The following discussion should be read in conjunction with the Unaudited Condensed Consolidated Financial Statements and notes thereto included under Part I, Item 1 of this Quarterly Report on Form 10-Q. In addition, reference should be made to our audited Consolidated Financial Statements and notes thereto and related “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our most recent Annual Report on Form 10-K. Certain reclassifications of amounts previously reported have been made to the accompanying Unaudited Condensed Consolidated Financial Statements in order to maintain consistency and comparability between periods presented. Overview AutoNation, Inc., through its subsidiaries, is one of the largest automotive retailers in the United States. As of June 30, 2026, we owned and operated 327 new vehicle franchises from 246 stores located in the United States, predominantly in major metropolitan markets in the Sunbelt region. Our stores, which we believe include some of the most recognizable and well known in our key markets, sell 30 different new vehicle brands. The major brands of new vehicles that we sell, representing approximately 88% of the new vehicles that we sold during the six months ended June 30, 2026, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, BMW, Mercedes-Benz, Stellantis, and Volkswagen (including Audi and Porsche). As of June 30, 2026, we also owned and operated 52 AutoNation-branded collision centers, 24 AutoNation USA stores, 4 AutoNation-branded automotive auction operations, 3 parts distribution centers, and an auto finance company. We offer a diversified range of automotive products and services, including new vehicles, used vehicles, “parts and service” (also referred to as “After-Sales”), which includes in-store and mobile automotive repair and maintenance services as well as wholesale parts and collision businesses, and automotive “finance and insurance” products (also referred to as “Customer Financial Services”), which include vehicle service and other protection products, as well as the arranging of financing for vehicle purchases through third-party finance sources. We also offer indirect financing through our captive finance company on vehicles we sell. At June 30, 2026, we had four reportable segments: (1) Domestic, (2) Import, (3) Premium Luxury, and (4) AutoNation Finance. Our Domestic segment is comprised of retail automotive franchises that sell new vehicles manufactured by Ford, General Motors, and Stellantis. Our Import segment is primarily comprised of retail automotive franchises that sell new vehicles manufactured by Toyota, Honda, Hyundai, and Subaru. Our Premium Luxury segment is primarily comprised of retail automotive franchises that sell new vehicles manufactured by Mercedes-Benz, BMW, Lexus, Audi, and Jaguar Land Rover. The franchises in each of our Domestic, Import, and Premium Luxury segments also sell used vehicles, parts and automotive services, and automotive finance and insurance products. AutoNation Finance is our captive auto finance company, which provides indirect financing to qualified retail customers on vehicles we sell. For the six months ended June 30, 2026, new vehicle sales accounted for 47% of our total revenue and 12% of our total gross profit. Used vehicle sales accounted for 29% of our total revenue and 10% of our total gross profit. Our parts and service operations, while comprising 18% of our total revenue, contributed 49% of our total gross profit. Our finance and insurance sales, while comprising 5% of our total revenue, contributed 29% of our total gross profit. Market Conditions In the second quarter of 2026, U.S. industry retail new vehicle unit sales, which includes sales in markets in which we do not compete, was relatively flat, with a decrease in April offset by increases in May and June, as compared to the same periods in the second quarter of 2025. New vehicle unit sales benefited from accelerated consumer demand in April 2025 following tariff-related announcements, and consumer demand and industry new vehicle unit sales stabilized in the later part of the second quarter of 2025. Results of Operations During the three months ended June 30, 2026, we had net income of $182.1 million and diluted earnings per share of $5.39, as compared to net income of $86.4 million and diluted earnings per share of $2.26 during the same period in 2025. Our total gross profit decreased 3% during the second quarter of 2026, compared to the same period in the prior year, driven by decreases in new vehicle gross profit of 18%, used vehicle gross profit of 8%, and finance and insurance gross profit of 3%, partially offset by an increase in parts and service gross profit of 1%, each as compared to the second quarter of 2025. New vehicle gross profit was adversely impacted by a decrease in new vehicle unit volume as the prior year benefited from accelerated consumer demand following tariff-related announcements in April 2025 and a decrease in electric vehicle (“EV”) 32 Table of Contents unit volume in the current year period due in part to the phasing out of EV tax credits at the end of the third quarter of 2025, as well as a decrease in gross profit per vehicle retailed (“PVR”) resulting from higher average vehicle costs. Used vehicle gross profit was adversely impacted by a decrease in used vehicle retail unit volume primarily due to supply constraints on lower-priced used vehicles. Finance and insurance gross profit was adversely impacted by a decrease in vehicle unit volume, largely offset by an increase in finance and insurance gross profit PVR reflecting higher realized margins on vehicle service contracts and higher gross profit per transaction associated with arranging customer financing. Parts and service results benefited primarily from increases in gross profit associated with customer-pay service of 7% and wholesale parts sales of 9%. Net income for the three months ended June 30, 2026, was adversely impacted by after-tax asset impairments, net of gains on property and store dispositions, of $2.4 million and an after-tax net loss from operations of terminated stores of $3.3 million. Net income for the three months ended June 30, 2025, was adversely impacted by non-cash goodwill and franchise rights impairments and other asset adjustments totaling $122.8 million after-tax. Inventory Management Our new and used vehicle inventories are stated at the lower of cost or net realizable value in our Unaudited Condensed Consolidated Balance Sheets. We monitor our vehicle inventory levels based on current economic conditions and seasonal sales trends. Our new vehicle inventory units at June 30, 2026 and 2025, were 45,283 and 42,600, respectively. We have typically not experienced significant losses on the sale of new vehicle inventory, in part due to incentives provided by manufacturers to promote sales of new vehicles and our inventory management practices. We monitor our new vehicle inventory values as compared to net realizable values. Our new vehicle inventory was net of cumulative write-downs of $0.2 million at June 30, 2026, and $1.2 million at December 31, 2025. Our used vehicle inventory units at June 30, 2026 and 2025, were 34,777 and 35,802, respectively. We recondition the majority of used vehicles acquired for retail sale in our parts and service departments and capitalize the related costs to the used vehicle inventory. We monitor our used vehicle inventory values as compared to net realizable values. Typically, used vehicles that are not sold on a retail basis are sold at wholesale auctions. Our used vehicle inventory balance was net of cumulative write-downs of $5.7 million at June 30, 2026, and $5.8 million at December 31, 2025. Parts, accessories, and other inventory are carried at the lower of cost or net realizable value. We estimate the amount of potentially damaged and/or excess and obsolete inventory based upon historical experience, manufacturer return policies, and industry trends. Our parts, accessories, and other inventory balance was net of cumulative write-downs of $9.0 million at June 30, 2026, and $9.5 million at December 31, 2025. Critical Accounting Estimates We prepare our Unaudited Condensed Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (“GAAP”), which require us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. We evaluate our estimates on an ongoing basis, and we base our estimates on historical experience and various other assumptions we believe to be reasonable. Actual outcomes could differ materially from those estimates in a manner that could have a material effect on our Unaudited Condensed Consolidated Financial Statements. For additional discussion of our critical accounting estimates, please see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent Annual Report on Form 10-K. Goodwill Goodwill for our reporting units is tested for impairment annually as of April 30 or more frequently when events or changes in circumstances indicate that the carrying value of a reporting unit more likely than not exceeds its fair value. Under accounting standards, we chose to make a qualitative evaluation about the likelihood of goodwill impairment as of April 30, 2026, for our Domestic, Import, Premium Luxury, AutoNation Finance, and Collision Center reporting units and determined that it was not more likely than not that the fair values of these reporting units were less than their carrying amounts. For our Mobile Service reporting unit, we elected to perform a quantitative goodwill impairment test as of April 30, 2026, and no impairment charges resulted from this quantitative test. The fair value of the Mobile Service reporting unit substantially exceeded its carrying value as of April 30, 2026. The quantitative goodwill impairment test is dependent on many variables used to determine the fair value of a reporting unit. See Note 15 of the Notes to Unaudited Condensed Consolidated Financial 33 Table of Contents Statements for additional information on how the fair values and carrying values of our reporting units are derived for the quantitative goodwill impairment test. As of June 30, 2026, we have $221.5 million of goodwill related to the Domestic reporting unit, $538.5 million related to the Import reporting unit, $504.6 million related to the Premium Luxury reporting unit, $75.2 million related to the Mobile Service reporting unit, $78.4 million related to the AutoNation Finance reporting unit, and $4.6 million related to the Collision Center reporting unit. Other Intangible Assets Our principal identifiable intangible assets are individual store rights under franchise agreements with vehicle manufacturers, which have indefinite lives and are tested for impairment annually as of April 30 or more frequently when events or changes in circumstances indicate that impairment may have occurred. We may first perform a qualitative assessment to determine whether it is more likely than not that a franchise right asset is impaired. We elected to perform quantitative franchise rights impairment tests for our annual impairment tests as of April 30, 2026, and no impairment charges resulted from these quantitative tests. We identified 16 stores that, while they each had franchise rights fair value in excess of carrying value, had lower relative performance compared to our total store population. We will continue to monitor these stores, as well as all stores, for events or changes in circumstances that may indicate potential impairment. The remainder of our stores had franchise rights with calculated fair values that substantially exceeded their carrying values. The quantitative franchise rights impairment test is dependent on many variables used to determine the fair value of each store’s franchise rights. See Note 15 of the Notes to Unaudited Condensed Consolidated Financial Statements for a description of the valuation method and related estimates and assumptions used in our quantitative impairment testing. Based on sensitivity analyses of these estimates and assumptions, including if the fair value of each of our franchise rights had been determined to be a hypothetical 10% lower as of the valuation date, the resulting hypothetical impairment charge would have been between $3 million and $4 million. The sensitivity analyses performed are not intended to provide an estimate for every potential outcome. As of June 30, 2026, we had 79 stores with franchise rights totaling $1.2 billion. 