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What changed in AUTONATION, INC.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of AUTONATION, INC.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+265 added−276 removedSource: 10-K (2026-02-12) vs 10-K (2025-02-14)

Top changes in AUTONATION, INC.'s 2025 10-K

265 paragraphs added · 276 removed · 206 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

44 edited+6 added−9 removed92 unchanged
Biggest changeOur Domestic, Import, and Premium Luxury segments are comprised of retail automotive franchises that sell the following new vehicle brands: Domestic Import Premium Luxury Buick Ford Acura Mazda Aston Martin Land Rover Cadillac GMC Genesis Nissan Audi Lexus Chevrolet Jeep Honda Subaru Bentley Mercedes-Benz Chrysler Lincoln Hyundai Toyota BMW MINI Dodge Ram Infiniti Volkswagen Jaguar Porsche Volvo 1 Table of Contents The following table sets forth information regarding our new vehicle revenues and retail new vehicle unit sales for the year ended, and the number of franchises owned as of, December 31, 2024: New Vehicle Revenues (in millions) Retail New Vehicle Unit Sales % of Total Retail New Vehicle Units Sold Franchises Owned Domestic: Ford, Lincoln $ 1,453.8 28,154 11.1 30 Chevrolet, Buick, Cadillac, GMC 1,305.5 27,504 10.8 39 Chrysler, Dodge, Jeep, Ram 767.8 13,610 5.3 76 Domestic Total 3,527.1 69,268 27.2 145 Import: Toyota 2,030.4 52,427 20.6 19 Honda 1,153.0 33,048 13.0 24 Nissan 136.9 4,421 1.7 6 Hyundai 343.2 9,227 3.6 11 Subaru 333.6 9,763 3.8 8 Other Import 322.9 7,356 2.9 18 Import Total 4,320.0 116,242 45.6 86 Premium Luxury: Mercedes-Benz 1,798.2 23,130 9.1 38 BMW 1,651.9 22,939 9.0 16 Lexus 480.0 8,830 3.5 3 Audi 327.1 5,191 2.0 9 Jaguar Land Rover 512.1 5,176 2.0 14 Other Premium Luxury 431.8 3,939 1.6 14 Premium Luxury Total 5,201.1 69,205 27.2 94 $ 13,048.2 254,715 100.0 325 The franchises in each of our Domestic, Import, and Premium Luxury segments also sell used vehicles, parts and automotive repair and maintenance services, and automotive finance and insurance products.
Biggest changeOur Domestic, Import, and Premium Luxury segments are comprised of retail automotive franchises that sell the following new vehicle brands: Domestic Import Premium Luxury Buick Ford Acura Nissan Aston Martin Land Rover Cadillac GMC Honda Subaru Audi Lexus Chevrolet Jeep Hyundai Toyota Bentley Mercedes-Benz Chrysler Lincoln Infiniti Volkswagen BMW MINI Dodge Ram Mazda Volvo Jaguar Porsche 1 Table of C ontents The following table sets forth information regarding our new vehicle revenues and retail new vehicle unit sales for the year ended, and the number of franchises owned as of, December 31, 2025: New Vehicle Revenues (in millions) Retail New Vehicle Unit Sales % of Total Retail New Vehicle Units Sold Franchises Owned Domestic: Ford, Lincoln $ 1,730.5 33,068 12.8 31 Chevrolet, Buick, Cadillac, GMC 1,383.1 28,210 10.9 38 Chrysler, Dodge, Jeep, Ram 748.3 13,402 5.1 72 Domestic Total 3,861.9 74,680 28.8 141 Import: Toyota 2,176.6 55,721 21.5 20 Honda 1,127.6 31,359 12.1 24 Nissan 113.2 3,411 1.3 5 Hyundai 352.3 9,173 3.5 11 Subaru 318.8 9,161 3.5 8 Other Import 329.6 7,409 2.9 18 Import Total 4,418.1 116,234 44.8 86 Premium Luxury: Mercedes-Benz 1,779.8 22,855 8.8 24 BMW 1,706.1 23,214 9.0 16 Lexus 493.1 8,904 3.4 3 Audi 314.0 4,849 1.9 10 Jaguar Land Rover 481.6 4,687 1.8 13 Other Premium Luxury 446.7 3,841 1.5 30 Premium Luxury Total 5,221.3 68,350 26.4 96 $ 13,501.3 259,264 100.0 323 The franchises in each of our Domestic, Import, and Premium Luxury segments also sell used vehicles, parts and automotive repair and maintenance services, and automotive finance and insurance products.
Additionally, we have minority ownership stakes in and productive collaborations with Waymo, the self-driving technology company of Alphabet Inc., and TrueCar, Inc., a leading automotive digital marketplace that lets auto buyers and sellers connect to its nationwide network of certified dealers. These investments and collaborations reflect our continued commitment to emerging technologies that impact the automotive industry.
Additionally, we have minority ownership stakes in and productive collaborations with Waymo, the self-driving technology company of Alphabet Inc., and TrueCar, a leading automotive digital marketplace that lets auto buyers and sellers connect to its nationwide network of certified dealers. These investments and collaborations reflect our continued commitment to emerging technologies that impact the automotive industry.
In addition, state attorneys general have authority under their respective laws and regulations, and under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), enacted in 2010, to investigate and/or regulate certain aspects of our operations. 7 Table of Contents Our financing activities with customers, including our origination and servicing activities through our captive auto finance company, are subject to the federal Truth-in-Lending Act, Consumer Leasing Act, Equal Credit Opportunity Act, Fair Credit Reporting Act, federal and state prohibitions against unfair, deceptive, and abusive acts and practices, and various other federal laws and regulations, as well as state and local motor vehicle finance laws, leasing laws, collection, repossession, and installment finance laws, usury laws, and other installment sales and leasing laws and regulations.
In addition, state attorneys general have authority under their respective laws and regulations, and under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), enacted in 2010, to investigate and/or regulate certain aspects of our operations. 7 Table of C ontents Our financing activities with customers, including our origination and servicing activities through our captive auto finance company, are subject to the federal Truth-in-Lending Act, Consumer Leasing Act, Equal Credit Opportunity Act, Fair Credit Reporting Act, federal and state prohibitions against unfair, deceptive, and abusive acts and practices, and various other federal laws and regulations, as well as state and local motor vehicle finance laws, leasing laws, collection, repossession, and installment finance laws, usury laws, and other installment sales and leasing laws and regulations.
This sector is primarily comprised of banks, captive finance divisions of new car manufacturers, credit unions, and independent finance companies. According to industry sources, this sector represented more than $1 trillion in outstanding receivables as of December 31, 2024. Our primary competitors in this sector are banks and credit unions that offer direct and indirect financing to customers purchasing vehicles.
This sector is primarily comprised of banks, captive finance divisions of new car manufacturers, credit unions, and independent finance companies. According to industry sources, this sector represented more than $1 trillion in outstanding receivables as of December 31, 2025. Our primary competitors in this sector are banks and credit unions that offer direct and indirect financing to customers purchasing vehicles.
For convenience, the terms “AutoNation,” “Company,” “we,” “us,” and “our” 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. Reportable Segments As of December 31, 2024, we had four reportable segments: Domestic, Import, Premium Luxury, and AutoNation Finance.
For convenience, the terms “AutoNation,” “Company,” “we,” “us,” and “our” 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. Reportable Segments As of December 31, 2025, we had four reportable segments: Domestic, Import, Premium Luxury, and AutoNation Finance.
Additionally, we are able to improve financial controls and lower servicing costs by maintaining many key store-level accounting and administrative activities in our shared service center located in Irving, Texas. We also leverage our digital capabilities to drive cost reductions and increased efficiency for the long-term success of our business.
Additionally, we are able to improve financial controls and lower servicing costs by maintaining many key store-level accounting and administrative activities in our shared service center located in Irving, Texas. We also leverage our technological capabilities to drive cost reductions and increased efficiency for the long-term success of our business.
Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed or furnished pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended, are available, free of charge, on our Investor Relations website as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission (the “SEC”). 12 Table of Contents
Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed or furnished pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended, are available, free of charge, on our Investor Relations website as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission (the “SEC”). 12 Table of C ontents
We also offer indirect financing through our captive auto finance company on vehicles we sell. The following charts present the contribution to total revenue and gross profit by each of new vehicle, used vehicle, parts and service, and finance and insurance sales in 2024.
We also offer indirect financing through our captive auto finance company on vehicles we sell. The following charts present the contribution to total revenue and gross profit by each of new vehicle, used vehicle, parts and service, and finance and insurance sales in 2025.
For additional information regarding our capital allocation, refer to “Liquidity and Capital Resources – Capital Allocation” in Part II, Item 7 of this Form 10-K. 4 Table of Contents Operations Each of our franchised dealerships acquires new vehicles for retail sale either directly from the applicable automotive manufacturer or distributor or through dealer trades with other stores of the same brand franchise.
For additional information regarding our capital allocation, refer to “Liquidity and Capital Resources – Capital Allocation” in Part II, Item 7 of this Form 10-K. Operations Each of our franchised dealerships acquires new vehicles for retail sale either directly from the applicable automotive manufacturer or distributor or through dealer trades with other stores of the same brand franchise.
Our customers are able to complete key automotive retail- and service-related transactions online through our digital channels such as selecting a vehicle with a guaranteed price, scheduling a test drive, calculating payment options, receiving a certified trade-in or purchase offer for a vehicle that a customer wants to sell, applying for financing, selecting vehicle protection products, scheduling in-store pick-up or home delivery, arranging service appointments, receiving service updates, paying for maintenance and 3 Table of Contents repair services, and signing paperwork electronically.
Our customers are able to complete key automotive retail- and service-related transactions online through our digital channels such as selecting a vehicle with a guaranteed price, scheduling a test drive, calculating payment options, receiving a certified trade-in or purchase offer for a vehicle that a customer wants to sell, applying for financing, selecting vehicle protection products, scheduling in-store pick-up or home delivery, arranging service appointments, receiving service updates, paying for maintenance and repair services, and signing paperwork electronically.
In addition, we offer AutoNation-branded Customer Financial Services products (including extended service and maintenance contracts and other vehicle protection products) and parts and accessories, as well as collision repair services at AutoNation-branded collision centers, mobile automotive repair and maintenance services through AutoNation Mobile Services, and auction services at AutoNation-branded automotive auctions.
In addition, we offer AutoNation-branded Customer Financial Services products (including extended service and maintenance contracts and other vehicle protection products) and parts and accessories, as well as collision repair services at AutoNation-branded collision centers, and auction services at AutoNation-branded automotive auctions.
In addition, we have granted certain manufacturers the right to acquire, at fair market value, our automotive dealerships franchised by such manufacturers in specified circumstances in the event of our default under certain of our debt agreements. 6 Table of Contents Franchise Agreements We operate each of our new vehicle stores under a franchise agreement with a vehicle manufacturer or distributor.
In addition, we have granted certain manufacturers the right to acquire, at fair market value, our automotive dealerships franchised by such manufacturers in specified circumstances in the event of our default under certain of our debt agreements. 6 Table of C ontents Franchise Agreements We operate each of our new vehicle stores under a franchise agreement with a vehicle manufacturer or distributor.
More than simply listening to associates, AutoNation also provides managers with tools they need to be able to address associate feedback constructively 10 Table of Contents with actionable next steps. The combined effort of these engagement activities drives AutoNation to continuously improve the culture of the organization.
More than simply listening to associates, AutoNation also provides managers with tools they need to be able to address associate feedback constructively 10 Table of C ontents with actionable next steps. The combined effort of these engagement activities drives AutoNation to continuously improve the culture of the organization.
Our stores, which we believe include some of the most recognizable and well-known in our key markets, sell 31 different new vehicle brands.
Our stores, which we believe include some of the most recognizable and well-known in our key markets, sell 30 different new vehicle brands.
We face competition from (i) several public companies that operate numerous automotive retail stores or collision centers on a regional or national basis, including franchised dealers that sell new and used vehicles, non-franchised dealers that sell only used vehicles, and manufacturers that sell directly to customers, (ii) private companies that operate automotive retail stores or collision centers in our markets, (iii) electric vehicle manufacturers who sell directly to consumers, and (iv) online and mobile sales and service platforms.
We face competition from 8 Table of C ontents (i) several public companies that operate numerous automotive retail stores or collision centers on a regional or national basis, including franchised dealers that sell new and used vehicles, non-franchised dealers that sell only used vehicles, and manufacturers that sell directly to customers, (ii) private companies that operate automotive retail stores or collision centers in our markets, (iii) electric vehicle manufacturers who sell directly to consumers, and (iv) online and mobile sales and service platforms.
As of December 31, 2024, we also owned and operated 52 AutoNation-branded collision centers, 24 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.
As of December 31, 2025, we also owned and operated 52 AutoNation-branded collision centers, 26 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.
Prior to joining AutoNation, Mr. Manley served as Head of Americas and as a member of the Group Executive Council for Stellantis N.V., one of the largest automotive original equipment manufacturers in the world, from January 2021 until October 2021. From July 2018 until January 2021, he served as Chief Executive Officer of Fiat Chrysler Automobiles N.V.
Manley served as Head of Americas and as a member of the Group Executive Council for Stellantis N.V., one of the largest automotive original equipment manufacturers in the world, from January 2021 until October 2021. From July 2018 until January 2021, he served as Chief Executive Officer of Fiat Chrysler Automobiles N.V. (“FCA”), a predecessor to Stellantis N.V. Mr.
The core brands of new vehicles that we sell, representing approximately 88% of the new vehicles that we sold in 2024, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, BMW, Mercedes-Benz, Stellantis, and Volkswagen (including Audi and Porsche).
The core brands of new vehicles that we sell, representing approximately 89% of the new vehicles that we sold in 2025, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, BMW, Mercedes-Benz, Stellantis, and Volkswagen (including Audi and Porsche).
Prior to joining AutoNation, Mr. Parent served as President and General Manager of Gulf States Toyota, Inc., one of the world’s largest independent distributors of Toyota vehicles and parts, from February 2017 until October 2023. Prior to joining Gulf States Toyota as a Senior Vice President in 2010, Mr.
Parent served as President and General Manager of Gulf States Toyota, Inc., one of the world’s largest independent distributors of Toyota vehicles and parts, from February 2017 until October 2023. 11 Table of C ontents Prior to joining Gulf States Toyota as a Senior Vice President in 2010, Mr.
