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 June 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 MANAGEMENT’S DISCUSSION AND ANALYSIS 23 Table of Contents 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 MANAGEMENT’S DISCUSSION AND ANALYSIS 24 Table of Contents 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 six months of 2026, we utilized $153.4 million for capital expenditures investing in our existing business and $221.7 million expanding our network through acquisitions. We also provided shareholder return in the form of $25.7 million in dividends and $534.0 million in share repurchases. As of June 30, 2026, we had available liquidity of approximately $1.3 billion, which was comprised of $110.3 million in unrestricted cash, $67.0 million in marketable securities, and $1.1 billion availability on our credit facilities. Financial Performance We experienced growth of revenue in 2026 compared to 2025, primarily driven by increases in used vehicle and aftersales volume related to acquisitions. Total gross profit grew in 2026 compared to 2025, primarily driven by acquisition growth and supported by same store increases in aftersales. New vehicle gross profit decreased compared to 2025 due to continued normalization of margins. Net income declined in 2026 compared to 2025, primarily as a result of our increase in SG&A as a percentage of gross profit and equity method investment losses. MANAGEMENT’S DISCUSSION AND ANALYSIS 25 Table of Contents Vehicle Operations Key performance metrics for revenue and gross profit were as follows: Three Months Ended June 30, Six Months Ended June 30, ($ in millions, except per unit values) 2026 2025 Change 2026 2025 Change Revenues New vehicle $4,829.2 $4,703.5 2.7 % $9,208.6 $9,283.9 (0.8) % Used vehicle 3,528.3 3,478.3 1.4 7,017.7 6,728.8 4.3 Finance and insurance 366.4 373.8 (2.0) 726.1 738.1 (1.6) Aftersales 1,067.4 1,027.4 3.9 2,110.3 2,010.4 5.0 Total revenues 9,791.3 9,583.0 2.2 $19,062.7 $18,761.2 1.6 Gross profit New vehicle $284.0 $313.4 (9.4) % $543.5 $606.8 (10.4) % Used vehicle 214.0 205.3 4.2 401.7 394.0 2.0 Finance and insurance 366.4 373.8 (2.0) 726.1 738.1 (1.6) Aftersales 633.0 592.6 6.8 1,247.8 1,156.5 7.9 Total gross profit 1,497.4 1,485.1 0.8 $2,919.1 $2,895.4 0.8 Gross profit margins New vehicle 5.9% 6.7% (80) bps 5.9% 6.5% (60) bps Used vehicle 6.1 5.9 20 5.7 5.9 (20) Finance and insurance 100.0 100.0 — 100.0 100.0 — Aftersales 59.3 57.7 160 59.1 57.5 160 Total gross profit margin 15.3 15.5 (20) 15.3 15.4 (10) Units sold New vehicle 104,089 101,316 2.7 % 198,876 200,819 (1.0) % Used vehicle retail 106,114 109,053 (2.7) 216,265 216,379 (0.1) Average selling price per unit (excluding agency) New vehicle $47,156 $47,494 (0.7) % $47,024 $47,353 (0.7) % Used vehicle retail 29,593 28,379 4.3 29,018 27,793 4.4 Average gross profit per unit New vehicle $2,728 $3,093 (11.8)% $2,733 $3,022 (9.6)% Used vehicle retail 2,014 1,911 5.4 1,848 1,840 0.4 Finance and insurance 1,808 1,819 (0.6) 1,807 1,812 (0.3) Total vehicle 1 4,112 4,242 (3.1) 4,026 4,168 (3.4) 1Includes the sales and gross profit related to new, used, and finance and insurance and unit sales for new and used retail. MANAGEMENT’S DISCUSSION AND ANALYSIS 26 Table of Contents Same Store Operating Data We believe that same store comparisons are an important indicator of our financial performance. Same store measures demonstrate our ability to grow revenues in our existing locations. As a result, same store measures have been integrated into the discussion below. Same store measures reflect results for stores that were operating in each comparison period and only include the months when operations occurred in both periods. For example, a store acquired in May 2025 would be included in same store operating data beginning in June 2026, after its first complete comparable month of operation. The second quarter operating results for the same store comparisons would include results for that store in only the month of June for both comparable periods. Three Months Ended June 30, Six Months Ended June 30, ($ in millions, except per unit values) 2026 2025 Change 2026 2025 Change Revenues New vehicle $4,548.3 $4,619.6 (1.5) % $8,704.3 $9,080.0 (4.1) % Used vehicle 3,316.7 3,390.8 (2.2) 6,620.6 6,539.9 1.2 Finance and insurance 350.3 369.6 (5.2) 696.2 728.1 (4.4) Aftersales 