UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~September~~March 3031, ~~2025~~2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 1-13107

AUTONATION, INC.

(Exact name of registrant as specified in its charter)

Delaware

73-1105145

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

200 SW 1st Avenue

Fort Lauderdale

Florida

33301

(Address of principal executive offices)

(Zip Code)

(954)769-6000

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, par value $0.01 per share

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ

As of ~~October~~April 2129, ~~2025~~2026, the registrant had 3633,~~472~~461,~~177~~495 shares of common stock outstanding.

AUTONATION, INC.

FORM 10-Q

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
		Page
Item 1.	Financial Statements
	Unaudited Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024	1
	Unaudited Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025	1
	Unaudited Condensed Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2025 and 2024	2
	Unaudited Condensed Consolidated Statements of Income for the Three Months Ended March 31, 2026 and 2025	2
	Unaudited Condensed Consolidated Statements of Shareholders’ Equity for the Three and Nine Months Ended September 30, 2025 and 2024	3
	Unaudited Condensed Consolidated Statements of Shareholders’ Equity for the Three Months Ended March 31, 2026 and 2025	3
	Unaudited Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024	4
	Unaudited Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025	4
	Notes to Unaudited Condensed Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3226
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	6351
Item 4.	Controls and Procedures	6553
PART II. OTHER INFORMATION
Item 1A.	Risk Factors	6654
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	6654
Item 5.	Other Information	6654
Item 6.	Exhibits	6755

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

AUTONATION, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except share and per share data)

	September 30,2025		December 31,2024
	March 31,2026		December 31,2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	9765.65	$	5958.86
Receivables, net	~~880~~829.42		~~1,066~~948.34
Inventory	3,~~489~~444.24		3,~~360~~404.09
Other current assets	~~220~~241.80		~~211~~235.98
Total Current Assets	4,~~688~~580.01		4,~~698~~647.07
AUTO LOANS RECEIVABLE, net of allowance for credit losses of $89.0 million and $54.8 million, respectively	1,953.9		1,057.1
AUTO LOANS RECEIVABLE, net of allowance for credit losses of $101.3 million and $95.4 million, respectively	2,371.2		2,140.2
PROPERTY AND EQUIPMENT, net of accumulated depreciation of $2.4 billion and $2.3 billion, respectively	3,929.4		3,791.9
PROPERTY AND EQUIPMENT, net of accumulated depreciation of $2.5 billion and $2.5 billion, respectively	3,949.8		3,956.2
OPERATING LEASE ASSETS	~~462~~441.71		~~391~~456.14
GOODWILL	1,~~399~~407.54		1,~~452~~409.93
OTHER INTANGIBLE ASSETS, NET	1,~~007~~028.06		~~905~~1,028.9
OTHER ASSETS	~~760~~845.01		~~704~~753.85
Total Assets	$	14,~~200~~623.53	$	1314,~~001~~392.72
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Vehicle floorplan payable - trade	$	2,~~161~~102.48	$	2,~~216~~200.26
Vehicle floorplan payable - non-trade	1,~~635~~656.2		1,~~493~~627.57
Accounts payable	~~351~~376.79		~~376~~369.69
Commercial paper	~~200~~320.0		~~630~~200.0
Current maturities of long-term debt	~~469~~74.28		~~518~~74.57
Current portion of non-recourse debt	5777.4		2863.38
Accrued payroll and benefits	302.5		257.0
Other current liabilities	1,018.3		1,003.9
Other current liabilities	731.8		792.1
Total Current Liabilities	5,626.4		5,540.6
Total Current Liabilities	5,909.2		6,312.2
LONG-TERM DEBT, NET OF CURRENT MATURITIES	3,721.1		3,704.8
LONG-TERM DEBT, NET OF CURRENT MATURITIES	3,163.9		2,613.6
NON-RECOURSE DEBT, NET OF CURRENT PORTION	2,108.2		1,880.8
NON-RECOURSE DEBT, NET OF CURRENT PORTION	1,683.6		797.7
NONCURRENT OPERATING LEASE LIABILITIES	418.4		431.8
NONCURRENT OPERATING LEASE LIABILITIES	434.9		356.9
DEFERRED INCOME TAXES	112.9		94.1
DEFERRED INCOME TAXES	98.2		83.1
OTHER LIABILITIES	409.4		399.0
OTHER LIABILITIES	399.1		380.9
COMMITMENTS AND CONTINGENCIES (Note 15)
SHAREHOLDERS’ EQUITY:
Common stock, par value $0.01 per share; 1,500,000,000 shares authorized; 63,562,149 shares issued at September 30, 2025, and December 31, 2024, including shares held in treasury	0.6		0.6
Common stock, par value $0.01 per share; 1,500,000,000 shares authorized; 63,562,149 shares issued at March 31, 2026, and December 31, 2025, including shares held in treasury	0.6		0.6
Additional paid-in capital	217.30		2032.30
Retained earnings	56,~~804~~171.0		5,~~331~~976.81
Treasury stock, at cost; 26,686,647 and 24,527,869 shares held, respectively	(3,314.3)		(2,895.4)
Treasury stock, at cost; 29,648,877 and 28,362,366 shares held, respectively	(3,951.7)		(3,667.6)
Total Shareholders’ Equity	2,~~511~~226.69		2,~~457~~341.31
Total Liabilities and Shareholders’ Equity	$	14,~~200~~623.53	$	1314,~~001~~392.72

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

Table of Contents

AUTONATION, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share data)

Three Months Ended

~~Nine Months Ended~~

September 30,

March 31,

2025

2024

2025

2024

2026

2025

Revenue:

New vehicle

3,~~415~~011.60

3,~~171~~248.21

~~10,060.0~~

~~9,273.0~~

Used vehicle

21,~~015~~963.78

1,~~901~~922.4

~~5,923.1~~

~~5,808.6~~

Parts and service

1,~~226~~220.29

1,~~170~~164.90

~~3,611.3~~

~~3,460.4~~

Finance and insurance, net

~~374~~352.80

~~335~~352.45

~~1,095.0~~

~~994.1~~

Other

54.14

73.24

~~12.8~~

~~16.1~~

TOTAL REVENUE

76,~~037~~552.41

6,~~586~~690.14

~~20,702.2~~

~~19,552.2~~

Cost of sales:

New vehicle

32,~~264~~866.65

23,~~994~~073.12

~~9,550.7~~

~~8,709.6~~

Used vehicle

1,~~900~~842.84

1,~~790~~797.29

~~5,558.3~~

~~5,474.5~~

Parts and service

~~629~~627.25

~~612~~596.73

~~1,848.0~~

~~1,809.8~~

Other

4.46

6.3.1

~~11.5~~

~~14.5~~

TOTAL COST OF SALES

5,~~799~~341.0

5,~~403~~470.35

~~16,968.5~~

~~16,008.4~~

Gross profit:

New vehicle

~~151~~144.05

~~177~~174.19

~~509.3~~

~~563.4~~

Used vehicle

~~114~~121.94

~~111~~124.25

~~364.8~~

~~334.1~~

Parts and service

~~597~~593.04

~~558~~567.27

~~1,763.3~~

~~1,650.6~~

Finance and insurance

~~374~~352.80

~~335~~352.45

~~1,095.0~~

~~994.1~~

Other

(0.72)

0.93

~~1.3~~

~~1.6~~

TOTAL GROSS PROFIT

1,~~238~~211.41

1,~~182~~219.89

~~3,733.7~~

~~3,543.8~~

AUTONATION FINANCE INCOME (LOSS)

1.5

(6.2)

3.6

(10.5)

AUTONATION FINANCE INCOME

9.4

0.1

Selling, general, and administrative expenses

~~850~~842.12

~~811~~821.39

~~2,526.7~~

~~2,430.2~~

Depreciation and amortization

6463.20

61.38

~~189.9~~

~~179.5~~

Goodwill impairment

—

65.3

—

Other expense, net

1.0

0.3

Franchise rights impairment

—

71.7

—

OPERATING INCOME

314.3

336.0

Other income, net

(46.8)

(46.7)

(42.3)

(42.4)

OPERATING INCOME

372.4

350.7

926.0

966.0

Non-operating income (expense) items:

Floorplan interest expense

(4741.58)

(6046.5)

~~(139.3)~~

~~(163.8)~~

Other interest expense

(4548.10)

(4442.93)

~~(133.6)~~

~~(136.3)~~

Other income, net

7.8

2.1

6.9

9.0

Other income (loss), net

51.2

(13.2)

INCOME BEFORE INCOME TAXES

~~287~~275.67

~~247~~234.40

~~660.0~~

~~674.9~~

Income tax provision

7270.53

6158.65

~~183.0~~

~~168.8~~

NET INCOME

~~215~~205.14

~~185~~175.85

~~477.0~~

~~506.1~~

BASIC EARNINGS PER SHARE:

Earnings per share

5.7292

4.6650

~~12.49~~

~~12.40~~

Weighted average common shares outstanding

3734.67

39.90

~~38.2~~

~~40.8~~

DILUTED EARNINGS PER SHARE:

Earnings per share

5.6585

4.6145

~~12.36~~

~~12.31~~

Weighted average common shares outstanding

3835.1

4039.34

~~38.6~~

~~41.1~~

COMMON SHARES OUTSTANDING, net of treasury stock, at period end

3633.9

3937.69

~~36.9~~

~~39.6~~

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

Table of Contents

AUTONATION, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(In millions, except share data)

	Nine Months Ended September 30, 2025
	Three Months Ended March 31, 2026
	Common Stock			AdditionalPaid-InCapital		RetainedEarnings		TreasuryStock		Total
	Shares	Amount
BALANCE AT DECEMBER 31, 2024	63,562,149	$	0.6	$	20.3	$	5,331.8	$	(2,895.4)	$	2,457.3
BALANCE AT DECEMBER 31, 2025	63,562,149	$	0.6	$	32.0	$	5,976.1	$	(3,667.6)	$	2,341.1
Net income	—	—		—		~~175~~205.54		—		~~175~~205.54
Repurchases of common stock, including excise tax	—	—		—		—		(~~226~~302.6)		(~~226~~302.6)
Stock-based compensation expense	—	—		1617.73		—		—		1617.73
Shares awarded under stock-based compensation plans, net of shares withheld for taxes	—	—		(3342.73)		~~(4.8)~~—		18.85		(1923.78)
BALANCE AT MARCH 31, 2025	63,562,149	$	0.6	$	3.3	$	5,502.5	$	(3,103.2)	$	2,403.2
Cumulative effect of change in accounting principle - internal-use software	—	—		—		(10.5)		—		(10.5)
Net income	—	—		—		86.4		—		86.4
BALANCE AT MARCH 31, 2026	63,562,149	$	0.6	$	7.0	$	6,171.0	$	(3,951.7)	$	2,226.9
Repurchases of common stock, including excise tax	—	—		—		—		(29.3)		(29.3)
Stock-based compensation expense	—	—		8.9		—		—		8.9
Shares awarded under stock-based compensation plans, net of shares withheld for taxes	—	—		(0.3)		—		0.6		0.3
BALANCE AT JUNE 30, 2025	63,562,149	$	0.6	$	11.9	$	5,588.9	$	(3,131.9)	$	2,469.5
Net income	—	—		—		215.1		—		215.1
Repurchases of common stock, including excise tax	—	—		—		—		(182.8)		(182.8)
Stock-based compensation expense	—	—		9.9		—				9.9
Shares awarded under stock-based compensation plans, net of shares withheld for taxes	—	—		(0.5)		—		0.4		(0.1)
BALANCE AT SEPTEMBER 30, 2025	63,562,149	$	0.6	$	21.3	$	5,804.0	$	(3,314.3)	$	2,511.6

	Nine Months Ended September 30, 2024
	Three Months Ended March 31, 2025
	Common Stock			AdditionalPaid-InCapital		RetainedEarnings		TreasuryStock		Total
	Shares	Amount
BALANCE AT DECEMBER 31, 2023	63,562,149	$	0.6	$	22.4	$	4,643.0	$	(2,454.6)	$	2,211.4
BALANCE AT DECEMBER 31, 2024	63,562,149	$	0.6	$	20.3	$	5,331.8	$	(2,895.4)	$	2,457.3
Net income	—	—		—		~~190~~175.15		—		~~190~~175.15
Repurchases of common stock, including excise tax	—	—		—		—		(38226.86)		(38226.86)
Stock-based compensation expense	—	—		1416.17		—		—		1416.17
Shares awarded under stock-based compensation plans, net of shares withheld for taxes	—	—		(3433.57)		(3.4.8)		2018.98		(1719.07)
BALANCE AT MARCH 31, 2024	63,562,149	$	0.6	$	2.0	$	4,829.7	$	(2,472.5)	$	2,359.8
BALANCE AT MARCH 31, 2025	63,562,149	$	0.6	$	3.3	$	5,502.5	$	(3,103.2)	$	2,403.2
Net income	—	—		—		130.2		—		130.2
Repurchases of common stock, including excise tax	—	—		—		—		(314.4)		(314.4)
Stock-based compensation expense	—	—		7.6		—		—		7.6
Shares awarded under stock-based compensation plans, net of shares withheld for taxes	—	—		(0.8)		—		0.8		—
BALANCE AT JUNE 30, 2024	63,562,149	$	0.6	$	8.8	$	4,959.9	$	(2,786.1)	$	2,183.2
Net income	—	—		—		185.8		—		185.8
Repurchases of common stock, including excise tax	—	—		—		—		(5.7)		(5.7)
Stock-based compensation expense	—	—		8.1		—		—		8.1
Shares awarded under stock-based compensation plans, net of shares withheld for taxes	—	—		(0.5)		—		0.3		(0.2)
BALANCE AT SEPTEMBER 30, 2024	63,562,149	$	0.6	$	16.4	$	5,145.7	$	(2,791.5)	$	2,371.2

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

Table of Contents

AUTONATION, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

	Nine Months Ended
	Three Months Ended
	September 30,
	March 31,
	2025		2024
	2026		2025
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Net income	$	~~477~~205.04	$	~~506~~175.15
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	~~189~~63.90		~~179~~61.58
Amortization of debt issuance costs and accretion of debt discounts	62.38		72.0
Stock-based compensation expense	3517.53		2916.87
Provision for credit losses on auto loans receivable	6119.86		3419.02
Deferred income tax provision	1522.12		32.09
Net gain related to business/property dispositions	(6.6)		(54.6)
(Gain) loss on equity investments	(54.0)		11.5
Goodwill impairment	65.3		—
Loss on corporate-owned life insurance asset	2.9		1.9
Franchise rights impairment	71.7		—
Other	0.9		(1.7)
Non-cash impairment charges	6.7		10.2
Loss on equity investments	10.1		8.5
Gain on corporate-owned life insurance asset	(16.2)		(16.1)
Other	(1.2)		2.2
(Increase) decrease, net of effects from business acquisitions and divestitures:
Receivables	~~182~~119.2		~~116~~43.60
Auto loans receivable, net	(~~972~~253.85)		(~~588~~365.34)
Inventory	(7443.39)		~~(589~~169.8)2
Other assets	34(2.19)		1629.8
Increase (decrease), net of effects from business acquisitions and divestitures:
Vehicle floorplan payable - trade	(40102.92)		~~511~~(186.95)
Accounts payable	~~(26~~8.6)5		(4445.24)
Other liabilities	~~(55~~16.7)9		3213.30
Net cash provided by (used in) operating activities	~~(38~~22.6)2		~~164~~(52.95)
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES:
Purchases of property and equipment	(~~223~~56.14)		(~~262~~75.2)
Cash received from business divestitures, net of cash relinquished	1612.17		~~156.0~~—
Cash paid for business acquisitions, net of cash acquired	~~(348.4)~~—		—(69.6)
Collections on auto loans receivable acquired through third-party dealers	~~14.~~2.9		655.17
Other	11.6		9.1
Investments in equity securities	(11.5)		—
Net cash used in investing activities	(529.6)		(32.0)
Other	3.4		3.0
Net cash used in investing activities	(48.9)		(136.1)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES:
Repurchases of common stock	(~~429~~301.80)		(~~355~~220.6)
Proceeds from 5.89% Senior Notes due 2035	~~500.0~~—		—500.0
Net payments of commercial paper	(430.0)		(90.0)
Net proceeds from (payments of) commercial paper	120.0		(290.0)
Proceeds from non-recourse debt	21,~~007~~102.92		~~1,021~~407.50
Payments of non-recourse debt	(~~1,090~~858.05)		(~~635~~153.0)
Payment of debt issuance costs	(103.14)		(14.59)
Net proceeds from (payments of) vehicle floorplan payable - non-trade	7436.63		(~~24.~~0.9)
Payments of other debt obligations	(125.30)		(93.73)
Payments of tax withholdings for stock-based awards	(2023.18)		(1719.69)
Proceeds from the exercise of stock options	~~0.6~~—		0.42
Net cash provided by (used in) financing activities	590.8		(111.5)
Net cash provided by financing activities	66.8		214.6
INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	2240.61		2126.40
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH at beginning of period	~~103~~85.48		77103.04
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH at end of period	$	~~126~~125.09	$	98129.4

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements

Table of Contents

AUTONATION, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data)

1.INTERIM FINANCIAL STATEMENTS

Business and Basis of Presentation

AutoNation, Inc., through its subsidiaries, is one of the largest automotive retailers in the United States. As of ~~September~~March 3031, ~~2025~~2026, we owned and operated ~~323~~324 new vehicle franchises from 244 stores located in the United States, predominantly in major metropolitan markets in the Sunbelt region. Our stores sell 30 different new vehicle brands. The core brands of new vehicles that we sell, representing approximately 8988% of the new vehicles that we sold during the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, ~~BMW,~~ Mercedes-Benz, BMW, Stellantis, and Volkswagen (including Audi and Porsche). As of ~~September~~March 3031, ~~2025~~2026, we also owned and operated 52 AutoNation-branded collision centers, 2625 AutoNation USA used vehicle stores, 4 AutoNation-branded automotive auction operations, 3 parts distribution centers, a mobile automotive repair and maintenance business, 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 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. For convenience, the terms “AutoNation,” “Company,” and “we” are used to refer collectively to AutoNation, Inc. and its subsidiaries, unless otherwise required by the context. Our store and other operations are conducted by our subsidiaries.

The accompanying Unaudited Condensed Consolidated Financial Statements include the accounts of AutoNation, Inc. and its subsidiaries; intercompany accounts and transactions have been eliminated. The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. Additionally, operating results for interim periods are not necessarily indicative of the results that can be expected for a full year. The Unaudited Condensed Consolidated Financial Statements herein should be read in conjunction with our audited Consolidated Financial Statements and notes thereto included within our most recent Annual Report on Form 10-K. These Unaudited Condensed Consolidated Financial Statements reflect, in the opinion of management, all material adjustments (which include only normal recurring adjustments) necessary to fairly state, in all material respects, our financial position and results of operations for the periods presented.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. In preparing these financial statements, management has made its best estimates and judgments of certain amounts included in the financial statements. We base our estimates and judgments on historical experience and other assumptions that we believe are reasonable. However, application of these accounting policies involves the exercise of judgment and use of assumptions as to future uncertainties and, as a result, actual results could differ materially from these estimates. We periodically evaluate estimates and assumptions used in the preparation of the financial statements and make changes on a prospective basis when adjustments are necessary. Such estimates and assumptions affect, among other things, our goodwill, indefinite-lived intangible asset, and long-lived asset valuations; inventory valuation; equity investment valuation; assets held for sale; assessments of variable consideration and related constraints associated with retrospective commissions; accruals for chargebacks against revenue recognized from the sale of finance and insurance products; accruals related to self-insurance programs; certain legal proceedings; assessment of the annual income tax expense; valuation of deferred income taxes and income tax contingencies; the allowance for expected credit losses; and measurement of performance-based compensation costs.

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.

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AUTONATION, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

Recent Accounting Pronouncements

InDisaggregation ~~December~~of ~~2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-09,~~ Income ~~Taxes~~Statement (Topic 740): Improvements to Income Tax Disclosures, that requires presentation of specific categories of reconciling items, as well as reconciling items that meet a quantitative threshold, in the reconciliation between the income tax provision and the income tax provision using statutory tax rates. The accounting standard update also requires disclosure of income taxes paid disaggregated by jurisdiction with separate disclosure of income taxes paid to individual jurisdictions that meet a quantitative threshold. The amendments in this accounting standard update are effective for annual periods beginning after December 15, 2024, on a prospective basis. Early adoption and retrospective application are permitted. We do not expect the adoption of this accounting standard update to have an impact on our consolidated financial statements, but will require certain additional disclosures. Expenses

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, that requires disclosure of the amounts of purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each relevant expense line item on the income statement. The accounting standard update also requires a qualitative description of other amounts included in each relevant expense line item on the income statement that are not separately disclosed. In addition, entities are required to disclose the nature and amount of selling expenses. The amendments in this accounting standard update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. We do not expect the adoption of this accounting standard update to have an impact on our consolidated financial statements, but will require certain additional disclosures.

InCapitalization ~~September~~of ~~2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other -~~ Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, that amends the accounting guidance on the timing of capitalization of internally-developed software costs by removing references to software development stages, and provides guidance on how to determine when it is probable that a project will be completed and a software will be used to perform the function intended. The accounting standard update is effective for interim and annual reporting periods beginning after December 15, 2027, and should be applied using either of the following transition methods: (i) a prospective transition method, (ii) a modified transition approach based on the status of the project and whether software costs were capitalized before the date of adoption, or (iii) a retrospective transition approach. Early adoption is permitted as of the beginning of an annual reporting period. We are currently evaluating the method of adoption and the impact of the provisions of the accounting standard.