We generally acquire used vehicles from customers, primarily through trade-ins and our “We’ll Buy Your Car” program, as well as through auctions, lease terminations, and other sources, and we generally recondition used vehicles acquired for retail sale in our parts and service departments.
We generally acquire 4 Table of C ontents used vehicles from customers, primarily through trade-ins and our “We’ll Buy Your Car” program, as well as through auctions, lease terminations, and other sources, and we generally recondition used vehicles acquired for retail sale in our parts and service departments.
ITEM 1. BUSINESS General AutoNation, Inc., through its subsidiaries, is one of the largest automotive retailers in the United States. As of December 31, 2024, we owned and operated 325 new vehicle franchises from 243 stores located in the United States, predominantly in major metropolitan markets in the Sunbelt region.
ITEM 1. BUSINESS General AutoNation, Inc., through its subsidiaries, is one of the largest automotive retailers in the United States. As of December 31, 2025, we owned and operated 323 new vehicle franchises from 245 stores located in the United States, predominantly in major metropolitan markets in the Sunbelt region.
We sell the products on a commission basis, and we also participate in future underwriting profit for certain products pursuant to retrospective commission arrangements with the issuers of those products. 5 Table of Contents As of December 31, 2024, we operated stores in the following states: State Number of Retail Stores (1) Number of Franchises Number of Other Locations (2) % of Total Revenue Florida 51 57 18 26 California 41 55 2 19 Texas 46 61 17 19 Colorado 20 31 1 6 Arizona 17 17 4 6 Washington 14 18 3 5 Georgia 14 20 4 4 Nevada 12 13 1 4 Maryland 14 14 3 3 Illinois 7 8 1 2 Tennessee 7 7 1 1 South Carolina 10 12 1 1 North Carolina 1 — — 1 Ohio 3 3 3 1 Virginia 2 2 — 1 Alabama 2 2 — 1 New Mexico (3) 1 — — — New York (3) 3 4 — — Missouri (3) 1 — — — New Jersey (3) 1 1 — — Total 267 325 59 100 (1) Includes franchised dealerships and AutoNation USA used vehicle stores.
We sell the products on a commission basis, and we also participate in future underwriting profit for certain products pursuant to retrospective commission arrangements with the issuers of those products. 5 Table of C ontents As of December 31, 2025, we operated stores in the following states: State Number of Retail Stores (1) Number of Franchises Number of Other Locations (2) % of Total Revenue Florida 51 57 18 26 Texas 48 61 17 20 California 41 54 2 19 Colorado 22 33 1 7 Arizona 17 17 4 6 Washington 13 14 3 4 Nevada 11 12 1 4 Georgia 14 20 4 3 Maryland 15 14 3 3 Illinois 9 11 1 3 South Carolina 10 12 1 1 Tennessee 6 6 1 1 Virginia 2 2 — 1 North Carolina 1 — — 1 Ohio 3 3 3 1 Alabama (3) 2 2 — — New Mexico (3) 1 — — — New York (3) 3 4 — — Missouri (3) 1 — — — New Jersey (3) 1 1 — — Total 271 323 59 100 (1) Includes franchised dealerships and AutoNation USA used vehicle stores.
Human Capital Resources At AutoNation, our associates are our greatest asset. As of December 31, 2024, we employed approximately 25,100 full-time and part-time employees, whom we refer to as “associates,” approximately 170 of whom were covered by collective bargaining agreements. The development, attraction, and retention of people is central to the culture at AutoNation.
Human Capital Resources As of December 31, 2025, we employed approximately 24,800 full-time and part-time employees, whom we refer to as “associates,” approximately 170 of whom were covered by collective bargaining agreements. The development, attraction, and retention of people is central to the culture at AutoNation.
Information about our Executive Officers The following sets forth certain information regarding our executive officers as of February 14, 2025. Name Age Position Years with AutoNation Years in Automotive Industry Michael Manley 60 Chief Executive Officer and Director 4 37 Thomas A.
Information about our Executive Officers The following sets forth certain information regarding our executive officers as of February 12, 2026. Name Age Position Years with AutoNation Years in Automotive Industry Michael Manley 61 Chief Executive Officer and Director 5 38 Thomas A.
We seek to maximize the performance and utilization of our assets through operational excellence and expand through the development and/or acquisition of key capabilities, products, and resources. We achieve this by both 2 Table of Contents optimizing our existing business and capturing new and developing opportunities.
We seek to maximize the performance and utilization of our assets through operational excellence and expand through the development and/or acquisition of key capabilities, technologies, products, and resources. We achieve 2 Table of C ontents this by optimizing our existing business, capturing new and developing opportunities, and strengthening relationships with our manufacturer partners and other key suppliers.
We continue to invest in the AutoNation retail brand, promoting personal transportation for America’s drivers, leading the charge to make transformational change in the automotive industry, and driving out cancer coast to coast. We are committed to delivering easy, transparent, and customer-centric services for our customers’ personal transportation needs.
We continue to invest in the AutoNation retail brand, promoting personal transportation for America’s drivers, leading the charge to make transformational change in the automotive industry, and driving out cancer coast to coast.
See “Human Capital Resources” below for more information about how we invest in our associates to help us prepare leaders with the vision, integrity, and expertise that enhance our operational excellence every day, drive store profitability, and create both positive employee and customer experiences. • Continue to provide an industry-leading automotive retail customer ex perience in our stores and through our digital channels .
See “Human Capital Resources” below for more information about how we invest in our associates to help us prepare leaders with the vision, integrity, and expertise that enhance our operational excellence every day, drive store profitability, and create both positive employee and customer experiences. Our business benefits from a well-diversified portfolio of automotive retail franchises.
Szlosek 61 Executive Vice President and Chief Financial Officer 2 2 Gianluca Camplone 55 Chief Operating Officer, AutoNation Parts, and Executive Vice President, Business Development 3 27 C.
Szlosek 62 Executive Vice President and Chief Financial Officer 3 3 Gianluca Camplone 56 Chief Operating Officer, AutoNation Parts, and Executive Vice President, Business Development 4 28 C.
To achieve and sustain operational excellence, we are pursuing the following strategies: • We strive to be the nation’s most comprehensive provider of transportation solutions to meet the mobility needs of our current and future customers through a comprehensive, unique suite of transportation solutions.
To achieve and sustain operational excellence, we are pursuing the following strategies: • We strive to be the nation’s most comprehensive provider of innovative products and exceptional services to meet the automotive needs of our current and future customers.
The AutoNation retail brand includes our AutoNation USA used vehicle stores, as well as AutoNation Finance, our captive auto finance company. We expect to continue to expand the AutoNation Finance loan portfolio as we increase finance penetration rates at our stores.
We expect to continue to expand the AutoNation Finance loan portfolio as we increase finance penetration rates at our stores.
Although we have, subject to certain limitations and exclusions, substantial insurance, we cannot assure you that we will not be exposed to uninsured or underinsured losses that could have a material adverse effect on our business, financial condition, results of operations, or cash flows.
Although we have, subject to certain limitations and exclusions, substantial insurance, we cannot assure you that we will not be exposed to uninsured or underinsured losses that could have a material adverse effect on our business, financial condition, results of operations, or cash flows. 9 Table of C ontents Provisions for retained losses and deductibles are made by charges to expense based upon periodic evaluations of the estimated ultimate liabilities on reported and unreported claims.
We expect that these offerings, initiatives, partnerships, and acquisitions will continue to expand and strengthen the AutoNation retail brand, improve the customer experience, provide new growth opportunities, and enable us to expand our footprint in our core and other markets. • Hire, train, and retain the best talent available to build dynamic teams to serve our customers.
We expect that these offerings, initiatives, partnerships, and acquisitions will continue to expand and strengthen the AutoNation retail brand, improve the customer experience, provide new growth opportunities, and enable us to expand our footprint in our core and other markets. • Continue to provide an industry-leading automotive retail customer ex perience in our stores and through our digital channels .
Our associates are at the core of our performance, by driving innovation and meeting the needs of our more than 11 million customers while protecting and enhancing AutoNation’s brand and reputation.
We value the dignity of all employees and are committed to maintaining a work environment where all associates are valued and treated with respect. Our associates are at the core of our performance, by driving innovation and meeting the needs of our more than 11 million customers while protecting and enhancing AutoNation’s brand and reputation.
We invest capital in our business to maintain and upgrade our existing facilities and to build new facilities for existing franchises and new AutoNation USA used vehicle stores, as well as for other strategic and technology initiatives. We also deploy capital opportunistically to complete acquisitions or investments, build facilities for newly awarded franchises, and/or repurchase our common stock and/or debt.
We also deploy capital opportunistically to complete acquisitions or investments, build facilities for newly awarded franchises, and/or repurchase our common stock and/or debt.
Coleman Edmunds 60 Executive Vice President, General Counsel and Corporate Secretary 29 29 Lisa Esparza 55 Executive Vice President and Chief Human Resource Officer 3 3 Dave Koehler 56 Chief Operating Officer, Non-Franchised Business 13 32 Jeff Parent 60 Chief Operating Officer 2 27 Michael Manley has served as our Chief Executive Officer and as a member of our Board since November 2021.
Coleman Edmunds 61 Executive Vice President, General Counsel and Corporate Secretary 30 30 Jeff Parent 61 Chief Operating Officer 3 28 Michael Manley has served as our Chief Executive Officer and as a member of our Board since November 2021. Prior to joining AutoNation, Mr.
Koehler held several key positions within AutoNation, including General Manager, Market President, and Senior Vice President of Sales between 2011 to 2019. Jeff Parent has served as our Chief Operating Officer since October 2023. Mr. Parent oversees AutoNation’s day-to-day operations and works as part of the leadership team to execute the company’s strategic vision and drive operational excellence.
Edmunds was in private practice with the international law firm of Baker & McKenzie. Jeff Parent has served as our Chief Operating Officer since October 2023. Mr. Parent oversees AutoNation’s day-to-day operations and works as part of the leadership team to execute the company’s strategic vision and drive operational excellence. Prior to joining AutoNation, Mr.
In addition, we have been able to attain industry-leading finance and insurance gross profit per vehicle retailed as we have maintained a strong product penetration of products sold per vehicle. Our capital allocation strategy is focused on growing long-term value per share.
Our higher-margin parts and service business has historically been less sensitive to macroeconomic conditions as compared to new and used vehicle sales. In addition, we have been able to attain industry-leading finance and insurance gross profit per vehicle retailed as we have maintained a strong product penetration of products sold per vehicle.
Lower new vehicle sales in recent years has also resulted in lower availability of used vehicle inventory, particularly for late model used vehicles. According to industry sources, as of December 31, 2024, 8 Table of Contents there were approximately 17,000 franchised automotive dealerships, which sell both new and used vehicles, in the United States.
According to industry sources, as of December 31, 2025, there were approximately 17,000 franchised automotive dealerships, which sell both new and used vehicles, in the United States. In addition, we estimate that there were approximately twice as many independent used vehicle dealers in the United States.
We could also be subject to fines and civil and criminal penalties in connection with alleged violations of federal and state laws or regulatory requirements. The automotive retail business is also subject to substantial risk of property loss due to the significant concentration of property values at store locations.
The automotive retail business is also subject to substantial risk of property loss due to the significant concentration of property values at store locations.
Insurance and Bonding Our business exposes us to the risk of liabilities arising out of our operations. For example, liabilities may arise out of claims of employees, customers, or other third parties for personal injury or property damage occurring in the course of our operations.
For example, liabilities may arise out of claims of employees, customers, or other third parties for personal injury or property damage occurring in the course of our operations. We could also be subject to fines and civil and criminal penalties in connection with alleged violations of federal and state laws or regulatory requirements.
In addition, we estimate that there were approximately twice as many independent used vehicle dealers in the United States. We continue to expand our footprint and increase scope and scale through both the acquisition of new dealerships and franchises and through the expansion of our AutoNation USA used vehicle stores.
We continue to expand our footprint and increase scope and scale through both the acquisition of new dealerships and franchises.
AutoNation Mobile Service, our mobile solution for automotive repair and maintenance services, offers customers the convenience of services and repairs at their home, workplace, or on-site for fleet vehicles. AutoNationParts.com, our e-commerce website, enables customers to purchase high-quality automotive parts and accessories at competitive prices, shipped directly to their homes.
AutoNationParts.com, our e-commerce website, enables customers to purchase high-quality automotive parts and accessories at competitive prices, shipped directly to their homes. AutoNation Finance, our captive auto finance company, provides financing to qualified retail customers on certain new and used vehicles we sell.
We believe that our business also benefits from diverse revenue streams generated by our new and used vehicle sales, parts and service business, and finance and insurance sales. Our higher-margin parts and service business has historically been less sensitive to macroeconomic conditions as compared to new and used vehicle sales.
In 2025, approximately 37% of total revenue was generated by Premium Luxury franchises, approximately 30% by Import franchises, and approximately 27% by Domestic franchises. We believe that our business also benefits from diverse revenue streams generated by our new and used vehicle sales, parts and service business, and finance and insurance sales.
AutoNation Finance, our captive auto finance company, provides financing to qualified retail customers on certain new and used vehicles we sell. Through AutoNation Finance, we have further extended our relationship with our customers beyond the car-buying experience and participate in the customer’s entire vehicle ownership cycle.
Through AutoNation Finance, we have further extended our relationship with our customers beyond the car-buying experience and participate in the customer’s entire vehicle ownership cycle. As a result, we are able to diversify our sources of income, generate additional profits, cash flows, and sales, and increase customer retention.
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As a result, we are able to diversify our sources of income, generate additional profits, cash flows, and sales, and increase customer retention. We also pursue opportunities to penetrate the extensive After-Sales service market and respond to our customers’ needs by broadening the reach of our existing After-Sales network.
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We pursue opportunities to penetrate the extensive After-Sales service market and respond to our customers’ needs by broadening the reach of our existing After-Sales network. We offer After-sales products and services at our franchised dealerships, AutoNation USA used vehicle stores, collision centers, automotive auctions, parts distribution centers, and through our mobile automotive repair and maintenance business and online platforms.
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At AutoNation, nothing drives our success more than how we hire, train, and retain great people. We value the dignity of all employees and are committed to maintaining a work environment where all associates are valued and treated with respect.
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We are committed to delivering easy, transparent, and customer-centric services for our customers’ personal transportation needs. 3 Table of C ontents The AutoNation retail brand includes our AutoNation USA used vehicle stores, which offer mobile automotive repair and maintenance services, as well as AutoNation Finance, our captive auto finance company.