1,013.0 1,002.9 1.0 2,003.9 1,957.2 2.4 Total revenues 9,228.3 9,382.9 (1.6) $18,025.0 $18,305.2 (1.5) Gross profit New vehicle $267.1 $307.5 (13.1) % $513.6 $594.2 (13.6) % Used vehicle 205.3 202.9 1.2 383.9 389.9 (1.5) Finance and insurance 350.3 369.6 (5.2) 696.2 728.1 (4.4) Aftersales 599.7 581.7 3.1 1,182.2 1,132.4 4.4 Total gross profit 1,422.4 1,461.7 (2.7) $2,775.9 $2,844.6 (2.4) Gross profit margins New vehicle 5.9% 6.7% (80) bps 5.9% 6.5% (60) bps Used vehicle 6.2 6.0 20 5.8 6.0 (20) Finance and insurance 100.0 100.0 — 100.0 100.0 — Aftersales 59.2 58.0 120 59.0 57.9 110 Total gross profit margin 15.4 15.6 (20) 15.4 15.5 (10) Units sold New vehicles 98,286 100,517 (2.2) % 189,168 198,103 (4.5) % Used vehicle retail 101,462 108,040 (6.1) 207,669 213,087 (2.5) Average selling price per unit (excluding agency) New vehicles $47,082 $47,020 0.1 % $46,767 $46,954 (0.4) % Used vehicle retail 29,141 27,965 4.2 28,553 27,454 4.0 Average gross profit per unit New vehicles $2,718 $3,059 (11.1)% $2,715 $3,000 (9.5)% Used vehicle retail 2,019 1,899 6.3 1,839 1,846 (0.4) Finance and insurance 1,811 1,814 (0.2) 1,809 1,813 (0.2) Total vehicle 1 4,119 4,220 (2.4) 4,016 4,164 (3.6) 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. MANAGEMENT’S DISCUSSION AND ANALYSIS 27 Table of Contents Q2 2026 vs. Q2 2025 New vehicle revenue for the three months ended June 30, 2026 increased 2.7% compared to the same period of 2025, driven by acquisition activity. Same store new vehicle revenue decreased 1.5% due to a decrease in unit volume of 2.2%, partially offset by an increase in average selling prices of 0.1%. Same store new vehicle gross profit per unit decreased 11.1%, driven by a decrease in new vehicle gross profit margins of 80 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 $352 to $4,812. YTD 2026 vs. YTD 2025 New vehicle revenue for the six months ended June 30, 2026 decreased 0.8% compared to the same period of 2025, primarily due to same store performance, offset by acquisition activity. Same store new vehicle revenue decreased 4.1% due to a decrease in unit volume of 4.5% and a decrease in average selling prices of 0.4%. Same store new vehicle gross profit per unit decreased 9.5%, driven by a decrease in new vehicle gross profit margins of 60 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 $249 to $4,831. 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. Q2 2026 vs. Q2 2025 Used vehicle retail revenue for the three months ended June 30, 2026 increased 1.4% compared to the same period of 2025 driven by acquisition activity. On a same store basis, used vehicle retail revenue decreased 2.2% due to a decrease in unit volume of 6.1%, partially offset by an increase in average selling prices of 4.2%. 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 $138 to $3,621. YTD 2026 vs. YTD 2025 Used vehicle retail revenue for the six months ended June 30, 2026 increased 4.3% 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 1.2% due to an increase in average selling prices of 4.0%, partially offset by a decrease in unit volume of 2.5%. 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, decreased $7 to $3,438. 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. Q2 2026 vs. Q2 2025 Total finance and insurance income decreased 2.0% in the three months ended June 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 5.2%. On a same store basis, our finance and insurance revenue per retail unit decreased $3 to $1,811. YTD 2026 vs. YTD 2025 Total finance and insurance income decreased 1.6% in the six months ended June 30, 2026 compared to the same period of 2025, driven by same store performance, offset by acquisition activity. Same store finance and insurance MANAGEMENT’S DISCUSSION AND ANALYSIS 28 Table of Contents revenues decreased 4.4%. On a same store basis, our finance and insurance revenue per retail unit decreased $4 to $1,809. 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. Q2 2026 vs. Q2 2025 Our aftersales revenue increased 3.9% in the three months ended June 30, 2026 compared to the same period of 2025, driven by same store performance and supported by acquisition activity. 