In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, that amends the accounting guidance on the timing of capitalization of internally-developed software costs by removing references to software development stages, and provides guidance on how to determine when it is probable that a project will be completed and a software will be used to perform the function intended. The accounting standard update must be applied using either of the following transition methods: (i) a prospective transition method, (ii) a modified transition approach based on the status of the project and whether software costs were capitalized before the date of adoption, or (iii) a retrospective transition approach.

The accounting standard update is effective beginning after December 15, 2027, with early adoption permitted as of the beginning of an annual reporting period. We adopted the accounting standard update effective January 1, 2026, using the modified transition approach. Under this approach, the amendments are applied to new software costs on a prospective basis, except for capitalized software costs for in-process projects that did not meet the capitalization requirements under the new guidance on the date of adoption. We derecognized capitalized software costs for in-process projects through a net after-tax cumulative effect adjustment to retained earnings of $10.5 million as of the date of adoption. The adoption of the accounting standard did not have material impact on our consolidated financial statements.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

2.REVENUE RECOGNITION

Disaggregation of Revenue

The significant majority of our revenue is from contracts with customers. Taxes assessed by governmental authorities that are directly imposed on revenue transactions are excluded from revenue and expenses. In the following tables, revenue is disaggregated by major lines of goods and services and timing of transfer of goods and services. The tables also include a reconciliation of the disaggregated revenue to reportable segment revenue.

Three Months Ended September 30, 2025

Three Months Ended March 31, 2026

Domestic

Import

Premium Luxury

Corporate and other(1)

Total

Major Goods/Service Lines

New vehicle

~~1,001~~826.48

1,~~145~~035.3

1,~~268~~148.9

—

3,~~415~~011.60

Used vehicle

~~531~~499.04

~~561~~554.50

~~737~~734.62

~~185~~176.62

21,~~015~~963.78

Parts and service

~~293~~282.60

~~337~~334.5

~~440~~454.94

~~154~~150.20

1,~~226~~220.29

Finance and insurance, net

~~118~~107.46

~~126~~122.03

~~111~~103.86

18.65

~~374~~352.80

Other

0.98

2.80

0.24

1.2

54.14

1,~~945~~716.36

2,~~173~~048.1

2,~~559~~441.45

~~359~~345.69

76,~~037~~552.41

Timing of Revenue Recognition

Goods and services transferred at a point in time

1,~~714~~494.83

1,~~905~~787.5

2,~~181~~051.87

~~252~~246.87

65,~~054~~580.92

Goods and services transferred over time(2)

~~230~~222.53

~~267~~260.6

~~377~~389.68

~~106~~99.82

~~982~~971.59

1,~~945~~716.36

2,~~173~~048.1

2,~~559~~441.45

~~359~~345.69

76,~~037~~552.41

Three Months Ended September 30, 2024

Three Months Ended March 31, 2025

Domestic

Import

Premium Luxury

Corporate and other(1)

Total

Major Goods/Service Lines

New vehicle

~~872~~860.52

1,~~078~~062.0

1,~~220~~325.79

—

3,~~171~~248.21

Used vehicle

~~507~~486.21

~~543~~546.37

~~679~~712.31

~~171~~177.65

1,~~901~~922.4

Parts and service

~~290~~269.80

~~307~~318.16

~~422~~424.84

~~150~~152.20

1,~~170~~164.90

Finance and insurance, net

101.28

~~115~~118.45

~~103~~114.21

1518.61

~~335~~352.45

Other

30.23

21.45

—

1.6

73.24

1,~~774~~717.94

2,~~046~~047.23

2,~~426~~576.05

~~339~~349.02

6,~~586~~690.14

Timing of Revenue Recognition

Goods and services transferred at a point in time

1,~~557~~509.04

1,~~804~~790.45

2,~~064~~207.03

~~236~~245.23

5,~~661~~752.65

Goods and services transferred over time(2)

~~217~~208.90

~~241~~256.8

~~362~~369.02

~~102~~103.89

~~924~~937.59

1,~~774~~717.94

2,~~046~~047.23

2,~~426~~576.05

~~339~~349.02

6,~~586~~690.14

(1) “Corporate and other” is comprised of our non-franchised businesses, including AutoNation USA used vehicle stores, collision centers, parts distribution centers, mobile service, and auction operations.

(2) Represents revenue recognized during the period for automotive repair and maintenance services.

Transaction Price Allocated to Remaining Performance Obligations

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

	Nine Months Ended September 30, 2025
	Domestic		Import		Premium Luxury		Corporate and other(1)		Total
Major Goods/Service Lines
New vehicle	$	2,846.7	$	3,336.9	$	3,876.4	$	—	$	10,060.0
Used vehicle	1,544.3		1,657.8		2,172.0		549.0		5,923.1
Parts and service	851.9		999.1		1,302.7		457.6		3,611.3
Finance and insurance, net	338.7		368.2		340.2		47.9		1,095.0
Other	1.6		6.7		0.4		4.1		12.8
	$	5,583.2	$	6,368.7	$	7,691.7	$	1,058.6	$	20,702.2
Timing of Revenue Recognition
Goods and services transferred at a point in time	$	4,918.9	$	5,566.5	$	6,567.4	$	743.5	$	17,796.3
Goods and services transferred over time(2)	664.3		802.2		1,124.3		315.1		2,905.9
	$	5,583.2	$	6,368.7	$	7,691.7	$	1,058.6	$	20,702.2

date of purchase. We satisfy our performance obligations related to this program and recognize revenue as the maintenance services are rendered, since the customer benefits when we have completed the maintenance service.

	Nine Months Ended September 30, 2024
	Domestic		Import		Premium Luxury		Corporate and other(1)		Total
Major Goods/Service Lines
New vehicle	$	2,528.8	$	3,152.1	$	3,592.1	$	—	$	9,273.0
Used vehicle	1,566.4		1,645.1		2,103.2		493.9		5,808.6
Parts and service	875.9		891.2		1,237.3		456.0		3,460.4
Finance and insurance, net	295.0		349.8		306.4		42.9		994.1
Other	4.9		6.3		0.3		4.6		16.1
	$	5,271.0	$	6,044.5	$	7,239.3	$	997.4	$	19,552.2
Timing of Revenue Recognition
Goods and services transferred at a point in time	$	4,625.2	$	5,341.2	$	6,177.1	$	687.2	$	16,830.7
Goods and services transferred over time(2)	645.8		703.3		1,062.2		310.2		2,721.5
	$	5,271.0	$	6,044.5	$	7,239.3	$	997.4	$	19,552.2

(1) “Corporate and other” is comprised of our non-franchised businesses, including AutoNation USA used vehicle stores, collision centers, parts distribution centers, auction operations, and AutoNation Mobile Service. (2) Represents revenue recognized during the period for automotive repair and maintenance services.

Transaction Price Allocated to Remaining Performance Obligations

We sell a vehicle maintenance program (the AutoNation Vehicle Care Program or “VCP”) under which a customer purchases a specific number of maintenance services to be redeemed at an AutoNation location over a five-year term from the date of purchase. We satisfy our performance obligations related to this program and recognize revenue as the maintenance services are rendered, since the customer benefits when we have completed the maintenance service.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

The following table includes estimated revenue expected to be recognized in the future related to VCP performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period:

	Revenue Expected to Be Recognized by Period
	Total		Next 12 Months		13 - 36 Months		37 - 60 Months
Revenue expected to be recognized on VCP contracts sold as of period end	$	115.74	$	4041.80	$	55.86	$	1918.18

As a practical expedient, since all other automotive repair and maintenance services are generally performed within one year or less, we do not disclose estimated revenue expected to be recognized in the future for all other automotive repair and maintenance performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period or when we expect to recognize such revenue.

Contract Assets and Liabilities

When the timing of our provision of goods or services is different from the timing of payments made by our customers, we recognize either a contract asset (performance precedes contractual due date) or a contract liability (customer payment precedes performance). Contract assets primarily relate to our right to consideration for work in process not yet billed at the reporting date associated with automotive repair and maintenance services, as well as our estimate of variable consideration that has been included in the transaction price for certain finance and insurance products (retrospective commissions). These contract assets are reclassified to receivables when the right to consideration becomes unconditional. Contract liabilities primarily relate to upfront payments received from customers for the sale of VCP contracts.

Our receivables from contracts with customers are included in Receivables, net, our current contract asset is included in Other Current Assets, our long-term contract asset is included in Other Assets, our current contract liability is included in Other Current Liabilities, and our long-term contract liability is included in Other Liabilities in our Unaudited Condensed Consolidated Balance Sheets.

The following table provides the balances of our receivables from contracts with customers and our current and long-term contract assets and contract liabilities:

	September 30, 2025		December 31, 2024
	March 31, 2026		December 31, 2025
Receivables from contracts with customers, net	$	~~621~~600.91	$	~~774~~693.04
Contract Asset (Current)	$	23.27	$	2024.41
Contract Asset (Long-Term)	$	23.49	$	2.87
Contract Liability (Current)	$	44.98	$	4345.92
Contract Liability (Long-Term)	$	74.94	$	7274.97

The change in the balances of our contract assets and contract liabilities primarily result from the timing differences between our performance and the customer’s payment, as well as changes in the estimated transaction price related to variable consideration for performance obligations satisfied in previous periods. The following table presents revenue recognized during the period from amounts included in the contract liability balance at the beginning of the period and adjustments to revenue related to performance obligations satisfied in previous periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	Three Months Ended March 31,
	2025		2024		2025		2024
	2026		2025
Amounts included in contract liability at the beginning of the period	$	911.54	$	910.03	$	~~30.0~~	$	~~28.3~~
Performance obligations satisfied in previous periods	$	23.54	$	0.26	$	~~1.1~~	$	~~(0.2)~~

Other significant changes include contract assets reclassified to receivables of $2016.87 million for the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026, and $2313.82 million for the ~~nine~~three months ended ~~September~~March 3031, ~~2024~~2025.

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AUTONATION, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

3.AUTONATION FINANCE INCOME ~~(LOSS)~~

AutoNation Finance (“ANF”), our captive auto finance company, provides indirect financing to qualified retail customers on vehicles we sell. ANF income ~~(loss)~~ 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 ~~(loss)~~ does not include amortization of intercompany discounts or intercompany dealer participation fees. Direct costs associated with loan originations are capitalized and amortized using the effective interest method. The following table presents the components of AutoNation Finance income ~~(loss)~~:

	Three Months Ended				Nine Months Ended
	Three Months Ended March 31,
	September 30,				September 30,
	2026		2025
	2025		2024		2025		2024
Interest margin:
Interest and fee income	$	5562.27	$	3241.9	$	~~145.7~~	$	~~81.2~~
Interest expense	(2124.24)		(1113.49)		~~(52.9)~~		~~(27.1)~~
Total interest margin	3438.03		2128.50		~~92.8~~		~~54.1~~
Provision for credit losses	(2219.05)		(18.49)		~~(60.1)~~		~~(36.3)~~
Total interest margin after provision for credit losses	1218.08		39.1		~~32.7~~		~~17.8~~
Direct expenses(1)	(109.54)		(9.30)		~~(29.1)~~		~~(28.3)~~
AutoNation Finance income (loss)	$	1.5	$	(6.2)	$	3.6	$	(10.5)
AutoNation Finance income	$	9.4	$	0.1
(1) Direct expenses are comprised primarily of compensation expenses and loan administration costs incurred by our auto finance company.

We ~~typically~~ use non-recourse funding facilities, including warehouse facilities and asset-backed term funding transactions, as well as free cash flow 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 receivable and related non-recourse debt, respectively.

4.EARNINGS PER SHARE

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the period, including vested restricted stock unit (“RSU”) awards. Diluted EPS is calculated using the treasury stock method by dividing net income by the weighted average number of shares outstanding, noted above, including the ~~dilutive~~ effect of dilutive unvested RSU awards.

The following table presents the calculation of basic and diluted EPS:

	Three Months Ended				Nine Months Ended
	Three Months Ended March 31,
	September 30,				September 30,
	2026		2025
	2025		2024		2025		2024
Net Income	$	205.4	$	175.5
Net Income	$	215.1	$	185.8	$	477.0	$	506.1
Basic weighted average common shares outstanding	34.7		39.0
Basic weighted average common shares outstanding	37.6		39.9		38.2		40.8
Effect of dilutive unvested RSUs	0.4		0.4
Dilutive effect of unvested RSUs	0.5		0.4		0.4		0.3
Diluted weighted average common shares outstanding	35.1		39.4
Diluted weighted average common shares outstanding	38.1		40.3		38.6		41.1
Basic EPS	$	5.92	$	4.50
Basic EPS	$	5.72	$	4.66	$	12.49	$	12.40
Diluted EPS	$	5.85	$	4.45
Diluted EPS	$	5.65	$	4.61	$	12.36	$	12.31

10Earnings per share during the three months ended March 31, 2026, benefited from a net gain related to minority equity investments. See Note 14 of the Unaudited Condensed Consolidated Financial Statements for more information.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

Earnings per share for the nine months ended September 30, 2025, was adversely impacted by non-cash goodwill and franchise rights impairments. See Notes 8 and 14 of the Notes to Unaudited Condensed Consolidated Financial Statements for more information.

In June 2024, our business was impacted by an outage of our dealer management system provided by CDK Global, which is used to support our dealership operations, including our sales, service, inventory, customer relationship management, and accounting functions. Access to core functions of this system was restored by the end of June 2024, and certain ancillary systems and integrations were restored by the end of July 2024, with residual impacts resolved by the end of the third quarter of 2024. As a result, our results of operations and earnings per share were negatively impacted by one-time compensation costs paid to commission-based associates to ensure business continuity in the second quarter of 2024 and by lost income from the disruption to our operations in the second and third quarters of 2024.

5.RECEIVABLES, NET

The components of receivables, net of allowances for expected credit losses, are as follows:

	September 30,2025		December 31,2024
	March 31,2026		December 31,2025
Contracts-in-transit and vehicle receivables	$	~~414~~393.74	$	~~560~~485.27
Trade receivables	~~167~~170.87		~~168~~172.56
Manufacturer receivables	~~232~~205.82		~~267~~230.16
Income taxes receivable (see Note 10)	2.1		—
Other	63.2		62.8
Other	66.5		73.8
	832.5		951.7
	883.9		1,069.6
Less: allowances for expected credit losses	(3.3)		(3.3)
Less: allowances for expected credit losses	(3.5)		(3.3)
Receivables, net	$	829.2	$	948.4
Receivables, net	$	880.4	$	1,066.3

Contracts-in-transit and vehicle receivables primarily represent receivables from financial institutions for the portion of the vehicle sales price financed by our customers. Trade receivables represent amounts due for parts and services sold, excluding amounts due from manufacturers, as well as receivables from finance organizations for commissions on the sale of finance and insurance products. Manufacturer receivables represent amounts due from manufacturers for holdbacks, rebates, incentives, floorplan assistance, and warranty claims. We evaluate our receivables for collectability based on past collection experience, current information, and reasonable and supportable forecasts.

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AUTONATION, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

6.AUTO LOANS RECEIVABLE

Auto loans receivable primarily consist of amounts due from customers related to retail vehicle sales financed through AutoNation Finance, our captive auto finance company. Auto loans receivable are presented net of an allowance for expected credit losses. Auto loans receivable represent a large group of smaller-balance homogeneous loans, which we consider to be part of one class of financing receivable and one portfolio segment for purposes of determining our allowance for expected credit losses.

Auto Loans Receivable, Net

The components of auto loans receivable, net of third -party unearned discounts and allowances for expected credit losses, at ~~September~~March 3031, ~~2025~~2026, and December 31, ~~2024~~2025, are as follows:

	September 30,2025		December 31,2024
	March 31,2026		December 31,2025
Total auto loans receivable	$	2,~~020~~444.07	$	12,~~103~~209.89
Accrued interest and fees	1214.85		814.21
Deferred loan origination costs	1013.45		411.28
Less: unearned discounts	(0.32)		(40.32)
Less: allowances for expected credit losses	(89101.03)		(5495.84)
Auto loans receivable, net	$	12,~~953~~371.92	$	12,~~057~~140.12

Credit Quality

We utilize proprietary credit scoring models to rate the risk of default for customers that apply for financing by evaluating customer credit history, including FICO scores, and certain credit application information, including information such as income, collateral, and down payment. The scoring models yield credit program tiers that reflect our internal credit risk ratings and represent the relative likelihood of repayment. The assigned credit tier influences the terms of the agreement, such as the required loan-to-value ratio and interest rate. After origination, credit tier assignments by customer are generally not updated. We monitor the credit quality of the auto loans receivable on an ongoing basis and validate the accuracy of the credit scoring models periodically. Loan performance is reviewed on a recurring basis to identify whether the assigned credit tiers adequately reflect the customers’ likelihood of repayment, and if needed, adjustments are made to the scoring models on a prospective basis.

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AUTONATION, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

Auto Loans Receivable by Major Credit Program

The following tables present auto loans receivable as of ~~September~~March 3031, ~~2025~~2026, and December 31, ~~2024~~2025, disaggregated by major credit program tier, in descending order of highest likelihood of repayment:

		Fiscal Year of Origination
As of September 30, 2025	Weighted Average FICO Score	2025		2024		2023		2022		2021		Prior to 2021		Total
As of March 31, 2026	Weighted Average FICO Score	2026		2025		2024		2023		2022		Prior to 2022		Total
Credit Program Tier(1):
Palladium	~~732~~733	$	~~490~~174.67	$	~~140~~513.83	$	—113.5	$	—	$	—	$	—	$	~~631~~801.45
Rhodium	~~698~~693	~~236~~177.67		~~109~~340.41		1288.29		09.15		—		—		~~358~~616.32
Platinum	~~652~~651	~~454~~88.98		~~399~~470.24		59323.1		145.18		20.28		01.5		~~917~~930.04
Gold	~~624~~623	~~21.~~2.9		4923.1		1738.27		012.76		4.0.5		02.76		9280.94
Silver	~~574~~575	10.95		0.2.8		90.12		0.6.5		20.45		01.43		1411.68
Bronze	~~547~~548	0.84		0.19		~~2.7~~—		0.2.0		10.21		0.26		54.20
Copper	~~558~~539	~~0.2~~—		—0.2		~~0.1~~—		—0.1		~~0.3~~—		—0.1		0.64
Total auto loans receivable		$	~~1,206~~445.20	$	~~698~~1,350.8	$	~~100~~564.4	$	276.75	$	~~10.~~1.9	$	16.81	$	2,~~020~~444.07
Current-period gross write-offs		$	~~8.3~~—	$	3014.07	$	12.2	$	14.13	$	20.71	$	0.5	$	5431.8
		Fiscal Year of Origination
As of December 31, 2024	Weighted Average FICO Score	2024		2023		2022		2021		2020		Prior to 2020		Total
As of December 31, 2025	Weighted Average FICO Score	2025		2024		2023		2022		2021		Prior to 2021		Total
Credit Program Tier(1):
Palladium	~~734~~732	$	~~194~~569.06	$	—127.0	$	—	$	—	$	—	$	—	$	~~194~~696.06
Rhodium	~~702~~695	~~147~~369.6		1698.9		010.19		—		—		—		~~164~~479.64
Platinum	651	~~525~~513.1		82359.30		152.75		41.0		1.08		0.13		~~614~~927.27
Gold	623	6425.95		2543.03		114.37		70.36		13.61		0.15		~~100~~87.27
Silver	~~574~~575	0.3.0		130.42		17.28		50.45		1.27		0.12		2113.64
Bronze	~~551~~548	0.1.0		4.0.1		0.2.3		20.81		0.69		—0.1		74.75
Copper	~~562~~549	—0.3		~~0.2~~—		—0.1		~~1.1~~—		0.2		—		10.56
Total auto loans receivable		$	~~932~~1,482.01	$	~~141~~628.85	$	488.53	$	202.62	$	47.67	$	01.31	$	12,~~103~~209.89
(1) Classified based on credit grade assigned when customer was initially approved for financing.

Allowance for Credit Losses

The allowance for credit losses represents the net credit losses expected over the remaining contractual life of our auto loans receivable. The allowance for credit losses is determined using a vintage-level statistical model that captures the relationship between historical changes in gross losses and the lifetime loss curves by month on book, credit tiers at origination, and seasonality, adjusted for expected recoveries based on historical recovery trends. The credit loss model also ~~incorporates~~considers reasonable and supportable forecasts about the future ~~utilizing~~based on a forecast of avarious macroeconomic ~~variable,~~variables ~~specifically,~~that ~~the change in U.S. disposable personal income, which~~ we believe isare ~~most~~ strongly correlated to evaluating and predicting expected credit losses of our auto loans receivable. We utilize a reasonable and supportable forecast period of one year, after which we immediately revert to historical experience.

We periodically consider whether the use of alternative variables would result in improved credit loss model accuracy and revise the model when appropriate. We also consider whether qualitative adjustments are necessary for factors that are not reflected in the quantitative methods but impact the measurement of estimated credit losses. Such adjustments include the expectations of the impact of ~~recent~~changes ~~economic~~in ~~trends~~underwriting onstandards ~~customer~~and ~~behavior.~~recent economic trends.

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(Continued)

The net loss estimate is calculated by applying the loss rates developed using the methods described above to the amortized cost basis of the auto loans receivable including accrued interest receivable. The change in the allowance for credit losses is recognized through an adjustment to the provision for credit losses. The provision for credit losses for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, reflects an increase as a result of the growth of our auto loans receivable portfolio, largely offset by a decrease in expected credit loss rates reflecting improved quality of new loan originations.