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Finally, we leverage our scale to reduce costs related to purchasing certain equipment, supplies, and services through national vendor relationships. Our business benefits from a well-diversified portfolio of automotive retail franchises. In 2024, approximately 38% of total revenue was generated by Premium Luxury franchises, approximately 30% by Import franchises, and approximately 27% by Domestic franchises.
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Finally, we leverage our scale to reduce costs related to purchasing certain equipment, supplies, and services through national vendor relationships. • Hire, train, and retain the best talent available to build dynamic teams to serve our customers. At AutoNation, nothing drives our success more than how we hire, train, and retain great people.
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New vehicle unit volume in 2024 benefited from increases in new vehicle inventory levels due to higher levels of manufacturer vehicle production. The increasing supply and availability of new vehicle inventory has resulted in a shift in mix from used vehicles to new vehicles.
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Our capital allocation strategy is focused on growing long-term value per share. We invest capital in our business to maintain and upgrade our existing facilities and to build new facilities for existing franchises, as well as for other strategic and technology initiatives.
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During 2024, we recognized self-insured losses of $11.7 million primarily due to weather-related events. 9 Table of Contents Provisions for retained losses and deductibles are made by charges to expense based upon periodic evaluations of the estimated ultimate liabilities on reported and unreported claims.
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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.
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Edmunds was in private practice with the international law firm of Baker & McKenzie. Lisa Esparza has served as our Executive Vice President and Chief Human Resource Officer since September 2022. Prior to joining AutoNation, Ms.
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Interest income on financing provided through AutoNation Finance is recognized over the contractual term of the related loans. See “AutoNation Finance” in Part II, Item 7 of this Form 10-K for additional information. Insurance and Bonding Our business exposes us to the risk of liabilities arising out of our operations.
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Esparza served as Chief Human Resource Officer of Essilor North America, part of 11 Table of Contents EssilorLuxottica, the global leader in the design, manufacture, and distribution of ophthalmic lenses, frames, and sunglasses, from July 2019 to June 2022. From 2017 to 2019, Ms. Esparza served as Chief Human Resources Officer at Par Pacific Holdings, Inc.
Removed
(NYSE: PARR), which owns and operates market-leading energy and infrastructure businesses. In addition, Ms. Esparza has held various human resources leadership roles at Celanese, Flowserve, Ingersoll-Rand, and Eaton with global responsibilities. Dave Koehler has served as our Chief Operating Officer, Non-Franchised Business since March 2022. Mr. Koehler is responsible for overseeing AutoNation USA, AutoNation Mobile Service, and AutoNation Auto Auctions.
Removed
Previously, Mr. Koehler was the Eastern Region President for our stores located in Alabama, Florida, Georgia, Illinois, Maryland, Minnesota, New York, Ohio, Tennessee, and Virginia from May 2019 to February 2022. Prior to being promoted to Eastern Region President in May 2019, Mr.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

29 edited+6 added−16 removed106 unchanged
Biggest changeThe imposition of new tariffs, quotas, duties, or other restrictions or limitations could increase prices for vehicles and/or parts imported into the United States and adversely impact demand for such vehicles and/or parts.
Biggest changeThe imposition of new tariffs, quotas, duties, or other restrictions or limitations, including the tariffs announced by the U.S. government beginning in the first quarter of 2025 on imported vehicles and parts, could increase prices for vehicles and/or parts imported into the United States, limit the availability of such vehicles and/or parts, and adversely impact affordability and demand for such vehicles and/or parts, which in turn could have a material adverse effect on our business and results of operations.
Our stores are concentrated in states and regions in the United States, including primarily Florida, California, and Texas, in which actual or threatened natural disasters and severe weather events (such as hailstorms, hurricanes, earthquakes, fires, tornadoes, snowstorms, and landslides) may disrupt our store operations, which may adversely impact our business, results of operations, financial condition, and cash flows.
Our stores are concentrated in states and regions in the United States, including primarily Florida, Texas, and California, in which actual or threatened natural disasters and severe weather events (such as hailstorms, hurricanes, earthquakes, fires, tornadoes, snowstorms, and landslides) may disrupt our store operations, which may adversely impact our business, results of operations, financial condition, and cash flows.
The automotive retail and finance industry, including our facilities and operations, is subject to a wide range of federal, state, and local laws and regulations, such as those relating to motor vehicle sales, retail installment sales, leasing, finance and insurance products, indirect auto financing, origination and servicing of consumer auto finance loans, vehicle protection products, advertising, licensing, consumer protection, consumer privacy, escheatment, anti-money laundering, the environment, vehicle emissions and fuel economy, health and safety, and employment practices.
The automotive retail and finance industry, including our facilities and operations, is subject to a wide range of federal, state, and local laws and regulations, such as those relating to motor vehicle sales, retail installment sales, leasing, finance and insurance products, auto financing, origination and servicing of consumer auto finance loans, vehicle protection products, advertising, licensing, consumer protection, consumer privacy, escheatment, anti-money laundering, the environment, vehicle emissions and fuel economy, health and safety, and employment practices.
These and other risks could materially adversely affect any manufacturer and impact its ability to profitably design, market, produce, or distribute new vehicles, which in turn could materially adversely affect our ability to obtain or finance our desired new vehicle inventories, our ability to take advantage of manufacturer financial assistance programs, our ability to collect in full or on a timely basis our manufacturer warranty and other receivables, and/or our ability to obtain other goods and services provided by the 14 Table of Contents impacted manufacturer.
These and other risks could materially adversely affect any manufacturer and impact its ability to profitably design, market, produce, or distribute new 14 Table of C ontents vehicles, which in turn could materially adversely affect our ability to obtain or finance our desired new vehicle inventories, our ability to take advantage of manufacturer financial assistance programs, our ability to collect in full or on a timely basis our manufacturer warranty and other receivables, and/or our ability to obtain other goods and services provided by the impacted manufacturer.
With respect to motor vehicle sales, retail installment sales, leasing, finance and insurance products, vehicle protection products, and advertising, we are subject to various laws and regulations, the violation of which could subject us to consumer class action or other 17 Table of Contents lawsuits or governmental investigations and adverse publicity, in addition to administrative, civil, or criminal sanctions.
With respect to motor vehicle sales, retail 17 Table of C ontents installment sales, leasing, finance and insurance products, vehicle protection products, and advertising, we are subject to various laws and regulations, the violation of which could subject us to consumer class action or other lawsuits or governmental investigations and adverse publicity, in addition to administrative, civil, or criminal sanctions.
If any debt is accelerated, our liquid assets may not be sufficient to repay in full such indebtedness 19 Table of Contents and our other indebtedness. Additionally, we have granted certain manufacturers the right to acquire, at fair market value, our automotive stores franchised by those manufacturers in specified circumstances in the event of our default under our debt agreements.
If any debt is accelerated, our liquid assets may not be sufficient to repay in full such indebtedness and our other indebtedness. Additionally, we have granted certain manufacturers the right to acquire, at fair market value, our automotive stores franchised by those manufacturers in specified circumstances in the event of our default under our debt agreements.
We cannot assure you that a significant increase in interest rates or inventory levels or decrease in manufacturer floorplan assistance would not have a material adverse effect on our business, financial condition, results of operations, or cash flows. Risks Relating to Accounting Matters Goodwill and other intangible assets comprise a significant portion of our total assets.
We cannot assure you that a significant increase in interest rates or inventory levels or decrease in manufacturer floorplan assistance would not have a material adverse effect on our business, financial condition, results of operations, or cash flows. 20 Table of C ontents Risks Relating to Accounting Matters Goodwill and other intangible assets comprise a significant portion of our total assets.
In addition, natural disasters and adverse weather events, including the effects of climate change, may adversely impact new vehicle production and the global automotive supply chain, which in turn could materially adversely impact our business, results of operations, financial conditions, and cash flows. ITEM 1B. UNRESOLVED STAFF COMMENTS None.
In addition, natural disasters and adverse weather events, including the effects of climate change, may adversely impact new vehicle production and the global automotive supply chain, which in turn could materially adversely impact our business, results of operations, financial conditions, and cash flows. 21 Table of C ontents ITEM 1B. UNRESOLVED STAFF COMMENTS None.
Economic conditions and the other factors described above may also materially adversely impact our sales of parts and 13 Table of Contents automotive repair and maintenance services and automotive finance and insurance products and our ability to approve/provide financing to customers.
Economic conditions and the other factors described above may also materially adversely impact our sales of parts and automotive repair and maintenance services and automotive finance and insurance products and our ability to approve/provide financing to customers.
In addition, our net new vehicle inventory carrying expense (new vehicle floorplan interest expense net of floorplan assistance that we receive from 20 Table of Contents automotive manufacturers) may increase due to changes in interest rates, inventory levels, and manufacturer assistance.
In addition, our net new vehicle inventory carrying expense (new vehicle floorplan interest expense net of floorplan assistance that we receive from automotive manufacturers) may increase due to changes in interest rates, inventory levels, and manufacturer assistance.
The failure of our information systems to perform as designed or the failure to maintain and enhance or protect the integrity of these systems could disrupt our business operations, impact sales and results of operations, expose us to customer or third-party claims, or result in adverse publicity.
The failure of our information systems to 18 Table of C ontents perform as designed or the failure to maintain and enhance or protect the integrity of these systems could disrupt our business operations, impact sales and results of operations, expose us to customer or third-party claims, or result in adverse publicity.
In such case, we would seek an amendment or waiver of a covenant of our credit agreement or consider other options, such as raising capital through an equity issuance to pay down debt, which could be dilutive to stockholders.
In such 19 Table of C ontents case, we would seek an amendment or waiver of a covenant of our credit agreement or consider other options, such as raising capital through an equity issuance to pay down debt, which could be dilutive to stockholders.
Most vehicle manufacturers from time to time establish various marketing and sales incentive programs designed to spur consumer demand for their vehicles, particularly during periods of excess supply and/or in a flat or declining new vehicle sales market. These programs impact our operations, particularly our sales of new vehicles.
Most vehicle manufacturers from time to time establish various marketing and sales incentive programs designed to spur consumer demand for their vehicles, particularly during periods of excess supply and/or in a flat or declining new vehicle sales market.
The core brands of vehicles that we sell, representing approximately 88% of the new vehicles that we sold in 2024, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, BMW, Mercedes-Benz, Stellantis, and Volkswagen (including Audi and Porsche).
The core brands of vehicles that we sell, representing approximately 89% of the new vehicles that we sold in 2025, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, BMW, Mercedes-Benz, Stellantis, and Volkswagen (including Audi and Porsche).
We believe that many factors affect sales of new and used vehicles and automotive retailers’ gross profit margins in the United States and in our particular geographic markets, including the economy, fuel prices, credit availability, interest rates, consumer confidence, consumer shopping preferences and the success of third-party online and mobile sales platforms, the level of personal discretionary spending, labor force participation and unemployment rates, the state of housing markets, vehicle production levels and capacity, auto emission and fuel economy standards, the rate of inflation, currency exchange rates, tariffs, manufacturer incentives (and consumers’ reaction to such offers), intense industry competition, the prospects of war, other international conflicts or terrorist attacks, global pandemics, severe weather events, product quality, affordability and innovation, the number of consumers whose vehicle leases are expiring, the length of consumer loans on existing vehicles, and the rise of ride-sharing applications.
We believe that many factors affect sales of new and used vehicles and automotive retailers’ gross profit margins in the United States and in our particular geographic markets, including the economy, tariffs, fuel prices, credit availability, interest rates, consumer confidence, consumer shopping preferences, the level of personal discretionary spending, unemployment rates, the state of housing markets, vehicle production levels and capacity, auto emission and fuel economy standards, the rate of inflation, currency exchange rates, manufacturer incentives (and consumers’ reaction to such offers), industry competition, international conflicts or terrorist attacks, global pandemics, severe weather events, product quality, affordability and innovation, the number of consumers whose vehicle leases are expiring, the length of consumer loans on existing vehicles, and the rise of ride-sharing applications.
Certain statements and information set forth in this Annual Report on Form 10-K, including, without limitation, statements regarding our strategic initiatives, partnerships, or investments, including AutoNation Finance, statements regarding our expectations for the future performance of our business and the automotive retail industry, including during 2025, statements regarding the impact of the CDK Global (“CDK”) outage on our business and the availability of insurance or other sources of recovery, as well as other written or oral statements made from time to time by us or by our authorized executive officers on our behalf that describe our objectives, goals, or plans constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Certain statements and information set forth in this Annual Report on Form 10-K, including, without limitation, statements regarding our strategic initiatives, partnerships, or investments, including AutoNation Finance, statements regarding our expectations for the future performance of our business and the automotive retail industry; as well as other written or oral statements made from time to time by us or by our authorized executive officers on our behalf that describe our objectives, goals, or plans constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Additionally, we collect, process, and retain sensitive and confidential customer information in the normal course of our business. Our facilities and systems could experience security breaches, malicious software (malware, ransomware, and viruses), lost or misplaced data, programming errors, human errors, acts of vandalism, or other events.
Additionally, we collect, process, and retain sensitive and confidential customer information in the normal course of our business. Our facilities and systems could experience security breaches, including with the use of adversarial artificial intelligence software or techniques, malicious software (malware, ransomware, and viruses), lost or misplaced data, programming errors, human errors, acts of vandalism, or other events.
Significant increases in fuel economy requirements or new federal or state restrictions on emissions of carbon dioxide that may be imposed on vehicles and automobile fuels could adversely affect demand for vehicles, annual miles driven, or the products we sell.
In addition, vehicle manufacturers are subject to government-mandated fuel economy and greenhouse gas, or GHG, emission standards. Significant increases in fuel economy requirements or new federal or state restrictions on emissions of carbon dioxide that may be imposed on vehicles and automobile fuels could adversely affect demand for vehicles, annual miles driven, or the products we sell.
Regulation from the CFPB, other federal agencies, or state agencies could lead to significant changes in the manner that dealers are compensated for arranging customer financing, and while it is difficult to predict how any such changes might impact us, any adverse changes could have a material adverse impact on our finance and insurance business and results of operations. 18 Table of Contents Risks Related to Cybersecurity We depend on information technology for our business and are subject to risks related to cybersecurity threats and incidents, including those affecting our third-party suppliers and other service providers.
Regulation from the CFPB, other federal agencies, or state agencies could lead to significant changes in the manner that dealers are compensated for arranging customer financing, and while it is difficult to predict how any such changes might impact us, any adverse changes could have a material adverse impact on our finance and insurance business and results of operations.