34 Table of Contents Reported Operating Data Historical operating results include the results of acquired businesses from the date of acquisition. ($ in millions, except per vehicle data) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 Variance Favorable / (Unfavorable) % Variance 2026 2025 Variance Favorable / (Unfavorable) % Variance Revenue: New vehicle $ 3,292.7 $ 3,396.3 $ (103.6) (3.1) $ 6,303.7 $ 6,644.4 $ (340.7) (5.1) Retail used vehicle 1,850.1 1,845.0 5.1 0.3 3,669.7 3,637.1 32.6 0.9 Wholesale 161.3 140.0 21.3 15.2 305.5 270.3 35.2 13.0 Used vehicle 2,011.4 1,985.0 26.4 1.3 3,975.2 3,907.4 67.8 1.7 Finance and insurance, net 357.6 367.7 (10.1) (2.7) 709.6 720.2 (10.6) (1.5) Total variable operations(1) 5,661.7 5,749.0 (87.3) (1.5) 10,988.5 11,272.0 (283.5) (2.5) Parts and service 1,263.0 1,221.1 41.9 3.4 2,483.9 2,385.1 98.8 4.1 Other 5.1 4.3 0.8 9.5 7.7 1.8 Total revenue $ 6,929.8 $ 6,974.4 $ (44.6) (0.6) $ 13,481.9 $ 13,664.8 $ (182.9) (1.3) Gross profit: New vehicle $ 150.6 $ 183.4 $ (32.8) (17.9) $ 295.1 $ 358.3 $ (63.2) (17.6) Retail used vehicle 102.1 113.1 (11.0) (9.7) 207.0 226.1 (19.1) (8.4) Wholesale 13.0 12.3 0.7 29.5 23.8 5.7 Used vehicle 115.1 125.4 (10.3) (8.2) 236.5 249.9 (13.4) (5.4) Finance and insurance 357.6 367.7 (10.1) (2.7) 709.6 720.2 (10.6) (1.5) Total variable operations(1) 623.3 676.5 (53.2) (7.9) 1,241.2 1,328.4 (87.2) (6.6) Parts and service 607.1 598.6 8.5 1.4 1,200.5 1,166.3 34.2 2.9 Other 0.7 0.3 0.4 0.5 0.6 (0.1) Total gross profit 1,231.1 1,275.4 (44.3) (3.5) 2,442.2 2,495.3 (53.1) (2.1) AutoNation Finance income 10.7 2.0 8.7 20.1 2.1 18.0 Selling, general, and administrative expenses 856.3 854.7 (1.6) (0.2) 1,698.5 1,676.6 (21.9) (1.3) Depreciation and amortization 63.5 63.9 0.4 126.5 125.7 (0.8) Goodwill impairment — 65.3 65.3 — 65.3 65.3 Franchise rights impairment — 71.7 71.7 — 71.7 71.7 Other expense, net 3.0 4.2 1.2 4.0 4.5 0.5 Operating income 319.0 217.6 101.4 46.6 633.3 553.6 79.7 14.4 Non-operating income (expense) items: Floorplan interest expense (43.7) (45.3) 1.6 (85.5) (91.8) 6.3 Other interest expense (49.9) (46.2) (3.7) (97.9) (88.5) (9.4) Other income (loss), net 18.4 12.3 6.1 69.6 (0.9) 70.5 Income before income taxes $ 243.8 $ 138.4 $ 105.4 76.2 $ 519.5 $ 372.4 $ 147.1 39.5 Retail vehicle unit sales: New vehicle 63,240 65,847 (2,607) (4.0) 120,722 128,234 (7,512) (5.9) Used vehicle 64,521 69,736 (5,215) (7.5) 130,339 137,736 (7,397) (5.4) 127,761 135,583 (7,822) (5.8) 251,061 265,970 (14,909) (5.6) Revenue per vehicle retailed: New vehicle $ 52,067 $ 51,579 $ 488 0.9 $ 52,217 $ 51,815 $ 402 0.8 Used vehicle $ 28,674 $ 26,457 $ 2,217 8.4 $ 28,155 $ 26,406 $ 1,749 6.6 Gross profit per vehicle retailed: New vehicle $ 2,381 $ 2,785 $ (404) (14.5) $ 2,444 $ 2,794 $ (350) (12.5) Used vehicle $ 1,582 $ 1,622 $ (40) (2.5) $ 1,588 $ 1,642 $ (54) (3.3) Finance and insurance $ 2,799 $ 2,712 $ 87 3.2 $ 2,826 $ 2,708 $ 118 4.4 Total variable operations(2) $ 4,777 $ 4,899 $ (122) (2.5) $ 4,826 $ 4,905 $ (79) (1.6) (1) Total variable operations includes new vehicle, used vehicle (retail and wholesale), and finance and insurance results. (2) Total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new vehicle, retail used vehicle, and finance and insurance gross profit by total retail vehicle unit sales. 35 Table of Contents Three Months Ended Six Months Ended June 30, June 30, 2026 (%) 2025 (%) 2026 (%) 2025 (%) Revenue mix percentages: New vehicle 47.5 48.7 46.8 48.6 Used vehicle 29.0 28.5 29.5 28.6 Parts and service 18.2 17.5 18.4 17.5 Finance and insurance, net 5.2 5.3 5.3 5.3 Other 0.1 — — — Total 100.0 100.0 100.0 100.0 Gross profit mix percentages: New vehicle 12.2 14.4 12.1 14.4 Used vehicle 9.3 9.8 9.7 10.0 Parts and service 49.3 46.9 49.1 46.7 Finance and insurance 29.0 28.8 29.1 28.9 Other 0.2 0.1 — — Total 100.0 100.0 100.0 100.0 Operating items as a percentage of revenue: Gross profit: New vehicle 4.6 5.4 4.7 5.4 Used vehicle - retail 5.5 6.1 5.6 6.2 Parts and service 48.1 49.0 48.3 48.9 Total 17.8 18.3 18.1 18.3 Selling, general, and administrative expenses 12.4 12.3 12.6 12.3 Operating income 4.6 3.1 4.7 4.1 Other operating items as a percentage of total gross profit: Selling, general, and administrative expenses 69.6 67.0 69.5 67.2 Operating income 25.9 17.1 25.9 22.2 June 30, 2026 2025 Inventory days supply: New vehicle (industry standard of selling days) 53 days 49 days Used vehicle (trailing calendar month days) 38 days 39 days 36 Table of Contents Same Store Operating Data We have presented below our operating results on a same store basis to reflect our internal performance. The “Same Store” amounts presented below include the results of our stores for the identical months in each period presented in the comparison, commencing with the first full month in which the store was owned by us. Results from divested stores are excluded from both current and prior periods. Therefore, the amounts presented in the 2025 column may differ from the same store amounts presented for 2025 in the prior year. We believe the presentation of this information provides a meaningful comparison of period-over-period results of our operations. Three Months Ended June 30, Six Months Ended June 30, ($ in millions, except per vehicle data) 2026 2025 Variance Favorable / (Unfavorable) % Variance 2026 2025 Variance Favorable / (Unfavorable) % Variance Revenue: New vehicle $ 3,246.3 $ 3,381.6 $ (135.3) (4.0) $ 6,191.9 $ 6,614.1 $ (422.2) (6.4) Retail used vehicle 1,814.7 1,827.2 (12.5) (0.7) 3,581.2 3,598.8 (17.6) (0.5) Wholesale 158.8 138.6 20.2 14.6 298.8 267.2 31.6 11.8 Used vehicle 1,973.5 1,965.8 7.7 0.4 3,880.0 3,866.0 14.0 0.4 Finance and insurance, net 351.6 365.4 (13.8) (3.8) 695.0 715.1 (20.1) (2.8) Total variable operations(1) 5,571.4 5,712.8 (141.4) (2.5) 10,766.9 11,195.2 (428.3) (3.8) Parts and service 1,239.9 1,206.5 33.4 2.8 2,430.2 2,354.6 75.6 3.2 Other 5.2 4.2 1.0 9.6 7.6 2.0 Total revenue $ 6,816.5 $ 6,923.5 $ (107.0) (1.5) $ 13,206.7 $ 13,557.4 $ (350.7) (2.6) Gross profit: New vehicle $ 147.3 $ 182.9 $ (35.6) (19.5) $ 288.6 $ 357.3 $ (68.7) (19.2) Retail used vehicle 100.7 111.9 (11.2) (10.0) 203.8 224.0 (20.2) (9.0) Wholesale 13.3 12.6 0.7 29.8 24.3 5.5 Used vehicle 114.0 124.5 (10.5) (8.4) 233.6 248.3 (14.7) (5.9) Finance and insurance 351.6 365.4 (13.8) (3.8) 695.0 715.1 (20.1) (2.8) Total variable operations(1) 612.9 672.8 (59.9) (8.9) 1,217.2 1,320.7 (103.5) (7.8) Parts and service 594.0 593.5 0.5 0.1 1,170.6 1,155.4 15.2 1.3 Other 0.7 0.2 0.5 0.6 0.8 (0.2) Total gross profit $ 1,207.6 $ 1,266.5 $ (58.9) (4.7) $ 2,388.4 $ 2,476.9 $ (88.5) (3.6) Retail vehicle unit sales: New vehicle 62,435 65,533 (3,098) (4.7) 118,682 127,598 (8,916) (7.0) Used vehicle 63,428 68,917 (5,489) (8.0) 127,312 135,982 (8,670) (6.4) 125,863 134,450 (8,587) (6.4) 245,994 263,580 (17,586) (6.7) Revenue per vehicle retailed: New vehicle $ 51,995 $ 51,601 $ 394 0.8 $ 52,172 $ 51,835 $ 337 0.7 Used vehicle $ 28,610 $ 26,513 $ 2,097 7.9 $ 28,129 $ 26,465 $ 1,664 6.3 Gross profit per vehicle retailed: New vehicle $ 2,359 $ 2,791 $ (432) (15.5) $ 2,432 $ 2,800 $ (368) (13.1) Used vehicle $ 1,588 $ 1,624 $ (36) (2.2) $ 1,601 $ 1,647 $ (46) (2.8) Finance and insurance $ 2,794 $ 2,718 $ 76 2.8 $ 2,825 $ 2,713 $ 112 4.1 Total variable operations(2) $ 4,764 $ 4,910 $ (146) (3.0) $ 4,827 $ 4,918 $ (91) (1.9) (1) Total variable operations includes new vehicle, used vehicle (retail and wholesale), and finance and insurance results. (2) Total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new vehicle, retail used vehicle, and finance and insurance gross profit by total retail vehicle unit sales. 37 Table of Contents Three Months Ended Six Months Ended June 30, June 30, 2026 (%) 2025 (%) 2026 (%) 2025 (%) Revenue mix percentages: New vehicle 47.6 48.8 46.9 48.8 Used vehicle 29.0 28.4 29.4 28.5 Parts and service 18.2 17.4 18.4 17.4 Finance and insurance, net 5.2 5.3 5.3 5.3 Other — 0.1 — — Total 100.0 100.0 100.0 100.0 Gross profit mix percentages: New vehicle 12.2 14.4 12.1 14.4 Used vehicle 9.4 9.8 9.8 10.0 Parts and service 49.2 46.9 49.0 46.6 Finance and insurance 29.1 28.9 29.1 28.9 Other 0.1 — — 0.1 Total 100.0 100.0 100.0 100.0 Operating items as a percentage of revenue: Gross profit: New vehicle 4.5 5.4 4.7 5.4 Used vehicle - retail 5.5 6.1 5.7 6.2 Parts and service 47.9 49.2 48.2 49.1 Total 17.7 18.3 18.1 18.3 The following discussions of new vehicle, used vehicle, parts and service, and finance and insurance results are on a same store basis. The differences between reported amounts and same store amounts in revenue and gross profit of these lines of business in the tables below are related to acquisition and divestiture activity, as well as the opening of AutoNation USA used vehicle stores, as applicable. 