortization expense $ 30.9 $ 28.7 $ 2.2 7.6 %
Restructuring charges $ 2.1 $ 7.6 $ (5.5) (72.3) %
Floorplan interest expense $ 22.0 $ 26.4 $ (4.4) (16.7) %
Other interest expense, net $ 46.7 $ 42.7 $ 4.0 9.3 %
Provision for income taxes $ 31.4 $ 44.0 $ (12.6) (28.7) %
Six Months Ended June 30,
2026 2025 Increase/ (Decrease) % Change
Depreciation and amortization expense $ 62.1 $ 58.0 $ 4.1 7.0 %
Restructuring Charges $ 3.1 $ 18.7 $ (15.6) (83.3) %
Floorplan interest expense $ 45.3 $ 53.3 $ (8.0) (15.0) %
Other interest expense, net $ 95.5 $ 82.5 $ 13.0 15.8 %
Provision for income taxes $ 72.0 $ 83.8 $ (11.8) (14.1) %
Depreciation and Amortization Expense
Depreciation and amortization expense for the Current Quarter and Current Year was higher compared to the Prior Year Quarter and Prior Year, primarily driven by acquired property and equipment in our U.S. and U.K. segments, as we continue to strategically add dealership related real estate and facilities to our investment portfolio and make improvements to our existing facilities intended to enhance the profitability of our dealerships and improve the overall customer experience.
Restructuring Charges
Total restructuring charges during the Current Quarter decreased $5.5 million or 72.3% as compared to the Prior Year Quarter. For the Current Year, restructuring charges decreased $15.6 million or 83.3% as compared to the Prior Year. The decrease in restructuring charges was primarily driven by the completion of the 2024 Restructuring Plan in the Prior Year and the near completion of the 2025 Restructuring Plan in the Current Year. Restructuring charges consist of planned workforce realignment, strategic closing of certain facilities and systems integrations, among other efforts to increase operational efficiency and profitability.
Refer to Note 4. Restructuring within our Notes to Condensed Consolidated Financial Statements for further discussion of our restructuring plan.
Floorplan Interest Expense
Our floorplan interest expense fluctuates with changes in our outstanding borrowings and associated interest rates, which are based on SOFR, the U.S. prime rate or other benchmark rates. Outstanding borrowings largely fluctuate based on our levels of new and used vehicle inventory. To mitigate the impact of interest rate fluctuations, we employ an interest rate hedging strategy, whereby we swap variable interest rate exposure on a portion of our borrowings for a fixed interest rate.
Total floorplan interest expense during the Current Quarter decreased $4.4 million, or 16.7%, as compared to the Prior Year Quarter. For the Current Year, floorplan interest expense decreased $8.0 million, or 15.0%, as compared to the Prior Year. The decrease in floorplan interest expense during the Current Quarter and Current Year was driven by lower used vehicle inventories and reduced floorplan interest rates, along with higher floorplan offset interest income resulting from increased balances in offset accounts. This is partially offset by a decrease in interest income from interest rate swaps due to a floorplan swap that expired during the Current Year.
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Refer to Note 7. Financial Instruments and Fair Value Measurements within our Notes to Condensed Consolidated Financial Statements for additional discussion of interest rate swaps.
Other Interest Expense, Net
Other interest expense, net consists of interest charges primarily on our 4.00% Senior Notes, 6.375% Senior Notes, real estate related debt and other debt, partially offset by interest income.
Other interest expense, net during the Current Quarter, increased $4.0 million, or 9.3%, as compared to the Prior Year Quarter. For the Current Year, other interest expense, net, increased $13.0 million, or 15.8%, as compared to the Prior Year. The increase in other interest expense, net during the Current Quarter and Current Year was primarily attributable to interest expense associated with the Acquisition Line, partially offset by a decrease in interest expense associated with other debt and a decrease in interest income from interest rate swaps due to certain mortgage swaps that expired during the Current Year. Refer to Note 9. Debt within our Notes to Condensed Consolidated Financial Statements for additional discussion of our debt.
Provision for Income Taxes
Provision for income taxes of $31.4 million during the Current Quarter decreased by $12.6 million, or 28.7%, as compared to the Prior Year Quarter. For the Current Year, our provision for income taxes of $72.0 million decreased by $11.8 million, or 14.1%, as compared to the Prior Year. The decrease in tax expense in the Current Quarter and Current Year, as compared to the Prior Year Quarter and Prior Year, was primarily due to lower pre-tax income. Our Current Quarter and Current Year effective tax rate of 23.4% and 23.6% were lower than our Prior Year Quarter’s and Prior Year’s effective tax rate of 24.0% and 23.8%, primarily due to lower pre-tax income and tax benefits from dispositions in the Current Quarter and the Current Year.
We believe that it is more-likely-than-not that our deferred tax assets, net of valuation allowances provided, will be realized, based primarily on assumptions of our future taxable income, considering future reversals of existing taxable temporary differences.