Rollforward of Allowance for Credit Losses

The following is a rollforward of our allowance for expected credit losses for auto loans receivable for the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026 and ~~2024~~2025:

	Nine Months Ended September 30,
	Three Months Ended March 31,
	2025		2024
	2026		2025
Balance as of beginning of year	$	5495.84	$	4654.38
Provision for credit losses	6119.86		3419.02
Write-offs	(5431.8)		(4414.67)
Recoveries(1)	2718.21		197.36
Balance as of end of period	$	89101.03	$	5566.09
(1) Includes proceeds from the recovery of vehicle collateral, net of costs incurred.

We also estimate expected credit losses related to unfunded loan commitments and record a liability within Other Current Liabilities in our Unaudited Condensed Consolidated Balance Sheet. The change in the liability is recognized through an adjustment to the provision for credit losses. The credit loss liability totaled $10.18 million at ~~September~~March 3031, ~~2025~~2026, and $20.89 million at December 31, ~~2024~~2025.

Past Due Auto Loans Receivable

An account is considered delinquent if 95% of the required principal and interest payments have not been received as of the date such payments were due. All loans continue to accrue interest until repayment, write-off, or when a loan reaches 75 days past due. If payment is received after a loan has stopped accruing interest due to reaching 75 days past due, the loan will be deemed current and the accrual of interest resumes. When a write-off occurs, accrued interest is written off by reversing interest income. Payments received on nonaccrual assets are recorded using a combination of the cost recovery method and the cash basis method depending on whether the related loan has been written off. In general, accounts are written off on the last business day of the month during which the earliest of the following occurs: the receivable is 120 days or more delinquent as of the last business day of the month and the related vehicle has not been repossessed, the vehicle has been repossessed and liquidated, or the related vehicle has been in repossession inventory for at least 60 days. The following table presents past due auto loans receivable, as of ~~September~~March 3031, ~~2025~~2026, and December 31, ~~2024~~2025:

	Age Analysis of Past-Due Auto Loans Receivable as of
	September 30,2025		December 31,2024
	March 31,2026		December 31,2025
31-60 Days	$	3540.15	$	2044.62
61-90 Days	97.87		510.58
Greater than 90 Days	3.64		24.72
Total Past Due	$	4851.56	$	2859.82
Current	12,~~971~~393.51		12,~~075~~150.07
Total	$	2,~~020~~444.07	$	12,~~103~~209.89

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(Continued)

7.INVENTORY AND VEHICLE FLOORPLAN PAYABLE

The components of inventory are as follows:

	September 30,2025		December 31,2024
	March 31,2026		December 31,2025
New vehicles	$	2,~~382~~384.67	$	2,~~341~~361.41
Used vehicles	~~847~~807.82		~~754~~786.17
Parts, accessories, and other	~~258~~252.85		~~264~~257.51
Inventory	$	3,~~489~~444.24	$	3,~~360~~404.09

The components of vehicle floorplan payable are as follows:

	September 30,2025		December 31,2024
	March 31,2026		December 31,2025
Vehicle floorplan payable - trade	$	2,~~161~~102.48	$	2,~~216~~200.26
Vehicle floorplan payable - non-trade	1,~~635~~656.2		1,~~493~~627.57
Vehicle floorplan payable	$	3,~~796~~759.60	$	3,~~709~~828.73

Vehicle floorplan payable-trade reflects amounts borrowed to finance the purchase of specific new and, to a lesser extent, used vehicle inventories with the corresponding manufacturers’ captive finance subsidiaries (“trade lenders”). Vehicle floorplan payable-non-trade represents amounts borrowed to finance the purchase of specific new and, to a lesser extent, used vehicle inventories with non-trade lenders, as well as amounts borrowed under our secured used vehicle floorplan facilities. Our service loaner and rental vehicle inventory, which is reflected in Other Assets and totaled $465.4 million and $455.4 million at March 31, 2026 and December 31, 2025, respectively, is also financed with vehicle floorplan payable-trade and non-trade. Changes in vehicle floorplan payable-trade are reported as operating cash flows and changes in vehicle floorplan payable-non-trade are reported as financing cash flows in the accompanying Unaudited Condensed Consolidated Statements of Cash Flows.

Our inventory costs are generally reduced by manufacturer holdbacks, incentives, floorplan assistance, and non-reimbursement-based manufacturer advertising rebates, while the related vehicle floorplan payables are reflective of the gross cost of the vehicle. The vehicle floorplan payables, as shown in the above table, may also be higher than the inventory cost due to the timing of the sale of a vehicle and payment of the related liability.

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.

At ~~September~~March 3031, ~~2025~~2026, our new vehicle floorplan facilities utilized Prime-based and SOFR-based interest rates. Our new vehicle floorplan outstanding had a weighted-average interest rate of 5.91% at ~~September~~March 3031, ~~2025~~2026, and 65.14% at December 31, ~~2024~~2025. As of ~~September~~March 3031, ~~2025~~2026, the aggregate capacity under our new vehicle floorplan facilities to finance our new vehicle inventory was approximately $4.7 billion, of which $3.2 billion had been borrowed based on the eligible new vehicle inventory that was pledged as collateral.

At ~~September~~March 3031, ~~2025~~2026, our used vehicle floorplan facilities utilized Prime-based and SOFR-based interest rates. Our used vehicle floorplan outstanding had a weighted-average interest rate of 5.61% at ~~September~~March 3031, ~~2025~~2026, and 5.82% at December 31, ~~2024~~2025. As of ~~September~~March 3031, ~~2025~~2026, the aggregate capacity under our used vehicle floorplan facilities to finance a portion of our used vehicle inventory was $~~710~~788.5 million, of which $~~629~~595.17 million had been borrowed. The remaining borrowing capacity of $81192.48 million was limited to $0.23 million based on the eligible used vehicle inventory that ~~was~~could have been pledged as collateral.

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(Continued)

8.GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill and intangible assets, net, consist of the following:

	September 30,2025		December 31,2024
	March 31,2026		December 31,2025
Goodwill	$	1,~~399~~407.54	$	1,~~452~~409.93
Franchise rights - indefinite-lived	$	~~967~~1,018.46	$	~~861~~1,018.26
Other intangibles	6830.1		6830.01
	1,035.5		929.2
	1,048.7		1,048.7
Less: accumulated amortization	(2820.51)		(2319.38)
Other intangible assets, net	$	1,~~007~~028.06	$	~~905~~1,028.9

Goodwill and our franchise rights assets are tested for impairment annually as of April 30 or more frequently when events or changes in circumstances indicate that impairment may exist.

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 impairment may exist.

Under accounting standards, we chose to make a qualitative evaluation about the likelihood of goodwill impairment for

our annual impairment testing as of April 30, 2025, 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, which relates to the mobile automotive repair and maintenance start-up business we acquired in the first quarter of 2023, we elected to perform a quantitative goodwill impairment test as of April 30, 2025, and determined that its fair value was less than its carrying value. As a result, during the three months ended June 30, 2025, we recorded a non-cash goodwill impairment charge of $65.3 million. The non-cash impairment charge is reflected as Goodwill Impairment in the accompanying Unaudited Condensed Consolidated Statements of Income. See Note 14 of the Notes to Unaudited Condensed Consolidated Financial Statements for information about our annual goodwill impairment test.

Goodwill allocated to our reporting units and changes in the carrying amount of goodwill for the nine months ended September 30, 2025, were as follows:

	Domestic		Import		PremiumLuxury		AN Finance		Other		Consolidated
Balance as of January 1, 2025
Goodwill (1)	$	363.4	$	524.3	$	739.1	$	78.4	$	1,676.0	$	3,381.2
Accumulated impairment losses (1)	(140.0)		—		(257.4)		—		(1,530.9)		(1,928.3)
	223.4		524.3		481.7		78.4		145.1		1,452.9
Acquisitions, dispositions, and other adjustments, net (2)	(1.5)		(0.9)		14.3		—		—		11.9
Impairment	—		—		—		—		(65.3)		(65.3)
Balance as of September 30, 2025
Goodwill (1)	361.9		523.4		753.4		78.4		1,676.0		3,393.1
Accumulated impairment losses (1)	(140.0)		—		(257.4)		—		(1,596.2)		(1,993.6)
	$	221.9	$	523.4	$	496.0	$	78.4	$	79.8	$	1,399.5

(1) Gross goodwill balance and accumulated impairment losses reflected in “Other” include $1.47 billion associated with our single reporting unit (prior to September 30, 2008, our reporting unit reporting structure was comprised of a single reporting unit). Gross goodwill balance reflected in “Other” also includes amounts associated with the Collision Center, Parts Center, and AutoNation Mobile Service reporting units, as applicable in a given period.

(2) Includes amounts reclassified to held for sale and related adjustments, which are presented in Other Current Assets in our Consolidated Balance Sheets as of period end.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

Intangible Assets

Our principal identifiable intangible assets are individual store rights under franchise agreements with vehicle manufacturers. Franchise rights 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 performed quantitative franchise rights impairment tests as of April 30, 2025, and as a result, we identified nine stores with franchise rights carrying values that exceeded their estimated fair values and we recorded non-cash franchise rights impairment charges of $71.7 million during the three months ended June 30, 2025.

See Note 14 of the Notes to Unaudited Condensed Consolidated Financial Statements for information about our annual franchise rights impairment tests.

9.DEBT

Non-Vehicle Long-Term Debt

Non-vehicle long-term debt consisted of the following:

Debt Description	Maturity Date	Interest Payable	~~September~~March 3031,~~2025~~2026		December 31,~~2024~~2025
4.5% Senior Notes	October 1, 2025	April 1 and October 1	$	450.0	$	450.0
3.8% Senior Notes	November 15, 2027	May 15 and November 15	$	300.0	$	300.0
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 ~~2041~~2051		~~353~~369.10		~~350~~353.09
			3,653.1		3,150.0
			3,819.0		3,803.9
Less: unamortized debt discounts and debt issuance costs			(2023.01)		(1724.94)
Less: current maturities			(~~469~~74.28)		(~~518~~74.57)
Long-term debt, net of current maturities			$	3,~~163~~721.91	$	23,~~613~~704.68

Senior Unsecured Notes and Credit Agreement

On February 24, 2025, we issued $500.0 million aggregate principal amount of 5.89% Senior Notes due 2035, which were sold at 99.995% of the aggregate principal amount. In October 2025, we repaid the outstanding $450.0 million of 4.5% Senior Notes due 2025.

The interest rates payable on our 3.8% Senior Notes and 4.75% Senior Notes are subject to adjustment upon the occurrence of certain credit rating events as provided in the indentures for these senior unsecured notes.

Under our amended and restated credit agreement, we have a $1.9 billion revolving credit facility that matures on July 18, 2028. The credit agreement also contains an accordion feature that allows us, subject to credit availability and certain other conditions, to increase the amount of the revolving credit facility, together with any added term loans, by up to $500.0 million in the aggregate. As of ~~September~~March 3031, ~~2025~~2026, we had no borrowings outstanding under our revolving credit facility. We have a $200.0 million letter of credit sublimit as part of the revolving credit facility. The amount available to be borrowed under the revolving credit facility is reduced on a dollar-for-dollar basis by the cumulative amount of any outstanding letters of credit, which was $0.4 million at ~~September~~March 3031, ~~2025~~2026, leaving a borrowing capacity under our credit agreement of $1.9 billion at ~~September~~March 3031, ~~2025~~2026.

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(Continued)

Our revolving credit facility provides for a commitment fee on undrawn amounts ranging from 0.125% to 0.20% and interest on borrowings at SOFR plus a credit spread adjustment of 0.10% or the base rate, in each case plus an applicable margin. The applicable margin ranges from 1.125% to 1.50% for SOFR borrowings and 0.125% to 0.50% for base rate borrowings. The interest rate charged for our revolving credit facility is affected by our leverage ratio.

Within the meaning of Regulation S-X, Rule 3-10, AutoNation, Inc. (the parent company) has no independent assets or operations. If guarantees of our subsidiaries were to be issued under our existing registration statement, we expect that such guarantees would be full and unconditional and joint and several, and any subsidiaries other than the guarantor subsidiaries would be minor.

Other Long-Term Debt

At ~~September~~March 3031, ~~2025~~2026, we had finance leases and other debt obligations of $~~353~~369.10 million, which are due at various dates through ~~2041~~2051.

Commercial Paper

We have a commercial paper program pursuant to which we may issue short-term, unsecured commercial paper notes on a private placement basis up to a maximum aggregate amount outstanding at any time of $1.9 billion. The interest rate for the commercial paper notes varies based on duration and market conditions. The maturities of the commercial paper notes may vary, but may not exceed 397 days from the date of issuance. Proceeds from the issuance of commercial paper notes are used to repay borrowings under the revolving credit facility, to finance acquisitions, and for strategic initiatives, working capital, capital expenditures, share repurchases, and/or other general corporate purposes. We use the revolving credit facility under our credit agreement as a liquidity backstop for borrowings under the commercial paper program. A downgrade in our credit ratings could negatively impact our ability to issue, or the interest rates for, commercial paper notes.

At ~~September~~March 3031, ~~2025~~2026, we had $~~200~~320.0 million of commercial paper notes outstanding with a weighted-average annual interest rate of 4.62% and a weighted-average remaining term of 1 day. At December 31, ~~2024~~2025, we had $~~630~~200.0 million of commercial paper notes outstanding with a weighted-average annual interest rate of 4.91% and a weighted-average remaining term of 92 days.

Non-Recourse Debt

Non-recourse debt relates to financed auto loans receivable of our captive auto finance company funded through a combination of warehouse facilities, asset-backed term funding transactions, and free cash flows from operations.

Non-recourse debt outstanding at ~~September~~March 3031, ~~2025~~2026, and December 31, ~~2024~~2025, consisted of the following:

	September 30,2025		December 31, 2024
	March 31,2026		December 31, 2025
Warehouse facilities	$	~~1,135~~994.94	$	~~801~~1,398.57
Term securitization debt of consolidated VIEs	~~608~~1,196.26		24548.76
	1,744.1		826.2
	2,191.0		1,947.3
Less: unamortized debt discounts and debt issuance costs	(35.14)		(0.2.7)
Less: current maturities	(5777.4)		(2863.38)
Non-recourse debt, net of current maturities	$	12,~~683~~108.62	$	~~797~~1,880.78

The timing of principal payments on the non-recourse debt is based on the timing of principal collections and defaults on the related auto loans receivable. The current portion of non-recourse debt represents the portion of the payments received from the auto loans receivable that are due to be distributed as principal payments on the non-recourse debt in the following period.

We recognize transfers of auto loans receivable into the warehouse facilities and term securitizations (together, “non-recourse debt”) as secured borrowings, which result in recording the auto loans receivable and the related non-recourse debt on our Unaudited Condensed Consolidated Balance Sheets. The non-recourse debt is structured to legally isolate the auto loans receivable, which can only be used as collateral to settle obligations of the related non-recourse debt. The term securitization trusts and investors and the creditors of the warehouse facilities have no recourse to our assets for payment of the debt beyond the related auto loan receivables, the amounts on deposit in reserve accounts, and the restricted cash from collections on auto loans receivable. 15

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(Continued)

Warehouse Facilities

We have three warehouse facility agreements with certain banking institutions through wholly-owned, bankruptcy-remote, special purpose entities, primarily to finance the purchase and origination of auto loans receivable. We fund auto loans receivable through these warehouse facilities, which are secured by the eligible auto loans receivable pledged as collateral.

We generally enter into warehouse facility agreements for one-year terms and typically renew the agreements annually. At ~~September~~March 3031, ~~2025~~2026, our warehouse facilities utilized SOFR-based interest rates, as well as interest rates based on a lender’s asset-backed commercial paper conduit. Our warehouse facilities had a weighted-average interest rate of 54.15% at ~~September~~March 3031, ~~2025~~2026, and 5.4.7% at December 31, ~~2024~~2025. The aggregate capacities under our warehouse facilities as of ~~September~~March 3031, ~~2025~~2026, were as follows:

	September 30,2025
	March 31,2026
Warehouse facilities:
August 2026 expiration	$	400.0
October 2026 expiration	300.0
May 2026 expiration	700.0
December 2026 expiration	700.0
Aggregate capacity	$	1,400.0
Unused capacity	$	~~264~~405.16

The remaining borrowing capacity of $~~264~~405.16 million was limited to $1.0.5 million based on the eligible auto loans receivable that have been pledged as collateral.

Term Securitizations

We have asset-backed term securitizations that were put in place to provide long-term funding for certain auto loans receivable initially funded through the warehouse facilities. In these transactions, a pool of auto loans receivable is sold to a bankruptcy-remote, special purpose entity that, in turn, transfers the receivables to a special purpose securitization trust (“term securitization trust”). The term securitization trust issues asset-backed securities, secured or otherwise supported by the transferred receivables, and the proceeds from the sale of the asset-backed securities are used to finance the securitized receivables.

We are required to evaluate the term securitization trusts for consolidation. We retain the servicing rights for the auto loans receivable that were funded through the term securitizations. In our capacity as servicer of the underlying auto loans receivable, we have the power to direct the activities of the trusts that most significantly impact the economic performance of the trusts. In addition, we have the obligation to absorb losses (subject to limitations) and the rights to receive any returns of the trusts, which could be significant. Accordingly, we are the primary beneficiary of the trusts and are required to consolidate them.

In January 2026, we issued $749.2 million in non-recourse notes payable related to asset-backed term securitizations.At March 31, 2026, non-recourse notes payable consisted of the following:

	Balance		Initial Principal Amount		Issuance Date	Interest Rate Range	Final Distribution Date
AutoNation Finance Trust 2025-1 Class A-D	$	608.2	$	700.0	5/21/2025	4.72% to 5.63%	Various dates through Sep 2032
AutoNation Finance Trust 2026-1 Class A-D	$	703.3	$	749.2	1/29/2026	3.93% to 5.07%	Various dates through Jan 2034
AutoNation Finance Trust 2025-1 Class A-D	$	493.3	$	700.0	5/21/2025	4.62% to 5.63%	Various dates through Sep 2032

Term securitization debt is expected to become due and be paid prior to the final legal maturities based on amortization of the auto loans receivable pledged as collateral. The term securitization agreements require certain funds to be held in restricted cash accounts to provide additional collateral for the borrowings or to be applied to make payments on the securitization debt. Restricted cash of consolidated VIEs under the various term securitization agreements totaled $26.8 million as of September 30, 2025, and $3.4 million as of December 31, 2024, and is included in Other Current Assets and Other Assets in our Unaudited Condensed Consolidated Balance Sheets. Auto loans receivable pledged to the term securitization debt of consolidated VIEs totaled $609.7 million as of September 30, 2025, and $24.5 million as of December 31, 2024.16

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(Continued)

Term securitization debt is expected to become due and be paid prior to the final legal maturities based on amortization of the auto loans receivable pledged as collateral. The term securitization agreements require certain funds to be held in restricted cash accounts to provide additional collateral for the borrowings or to be applied to make payments on the securitization debt. Restricted cash of consolidated VIEs under the various term securitization agreements totaled $56.9 million as of March 31, 2026, and $25.5 million as of December 31, 2025, and is included in Other Current Assets and Other Assets in our Unaudited Condensed Consolidated Balance Sheets. Auto loans receivable pledged to the term securitization debt of consolidated VIEs totaled $1.2 billion as of March 31, 2026, and $551.1 million as of December 31, 2025.

10.INCOME TAXES

Income taxes ~~receivable~~payable included in ~~Receivables,~~Other ~~net~~Current Liabilities totaled $251.12 million ~~at September 30, 2025,~~ and ~~income taxes payable included in Other Current Liabilities totaled~~ $692.06 million at ~~December~~March 31, ~~2024~~2026, ~~respectively.~~and ~~The income tax provision for the nine months ended September~~December 3031, 2025, ~~reflects the fact that the goodwill impairment charge recorded in the second quarter of 2025 was not deductible for income tax purposes~~respectively. ~~See Note 8 of the Notes to Unaudited Condensed Consolidated Financial Statements for more information.~~

We file income tax returns in the U.S. federal jurisdiction and various states. As a matter of course, various taxing authorities, including the IRS, regularly audit us. These audits may culminate in proposed assessments which may ultimately result in our owing additional taxes. With few exceptions, we are no longer subject to U.S. federal, state, and local income tax examinations by tax authorities for years before ~~2020~~2021. Currently, no tax years are under examination by the IRS and tax years from 2021 to 2023 are under examination by U.S. state jurisdictions. We believe that our tax positions comply with applicable tax law and that we have adequately provided for these matters.

It is our policy to account for interest and penalties associated with income tax obligations as a component of Income Tax Provision in the accompanying Unaudited Condensed Consolidated Statements of Income.

11.SHAREHOLDERS’ EQUITY

A summary of shares repurchased under our stock repurchase program authorized by our Board of Directors follows:

	Three Months Ended				Nine Months Ended
	Three Months Ended March 31,
	September 30,				September 30,
	2026		2025
	2025		2024		2025		2024
Shares repurchased	1.5		1.4
Shares repurchased (in actual number of shares)	834,984		36,192		2,381,634		2,232,007
Aggregate purchase price (1)	$	300.0	$	224.8
Aggregate purchase price (1)	$	181.0	$	5.6	$	434.8	$	355.6
Average purchase price per share	$	200.99	$	164.95
Average purchase price per share	$	216.81	$	156.03	$	182.56	$	159.34
(1) Excludes the excise tax imposed under the Inflation Reduction Act of $2.6 million and $1.8 million for the three months ended March 31, 2026, and March 31, 2025, respectively.
(1) Excludes the excise tax imposed under the Inflation Reduction Act of $1.8 million and $3.9 million for the three and nine months ended September 30, 2025, respectively, and $0.1 million and $3.2 million for the three and nine months ended September 30, 2024, respectively.