38 Table of Contents New Vehicle Three Months Ended June 30, Six Months Ended June 30, ($ in millions, except per vehicle data) 2026 2025 Variance Favorable / (Unfavorable) % Variance 2026 2025 Variance Favorable / (Unfavorable) % Variance Reported: Revenue $ 3,292.7 $ 3,396.3 $ (103.6) (3.1) $ 6,303.7 $ 6,644.4 $ (340.7) (5.1) Gross profit $ 150.6 $ 183.4 $ (32.8) (17.9) $ 295.1 $ 358.3 $ (63.2) (17.6) Retail vehicle unit sales 63,240 65,847 (2,607) (4.0) 120,722 128,234 (7,512) (5.9) Revenue per vehicle retailed $ 52,067 $ 51,579 $ 488 0.9 $ 52,217 $ 51,815 $ 402 0.8 Gross profit per vehicle retailed $ 2,381 $ 2,785 $ (404) (14.5) $ 2,444 $ 2,794 $ (350) (12.5) Gross profit as a percentage of revenue 4.6% 5.4% 4.7% 5.4% Inventory days supply (industry standard of selling days) 53 days 49 days Three Months Ended June 30, Six Months Ended June 30, 2026 2025 Variance Favorable / (Unfavorable) % Variance 2026 2025 Variance Favorable / (Unfavorable) % Variance Same Store: Revenue $ 3,246.3 $ 3,381.6 $ (135.3) (4.0) $ 6,191.9 $ 6,614.1 $ (422.2) (6.4) Gross profit $ 147.3 $ 182.9 $ (35.6) (19.5) $ 288.6 $ 357.3 $ (68.7) (19.2) Retail vehicle unit sales 62,435 65,533 (3,098) (4.7) 118,682 127,598 (8,916) (7.0) Revenue per vehicle retailed $ 51,995 $ 51,601 $ 394 0.8 $ 52,172 $ 51,835 $ 337 0.7 Gross profit per vehicle retailed $ 2,359 $ 2,791 $ (432) (15.5) $ 2,432 $ 2,800 $ (368) (13.1) Gross profit as a percentage of revenue 4.5% 5.4% 4.7% 5.4% Second Quarter 2026 compared to Second Quarter 2025 Same store new vehicle revenue decreased during the three months ended June 30, 2026, as compared to the same period in 2025, primarily due to a decrease in same store unit volume, particularly in the Domestic and Premium Luxury segments, largely as a result of the prior year period benefiting from accelerated consumer demand in April 2025 following tariff-related announcements and a decrease in EV unit volume in the current year period due in part to the phasing out of EV tax credits at the end of the third quarter of 2025. Same store new vehicle gross profit PVR decreased during the three months ended June 30, 2026, as compared to the same period in 2025, reflecting an increase in average vehicle costs across all franchised dealership segments due in part to a decrease in manufacturer incentives. First Six Months 2026 compared to First Six Months 2025 Same store new vehicle revenue decreased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to a decrease in same store unit volume largely as a result of the prior year period benefiting from accelerated consumer demand in the later part of March 2025 into April 2025 following tariff-related announcements and a decrease in EV unit volume in the current year period due in part to the phasing out of EV tax credits at the end of the third quarter of 2025. Same store new vehicle gross profit PVR decreased during the six months ended June 30, 2026, as compared to the same period in 2025, reflecting an increase in average vehicle costs across all franchised dealership segments due in part to a decrease in manufacturer incentives. 39 Table of Contents New Vehicle Inventory Carrying Expense The following table details net new vehicle inventory carrying expense, consisting of new vehicle floorplan interest expense, net of floorplan assistance earned (amounts received from manufacturers specifically to support store financing of new vehicle inventory). Floorplan interest rates are variable and, therefore, increase and decrease with changes in the underlying benchmark rates. See Note 7 of the Notes to Unaudited Condensed Consolidated Financial Statements for more information. Floorplan assistance is based on a percentage of the manufacturer’s suggested retail price or a flat rate per vehicle and is accounted for as a component of new vehicle gross profit when the related vehicle is sold, in accordance with GAAP. Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2026 2025 Variance 2026 2025 Variance Floorplan assistance $ 33.9 $ 34.7 $ (0.8) $ 64.3 $ 65.8 $ (1.5) New vehicle floorplan interest expense (42.0) (43.6) 1.6 (82.0) (87.6) 5.6 Net new vehicle inventory carrying expense $ (8.1) $ (8.9) $ 0.8 $ (17.7) $ (21.8) $ 4.1 Second Quarter 2026 compared to Second Quarter 2025 The net new vehicle inventory carrying expense decreased during the three months ended June 30, 2026, as compared to the same period in 2025, primarily due to a decrease in floorplan interest expense, partially offset by a decrease in floorplan assistance. Floorplan interest expense decreased as a result of lower average interest rates, partially offset by higher average vehicle floorplan balances. Floorplan assistance decreased due to lower new vehicle sales, partially offset by an increase in the average floorplan assistance per unit. First Six Months 2026 compared to First Six Months 2025 The net new vehicle inventory carrying expense decreased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to a decrease in floorplan interest expense, partially offset by a decrease in floorplan assistance. Floorplan interest expense decreased as a result of lower average interest rates, partially offset by higher average vehicle floorplan balances. Floorplan assistance decreased due to lower new vehicle sales, partially offset by an increase in the average floorplan assistance per unit. 40 Table of Contents Used Vehicle Three Months Ended June 30, Six Months Ended June 30, ($ in millions, except per vehicle data) 2026 2025 Variance Favorable / (Unfavorable) % Variance 2026 2025 Variance Favorable / (Unfavorable) % Variance Reported: Retail revenue $ 1,850.1 $ 1,845.0 $ 5.1 0.3 $ 3,669.7 $ 3,637.1 $ 32.6 0.9 Wholesale revenue 161.3 140.0 21.3 15.2 305.5 270.3 35.2 13.0 Total revenue $ 2,011.4 $ 1,985.0 $ 26.4 1.3 $ 3,975.2 $ 3,907.4 $ 67.8 1.7 Retail gross profit $ 102.1 $ 113.1 $ (11.0) (9.7) $ 207.0 $ 226.1 $ (19.1) (8.4) Wholesale gross profit 13.0 12.3 0.7 29.5 23.8 5.7 Total gross profit $ 115.1 $ 125.4 $ (10.3) (8.2) $ 236.5 $ 249.9 $ (13.4) (5.4) Retail vehicle unit sales 64,521 69,736 (5,215) (7.5) 130,339 137,736 (7,397) (5.4) Revenue per vehicle retailed $ 28,674 $ 26,457 $ 2,217 8.4 $ 28,155 $ 26,406 $ 1,749 6.6 Gross profit per vehicle retailed $ 1,582 $ 1,622 $ (40) (2.5) $ 1,588 $ 1,642 $ (54) (3.3) Retail gross profit as a percentage of retail revenue 5.5% 6.1% 5.6% 6.2% Inventory days supply (trailing calendar month days) 38 days 39 days Three Months Ended June 30, Six Months Ended June 30, 2026 2025 Variance Favorable / (Unfavorable) % Variance 2026 2025 Variance Favorable / (Unfavorable) % Variance Same Store: Retail revenue $ 1,814.7 $ 1,827.2 $ (12.5) (0.7) $ 3,581.2 $ 3,598.8 $ (17.6) (0.5) Wholesale revenue 158.8 138.6 20.2 14.6 298.8 267.2 31.6 11.8 Total revenue $ 1,973.5 $ 1,965.8 $ 7.7 0.4 $ 3,880.0 $ 3,866.0 $ 14.0 0.4 Retail gross profit $ 100.7 $ 111.9 $ (11.2) (10.0) $ 203.8 $ 224.0 $ (20.2) (9.0) Wholesale gross profit 13.3 12.6 0.7 29.8 24.3 5.5 Total gross profit $ 114.0 $ 124.5 $ (10.5) (8.4) $ 233.6 $ 248.3 $ (14.7) (5.9) Retail vehicle unit sales 63,428 68,917 (5,489) (8.0) 127,312 135,982 (8,670) (6.4) Revenue per vehicle retailed $ 28,610 $ 26,513 $ 2,097 7.9 $ 28,129 $ 26,465 $ 1,664 6.3 Gross profit per vehicle retailed $ 1,588 $ 1,624 $ (36) (2.2) $ 1,601 $ 1,647 $ (46) (2.8) Retail gross profit as a percentage of retail revenue 5.5% 6.1% 5.7% 6.2% Second Quarter 2026 compared to Second Quarter 2025 Same store retail used vehicle revenue was relatively flat during the three months ended June 30, 2026, as compared to the same period in 2025, reflecting a decrease in same store retail unit volume primarily due to supply constraints on lower-priced used vehicles, largely offset by an increase in same store revenue PVR. Same store used vehicle revenue PVR increased during the three months ended June 30, 2026, as compared to the same period in 2025, reflecting an increase in the average selling price of used vehicles across all franchised dealership segments primarily due to a 3% shift in mix to higher-priced vehicles including late-model and lower-mileage used vehicles. Same store used vehicle gross profit PVR decreased during the three months ended June 30, 2026, as compared to the same period in 2025, primarily due to an increase in acquisition costs in the Domestic and Premium Luxury segments, reflecting a competitive vehicle sourcing market. 41 Table of Contents First Six Months 2026 compared to First Six Months 2025 Same store retail used vehicle revenue was relatively flat during the six months ended June 30, 2026, as compared to the same period in 2025, reflecting a decrease in same store retail unit volume primarily due to supply constraints on lower-priced used vehicles, largely offset by an increase in same store revenue PVR. Same store used vehicle revenue PVR increased during the six months ended June 30, 2026, as compared to the same period in 2025, reflecting an increase in the average selling price of used vehicles across all franchised dealership segments primarily due to a 3% shift in mix to higher-priced vehicles including late-model and lower-mileage used vehicles. Same store used vehicle gross profit PVR decreased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to an increase in acquisition costs in the Domestic and Premium Luxury segments, reflecting a competitive vehicle sourcing market. 42 Table of Contents Parts and Service Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2026 2025 Variance Favorable / (Unfavorable) % Variance 2026 2025 Variance Favorable / (Unfavorable) % Variance Reported: Revenue $ 1,263.0 $ 1,221.1 $ 41.9 3.4 $ 2,483.9 $ 2,385.1 $ 98.8 4.1 Gross Profit $ 607.1 $ 598.6 $ 8.5 1.4 $ 1,200.5 $ 1,166.3 $ 34.2 2.9 Gross profit as a percentage of revenue 48.1% 49.0% 48.3% 48.9% Same Store: Revenue $ 1,239.9 $ 1,206.5 $ 33.4 2.8 $ 2,430.2 $ 2,354.6 $ 75.6 3.2 Gross Profit $ 594.0 $ 593.5 $ 0.5 0.1 $ 1,170.6 $ 1,155.4 $ 15.2 1.3 Gross profit as a percentage of revenue 47.9% 49.2% 48.2% 49.1% Parts and service revenue is primarily derived from vehicle repairs and maintenance paid directly by customers or via reimbursement from manufacturers and others under warranty programs, as well as from wholesale parts sales, the preparation of vehicles for sale, and collision services. Second Quarter 2026 compared to Second Quarter 2025 Same store parts and service revenue increased during the three months ended June 30, 2026, as compared to the same period in 2025, primarily due to increases in revenue associated with wholesale parts sales of $40.4 million and customer-pay service of $20.2 million, partially offset by a decrease in revenue associated with the preparation of vehicles for sale of $18.4 million. Same store parts and service gross profit was relatively flat during the three months ended June 30, 2026, as compared to the same period in 2025, reflecting an increase in gross profit associated with customer-pay service of $11.6 million and wholesale parts sales of $4.7 million, partially offset by a decrease in gross profit associated with the preparation of vehicles for sale of $12.5 million. Gross profit as a percentage of revenue decreased during the three months ended June 30, 2026, as compared to the same period in 2025, primarily due to a shift in mix to wholesale parts sales, which have relatively lower margins. Parts and service revenue and gross profit associated with customer-pay service benefited from an increase in repair order volume due in part to an increase in technician headcount. Wholesale parts revenue and gross profit increased primarily due to an increase in volume driven by new commercial agreements. Parts and service revenue and gross profit associated with the preparation of vehicles for sale was adversely impacted by lower new and used vehicle unit volume, margin compression, and lower value repair orders. First Six Months 2026 compared to First Six Months 2025 Same store parts and service revenue increased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to increases in revenue associated with wholesale parts sales of $66.5 million and customer-pay service of $41.7 million, partially offset by a decrease in revenue associated with the preparation of vehicles for sale of $26.2 million. Same store parts and service gross profit slightly increased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to an increase in gross profit associated with customer-pay service of $24.9 million and wholesale parts sales of $9.6 million, partially offset by a decrease in gross profit associated with the preparation of vehicles for sale of $21.3 million. Gross profit as a percentage of revenue decreased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to a shift in mix to wholesale parts sales, which have relatively lower margins. Parts and service revenue and gross profit associated with customer-pay service benefited from an increase in repair order volume due in part to an increase in technician headcount. Wholesale parts revenue and gross profit increased primarily due to an increase in volume driven by new commercial agreements. Parts and service revenue and gross profit associated with the preparation of vehicles for sale was adversely impacted by lower new and used vehicle unit volume, margin compression, and lower value repair orders. 