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 56.7% of the total. Same store aftersales gross profit increased 3.1%. This increase was primarily due to increased volumes of customer pay and warranty transactions. Overall same store aftersales gross margins increased 120 bps, primarily as a result of increased customer pay gross margin of 110 bps and increased warranty gross margin of 150 bps. YTD 2026 vs. YTD 2025 Our aftersales revenue increased 5.0% in the six months ended June 30, 2026 compared to the same period of 2025, driven by same store performance and supported by acquisition activity. Same store aftersales revenue increased 2.4%, driven by an increase in customer pay revenues of 2.8% and an increase in warranty revenues of 3.4% compared to the prior year. Same store aftersales gross profit increased 4.4%. 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 110 bps and increased warranty gross margins of 100 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. MANAGEMENT’S DISCUSSION AND ANALYSIS 29 Table of Contents Selected Financing Operations Financial Information Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2026 % (1) 2025 % (1) 2026 % 1 2025 % 1 Interest and fee income $116.4 8.9 $98.8 9.2 $226.9 8.9 $193.2 9.3 Interest expense (53.5) (4.1) (49.8) (4.7) (105.2) (4.1) (97.9) (4.7) Total interest margin 62.9 4.8 49.0 4.5 121.7 4.8 95.3 4.5 Lease income 26.4 23.7 50.3 44.2 Lease costs (22.5) (18.6) (42.7) (35.4) Lease income, net 3.9 5.1 7.6 8.8 Provision expense (15.8) (1.2) (21.2) (2.0) (42.2) (1.7) (46.7) (2.2) Other financing operations expenses (14.5) (1.1) (12.8) (1.2) (29.3) (1.2) (24.8) (1.2) Finance operations income $36.5 $20.1 $57.8 $32.6 Total average managed finance receivables $5,271.4 $4,287.6 $5,140.2 $4,196.6 1Annualized percentage of total average managed finance receivables. DFC Portfolio Information1 Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2026 2025 2026 2025 Loan origination information Net loans originated $884.4 $730.5 $1,724.3 $1,353.4 Vehicle units financed 27,316 23,581 54,084 44,425 Total penetration rate 2 17.5% 14.8% 17.8% 14.2% Weighted average contract rate 8.0% 8.7% 8.0% 8.9% Weighted average credit score 3 748 747 749 746 Weighted average FE LTV 4 95.6% 95.4% 95.4% 95.0% Weighted average term (in months) 72 73 72 72 Loan performance information Allowance for loan losses as a percentage of ending managed receivables 2.9% 3.1% 2.9% 3.1% Net credit losses on managed receivables $11.9 $13.3 $31.0 $33.5 Annualized net credit losses as a percentage of total average managed receivables 0.9% 1.4% 1.3% 1.7% Past due accounts as a percentage of ending managed receivables 5 3.3% 4.6% 3.3% 4.7% Average recovery rate 6 50.1% 47.8% 49.0% 47.8% 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. Q2 2026 vs. Q2 2025 Financing operations recorded higher income in the three months ended June 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 4.8%. Loan originations increased in the three months ended June 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 June 30, 2026 decreased to 8.0%, compared with 8.7% in the same period of 2025, primarily due to our maintaining competitive pricing following Federal Reserve rate cuts. The decrease in annualized net charge-offs of past due accounts as a percentage of ending managed receivables MANAGEMENT’S DISCUSSION AND ANALYSIS 30 Table of Contents 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 six months ended June 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 4.8%. The weighted average contract rate on loans originated in the six months ended June 30, 2026 decreased to 8.0%, compared with 8.9% in the same period of 2025 as we decreased rates to maintain competitiveness following Federal Reserve rate cuts. 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 includes salaries and related personnel expenses, advertising (net of manufacturer cooperative advertising credits), rent, facility costs, and other general corporate expenses. Q2 2026 vs. Q2 2025 Three Months Ended June 30, Increase (Decrease) % Increase (Decrease) ($ in millions) 2026 2025 Personnel $638.8 $641.0 $(2.2) (0.3)% Rent and facility costs 105.2 99.5 5.7 5.7 Advertising 69.7 64.0 5.7 8.9 Other 201.0 210.2 (9.2) (4.4) Total SG&A $1,014.7 $1,014.7 $— —% Three Months Ended June 30, Increase (Decrease) As a % of gross profit 2026 2025 Personnel 42.7% 43.2% (50)bps Rent and facility costs 7.0 6.7 30 Advertising 4.7 4.3 40 Other 13.4 14.1 (70) Total SG&A 67.8% 