As of ~~September~~March 3031, ~~2025~~2026, $~~426~~776.0 million remained available under our stock repurchase limit authorized by our Board of Directors. From ~~October~~April 1, ~~2025~~2026, through ~~October~~April 2129, ~~2025~~2026, we repurchased 0.45 million shares of common stock for an aggregate purchase price of $8890.29 million (average purchase price per share of $~~218~~201.7622).

We have 5.0 million authorized shares of preferred stock, par value $0.01 per share, none of which are issued or outstanding. The Board of Directors has the authority to issue the preferred stock in one or more series and to establish the rights, preferences, and dividends of such preferred stock.

The following table presents a summary of shares of common stock issued and shares surrendered to AutoNation to satisfy tax withholding obligations, each in connection with the settlement of RSUs:

	Three Months Ended		Nine Months Ended
	Three Months Ended March 31,
	September 30,		September 30,
	2026	2025
(In actual number of shares)	2025	2024	2025	2024
Shares issued	0.3	0.3
Shares issued	3,383	3,649	321,955	343,489
Shares surrendered to AutoNation to satisfy tax withholding obligations	0.1	0.1
Shares surrendered to AutoNation to satisfy tax withholding obligations	1,314	1,401	109,948	116,547

12.ACQUISITIONS AND DIVESTITURES

We ~~purchased~~did ~~one~~not ~~Domestic~~purchase ~~store,~~any ~~one Import store, and two Premium Luxury~~ stores during the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026. We ~~did~~purchased ~~not~~one ~~purchase~~Domestic ~~any~~store ~~stores~~and one Import store during the ~~nine~~three months ended ~~September~~March 3031, ~~2024~~2025. Acquisitions are included in the Unaudited Condensed Consolidated Financial Statements from the date of acquisition. ~~The purchase price allocations for these business combinations are preliminary and subject to final adjustments, primarily related to the valuation of working capital amounts and residual goodwill.~~

2017

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The acquisitions that occurred during the ~~nine~~three months ended ~~September~~March 3031, 2025, were not material to our financial condition or results of operations. Additionally, on a pro forma basis as if the results of these acquisitions had been included in our consolidated results for the entire nine month period ended September 30, 2025, revenue and net income would not have been materially different from our reported revenue and net income for this period.

We divested one Domestic store ~~and one Import store~~ during the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026. We ~~received~~did ~~aggregate~~not ~~proceeds~~divest ofany ~~$16.1 million and recognized net gains of $1.7 million related to these divestitures. We divested seven Domestic~~ stores ~~and one Import store~~ during the ~~nine~~three months ended ~~September 30~~March 31, ~~2024~~2025. WeGains ~~received~~on ~~aggregate proceeds of $156.0 million and recognized net gains of $53.9 million related to these~~ divestitures. ~~These gains~~ are included in Other Income, Net (within Operating Income) in our Unaudited Condensed Consolidated Statements of Income. The financial condition and results of operations of ~~these~~this ~~businesses~~business were not material to our consolidated financial statements.

13.CASH FLOW INFORMATION

Cash, Cash Equivalents, and Restricted Cash

The total amounts presented on our statements of cash flows include cash, cash equivalents, and restricted cash. Restricted cash includes additional collateral for non-recourse debt borrowings and collections on auto loans receivable that are due to be distributed to non-recourse debt holders in the following period. The following table provides a reconciliation of cash and cash equivalents reported on our Unaudited Condensed Consolidated Balance Sheets to the total amounts reported on our Unaudited Condensed Consolidated Statements of Cash Flows:

	September 30,2025		December 31,2024
	March 31,2026		December 31,2025
Cash and cash equivalents	$	9765.65	$	5958.86
Restricted cash included in Other Current Assets	2654.57		4125.73
Restricted cash included in Other Assets	15.97		1.9
Total cash, cash equivalents, and restricted cash	$	~~126~~125.09	$	~~103~~85.48

Non-Cash Investing and Financing Activities

We had accrued purchases of property and equipment of $2017.35 million at ~~September~~March 3031, ~~2025~~2026, and $2119.98 million at ~~September~~March 3031, ~~2024~~2025.

	Nine Months Ended
	Three Months Ended March 31,
	September 30,
	2026		2025
	2025		2024
Supplemental noncash information on adjustments to right-of-use assets, including right-of-use assets obtained in exchange for new:
Operating lease liabilities	$	~~108~~(3.70)	$	4584.60
Finance lease liabilities	$	5739.80	$	268.39

Interest and Income Taxes Paid

We made interest payments, net of amounts capitalized and including interest on vehicle inventory financing, of $~~265~~93.0 million during the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026, and $~~286~~83.61 million during the ~~nine~~three months ended ~~September~~March 3031, ~~2024. We made income tax payments, net of income tax refunds, of $238.0 million during the nine months ended September 30,~~ 2025~~, and $140~~.6 ~~million during the nine months ended September 30, 2024.~~We

had income tax refunds, net of income tax payments, of $0.7 million during the three months ended March 31, 2026, and made income tax payments, net of income tax refunds, of $0.7 million during the three months ended March 31, 2025.

14.FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

The fair value of a financial instrument represents the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of judgment, and therefore cannot be determined with precision.

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Accounting standards define fair value as the price that would be received from selling an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accounting standards establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value and also establishes the following three levels of inputs that may be used to measure fair value:


Level 1			Quoted prices (unadjusted) in active markets for identical assets or liabilities that a reporting entity can access at the measurement date

Level 2			Inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly

Level 3			Unobservable inputs

The following methods and assumptions were used by us in estimating fair value disclosures for financial instruments:

•Cash and cash equivalents, receivables, other current assets, vehicle floorplan payable, accounts payable, other current liabilities, commercial paper, warehouse credit facilities, and variable rate debt: The amounts reported in the accompanying Unaudited Condensed Consolidated Balance Sheets approximate fair value due to their short-term nature or the existence of variable interest rates that approximate prevailing market rates.

•Auto loans receivable, net: Auto loans receivable are presented net of an allowance for expected credit losses, which we believe approximates fair value.

•Investments in Equity Securities: Our equity investments with readily determinable fair values are measured at fair value using Level 1 inputs, which totaled $9.9 million at September 30, 2025, and $20.0 million at December 31, 2024.

Our equity investments that do not have a readily determinable fair value are measured using the measurement alternative as permitted by accounting standards and were recorded at cost, to be subsequently adjusted for observable price changes. The carrying amounts of our equity investments without a readily determinable fair value totaled $50.5 million at September 30, 2025, and $49.8 million at December 31, 2024. Equity investments that do not have a readily determinable fair value reflect cumulative downward adjustments of $8.4 million and cumulative upward adjustments of $3.4 million based on observable price changes. We did not record any upward adjustments or impairments during the nine months ended September 30, 2025.

Investments in equity securities are reported in Other Current Assets and Other Assets in the accompanying Unaudited Condensed Consolidated Balance Sheets. Realized and unrealized gains and losses are reported in Other Income (Loss), Net (non-operating) in the Unaudited Condensed Consolidated Statements of Income and in the “Corporate and other” category of our segment information.

	Nine Months Ended
	September 30,
	2025		2024
Net losses recognized during the period on equity securities	$	(10.1)	$	(8.5)
Less: Net gains (losses) recognized during the period on equity securities sold during the period	—		—
Unrealized losses recognized during the reporting period on equity securities still held at the reporting date	$	(10.1)	$	(8.5)

•Fixed rate long-term debt: Our fixed rate long-term debt consists primarily of amounts outstanding under our senior unsecured notes. We estimate the fair value of our senior unsecured notes using quoted prices for the identical liability (Level 1). A summary of the aggregate carrying values and fair values of our senior unsecured notes is as follows:

	September 30,2025		December 31,2024
	March 31,2026		December 31,2025
Carrying value	$	3,~~280~~426.09	$	23,~~782~~425.16
Fair value	$	3,~~192~~320.9	$	23,~~578~~357.67

22Investments in Equity Securities

Our investments in equity securities are primarily comprised of investments without a readily determinable fair value. Investments without readily determinable fair values are initially measured at the transaction price (generally fair value) plus transactions costs. These investments are subsequently measured using the measurement alternative as permitted by accounting standards, which is cost, less any impairment, and adjusted for observable price changes in orderly transactions for the identical or a similar investment of the same issuer, adjusted for any differences in rights and privileges of the equity securities (based on Level 3 inputs).

In January 2026, in connection with a take-private transaction of TrueCar, Inc., we exchanged our shares of TrueCar and contributed additional capital for equity interests in Fair Holdings, Inc., the privately held parent company that acquired TrueCar. As a result of the transaction, we derecognized our equity investment in TrueCar and recognized a new equity investment in Fair Holdings. This investment was recorded at a fair value of $26.0 million on the transaction date, resulting in a gain of $6.3 million.

In February 2026, we identified an observable price change for the issuance by Waymo LLC of similar equity securities to our Waymo equity investment. We recorded an upward adjustment of $46.2 million reflecting a fair value of $94.5 million based on the observable price change adjusted for differences in rights and privileges of the equity securities.

The carrying amounts of our equity investments without a readily determinable fair value totaled $123.1 million at March 31, 2026, and $50.8 million at December 31, 2025. Equity investments that do not have a readily determinable fair value reflect cumulative downward adjustments of $8.4 million and cumulative upward adjustments of $49.6 million based on observable price changes.

Our equity investments with readily determinable fair values are measured at fair value using Level 1 inputs and totaled $0.9 million at March 31, 2026, and $12.8 million at December 31, 2025.

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(Continued)



	Three Months Ended March 31,
	2026		2025
Net gains (losses) recognized during the period on equity securities	$	54.0	$	(11.5)
Less: Net gains recognized during the period on equity securities sold/exchanged during the period	1.5		—
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date	$	52.5	$	(11.5)

Nonfinancial Assets

Nonfinancial assets such as goodwill, other intangible assets, and long-lived assets held and used, are measured at fair value when there is an indicator of impairment and recorded at fair value only when impairment is recognized or for a business combination. The fair values less costs to sell of long-lived assets and disposal groups held for sale are assessed each reporting period they remain classified as held for sale. Subsequent changes in the held for sale long-lived asset’s or disposal group’s fair value less cost to sell (increase or decrease) are reported as an adjustment to its carrying amount, except that the adjusted carrying amount cannot exceed the carrying amount of the long-lived asset or disposal group at the time it was initially classified as held for sale.

The following table presents nonfinancial assets measured and recorded at fair value on a nonrecurring basis during the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026 and ~~2024~~2025:

	2025				2024
	2026				2025
Description	Fair ValueMeasurements Using SignificantUnobservable Inputs(Level 3)		Gain/(Loss)		Fair ValueMeasurements Using SignificantUnobservable Inputs(Level 3)		Gain/(Loss)
Equity investment	$	—	$	—	$	48.3	$	(8.4)
Long-lived assets held and used	$	—	$	(5.2)	$	—	$	(0.2)
Goodwill	$	75.2	$	(65.3)	$	—	$	—
Franchise rights	$	42.7	$	(71.7)	$	—	$	—
Long-lived assets held and used	$	13.5	$	(4.3)	$	—	$	(8.9)
Long-lived assets held for sale	$	22.7	$	(2.4)	$	12.1	$	(1.3)

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, 2025, 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, which relates to the mobile automotive repair and maintenance start-up business we acquired in the first quarter of 2023, we elected to perform a quantitative goodwill impairment test as of April 30, 2025.

As a result of the quantitative test, we determined that the fair value of the Mobile Service reporting unit was less than its carrying value and we recorded a non-cash goodwill impairment charge of $65.3 million during the second quarter of 2025. The decline in the fair value of the Mobile Service reporting unit reflects updated expectations of performance, which resulted in a reduction in forecasted cash flows and growth rates used to estimate fair value. The non-cash impairment charge is reflected as Goodwill Impairment in the accompanying Unaudited Condensed Consolidated Statements of Income and in the “Corporate and other” category of our segment information.

The quantitative goodwill impairment test requires a determination of whether the fair value of a reporting unit is less than its carrying value. We estimate the fair value of our reporting units using an “income” valuation approach, which discounts projected free cash flows of the reporting unit at a computed weighted average cost of capital as the discount rate. The income valuation approach requires the use of significant estimates and assumptions, which include the revenue growth rates and future operating margins used to calculate projected future cash flows, weighted average costs of capital, and future economic and market conditions. In connection with this process, we also reconcile the estimated aggregate fair values of our reporting units to our market capitalization, including consideration of a control premium that represents the estimated amount an investor would pay for our equity securities to obtain a controlling interest. We believe that this reconciliation process is consistent with a market participant perspective. We base our cash flow forecasts on our knowledge of the automotive industry, our recent performance, our expectations of our future performance, and other assumptions we believe to be reasonable but that are unpredictable and inherently uncertain. Actual future results may differ from those estimates. We also make certain judgments and assumptions in allocating shared assets and liabilities to determine the carrying values for each of our reporting units.

We chose to perform quantitative tests for our annual goodwill impairment testing as of April 30, 2024, and no impairment charges resulted from these quantitative tests.

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(Continued)

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 elected to perform quantitative franchise rights impairment tests as of April 30, 2025. As a result of the quantitative tests, we determined the franchise rights carrying values for nine stores, primarily Domestic franchises, exceeded their fair values, and we recorded non-cash franchise rights impairment charges of $71.7 million during the second quarter of 2025 to reduce the carrying value of the stores’ franchise agreements to their estimated fair values. The decline in the fair value of rights under these stores’ franchise agreements reflects the underperformance relative to expectations of these stores, as well as our expectations for the stores’ future prospects. These factors resulted in a reduction in forecasted cash flows and growth rates used to estimate fair value. The non-cash impairment charges are recorded as Franchise Rights Impairment in the accompanying Consolidated Statements of Income and in the “Corporate and other” category of our segment information.

We elected to perform quantitative franchise rights impairment tests for our annual impairment tests as of April 30, 2024 and no impairment charges resulted from these quantitative tests.

Long-Lived Assets and Right-of-Use Assets

Fair value measurements for our long-lived assets and right-of-use assets are based on Level 3 inputs. Changes in fair value measurements are reviewed and assessed each quarter for properties and disposal groups classified as held for sale, or when an indicator of impairment exists for properties classified as held and used or for right-of-use assets. The valuation process is generally based on a combination of the market and replacement cost approaches. In certain cases, fair value measurements are based on pending agreements to sell the related assets.

In a market approach, we use transaction prices for comparable properties that have recently been sold. These transaction prices are adjusted for factors related to a specific property. We evaluate changes in local real estate markets, and/or recent market interest or negotiations related to a specific property. In a replacement cost approach, the cost to replace a specific long-lived asset is considered, which is adjusted for depreciation from physical deterioration, as well as functional and economic obsolescence, if present and measurable.

To validate the fair values determined under the valuation process noted above, we also obtain independent third-party appraisals for our properties and/or third-party brokers’ opinions of value, which are generally developed using the same valuation approaches described above, and we evaluate any recent negotiations or discussions with third-party real estate brokers related to a specific long-lived asset or market.

The non-cash impairment charges related to long-lived assets are included in Other Expense, Net in our

Unaudited Condensed Consolidated Statements of Income and in the “Corporate and other” category of our segment

information.

We had assets held for sale of $63.2 million as of September 30, 2025, and $23.6 million as of December 31, 2024, primarily related to inventory, goodwill, and property of disposal groups held for sale, as well as property held for sale. Assets held for sale are included in Other Current Assets in our Unaudited Condensed Consolidated Balance Sheets.20

Quantitative Information about Level 3 Fair Value Measurements

Description	Fair Value at April 30, 2025		Valuation Technique	Unobservable Input	Range (Average)
Franchise rights	$	42.7	Discounted cash flow	Weighted average cost of capital	8.9% - 9.1% (9.0%)
				Discount rate	9.6% - 11.3% (10.4%)
				Long-term revenue growth rate	2.0	%
				Long-term pretax margin	0.0% - 5.9% (2.4%)
				Contributory asset charges	5.1% - 8.4% (6.2%)

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(Continued)

We had net assets held for sale of $32.7 million as of March 31, 2026, and $45.3 million as of December 31, 2025, primarily related to inventory, goodwill, property, and floorplan payable of disposal groups held for sale, as well as property held for sale. Assets held for sale and liabilities held for sale are included in Other Current Assets and Other Current Liabilities, respectively, in our Unaudited Condensed Consolidated Balance Sheets.

15.COMMITMENTS AND CONTINGENCIES

Legal Proceedings

We are involved, and will continue to be involved, in numerous legal proceedings arising out of the conduct of our business, including litigation with customers, third-party dealers, wage and hour and other employment-related lawsuits, and actions brought by governmental authorities. Some of these lawsuits purport or may be determined to be class or collective actions and seek substantial damages or injunctive relief, or both, and some may remain unresolved for several years. We establish accruals for specific legal proceedings when it is considered probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Our accruals for loss contingencies are reviewed quarterly and adjusted as additional information becomes available. We disclose the amount accrued if material or if such disclosure is necessary for our financial statements to not be misleading. If a loss is not both probable and reasonably estimable, or if an exposure to loss exists in excess of the amount accrued, we assess whether there is at least a reasonable possibility that a loss, or additional loss, may have been incurred. If there is a reasonable possibility that a loss, or additional loss, may have been incurred, we disclose the estimate of the possible loss or range of loss if it is material or a statement that such an estimate cannot be made. Our evaluation of whether a loss is reasonably possible or probable is based on our assessment and consultation with legal counsel regarding the ultimate outcome of the matter.

As of ~~September~~March 3031, ~~2025~~2026 and ~~2024~~2025, we have accrued for the potential impact of loss contingencies that are probable and reasonably estimable, and there was no indication of a reasonable possibility that a material loss, or additional material loss, may have been incurred. We do not believe that the ultimate resolution of these matters will have a material adverse effect on our results of operations, financial condition, or cash flows. However, the results of these matters cannot be predicted with certainty, and an unfavorable resolution of one or more of these matters could have a material adverse effect on our results of operations, financial condition, or cash flows.

Other Matters

In connection with the CDK outage previously discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, in the first quarter of 2025, we submitted claims under our cybersecurity insurance policies seeking recovery for business interruption and related losses caused by the CDK outage. We received insurance recoveries of $40 million in the third quarter of 2025 and an additional $20 million in October 2025 in connection with the CDK outage. Although we expect to receive additional insurance recoveries in connection with the CDK outage, there can be no assurance as to the amount or timing of any potential additional recovery.

AutoNation, acting through its subsidiaries, is the lessee under many real estate leases that provide for the use by our subsidiaries of their respective store premises. Pursuant to these leases, we agree to indemnify the lessor and other related parties from certain liabilities arising as a result of the use of the leased premises, including environmental liabilities, or a breach of the lease by the lessee. Additionally, from time to time, we enter into agreements with third parties in connection with the sale of assets or businesses in which we agree to indemnify the purchaser or related parties from certain liabilities or costs arising in connection with the assets or business. Also, in the ordinary course of business in connection with purchases or sales of goods and services, we enter into agreements that may contain indemnification provisions. In the event that an indemnification claim is asserted, our liability would be limited by the terms of the applicable agreement.

From time to time, primarily in connection with dispositions of automotive stores, we assign or sublet to the store purchaser our interests in any real property leases associated with such stores. In general, we retain responsibility for the performance of certain obligations under such leases to the extent that the assignee or sublessee does not perform, whether such performance is required prior to or following the assignment or subletting of the lease. Additionally, we generally remain subject to the terms of any guarantees made by us in connection with such leases. We generally have indemnification rights against the assignee or sublessee in the event of non-performance under these leases, as well as certain defenses. We presently have no reason to believe that we will be called on to perform under any such remaining assigned leases or subleases. We estimate that lessee rental payment obligations during the remaining terms of these leases with expirations ranging from 2027 to 2034 are approximately $43 million at ~~September~~March 3031, ~~2025~~2026. There can be no assurance that any performance required of us under these leases would not have a material adverse effect on our business, financial condition, and cash flows.

At ~~September~~March 3031, ~~2025~~2026, surety bonds, letters of credit, and cash deposits totaled $~~112~~118.48 million, of which $0.4 million were letters of credit. 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. We do not currently provide cash collateral for outstanding letters of credit.

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(Continued)

In the ordinary course of business, we are subject to numerous laws and regulations, including automotive, environmental, health and safety, and other laws and regulations. We do not anticipate that the costs of compliance with such laws will have a material adverse effect on our business, results of operations, cash flows, or financial condition, although such outcome is possible given the nature of our operations and the extensive legal and regulatory framework applicable to our business. We do not have any material known environmental commitments or contingencies.

16.BUSINESS AND CREDIT CONCENTRATIONS

We own and operate franchised automotive stores in the United States pursuant to franchise agreements with vehicle manufacturers. During the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026, approximately 65% of our total retail new vehicle unit sales ~~was~~were generated by our stores in Florida, California, and Texas.

We are subject to a concentration of risk in the event of financial distress of or other adverse event related to a major vehicle manufacturer or related lender or supplier. The core brands of vehicles that we sell, representing approximately 8988% of the new vehicles that we sold during the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, ~~BMW,~~ Mercedes-Benz, BMW, Stellantis, and Volkswagen (including Audi and Porsche). Our business could be materially adversely impacted by a bankruptcy of or other adverse event related to a major vehicle manufacturer or related lender or supplier.