Liquidity and Capital Resources
Our liquidity and capital resources are primarily derived from cash on hand, cash temporarily invested as a pay down of our U.S. Floorplan Line, FMCC Facility and GM Financial Facility levels (refer to Note 10. Floorplan Notes Payable within our Notes to Condensed Consolidated Financial Statements for additional information), cash from operations, borrowings under our credit facilities, working capital, dealership and real estate acquisition financing and proceeds from debt and equity offerings. We anticipate we will generate sufficient cash flows from operations, coupled with cash on hand and available borrowing capacity under our credit facilities, to fund our working capital requirements, service our debt and meet any other recurring operating expenditures.
Available Liquidity Resources
We had the following sources of liquidity available (in millions):
June 30, 2026
Cash and cash equivalents $ 164.5
Floorplan offset accounts 157.5
Available capacity under Acquisition Line 362.1
Total liquidity $ 684.2
Cash Flows
We arrange our new and used vehicle inventory floorplan financing through lenders affiliated with our vehicle manufacturers and our Revolving Credit Facility. In accordance with U.S. GAAP, we report floorplan financed with lenders affiliated with our vehicle manufacturers (excluding the cash flows from or to manufacturer-affiliated lenders participating in our syndicated lending group) within Cash Flows from Operating Activities in the Condensed Consolidated Statements of Cash Flows. We report floorplan financed with the Revolving Credit Facility (including the cash flows from or to manufacturer-affiliated lenders participating in the facility) and other credit facilities in the U.K. unaffiliated with our manufacturer partners, within Cash Flows from Financing Activities in the Condensed Consolidated Statements of Cash Flows. Refer to Note 10. Floorplan Notes Payable within our Notes to Condensed Consolidated Financial Statements for additional discussion of our Revolving Credit Facility.
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However, we believe that all floorplan financing of inventory purchases in the normal course of business should correspond with the related inventory activity and be classified as an operating activity. As a result, we use the non-GAAP measure “Adjusted net cash provided by/used in operating activities” and “Adjusted net cash provided by/used in financing activities” to further evaluate our cash flows. We believe that this classification eliminates excess volatility in our operating cash flows prepared in accordance with U.S. GAAP. In addition, floorplan financing associated with dealership acquisitions and dispositions is classified as investing activities on an adjusted basis to eliminate excess volatility in our operating cash flows prepared in accordance with U.S. GAAP.
The following table reconciles cash flows on a U.S. GAAP basis to the corresponding adjusted amounts (in millions):
Six Months Ended June 30,
2026 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by operating activities: $ 155.0 $ 410.3
Change in Floorplan notes payable — credit facilities and other, excluding floorplan offset and net acquisitions and dispositions 50.0 (58.0)
Change in Floorplan notes payable — manufacturer affiliates associated with net acquisitions and dispositions and floorplan offset activity 5.6 (2.0)
Adjusted net cash provided by operating activities $ 210.6 $ 350.4
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash provided by (used in) investing activities: $ 22.2 $ (371.3)
Change in cash paid for acquisitions, associated with Floorplan notes payable 11.3 26.8
Change in proceeds from disposition of franchises, property and equipment, associated with Floorplan notes payable (90.3) (18.2)
Adjusted net cash used in investing activities $ (56.8) $ (362.7)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net cash used in financing activities: $ (44.6) $ (27.2)
Change in Floorplan notes payable, excluding floorplan offset 23.4 51.2
Adjusted net cash (used in) provided by financing activities $ (21.2) $ 24.1
Sources and Uses of Liquidity from Operating Activities — Six Months Ended June 30, 2026 Compared to 2025
For the Current Year, net cash provided by operating activities decreased by $255.4 million, as compared to the Prior Year. On an adjusted basis for the same period, adjusted net cash provided by operating activities decreased by $139.9 million. The decrease on an adjusted basis was primarily driven by a $159.4 million increase in inventories, a $35.1 million decrease in net income and a $31.3 million increase in non-cash gains from the disposition of assets, partially offset by a $93.9 million increase in floorplan notes payable – manufacturer affiliates.
Sources and Uses of Liquidity from Investing Activities — Six Months Ended June 30, 2026 Compared to 2025
For the Current Year, net cash provided by investing activities increased by $393.5 million, as compared to the Prior Year. On an adjusted basis for the same period, adjusted net cash used in investing activities decreased by $305.8 million, primarily due to a $222.1 million increase in proceeds from the disposition of franchises and property and equipment, as well as an $85.3 million decrease in acquisition activity.
Capital Expenditures
Our capital expenditures include costs to extend the useful lives of current dealership facilities, as well as to start or expand operations. In general, expenditures relating to the construction or expansion of dealership facilities are driven by dealership acquisition activity, new franchises being granted to us by a manufacturer, significant growth in sales at an existing facility, relocation opportunities or manufacturer imaging programs. We critically evaluate all planned future capital spending, working closely with our manufacturer partners to maximize the return on our investments.
For the Current Year, $126.8 million was used to purchase property and equipment.