43 Table of Contents Finance and Insurance Three Months Ended June 30, Six Months Ended June 30, ($ in millions, except per vehicle data) 2026 2025 Variance Favorable / (Unfavorable) % Variance 2026 2025 Variance Favorable / (Unfavorable) % Variance Reported: Revenue and gross profit $ 357.6 $ 367.7 $ (10.1) (2.7) $ 709.6 $ 720.2 $ (10.6) (1.5) Gross profit per vehicle retailed $ 2,799 $ 2,712 $ 87 3.2 $ 2,826 $ 2,708 $ 118 4.4 Same Store: Revenue and gross profit $ 351.6 $ 365.4 $ (13.8) (3.8) $ 695.0 $ 715.1 $ (20.1) (2.8) Gross profit per vehicle retailed $ 2,794 $ 2,718 $ 76 2.8 $ 2,825 $ 2,713 $ 112 4.1 Revenue on finance and insurance products represents commissions earned by us primarily for the placement of: (i) loans and leases with third-party financial institutions in connection with customer vehicle purchases financed, (ii) vehicle service contracts with third-party providers, and (iii) other vehicle protection products with third-party providers. We sell these products on a commission basis, and we also participate in the future underwriting profit on certain products pursuant to retrospective commission arrangements with the issuers of those products. As we continue to grow our AutoNation Finance business and increase our finance penetration rates associated with vehicles sold through our stores, we expect that income related to arranging customer financing will shift to AutoNation Finance and that the resulting decrease in finance and insurance gross profit will be offset by greater future profitability generated by our AutoNation Finance business. Interest income on financing provided through AutoNation Finance is recognized over the contractual term of the related loans. See “AutoNation Finance” for additional information. Second Quarter 2026 compared to Second Quarter 2025 Same store finance and insurance revenue and gross profit decreased during the three months ended June 30, 2026, as compared to the same period in 2025, reflecting a decrease in vehicle unit volume, largely offset by an increase in finance and insurance gross profit PVR. Finance and insurance gross profit PVR benefited primarily from higher realized margins on vehicle service contracts and higher gross profit per transaction associated with arranging customer financing, partially offset by an increase in retail vehicle sales financed through AutoNation Finance. First Six Months 2026 compared to First Six Months 2025 Same store finance and insurance revenue and gross profit decreased during the six months ended June 30, 2026, as compared to the same period in 2025, reflecting a decrease in vehicle unit volume, largely offset by an increase in finance and insurance gross profit PVR. Finance and insurance gross profit PVR benefited primarily from higher realized margins on vehicle service contracts and higher gross profit per transaction associated with arranging customer financing, partially offset by an increase in retail vehicle sales financed through AutoNation Finance. 44 Table of Contents Segment Results In the following table of financial data, revenue and segment income of our reportable segments are reconciled to consolidated revenue and consolidated operating income, respectively. The following discussions of segment results are on a reported basis. Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2026 2025 Variance Favorable / (Unfavorable) % Variance 2026 2025 Variance Favorable / (Unfavorable) % Variance Revenue: Domestic $ 1,793.1 $ 1,920.5 $ (127.4) (6.6) $ 3,509.7 $ 3,637.9 $ (128.2) (3.5) Import 2,233.1 2,148.3 84.8 3.9 4,281.2 4,195.6 85.6 2.0 Premium Luxury 2,579.7 2,555.8 23.9 0.9 5,021.2 5,132.3 (111.1) (2.2) Total Franchised Dealerships 6,605.9 6,624.6 (18.7) (0.3) 12,812.1 12,965.8 (153.7) (1.2) Corporate and other 323.9 349.8 (25.9) (7.4) 669.8 699.0 (29.2) (4.2) Total consolidated revenue $ 6,929.8 $ 6,974.4 $ (44.6) (0.6) $ 13,481.9 $ 13,664.8 $ (182.9) (1.3) Segment income(1): Domestic $ 74.0 $ 92.0 $ (18.0) (19.6) $ 152.1 $ 161.0 $ (8.9) (5.5) Import 123.5 133.4 (9.9) (7.4) 237.3 259.6 (22.3) (8.6) Premium Luxury 156.9 180.1 (23.2) (12.9) 311.7 358.8 (47.1) (13.1) Total Franchised Dealerships 354.4 405.5 (51.1) (12.6) 701.1 779.4 (78.3) (10.0) AutoNation Finance income 10.7 2.0 8.7 20.1 2.1 18.0 Corporate and other(2) (89.8) (235.2) 145.4 (173.4) (319.7) 146.3 Floorplan interest expense 43.7 45.3 1.6 85.5 91.8 6.3 Operating income $ 319.0 $ 217.6 $ 101.4 46.6 $ 633.3 $ 553.6 $ 79.7 14.4 Retail new vehicle unit sales: Domestic 17,080 19,354 (2,274) (11.7) 32,938 36,132 (3,194) (8.8) Import 30,060 29,748 312 1.0 56,839 57,751 (912) (1.6) Premium Luxury 16,100 16,745 (645) (3.9) 30,945 34,351 (3,406) (9.9) 63,240 65,847 (2,607) (4.0) 120,722 128,234 (7,512) (5.9) Retail used vehicle unit sales: Domestic 17,315 19,752 (2,437) (12.3) 35,222 38,176 (2,954) (7.7) Import 22,955 23,392 (437) (1.9) 45,989 46,547 (558) (1.2) Premium Luxury 18,213 19,016 (803) (4.2) 36,387 38,033 (1,646) (4.3) Other 6,038 7,576 (1,538) (20.3) 12,741 14,980 (2,239) (14.9) 64,521 69,736 (5,215) (7.5) 130,339 137,736 (7,397) (5.4) (1) Segment income for the Domestic, Import, and Premium Luxury reportable segments is a non-GAAP measure and is defined as operating income less floorplan interest expense. (2) Comprised of our non-franchised businesses, including AutoNation USA stores, collision centers, parts distribution centers, and auction operations, all of which do not meet the quantitative thresholds for reportable segments. “Corporate and other” income (loss) also includes unallocated corporate overhead expenses and other income items. Corporate and other for the three and six months ended June 30, 2025 also includes goodwill impairment of $65.3 million and franchise rights impairment of $71.7 million. 45 Table of Contents Domestic The Domestic segment operating results included the following: Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2026 2025 Variance Favorable / (Unfavorable) % Variance 2026 2025 Variance Favorable / (Unfavorable) % Variance Revenue: New vehicle $ 890.8 $ 985.1 $ (94.3) (9.6) $ 1,717.6 $ 1,845.3 $ (127.7) (6.9) Used vehicle 500.7 527.2 (26.5) (5.0) 1,000.1 1,013.3 (13.2) (1.3) Parts and service 291.0 289.3 1.7 0.6 573.0 558.3 14.7 2.6 Finance and insurance, net 109.7 118.5 (8.8) (7.4) 217.3 220.3 (3.0) (1.4) Other 0.9 0.4 0.5 1.7 0.7 1.0 Total Revenue $ 1,793.1 $ 1,920.5 $ (127.4) (6.6) $ 3,509.7 $ 3,637.9 $ (128.2) (3.5) Gross Profit: New vehicle $ 22.7 $ 32.4 $ (9.7) (29.9) $ 44.9 $ 57.9 $ (13.0) (22.5) Used vehicle 23.8 28.7 (4.9) (17.1) 51.7 55.8 (4.1) (7.3) Parts and service 135.3 135.1 0.2 0.1 270.2 258.8 11.4 4.4 Finance and insurance, net 109.7 118.5 (8.8) (7.4) 217.3 220.3 (3.0) (1.4) Other 0.6 0.3 0.3 1.0 0.7 0.3 Total Gross Profit $ 292.1 $ 315.0 $ (22.9) (7.3) $ 585.1 $ 593.5 $ (8.4) (1.4) Segment income $ 74.0 $ 92.0 $ (18.0) (19.6) $ 152.1 $ 161.0 $ (8.9) (5.5) Retail vehicle unit sales: New vehicle 17,080 19,354 (2,274) (11.7) 32,938 36,132 (3,194) (8.8) Used vehicle 17,315 19,752 (2,437) (12.3) 35,222 38,176 (2,954) (7.7) 34,395 39,106 (4,711) (12.0) 68,160 74,308 (6,148) (8.3) Second Quarter 2026 compared to Second Quarter 2025 Domestic revenue decreased during the three months ended June 30, 2026, as compared to the same period in 2025, primarily due to decreases in new and used vehicle unit volume, partially offset by increases in new vehicle revenue PVR of $1,261 and used vehicle revenue PVR of $1,674. New vehicle unit volume decreased as a result of the prior year period benefiting from accelerated consumer demand in April 2025 following tariff-related announcements and a decrease in EV unit volume in the current year period due in part to the phasing out of EV tax credits at the end of the third quarter of 2025. Used vehicle unit volume decreased due to supply constraints on lower-priced used vehicles. Domestic segment income decreased during the three months ended June 30, 2026, as compared to the same period in 2025, primarily due to decreases in new and used vehicle unit volume, as well as a decrease in new vehicle gross profit PVR of $345 resulting from an increase in average vehicle costs driven in part by a decrease in manufacturer incentives. These decreases were partially offset by an increase in finance and insurance gross profit PVR of $159 due to higher realized margins on service contracts and higher gross profit per transaction associated with arranging customer financing, and a decrease in SG&A expenses of $7.1 million. First Six Months 2026 compared to First Six Months 2025 Domestic revenue decreased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to decreases in new and used vehicle unit volume, partially offset by increases in new vehicle revenue PVR of $1,075 and used vehicle revenue PVR of $1,379. New vehicle unit volume decreased primarily due to the prior year period benefiting from accelerated consumer demand in the later part of March 2025 into April 2025 following tariff-related announcements and a decrease in EV unit volume in the current year period due in part to the phasing out of EV tax credits at the end of the third quarter of 2025. Used vehicle unit volume decreased due to supply constraints on lower-priced used vehicles. Domestic segment income decreased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to decreases in new and used vehicle unit volume and a decrease in new vehicle gross profit PVR of $239 46 Table of Contents resulting from an increase in average vehicle costs driven in part by a decrease in manufacturer incentives. These decreases were partially offset by an increase in finance and insurance gross profit PVR of $223, due to higher realized margins on service contracts and higher gross profit per transaction associated with arranging customer financing, and increases in parts and service gross profit associated with customer-pay service of $7.1 million and warranty service of $8.1 million. 