We are also subject to a concentration of risk in the event of the non-performance of third-party information technology service providers, such as the provider of our dealer management system on which we significantly rely to operate our business.

We had receivables from manufacturers or distributors of $~~232~~205.82 million at ~~September~~March 3031, ~~2025~~2026, and $~~267~~230.16 million at December 31, ~~2024~~2025. Additionally, a large portion of our contracts-in-transit included in Receivables, net, in the accompanying Unaudited Condensed Consolidated Balance Sheets, are due from automotive manufacturers’ captive finance subsidiaries, which provide financing directly to our new and used vehicle customers. Concentrations of credit risk with respect to non-manufacturer trade receivables are limited due to the wide variety of customers and markets in which our products are sold as well as their dispersion across many different geographic areas in the United States. Consequently, at ~~September~~March 3031, ~~2025~~2026, we do not consider AutoNation to have any significant non-manufacturer concentrations of credit risk.

17.SEGMENT INFORMATION

At ~~September~~March 3031, ~~2025~~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. Our AutoNation Finance segment is comprised of our captive auto finance company, which provides indirect financing to qualified retail customers on vehicles we sell.

“Corporate and other” is comprised of our non-franchised businesses, including AutoNation USA used vehicle stores, collision centers, parts distribution centers, auction operations, and our mobile automotive repair and maintenance business, all of which generate revenues but do not meet the quantitative thresholds for reportable segments, as well as unallocated corporate overhead expenses, goodwill and franchise right impairments, and other income items.

The reportable segments identified above are the business activities of the Company for which discrete financial information is available and for which operating results are regularly reviewed by our chief operating decision maker (“CODM”) to allocate resources and assess performance. Our CODM for each of our reportable segments is our Chief Executive Officer. For the Domestic, Import, and Premium Luxury segments, our CODM uses Franchised Dealerships - Segment Income (defined as operating income less floorplan expense) to allocate resources to each of these segments during our annual budgeting process. Our CODM evaluates Franchised Dealerships - Segment Income actual results versus budget and prior year on a monthly basis when making decisions about allocating resources to these segments and whether to reinvest profits into each of these segments or into other parts of the Company, such as for acquisitions, strategic initiatives, or share repurchases. Our CODM also uses Franchised Dealerships - Segment Income to assess the underlying operating performance of each of these segments by comparing the results and return on investment for each of these segments.

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Our CODM uses AutoNation Finance Income ~~(Loss)~~ to allocate capital resources to the AutoNation Finance segment in our annual budgeting process and uses that measure as a basis to evaluate the underlying operating performance of this segment by monitoring the margin between interest revenue and interest expense, credit program tier distribution, portfolio quality, and the overall performance of the loan portfolio for the segment.

The following tables provide segment revenues and segment expenses that align with the segment-level information that is regularly provided to our CODM:

	Three Months Ended September 30, 2025
	Three Months Ended March 31, 2026
	Domestic		Import		Premium Luxury		AutoNation Finance		Total
Revenues from external customers:(1)
Franchised dealerships	$	1,~~945~~716.36	$	2,~~173~~048.1	$	2,~~559~~441.45			$	6,~~677~~206.82
Corporate and other									~~359~~345.69
Total consolidated revenues									76,~~037~~552.41
Less segment expenses:
Cost of sales:
New vehicle	~~980~~804.56		~~1,091~~986.54		1,~~192~~075.76
Used vehicle	~~505~~471.5		~~526~~516.08		~~700~~695.21
Parts and service	~~154~~147.51		~~172~~173.8		~~210~~215.32
Other	0.34		43.17		0.13
Total cost of sales	1,~~640~~423.86		1,~~794~~680.47		21,~~103~~986.32
Selling, general and administrative expenses:
Compensation	~~127~~122.01		~~151~~149.13		~~159~~162.6
Advertising	1718.71		2426.43		1718.20
Store overhead	48.80		5655.9		7982.52
Total selling, general, and administrative expenses	~~193~~188.52		~~232~~231.45		~~256~~262.38
Depreciation and amortization	11.62		1213.86		2021.63
Floorplan interest expense	1815.15		98.95		1816.34
Other income(2)	—		(0.1)		—
Franchised dealerships - segment income	$	78.1	$	113.8	$	154.8			346.7
Franchised dealerships - segment income	$	81.3	$	123.7	$	160.9			365.9
AutoNation Finance:
Interest fee income							$	55.2
Interest and fee income							$	62.7
Interest expense							(2124.24)
Provision for credit losses							(2219.05)
Direct expenses(3)							(10.5)
Direct expenses(2)							(9.4)
AutoNation Finance income (loss)							$	1.5	1.5
AutoNation Finance income							$	9.4	9.4
Corporate and other									(4283.56)
Other interest expense									(4548.10)
Other income, net									751.82
Income before income taxes									$	~~287~~275.67
(1) See Note 2 of the Notes to Unaudited Condensed Consolidated Financial Statements for detail of revenue by segment.
(2) Other income includes net gains on asset dispositions.
(2) Direct expenses are comprised primarily of compensation expense and loan administration costs incurred by our auto finance company.
(3) Direct expenses are comprised primarily of compensation expense and loan administration costs incurred by our auto finance company.

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	Three Months Ended September 30, 2024
	Three Months Ended March 31, 2025
	Domestic		Import		Premium Luxury		AutoNation Finance		Total
Revenues from external customers:(1)
Franchised dealerships	$	1,~~774~~717.94	$	2,~~046~~047.23	$	2,~~426~~576.05			$	6,~~247~~341.12
Corporate and other									~~339~~349.02
Total consolidated revenues									6,~~586~~690.14
Less segment expenses:
Cost of sales:
New vehicle	~~841~~834.76		1,~~016~~004.68		1,~~135~~233.57
Used vehicle	~~481~~459.70		~~508~~510.21		~~644~~669.60
Parts and service	~~160~~145.63		~~158~~159.12		~~200~~199.54
Other	~~2.8~~—		32.38		(0.1)
Total cost of sales	1,~~486~~438.89		1,~~686~~676.29		12,~~980~~102.50
Selling, general and administrative expenses:
Compensation	~~122~~119.58		~~142~~148.4		~~155~~165.67
Advertising	1816.27		21.96		1415.08
Store overhead	5145.04		5453.85		75.95
Total selling, general, and administrative expenses	~~191~~181.79		~~219~~223.15		~~245~~257.50
Depreciation and amortization	11.10		1112.10		19.9
Floorplan interest expense	2216.96		108.67		2519.40
Franchised dealerships - segment income	$	62.4	$	119.2	$	154.7			336.3
Other income(2)	—		—		(0.1)
Franchised dealerships - segment income	$	69.0	$	126.2	$	178.7			373.9
AutoNation Finance:
Interest fee income							$	32.9
Interest and fee income							$	41.9
Interest expense							(1113.49)
Provision for credit losses							(18.49)
Direct expenses(2)							(9.3)
Direct expenses(3)							(9.0)
AutoNation Finance income (loss)							$	(6.2)	(6.2)
AutoNation Finance income							$	0.1	0.1
Corporate and other									(3984.95)
Other interest expense									(4442.93)
Other income, net									2.1
Other income (loss), net									(13.2)
Income before income taxes									$	~~247~~234.40
(1) See Note 2 of the Notes to Unaudited Condensed Consolidated Financial Statements for detail of revenue by segment.
(2) Direct expenses are comprised primarily of compensation expense and loan administration costs incurred by our auto finance company.
(2) Other income includes net gains on asset dispositions.
(3) Direct expenses are comprised primarily of compensation expense and loan administration costs incurred by our auto finance company.

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AUTONATION, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

	Nine Months Ended September 30, 2025
	Domestic		Import		Premium Luxury		AutoNation Finance		Total
Revenues from external customers:(1)
Franchised dealerships	$	5,583.2	$	6,368.7	$	7,691.7			$	19,643.6
Corporate and other									1,058.6
Total consolidated revenues									20,702.2
Less segment expenses:
Cost of sales:
New vehicle	2,767.9		3,164.1		3,618.8
Used vehicle	1,463.0		1,549.6		2,049.0
Parts and service	454.0		503.6		615.6
Other	0.3		10.8		0.2
Total cost of sales	4,685.2		5,228.1		6,283.6
Selling, general and administrative expenses:
Compensation	379.3		456.9		493.5
Advertising	51.1		69.3		48.2
Store overhead	139.7		165.5		231.2
Total selling, general, and administrative expenses	570.1		691.7		772.9
Depreciation and amortization	34.1		37.6		60.6
Floorplan interest expense	51.5		28.1		55.0
Other income(2)	—		(0.1)		(0.1)
Franchised dealerships - segment income	$	242.3	$	383.3	$	519.7			1,145.3
AutoNation Finance:
Interest fee income							$	145.7
Interest expense							(52.9)
Provision for credit losses							(60.1)
Direct expenses(3)							(29.1)
AutoNation Finance income (loss)							$	3.6	3.6
Corporate and other									(362.2)
Other interest expense									(133.6)
Other income, net									6.9
Income before income taxes									$	660.0
(1) See Note 2 of the Notes to Unaudited Condensed Consolidated Financial Statements for detail of revenue by segment.
(2) Other income includes net gains on asset dispositions.
(3) Direct expenses are comprised primarily of compensation expense and loan administration costs incurred by our auto finance company.

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AUTONATION, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

	Nine Months Ended September 30, 2024
	Domestic		Import		Premium Luxury		AutoNation Finance		Total
Revenues from external customers:(1)
Franchised dealerships	$	5,271.0	$	6,044.5	$	7,239.3			$	18,554.8
Corporate and other									997.4
Total consolidated revenues									19,552.2
Less segment expenses:
Cost of sales:
New vehicle	2,419.6		2,962.1		3,327.5
Used vehicle	1,494.4		1,541.5		1,989.8
Parts and service	485.8		454.8		583.8
Other	3.8		9.9		—
Total cost of sales	4,403.6		4,968.3		5,901.1
Selling, general and administrative expenses:
Compensation	378.3		432.8		476.6
Advertising	50.8		61.4		38.8
Store overhead	153.4		163.7		229.5
Total selling, general, and administrative expenses	582.5		657.9		744.9
Depreciation and amortization	33.3		32.6		59.6
Floorplan interest expense	63.8		29.5		65.5
Other income(2)	(0.1)		—		—
Franchised dealerships - segment income	$	187.9	$	356.2	$	468.2			1,012.3
AutoNation Finance:
Interest fee income							$	81.2
Interest expense							(27.1)
Provision for credit losses							(36.3)
Direct expenses(3)							(28.3)
AutoNation Finance income (loss)							$	(10.5)	(10.5)
Corporate and other									(199.6)
Other interest expense									(136.3)
Other income, net									9.0
Income before income taxes									$	674.9
(1) See Note 2 of the Notes to Unaudited Condensed Consolidated Financial Statements for detail of revenue by segment.
(2) Other income includes net gains on asset dispositions.
(3) Direct expenses are comprised primarily of compensation expense and loan administration costs incurred by our auto finance company.

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AUTONATION, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

The following table provides information about segment assets:

Segment Assets(1)

~~September~~March 3031, ~~2025~~2026

December 31, ~~2024~~2025

Domestic

2,~~379~~315.43

2,~~297~~360.90

Import

2,~~131~~176.3

2,~~029~~209.83

Premium Luxury

3,~~626~~624.34

3,~~696~~611.02

AutoNation Finance

2,~~000~~449.76

12,~~114~~185.47

(1) Excludes capital expenditures for active construction projects, which are reflected in segment assets upon completion of the related project.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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.

Overview

AutoNation, Inc., through its subsidiaries, is one of the largest automotive retailers in the United States. As of ~~September~~March 3031, ~~2025~~2026, we owned and operated ~~323~~324 new vehicle franchises from 244 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 core brands of new vehicles that we sell, representing approximately 8988% of the new vehicles that we sold during the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, ~~BMW,~~ Mercedes-Benz, BMW, Stellantis, and Volkswagen (including Audi and Porsche). As of ~~September~~March 3031, ~~2025~~2026, we also owned and operated 52 AutoNation-branded collision centers, 2625 AutoNation USA used vehicle stores, 4 AutoNation-branded automotive auction operations, 3 parts distribution centers, a mobile automotive repair and maintenance business, and an auto finance company.

At ~~September~~March 3031, ~~2025~~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 ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026, new vehicle sales accounted for 4946% of our total revenue and 1412% of our total gross profit. Used vehicle sales accounted for 2930% of our total revenue and 10% of our total gross profit. Our parts and service operations, while comprising 1719% of our total revenue, contributed 4749% 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 ~~third~~first quarter of ~~2025~~2026, U.S. industry retail new vehicle unit sales, which includes sales in markets in which we do not compete, ~~increased~~decreased approximately 58%, as compared to the ~~third~~first quarter of ~~2024~~2025, primarily due to ~~sustained~~accelerated consumer demand ~~and~~in ~~acceleration of consumer demand for hybrid vehicles and electric vehicles resulting from~~ the ~~phasing~~later ~~out~~part of ~~electric~~March ~~vehicle (“EV”) tax credits through the end of the third quarter of~~ 2025. ~~The~~following ~~higher~~tariff-related ~~levels of manufacturer vehicle production over the past several years led to an increased supply of new vehicle inventory~~announcements, ~~which~~as ~~has~~well ~~resulted~~as inconsumer ~~moderation~~caution ofstemming ~~new~~from ~~vehicle~~macroeconomic ~~unit profitability~~factors. ~~We expect that new vehicle unit profitability may continue to moderate, in part due to the tariffs announced earlier this year.~~

The tariffs announced by the U.S. government beginning in the first quarter of 2025 on vehicles and parts imported from other countries by our suppliers could indirectly increase our costs and~~/or~~ ~~consumer prices and~~ limit the availability of inventory and/or reduce demand for the products and services we offer, which in turn could have a material adverse effect on our business and results of operations. ~~The~~While we have not observed a meaningful increase in our costs or other adverse impacts as a result of such tariffs to date, the policies and announcements regarding tariffs on imported goods ~~have~~are ~~been~~ evolving and remain highly fluid. The ultimate impact of any tariffs is uncertain and will depend on various factors, including whether the tariffs are maintained and/or implemented, the duration of the tariffs and the timing of their implementation, the amount, scope, and nature of the tariffs, and the related responses from other countries, manufacturers, and/or consumers.

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implemented, the duration of the tariffs and the timing of their implementation, the amount, scope, and nature of the tariffs, and the related responses from other countries, manufacturers, and/or consumers.

The 2025 Budget Reconciliation Act (the “Act”), signed into law in July 2025, introduces several provisions with direct implications for the automotive retail industry, particularly in areas of taxation, consumer incentives, and EV policies. The Act provides beneficial tax provisions for dealerships and new car buyers while creating uncertainty in the EV market due to the accelerated phasing out of EV tax credits. While we are encouraged by the potential uplift certain provisions of the Act may have on our business and the automotive retail industry, we currently do not expect the impact will be material to our results of operations.

Results of Operations

During the three months ended ~~September~~March 3031, ~~2025~~2026, we had net income of $~~215~~205.14 million and diluted earnings per share of $5.6585, as compared to net income of $~~185~~175.85 million and diluted earnings per share of $4.6145 during the same period in ~~2024~~2025.

Our total gross profit ~~increased~~was 5%relatively flat during the ~~third~~first quarter of ~~2025~~2026 compared to the same period in the prior year, driven by ~~increases~~decreases in ~~finance~~new ~~and~~vehicle ~~insurance~~ gross profit of 1217% and ~~parts~~used ~~and~~vehicle ~~service~~ gross profit of 72%, ~~partially~~largely offset by aan ~~decrease~~increase in parts ~~new~~and ~~vehicle~~service gross profit of 155%, each as compared to the ~~third~~first quarter of ~~2024~~2025. ~~Finance~~New ~~and~~vehicle ~~insurance~~ gross profit was adversely impacted by a decrease in new vehicle unit volume as the prior year benefited from ~~higher~~accelerated ~~realized~~consumer ~~margins~~demand onfollowing ~~vehicle~~tariff-related ~~service~~announcements, ~~contracts~~as ~~and~~well anas ~~increase~~a decrease in gross profit per vehicle ~~unit~~retailed ~~volume.~~(“PVR”) ~~Parts~~resulting ~~and~~from ~~service~~higher ~~results~~average ~~benefited~~vehicle ~~primarily~~costs, ~~from~~a ~~increases~~shift in ~~gross~~mix ~~profit~~away from ~~customer-pay~~Premium ~~service~~Luxury vehicles, and ~~the~~moderation ~~preparation~~ of ~~vehicles~~margins ~~for~~following ~~sale~~post-pandemic elevated levels. ~~New~~Used vehicle gross profit was adversely impacted by a decrease in ~~gross~~used ~~profit~~vehicle ~~per~~retail ~~vehicle~~unit ~~retailed~~volume (“and a decrease in gross profit PVR”) resulting from ~~higher~~an ~~average~~increase ~~vehicle~~in acquisition costs, apartially ~~shift~~offset by improvement in ~~mix~~wholesale ~~toward~~gross ~~hybrid~~profit. ~~vehicles~~Parts and ~~electric~~service ~~vehicles,~~results ~~which~~benefited ~~have~~primarily ~~relatively~~from ~~lower~~increases ~~average~~in gross profit ~~PVR,~~associated ~~and~~with ~~continued~~customer-pay ~~moderation~~service, ofwholesale ~~margins~~parts ~~following~~sales, ~~post-pandemic~~and ~~elevated~~warranty ~~levels~~service.

~~Net~~SG&A ~~income~~expenses ~~and~~increased ~~diluted~~primarily ~~earnings~~due ~~per~~to ~~share for the three months ended September 30~~acquisitions, ~~2025,~~an ~~were~~increase ~~favorably impacted by after-tax gains on insurance recoveries of $30.2 million for business interruption and related losses caused by the CDK outage that occurred~~ in ~~June~~advertising ~~2024.~~costs ~~See Note 15 of the Notes~~ to ~~Unaudited~~support ~~Condensed~~vehicle ~~Consolidated Financial Statements for more information. In addition~~sales, ~~net income~~ and ~~diluted~~investments ~~earnings~~targeting ~~per~~customer ~~share for the three months ended September 30, 2025, were adversely impacted by after-tax acquisition-related expenses of $6~~experience.~~0 million.~~

Net income for the three months ended ~~September 30~~March 31, ~~2024~~2026, benefited from an after-tax ~~net~~ gain of $3540.38 million related to ~~business/property~~changes ~~dispositions,~~in ~~net~~fair value of ~~asset~~certain ~~impairments,~~minority ~~partially~~equity ~~offset~~investments. byNet anincome ~~after-tax~~for ~~net~~the ~~loss~~three ofmonths ~~$5.1~~ended ~~million~~March ~~related~~31, to2025, ~~changes~~was inadversely ~~fair~~impacted ~~value~~by ofan ~~certain equity investments and~~ after-tax ~~self-insured~~loss ~~losses~~ of $48.37 million ~~primarily~~ related to ~~hailstorms~~changes ~~and~~in ~~other~~fair ~~natural~~value ~~catastrophes.~~of a minority equity investment.

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 ~~September~~March 3031, ~~2025~~2026 and ~~2024~~2025, were 4342,~~200~~440 and 4639,~~000~~300, 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 $20.76 million at ~~September~~March 3031, ~~2025~~2026, and $21.02 million at December 31, ~~2024~~2025.

Our used vehicle inventory units at March 31, 2026 and 2025, were 32,615 and 34,281, 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 $65.12 million at ~~September~~March 3031, ~~2025~~2026, and $75.8 million at December 31, ~~2024~~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 $9.51 million at ~~September~~March 3031, ~~2025~~2026, and $89.35 million at December 31, ~~2024~~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.

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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. We may first perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired. When assessing goodwill for impairment, our decision to perform a qualitative assessment for an individual reporting unit is influenced by a number of factors, including the carrying value of the reporting unit’s goodwill, the significance of the excess of the reporting unit’s estimated fair value over carrying value at the last quantitative assessment date, the amount of time in between quantitative fair value assessments, macroeconomic conditions, automotive industry and market conditions, and our operating performance.