68.3% (50)bps SG&A as a percentage of gross profit was 67.8% for the three months ended June 30, 2026 compared to 68.3% for the same period of 2025. SG&A expense remained flat, including increases in advertising, rent, and facility costs due to acquisitions, and offsetting decreases in personnel and other SG&A costs. On a same store basis and excluding non-core charges, SG&A as a percentage of gross profit was 68.6% compared to 67.2% for the same period of 2025. The increase was primarily related to SG&A growth outpacing gross profit growth in the period. MANAGEMENT’S DISCUSSION AND ANALYSIS 31 Table of Contents YTD 2026 vs. YTD 2025 Six Months Ended June 30, Increase % Increase ($ in millions) 2026 2025 Personnel $1,266.8 $1,248.4 $18.4 1.5% Rent and facility costs 213.5 198.6 14.9 7.5 Advertising 141.0 125.3 15.7 12.5 Other 430.8 395.1 35.7 9.0 Total SG&A $2,052.1 $1,967.4 $84.7 4.3% Six Months Ended June 30, Increase As a % of gross profit 2026 2025 Personnel 43.4% 43.1% 30bps Rent and facility costs 7.3 6.9 40 Advertising 4.8 4.3 50 Other 14.8 13.6 120 Total SG&A 70.3% 67.9% 240bps SG&A as a percentage of gross profit was 70.3% for the six months ended June 30, 2026 compared to 67.9% for the same period of 2025, driven by increases in all expense categories outpacing the increase in gross profit. Total SG&A expense increased 4.3%, driven by all areas as a result of our acquisition activity. On a same store basis and excluding non-core charges, SG&A as a percentage of gross profit was 70.1% compared to 67.3% for the same period of 2025. The increase was related to SG&A growth outpacing gross profit growth in the period. SG&A expense adjusted for non-core charges was as follows: Q2 2026 vs. Q2 2025 Three Months Ended June 30, Increase (Decrease) % Increase (Decrease) ($ in millions) 2026 2025 Personnel $638.8 $641.0 $(2.2) (0.3)% Rent and facility costs 105.2 99.5 5.7 5.7 Advertising 69.7 64.0 5.7 8.9 Adjusted other 213.4 200.5 12.9 6.4 Adjusted total SG&A $1,027.1 $1,005.0 $22.1 2.2% Three Months Ended June 30, Increase (Decrease) As a % of gross profit 2026 2025 Personnel 42.7% 43.2% (50)bps Rent and facility costs 7.0 6.7 30 Advertising 4.7 4.3 40 Adjusted other 14.2 13.5 70 Adjusted total SG&A 68.6% 67.7% 90bps Adjusted SG&A for the three months ended June 30, 2026 excludes a $15.1 million net gain on store disposals, $2.3 million in storm insurance charges, and $0.4 million in acquisition-related expenses. Adjusted SG&A for the three months ended June 30, 2025 excludes a $7.2 million net loss on store disposals, $2.4 million in storm insurance charges, and $0.1 million in acquisition-related expenses. MANAGEMENT’S DISCUSSION AND ANALYSIS 32 Table of Contents YTD 2026 vs. YTD 2025 Six Months Ended June 30, Increase % Increase ($ in millions) 2026 2025 Personnel $1,266.8 $1,248.4 $18.4 1.5% Rent and facility costs 213.5 198.6 14.9 7.5% Advertising 141.0 125.3 15.7 12.5% Adjusted other 422.5 394.2 28.3 7.2% Adjusted total SG&A $2,043.8 $1,966.5 $77.3 3.9% Six Months Ended June 30, Increase As a % of gross profit 2026 2025 Personnel 43.4% 43.1% 30bps Rent and facility costs 7.3 6.9 40 Advertising 4.8 4.3 50 Adjusted other 14.5 13.6 90 Adjusted total SG&A 70.0% 67.9% 210bps Adjusted SG&A for the six months ended June 30, 2026 excludes $20.3 million in one-time contract buyouts, $2.3 million in storm insurance charges, $0.7 million in acquisition-related expenses, and a $15.0 million net gain on store disposals. Adjusted SG&A for the six months ended June 30, 2025 excludes $2.8 million in storm insurance charges, $0.3 million in acquisition-related expenses, and a $2.2 million net gain on store disposals. Adjusted SG&A is a non-GAAP measure. See Non-GAAP Reconciliations for more details. Floor Plan Interest Expense Below are the details for carrying costs for vehicle inventory: Q2 2026 vs. Q2 2025 Three Months Ended June 30, % ($ in millions) 2026 2025 Change Change Floor plan interest expense $69.7 $55.0 $14.7 26.7% Floor plan interest expense increased $14.7 million in the three months ended June 30, 2026 compared to the same period of 2025 due to an increase in floored inventory levels, as a result of our converting used inventory‑secured revolvers to floorplan facilities during the year. YTD 2026 vs. YTD 2025 Six Months Ended June 30, % ($ in millions) 2026 2025 Change Change Floor