47 Table of Contents Import The Import segment operating results included the following: Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2026 2025 Variance Favorable / (Unfavorable) % Variance 2026 2025 Variance Favorable / (Unfavorable) % Variance Revenue: New vehicle $ 1,170.2 $ 1,129.6 $ 40.6 3.6 $ 2,205.5 $ 2,191.6 $ 13.9 0.6 Used vehicle 578.5 549.6 28.9 5.3 1,132.5 1,096.3 36.2 3.3 Parts and service 354.5 343.0 11.5 3.4 689.0 661.6 27.4 4.1 Finance and insurance, net 127.1 123.7 3.4 2.7 249.4 242.2 7.2 3.0 Other 2.8 2.4 0.4 4.8 3.9 0.9 Total Revenue $ 2,233.1 $ 2,148.3 $ 84.8 3.9 $ 4,281.2 $ 4,195.6 $ 85.6 2.0 Gross Profit: New vehicle $ 56.8 $ 61.8 $ (5.0) (8.1) $ 105.7 $ 119.0 $ (13.3) (11.2) Used vehicle 36.2 36.1 0.1 0.3 73.4 72.7 0.7 1.0 Parts and service 168.6 171.4 (2.8) (1.6) 329.3 330.8 (1.5) (0.5) Finance and insurance, net 127.1 123.7 3.4 2.7 249.4 242.2 7.2 3.0 Other (1.3) (1.5) 0.2 (3.0) (2.8) (0.2) Total Gross Profit $ 387.4 $ 391.5 $ (4.1) (1.0) $ 754.8 $ 761.9 $ (7.1) (0.9) Segment income $ 123.5 $ 133.4 $ (9.9) (7.4) $ 237.3 $ 259.6 $ (22.3) (8.6) Retail vehicle unit sales: New vehicle 30,060 29,748 312 1.0 56,839 57,751 (912) (1.6) Used vehicle 22,955 23,392 (437) (1.9) 45,989 46,547 (558) (1.2) 53,015 53,140 (125) (0.2) 102,828 104,298 (1,470) (1.4) Second Quarter 2026 compared to Second Quarter 2025 Import revenue increased during the three months ended June 30, 2026, as compared to the same period in 2025, primarily due to an increase in new vehicle revenue PVR of $957 due in part to a 7% shift in mix to hybrid and electric vehicles, which have relatively higher average revenue PVR, and an increase in new vehicle unit volume particularly for hybrid vehicles. Import revenue also benefited from an increase in used vehicle revenue PVR of $1,411 resulting from a shift in mix to higher-priced vehicles, including late-model and lower-mileage used vehicles, partially offset by a decrease in used retail vehicle unit volume due to supply constraints on lower-priced used vehicles. Import segment income decreased during the three months ended June 30, 2026, as compared to the same period in 2025, primarily due to a $4.9 million increase in SG&A expenses, as well as a decrease in new vehicle gross profit PVR of $187 reflecting an increase in average vehicle costs due in part to a decrease in manufacturer incentives. First Six Months 2026 compared to First Six Months 2025 Import revenue increased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to an increase in used vehicle revenue and parts and service revenue. The increase in used vehicle revenue is due to an increase in used vehicle revenue PVR of $952 resulting from a shift in mix to higher-priced vehicles, including late-model and lower-mileage used vehicles, partially offset by a decrease in used retail vehicle unit volume due to supply constraints on lower-priced used vehicles. Parts and service revenue benefited from increases in revenue associated with wholesale and retail parts sales of $30.8 million. Import segment income decreased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to a decrease in new vehicle gross profit PVR of $201 primarily due to an increase in vehicle acquisition costs reflecting a competitive vehicle sourcing market, as well as a decrease in new vehicle unit volume. Import segment income was also adversely impacted by a $12.9 million increase in SG&A expenses. 48 Table of Contents Premium Luxury The Premium Luxury segment operating results included the following: Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2026 2025 Variance Favorable / (Unfavorable) % Variance 2026 2025 Variance Favorable / (Unfavorable) % Variance Revenue: New vehicle $ 1,231.7 $ 1,281.6 $ (49.9) (3.9) $ 2,380.6 $ 2,607.5 $ (226.9) (8.7) Used vehicle 766.1 722.3 43.8 6.1 1,500.3 1,434.4 65.9 4.6 Parts and service 470.3 437.4 32.9 7.5 924.7 861.8 62.9 7.3 Finance and insurance, net 111.4 114.3 (2.9) (2.5) 215.0 228.4 (13.4) (5.9) Other 0.2 0.2 — 0.6 0.2 0.4 Total Revenue $ 2,579.7 $ 2,555.8 $ 23.9 0.9 $ 5,021.2 $ 5,132.3 $ (111.1) (2.2) Gross Profit: New vehicle $ 71.2 $ 89.2 $ (18.0) (20.2) $ 144.5 $ 181.4 $ (36.9) (20.3) Used vehicle 35.2 42.5 (7.3) (17.2) 74.3 85.6 (11.3) (13.2) Parts and service 243.9 231.5 12.4 5.4 483.1 456.5 26.6 5.8 Finance and insurance, net 111.4 114.3 (2.9) (2.5) 215.0 228.4 (13.4) (5.9) Other — — — 0.1 0.1 — Total Gross Profit $ 461.7 $ 477.5 $ (15.8) (3.3) $ 917.0 $ 952.0 $ (35.0) (3.7) Segment income $ 156.9 $ 180.1 $ (23.2) (12.9) $ 311.7 $ 358.8 $ (47.1) (13.1) Retail vehicle unit sales: New vehicle 16,100 16,745 (645) (3.9) 30,945 34,351 (3,406) (9.9) Used vehicle 18,213 19,016 (803) (4.2) 36,387 38,033 (1,646) (4.3) 34,313 35,761 (1,448) (4.0) 67,332 72,384 (5,052) (7.0) Second Quarter 2026 compared to Second Quarter 2025 Premium Luxury revenue increased during the three months ended June 30, 2026, as compared to the same period in 2025, primarily due to $82.3 million in revenue from the acquisitions we completed in the third quarter of 2025 and second quarter of 2026, and increases in used vehicle revenue and parts and service revenue. Used vehicle revenue increased due to an increase in used vehicle revenue PVR of $3,536 reflecting a shift in mix to late-model and lower-mileage used vehicles, which have relatively higher average selling prices, partially offset by a decrease in used vehicle unit volume due to supply constraints on lower-priced used vehicles. Parts and service revenue benefited from an increase in revenue associated with customer-pay service of $20.4 million. The increases in Premium Luxury revenue were partially offset by a decrease in new vehicle unit volume as a result of the prior year period benefiting from accelerated consumer demand in April 2025 following tariff-related announcements and a decrease in EV unit volume in the current year period due in part to the phasing out of EV tax credits at the end of the third quarter of 2025. Premium Luxury segment income decreased during the three months ended June 30, 2026, as compared to the same period in 2025, primarily due to decreases in new and used vehicle unit volume, a decrease in used vehicle gross profit PVR of $266 largely due to an increase in vehicle acquisition costs reflecting a competitive vehicle sourcing market, and a $6.0 million increase in SG&A expenses, partially offset by an increase in parts and service gross profit associated with customer-pay service of $10.5 million. First Six Months 2026 compared to First Six Months 2025 Premium Luxury revenue decreased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to a decrease in new vehicle unit volume as a result of the prior year period benefiting from accelerated consumer demand in the later part of March 2025 into April 2025 following tariff-related announcements and a decrease in EV unit volume in the current year period due in part to the phasing out of EV tax credits at the end of the third quarter of 2025, which was partially offset by an increase in new vehicle revenue PVR of $1,022. The decreases in Premium Luxury revenue were partially offset by revenue of $147.9 million from the acquisitions we completed in the third quarter of 2025 and second quarter of 2026, increases in parts and service revenue associated with customer-pay service of $35.7 million and parts retail and 49 Table of Contents wholesale sales of $18.5 million, and a decrease in used vehicle unit volume decreased due to supply constraints on lower-priced used vehicles. Premium Luxury segment income decreased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily resulting from decreases in new and used vehicle unit volume, a decrease in new vehicle gross profit PVR of $611 reflecting an increase in average vehicle costs due in part to a decrease in manufacturer incentives, a decrease in used vehicle gross profit PVR of $213 largely due to an increase in vehicle acquisition costs reflecting a competitive vehicle sourcing market, and an $11.8 million increase in SG&A expenses. The decreases in Premium Luxury segment income were partially offset by increases in parts and service gross profit associated with customer-pay service of $18.7 million and warranty service of $8.4 million. 50 Table of Contents AutoNation Finance AutoNation Finance (“ANF”), our captive auto finance company, provides indirect financing to qualified retail customers on vehicles we sell. This business provides us an opportunity to extend our relationship with the customer beyond the vehicle sale and participate in the customer’s entire vehicle ownership cycle. As a result, we are able to diversify our sources of income, generate additional profits, cash flows, and sales, and increase customer retention. ANF income includes the interest and fee income generated by auto loans receivable less the interest expense associated with the debt issued or used to fund these receivables, a provision for estimated credit losses on the auto loans receivable originated or acquired, and direct expenses. Interest income on auto loans receivable is recognized over the contractual term of the related loans. ANF income does not include amortization of intercompany discounts or intercompany dealer participation fees. We use non-recourse funding facilities, including warehouse facilities and asset-backed term funding transactions, as well as free cash flows from operations to fund the auto loans receivable of ANF. See Notes 6 and 9 of the Notes to Unaudited Condensed Consolidated Financial Statements for more information about our auto loans receivables and related non-recourse debt, respectively. The following table presents the components of ANF income: Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2026 %(1) 2025 %(1) 2026 %(1) 2025 %(1) Interest margin: Interest and fee income $ 68.6 10.7 % $ 48.6 12.0 % $ 131.3 10.3 % $ 90.5 11.2 % Interest expense (27.1) (4.2) % (17.8) (4.4) % (51.5) (4.0) % (31.7) (3.9) % Total interest margin 41.5 6.5 % 30.8 7.6 % 79.8 6.2 % 58.8 7.3 % Provision for credit losses (20.1) (3.1) % (19.2) (4.8) % (39.6) (3.1) % (38.1) (4.7) % Total interest margin after provision for credit losses 21.4 3.3 % 11.6 2.9 % 40.2 3.1 % 20.7 2.6 % Direct expenses(2) (10.7) (1.7) % (9.6) (2.4) % (20.1) (1.6) % (18.6) (2.3) % AutoNation Finance income $ 10.7 1.7 % $ 2.0 0.5 % $ 20.1 1.6 % $ 2.1 0.3 % (1) Annualized amounts as a percentage of total average managed receivables. (2) Direct expenses are comprised primarily of compensation expense and loan administration costs incurred by our auto finance company. The following tables present selected loan origination and loan performance information: Three Months Ended Six Months Ended June 30, June 30, ($ in millions) 2026 2025 2026 2025 Loan Origination Information Loans originated $ 484.5 $ 464.4 $ 946.6 $ 924.8 Vehicle units financed 14,245 13,514 27,704 26,762 Penetration rate(1) 11.1 % 10.0 % 11.0 % 10.1 % Weighted average contract rate 10.4 % 10.9 % 10.3 % 11.0 % Weighted average credit score(2) 705 698 703 696 Weighted average loan-to-value(3) 101.5 % 103.6 % 103.2 % 103.8 % Weighted average term (in months) 72.0 72.0 73.0 72.0 (1) Units financed as a percentage of total new and used retail vehicle units sold. (2) Represents weighted average FICO scores for receivables with obligors that have a FICO score at the time of application. For receivables with co-borrowers, we use the primary borrower’s FICO score. FICO scores are not a significant factor in our proprietary credit model, which relies on information from credit bureaus and other information. (3) Front-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. 