Under accounting standards, we chose to make a qualitative evaluation about the likelihood of goodwill impairment as of April 30, 2025, 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, which relates to the mobile automotive repair and maintenance start-up business we acquired in the first quarter of 2023, we elected to perform a quantitative goodwill impairment test as of April 30, 2025, and determined that its fair value was less than its carrying value. As a result, during the three months ended June 30, 2025, we recorded a non-cash goodwill impairment charge of $65.3 million. The non-cash impairment charge is reflected as Goodwill Impairment in the accompanying Unaudited Condensed Consolidated Statements of Income. 27

~~The~~Table ~~quantitative goodwill impairment test is dependent on many variables used to determine the fair value~~ of a reporting unit. See Note 14 of the Notes to Unaudited Condensed Consolidated Financial Statements for additional information on how the fair values and carrying values of our reporting units are derived for the quantitative goodwill impairment test. The key assumptions used in our estimate of fair value for our Mobile Service reporting unit included revenue growth rates to calculate projected future cash flows. As a measure of sensitivity, a 20% decrease in the revenue growth rates would have resulted in an increase to the goodwill impairment charge of approximately $30 million. This result and discussion is not intended to address all potential outcomes that could have resulted if different assumptions had been used in determining our goodwill impairment given the number of assumptions used in determining the impairment and the degree of sensitivity to changes in such assumptions in the determination of the fair value. Contents

AsWe ofmay ~~September 30,~~first ~~2025,~~perform wea ~~have~~qualitative ~~$221.9~~assessment ~~million~~to ofdetermine ~~goodwill~~whether ~~related~~it tois ~~the~~more ~~Domestic~~likely than not that a reporting unit, ~~$523~~is impaired.4 ~~million~~When ~~related~~assessing goodwill for impairment, our decision to ~~the~~perform ~~Import~~a qualitative assessment for an individual reporting unit, ~~$496.0~~is ~~million~~influenced ~~related~~by toa number of factors, including the ~~Premium~~carrying ~~Luxury~~value of the reporting unit’s goodwill, ~~$75.2~~the ~~million~~significance ~~related~~of to the ~~Mobile~~excess ~~Service~~of the reporting unit,’s ~~$78.4~~estimated ~~million~~fair ~~related~~value toover carrying value at the ~~AutoNation~~last ~~Finance~~quantitative ~~reporting~~assessment ~~unit~~date, ~~and~~the ~~$4.6~~amount ~~million~~of ~~related~~time toin ~~the~~between ~~Collision~~quantitative ~~Center~~fair ~~reporting~~value ~~unit~~assessments, macroeconomic conditions, automotive industry and market conditions, and our operating performance.

If we do not perform a qualitative assessment, or if we determine that it is not more likely than not that the fair value of the reporting unit exceeds its carrying amount, we calculate the estimated fair value of the reporting unit using an “income” valuation approach, which discounts projected free cash flows of the reporting unit at a computed weighted average cost of capital as the discount rate. The income valuation approach requires the use of significant estimates and assumptions, which include revenue growth rates and future operating margins used to calculate projected future cash flows, weighted average cost of capital, and future economic and market conditions. In connection with this process, we also reconcile the estimated aggregate fair values of our reporting units to our market capitalization, including consideration of a control premium based upon our stock price and/or average stock price over a reasonable period as of the measurement date. We base our cash flow forecasts on our knowledge of the automotive industry, our recent performance, our expectations of our future performance, and other assumptions we believe to be reasonable but that are unpredictable and inherently uncertain. Actual future results may differ from those estimates. We also make certain judgments and assumptions in allocating shared assets and liabilities to determine the carrying values for each of our reporting units.

As of March 31, 2026, we have $219.4 million of goodwill related to the Domestic reporting unit, $531.0 million related to the Import reporting unit, $498.8 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

We may first perform a qualitative assessment to determine whether it is more likely than not that a franchise right asset is impaired., Weor ~~elected~~alternatively, towe ~~perform~~may ~~quantitative~~bypass ~~franchise~~the ~~rights~~qualitative ~~impairment~~assessment ~~tests~~and ~~for~~proceed ~~our~~directly ~~annual~~to ~~impairment~~a ~~tests~~quantitative asimpairment ~~of April 30, 2025~~test. AsThe ~~a result of the~~ quantitative ~~tests,~~impairment wetest ~~determined~~for ~~the~~ franchise rights ~~carrying~~requires ~~values~~the ~~for~~comparison ~~nine~~of ~~stores~~the ~~exceeded their fair values, and we recorded non-cash~~ franchise rights’ ~~impairment~~estimated ~~charges~~fair ofvalue ~~$71.7~~to ~~million~~carrying ~~during~~value ~~the~~by ~~three~~store. ~~months~~Fair ~~ended~~values ~~June 30, 2025, to reduce the carrying value~~ of ~~the~~rights ~~stores’~~under franchise agreements toare ~~their~~ estimated ~~fair~~using ~~values.~~unobservable We(Level ~~also~~3) ~~identified~~inputs 10by ~~stores~~discounting ~~that,~~expected ~~while~~future ~~they~~cash ~~each~~flows ~~had~~of ~~franchise~~the ~~rights~~store. ~~fair~~The ~~value~~forecasted incash ~~excess~~flows ofcontain ~~carrying~~inherent ~~value~~uncertainties, ~~had~~including ~~lower~~significant ~~relative~~estimates ~~performance~~and ~~compared~~assumptions related to ~~our~~growth ~~total~~rates, ~~store~~margins, ~~population.~~working Wecapital ~~will~~requirements, ~~continue~~capital ~~to monitor these stores~~expenditures, asand ~~well~~cost asof ~~all stores~~capital, for ~~events~~which orwe ~~changes~~utilize incertain ~~circumstances~~market ~~that~~participant-based ~~may~~assumptions, ~~indicate~~using ~~potential~~third-party ~~impairment.~~industry ~~The~~projections, ~~remainder~~economic ofprojections, ~~our~~and ~~stores~~other ~~had~~marketplace ~~franchise~~data ~~rights~~we ~~with~~believe ~~calculated~~to ~~fair~~be ~~values that substantially exceeded their carrying values~~reasonable.

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 14 of the Notes to Unaudited Condensed Consolidated Financial Statements for a description 28

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of the valuation method and related estimates and assumptions used in our quantitative impairment testing. Based on a sensitivity analysis 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 of April 30, 2025, the resulting incremental impairment charge would have been approximately $7 million. The sensitivity analysis performed, including the effect of a hypothetical 10% decrease in fair value estimates, is not intended to provide a sensitivity analysis of every potential outcome.

As of September 30, 2025, we had 78 stores with franchise rights totaling $967.4 million.

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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 ~~September~~March 3031,							~~Nine Months Ended September 30,~~
	2025		2024		VarianceFavorable /(Unfavorable)		%Variance	2025		2024		VarianceFavorable /(Unfavorable)		%Variance
	2026		2025		VarianceFavorable /(Unfavorable)		%Variance
Revenue:
New vehicle	$	3,~~415~~011.60	$	3,~~171~~248.21	$	~~244~~(237.41)	(7.73)	$	~~10,060.0~~	$	~~9,273.0~~	$	~~787.0~~	~~8.5~~
Retail used vehicle	1,~~874~~819.36		1,~~741~~792.41		~~132~~27.95		71.65	~~5,511.4~~		~~5,318.7~~		~~192.7~~		~~3.6~~
Wholesale	~~141~~144.42		~~160~~130.03		~~(18~~13.6)9		~~(11~~10.6)7	~~411.7~~		~~489.9~~		~~(78.2)~~		~~(16.0)~~
Used vehicle	21,~~015~~963.78		1,~~901~~922.4		~~114~~41.34		62.02	~~5,923.1~~		~~5,808.6~~		~~114.5~~		~~2.0~~
Finance and insurance, net	~~374~~352.80		~~335~~352.45		39(0.45)		11(0.71)	~~1,095.0~~		~~994.1~~		~~100.9~~		~~10.1~~
Total variable operations(1)	5,~~806~~326.18		5,~~408~~523.0		~~398~~(196.12)		7(3.46)	~~17,078.1~~		~~16,075.7~~		~~1,002.4~~		~~6.2~~
Parts and service	1,~~226~~220.29		1,~~170~~164.90		5556.39		4.79	~~3,611.3~~		~~3,460.4~~		~~150.9~~		~~4.4~~
Other	54.14		73.24		~~(2.~~1).0			~~12.8~~		~~16.1~~		~~(3.3)~~
Total revenue	$	76,~~037~~552.41	$	6,~~586~~690.14	$	~~451~~(138.3)	6(2.91)	$	~~20,702.2~~	$	~~19,552.2~~	$	~~1,150.0~~	~~5.9~~
Gross profit:
New vehicle	$	~~151~~144.05	$	~~177~~174.19	$	(2630.14)	(1417.74)	$	~~509.3~~	$	~~563.4~~	$	~~(54.1)~~	~~(9.6)~~
Retail used vehicle	~~102~~104.69		~~105~~113.60		(38.01)		(27.82)	~~328.7~~		~~314.7~~		~~14.0~~		~~4.4~~
Wholesale	1216.35		511.65		65.70			~~36.1~~		~~19.4~~		~~16.7~~
Used vehicle	~~114~~121.94		~~111~~124.25		(3.71)		3(2.35)	~~364.8~~		~~334.1~~		~~30.7~~		~~9.2~~
Finance and insurance	~~374~~352.80		~~335~~352.45		39(0.45)		11(0.71)	~~1,095.0~~		~~994.1~~		~~100.9~~		~~10.1~~
Total variable operations(1)	~~640~~617.79		~~623~~651.79		17(34.0)		2(5.72)	~~1,969.1~~		~~1,891.6~~		~~77.5~~		~~4.1~~
Parts and service	~~597~~593.04		~~558~~567.27		3825.87		74.05	~~1,763.3~~		~~1,650.6~~		~~112.7~~		~~6.8~~
Other	(0.72)		0.93		(0.25)			~~1.3~~		~~1.6~~		~~(0.3)~~
Total gross profit	1,~~238~~211.41		1,~~182~~219.89		55(8.68)		4(0.7)	~~3,733.7~~		~~3,543.8~~		~~189.9~~		~~5.4~~
AutoNation Finance income (loss)	1.5		(6.2)		7.7			3.6		(10.5)		14.1
AutoNation Finance income	9.4		0.1		9.3
Selling, general, and administrative expenses	~~850~~842.12		~~811~~821.39		(3820.83)		(42.85)	~~2,526.7~~		~~2,430.2~~		~~(96.5)~~		~~(4.0)~~
Depreciation and amortization	6463.20		61.38		(21.92)			~~189.9~~		~~179.5~~		~~(10.4)~~
Goodwill impairment	—		—		—			65.3		—		(65.3)
Other expense, net	1.0		0.3		(0.7)
Franchise rights impairment	—		—		—			71.7		—		(71.7)
Operating income	314.3		336.0		(21.7)		(6.5)
Other income, net	(46.8)		(46.7)		0.1			(42.3)		(42.4)		(0.1)
Operating income	372.4		350.7		21.7		6.2	926.0		966.0		(40.0)		(4.1)
Non-operating income (expense) items:
Floorplan interest expense	(4741.58)		(6046.5)		134.07			~~(139.3)~~		~~(163.8)~~		~~24.5~~
Other interest expense	(4548.10)		(4442.93)		(05.27)			~~(133.6)~~		~~(136.3)~~		~~2.7~~
Other income, net	7.8		2.1		5.7			6.9		9.0		(2.1)
Other income (loss), net	51.2		(13.2)		64.4
Income before income taxes	$	~~287~~275.67	$	~~247~~234.40	$	4041.27	1617.28	$	~~660.0~~	$	~~674.9~~	$	~~(14.9)~~	~~(2.2)~~
Retail vehicle unit sales:
New vehicle	6657,~~189~~482		6362,~~150~~387		3(4,~~039~~905)		4(7.89)	~~194,423~~		~~183,281~~		~~11,142~~		~~6.1~~
Used vehicle	6865,~~896~~818		6668,~~454~~000		(2,~~442~~182)		(3.72)	~~206,632~~		~~201,079~~		~~5,553~~		~~2.8~~
	135,085		129,604		5,481		4.2	401,055		384,360		16,695		4.3
	123,300		130,387		(7,087)		(5.4)
Revenue per vehicle retailed:
New vehicle	$	5152,~~604~~382	$	5052,~~217~~064	$	~~1,387~~318	20.86	$	~~51,743~~	$	~~50,594~~	$	~~1,149~~	~~2.3~~
Used vehicle	$	27,~~205~~646	$	26,~~205~~354	$	1,~~000~~292	34.89	$	~~26,673~~	$	~~26,451~~	$	~~222~~	~~0.8~~
Gross profit per vehicle retailed:
New vehicle	$	2,~~281~~514	$	2,~~804~~803	$	(~~523~~289)	(1810.73)	$	~~2,620~~	$	~~3,074~~	$	~~(454)~~	~~(14.8)~~
Used vehicle	$	1,~~489~~594	$	1,~~589~~662	$	(~~100~~68)	(64.31)	$	~~1,591~~	$	~~1,565~~	$	26	~~1.7~~
Finance and insurance	$	2,~~775~~855	$	2,~~588~~703	$	~~187~~152	75.26	$	~~2,730~~	$	~~2,586~~	$	~~144~~	~~5.6~~
Total variable operations(2)	$	4,~~652~~878	$	4,~~769~~912	$	(~~117~~34)	(20.57)	$	~~4,820~~	$	~~4,871~~	$	~~(51)~~	~~(1.0)~~
(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.

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Three Months Ended

Nine Months Ended

Three Months Ended March 31,

September 30,

2026 (%)

2025 (%)

2024 (%)

2025 (%)

2024 (%)

Revenue mix percentages:

New vehicle

4846.50

48.15

~~48.6~~

~~47.4~~

Used vehicle

2830.60

28.97

~~28.6~~

~~29.7~~

Parts and service

1718.46

17.84

~~17.4~~

~~17.7~~

Finance and insurance, net

5.34

5.13

~~5.3~~

~~5.1~~

Other

~~0.2~~—

0.1

~~0.1~~

Total

100.0

~~100.0~~

Gross profit mix percentages:

New vehicle

1211.29

1514.03

~~13.6~~

~~15.9~~

Used vehicle

910.30

910.42

~~9.8~~

~~9.4~~

Parts and service

4849.20

4746.25

~~47.2~~

~~46.6~~

Finance and insurance

3029.31

28.49

~~29.3~~

~~28.1~~

Other

—

—0.1

~~0.1~~

—

Total

100.0

~~100.0~~

Operating items as a percentage of revenue:

Gross profit:

New vehicle

4.48

5.64

~~5.1~~

~~6.1~~

Used vehicle - retail

5.58

6.13

~~6.0~~

~~5.9~~

Parts and service

48.76

4748.78

~~48.8~~

~~47.7~~

Total

1718.65

18.02

~~18.0~~

~~18.1~~

Selling, general, and administrative expenses

12.19

12.3

~~12.2~~

~~12.4~~

Operating income

54.38

5.30

~~4.5~~

~~4.9~~

Other operating items as a percentage of total gross profit:

Selling, general, and administrative expenses

6869.65

6867.64

~~67.7~~

~~68.6~~

Operating income

3026.10

2927.65

~~24.8~~

~~27.3~~

September 30,

March 31,

2025

2024

2026

2025

Inventory days supply:

New vehicle (industry standard of selling days)

4746 days

5238 days

Used vehicle (trailing calendar month days)

3735 days

36 days

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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 ~~2024~~2025 column may differ from the same store amounts presented for ~~2024~~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 September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

($ in millions, except per vehicle data)

~~2025~~2026

~~2024~~2025

VarianceFavorable /(Unfavorable)

%Variance

~~2025~~

~~2024~~

~~VarianceFavorable /(Unfavorable)~~

~~%Variance~~

Revenue:

New vehicle

32,~~377~~949.8

3,~~148~~238.85

~~229~~(288.07)

7(8.39)

~~9,988.0~~

~~9,171.2~~

~~816.8~~

~~8.9~~

Retail used vehicle

1,~~837~~773.54

1,~~724~~778.04

~~113.~~(5.0)

6(0.63)

~~5,408.7~~

~~5,234.3~~

~~174.4~~

~~3.3~~

Wholesale

~~138~~140.79

~~157~~129.54

~~(18~~11.8)5

~~(11~~8.9)

~~404.1~~

~~478.9~~

~~(74.8)~~

~~(15.6)~~

Used vehicle

1,~~976~~914.23

1,~~881~~907.58

946.75

5.0.3

~~5,812.8~~

~~5,713.2~~

~~99.6~~

~~1.7~~

Finance and insurance, net

~~368~~344.31

~~332~~350.68

35(6.7)

10(1.79)

~~1,078.0~~

~~980.9~~

~~97.1~~

~~9.9~~

Total variable operations(1)

5,~~722~~208.32

5,~~362~~497.91

~~359~~(288.49)

6(5.73)

~~16,878.8~~

~~15,865.3~~

~~1,013.5~~

~~6.4~~

Parts and service

1,~~209~~192.51

1,~~144~~150.81

6442.70

53.7

~~3,566.5~~

~~3,350.4~~

~~216.1~~

~~6.4~~

Other

54.04

73.13

(21.1)

~~12.7~~

~~15.9~~

~~(3.2)~~

Total revenue

6,~~936~~404.87

6,~~514~~650.85

~~422~~(245.08)

6(3.57)

~~20,458.0~~

~~19,231.6~~

~~1,226.4~~

~~6.4~~

Gross profit:

New vehicle

~~149~~141.85

~~176~~174.6

(2633.81)

(1519.20)

~~507.0~~

~~558.9~~

~~(51.9)~~

~~(9.3)~~

Retail used vehicle

~~101~~103.62

~~105~~112.74

(49.12)

(38.92)

~~324.0~~

~~311.6~~

~~12.4~~

~~4.0~~

Wholesale

1216.34

511.96

6.4.8

~~36.6~~

~~20.8~~

~~15.8~~

Used vehicle

~~113~~119.96

~~111~~124.60

2(4.34)

2(3.15)

~~360.6~~

~~332.4~~

~~28.2~~

~~8.5~~

Finance and insurance

~~368~~344.31

~~332~~350.68

35(6.7)

10(1.79)

~~1,078.0~~

~~980.9~~

~~97.1~~

~~9.9~~

Total variable operations(1)

~~632~~605.02

~~620~~649.84

11(44.2)

1(6.8)

~~1,945.6~~

~~1,872.2~~

~~73.4~~

~~3.9~~

Parts and service

~~588~~577.76

~~550~~563.01

3814.75

72.06

~~1,743.7~~

~~1,614.3~~

~~129.4~~

~~8.0~~

Other

(0.71)

1.0.4

(0.35)

~~1.6~~

~~2.0~~

~~(0.4)~~

Total gross profit

1,~~221~~182.47

1,~~171~~212.89

49(30.62)

4.(2.5)

~~3,690.9~~

~~3,488.5~~

~~202.4~~

~~5.8~~

Retail vehicle unit sales:

New vehicle

6556,~~425~~316

62,~~628~~156

2(5,~~797~~840)

4(9.54)

~~192,863~~

~~181,071~~

~~11,792~~

~~6.5~~

Used vehicle

6764,~~288~~182

6567,~~688~~370

1(3,~~600~~188)

2.(4.7)

~~202,005~~

~~197,404~~

~~4,601~~

~~2.3~~

132,713

128,316

4,397

3.4

394,868

378,475

16,393

4.3

120,498

129,526

(9,028)

(7.0)

Revenue per vehicle retailed:

New vehicle

5152,~~629~~379

5052,~~278~~103

~~1,351~~276

20.75

~~51,788~~

~~50,650~~

~~1,138~~

~~2.2~~

Used vehicle

27,~~308~~631

26,~~245~~398

1,~~063~~233

4.17

~~26,775~~

~~26,516~~

~~259~~

~~1.0~~

Gross profit per vehicle retailed:

New vehicle

2,~~290~~513

2,~~820~~809

(~~530~~296)

(1810.85)

~~2,629~~

~~3,087~~

~~(458)~~

~~(14.8)~~

Used vehicle

1,~~510~~608

1,~~609~~668

(9960)

(63.26)

~~1,604~~

~~1,578~~

~~1.6~~

Finance and insurance

2,~~775~~856

2,~~592~~708

~~183~~148

75.15

~~2,730~~

~~2,592~~

~~138~~

~~5.3~~

Total variable operations(2)

4,~~669~~886

4,~~792~~924

(~~123~~38)

(20.68)

~~4,835~~

~~4,892~~

~~(57)~~

~~(1.2)~~

(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.

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Three Months Ended

Nine Months Ended

Three Months Ended March 31,

September 30,

2026 (%)

2025 (%)

2024 (%)

2025 (%)

2024 (%)

Revenue mix percentages:

New vehicle

4846.71

48.37

~~48.8~~

~~47.7~~

Used vehicle

2829.59

28.97

~~28.4~~

~~29.7~~

Parts and service

1718.46

17.63

~~17.4~~

Finance and insurance, net

5.34

5.13

~~5.3~~

~~5.1~~

Other

~~0.1~~—

~~0.1~~

Total

100.0

~~100.0~~

Gross profit mix percentages:

New vehicle

12.30

1514.14

~~13.7~~

~~16.0~~

Used vehicle

910.31

910.52

~~9.8~~

~~9.5~~

Parts and service

48.28

46.94

~~47.2~~

~~46.3~~

Finance and insurance

3029.21

28.49

~~29.2~~

~~28.1~~

Other

—

0.1

~~0.1~~

Total

100.0

~~100.0~~

Operating items as a percentage of revenue:

Gross profit:

New vehicle

4.48

5.64

~~5.1~~

~~6.1~~

Used vehicle - retail

5.58

6.13

~~6.0~~

Parts and service

48.75

4849.0

~~48.9~~

~~48.2~~

Total

1718.65

18.02

~~18.0~~

~~18.1~~

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.