In addition, an isolated business incident at a single store could materially adversely affect our other stores, retail brands, reputation, and sales channels, particularly if such incident results in adverse publicity, governmental investigations, or 16 Table of Contents litigation.
If we fail to preserve the value of our retail brands, maintain our reputation, or attract consumers to our own digital channels, our business could be adversely impacted. 16 Table of C ontents In addition, an isolated business incident at a single store could materially adversely affect our other stores, retail brands, reputation, and sales channels, particularly if such incident results in adverse publicity, governmental investigations, or litigation.
Risks Related to Strategic Initiatives We are investing significantly in various strategic initiatives, including the planned expansion of our AutoNation Finance business, our AutoNation USA used vehicle stores, and our AutoNation Mobile Service business, and if they are not successful, we will have incurred significant expenses without the benefit of improved financial results.
Risks Related to Strategic Initiatives We are investing significantly in various strategic initiatives and if they are not successful, we will have incurred significant expenses without the benefit of improved financial results.
As of December 31, 2024, we had $3.8 billion of total non-vehicle long-term debt, $3.7 billion of vehicle floorplan financing, and $801.5 million of non-recourse debt under our warehouse facilities. Our substantial indebtedness could have important consequences.
As of December 31, 2025, we had $4.0 billion of total non-vehicle long-term debt, $3.8 billion of vehicle floorplan financing, and $1.9 billion of non-recourse debt. Our substantial indebtedness could have important consequences.
We have invested and will continue to invest substantial resources in marketing activities with the goals of, among other things, extending and enhancing the AutoNation retail brand and attracting consumers to our own digital channels.
We have invested and will continue to invest substantial resources in marketing activities with the goals of, among other things, extending and enhancing the AutoNation retail brand and attracting consumers to our own digital channels. We are also investing significantly in various strategic initiatives, including the planned expansion of our AutoNation Finance business and our AutoNation USA used vehicle stores.
During 2024, we recorded non-cash impairment charges of $12.5 million associated with franchise rights at certain of our stores. See Note 19 of the Notes to Consolidated Financial Statements for more information.
We recorded non-cash goodwill impairment charges of $65.3 million during 2025 and non-cash franchise rights impairment charges of $93.7 million and $12.5 million during 2025 and 2024, respectively. See Note 19 of the Notes to Consolidated Financial Statements for more information.
The establishment or relocation of franchises in our markets could have a material adverse effect on the financial condition, results of operations, cash flows, and prospects of our stores in the market in which the franchise action is taken. 15 Table of Contents Our framework, franchise, and related agreements also grant the manufacturer the right to terminate or compel us to sell our franchise for a variety of reasons (including uncured performance deficiencies, any unapproved change of ownership or management, or any unapproved transfer of franchise rights or impairment of financial standing or failure to meet capital requirements), subject to applicable state franchise laws.
Our framework, franchise, and related agreements also grant the manufacturer the right to terminate or compel us to sell our franchise for a variety of reasons (including uncured performance deficiencies, any unapproved change of ownership or management, or any unapproved transfer of franchise rights or impairment of financial standing or failure to meet capital requirements), subject to applicable state franchise laws.
Since these programs are often not announced in advance, they can be difficult to plan for when ordering inventory. Furthermore, manufacturers may modify and discontinue these marketing and incentive programs from time to time, which could have a material adverse effect on our results of operations and cash flows.
Furthermore, manufacturers may modify and discontinue these marketing and incentive programs from time to time, which could have a material adverse effect on our results of operations and cash flows.
Our vehicle sales, service, and collision businesses could also be adversely affected by changes in the automotive industry driven by new technologies, distribution channels, or products, including ride-sharing applications, subscription services, autonomous and electric vehicles, and accident avoidance technology.
Our vehicle sales, service, and collision businesses could also be adversely affected by changes in the automotive industry driven by new technologies, distribution channels, or products, including ride-sharing applications, subscription services, autonomous and electric vehicles, and accident avoidance technology. 13 Table of C ontents Approximately 16.3 million, 16.0 million, and 15.6 million new vehicles, including retail and fleet vehicles, were sold in the United States in 2025, 2024, and 2023, respectively.
Approximately 16.0 million, 15.6 million, and 13.9 million new vehicles, including retail and fleet vehicles, were sold in the United States in 2024, 2023, and 2022, respectively. Our performance may differ from the performance of the automotive retail industry due to particular economic conditions and other factors in the geographic markets in which we operate.
Our performance may differ from the performance of the automotive retail industry due to particular economic conditions and other factors in the geographic markets in which we operate.
Sales of certain vehicles, particularly trucks and sport utility vehicles that historically have provided us with higher gross profit per vehicle retailed, are sensitive to fuel prices and the level of construction activity. In addition, rapid changes in fuel prices can cause shifts in consumer preferences which are difficult to accommodate given the long lead-time of inventory acquisition.
In addition, rapid changes in fuel prices can cause shifts in consumer preferences which are difficult to accommodate given the long lead-time of inventory acquisition.
Removed
We are also investing significantly in various strategic initiatives, including the planned expansion of our AutoNation Finance business, our AutoNation USA used vehicle stores, and our AutoNation Mobile Service business.
Added
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.
Removed
If we fail to preserve the value of our retail brands, maintain our reputation, or attract consumers to our own digital channels, our business could be adversely impacted.
Added
Any decreases in our customers’ disposable income could also negatively impact their ability to repay loans originated by AutoNation Finance, our captive auto finance company. Sales of certain vehicles, particularly trucks and sport utility vehicles that historically have provided us with higher gross profit per vehicle retailed, are sensitive to fuel prices and the level of construction activity.
Removed
In addition, vehicle manufacturers are subject to government-mandated fuel economy and greenhouse gas, or GHG, emission standards, which continue to change and become more stringent over time.
Added
These programs may impact our new vehicle acquisition costs, the price ultimately paid by our customers, and the number of vehicles sold in a particular period. Since these programs are often not announced in advance, they can be difficult to plan for when ordering inventory.
Removed
The Dodd-Frank Act also provided the FTC with new and expanded authority regarding automotive dealers, and the FTC has implemented an enforcement initiative relating to the advertising practices of automotive dealers.
Added
The establishment or relocation of franchises in our markets could have a material adverse effect on the 15 Table of C ontents financial condition, results of operations, cash flows, and prospects of our stores in the market in which the franchise action is taken.
Removed
In January 2024, the FTC published the Combating Auto Retail Scams Final Rule (“CARS Rule”), which prohibits certain automotive sales and marketing practices and establishes significant new dealer disclosure and record-keeping requirements broadly applicable throughout the car-buying process.
Added
Risks Related to Cybersecurity We depend on information technology for our business and are subject to risks related to cybersecurity threats and incidents, including those affecting our third-party suppliers and other service providers.
Removed
The Fifth Circuit Court of Appeals has recently vacated the CARS Rule on procedural grounds, but the FTC could appeal such ruling or take other actions to reissue the CARS Rule in a manner that conforms with the Fifth Circuit’s judgment.
Added
The rapid evolution and increased availability and use of artificial intelligence by us, third-party service providers, or threat actors may intensify cybersecurity risks by making cyber incidents more sophisticated and cyber incidents more difficult to detect, contain, and mitigate.
Removed
To the extent that the CARS Rule ultimately becomes effective or that states enact similar requirements, we may be subject to new administrative burdens that would likely increase our costs and could expose us to significant damages, other penalties, and/or adverse publicity.
Removed
Risks Relating to our Stockholders Our largest stockholders, as a result of their ownership stakes in us, may have the ability to exert substantial influence over actions to be taken or approved by our stockholders.
Removed
In addition, future share repurchases and fluctuations in the levels of ownership of our largest stockholders could impact the volume of trading, liquidity, and market price of our common stock. Based on filings made with the SEC through February 12, 2025, William H.
Removed
Gates III beneficially owns approximately 18.1% of the outstanding shares of our common stock, through holdings by Cascade Investment, L.L.C. (“Cascade”), which is solely owned by Mr. Gates.
Removed
As a result, Cascade may have the ability to exert substantial influence over actions to be taken or approved by our stockholders, including the election of directors and any transactions involving a change of control.
Removed
Based on filings made with the SEC through February 12, 2025, ESL Investments, Inc. together with certain of its investment affiliates (collectively, “ESL”) beneficially owns approximately 8.3% of the outstanding shares of our common stock.
Removed
As a result, ESL may also have the ability to exert substantial influence over actions to be taken or approved by our stockholders, including the election of directors and any transactions involving a change of control. 21 Table of Contents In the future, our largest stockholders may acquire or dispose of shares of our common stock and thereby increase or decrease their ownership stake in us.
Removed
Significant fluctuations in the levels of ownership of our largest stockholders could impact the volume of trading, liquidity, and market price of our common stock. In the aggregate, based on filings made with the SEC through February 12, 2025, William H. Gates III and ESL beneficially own approximately 26.4% of our outstanding shares.
Removed
Future share repurchases by the Company, together with any future share purchases by our affiliates, will reduce our “public float” (shares owned by non-affiliate stockholders and available for trading).
Removed
Such reduction in our public float could decrease the volume of trading and liquidity of our common stock, could lead to increased volatility in the market price of our common stock, or could adversely impact the market price of our common stock.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

4 edited+1 added−0 removed11 unchanged
Biggest changeIn the event of a cybersecurity incident, our CISO is equipped with a well-defined incident response plan. This plan includes immediate actions to mitigate the impact and long-term strategies for remediation and prevention of future incidents. Our CISO regularly informs our Chief Executive Officer and Chief Financial Officer of all aspects related to cybersecurity risks and incidents.
Biggest changeThis ongoing knowledge acquisition is crucial for the effective prevention, detection, mitigation, and remediation of cybersecurity incidents. In the event of a cybersecurity incident, our CISO is equipped with a well-defined incident response plan. This plan includes immediate actions to mitigate the impact and long-term strategies for remediation and prevention of future incidents.
Despite our efforts to ensure the integrity of our computer systems, software, networks, and other 22 Table of Contents technology assets, we may not be able to anticipate, detect, or recognize threats to our systems and assets, or to implement effective preventive measures against all cyber threats, especially because the techniques used are increasingly sophisticated, change frequently, are complex, and are often not recognized until launched.
Despite our efforts to ensure the integrity of our computer systems, software, networks, and other technology assets, we may not be able to anticipate, detect, or recognize threats to our systems and assets, or to implement effective preventive measures against all cyber threats, especially because the techniques used are increasingly sophisticated, change frequently, are complex, and are often not recognized until launched.
Our CISO oversees our cybersecurity governance programs, tests our compliance with applicable standards, remediates known risks, and leads our employee cybersecurity training program. Our CISO is continually informed about the latest developments in cybersecurity, including potential threats and innovative risk management techniques. This ongoing knowledge acquisition is crucial for the effective prevention, detection, mitigation, and remediation of cybersecurity incidents.
Our CISO oversees our cybersecurity governance programs, tests our compliance with applicable standards, remediates known risks, and leads our employee cybersecurity training program. 22 Table of C ontents Our CISO is continually informed about the latest developments in cybersecurity, including potential threats and innovative risk management techniques.
This helps ensure that the highest levels of management are kept abreast of the cybersecurity posture and potential risks facing the Company. Furthermore, significant cybersecurity matters and strategic risk management decisions are escalated to our Board of Directors, ensuring that they have comprehensive oversight and can provide guidance on critical cybersecurity issues.
Furthermore, significant cybersecurity matters and strategic risk management decisions are escalated to our Board of Directors, ensuring that they have comprehensive oversight and can provide guidance on critical cybersecurity issues.
Added
Our CISO regularly informs our Chief Executive Officer and Chief Financial Officer of all aspects related to cybersecurity risks and incidents. This helps ensure that the highest levels of management are kept abreast of the cybersecurity posture and potential risks facing the Company.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

7 edited+2 added−1 removed2 unchanged
Biggest changeThe most recent authorization by the Board of Directors was announced on April 26, 2024 for repurchases of up to an additional $1.0 billion. In 2024, all of the shares that we repurchased were repurchased under our stock repurchase program. As of February 12, 2025, $860.8 million remained available under our stock repurchase limit.
Biggest changeThe most recent authorization by the Board of Directors was announced on October 28, 2025 for repurchases of up to an additional $1.0 billion resulting in an aggregate $1.3 billion available under our stock repurchase limit at that time. In 2025, all of the shares that we repurchased were repurchased under our stock repurchase program.
We do not currently anticipate paying cash dividends for the foreseeable future. Issuer Purchases of Equity Securities The table below sets forth information with respect to shares of common stock repurchased by AutoNation, Inc. during the three and twelve months ended December 31, 2024.
We do not currently anticipate paying cash dividends for the foreseeable future. Issuer Purchases of Equity Securities The table below sets forth information with respect to shares of common stock repurchased by AutoNation, Inc. during the three and twelve months ended December 31, 2025.
The graph and table assume that $100 was invested on December 31, 2019 in each of our common stock, the S&P 500 Index, and the Public Auto Retail Peer Group and that any dividends were reinvested.
The graph and table assume that $100 was invested on December 31, 2020 in each of our common stock, the S&P 500 Index, and the Public Auto Retail Peer Group and that any dividends were reinvested.
Comparison of Five-Year Cumulative Return for AutoNation, Inc., the S&P 500 Index, and the Public Auto Retail Peer Group Copyright© 2024 Standard & Poor's, a division of S&P Global.
Comparison of Five-Year Cumulative Return for AutoNation, Inc., the S&P 500 Index, and the Public Auto Retail Peer Group Copyright© 2025 Standard & Poor's, a division of S&P Global.
Our stock repurchase program does not have an expiration date. 25 Table of Contents Stock Performance Graph The following graph and table compare the cumulative total stockholder return on our common stock from December 31, 2019 through December 31, 2024 with the performance of: (i) the Standard & Poor’s (“S&P”) 500 Index and (ii) a self-constructed peer group consisting of other public companies in the automotive retail market, referred to as the “Public Auto Retail Peer Group.” The Public Auto Retail Peer Group consists of Asbury Automotive Group, Inc., CarMax, Inc., Group 1 Automotive, Inc., Lithia Motors, Inc., Penske Automotive Group, Inc., and Sonic Automotive, Inc., and these companies are weighted by market capitalization.