plan interest expense $125.6 $112.0 $13.6 12.1% Floor plan interest expense increased $13.6 million in the six months ended June 30, 2026 compared to the same period of 2025 due to an increase in floored inventory levels, as a result of our converting used inventory‑secured revolvers to floorplan facilities during the year. Depreciation and Amortization Depreciation and amortization is comprised of depreciation expense related to buildings, significant remodels or improvements, furniture, tools, equipment, signage, and amortization of certain intangible assets. Q2 2026 vs. Q2 2025 Three Months Ended June 30, Increase % Increase ($ in millions) 2026 2025 Depreciation and amortization $70.9 $65.2 $5.7 8.7% MANAGEMENT’S DISCUSSION AND ANALYSIS 33 Table of Contents YTD 2026 vs. YTD 2025 Six Months Ended June 30, Increase % Increase ($ in millions) 2026 2025 Depreciation and amortization $140.7 $129.0 $11.7 9.1% Acquisition activity contributed to the increases in depreciation and amortization in 2026 compared to 2025. We acquired $158.3 million of depreciable property as part of our acquisition activity over the trailing twelve months ended June 30, 2026. For the six months ended June 30, 2026, we invested $153.4 million in capital expenditures. These investments increased the amount of depreciation expense in the three and six months ended June 30, 2026. See the discussion under Liquidity and Capital Resources for additional information. Operating Income Operating income as a percentage of revenue, or operating margin, was as follows: Q2 2026 vs. Q2 2025 Three Months Ended June 30, 2026 2025 Operating margin 4.6% 4.4% Operating margin adjusted for non-core charges 1 4.5% 4.5% 1See Non-GAAP Reconciliations for more details. Operating margin increased 20 bps in the three months ended June 30, 2026 compared to the same period in 2025, primarily due to decreased SG&A as a percentage of revenue and improved profitability of our Financing Operations, partially offset by a decrease in gross margin. YTD 2026 vs. YTD 2025 Six Months Ended June 30, 2026 2025 Operating margin 4.1% 4.4% Operating margin adjusted for non-core charges 1 4.2% 4.4% 1See Non-GAAP Reconciliations for more details. Operating margin decreased 30 bps in the six months ended June 30, 2026 compared to the same period in 2025, primarily due to increased SG&A as a percentage of revenue and a decrease in gross margin, partially offset by increased profitability of our Financing Operations. Non-Operating Expenses Other Interest Expense Other interest expense includes interest on senior notes, debt incurred related to acquisitions, real estate mortgages, used and service loaner vehicle inventory financing commitments, and revolving lines of credit. Q2 2026 vs. Q2 2025 Three Months Ended June 30, Increase (Decrease) % Increase (Decrease) ($ in millions) 2026 2025 Senior notes interest $27.6 $19.0 $8.6 45.3% Mortgage interest 15.9 14.1 1.8 12.8 Other interest 20.5 36.1 (15.6) (43.2) Capitalized interest (1.3) (2.5) (1.2) NM Total other interest expense $62.7 $66.7 $(4.0) (6.0)% Other interest expense for the three months ended June 30, 2026 decreased $4.0 million related to decreased borrowings on used inventory‑secured revolvers compared to the same period of 2025, partially offset by an increase from our September 2025 issuance of senior notes due 2030. MANAGEMENT’S DISCUSSION AND ANALYSIS 34 Table of Contents YTD 2026 vs. YTD 2025 Six Months Ended June 30, Increase (Decrease) % Increase (Decrease) ($ in millions) 2026 2025 Senior notes interest $55.2 $38.0 $17.2 45.3% Mortgage interest 31.6 28.5 3.1 10.9 Other interest 49.1 70.1 (21.0) (30.0) Capitalized interest (3.0) (4.4) (1.4) NM Total other interest expense $132.9 $132.2 $0.7 0.5% Other interest expense for the six months ended June 30, 2026 increased $0.7 million related to our September 2025 issuance of senior notes due 2030, offset by a decrease in borrowings on used inventory‑secured revolvers compared to the same period of 2025. Other Income (Expense), net Q2 2026 vs. Q2 2025 Three Months Ended June 30, Increase (Decrease) % Increase (Decrease) ($ in millions) 2026 2025 Equity method investment $31.2 $37.1 $(5.9) (15.9)% Foreign currency remeasurement (3.4) 5.3 (8.7) NM Net pension benefit 0.5 2.4 (1.9) (79.2) Miscellaneous 7.9 3.7 4.2 113.5 Other income, net $36.2 $48.5 $(12.3) (25.4)% Other income, net in the three months ended June 30, 2026 decreased $12.3 million compared to the same period of 2025, primarily as a result of foreign currency remeasurements and fair value changes in our investment in Pinewood Technologies Group PLC. YTD 2026 vs. YTD 2025 Six Months Ended June 30, Increase (Decrease) % Increase (Decrease) ($ in millions) 2026 2025 Equity method investments $(38.9) $30.9 (69.8) NM Foreign currency remeasurements (4.9) 5.1 (10.0) NM Net pension benefits 1.0 4.6 (3.6) (78.3) Miscellaneous 11.3 8.7 2.6 29.9 Other (expense) income, net $(31.5) $49.3 $(80.8) NM Other (expense) income, net in the six months ended June 30, 2026 decreased $80.8 million compared to the same period of 2025, primarily as a result of fair value changes in our investment in Pinewood Technologies Group PLC and foreign currency remeasurements. Income Tax Provision Our effective income tax rate was as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Effective income tax rate 25.7% 26.7% 26.4% 26.3% Effective income tax rate excluding non-core items 1 26.9% 26.0% 26.7% 26.0% 1See Non-GAAP Reconciliations for more details. Our effective income tax rate for the six months ended June 30, 2026 compared to last year was negatively affected by a decrease in general business credits, offset by tax basis differences on divested assets in 2025. Excluding non-core charges and acquired general business credits, we estimate our annual effective income tax rate to be 27.1%. MANAGEMENT’S DISCUSSION AND ANALYSIS 35 Table of Contents 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 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. Three Months Ended June 30, 2026 ($ 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 $1,014.7 $15.1 $— $(2.3) $(0.4) $— $1,027.1 Operating income (expense) 448.3 (15.1) — 2.3 0.4 — 435.9 Other income (expense), net 36.2 — (28.2) — — — 8.0 Income (loss) before income taxes $352.1 $(15.1) $(28.2) $2.3 $0.4 $— $311.5 Income tax (provision) benefit (90.5) 4.1 6.4 (0.6) (0.1) (3.2) (83.9) Net income (loss) 261.6 (11.0) (21.8) 1.7 0.3 (3.2) 227.6 Net income attributable to NCI (1.6) — — — — — (1.6) Net income (loss) attributable to Lithia Motors, Inc. $260.0 $(11.0) $(21.8) $1.7 $0.3 $(3.2) $226.0 Diluted earnings (loss) per share attributable to Lithia Motors, Inc. $11.54 $(0.49) $(0.96) $0.07 $0.01 $(0.14) $10.03 Diluted share count 22.5 Three Months Ended June 30, 2025 ($ in millions, except per share amounts) As reported Net loss on disposal of stores Investment gain (1) Insurance reserves Acquisition expenses Tax attribute Adjusted Selling, general and administrative $1,014.7 $(7.2) $— $(2.4) $(0.1) $— $1,005.0 Operating income 425.3 7.2 — 2.4 0.1 — 435.0 Other income (expense), net 48.5 — (36.4) — — — 12.1 Income (loss) before income taxes $352.1 $7.2 $(36.4) $2.4 $0.1 $— $325.4 Income tax (provision) benefit (93.9) 1.8 9.5 (0.6) — (1.3) (84.5) Net income (loss) 258.2 9.0 (26.9) 1.8 0.1 (1.3) 240.9 Net income attributable to NCI (2.1) — — — — — (2.1) Net income (loss) attributable to Lithia Motors, Inc. $256.1 $9.0 $(26.9) $1.8 $0.1 $(1.3) $238.8 Diluted earnings (loss) per share attributable to Lithia Motors, Inc. $9.87 $0.35 $(1.04) $0.07 $— $(0.05) $9.20 Diluted share count 25.9 MANAGEMENT’S DISCUSSION AND ANALYSIS 36 Table of Contents Six Months Ended June 30, 2026 ($ in millions, except per share amounts) As reported Net gain on disposal of stores Investment loss Insurance reserves Acquisition expenses Contract buyouts Tax attribute Adjusted Selling, general and administrative $2,052.1 $15.0 $— $(2.3) $(0.7) $(20.3) $— $2,043.8 Operating income (loss) 784.1 (15.0) — 2.3 0.7 20.3 — 792.4 Other (expense) income, net (31.5) — 45.2 — — — — 13.7 Income (loss) before income taxes $494.1 $(15.0) $45.2 $2.3 $0.7 $20.3 $— $547.6 Income tax (provision) benefit (130.4) 4.0 (12.1) (0.6) (0.1) (5.1) (2.0) (146.3) Net income (loss) 363.7 (11.0) 33.1 1.7 0.6 15.2 (2.0) 401.3 Net income attributable to NCI (3.3) — — — — — — (3.3) Net income (loss) attributable to Lithia Motors, Inc. $360.4 $(11.0) $33.1 $1.7 $0.6 $15.2 $(2.0) $398.0 Diluted earnings (loss) per share attributable to Lithia Motors, Inc. $15.68 $(0.48) $1.44 $0.07 $0.03 $0.66 $(0.08) $17.32 Diluted share count 23.0 Six Months Ended June 30, 2025 ($ in millions, except per share