Sources and Uses of Liquidity from Financing Activities — Six Months Ended June 30, 2026 Compared to 2025
For the Current Year, net cash used in financing activities increased by $17.4 million, as compared to the Prior Year. On an adjusted basis for the same period, adjusted net cash used in financing activities increased by $45.3 million. The increase in net cash used in financing activities on an adjusted basis was primarily driven by a $470.1 million increase in net repayments on the Acquisition Line and a $58.0 million increase in net repayments on other debt. This increase was partially offset by an increase in net borrowings on our U.S. Floorplan Line of $379.6 million (representing the net cash activity in our floorplan offset account) and a $94.9 million decrease in repurchases of common stock.
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Credit Facilities, Debt Instruments and Other Financing Arrangements
Our various credit facilities, debt instruments and other financing arrangements are used to finance the purchase of inventory and real estate, provide acquisition funding and provide working capital for general corporate purposes.
The following table summarizes the commitment of our credit facilities as of June 30, 2026 (in millions):
Total Commitment Outstanding Available
U.S. Floorplan Line (1) $ 1,750.0 $ 1,224.8 $ 525.2
Acquisition Line (2) 1,750.0 821.3 362.1
Total revolving credit facility 3,500.0 2,046.1 887.3
FMCC Facility (3) 200.0 176.2 23.8
GM Financial Facility (4) 376.7 209.4 167.3
Total U.S. credit facilities (5) $ 4,076.7 $ 2,431.7 $ 1,078.4
(1) The available balance at June 30, 2026, includes $157.5 million of immediately available funds. The remaining available balance can be used for vehicle inventory financing.
(2) The outstanding balance of $821.3 million is related to outstanding letters of credit of $12.3 million and $809.0 million in USD borrowings. The available borrowings may be limited from time to time, based on certain debt covenant calculations, and as a result, the outstanding balance plus available borrowings may not equal the total commitment.
(3) The available balance at June 30, 2026, includes no immediately available funds. The remaining available balance can be used for Ford new vehicle inventory financing.
(4) The available balance at June 30, 2026, includes no immediately available funds. The remaining available balance can be used for General Motors new and loaner vehicle inventory financing.
(5) The outstanding balance excludes $570.8 million of borrowings with manufacturer-affiliates and third-party financial institutions for foreign and loaner vehicle financing not associated with any of our U.S. credit facilities.
We have other credit facilities in the U.S. and the U.K. with third-party financial institutions, most of which are affiliated with the automobile manufacturers that provide financing for portions of our new, used and rental vehicle inventories. In addition, we have outstanding debt instruments, including our 4.00% and 6.375% Senior Notes, as well as real estate related and other debt instruments. Refer to Note 9. Debt within our Notes to Condensed Consolidated Financial Statements for further information.
Covenants
Our Revolving Credit Facility, indentures governing our 4.00% and 6.375% Senior Notes and certain mortgage term loans contain customary financial and operating covenants that place restrictions on us, including our ability to incur additional indebtedness, create liens or to sell or otherwise dispose of assets and merge or consolidate with other entities. Certain of our mortgage agreements contain cross-default provisions that, in the event of a default of certain mortgage agreements and of our Revolving Credit Facility, could trigger an uncured default.
As of June 30, 2026, we were in compliance with the requirements of the financial covenants under our debt agreements. We are required to maintain the ratios detailed in the following table:
As of June 30, 2026
Required Actual
Total adjusted leverage ratio < 5.75 3.30
Fixed charge coverage ratio > 1.20 2.84
Based on our position as of June 30, 2026, and our outlook as discussed within Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, we believe we have sufficient liquidity and do not anticipate any material liquidity constraints or issues with our ability to remain in compliance with our debt covenants.
Refer to Note 9. Debt and Note 10. Floorplan Notes Payable within our Notes to Condensed Consolidated Financial Statements for further discussion of our debt instruments, credit facilities and other financing arrangements existing as of June 30, 2026.
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Share Repurchases and Dividends
From time to time, our Board of Directors authorizes the repurchase of shares of our common stock up to a certain monetary limit and at a prescribed cost limit per share. On November 11, 2025, our Board of Directors increased the share repurchase authorization to $500.0 million. For the Current Year, 205,190 shares were repurchased, at an average price of $353.08 per share, for a total of $72.4 million, excluding excise taxes of $0.5 million. As of June 30, 2026, we had $306.3 million available under our current share repurchase authorization.
During the Current Year, our Board of Directors approved an increase in the 2026 annual dividend rate to $2.20 per share, which represents an increase of 10%, or $0.20, as compared to the 2025 annual dividend rate of $2.00 per share. Consistent with this increase, a quarterly cash dividend of $0.55 per share on all shares of our common stock was approved, which resulted in $13.0 million paid to common shareholders and $0.1 million to unvested restricted stock award holders.
Future share repurchases and the payment of any future dividends are subject to the business judgment of our Board of Directors, taking into consideration our historical and projected results of operations, financial condition, cash flows, capital requirements, covenant compliance, changes in laws and regulations, current economic environment and other factors considered relevant.