Our stock repurchase program does not have an expiration date. 24 Table of Contents Stock Performance Graph The following graph and table compare the cumulative total stockholder return on our common stock from December 31, 2020 through December 31, 2025 with the performance of: (i) the Standard & Poor’s (“S&P”) 500 Index and (ii) a self-constructed peer group consisting of other public companies in the automotive retail market, referred to as the “Public Auto Retail Peer Group.” The Public Auto Retail Peer Group consists of Asbury Automotive Group, Inc., CarMax, Inc., Group 1 Automotive, Inc., Lithia Motors, Inc., Penske Automotive Group, Inc., and Sonic Automotive, Inc., and these companies are weighted by market capitalization.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information, Holders, and Dividends Our common stock is traded on the New York Stock Exchange under the symbol “AN.” As of February 12, 2025, there were 976 holders of record of our common stock.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information, Holders, and Dividends Our common stock is traded on the New York Stock Exchange under the symbol “AN.” As of February 10, 2026, there were 790 holders of record of our common stock.
Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (in millions) (1) October 1, 2024 – October 31, 2024 — $ — — $ 965.1 November 1, 2024 – November 30, 2024 369,900 $ 163.09 369,900 $ 904.8 December 1, 2024 – December 31, 2024 257,748 $ 170.82 257,748 $ 860.8 Total for three months ended December 31, 2024 627,648 627,648 Total for twelve months ended December 31, 2024 2,859,655 2,859,655 (1) Our Board of Directors from time to time authorizes the repurchase of shares of our common stock up to a certain monetary limit.
Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (in billions) (1) October 1, 2025 – October 31, 2025 713,860 $ 211.79 713,860 $ 1.3 November 1, 2025 – November 30, 2025 419,646 $ 199.12 419,646 $ 1.2 December 1, 2025 – December 31, 2025 544,283 $ 211.75 544,283 $ 1.1 Total for three months ended December 31, 2025 1,677,789 1,677,789 Total for twelve months ended December 31, 2025 4,059,423 4,059,423 (1) Our Board of Directors from time to time authorizes the repurchase of shares of our common stock up to a certain monetary limit.
Removed
All rights reserved. 12/2019 12/2020 12/2021 12/2022 12/2023 12/2024 AutoNation Inc. 100.00 143.51 240.28 220.65 308.82 349.25 S&P 500 100.00 118.40 152.39 124.79 157.59 197.02 Public Auto Retail Peer Group 100.00 125.66 169.74 122.92 171.62 186.35 ITEM 6. [RESERVED] 26 Table of Contents
Added
As of February 10, 2026, $947.3 million remained available under our stock repurchase limit.
Added
All rights reserved. 12/2020 12/2021 12/2022 12/2023 12/2024 12/2025 AutoNation Inc. 100.00 167.43 153.75 215.19 243.36 295.86 S&P 500 100.00 128.71 105.40 133.10 166.40 196.16 Public Auto Retail Peer Group 100.00 135.08 97.83 136.58 148.30 124.88 ITEM 6. [RESERVED] 25 Table of Contents

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

114 edited+44 added−44 removed43 unchanged
Biggest change(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. 33 Table of Contents Years Ended December 31, Years Ended December 31, 2024 (%) 2023 (%) 2023 (%) 2022 (%) Revenue mix percentages: New vehicle 49.3 47.7 47.7 43.6 Used vehicle 28.4 30.4 30.1 35.8 Parts and service 17.2 16.6 16.8 15.2 Finance and insurance, net 5.1 5.3 5.3 5.3 Other — — 0.1 0.1 Total 100.0 100.0 100.0 100.0 Gross profit mix percentages: New vehicle 16.4 20.9 20.8 26.0 Used vehicle 9.2 9.9 9.8 10.5 Parts and service 46.1 41.4 41.7 36.0 Finance and insurance 28.3 27.7 27.6 27.3 Other — 0.1 0.1 0.2 Total 100.0 100.0 100.0 100.0 Operating items as a percentage of revenue: Gross profit: New vehicle 6.0 8.3 8.3 11.6 Used vehicle-retail 5.9 6.5 6.5 6.0 Parts and service 48.0 47.6 47.3 46.2 Total 17.9 19.0 19.1 19.5 34 Table of Contents New Vehicle Years Ended December 31, ($ in millions, except per vehicle data) 2024 2023 2024 vs. 2023 2023 vs. 2022 Variance Favorable / (Unfavorable) % Variance 2022 Variance Favorable / (Unfavorable) % Variance Reported: Revenue $ 13,048.2 $ 12,767.4 $ 280.8 2.2 $ 11,754.4 $ 1,013.0 8.6 Gross profit $ 775.5 $ 1,061.8 $ (286.3) (27.0) $ 1,366.6 $ (304.8) (22.3) Retail vehicle unit sales 254,715 244,546 10,169 4.2 229,971 14,575 6.3 Revenue per vehicle retailed $ 51,227 $ 52,209 $ (982) (1.9) $ 51,113 $ 1,096 2.1 Gross profit per vehicle retailed $ 3,045 $ 4,342 $ (1,297) (29.9) $ 5,942 $ (1,600) (26.9) Gross profit as a percentage of revenue 5.9% 8.3% 11.6% Inventory days supply (industry standard of selling days) 39 days 36 days Years Ended December 31, 2024 2023 2024 vs. 2023 2023 2022 2023 vs. 2022 Variance Favorable / (Unfavorable) % Variance Variance Favorable / (Unfavorable) % Variance Same Store: Revenue $ 12,909.0 $ 12,627.3 $ 281.7 2.2 $ 12,572.1 $ 11,698.7 $ 873.4 7.5 Gross profit $ 769.5 $ 1,052.9 $ (283.4) (26.9) $ 1,048.4 $ 1,361.8 $ (313.4) (23.0) Retail vehicle unit sales 251,642 241,749 9,893 4.1 240,327 229,098 11,229 4.9 Revenue per vehicle retailed $ 51,299 $ 52,233 $ (934) (1.8) $ 52,312 $ 51,064 $ 1,248 2.4 Gross profit per vehicle retailed $ 3,058 $ 4,355 $ (1,297) (29.8) $ 4,362 $ 5,944 $ (1,582) (26.6) Gross profit as a percentage of revenue 6.0% 8.3% 8.3% 11.6% The following discussion of new vehicle results is on a same store basis.
Biggest changeThe 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. 33 Table of Contents New Vehicle Years Ended December 31, ($ in millions, except per vehicle data) 2025 2024 2025 vs. 2024 2024 vs. 2023 Variance Favorable / (Unfavorable) % Variance 2023 Variance Favorable / (Unfavorable) % Variance Reported: Revenue $ 13,501.3 $ 13,048.2 $ 453.1 3.5 $ 12,767.4 $ 280.8 2.2 Gross profit $ 664.8 $ 775.5 $ (110.7) (14.3) $ 1,061.8 $ (286.3) (27.0) Retail vehicle unit sales 259,264 254,715 4,549 1.8 244,546 10,169 4.2 Revenue per vehicle retailed $ 52,075 $ 51,227 $ 848 1.7 $ 52,209 $ (982) (1.9) Gross profit per vehicle retailed $ 2,564 $ 3,045 $ (481) (15.8) $ 4,342 $ (1,297) (29.9) Gross profit as a percentage of revenue 4.9% 5.9% 8.3% Inventory days supply (industry standard of selling days) 45 days 39 days Years Ended December 31, 2025 2024 2025 vs. 2024 2024 2023 2024 vs. 2023 Variance Favorable / (Unfavorable) % Variance Variance Favorable / (Unfavorable) % Variance Same Store: Revenue $ 13,375.1 $ 12,935.0 $ 440.1 3.4 $ 12,909.0 $ 12,627.3 $ 281.7 2.2 Gross profit $ 659.7 $ 771.2 $ (111.5) (14.5) $ 769.5 $ 1,052.9 $ (283.4) (26.9) Retail vehicle unit sales 256,736 252,229 4,507 1.8 251,642 241,749 9,893 4.1 Revenue per vehicle retailed $ 52,097 $ 51,283 $ 814 1.6 $ 51,299 $ 52,233 $ (934) (1.8) Gross profit per vehicle retailed $ 2,570 $ 3,058 $ (488) (16.0) $ 3,058 $ 4,355 $ (1,297) (29.8) Gross profit as a percentage of revenue 4.9% 6.0% 6.0% 8.3% 2025 compared to 2024 Same store new vehicle revenue increased during 2025, as compared to 2024, due to an increase in same store unit volume, particularly in the Domestic segment, and an increase in same store revenue PVR.
(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.
(2) Comprised of our non-franchised businesses, including AutoNation USA used vehicle stores, collision centers, parts distribution centers, mobile service, and auction operations, all of which do not meet the quantitative thresholds for reportable segments.
Our Import segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Toyota, Honda, Hyundai, Subaru, and Nissan. Our Premium Luxury segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Mercedes-Benz, BMW, Lexus, Audi, and Jaguar Land Rover.
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.
In the case of payments due upon the maturity of our debt instruments, we currently expect to be able to refinance such instruments in the normal course of business. 54 Table of Contents The table above excludes the non-recourse debt that relates to auto loans receivable funded through asset-backed term securitizations and/or warehouse facilities.
In the case of payments due upon the maturity of our debt instruments, we currently expect to be able to refinance such instruments in the normal course of business. 52 Table of Contents The table above excludes the non-recourse debt that relates to auto loans receivable funded through asset-backed term securitizations and/or warehouse facilities.
In February 2022, we filed an automatic shelf registration statement with the SEC that enables us to offer for sale, from time to time and as the capital markets permit, an unspecified amount of common stock, preferred stock, debt securities, warrants, subscription rights, depositary shares, stock purchase contracts, and units.
In February 2025, we filed an automatic shelf registration statement with the SEC that enables us to offer for sale, from time to time and as the capital markets permit, an unspecified amount of common stock, preferred stock, debt securities, warrants, subscription rights, depositary shares, stock purchase contracts, and units.
The franchises in each of our Domestic, Import, and Premium Luxury segments also sell used vehicles, parts and automotive repair and maintenance 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.
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.
In addition, we rely on various third-party suppliers for key products and services. 55 Table of Contents • We are subject to restrictions imposed by, and significant influence from, vehicle manufacturers that may adversely impact our business, financial condition, results of operations, cash flows, and prospects, including our ability to acquire additional stores. • We are investing significantly in various strategic initiatives, including the planned expansion of our AutoNation Finance business, our AutoNation USA used vehicle stores, and our AutoNation Mobile Service business, and if they are not successful, we will have incurred significant expenses without the benefit of improved financial results. • If we are not able to maintain and enhance our retail brands and reputation or to attract consumers to our own digital channels, or if events occur that damage our retail brands, reputation, or sales channels, our business and financial results may be harmed. • We are subject to various risks associated with originating and servicing auto finance loans through indirect lending to customers, any of which could have an adverse effect on our business. • New laws, regulations, or governmental policies in response to climate change, including fuel economy and greenhouse gas emission standards, or changes to existing standards, could adversely impact our business, results of operations, financial condition, cash flow, and prospects. • We are subject to numerous legal and administrative proceedings, which, if the outcomes are adverse to us, could materially adversely affect our business, results of operations, financial condition, cash flows, and prospects . • Our operations are subject to extensive governmental laws and regulations.
In addition, we rely on various third-party suppliers for key products and services. 53 Table of Contents • We are subject to restrictions imposed by, and significant influence from, vehicle manufacturers that may adversely impact our business, financial condition, results of operations, cash flows, and prospects, including our ability to acquire additional stores. • We are investing significantly in various strategic initiatives and if they are not successful, we will have incurred significant expenses without the benefit of improved financial results. • If we are not able to maintain and enhance our retail brands and reputation or to attract consumers to our own digital channels, or if events occur that damage our retail brands, reputation, or sales channels, our business and financial results may be harmed. • We are subject to various risks associated with originating and servicing auto finance loans through indirect lending to customers, any of which could have an adverse effect on our business. • New laws, regulations, or governmental policies in response to climate change, including fuel economy and greenhouse gas emission standards, or changes to existing standards, could adversely impact our business, results of operations, financial condition, cash flow, and prospects. • We are subject to numerous legal and administrative proceedings, which, if the outcomes are adverse to us, could materially adversely affect our business, results of operations, financial condition, cash flows, and prospects . • Our operations are subject to extensive governmental laws and regulations.
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 at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period.
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.
Off-Balance Sheet Arrangements As of December 31, 2024, we did not have any significant off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of SEC Regulation S-K.
Off-Balance Sheet Arrangements As of December 31, 2025, we did not have any significant off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of SEC Regulation S-K.
The specific terms of the leverage and interest coverage ratios can be found in our amended and restated credit agreement, which is filed with our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023. 51 Table of Contents As of December 31, 2024, we were in compliance with the covenants under our credit agreement and the indentures for our senior unsecured notes.
The specific terms of the leverage and interest coverage ratios can be found in our amended and restated credit agreement, which is filed with our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023. 49 Table of Contents As of December 31, 2025, we were in compliance with the covenants under our credit agreement and the indentures for our senior unsecured notes.
The following table presents the major components of our SG&A.
The following table presents the major components of our SG&A expenses.
In addition, we use the revolving credit facility under our credit agreement as a liquidity backstop for borrowings under the commercial paper program. We had $630.0 million of commercial paper notes outstanding at December 31, 2024. See Note 11 of the Notes to Consolidated Financial Statements for additional information.
In addition, we use the revolving credit facility under our credit agreement as a liquidity backstop for borrowings under the commercial paper program. We had $200.0 million of commercial paper notes outstanding at December 31, 2025. See Note 11 of the Notes to Consolidated Financial Statements for additional information.
(2) Amounts for non-vehicle long-term debt obligations reflect principal payments and are not reduced for unamortized debt discounts of $3.9 million or debt issuance costs of $14.0 million. (3) Primarily represents scheduled fixed interest payments on our outstanding senior unsecured notes and finance leases.
(2) Amounts for non-vehicle long-term debt obligations reflect principal payments and are not reduced for unamortized debt discounts of $4.0 million or debt issuance costs of $20.4 million. (3) Primarily represents scheduled fixed interest payments on our outstanding senior unsecured notes and finance leases.
(7) Our estimated self-insurance obligations are based on management estimates and actuarial calculations. Although these obligations do not have scheduled maturities, the timing of future payments is estimated based on historical patterns. (8) Primarily represents purchase orders and contracts in connection with real estate construction projects and information technology and communication systems, as well as acquisition-related commitments.