51 Table of Contents As of and for the Three Months Ended As of and for the Six Months Ended June 30, June 30, ($ in millions) 2026 2025 2026 2025 Loan Performance Information Total average managed receivables $ 2,556.1 $ 1,613.6 $ 2,440.8 $ 1,440.4 Allowance for credit losses as a percentage of ending managed receivables 4.1 % 4.4 % 4.1 % 4.4 % Net credit losses on managed receivables $ 11.5 $ 8.9 $ 25.2 $ 16.0 Annualized net credit losses as a percentage of total average managed receivables 1.8 % 2.2 % 2.1 % 2.2 % Accounts greater than 30 days past due as a percentage of ending managed receivables 2.4 % 2.4 % 2.4 % 2.4 % Average recovery rate(1) 53.0 % 52.2 % 52.3 % 49.8 % (1) Represents the average percentage of the outstanding principal balance we receive when a vehicle is repossessed and liquidated, generally at wholesale auctions. Second Quarter 2026 compared to Second Quarter 2025 ANF income increased during the three months ended June 30, 2026, as compared to the same period in 2025, primarily due to an increase in interest and fee income from the growth in average managed receivables of $942.5 million as we continue to grow our ANF business and increase our finance penetration rates associated with vehicles sold through our stores. ANF continues to realize operational efficiencies as the portfolio scales, resulting in reduced direct expenses as a percentage of the managed portfolio. ANF income also benefited from a decrease in the expected credit loss rates compared to the prior year reflecting improved credit quality of new loan originations. While we have seen improvement in our credit loss rates resulting from the improved credit quality of our portfolio, we expect our portfolio delinquency rates will continue to normalize and trend upward as our portfolio seasons. First Six Months 2026 compared to First Six Months 2025 ANF income increased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to an increase in interest and fee income from the growth in average managed receivables of $1.0 billion as we continue to grow our ANF business and increase our finance penetration rates associated with vehicles sold through our stores. ANF continues to realize operational efficiencies as the portfolio scales, resulting in reduced direct expenses as a percentage of the managed portfolio. ANF income also benefited from a decrease in the expected credit loss rates compared to the prior year reflecting improved credit quality of new loan originations. While we have seen improvement in our credit loss rates resulting from the improved credit quality of our portfolio, we expect our portfolio delinquency rates will continue to normalize and trend upward as our portfolio seasons. 52 Table of Contents Selling, General, and Administrative Expenses Our Selling, General, and Administrative (“SG&A”) expenses consist primarily of compensation, including store and corporate salaries, commissions, and incentive-based compensation, as well as advertising (net of reimbursement-based manufacturer advertising rebates), and store and corporate overhead expenses, which include occupancy costs, outside service costs, information technology expenses, service loaner and rental inventory expenses, legal, accounting, and professional services, and general corporate expenses. The following table presents the major components of our SG&A expenses. Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2026 2025 Variance Favorable / (Unfavorable) % Variance 2026 2025 Variance Favorable / (Unfavorable) % Variance Reported: Compensation $ 553.4 $ 569.2 $ 15.8 2.8 $ 1,082.0 $ 1,099.4 $ 17.4 1.6 Advertising 75.2 65.5 (9.7) (14.8) 148.1 127.5 (20.6) (16.2) Store and corporate overhead 227.7 220.0 (7.7) (3.5) 468.4 449.7 (18.7) (4.2) Total $ 856.3 $ 854.7 $ (1.6) (0.2) $ 1,698.5 $ 1,676.6 $ (21.9) (1.3) SG&A as a % of total gross profit: Compensation 45.0 44.6 (40) bps 44.3 44.1 (20) bps Advertising 6.1 5.1 (100) bps 6.1 5.1 (100) bps Store and corporate overhead 18.5 17.3 (120) bps 19.1 18.0 (110) bps Total 69.6 67.0 (260) bps 69.5 67.2 (230) bps Second Quarter 2026 compared to Second Quarter 2025 SG&A expenses increased slightly during the three months ended June 30, 2026, as compared to the same period in 2025, primarily due to the impact of acquisitions, net of divestitures, of $8.6 million and an increase in advertising costs to support vehicle sales. The increases in SG&A expenses were largely offset by a $16.3 million decrease in performance-driven compensation expense. As a percentage of total gross profit, SG&A expenses for the three months ended June 30, 2026, increased as compared to the same period in 2025, primarily due to the increases in SG&A expenses as described above and moderation of gross profit. First Six Months 2026 compared to First Six Months 2025 SG&A expenses increased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to the impact of acquisitions, net of divestitures, of $15.2 million, an increase in advertising costs to support vehicle sales, an increase in self-insured losses of $7.8 million related to unfavorable claim development and hailstorms, and investments targeting customer experience. The increases in SG&A expenses were largely offset by a $22.1 million decrease in performance-driven compensation expense. As a percentage of total gross profit, SG&A expenses increased to 69.5% during the six months ended June 30, 2026, from 67.2% in the same period in 2025, primarily due to the increases in SG&A expenses as described above and moderation of gross profit. Other Expense, Net (Operating) Other Expense, Net generally includes asset impairments, gains or losses associated with business/property divestitures, and legal settlements, among other items. Non-Operating Income (Expense) Floorplan Interest Expense Our floorplan facilities utilize Prime-based and SOFR-based interest rates, which are variable and, therefore, our floorplan interest rates increase and decrease with changes in the underlying benchmark interest rates. 53 Table of Contents Second Quarter 2026 compared to Second Quarter 2025 Floorplan interest expense was $43.7 million for the three months ended June 30, 2026, compared to $45.3 million for the same period in 2025. The decrease in floorplan interest expense of $1.6 million was due to lower average interest rates, partially offset by higher average vehicle floorplan balances. First Six Months 2026 compared to First Six Months 2025 Floorplan interest expense was $85.5 million for the six months ended June 30, 2026, compared to $91.8 million for the same period in 2025. The decrease in floorplan interest expense of $6.3 million was primarily due to lower average interest rates, partially offset by higher average vehicle floorplan balances. Interest Expense Other interest expense includes the interest related to non-vehicle long-term debt, commercial paper, and finance lease obligations. Second Quarter 2026 compared to Second Quarter 2025 Other interest expense was $49.9 million for the three months ended June 30, 2026, compared to $46.2 million for the three months ended June 30, 2025. The increase in interest expense of $3.7 million was due to higher average debt balances, partially offset by lower average interest rates. First Six Months 2026 compared to First Six Months 2025 Other interest expense was $97.9 million for the six months ended June 30, 2026, compared to $88.5 million for the same period in 2025. The increase in interest expense of $9.4 million was driven by higher average debt balances and higher average interest rates. Other Income (Loss), Net We recognized net gains of $16.9 million and $10.4 million for the three months ended June 30, 2026 and 2025, respectively, and net gains of $14.0 million and $8.5 million for the six months ended June 30, 2026 and 2025, respectively, related to changes in the cash surrender value of corporate-owned life insurance (“COLI”) for deferred compensation plan participants as a result of changes in market performance of the underlying investments. Gains and losses related to the COLI are substantially offset by corresponding increases and decreases, respectively, in the deferred compensation obligations, which are reflected in SG&A expenses. We did not record any gains or losses for the three months ended June 30, 2026, related to changes in fair value of the underlying securities of our minority equity investments. We recognized net gains of $54.0 million during the six months ended June 30, 2026, and $1.7 million and $9.8 million for the three and six months ended June 30, 2025, respectively, related to changes in fair value of the underlying securities of our minority equity investments. During the period that we hold our minority equity investments, unrealized gains and losses will be recorded as the fair market values of securities with readily determinable fair values change over time, or as observable price changes are identified for securities without readily determinable fair values. See Note 15 of the Notes to Unaudited Condensed Consolidated Financial Statements for more information. Income Tax Provision Income taxes are provided based upon our anticipated underlying annual blended federal and state income tax rates adjusted, as necessary, for any discrete tax matters occurring during the period. As we operate in various states, our effective tax rate is also dependent upon our geographic revenue mix. Our effective income tax rate was 25.3% for the three months ended June 30, 2026, and 37.6% for the three months ended June 30, 2025. Our effective income tax rate was 25.4% for the six months ended June 30, 2026, and 29.7% for the six months ended June 30, 2025. The tax rates for the three and six months ended June 30, 2025, reflect the fact that the goodwill impairment charge recorded in the second quarter of 2025 was not deductible for income tax purposes. 