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Table of Contents

New Vehicle

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

($ in millions, except per vehicle data)

~~2025~~2026

~~2024~~2025

VarianceFavorable /(Unfavorable)

%Variance

~~2025~~

~~2024~~

~~VarianceFavorable /(Unfavorable)~~

~~%Variance~~

Reported:

Revenue

3,~~415~~011.60

3,~~171~~248.21

~~244~~(237.41)

(7.73)

~~10,060.0~~

~~9,273.0~~

~~787.0~~

~~8.5~~

Gross profit

~~151~~144.05

~~177~~174.19

(2630.14)

(1417.74)

~~509.3~~

~~563.4~~

~~(54.1)~~

~~(9.6)~~

Retail vehicle unit sales

6657,~~189~~482

6362,~~150~~387

3(4,~~039~~905)

4(7.89)

~~194,423~~

~~183,281~~

~~11,142~~

~~6.1~~

Revenue per vehicle retailed

5152,~~604~~382

5052,~~217~~064

~~1,387~~318

20.86

~~51,743~~

~~50,594~~

~~1,149~~

~~2.3~~

Gross profit per vehicle retailed

2,~~281~~514

2,~~804~~803

(~~523~~289)

(1810.73)

~~2,620~~

~~3,074~~

~~(454)~~

~~(14.8)~~

Gross profit as a percentage of revenue

4.48%

5.64%

~~5.1%~~

~~6.1%~~

Inventory days supply (industry standard of selling days)

4746 days

5238 days

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

2025

2024

VarianceFavorable /(Unfavorable)

%Variance

2025

2024

VarianceFavorable /(Unfavorable)

%Variance

2026

2025

VarianceFavorable /(Unfavorable)

%Variance

Same Store:

Revenue

32,~~377~~949.8

3,~~148~~238.85

~~229~~(288.07)

7(8.39)

~~9,988.0~~

~~9,171.2~~

~~816.8~~

~~8.9~~

Gross profit

~~149~~141.85

~~176~~174.6

(2633.81)

(1519.20)

~~507.0~~

~~558.9~~

~~(51.9)~~

~~(9.3)~~

Retail vehicle unit sales

6556,~~425~~316

62,~~628~~156

2(5,~~797~~840)

4(9.54)

~~192,863~~

~~181,071~~

~~11,792~~

~~6.5~~

Revenue per vehicle retailed

5152,~~629~~379

5052,~~278~~103

~~1,351~~276

20.75

~~51,788~~

~~50,650~~

~~1,138~~

~~2.2~~

Gross profit per vehicle retailed

2,~~290~~513

2,~~820~~809

(~~530~~296)

(1810.85)

~~2,629~~

~~3,087~~

~~(458)~~

~~(14.8)~~

Gross profit as a percentage of revenue

4.48%

5.64%

~~5.1%~~

~~6.1%~~

~~Third~~First Quarter ~~2025~~2026 compared to ~~Third~~First Quarter ~~2024~~2025

Same store new vehicle revenue ~~increased~~decreased during the three months ended ~~September~~March 3031, ~~2025~~2026, as compared to the same period in ~~2024~~2025, due to ~~increases~~a decrease in same store unit volume ~~and~~primarily ~~same~~as ~~store~~a ~~revenue~~result ~~PVR.~~of ~~Same~~the ~~store~~prior ~~unit~~year ~~volume~~period ~~benefited~~benefiting from ~~sustained~~accelerated consumer demand, ~~better~~in ~~execution~~the inlater ~~our~~part ~~sales~~of ~~pipeline,~~March ~~and~~2025 anfollowing ~~acceleration~~tariff-related ofannouncements, ~~consumer~~a ~~demand~~decrease ~~for~~in ~~hybrid~~electric ~~vehicles~~vehicle ~~and~~unit ~~electric~~volume ~~vehicles~~due ~~resulting~~in ~~from~~part to the phasing out of EV tax credits ~~through~~at the end of the third quarter of 2025~~. In addition~~, ~~same~~and ~~store~~consumer ~~unit~~caution ~~volume~~stemming infrom ~~the~~macroeconomic ~~prior year was adversely impacted by manufacturer stop sale orders on certain vehicle models~~factors.

Same store new vehicle revenue PVR increased slightly during the three months ended ~~September~~March 3031, ~~2025~~2026, as compared to the same period in ~~2024~~2025, ~~largely~~reflecting ~~due~~an toincrease ~~increases~~ in ~~the~~ average selling prices ~~for vehicles~~ in all ~~franchised~~three ~~dealership~~ segments~~. In addition~~, ~~same~~largely ~~store~~offset ~~revenue~~by ~~PVR benefited from~~ a 63% shift in mix toaway ~~hybrid~~from ~~vehicles~~Premium ~~and~~Luxury ~~electric~~ vehicles ~~and a 2% shift in mix toward larger vehicles~~, ~~such~~which ~~as trucks and sport utility vehicles, that~~ have relatively higher average ~~selling prices. Increases in same store new vehicle~~ revenue PVR ~~were partially offset by a 2% shift in mix toward Domestic vehicles~~.

Same store new vehicle gross profit PVR decreased during the three months ended ~~September~~March 3031, ~~2025~~2026, as compared to the same period in ~~2024~~2025, primarily due to an increase in average vehicle costs ~~largely~~and ~~due~~the ~~to lower manufacturer incentive assistance, a~~ shift in mix toaway ~~hybrid~~from ~~vehicles~~Premium ~~and~~Luxury ~~electric~~ vehicles, which have relatively ~~lower~~higher average gross profit PVR,. ~~and~~Same ~~continued~~store new vehicle gross profit PVR was also adversely impacted by moderation of margins following post-pandemic elevated levels. WeNew ~~expect that new~~ vehicle unit profitability ~~may~~appears ~~continue~~ to ~~moderate,~~be stabilizing as evidenced by modest quarterly sequential improvement in ~~part~~gross ~~due~~profit toPVR since the ~~tariffs~~third ~~announced~~quarter ~~earlier~~of ~~this year~~2025.

~~First Nine Months 2025 compared to First Nine Months 2024~~33

Same store new vehicle revenue increased during the nine months ended September 30, 2025, as compared to the same period in 2024, due to increases in same store unit volume and same store revenue PVR. Same store unit volume benefited from sustained consumer demand, better execution in our sales pipeline, an increase in supply of new vehicle inventory, and an acceleration of consumer demand for hybrid vehicles and electric vehicles resulting from the phasing out of EV tax credits through the end of the third quarter of 2025. In addition, same store unit volume in the prior year was adversely impacted by a decrease in productivity during the CDK outage.

Same store new vehicle revenue PVR increased during the nine months ended September 30, 2025, as compared to the same period in 2024, largely due to increases in the average selling price for vehicles across all franchised dealership segments.

Table of Contents

In addition, same store revenue PVR benefited from a 6% shift in mix to hybrid vehicles and electric vehicles and a 2% shift in mix toward larger vehicles, such as trucks and sport utility vehicles, that have relatively higher average selling prices.

Same store new vehicle gross profit PVR decreased during the nine months ended September 30, 2025, as compared to the same period in 2024, due in part to an increase in supply of new vehicle inventory as compared to the prior year, which has resulted in moderation of margins following post-pandemic elevated levels, as well as an increase in average vehicle costs and a shift in mix to hybrid vehicles and electric vehicles, which have relatively lower average gross profit PVR. We expect that new vehicle unit profitability may continue to moderate, in part due to the tariffs announced earlier this year.

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 September 30,						Nine Months Ended September 30,
	Three Months Ended March 31,
($ in millions)	~~2025~~2026		~~2024~~2025		Variance		~~2025~~		~~2024~~		~~Variance~~
Floorplan assistance	$	3430.24	$	3831.21	$	(4.0.7)	$	~~100.0~~	$	~~101.6~~	$	~~(1.6)~~
New vehicle floorplan interest expense	(4640.0)		(5844.50)		124.50		~~(133.6)~~		~~(157.4)~~		~~23.8~~
Net new vehicle inventory carrying expense	$	(119.86)	$	(2012.39)	$	83.53	$	~~(33.6)~~	$	~~(55.8)~~	$	~~22.2~~

~~Third~~First Quarter ~~2025~~2026 compared to ~~Third~~First Quarter ~~2024~~2025

The net new vehicle inventory carrying expense decreased during the three months ended ~~September~~March 3031, ~~2025~~2026, as compared to the same period in ~~2024~~2025, primarily due to a decrease in floorplan interest expense, ~~partially~~as ~~offset by~~ a ~~decrease~~result inof ~~floorplan assistance. Floorplan interest expense decreased due to~~ lower average interest rates ~~and lower average vehicle floorplan balances. Floorplan assistance decreased primarily due to a decrease in the floorplan assistance rate per unit~~, partially offset by higher ~~new~~average vehicle ~~sales~~floorplan balances.

~~First Nine Months 2025 compared to First Nine Months 2024~~34

The net new vehicle inventory carrying expense decreased during the nine months ended September 30, 2025, as compared to the same period in 2024, primarily due to a decrease in floorplan interest expense as a result of lower average interest rates and lower average vehicle floorplan balances.

Table of Contents

Used Vehicle

	Three Months Ended September 30,							Nine Months Ended September 30,
	Three Months Ended March 31,
($ in millions, except per vehicle data)	~~2025~~2026		~~2024~~2025		VarianceFavorable /(Unfavorable)		%Variance	~~2025~~		~~2024~~		~~VarianceFavorable /(Unfavorable)~~		~~%Variance~~
Reported:
Retail revenue	$	1,~~874~~819.36	$	1,~~741~~792.41	$	~~132~~27.95	71.65	$	~~5,511.4~~	$	~~5,318.7~~	$	~~192.7~~	~~3.6~~
Wholesale revenue	~~141~~144.42		~~160~~130.03		~~(18~~13.6)9		~~(11~~10.6)7	~~411.7~~		~~489.9~~		~~(78.2)~~		~~(16.0)~~
Total revenue	$	21,~~015~~963.78	$	1,~~901~~922.4	$	~~114~~41.34	62.02	$	~~5,923.1~~	$	~~5,808.6~~	$	~~114.5~~	~~2.0~~
Retail gross profit	$	~~102~~104.69	$	~~105~~113.60	$	(38.01)	(27.82)	$	~~328.7~~	$	~~314.7~~	$	~~14.0~~	~~4.4~~
Wholesale gross profit	1216.35		511.65		65.70			~~36.1~~		~~19.4~~		~~16.7~~
Total gross profit	$	~~114~~121.94	$	~~111~~124.25	$	(3.71)	3(2.35)	$	~~364.8~~	$	~~334.1~~	$	~~30.7~~	~~9.2~~
Retail vehicle unit sales	6865,~~896~~818		6668,~~454~~000		(2,~~442~~182)		(3.72)	~~206,632~~		~~201,079~~		~~5,553~~		~~2.8~~
Revenue per vehicle retailed	$	27,~~205~~646	$	26,~~205~~354	$	1,~~000~~292	34.89	$	~~26,673~~	$	~~26,451~~	$	~~222~~	~~0.8~~
Gross profit per vehicle retailed	$	1,~~489~~594	$	1,~~589~~662	$	(~~100~~68)	(64.31)	$	~~1,591~~	$	~~1,565~~	$	26	~~1.7~~
Retail gross profit as a percentage of retail revenue	5.58%		6.13%					~~6.0%~~		~~5.9%~~
Inventory days supply (trailing calendar month days)	3735 days		36 days
	Three Months Ended September 30,							Nine Months Ended September 30,
	Three Months Ended March 31,
	2025		2024		VarianceFavorable /(Unfavorable)		%Variance	2025		2024		VarianceFavorable /(Unfavorable)		%Variance
	2026		2025		VarianceFavorable /(Unfavorable)		%Variance
Same Store:
Retail revenue	$	1,~~837~~773.54	$	1,~~724~~778.04	$	~~113.~~(5.0)	6(0.63)	$	~~5,408.7~~	$	~~5,234.3~~	$	~~174.4~~	~~3.3~~
Wholesale revenue	~~138~~140.79		~~157~~129.54		~~(18~~11.8)5		~~(11~~8.9)	~~404.1~~		~~478.9~~		~~(74.8)~~		~~(15.6)~~
Total revenue	$	1,~~976~~914.23	$	1,~~881~~907.58	$	946.75	5.0.3	$	~~5,812.8~~	$	~~5,713.2~~	$	~~99.6~~	~~1.7~~
Retail gross profit	$	~~101~~103.62	$	~~105~~112.74	$	(49.12)	(38.92)	$	~~324.0~~	$	~~311.6~~	$	~~12.4~~	~~4.0~~
Wholesale gross profit	1216.34		511.96		6.4.8			~~36.6~~		~~20.8~~		~~15.8~~
Total gross profit	$	~~113~~119.96	$	~~111~~124.60	$	2(4.34)	2(3.15)	$	~~360.6~~	$	~~332.4~~	$	~~28.2~~	~~8.5~~
Retail vehicle unit sales	6764,~~288~~182		6567,~~688~~370		1(3,~~600~~188)		2.(4.7)	~~202,005~~		~~197,404~~		~~4,601~~		~~2.3~~
Revenue per vehicle retailed	$	27,~~308~~631	$	26,~~245~~398	$	1,~~063~~233	4.17	$	~~26,775~~	$	~~26,516~~	$	~~259~~	~~1.0~~
Gross profit per vehicle retailed	$	1,~~510~~608	$	1,~~609~~668	$	(9960)	(63.26)	$	~~1,604~~	$	~~1,578~~	$	26	~~1.6~~
Retail gross profit as a percentage of retail revenue	5.58%		6.13%					~~6.0%~~		~~6.0%~~

~~Third~~First Quarter ~~2025~~2026 compared to ~~Third~~First Quarter ~~2024~~2025

Same store retail used vehicle revenue ~~increased~~was relatively flat during the three months ended ~~September~~March 3031, ~~2025~~2026, as compared to the same period in ~~2024~~2025, ~~due~~reflecting toa andecrease ~~increase~~ in same store unit volume, ~~particularly~~due ~~for~~to ~~higher-priced~~tightening supply in the used ~~vehicles~~vehicle market, ~~and~~largely offset by an increase in same store revenue PVR. ~~Same store volume in the prior year was adversely impacted by the residual effects of the CDK outage.~~ Wholesale used vehicle revenue ~~decreased~~increased during the three months ended ~~September~~March 3031, ~~2025~~2026, as compared to the same period in ~~2024,~~2025 ~~primarily~~ due to aan ~~shift~~increase in ~~mix~~used tovehicle ~~lower-value~~wholesale ~~used vehicles~~values.

Same store used vehicle revenue PVR increased during the three months ended ~~September~~March 3031, ~~2025~~2026, as compared to the same period in ~~2024~~2025, primarily due to an increase in the average selling price of used vehicles sold in ~~our~~all ~~Premium~~three ~~Luxury~~segments ~~segment~~ and a shift in mix to higher-priced used vehicles.

Same store used vehicle gross profit PVR decreased during the three months ended ~~September~~March 3031, ~~2025~~2026, as compared to the same period in ~~2024~~2025, primarily due to an increase in acquisition costs~~, partially offset by the adverse impact of the residual effects of the CDK outage in the prior year~~. Wholesale used vehicle gross profit increased during the three months ended ~~September~~March 3031, ~~2025~~2026, as compared to the same period in ~~2024,~~2025 ~~primarily~~ due to an increase in used vehicle wholesale values.

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Table of Contents

First Nine Months 2025 compared to First Nine Months 2024

Same store retail used vehicle revenue increased during the nine months ended September 30, 2025, as compared to the same period in 2024, primarily due to an increase in same store unit volume as the prior year was adversely impacted by the CDK outage. The increase in same store unit volume was partially offset by a 1% shift in mix from used vehicles to new vehicles. Wholesale used vehicle revenue decreased during the nine months ended September 30, 2025, as compared to the same period in 2024, due to a shift in mix to lower-value used vehicles.

Same store used vehicle revenue and gross profit PVR during the nine months ended September 30, 2025, was relatively flat as compared to the same period in 2024, as used vehicle unit profitability has been stabilizing due in part to our initiatives to achieve more optimal levels and mix of used vehicle inventory.

Table of Contents

Parts and Service

	Three Months Ended September 30,							Nine Months Ended September 30,
	Three Months Ended March 31,
($ in millions)	~~2025~~2026		~~2024~~2025		VarianceFavorable /(Unfavorable)		%Variance	~~2025~~		~~2024~~		~~VarianceFavorable /(Unfavorable)~~		~~%Variance~~
Reported:
Revenue	$	1,~~226~~220.29	$	1,~~170~~164.90	$	5556.39	4.79	$	~~3,611.3~~	$	~~3,460.4~~	$	~~150.9~~	~~4.4~~
Gross Profit	$	~~597~~593.04	$	~~558~~567.27	$	3825.87	74.05	$	~~1,763.3~~	$	~~1,650.6~~	$	~~112.7~~	~~6.8~~
Gross profit as a percentage of revenue	48.76%		4748.78%					~~48.8%~~		~~47.7%~~
Same Store:
Revenue	$	1,~~209~~192.51	$	1,~~144~~150.81	$	6442.70	53.7	$	~~3,566.5~~	$	~~3,350.4~~	$	~~216.1~~	~~6.4~~
Gross Profit	$	~~588~~577.76	$	~~550~~563.01	$	3814.75	72.06	$	~~1,743.7~~	$	~~1,614.3~~	$	~~129.4~~	~~8.0~~
Gross profit as a percentage of revenue	48.75%		4849.0%					~~48.9%~~		~~48.2%~~

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.

~~Third~~First Quarter ~~2025~~2026 compared to ~~Third~~First Quarter ~~2024~~2025

Same store parts and service revenue increased during the three months ended ~~September~~March 3031, ~~2025~~2026, as compared to the same period in ~~2024~~2025, primarily due to increases in revenue associated with wholesale parts sales of $26.1 million and customer-pay service of $3621.6 million, ~~and~~partially offset by a decrease in revenue associated with the preparation of vehicles for sale of $158.50 million.

Same store parts and service gross profit increased during the three months ended ~~September~~March 3031, ~~2025~~2026, as compared to the same period in ~~2024~~2025, primarily due to ~~increases~~an increase in gross profit associated with customer-pay service of $2313.64 million, wholesale parts sales of $4.9 million, and warranty service of $4.5 million, partially offset by a decrease in gross profit associated with the preparation of vehicles for sale of $79.60 million,. ~~and~~Gross ~~warranty~~profit ~~service~~as a percentage of ~~$5.2~~revenue ~~million~~decreased during the three months ended March 31, 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, ~~the~~benefited ~~preparation~~from ofan ~~vehicles~~increase ~~for~~in ~~sale~~repair order volume, ~~and~~due ~~warranty~~in ~~service~~part ~~benefited~~to ~~from~~an increase in technician headcount, and higher value repair orders. ~~Parts~~Wholesale ~~and~~parts ~~service~~ revenue and gross profit ~~associated~~increased ~~with~~primarily ~~the preparation of vehicles for sale also benefited from an increase in repair order volume~~ due to an increase in ~~technician~~volume. ~~headcount,~~Parts asand ~~well~~service asrevenue ~~the~~associated ~~adverse~~with ~~impact~~warranty ofservice ~~the~~benefited ~~residual~~from ~~effects~~higher ofvalue ~~the~~repair ~~CDK~~orders ~~outage~~and inimproved ~~the~~parts ~~prior~~and ~~year~~labor rates. Parts and service revenue and gross profit associated with ~~warranty~~the ~~service~~preparation ~~also~~of ~~benefited~~vehicles ~~from~~for ~~improved~~sale ~~parts~~was adversely impacted by lower new and ~~labor~~used ~~rates~~vehicle unit volume and anmargin ~~increase~~compression inprimarily ~~repair~~resulting ~~order~~from ~~volume~~a ~~due~~shift in mix to anservice ~~increase~~work inoutsourced ~~technician~~to ~~headcount~~third parties.

~~First Nine Months 2025 compared to First Nine Months 2024~~36

Same store parts and service revenue increased during the nine months ended September 30, 2025, as compared to the same period in 2024, primarily due to increases in revenue associated with customer-pay service of $82.2 million and warranty service of $79.4 million.

Same store parts and service gross profit increased during the nine months ended September 30, 2025, as compared to the same period in 2024, primarily due to increases in gross profit associated with warranty service of $51.1 million, customer-pay service of $49.0 million, and the preparation of vehicles for sale of $31.5 million.

Parts and service revenue and gross profit across all revenue types benefited from an increase in repair order volume, due in part to the prior year being adversely impacted by the CDK outage, which disrupted our sales and service processes, and an increase in technician headcount. Parts and service revenue and gross profit associated with warranty service also benefited from an increase in manufacturer recalls, improved parts and labor rates, and higher value repair orders. Parts and service revenue and gross profit associated with customer-pay service also benefited from higher value repair orders.

Table of Contents

Finance and Insurance

	Three Months Ended September 30,							Nine Months Ended September 30,
	Three Months Ended March 31,
($ in millions, except per vehicle data)	~~2025~~2026		~~2024~~2025		VarianceFavorable /(Unfavorable)		%Variance	~~2025~~		~~2024~~		~~VarianceFavorable /(Unfavorable)~~		~~%Variance~~
Reported:
Revenue and gross profit	$	~~374~~352.80	$	~~335~~352.45	$	39(0.45)	11(0.71)	$	~~1,095.0~~	$	~~994.1~~	$	~~100.9~~	~~10.1~~
Gross profit per vehicle retailed	$	2,~~775~~855	$	2,~~588~~703	$	~~187~~152	75.26	$	~~2,730~~	$	~~2,586~~	$	~~144~~	~~5.6~~
Same Store:
Revenue and gross profit	$	~~368~~344.31	$	~~332~~350.68	$	35(6.7)	10(1.79)	$	~~1,078.0~~	$	~~980.9~~	$	~~97.1~~	~~9.9~~
Gross profit per vehicle retailed	$	2,~~775~~856	$	2,~~592~~708	$	~~183~~148	75.15	$	~~2,730~~	$	~~2,592~~	$	~~138~~	~~5.3~~

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 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.