(7) Our estimated self-insurance obligations are based on management estimates and actuarial calculations. Although these obligations do not have scheduled maturities, the timing of future payments is estimated based on historical patterns. (8) Primarily represents purchase orders and contracts in connection with real estate construction projects and information technology and communication systems.
As of December 31, 2024, we also owned and operated 52 AutoNation-branded collision centers, 24 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.
As of December 31, 2025, we also owned and operated 52 AutoNation-branded collision centers, 26 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.
This result and discussion is not intended to address all potential outcomes that could have resulted if different assumptions had been used given the number of assumptions used in determining fair value and the degree of sensitivity to changes in such assumptions.
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.
During the fourth quarter of 2024, we concluded that a triggering event had occurred that indicated the fair values of franchise rights for two stores may have been less than their carrying values. Therefore, we performed quantitative franchise rights impairment tests for these stores during the fourth quarter of 2024.
During the fourth quarter of 2025, we concluded that a triggering event had occurred that indicated the fair values of franchise rights for three stores may have been less than their carrying values. Therefore, we performed quantitative franchise rights impairment tests for these stores during the fourth quarter of 2025.
Therefore, the amounts presented in the year 2023 column that is being compared to the year 2024 column may differ from the amounts presented in the year 2023 column that is being compared to the year 2022 column. We believe the presentation of this information provides a meaningful comparison of period-over-period results of our operations.
Therefore, the amounts presented in the year 2024 column that is being compared to the year 2025 column may differ from the same store amounts presented in the year 2024 column that is being compared to the year 2023 column. We believe the presentation of this information provides a meaningful comparison of period-over-period results of our operations.
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, 2024, the resulting impairment charge would have been approximately $3 million.
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 core brands of new vehicles that we sell, representing approximately 88% of the new vehicles that we sold in 2024, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, BMW, Mercedes-Benz, Stellantis, and Volkswagen (including Audi and Porsche).
The core brands of new vehicles that we sell, representing approximately 89% of the new vehicles that we sold in 2025, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, BMW, Mercedes-Benz, Stellantis, and Volkswagen (including Audi and Porsche).
Cash Flows The following table summarizes the changes in our cash provided by (used in) operating, investing, and financing activities: Years Ended December 31, (In millions) 2024 2023 2022 Net cash provided by operating activities $ 314.7 $ 724.0 $ 1,668.1 Net cash provided by (used in) investing activities $ 12.3 $ (569.9) $ (479.3) Net cash used in financing activities $ (300.6) $ (172.5) $ (1,154.0) Cash Flows from Operating Activities Our primary sources of operating cash flows result from the sale of vehicles, finance and insurance products, and parts and automotive repair and maintenance services, proceeds from vehicle floorplan payable-trade, and collections on auto loans receivable for vehicles sold through our stores.
Cash Flows The following table summarizes the changes in our cash provided by (used in) operating, investing, and financing activities: Years Ended December 31, (In millions) 2025 2024 2023 Net cash provided by operating activities $ 111.9 $ 314.7 $ 724.0 Net cash provided by (used in) investing activities $ (687.0) $ 12.3 $ (569.9) Net cash provided by (used in) financing activities $ 557.5 $ (300.6) $ (172.5) Cash Flows from Operating Activities Our primary sources of operating cash flows result from the sale of vehicles, finance and insurance products, and parts and automotive repair and maintenance services, proceeds from vehicle floorplan payable-trade, and collections on auto loans receivable for vehicles sold through our stores.
A downgrade in our credit ratings could negatively impact the interest rate payable on our 4.5% Senior Notes, 3.8% Senior Notes, and 4.75% Senior Notes and could negatively impact our ability to issue, or the interest rates for, commercial paper notes.
A downgrade in our credit ratings could negatively impact the interest rate payable on our 3.8% Senior Notes and 4.75% Senior Notes, and could also negatively impact our ability to issue, or the interest rates for, commercial paper notes or other debt.
Inventory Management Our new and used vehicle inventories are stated at the lower of cost or net realizable value in our Consolidated Balance Sheets. We monitor our vehicle inventory levels based on current economic conditions and seasonal sales trends. Our new vehicle inventory units at December 31, 2024 and 2023, were approximately 42,600 and 35,300, respectively.
Inventory Management Our new and used vehicle inventories are stated at the lower of cost or net realizable value in our Consolidated Balance Sheets. We monitor our vehicle inventory levels based on current economic conditions and seasonal sales trends. Our new vehicle inventory units at December 31, 2025 and 2024, were approximately 43,800 and 42,600, respectively.
We also offer indirect financing through our captive auto finance company on vehicles we sell. As of December 31, 2024, we had four reportable segments: Domestic, Import, Premium Luxury, and AutoNation Finance. Our Domestic segment is comprised of retail automotive franchises that sell new vehicles manufactured by Ford, General Motors, and Stellantis.
We also offer indirect financing through our captive auto finance company on vehicles we sell. As of December 31, 2025, 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.
Other Income (Loss), Net During 2024 and 2023, we recognized net gains of $14.5 million and $16.4 million, respectively, related to changes in the cash surrender value of corporate-owned life insurance (“COLI”) for deferred compensation plan participants as a result of changes in market performance of the underlying investments.
Other Income (Loss), Net During 2025 and 2024, we recognized net gains of $19.1 million and $14.5 million, respectively, related to changes in the cash surrender value of corporate-owned life insurance (“COLI”) for deferred compensation plan participants as a result of changes in market performance of the underlying investments.
(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. 31 Table of Contents Years Ended December 31, 2024 (%) 2023 (%) 2022 (%) Revenue mix percentages: New vehicle 48.8 47.4 43.6 Used vehicle 28.8 30.4 35.8 Parts and service 17.2 16.8 15.2 Finance and insurance, net 5.1 5.3 5.3 Other 0.1 0.1 0.1 Total 100.0 100.0 100.0 Gross profit mix percentages: New vehicle 16.2 20.7 26.0 Used vehicle 9.2 9.9 10.5 Parts and service 46.2 41.7 36.1 Finance and insurance 28.4 27.6 27.3 Other — 0.1 0.1 Total 100.0 100.0 100.0 Operating items as a percentage of revenue: Gross profit: New vehicle 5.9 8.3 11.6 Used vehicle-retail 5.9 6.5 6.0 Parts and service 47.9 47.2 46.3 Total 17.9 19.0 19.5 Selling, general, and administrative expenses 12.2 12.1 11.2 Operating income 4.9 6.1 7.5 Other operating items as a percentage of total gross profit: Selling, general, and administrative expenses 68.2 63.4 57.5 Operating income 27.3 32.2 38.4 December 31, 2024 2023 Days supply: New vehicle (industry standard of selling days) 39 days 36 days Used vehicle (trailing calendar month days) 37 days 39 days 32 Table of Contents Same Store Operating Data We have presented below our operating results on a same store basis to reflect our internal performance.
(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. 30 Table of Contents Years Ended December 31, 2025 (%) 2024 (%) 2023 (%) Revenue mix percentages: New vehicle 48.9 48.8 47.4 Used vehicle 28.3 28.8 30.4 Parts and service 17.5 17.2 16.8 Finance and insurance, net 5.3 5.1 5.3 Other — 0.1 0.1 Total 100.0 100.0 100.0 Gross profit mix percentages: New vehicle 13.4 16.2 20.7 Used vehicle 9.3 9.2 9.9 Parts and service 47.6 46.2 41.7 Finance and insurance 29.6 28.4 27.6 Other 0.1 — 0.1 Total 100.0 100.0 100.0 Operating items as a percentage of revenue: Gross profit: New vehicle 4.9 5.9 8.3 Used vehicle-retail 5.8 5.9 6.5 Parts and service 48.7 47.9 47.2 Total 17.9 17.9 19.0 Selling, general, and administrative expenses 12.2 12.2 12.1 Operating income 4.5 4.9 6.1 Other operating items as a percentage of total gross profit: Selling, general, and administrative expenses 67.9 68.2 63.4 Operating income 25.1 27.3 32.2 December 31, 2025 2024 Days supply: New vehicle (industry standard of selling days) 45 days 39 days Used vehicle (trailing calendar month days) 38 days 37 days 31 Table of Contents Same Store Operating Data We have presented below our operating results on a same store basis to reflect our internal performance.
Capital Allocation Our capital allocation strategy is focused on growing long-term value per share. We invest capital in our business to maintain and upgrade our existing facilities and to build new facilities for existing franchises and new AutoNation USA used vehicle stores, as well as for other strategic and technology initiatives.
Capital Allocation Our capital allocation strategy is focused on growing long-term value per share. We invest capital in our business to maintain and upgrade our existing facilities and to build new facilities for existing franchises, as well as for other strategic and technology initiatives.
Information about AutoNation, its business, and its results of operations may also be announced by posts on AutoNation’s X feed ( www.x.com/autonation ). The information that we post on our website and social media channels could be deemed to be material information.
Information about AutoNation, its business, and its results of operations may also be announced by posts on AutoNation’s X feed ( www.x.com/autonation ). 54 Table of Contents The information that we post on our websites and social media channels could be deemed to be material information.
In addition, we own a significant portion of our new vehicle franchise store locations and other locations associated with our non-franchised businesses, as well as other properties. At December 31, 2024, these properties had a net book value of $2.8 billion. None of these properties are mortgaged or encumbered.
In addition, we own a significant portion of our new vehicle franchise store locations and other locations associated with our non-franchised businesses, as well as other properties. At December 31, 2025, these properties had a net book value of $3.0 billion. None of these properties are mortgaged or encumbered.
Net income during 2024 benefited from an after-tax net gain of $35.3 million related to business/property dispositions, net of asset impairments, partially offset by after-tax franchise rights impairments of $9.4 million and after-tax self-insured losses of $8.8 million primarily related to weather-related catastrophes. During 2023, net income was adversely impacted by an after-tax loss of $12.4 million from weather-related catastrophes.
Net income during 2024 benefited from an after-tax net gain of $35.3 million related to business/property dispositions, net of asset impairments, partially offset by after-tax franchise rights impairments of $9.4 million and after-tax self-insured losses of $8.8 million primarily related to weather-related catastrophes.
Non-recourse debt, net of unamortized debt discounts and issuance costs, totaled $826.0 million at December 31, 2024. See Note 6 and Note 11 to the Consolidated Financial Statements for more information. In the ordinary course of business, we are required to post performance and surety bonds, letters of credit, and/or cash deposits as financial guarantees of our performance.
Non-recourse debt, net of unamortized debt discounts and issuance costs, totaled $1.9 billion at December 31, 2025. See Note 6 and Note 11 to the Consolidated Financial Statements for more information. In the ordinary course of business, we are required to post performance and surety bonds, letters of credit, and/or cash deposits as financial guarantees of our performance.
Certain statements and information set forth in this Annual Report on Form 10-K, including, without limitation, statements regarding our strategic initiatives, partnerships, or investments, including AutoNation Finance, statements regarding our expectations for the future performance of our business and the automotive retail industry, including during 2025, statements regarding the impact of the CDK outage on our business and the availability of insurance or other sources of recovery, as well as other written or oral statements made from time to time by us or by our authorized executive officers on our behalf that describe our objectives, goals, or plans constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Certain statements and information set forth in this Annual Report on Form 10-K, including, without limitation, statements regarding our strategic initiatives, partnerships, or investments, including AutoNation Finance, and statements regarding potential tariff-related impacts and our expectations for the future performance of our business and the automotive retail industry, including during 2026, as well as other written or oral statements made from time to time by us or by our authorized executive officers on our behalf that describe our objectives, goals, or plans constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
As of December 31, 2024, we owned and operated 325 new vehicle franchises from 243 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 31 different new vehicle brands.
As of December 31, 2025, we owned and operated 323 new vehicle franchises from 245 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.
A summary of shares repurchased under our share repurchase program authorized by our Board of Directors follows: (In millions, except per share data) 2024 2023 2022 Shares repurchased 2.9 6.4 15.6 Aggregate purchase price (1) $ 460.0 $ 863.6 $ 1,710.2 Average purchase price per share $ 160.86 $ 134.68 $ 109.86 (1) Excludes the excise tax accrual imposed under the Inflation Reduction Act of $4.2 million for 2024 and $8.1 million for 2023.
A summary of shares repurchased under our stock repurchase program authorized by our Board of Directors follows: (In millions, except per share data) 2025 2024 2023 Shares repurchased 4.1 2.9 6.4 Aggregate purchase price (1) $ 784.8 $ 460.0 $ 863.6 Average purchase price per share $ 193.33 $ 160.86 $ 134.68 (1) Excludes the excise tax accrual imposed under the Inflation Reduction Act of $7.4 million for 2025, $4.2 million for 2024, and $8.1 million for 2023.
The following table presents the components of ANF income (loss): 2024 % (1) 2023 % (1) 2022 % (1) Interest margin: Interest and fee income $ 118.4 15.7 % $ 84.0 20.9 % $ 20.6 22.5 % Interest expense (39.8) (5.3) % (20.8) (5.2) % (4.7) (5.1) % Total interest margin 78.6 10.4 % 63.2 15.7 % 15.9 17.3 % Provision for credit losses (57.5) (7.6) % (45.9) (11.4) % (44.0) NM Total interest margin after provision for loan losses 21.1 2.8 % 17.3 4.3 % (28.1) NM Direct expenses (2) (37.8) (5.0) % (39.3) (9.8) % (9.5) (10.4) % Gain on sale of auto loans receivable 7.4 1.0 % 8.1 2.0 % — — % AutoNation Finance income (loss) $ (9.3) (1.2) % $ (13.9) (3.5) % $ (37.6) NM NM - Not meaningful (1) Percentage of total average managed receivables (annualized amounts for 2022).
The following table presents the components of ANF income (loss): 2025 % (1) 2024 % (1) 2023 % (1) Interest margin: Interest and fee income $ 206.0 12.1 % $ 118.4 15.7 % $ 84.0 20.9 % Interest expense (76.3) (4.5) % (39.8) (5.3) % (20.8) (5.2) % Total interest margin 129.7 7.6 % 78.6 10.4 % 63.2 15.7 % Provision for credit losses (79.2) (4.6) % (57.5) (7.6) % (45.9) (11.4)% Total interest margin after provision for credit losses 50.5 3.0 % 21.1 2.8 % 17.3 4.3% Direct expenses (2) (40.7) (2.4) % (37.8) (5.0) % (39.3) (9.8) % Gain on sale of auto loans receivable — — % 7.4 1.0 % 8.1 2.0 % AutoNation Finance income (loss) $ 9.8 0.6 % $ (9.3) (1.2) % $ (13.9) (3.5)% NM - Not meaningful (1) Percentage of total average managed receivables.