54 Table of Contents Liquidity and Capital Resources We manage our liquidity to ensure access to sufficient funding at acceptable costs to fund our ongoing operating requirements and future capital expenditures while continuing to meet our financial obligations. We believe that our cash and cash equivalents, funds generated through operations, and amounts available under our revolving credit facility, commercial paper program, secured used vehicle floorplan facilities, and non-recourse warehouse facilities will be sufficient to fund our working capital requirements, fund the origination of auto loans receivable, service our debt, pay our tax obligations and commitments and contingencies, and meet any seasonal operating requirements for the foreseeable future. Depending on market conditions, we may from time to time issue debt, including in private or public offerings, to augment our liquidity, to reduce our cost of capital, or for general corporate purposes. In addition, we expect to periodically securitize auto loans receivable to provide funding for our auto finance company. Available Liquidity Resources We had the following sources of liquidity available: (In millions) June 30, 2026 December 31, 2025 Cash and cash equivalents $ 53.3 $ 58.6 Revolving credit facility $ 1,569.7 (1)(2) $ 1,899.6 (1) As limited by the maximum consolidated leverage ratio in our credit agreement. (2) At June 30, 2026, we had $0.4 million of letters of credit outstanding. In addition, we use the revolving credit facility under our credit agreement as a liquidity backstop for borrowings under our commercial paper program. We had $635.0 million of commercial paper notes outstanding at June 30, 2026. See Note 9 of the Notes to Unaudited Condensed Consolidated Financial Statements for more information. In the ordinary course of business, we are required to post performance and surety bonds, letters of credit, and/or cash deposits as financial guarantees of our performance primarily relating to insurance matters. At June 30, 2026, surety bonds, letters of credit, and cash deposits totaled $108.7 million, of which $0.4 million were letters of credit. We do not currently provide cash collateral for outstanding letters of credit. In February 2025, we filed an automatic shelf registration statement with the SEC that enables us to offer for sale, from time to time and as the capital markets permit, an unspecified amount of common stock, preferred stock, debt securities, warrants, subscription rights, depositary shares, stock purchase contracts, and units. In addition, we own a significant portion of our new vehicle franchise store locations and other locations associated with our non-franchised businesses, as well as other properties. At June 30, 2026, these properties had a net book value of $3.1 billion. None of these properties are mortgaged or encumbered. Capital Allocation Our capital allocation strategy is focused on growing long-term value per share. We invest capital in our business to maintain and upgrade our existing facilities and to build new facilities for existing franchises, as well as for other strategic and technology initiatives. We also deploy capital opportunistically to complete acquisitions or investments, build facilities for newly awarded franchises, and/or repurchase our common stock and/or debt. Our capital allocation decisions are based on factors such as the expected rate of return on our investment, the market price of our common stock versus our view of its intrinsic value, the market price of our debt, the potential impact on our capital structure, our ability to complete acquisitions that meet our strategic objectives, market and vehicle brand criteria, and/or return on investment threshold, and limitations set forth in our debt agreements. 55 Table of Contents Share Repurchases Our Board of Directors from time to time authorizes the repurchase of shares of our common stock up to a certain monetary limit. A summary of shares repurchased under our stock repurchase program authorized by our Board of Directors follows: Three Months Ended Six Months Ended June 30, June 30, (In millions, except share and per share data) 2026 2025 2026 2025 Shares repurchased 0.8 0.2 2.3 1.5 Aggregate purchase price (1) $ 157.0 $ 29.0 $ 457.0 $ 253.8 Average purchase price per share $ 199.84 $ 157.57 $ 200.59 $ 164.07 (1) Excludes the excise tax imposed under the Inflation Reduction Act of $1.6 million and $4.2 million for the three and six months ended June 30, 2026, respectively, and $0.3 million and $2.1 million for the three and six months ended June 30, 2025, respectively. As of June 30, 2026, $618.9 million remained available under our stock repurchase limit authorized by our Board of Directors. The decision to repurchase shares at any given point in time is based on factors such as the market price of our common stock versus our view of its intrinsic value, the potential impact on our capital structure (including compliance with our maximum leverage ratio, minimum interest coverage ratio, and other financial covenants in our debt agreements as well as our available liquidity), and the expected return on competing uses of capital such as acquisitions or investments, capital investments in our current businesses, or repurchases of our debt. Capital Expenditures The following table sets forth information regarding our capital expenditures: Three Months Ended Six Months Ended June 30, June 30, (In millions) 2026 2025 2026 2025 Purchases of property and equipment $ 69.6 $ 79.0 $ 126.0 $ 154.2 Acquisitions and Divestitures We purchased one Import store and three Premium Luxury stores during the six months ended June 30, 2026. We purchased one Domestic store and one Import store during the six months ended June 30, 2025. We divested two Domestic stores during the six months ended June 30, 2026. We did not divest any stores during the six months ended June 30, 2025. Three Months Ended Six Months Ended June 30, June 30, (In millions) 2026 2025 2026 2025 Cash paid for business acquisitions, net $ (316.5) $ — $ (316.5) $ (69.6) Cash received from business divestitures, net $ 4.7 $ — $ 17.4 $ — We regularly review our store portfolio and may acquire or divest stores to optimize our operations and footprint. We typically utilize proceeds related to asset sales, including business and real estate divestitures, to fund our capital investments and strategic initiatives or for other general corporate purposes. 56 Table of Contents Debt The following table sets forth our non-vehicle long-term debt, as of June 30, 2026, and December 31, 2025. (In millions) Debt Description Maturity Date Interest Payable June 30, 2026 December 31, 2025 3.8% Senior Notes November 15, 2027 May 15 and November 15 $ 300.0 $ 300.0 1.95% Senior Notes August 1, 2028 February 1 and August 1 400.0 400.0 4.45% Senior Notes January 15, 2029 January 15 and July 15 600.0 600.0 4.75% Senior Notes June 1, 2030 June 1 and December 1 500.0 500.0 2.4% Senior Notes August 1, 2031 February 1 and August 1 450.0 450.0 3.85% Senior Notes March 1, 2032 March 1 and September 1 700.0 700.0 5.89% Senior Notes March 15, 2035 March 15 and September 15 500.0 500.0 Revolving credit facility July 18, 2028 Monthly — — Finance leases and other debt Various dates through 2051 364.2 353.9 3,814.2 3,803.9 Less: unamortized debt discounts and debt issuance costs (21.9) (24.4) Less: current maturities (74.9) (74.7) Long-term debt, net of current maturities $ 3,717.4 $ 3,704.8 We had commercial paper notes outstanding of $635.0 million at June 30, 2026, and $200.0 million at December 31, 2025. A downgrade in our credit ratings could negatively impact the interest rate payable on our 3.8% Senior Notes and 4.75% Senior Notes, and could also negatively impact our ability to issue, or the interest rates for, commercial paper notes or other debt. Additionally, an increase in our leverage ratio could negatively impact the interest rates charged for borrowings under our revolving credit facility. The following table sets forth our non-recourse debt, as of June 30, 2026, and December 31, 2025. (In millions) June 30, 2026 December 31, 2025 Warehouse facilities $ 803.5 $ 1,398.7 Term securitization debt of consolidated VIEs 1,620.6 548.6 2,424.1 1,947.3 Less: unamortized debt discounts and debt issuance costs (6.9) (2.7) Less: current maturities (83.3) (63.8) Non-recourse debt, net of current maturities $ 2,333.9 $ 1,880.8 In January 2026, we issued non-recourse notes payable related to asset-backed term securitizations with an aggregate principal amount of $749.2 million, a weighted-average interest rate of 4.25%, and maturity dates ranging from February 2027 to January 2034. In June 2026, we issued non-recourse notes payable related to asset-backed term securitizations with an aggregate principal amount of $550.0 million, a weighted-average interest rate of 4.76%, and maturity dates ranging from June 2027 to May 2034. See Note 9 of the Notes to Unaudited Condensed Consolidated Financial Statements for more information on our non-vehicle long-term debt, commercial paper, and non-recourse debt. Restrictions and Covenants Our amended and restated credit agreement and the indentures for our senior unsecured notes contain customary covenants that place restrictions on us, including our ability to incur additional or guarantee other indebtedness, to create liens or other encumbrances, to engage in sale and leaseback transactions, to sell (or otherwise dispose of) assets, and to merge or 57 Table of Contents consolidate with other entities. Our failure to comply with the covenants contained in our amended and restated credit agreement and the indentures for our senior unsecured notes could result in the acceleration of other indebtedness of AutoNation. Under our amended and restated credit agreement, we are required to remain in compliance with a maximum leverage ratio and a minimum interest coverage ratio. The leverage ratio is a contractually defined amount principally reflecting non-vehicle debt divided by a measure of earnings. The interest coverage ratio is a contractually defined amount reflecting a measure of earnings divided by certain interest expense principally associated with vehicle floorplan payable and non-vehicle debt. The specific terms of the leverage and interest coverage ratios can be found in our amended and restated credit agreement, which is filed with our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023. As of June 30, 2026, we were in compliance with the covenants under our credit agreement and the indentures for our senior unsecured notes. At June 30, 2026, our leverage and interest coverage ratios were as follows: June 30, 2026 Requirement Actual Leverage ratio ≤ 3.75x 2.77x Interest coverage ratio ≥ 3.00x 4.67x Vehicle Floorplan Payable The components of vehicle floorplan payable are as follows: (In millions) June 30, 2026 December 31, 2025 Vehicle floorplan payable - trade $ 2,254.1 $ 2,200.6 Vehicle floorplan payable - non-trade 1,804.8 1,627.7 Vehicle floorplan payable $ 4,058.9 $ 3,828.3 Vehicle floorplan facilities are due on demand, but in the case of new vehicle inventories, are generally paid within several business days after the related vehicles are sold. Vehicle floorplan facilities are primarily collateralized by vehicle inventories and related receivables. See Note 7 of the Notes to Unaudited Condensed Consolidated Financial Statements for more information on our vehicle floorplan payable. Cash Flows The following table summarizes the changes in our cash provided by (used in) operating, investing, and financing activities: Six Months Ended June 30, (In millions) 2026 2025 Net cash used in operating activities $ (48.9) $ (230.3) Net cash used in investing activities $ (427.9) $ (210.5) Net cash provided by financing activities $ 523.4 $ 434.8 Cash Flows from Operating Activities Our primary sources of operating cash flows result from the sale of vehicles, finance and insurance products, and parts and automotive repair and maintenance services, proceeds from vehicle floorplan payable-trade, and collections on auto loans receivable for vehicles sold through our stores. Our primary uses of cash from operating activities are repayments of vehicle floorplan payable-trade, purchases of inventory, personnel-related expenditures, originations of loans receivable for vehicles sold through our stores, and payments related to taxes and leased properties. Net cash used in operating activities decreased for the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to a $201.4 million increase in collections on auto loans receivable. 