~~Third~~First Quarter ~~2025~~2026 compared to ~~Third~~First Quarter ~~2024~~2025

Same store finance and insurance revenue and gross profit ~~increased~~slightly decreased during the three months ended ~~September~~March 3031, ~~2025~~2026, as compared to the same period in ~~2024~~2025, ~~due~~reflecting toa ~~increases~~decrease in vehicle unit volume, largely offset by an increase in finance and insurance gross profit PVR ~~and vehicle unit volume~~. Finance and insurance gross profit PVR benefited primarily from higher realized margins on vehicle service contracts. ~~Product penetration in the prior year was adversely impacted by the residual effects of the CDK outage.~~

~~First Nine Months 2025 compared to First Nine Months 2024~~37

Same store finance and insurance revenue and gross profit increased during the nine months ended September 30, 2025, as compared to the same period in 2024, due to increases in finance and insurance gross profit PVR and vehicle unit volume. Finance and insurance gross profit PVR benefited from higher realized margins on vehicle service contracts, partially offset by an increase in retail vehicle sales financed through AutoNation Finance. In addition, finance and insurance gross profit in the prior year was adversely impacted by the CDK outage.

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 September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

($ in millions)

~~2025~~2026

~~2024~~2025

VarianceFavorable /(Unfavorable)

%Variance

~~2025~~

~~2024~~

~~VarianceFavorable /(Unfavorable)~~

~~%Variance~~

Revenue:

Domestic

1,~~945~~716.36

1,~~774~~717.94

~~170~~(0.48)

~~9.6~~—

~~5,583.2~~

~~5,271.0~~

~~312.2~~

~~5.9~~

Import

2,~~173~~048.1

2,~~046~~047.23

~~126~~0.98

~~6.2~~—

~~6,368.7~~

~~6,044.5~~

~~324.2~~

~~5.4~~

Premium Luxury

2,~~559~~441.45

2,~~426~~576.05

~~133~~(135.40)

(5.52)

~~7,691.7~~

~~7,239.3~~

~~452.4~~

~~6.2~~

Total Franchised Dealerships

6,~~677~~206.82

6,~~247~~341.12

~~430~~(135.70)

6(2.91)

~~19,643.6~~

~~18,554.8~~

~~1,088.8~~

~~5.9~~

Corporate and other

~~359~~345.69

~~339~~349.02

20(3.63)

6(0.19)

~~1,058.6~~

~~997.4~~

~~61.2~~

~~6.1~~

Total consolidated revenue

76,~~037~~552.41

6,~~586~~690.14

~~451~~(138.3)

6(2.91)

~~20,702.2~~

~~19,552.2~~

~~1,150.0~~

~~5.9~~

Segment income(1):

Domestic

8178.31

6269.40

~~18.~~9.1

3013.32

~~242.3~~

~~187.9~~

~~54.4~~

~~29.0~~

Import

~~123~~113.78

~~119~~126.2

4(12.54)

3(9.8)

~~383.3~~

~~356.2~~

~~27.1~~

~~7.6~~

Premium Luxury

~~160~~154.98

~~154~~178.7

6(23.29)

4(13.04)

~~519.7~~

~~468.2~~

~~51.5~~

~~11.0~~

Total Franchised Dealerships

~~365~~346.97

~~336~~373.39

29(27.62)

8(7.83)

~~1,145.3~~

~~1,012.3~~

~~133.0~~

~~13.1~~

AutoNation Finance income (loss)

1.5

(6.2)

7.7

3.6

(10.5)

14.1

AutoNation Finance income

9.4

0.1

9.3

Corporate and other(2)

(4283.56)

(3984.95)

(20.6)9

~~(362.2)~~

~~(199.6)~~

~~(162.6)~~

Floorplan interest expense

4741.58

6046.5

134.07

~~139.3~~

~~163.8~~

~~24.5~~

Operating income

~~372~~314.43

~~350~~336.70

(21.7)

(6.25)

~~926.0~~

~~966.0~~

~~(40.0)~~

~~(4.1)~~

Retail new vehicle unit sales:

Domestic

1915,~~610~~858

1716,~~583~~778

~~2,027~~(920)

11(5.5)

~~55,742~~

~~50,068~~

~~5,674~~

~~11.3~~

Import

2926,~~974~~779

28,~~865~~003

(1,~~109~~224)

3(4.84)

~~87,725~~

~~85,162~~

~~2,563~~

~~3.0~~

Premium Luxury

1614,~~605~~845

1617,~~702~~606

(972,761)

(015.67)

~~50,956~~

~~48,051~~

~~2,905~~

~~6.0~~

66,189

63,150

3,039

4.8

194,423

183,281

11,142

6.1

57,482

62,387

(4,905)

(7.9)

Retail used vehicle unit sales:

Domestic

1917,~~440~~907

18,~~681~~424

~~759~~(517)

4(2.18)

~~57,616~~

~~57,178~~

~~438~~

~~0.8~~

Import

23,~~368~~034

2223,~~851~~155

~~517~~(121)

2(0.35)

~~69,915~~

~~69,188~~

~~727~~

~~1.1~~

Premium Luxury

18,~~638~~174

1719,~~876~~017

~~762~~(843)

(4.34)

~~56,671~~

~~54,608~~

~~2,063~~

~~3.8~~

Other

76,~~450~~703

7,~~046~~404

~~404~~(701)

5(9.75)

~~22,430~~

~~20,105~~

~~2,325~~

~~11.6~~

68,896

66,454

2,442

3.7

206,632

201,079

5,553

2.8

65,818

68,000

(2,182)

(3.2)

(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 used vehicle stores, collision centers, parts distribution centers, auction operations, and AutoNation Mobile Service, all of which do not meet the quantitative thresholds for reportable segments. “Corporate and other” income (loss) also includes unallocated corporate overhead expenses, goodwill and franchise rights impairments, and other income items.

(2) Comprised of our non-franchised businesses, including AutoNation USA used vehicle stores, collision centers, parts distribution centers, mobile 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, goodwill and franchise rights impairments, and other income items.

4638

Table of Contents

Domestic

The Domestic segment operating results included the following:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

($ in millions)

~~2025~~2026

~~2024~~2025

VarianceFavorable /(Unfavorable)

%Variance

~~2025~~

~~2024~~

~~VarianceFavorable /(Unfavorable)~~

~~%Variance~~

Revenue:

New vehicle

~~1,001~~826.48

~~872~~860.52

~~128~~(33.94)

14(3.89)

~~2,846.7~~

~~2,528.8~~

~~317.9~~

~~12.6~~

Used vehicle

~~531~~499.04

~~507~~486.21

2313.83

42.7

~~1,544.3~~

~~1,566.4~~

~~(22.1)~~

~~(1.4)~~

Parts and service

~~293~~282.60

~~290~~269.80

213.80

14.08

~~851.9~~

~~875.9~~

~~(24.0)~~

~~(2.7)~~

Finance and insurance, net

~~118~~107.46

101.28

175.28

175.07

~~338.7~~

~~295.0~~

~~43.7~~

~~14.8~~

Other

0.98

30.23

(20.3)5

~~1.6~~

~~4.9~~

~~(3.3)~~

Total Revenue

1,~~945~~716.36

1,~~774~~717.94

~~170~~(0.48)

~~9.6~~—

~~5,583.2~~

~~5,271.0~~

~~312.2~~

~~5.9~~

Gross Profit:

New vehicle

2022.92

3025.85

(93.93)

(3212.19)

~~78.8~~

~~109.2~~

~~(30.4)~~

~~(27.8)~~

Used vehicle

2527.59

2527.51

—0.8

—3.0

~~81.3~~

~~72.0~~

~~9.3~~

~~12.9~~

Parts and service

~~139~~134.19

~~130~~123.27

811.92

69.81

~~397.9~~

~~390.1~~

~~7.8~~

~~2.0~~

Finance and insurance, net

~~118~~107.46

101.28

175.28

175.07

~~338.7~~

~~295.0~~

~~43.7~~

~~14.8~~

Other

0.64

0.4

~~0.2~~—

~~1.3~~

~~1.1~~

~~0.2~~

Total Gross Profit

~~304~~293.50

~~288~~278.15

1614.45

5.72

~~898.0~~

~~867.4~~

~~30.6~~

~~3.5~~

Segment income

8178.31

6269.40

~~18.~~9.1

3013.32

~~242.3~~

~~187.9~~

~~54.4~~

~~29.0~~

Retail vehicle unit sales:

New vehicle

1915,~~610~~858

1716,~~583~~778

~~2,027~~(920)

11(5.5)

~~55,742~~

~~50,068~~

~~5,674~~

~~11.3~~

Used vehicle

1917,~~440~~907

18,~~681~~424

~~759~~(517)

4(2.18)

~~57,616~~

~~57,178~~

~~438~~

~~0.8~~

39,050

36,264

2,786

7.7

113,358

107,246

6,112

5.7

33,765

35,202

(1,437)

(4.1)

~~Third~~First Quarter ~~2025~~2026 compared to ~~Third~~First Quarter ~~2024~~2025

Domestic revenue ~~increased~~was relatively flat during the three months ended ~~September~~March 3031, ~~2025~~2026, as compared to the same period in ~~2024~~2025, primarily due to andecreases ~~increase~~in new and used vehicle unit volume, largely offset by increases in new vehicle revenue PVR of $868, ~~over~~used ~~75%~~vehicle ofrevenue ~~which~~PVR ~~was~~of ~~due~~$1,108, toand anfinance ~~increase~~and ininsurance ~~new~~revenue ~~vehicle~~PVR ~~unit~~of ~~volume~~$295. New vehicle unit volume ~~benefited~~decreased ~~from~~primarily ~~sustained~~due ~~consumer~~to ~~demand,~~the ~~better~~prior ~~execution~~year inbenefitting ~~our~~from ~~sales~~accelerated ~~pipeline,~~consumer ~~and~~demand anfollowing ~~acceleration~~tariff-related ofannouncements ~~consumer~~and ~~demand~~used ~~for~~vehicle ~~hybrid~~unit ~~vehicles~~volume ~~and~~decreased ~~electric~~due ~~vehicles~~to ~~resulting~~tightening ~~from~~supply in the ~~phasing~~used ~~out~~vehicle ofmarket. EVDomestic ~~tax~~revenue ~~credits~~also ~~through~~benefited ~~the~~from ~~end~~an ofincrease ~~the~~in ~~third~~used ~~quarter~~vehicle wholesale revenue of ~~2025~~$6.2 ~~In addition~~million, ~~Domestic~~and ~~revenue~~increases in ~~the~~parts ~~prior~~and ~~year~~service ~~was~~revenue ~~adversely~~associated ~~impacted~~with bywarranty ~~the~~service ~~residual~~of ~~effects~~$7.4 ofmillion ~~the~~and ~~CDK~~customer-pay ~~outage~~service of $7.3 million.

Domestic segment income increased during the three months ended ~~September~~March 3031, ~~2025~~2026, as compared to the same period in ~~2024~~2025, primarily due to anincreases ~~increase~~ in ~~finance~~parts and ~~insurance~~service gross profit, ~~approximately~~associated ~~55%~~with warranty service of ~~which~~$5.4 ~~was~~million ~~driven~~and bycustomer-pay service of $5.1 million, as well as an increase in finance and insurance gross profit PVR ~~of $241 primarily~~ due to higher realized margins on ~~vehicle~~ service contracts~~, and 45% of which was due to higher vehicle unit volume~~. ~~Domestic~~These ~~segment~~were ~~income~~partially ~~also~~offset ~~benefited~~by ~~from~~an aincrease ~~decrease~~ in SG&A expenses ~~resulting from the divestitures we completed in the third quarters~~ of ~~2024 and 2025~~$6.3 ~~In addition, Domestic segment income in the prior year was adversely impacted by the residual effects of the CDK outage~~million.

~~First Nine Months 2025 compared to First Nine Months 2024~~39

Domestic revenue increased during the nine months ended September 30, 2025, as compared to the same period in 2024, primarily due to an increase in new vehicle revenue, approximately 90% of which was due to an increase in new vehicle unit volume. New vehicle unit volume benefited from sustained consumer demand, better execution in our sales pipeline, and an acceleration of consumer demand for electric vehicles resulting from the phasing out of EV tax credits through the end of the third quarter of 2025. The increase in new vehicle unit volume was partially offset by a decrease in new vehicle revenue of approximately $70 million related to the divestitures we completed in the third quarters of 2024 and 2025. In addition, Domestic revenue in the prior year was adversely impacted by a decrease in productivity as a result of the CDK outage.

Domestic segment income increased during the nine months ended September 30, 2025, as compared to the same period in 2024, primarily due to an increase in finance and insurance gross profit, approximately 60% of which was due to an increase in finance and insurance gross profit PVR of $237 driven by higher realized margins on vehicle service contracts. Domestic segment income also benefited from a decrease in SG&A expenses resulting from the divestitures we completed in the third

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quarters of 2024 and 2025. In addition, Domestic segment income in the prior year was adversely impacted by a decrease in productivity as a result of the CDK outage.

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Import

The Import segment operating results included the following:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

($ in millions)

~~2025~~2026

~~2024~~2025

VarianceFavorable /(Unfavorable)

%Variance

~~2025~~

~~2024~~

~~VarianceFavorable /(Unfavorable)~~

~~%Variance~~

Revenue:

New vehicle

1,~~145~~035.3

1,~~078~~062.0

67(26.37)

6.(2.5)

~~3,336.9~~

~~3,152.1~~

~~184.8~~

~~5.9~~

Used vehicle

~~561~~554.50

~~543~~546.37

187.23

31.3

~~1,657.8~~

~~1,645.1~~

~~12.7~~

~~0.8~~

Parts and service

~~337~~334.5

~~307~~318.16

3015.49

95.90

~~999.1~~

~~891.2~~

~~107.9~~

~~12.1~~

Finance and insurance, net

~~126~~122.03

~~115~~118.45

103.68

93.2

~~368.2~~

~~349.8~~

~~18.4~~

~~5.3~~

Other

2.80

21.45

0.45

~~6.7~~

~~6.3~~

~~0.4~~

Total Revenue

2,~~173~~048.1

2,~~046~~047.23

~~126~~0.98

~~6.2~~—

~~6,368.7~~

~~6,044.5~~

~~324.2~~

~~5.4~~

Gross Profit:

New vehicle

5348.89

6157.42

(78.63)

(1214.45)

~~172.8~~

~~190.0~~

~~(17.2)~~

~~(9.1)~~

Used vehicle

3537.52

3536.16

0.46

1.16

~~108.2~~

~~103.6~~

~~4.6~~

~~4.4~~

Parts and service

~~164~~160.7

~~149~~159.04

151.73

100.58

~~495.5~~

~~436.4~~

~~59.1~~

~~13.5~~

Finance and insurance, net

~~126~~122.03

~~115~~118.45

103.68

93.2

~~368.2~~

~~349.8~~

~~18.4~~

~~5.3~~

Other

(1.37)

(01.93)

(0.4)

~~(4.1)~~

~~(3.6)~~

~~(0.5)~~

Total Gross Profit

~~378~~367.74

~~360~~370.04

18(3.70)

5(0.28)

~~1,140.6~~

~~1,076.2~~

~~64.4~~

~~6.0~~

Segment income

~~123~~113.78

~~119~~126.2

4(12.54)

3(9.8)

~~383.3~~

~~356.2~~

~~27.1~~

~~7.6~~

Retail vehicle unit sales:

New vehicle

2926,~~974~~779

28,~~865~~003

(1,~~109~~224)

3(4.84)

~~87,725~~

~~85,162~~

~~2,563~~

~~3.0~~

Used vehicle

23,~~368~~034

2223,~~851~~155

~~517~~(121)

2(0.35)

~~69,915~~

~~69,188~~

~~727~~

~~1.1~~

53,342

51,716

1,626

3.1

157,640

154,350

3,290

2.1

49,813

51,158

(1,345)

(2.6)

~~Third~~First Quarter ~~2025~~2026 compared to ~~Third~~First Quarter ~~2024~~2025

Import revenue ~~increased~~was relatively flat during the three months ended ~~September~~March 3031, ~~2025~~2026, as compared to the same period in ~~2024~~2025, primarily due to an increase in ~~new~~parts ~~vehicle~~and service revenue, ~~approximately~~primarily ~~60%~~associated ofwith ~~which~~wholesale ~~was~~and ~~due~~retail toparts ~~higher~~sales ~~new vehicle unit volume and 40%~~ of ~~which~~$12.0 ~~was~~million, ~~driven~~as bywell anas ~~increase~~increases in ~~average selling prices, with~~ new vehicle revenue PVR upof $~~864.~~736, ~~New~~used vehicle ~~unit~~revenue ~~volume~~PVR ~~benefited~~of ~~from sustained consumer demand~~$493, ~~better execution in our sales pipeline,~~ and anfinance ~~acceleration of consumer demand for hybrid vehicles~~ and ~~electric~~insurance ~~vehicles~~revenue ~~resulting~~PVR ~~from the phasing out~~ of ~~EV tax credits through the end of the third quarter of 2025~~$139. ~~Import~~These ~~revenue~~were ~~also~~largely ~~benefited~~offset ~~from~~by ana ~~increase~~decrease in ~~parts~~new ~~and~~vehicle ~~service~~unit ~~revenue,~~volume ~~largely~~primarily due to ~~increases in revenue associated with customer-pay service of $10.3 million and warranty service of $10.0 million. In addition, Import revenue in~~ the prior year ~~was~~benefitting ~~adversely~~from ~~impacted~~accelerated byconsumer ~~the~~demand ~~residual~~following ~~effects~~tariff-related ~~of the CDK outage~~announcements.

Import segment income ~~increased~~decreased during the three months ended ~~September~~March 3031, ~~2025~~2026, as compared to the same period in ~~2024~~2025, primarily due to an increase in ~~parts~~SG&A ~~and~~expenses ~~service~~of ~~gross~~$8.0 ~~profit~~million, ~~largely~~a ~~resulting~~decrease ~~from~~in ~~increases~~new invehicle gross profit ~~associated~~PVR ~~with customer-pay service~~ of $~~6.7~~217, ~~million~~ and ~~warranty~~a ~~service~~decrease ~~of $6.1 million. In addition, Import segment income~~ in ~~the~~new ~~prior~~vehicle ~~year~~unit ~~was adversely impacted by the residual effects of the CDK outage~~volume. ~~Increases~~The decreases in Import segment income were partially offset by an increase in ~~SG&A~~finance ~~expenses~~and ofinsurance ~~$13.3~~gross ~~million,~~profit ~~largely~~PVR due to anhigher ~~increase~~realized inmargins ~~performance-driven~~on ~~compensation~~service ~~expense~~contracts.

~~First Nine Months 2025 compared to First Nine Months 2024~~40

Import revenue increased during the nine months ended September 30, 2025, as compared to the same period in 2024, primarily due to an increase in new vehicle revenue, approximately half of which was due to higher new vehicle unit volume and half was driven by an increase in average selling prices, with new vehicle revenue PVR up $1,025. New vehicle unit volume benefited from sustained consumer demand, better execution in our sales pipeline, and an acceleration of consumer demand for hybrid vehicles and electric vehicles resulting from the phasing out of EV tax credits through the end of the third quarter of 2025. Import revenue also benefited from an increase in parts and service revenue, largely due to increases in revenue associated with warranty service of $59.1 million and the preparation of vehicles for sale of $21.8 million. In addition, Import revenue in the prior year was adversely impacted by a decrease in productivity as a result of the CDK outage.

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Import segment income increased during the nine months ended September 30, 2025, as compared to the same period in 2024, primarily due to an increase in parts and service gross profit, largely resulting from increases in gross profit associated with warranty service of $36.3 million and customer-pay service of $11.5 million. In addition, Import segment income in the prior year was adversely impacted by a decrease in productivity as a result of the CDK outage. The increases in Import segment income were partially offset by an increase in SG&A expenses of $33.8 million, largely due to an increase in performance-driven compensation expense.

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Premium Luxury

The Premium Luxury segment operating results included the following:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

($ in millions)

~~2025~~2026

~~2024~~2025

VarianceFavorable /(Unfavorable)

%Variance

~~2025~~

~~2024~~

~~VarianceFavorable /(Unfavorable)~~

~~%Variance~~

Revenue:

New vehicle

1,~~268~~148.9

1,~~220~~325.79

48(177.20)

3(13.93)

~~3,876.4~~

~~3,592.1~~

~~284.3~~

~~7.9~~

Used vehicle

~~737~~734.62

~~679~~712.31

5822.31

83.61

~~2,172.0~~

~~2,103.2~~

~~68.8~~

~~3.3~~

Parts and service

~~440~~454.94

~~422~~424.84

1830.10

47.31

~~1,302.7~~

~~1,237.3~~

~~65.4~~

~~5.3~~

Finance and insurance, net

~~111~~103.86

~~103~~114.21

8(10.65)

8(9.32)

~~340.2~~

~~306.4~~

~~33.8~~

~~11.0~~

Other

0.24

—

0.24

~~0.4~~

~~0.3~~

~~0.1~~

Total Revenue

2,~~559~~441.45

2,~~426~~576.05

~~133~~(135.40)

(5.52)

~~7,691.7~~

~~7,239.3~~

~~452.4~~

~~6.2~~

Gross Profit:

New vehicle

7673.23

8592.2

(918.09)

(1020.65)

~~257.6~~

~~264.6~~

~~(7.0)~~

~~(2.6)~~

Used vehicle

3739.41

3443.71

2(4.70)

7(9.83)

~~123.0~~

~~113.4~~

~~9.6~~

~~8.5~~

Parts and service

~~230~~239.62

~~222~~225.30

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