We may first perform a qualitative assessment to determine whether it is more likely than not that a franchise right asset is impaired. We elected to perform quantitative tests for our annual franchise rights impairment testing as of April 30, 2024, and no impairment charges resulted from these quantitative tests.
We may first perform a qualitative assessment to determine whether it is more likely than not that a franchise right asset is impaired. We elected to perform quantitative tests for our annual franchise rights impairment testing as of April 30, 2025.
At December 31, 2024, surety bonds, letters of credit, and cash deposits totaled $124.3 million, of which $0.8 million were letters of credit. We do not currently provide cash collateral for outstanding letters of credit. We have negotiated a letter of credit sublimit as part of our revolving credit facility.
At December 31, 2025, surety bonds, letters of credit, and cash deposits totaled $115.5 million, of which $0.4 million were letters of credit. We do not currently provide cash collateral for outstanding letters of credit. We have negotiated a letter of credit sublimit as part of our revolving credit facility.
Our primary uses of cash from operating activities are repayments of vehicle floorplan payable-trade, purchases of inventory, personnel-related expenditures, originations of loans receivable for vehicles sold through our stores, and payments related to taxes and leased properties. 2024 compared to 2023 Net cash provided by operating activities decreased during 2024, as compared to 2023, primarily due to an increase in originations of auto loans receivable for vehicles sold through our stores as we continued to grow our AutoNation Finance business and increase our finance penetration rates associated with vehicles sold through our stores, as well as a decrease in earnings, partially offset by a decrease in working capital requirements.
Our primary uses of cash from operating activities are repayments of vehicle floorplan payable-trade, purchases of inventory, personnel-related expenditures, originations of auto loans receivable for vehicles sold through our stores, and payments related to taxes and leased properties. 2025 compared to 2024 Net cash provided by operating activities decreased during 2025, as compared to 2024, primarily due to a $304.5 million increase in auto loans receivable for vehicles sold through our stores as we continued to grow our AutoNation Finance business and increase our finance penetration rates associated with vehicles sold through our stores.
(3) Front-end loan-to-value represents the ratio of the amount financed to the total collateral value, which is measured as the vehicle selling price plus applicable taxes, title, and fees. 2024 2023 2022 Loan Performance Information Total average managed receivables $ 753.7 $ 401.4 $ 366.9 Allowance for credit losses as a percentage of ending managed receivables 5.0 % 10.3 % 15.3 % Net credit losses on managed receivables $ 34.5 $ 41.0 $ 8.0 Annualized net credit losses as a percentage of total average managed receivables 4.6 % 10.2 % 8.7 % Past due accounts as a percentage of ending managed receivables 2.6 % 6.5 % 5.2 % Average recovery rate (1) 37.2 % 43.1 % 47.7 % (1) Represents the average percentage of the outstanding principal balance we receive when a vehicle is repossessed and liquidated, generally at wholesale auctions.
(3) Front-end loan-to-value represents the ratio of the amount financed to the total collateral value, which is measured as the vehicle selling price plus applicable taxes, title, and fees. 2025 2024 2023 Loan Performance Information Total average managed receivables $ 1,709.3 $ 753.7 $ 401.4 Allowance for credit losses as a percentage of ending managed receivables 4.3 % 5.0 % 10.3 % Net credit losses on managed receivables $ 40.5 $ 34.5 $ 41.0 Annualized net credit losses as a percentage of total average managed receivables 2.4 % 4.6 % 10.2 % Accounts greater than 30 days past due as a percentage of ending managed receivables 2.7 % 2.6 % 6.5 % Average recovery rate (1) 50.0 % 37.2 % 43.1 % (1) Represents the average percentage of the outstanding principal balance we receive when a vehicle is repossessed and liquidated, generally at wholesale auctions. 2025 compared to 2024 ANF generated income of $9.8 million during 2025, compared to a loss of $9.3 million during 2024.
At December 31, 2024, our leverage and interest coverage ratios were as follows: December 31, 2024 Requirement Actual Leverage ratio ≤ 3.75x 2.45x Interest coverage ratio ≥ 3.00x 4.24x Vehicle Floorplan Payable The components of vehicle floorplan payable are as follows: (In millions) 2024 2023 Vehicle floorplan payable - trade $ 2,216.2 $ 1,760.0 Vehicle floorplan payable - non-trade 1,493.5 1,622.4 Vehicle floorplan payable $ 3,709.7 $ 3,382.4 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.
At December 31, 2025, our leverage and interest coverage ratios were as follows: December 31, 2025 Requirement Actual Leverage ratio ≤ 3.75x 2.44x Interest coverage ratio ≥ 3.00x 4.83x Vehicle Floorplan Payable The components of vehicle floorplan payable are as follows: (In millions) 2025 2024 Vehicle floorplan payable - trade $ 2,200.6 $ 2,216.2 Vehicle floorplan payable - non-trade 1,627.7 1,493.5 Vehicle floorplan payable $ 3,828.3 $ 3,709.7 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.
The decision to repurchase shares at any given point in time is based on such factors as the market price of our common stock versus our view of its intrinsic value, the potential impact on our capital structure (including compliance with our maximum leverage ratio, minimum interest coverage ratio, and other financial covenants in our debt agreements as well as our available liquidity), and the expected return on competing uses of capital such as acquisitions or investments, capital investments in our current businesses, or repurchases of our debt.
As of February 10, 2026, $947.3 million remained available under our stock repurchase limit authorized by the Board of Directors. 47 Table of Contents The decision to repurchase shares at any given point in time is based on factors such as the market price of our common stock versus our view of its intrinsic value, the potential impact on our capital structure (including compliance with our maximum leverage ratio, minimum interest coverage ratio, and other financial covenants in our debt agreements as well as our available liquidity), and the expected return on competing uses of capital such as acquisitions or investments, capital investments in our current businesses, or repurchases of our debt.
For the year ended December 31, 2024, new vehicle sales accounted for 49% of our total revenue and 16% of our total gross profit. Used vehicle sales accounted for 29% of our total revenue and 9% of our total gross profit. Our parts and service operations, while comprising 17% of our total revenue, contributed 46% of our total gross profit.
For the year ended December 31, 2025, new vehicle sales accounted for 49% of our total revenue and 13% of our total gross profit. Used vehicle sales accounted for 28% of our total revenue and 9% of our total gross profit. Our parts and service operations, while comprising 17% of our total revenue, contributed 48% of our total gross profit.
We will make facility and infrastructure upgrades and improvements from time to time as we identify projects that are required to maintain our current business or that we expect to provide us with acceptable rates of return. 52 Table of Contents 2024 compared to 2023 During 2024, we had net cash provided by investing activities, as compared to net cash used in investing activities during 2023, primarily due to a decrease in cash used in business acquisitions, an increase in cash received from business divestitures, a decrease in originations of loans receivable acquired through third-party dealers, and a decrease in capital expenditures.
Cash Flows from Investing Activities Net cash flows from investing activities consist primarily of cash used in capital additions and activity from business acquisitions, business divestitures, property dispositions, originations of and collections on auto loans receivable acquired through third-party dealers, and other transactions. 50 Table of Contents We will make facility and infrastructure upgrades and improvements from time to time as we identify projects that are required to maintain our current business or that we expect to provide us with acceptable rates of return. 2025 compared to 2024 During 2025, we had net cash used in investing activities, as compared to net cash provided by investing activities during 2024, primarily due to an increase in cash used for acquisitions, a decrease in cash received from divestitures, and a decrease in proceeds from the sale of auto loans receiveable.
Our capital allocation decisions are based on factors such as the expected rate of return on our investment, the market price of our common stock versus our view of its intrinsic value, the market price of our debt, the potential impact on our capital structure, our ability to complete acquisitions that meet our strategic objectives, market and vehicle brand criteria, and/or return on investment threshold, and limitations set forth in our debt agreements. 49 Table of Contents Share Repurchases Our Board of Directors from time to time authorizes the repurchase of shares of our common stock up to a certain monetary limit.
Our capital allocation decisions are based on factors such as the expected rate of return on our investment, the market price of our common stock versus our view of its intrinsic value, the market price of our debt, the potential impact on our capital structure, our ability to complete acquisitions that meet our strategic objectives, market and vehicle brand criteria, and/or return on investment threshold, and limitations set forth in our debt agreements.
During 2023, we repurchased 6.4 million shares of our common stock for an aggregate purchase price of $863.6 million (average purchase price per share of $134.68), excluding the excise tax imposed under the Inflation Reduction Act. 53 Table of Contents Material Cash Requirements The following table summarizes our current and long-term material cash requirements as of December 31, 2024.
During 2024, we repurchased 2.9 million shares of our common stock for an aggregate purchase price of $460.0 million (average purchase price per share of $160.86), excluding the excise tax imposed under the Inflation Reduction Act. 51 Table of Contents Material Cash Requirements The following table summarizes our current and long-term material cash requirements as of December 31, 2025.
Our finance and insurance sales, while comprising 5% of our total revenue, contributed 28% of our total gross profit. Market Conditions Full-year U.S. industry new vehicle unit sales were 16.0 million in 2024, as compared to 15.6 million in 2023, and 13.9 million in 2022.
Our finance and insurance sales, while comprising 5% of our total revenue, contributed 30% of our total gross profit. Market Conditions Full-year U.S. industry new vehicle unit sales, which includes sales in markets in which we do not compete, were 16.3 million in 2025, as compared to 16.0 million in 2024, and 15.6 million in 2023.
Capital Expenditures The following table sets forth information regarding our capital expenditures over the past three years: (In millions) 2024 2023 2022 Purchases of property and equipment $ 328.5 $ 410.3 $ 329.0 Acquisitions and Divestitures During 2024, we did not purchase any stores.
Capital Expenditures The following table sets forth information regarding our capital expenditures over the past three years: (In millions) 2025 2024 2023 Purchases of property and equipment $ 309.4 $ 328.5 $ 410.3 Acquisitions and Divestitures During 2025, we purchased one Domestic store, two Import stores, and two Premium Luxury stores. During 2024, we did not purchase any stores.
Results of Operations We had net income of $692.2 million and diluted earnings per share of $16.92 in 2024, as compared to net income of $1.0 billion and diluted earnings per share of $22.74 in 2023.
Results of Operations We had net income of $649.1 million and diluted earnings per share of $17.04 in 2025, as compared to net income of $692.2 million and diluted earnings per share of $16.92 in 2024.
Goodwill Goodwill for our reporting units is tested for impairment annually on April 30 or more frequently when events or changes in circumstances indicate that the carrying value of a reporting unit 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.
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.
Same store parts and service gross profit increased during 2024, as compared to 2023, primarily due to an increase in gross profit associated with warranty service of $66.4 million and customer-pay service of $10.9 million.
Same store parts and service gross profit increased during 2025, as compared to 2024, primarily due to an increase in gross profit associated with customer-pay service of $68.6 million and warranty service of $57.5 million.
In the ordinary course of business, we are required to post performance and surety bonds, letters of credit, and/or cash deposits as financial guarantees of our performance primarily relating to insurance matters.
In the ordinary course of business, we are required to post performance and surety bonds, letters of credit, and/or cash deposits as financial guarantees of our performance primarily relating to insurance matters. At December 31, 2025, surety bonds, letters of credit, and cash deposits totaled $115.5 million, of which $0.4 million were letters of credit.
In addition, we may seek to securitize auto loans receivable to provide funding for our auto finance company. 48 Table of Contents Available Liquidity Resources We had the following sources of liquidity available for the years ended December 31, 2024 and 2023: (In millions) December 31, 2024 December 31, 2023 Cash and cash equivalents $ 59.8 $ 60.8 Revolving credit facility $ 1,899.2 (1) $ 1,899.2 Secured used vehicle floorplan facilities (2) $ 0.4 $ 0.9 Non-recourse warehouse facilities (3) $ 1.1 $ — (1) At December 31, 2024, we had $0.8 million of letters of credit outstanding.
In addition, we expect to periodically securitize auto loans receivable to provide funding for our auto finance company. 46 Table of Contents Available Liquidity Resources We had the following sources of liquidity available for the years ended December 31, 2025 and 2024: (In millions) December 31, 2025 December 31, 2024 Cash and cash equivalents $ 58.6 $ 59.8 Revolving credit facility $ 1,899.6 (1) $ 1,899.2 (1) At December 31, 2025, we had $0.4 million of letters of credit outstanding.
Other interest expense was $179.7 million in 2024 compared to $181.4 million in 2023. The decrease in interest expense of $1.7 million was driven by lower average interest rates, partially offset by higher average debt balances.
Other interest expense was $180.0 million in 2025 compared to $179.7 million in 2024. The slight increase in interest expense of $0.3 million was driven by higher average interest rates, partially offset by lower average debt balances.
Discussion of year-to-year comparisons between 2023 and 2022 (other than for AutoNation Finance, a new reportable segment, for which discussion is included herein) can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
This section of this Form 10-K includes discussion of year-to-year comparisons between 2025 and 2024. Discussion of year-to-year comparisons between 2024 and 2023 can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
Cash Flows from Financing Activities Net cash flows from financing activities primarily include repurchases of common stock, debt activity, and changes in vehicle floorplan payable-non-trade. 2024 compared to 2023 Cash flows from financing activities include changes in vehicle floorplan payable-non-trade totaling net repayments of $113.5 million during 2024 compared to net proceeds of $425.3 million during 2023, and changes in commercial paper notes outstanding totaling net proceeds of $190.0 million during 2024 compared to net proceeds of $390.0 million during 2023.
Cash flows from financing activities include changes in commercial paper notes outstanding totaling net payments of $430.0 million during 2025 compared to net proceeds of $190.0 million during 2024, and changes in vehicle floorplan payable-non-trade totaling net proceeds of $61.1 million during 2025 and net payments of $113.5 million during 2024.
See Note 19 of the Notes to Consolidated Financial Statements for a description of the valuation method and related estimates and assumptions used in our quantitative impairment testing.
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 19 of the Notes to Consolidated Financial Statements for a description of the valuation method and related estimates and assumptions used in our quantitative impairment testing.