amounts) As reported Net gain on disposal of stores Investment gain (1) Insurance reserves Acquisition expenses Tax attribute Adjusted Selling, general and administrative $1,967.4 $2.2 $— $(2.8) $(0.3) $— $1,966.5 Operating income (loss) 831.6 (2.2) — 2.8 0.3 — 832.5 Other income (expense), net 49.3 — (26.7) — — — 22.6 Income (loss) before income taxes $636.7 $(2.2) $(26.7) $2.8 $0.3 $— $610.9 Income tax (provision) benefit (167.3) 4.3 7.0 (0.7) (0.1) (2.3) (159.1) Net income (loss) 469.4 2.1 (19.7) 2.1 0.2 (2.3) 451.8 Net income attributable to NCI (3.8) — — — — — (3.8) Net income (loss) attributable to Lithia Motors, Inc. $465.6 $2.1 $(19.7) $2.1 $0.2 $(2.3) $448.0 Diluted earnings (loss) per share attributable to Lithia Motors, Inc. $17.80 $0.08 $(0.76) $0.08 $0.01 $(0.09) $17.12 Diluted share count 26.2 (1) Investment losses (gains) retrospectively included in adjusted non-GAAP financial measures presented. Liquidity and Capital Resources We manage our liquidity and capital resources in the context of our overall business strategy, continually forecasting and managing our cash, working capital balances and capital structure in a way that we believe will meet the short- term and long-term obligations of our business while maintaining liquidity and financial flexibility. Our current free cash flow deployment strategy includes a target allocation of 25% to 35% investment in acquisitions, 25% investment in capital expenditures, innovation, and diversification and 40% to 50% in shareholder return in the form of dividends and share repurchases based on current valuation trends in acquisitions relative to stock price performance. We believe we have sufficient sources of funding to meet our business requirements for the next 12 months and in the longer term. Cash flows from operations and borrowings under our credit facilities are our main sources for liquidity. In addition to the above sources of liquidity, potential sources to fund our business strategy include MANAGEMENT’S DISCUSSION AND ANALYSIS 37 Table of Contents financing of real estate and proceeds from debt or equity offerings. We evaluate all of these options and may select one or more of them depending on overall capital needs and the availability and cost of capital, although no assurances can be provided that these capital sources will be available in sufficient amounts or with terms acceptable to us. Available Sources Below is a summary of our immediately available funds: ($ in millions) June 30, 2026 December 31, 2025 Change % Change Cash and cash equivalents $110.3 $109.2 $1.1 1.0% Marketable securities 67.0 56.4 10.6 18.8 Available credit on credit facilities 1,090.2 1,359.2 (269.0) (19.8) Total current available funds $1,267.5 $1,524.8 $(257.3) (16.9)% Information about our cash flows, by category, is presented in our Consolidated Statements of Cash Flows. The following table summarizes our cash flows: Six Months Ended June 30, Change (In millions) 2026 2025 in Cash Flow Net cash (used in) provided by operating activities $(174.1) $331.4 $(505.5) Net cash used in investing activities (351.8) (315.5) (36.3) Net cash provided by (used in) financing activities 555.1 (13.5) 568.6 Operating Activities Cash used in operating activities for the six months ended June 30, 2026 decreased $505.5 million compared to the same period of 2025, primarily related to changes in inventories, net income, and finance receivables, partially offset by changes in trade payables, unrealized investment loss, and other assets 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: Six Months Ended June 30, Change (In millions) 2026 2025 in Cash Flow Net cash (used in) provided by operating activities – as reported $(174.1) $331.4 $(505.5) Adjust: Net borrowings (repayments) on floor plan notes payable, non-trade(1) 1,409.2 (141.2) 1,550.4 Less: Borrowings on floor plan notes payable, non-trade associated with acquired vehicle inventory (21.8) (45.6) 23.8 Adjust: Finance receivables activity 534.5 432.1 102.4 Net cash provided by operating activities – adjusted $1,747.8 $576.7 $1,171.1 (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. MANAGEMENT’S DISCUSSION AND ANALYSIS 38 Table of Contents Investing Activities Net cash used in investing activities totaled $351.8 million and $315.5 million, respectively, for the six months ended June 30, 2026 