One of the world's largest car retailers, this company runs hundreds of dealership showrooms across the U.S., U.K., and Canada, alongside online marketplaces Driveway and GreenCars and its own captive finance arm. It began in 1946 as a single Chrysler-Plymouth-Dodge store in Ashland, Oregon, named after the town's lithium-rich mineral springs. In its first year it sold just 14 cars—a far cry from the sprawling empire it is today.
Q2 2026 net income rose 1.5% to $260.0M as financing income offset new vehicle margin compression
rebounded to $260.0M after the Q1 drop to $100.4M. rose 2.2% to $9,791.3M and rose 16.9% to $11.54 as financing operations income increased to $36.5M from $20.1M, while new vehicle fell 9.4% on margin normalization. The quarter shows profitability recovering, but stayed negative at -$65.7M.
Key takeaways
rose 1.5% to $260.0M and rose 16.9% to $11.54 , after falling to $100.4M in Q1 2026 on equity investment losses that did not repeat at the same scale this quarter.
Financing operations income increased to $36.5M from $20.1M a year earlier, driven by portfolio growth and lower cost of funds with interest margin at 4.8%, cushioning the vehicle-margin decline.
New vehicle fell 9.4% to $284M as margins compressed 80 to 5.9%, continuing normalization from pandemic highs; new vehicle dropped 11.1%.
Section summaries
Management's Discussion and Analysis
Revenue grew 2.2% in Q2 2026 driven by acquisitions, but net income declined due to higher SG&A and equity method investment losses.
⌄
Total increased 2.2% to $9.8 billion in Q2 2026, with aftersales up 3.9% and used vehicle retail up 1.4%, both aided by acquisitions.
rose 2.2% to $9,791.3M, up 5.6% from Q1, with aftersales up 3.9% and used vehicle retail up 1.4%, both aided by acquisitions; total declined 2.7%.
as a percentage of rose to 67.8% (68.6% adjusted ), as expense growth outpaced gross profit growth, versus 68.3% in Q2 2025.
The company repurchased $534M of shares in H1 2026 and held $1.3B available liquidity; was -$65.7M and was -$122.0M.
What changed
losses flagged after Q1's $63.9M increase tied to Pinewood Technologies fair value changes did not drive a comparable Q2 hit, with recovering to $260.0M from $100.4M.
as a percentage of against the 73.0% Q1 level fell to 67.8% as the $20.3M one-time contract buyout rolled off, though still above Q2 2025's 68.3% adjusted basis of 68.6%.
after the -$108.4M Q1 print was -$65.7M in Q2, remaining negative as investment continued to weigh on liquidity.
Used vehicle retail remained undisclosed, absent since FY2024's $1,769, contrary to the prior flag to disclose it in the next filing.
New vehicle compression continued, with Q2's 11.1% drop following the 8.5% 2025 decline, showing normalization has not stabilized.
What to watch
New vehicle next quarter after the 11.1% Q2 drop to see if past 80bps stabilizes or continues.
Used vehicle retail disclosure, still absent since FY2024's $1,769, in the Q3 2026 filing.
in Q3 2026 after the -$65.7M Q2 print as investment moves.
Pace of share repurchases versus acquisitions after $534M H1 against the 40-50% return target.
New vehicle fell 9.4% to $284 million as margins compressed 80 to 5.9%, reflecting continued normalization.
Same-store total declined 2.7%, with new vehicle gross profit per unit down 11.1% and finance and insurance down 5.2%.
as a percentage of rose to 67.8% (or 68.6% on an adjusted same-store basis), as expense growth outpaced gross profit growth.
Financing operations income increased to $36.5 million from $20.1 million, driven by portfolio growth and lower cost of funds, expanding interest margin to 4.8%.
The company repurchased $534 million of shares in H1 2026 and had $1.3 billion in available liquidity at quarter-end, with a strategy targeting 40-50% shareholder returns.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes in our reported market risks or risk management policies since the filing of our 2025 Annual Report on Form 10-K, which was filed with the SEC on February 25, 2026.
⌄
There have been no material changes in our reported market risks or risk management policies since the filing of
our 2025 Annual Report on Form 10-K, which was filed with the SEC on February 25, 2026.
We are party to numerous legal proceedings arising in the normal course of our business. Although we do not anticipate that the resolution of legal proceedings arising in the normal course of business will have a material adverse effect on our business, results of operations, fi…
⌄
We are party to numerous legal proceedings arising in the normal course of our business. Although we do not
anticipate that the resolution of legal proceedings arising in the normal course of business will have a material
adverse effect on our business, results of operations, financial condition, or cash flows, we cannot predict this with
certainty.
The information in this Form 10-Q should be read in conjunction with the risk factors and information disclosed in our 2025 Annual Report on Form 10-K, which was filed with the SEC on February 25, 2026. We have described in our 2025 Annual Report on Form 10-K, under Risk Factors…
⌄
The information in this Form 10-Q should be read in conjunction with the risk factors and information disclosed in
our 2025 Annual Report on Form 10-K, which was filed with the SEC on February 25, 2026. We have described in
our 2025 Annual Report on Form 10-K, under Risk Factors in Item 1A, the primary risks related to our business and
securities.