58 Table of Contents Cash Flows from Investing Activities Net cash flows from investing activities consist primarily of cash used in capital additions and activity from business acquisitions, business divestitures, property dispositions, and other transactions. We will make facility and infrastructure upgrades and improvements from time to time as we identify projects that are required to maintain our current business or that we expect to provide us with acceptable rates of return. Net cash used in investing activities increased during the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to a $246.9 million increase in cash used for acquisitions, partially offset by a $28.2 million decrease in purchases of property and equipment and a $17.4 million increase in cash received from divestitures. Cash Flows from Financing Activities Net cash flows from financing activities primarily include repurchases of common stock, debt activity, and changes in vehicle floorplan payable-non-trade. Cash flows from financing activities include changes in commercial paper notes outstanding reflecting net proceeds of $435.0 million and net payments of $500.0 million during the six months ended June 30, 2026 and 2025, respectively, as well as changes in vehicle floorplan payable non-trade totaling net proceeds of $120.5 million and $83.1 million during the six months ended June 30, 2026 and 2025, respectively. During the six months ended June 30, 2025, we issued $500 million aggregate principal amount of 5.89% Senior Notes due 2035. During the six months ended June 30, 2026, we repurchased 2.3 million shares of common stock for an aggregate purchase price of $457.0 million (average purchase price per share of $200.59), including repurchases for which settlement occurred subsequent to June 30, 2026, and excluding the excise tax imposed under the Inflation Reduction Act. During the six months ended June 30, 2025, we repurchased 1.5 million shares of common stock for an aggregate purchase price of $253.8 million (average purchase price per share of $164.07), excluding the excise tax imposed under the Inflation Reduction Act. During the six months ended June 30, 2026, we borrowed $2.1 billion of non-recourse debt, including issuance of $1.3 billion in non-recourse notes payable related to asset-backed term securitizations, and repaid $1.7 billion of non-recourse debt. During the six months ended June 30, 2025, we borrowed $1.3 billion of non-recourse debt, including issuance of $700.0 million in non-recourse notes payable related to asset-backed term securitizations, and repaid $690.1 million of non-recourse debt. 59 Table of Contents Forward-Looking Statements Our business, financial condition, results of operations, cash flows, and prospects, and the prevailing market price and performance of our common stock may be adversely affected by a number of factors, including the matters discussed below. Certain statements and information set forth in this Quarterly Report on Form 10-Q, including, without limitation, statements regarding our strategic initiatives, partnerships, or investments, including AutoNation Finance, and statements regarding our expectations for the future performance of our business and the automotive retail industry, including the remainder of 2026, as well as other written or oral statements made from time to time by us or by our authorized executive officers on our behalf that describe our objectives, goals, or plans, constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact, including statements that describe our objectives, plans or goals are, or may be deemed to be, forward-looking statements. Words such as “anticipate,” “expect,” “estimate,” “intend,” “goal,” “target,” “project,” “plan,” “believe,” “continue,” “may,” “will,” “could,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Our forward-looking statements reflect our current expectations concerning future results and events, and they involve known and unknown risks, uncertainties and other factors that are difficult to predict and may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by these statements. These forward-looking statements speak only as of the date of this report, and we undertake no obligation to revise or update these statements to reflect subsequent events or circumstances. The risks, uncertainties, and other factors that our stockholders and prospective investors should consider include, but are not limited to, the following: •The automotive retail industry is sensitive to changing economic conditions and various other factors, including, but not limited to, unemployment levels, consumer confidence, fuel prices, interest rates, and tariffs. Our business and results of operations are substantially dependent on new and used vehicle sales levels in the United States and in our particular geographic markets, as well as the gross profit margins that we can achieve on our sales of vehicles, all of which are very difficult to predict. •Our new vehicle sales are impacted by the incentive, marketing, and other programs of vehicle manufacturers. •We are dependent upon the success and continued financial viability of the vehicle manufacturers and distributors with which we hold franchises. In addition, we rely on various third-party suppliers for key products and services. •We are subject to restrictions imposed by, and significant influence from, vehicle manufacturers that may adversely impact our business, financial condition, results of operations, cash flows, and prospects, including our ability to acquire additional stores. •We are investing significantly in various strategic initiatives, and if they are not successful, we will have incurred significant expenses without the benefit of improved financial results. •If we are not able to maintain and enhance our retail brands and reputation or to attract consumers to our own digital channels, or if events occur that damage our retail brands, reputation, or sales channels, our business and financial results may be harmed. •We are subject to various risks associated with originating and servicing auto finance loans through indirect lending to customers, any of which could have an adverse effect on our business. •New laws, regulations, or governmental policies in response to climate change, including fuel economy and greenhouse gas emission standards, or changes to existing standards, could adversely impact our business, results of operations, financial condition, cash flow, and prospects. •We are subject to numerous legal and administrative proceedings, which, if the outcomes are adverse to us, could materially adversely affect our business, results of operations, financial condition, cash flows, and prospects. •Our operations are subject to extensive governmental laws and regulations. If we are found to be in purported violation of or subject to liabilities under any of these laws or regulations, or if new laws or regulations are enacted that adversely affect our operations, our business, operating results, and prospects could suffer. •We depend on information technology for our business and are subject to risks related to cybersecurity threats and incidents, including those affecting our third-party suppliers and other service providers. A failure of our information systems or any cybersecurity breaches or unauthorized disclosure of confidential information could have a material adverse effect on our business, disrupt our business, and adversely impact our reputation and results of operations. 60 Table of Contents •Our debt agreements contain certain financial ratios and other restrictions on our ability to conduct our business, and our substantial indebtedness could adversely affect our financial condition and operations and prevent us from fulfilling our debt service obligations. •We are subject to interest rate risk in connection with our vehicle floorplan payables, revolving credit facility, commercial paper program, and warehouse facilities that could have a material adverse effect on our profitability. •Goodwill and other intangible assets comprise a significant portion of our total assets. We must test our goodwill and other intangible assets for impairment at least annually, which could result in a material, non-cash write-down of goodwill or franchise rights and could have a material adverse impact on our results of operations and shareholders’ equity. •Our minority equity investments with readily determinable fair values are required to be measured at fair value each reporting period, which could adversely impact our results of operations and financial condition. The carrying values of our minority equity investments that do not have readily determinable fair values are required to be adjusted for observable price changes or impairments, both of which could adversely impact our results of operations and financial condition. •Natural disasters and adverse weather events, including the effects of climate change, can disrupt our business. Please refer to this Quarterly Report on Form 10-Q and our most recent Annual Report on Form 10-K for additional discussion of the foregoing risks. These forward-looking statements speak only as of the date of this report, and we undertake no obligation to update any forward-looking statements to reflect subsequent events or circumstances. Additional Information Investors and others should note that we announce material financial information using our company website (www.autonation.com), our investor relations website (investors.autonation.com), our newsroom website (newsroom.autonation.com), SEC filings, press releases, public conference calls, and webcasts. Information about AutoNation, its business, and its results of operations may also be announced by posts on AutoNation’s X feed (www.x.com/autonation). The information that we post on our websites and social media channels could be deemed to be material information. As a result, we encourage investors, the media, and others interested in AutoNation to review the information that we post on those websites and social media channels. Our social media channels may be updated from time to time on our investor relations website. The information on or accessible through our websites and social media channels is not incorporated by reference in this Quarterly Report on Form 10-Q.