and 2025. Below are highlights of significant activity related to our cash flows from investing activities: Six Months Ended June 30, Change (In millions) 2026 2025 in Cash Flow Capital expenditures $(153.4) $(148.8) $(4.6) Cash paid for acquisitions, net of cash acquired (221.7) (278.6) 56.9 Proceeds from sales of stores 21.0 104.4 (83.4) Capital Expenditures Below is a summary of our capital expenditure activities ($ in millions): 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. Capital expenditures for the six months ended June 30, 2026, compared to the same period of 2025 were higher for existing facility purchases, maintenance, existing operations improvements and information technology, and lower for new operations purchases and improvements. 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. MANAGEMENT’S DISCUSSION AND ANALYSIS 39 Table of Contents Adjusted net cash paid for acquisitions, a non-GAAP measure, as well as certain other acquisition-related information is presented below: Six Months Ended June 30, ($ in millions) 2026 2025 Number of locations acquired 10 4 Number of stores opened 5 — Cash paid for acquisitions, net of cash acquired $(221.7) $(278.6) Add: Borrowings on floor plan notes payable: non-trade associated with acquired new vehicle inventory 21.8 45.6 Cash paid for acquisitions, net of cash acquired – adjusted $(199.9) $(233.0) We evaluate potential capital investments primarily based on targeted rates of return on assets and return on our net equity investment. MANAGEMENT’S DISCUSSION AND ANALYSIS 40 Table of Contents Financing Activities Adjusted net cash 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: Six Months Ended June 30, Change (In millions) 2026 2025 in Cash Flow Cash provided by (used in) financing activities, as reported $555.1 $(13.5) $568.6 Less: Net (borrowings) repayments on floor plan notes payable: non-trade (1) (1,409.2) 141.2 (1,550.4) Less: Net borrowings on non-recourse notes payable (267.4) 67.4 (334.8) Cash (used in) provided by financing activities, as adjusted $(1,121.5) $195.1 $(1,316.6) (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: Six Months Ended June 30, Change (In millions) 2026 2025 in Cash Flow Net (repayments) borrowings on lines of credit $(500.0) $587.6 $(1,087.6) Principal payments on non-recourse notes payable (790.3) (631.4) (158.9) Proceeds from the issuance of non-recourse notes payable 1,057.7 564.0 493.7 Repurchase of common stock (534.0) (263.3) (270.7) Equity Transactions Our Board has approved share repurchase authorizations totaling up to $3.7 billion of our common stock. We repurchased a total of 1,910,777 shares of our common stock at an average price of $282.28 in the first six months of 2026, consisting of 115,286 related to tax withholding on vesting RSUs, and 1,795,491 related to our repurchase authorizations. As of June 30, 2026, we had $620.5 million remaining available for repurchases and the authorizations do not have expiration dates. In the first six months of 2026, we declared and paid dividends on our common stock as follows: Dividend paid: Dividend amountper share Total amount of dividend(in millions) March 2026 $0.55 $12.8 May 2026 $0.57 $12.9 We evaluate performance and make a recommendation to the Board on dividend payments on a quarterly basis. MANAGEMENT’S DISCUSSION AND ANALYSIS 41 Table of Contents 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 June 30, 2026 (In millions) Outstanding Remaining Available Floor plan note payable: non-trade $4,401.2 $— (1) Floor plan notes payable 1,986.2 — Daily rental vehicle inventory financing commitments 3.5 0.5 (2) Revolving lines of credit 1,889.8 1,057.5 (2), (3) Warehouse facilities 1,459.0 32.2 Non-recourse notes payable 2,741.4 — 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 1,106.7 — Unamortized debt issuance costs (25.1) — (4) Total debt 15,912.7 $1,090.2 Less: Inventory related debt (6,390.9) Less: Financing operations related debt (4,200.4) Less: Unrestricted cash and cash equivalents (110.3) Less: Marketable securities (67.0) Less: Availability on used and service loaner financing facilities (0.5) Net debt(5) $5,143.6 (1)As of June 30, 2026, we had a $2.7 billion new 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 May 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. 42 Table of Contents