(In millions) 2024 2023 2022 Cash used in business acquisitions, net (1) $ — $ (271.4) $ (191.6) Cash received from business divestitures, net $ 156.0 $ 23.2 $ 55.2 (1) Excludes finance leases. 50 Table of Contents Debt The following table sets forth our non-vehicle long-term debt as of December 31, 2024 and 2023: (in millions) Debt Description Maturity Date Interest Payable 2024 2023 3.5% Senior Notes November 15, 2024 May 15 and November 15 $ — $ 450.0 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 1.95% Senior Notes August 1, 2028 February 1 and August 1 400.0 400.0 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 Revolving credit facility July 18, 2028 Monthly — — Finance leases and other debt Various dates through 2041 350.0 362.2 3,150.0 3,612.2 Less: unamortized debt discounts and debt issuance costs (17.9) (21.9) Less: current maturities (518.5) (462.4) Long-term debt, net of current maturities $ 2,613.6 $ 3,127.9 In November 2024, we repaid the outstanding $450.0 million of 3.5% Senior Notes due 2024.
Debt The following table sets forth our non-vehicle long-term debt as of December 31, 2025 and 2024: (in millions) Debt Description Maturity Date Interest Payable 2025 2024 4.5% Senior Notes October 1, 2025 April 1 and October 1 $ — $ 450.0 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 — 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 — Revolving credit facility July 18, 2028 Monthly — — Finance leases and other debt Various dates through 2041 353.9 350.0 3,803.9 3,150.0 Less: unamortized debt discounts and debt issuance costs (24.4) (17.9) Less: current maturities (74.7) (518.5) Long-term debt, net of current maturities $ 3,704.8 $ 2,613.6 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.
We typically use non-recourse funding facilities, including warehouse facilities and asset-backed term funding transactions, as well as free cash flows from operations to fund the auto loans receivable of ANF.
We typically use non-recourse funding facilities, including warehouse facilities and asset-backed term funding transactions, as well as free cash flows from operations to fund the auto loans receivable of ANF. See Notes 6 and 11 of the Notes to Consolidated Financial Statements for more information about our auto loans receivables and related non-recourse debt, respectively.
As of December 31, 2024, we had 79 stores with franchise rights totaling $861.2 million. 30 Table of Contents Reported Operating Data Years Ended December 31, ($ in millions, except per vehicle data) 2024 vs. 2023 2023 vs. 2022 2024 2023 Variance Favorable / (Unfavorable) % Variance 2022 Variance Favorable / (Unfavorable) % Variance Revenue: New vehicle $ 13,048.2 $ 12,767.4 $ 280.8 2.2 $ 11,754.4 $ 1,013.0 8.6 Retail used vehicle 7,076.8 7,639.5 (562.7) (7.4) 9,020.9 (1,381.4) (15.3) Wholesale 643.1 559.0 84.1 15.0 640.9 (81.9) (12.8) Used vehicle 7,719.9 8,198.5 (478.6) (5.8) 9,661.8 (1,463.3) (15.1) Finance and insurance, net 1,360.1 1,418.8 (58.7) (4.1) 1,437.3 (18.5) (1.3) Total variable operations (1) 22,128.2 22,384.7 (256.5) (1.1) 22,853.5 (468.8) (2.1) Parts and service 4,614.6 4,533.7 80.9 1.8 4,100.6 433.1 10.6 Other 22.6 30.5 (7.9) 30.9 (0.4) Total revenue $ 26,765.4 $ 26,948.9 $ (183.5) (0.7) $ 26,985.0 $ (36.1) (0.1) Gross profit: New vehicle $ 775.5 $ 1,061.8 $ (286.3) (27.0) $ 1,366.6 $ (304.8) (22.3) Retail used vehicle 414.4 493.1 (78.7) (16.0) 538.3 (45.2) (8.4) Wholesale 24.1 14.9 9.2 14.8 0.1 Used vehicle 438.5 508.0 (69.5) (13.7) 553.1 (45.1) (8.2) Finance and insurance 1,360.1 1,418.8 (58.7) (4.1) 1,437.3 (18.5) (1.3) Total variable operations (1) 2,574.1 2,988.6 (414.5) (13.9) 3,357.0 (368.4) (11.0) Parts and service 2,209.0 2,139.3 69.7 3.3 1,900.3 239.0 12.6 Other 2.3 3.6 (1.3) 8.0 (4.4) Total gross profit 4,785.4 5,131.5 (346.1) (6.7) 5,265.3 (133.8) (2.5) AutoNation Finance income (loss) (9.3) (13.9) 4.6 (37.6) 23.7 Selling, general, and administrative expenses 3,263.9 3,253.2 (10.7) (0.3) 3,026.1 (227.1) (7.5) Depreciation and amortization 240.7 220.5 (20.2) 200.3 (20.2) Franchise rights impairment 12.5 — (12.5) — — Other income, net (46.5) (8.0) 38.5 (23.2) (15.2) Operating income 1,305.5 1,651.9 (346.4) (21.0) 2,024.5 (372.6) (18.4) Non-operating income (expense) items: Floorplan interest expense (218.9) (144.7) (74.2) (41.4) (103.3) Other interest expense (179.7) (181.4) 1.7 (134.9) (46.5) Other income (loss), net 9.8 24.4 (14.6) (14.7) 39.1 Income from continuing operations before income taxes $ 916.7 $ 1,350.2 $ (433.5) (32.1) $ 1,833.5 $ (483.3) (26.4) Retail vehicle unit sales: New vehicle 254,715 244,546 10,169 4.2 229,971 14,575 6.3 Used vehicle 265,908 274,019 (8,111) (3.0) 299,806 (25,787) (8.6) 520,623 518,565 2,058 0.4 529,777 (11,212) (2.1) Revenue per vehicle retailed: New vehicle $ 51,227 $ 52,209 $ (982) (1.9) $ 51,113 $ 1,096 2.1 Used vehicle $ 26,614 $ 27,879 $ (1,265) (4.5) $ 30,089 $ (2,210) (7.3) Gross profit per vehicle retailed: New vehicle $ 3,045 $ 4,342 $ (1,297) (29.9) $ 5,942 $ (1,600) (26.9) Used vehicle $ 1,558 $ 1,800 $ (242) (13.4) $ 1,795 $ 5 0.3 Finance and insurance $ 2,612 $ 2,736 $ (124) (4.5) $ 2,713 $ 23 0.8 Total variable operations (2) $ 4,898 $ 5,734 $ (836) (14.6) $ 6,309 $ (575) (9.1) (1) Total variable operations includes new vehicle, used vehicle (retail and wholesale), and finance and insurance results.
As of December 31, 2025, we had 76 stores with franchise rights totaling $1.0 billion. 29 Table of Contents Reported Operating Data Years Ended December 31, ($ in millions, except per vehicle data) 2025 vs. 2024 2024 vs. 2023 2025 2024 Variance Favorable / (Unfavorable) % Variance 2023 Variance Favorable / (Unfavorable) % Variance Revenue: New vehicle $ 13,501.3 $ 13,048.2 $ 453.1 3.5 $ 12,767.4 $ 280.8 2.2 Retail used vehicle 7,269.1 7,076.8 192.3 2.7 7,639.5 (562.7) (7.4) Wholesale 544.9 643.1 (98.2) (15.3) 559.0 84.1 15.0 Used vehicle 7,814.0 7,719.9 94.1 1.2 8,198.5 (478.6) (5.8) Finance and insurance, net 1,464.4 1,360.1 104.3 7.7 1,418.8 (58.7) (4.1) Total variable operations (1) 22,779.7 22,128.2 651.5 2.9 22,384.7 (256.5) (1.1) Parts and service 4,835.4 4,614.6 220.8 4.8 4,533.7 80.9 1.8 Other 16.3 22.6 (6.3) 30.5 (7.9) Total revenue $ 27,631.4 $ 26,765.4 $ 866.0 3.2 $ 26,948.9 $ (183.5) (0.7) Gross profit: New vehicle $ 664.8 $ 775.5 $ (110.7) (14.3) $ 1,061.8 $ (286.3) (27.0) Retail used vehicle 419.2 414.4 4.8 1.2 493.1 (78.7) (16.0) Wholesale 43.4 24.1 19.3 14.9 9.2 Used vehicle 462.6 438.5 24.1 5.5 508.0 (69.5) (13.7) Finance and insurance 1,464.4 1,360.1 104.3 7.7 1,418.8 (58.7) (4.1) Total variable operations (1) 2,591.8 2,574.1 17.7 0.7 2,988.6 (414.5) (13.9) Parts and service 2,355.1 2,209.0 146.1 6.6 2,139.3 69.7 3.3 Other 1.6 2.3 (0.7) 3.6 (1.3) Total gross profit 4,948.5 4,785.4 163.1 3.4 5,131.5 (346.1) (6.7) AutoNation Finance income (loss) 9.8 (9.3) 19.1 (13.9) 4.6 Selling, general, and administrative expenses 3,362.2 3,263.9 (98.3) (3.0) 3,253.2 (10.7) (0.3) Depreciation and amortization 251.4 240.7 (10.7) 220.5 (20.2) Goodwill impairment 65.3 — (65.3) — — Franchise rights impairment 93.7 12.5 (81.2) — (12.5) Other income, net (54.2) (46.5) 7.7 (8.0) 38.5 Operating income 1,239.9 1,305.5 (65.6) (5.0) 1,651.9 (346.4) (21.0) Non-operating income (expense) items: Floorplan interest expense (188.8) (218.9) 30.1 (144.7) (74.2) Other interest expense (180.0) (179.7) (0.3) (181.4) 1.7 Other income, net 13.4 9.8 3.6 24.4 (14.6) Income from continuing operations before income taxes $ 884.5 $ 916.7 $ (32.2) (3.5) $ 1,350.2 $ (433.5) (32.1) Retail vehicle unit sales: New vehicle 259,264 254,715 4,549 1.8 244,546 10,169 4.2 Used vehicle 269,558 265,908 3,650 1.4 274,019 (8,111) (3.0) 528,822 520,623 8,199 1.6 518,565 2,058 0.4 Revenue per vehicle retailed: New vehicle $ 52,075 $ 51,227 $ 848 1.7 $ 52,209 $ (982) (1.9) Used vehicle $ 26,967 $ 26,614 $ 353 1.3 $ 27,879 $ (1,265) (4.5) Gross profit per vehicle retailed: New vehicle $ 2,564 $ 3,045 $ (481) (15.8) $ 4,342 $ (1,297) (29.9) Used vehicle $ 1,555 $ 1,558 $ (3) (0.2) $ 1,800 $ (242) (13.4) Finance and insurance $ 2,769 $ 2,612 $ 157 6.0 $ 2,736 $ (124) (4.5) Total variable operations (2) $ 4,819 $ 4,898 $ (79) (1.6) $ 5,734 $ (836) (14.6) (1) Total variable operations includes new vehicle, used vehicle (retail and wholesale), and finance and insurance results.
Years Ended December 31, 2024 vs. 2023 2023 vs. 2022 ($ in millions) 2024 2023 Variance Favorable / (Unfavorable) % Variance 2022 Variance Favorable / (Unfavorable) % Variance Revenue: Domestic $ 7,140.3 $ 7,573.2 $ (432.9) (5.7) $ 7,987.5 $ (414.3) (5.2) Import 8,156.9 7,880.9 276.0 3.5 7,690.3 190.6 2.5 Premium Luxury 10,139.9 10,266.4 (126.5) (1.2) 10,278.1 (11.7) (0.1) Total Franchised Dealerships 25,437.1 25,720.5 (283.4) (1.1) 25,955.9 (235.4) (0.9) Corporate and other 1,328.3 1,228.4 99.9 8.1 1,029.1 199.3 19.4 Total consolidated revenue $ 26,765.4 $ 26,948.9 $ (183.5) (0.7) $ 26,985.0 $ (36.1) (0.1) Segment income (1) : Domestic $ 254.9 $ 415.4 $ (160.5) (38.6) $ 565.3 $ (149.9) (26.5) Import 476.6 635.0 (158.4) (24.9) 734.2 (99.2) (13.5) Premium Luxury 675.7 836.5 (160.8) (19.2) 969.1 (132.6) (13.7) Total Franchised Dealerships 1,407.2 1,886.9 (479.7) (25.4) 2,268.6 (381.7) (16.8) AutoNation Finance income (loss) (9.3) (13.9) 4.6 (37.6) 23.7 Corporate and other (2) (311.3) (365.8) 54.5 (247.9) (117.9) Floorplan interest expense 218.9 144.7 (74.2) 41.4 (103.3) Operating income $ 1,305.5 $ 1,651.9 $ (346.4) (21.0) $ 2,024.5 $ (372.6) (18.4) Retail new vehicle unit sales: Domestic 69,268 67,471 1,797 2.7 66,375 1,096 1.7 Import 116,242 108,068 8,174 7.6 95,886 12,182 12.7 Premium Luxury 69,205 69,007 198 0.3 67,710 1,297 1.9 254,715 244,546 10,169 4.2 229,971 14,575 6.3 Retail used vehicle unit sales: Domestic 74,851 84,552 (9,701) (11.5) 97,642 (13,090) (13.4) Import 90,761 91,146 (385) (0.4) 100,131 (8,985) (9.0) Premium Luxury 73,435 75,334 (1,899) (2.5) 83,858 (8,524) (10.2) Other 26,861 22,987 3,874 16.9 18,175 4,812 26.5 265,908 274,019 (8,111) (3.0) 299,806 (25,787) (8.6) (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.
Years Ended December 31, 2025 vs. 2024 2024 vs. 2023 ($ in millions) 2025 2024 Variance Favorable / (Unfavorable) % Variance 2023 Variance Favorable / (Unfavorable) % Variance Revenue: Domestic $ 7,474.4 $ 7,140.3 $ 334.1 4.7 $ 7,573.2 $ (432.9) (5.7) Import 8,423.3 8,156.9 266.4 3.3 7,880.9 276.0 3.5 Premium Luxury 10,333.6 10,139.9 193.7 1.9 10,266.4 (126.5) (1.2) Total Franchised Dealerships 26,231.3 25,437.1 794.2 3.1 25,720.5 (283.4) (1.1) Corporate and other 1,400.1 1,328.3 71.8 5.4 1,228.4 99.9 8.1 Total consolidated revenue $ 27,631.4 $ 26,765.4 $ 866.0 3.2 $ 26,948.9 $ (183.5) (0.7) Segment income (1) : Domestic $ 322.2 $ 254.9 $ 67.3 26.4 $ 415.4 $ (160.5) (38.6) Import 490.1 476.6 13.5 2.8 635.0 (158.4) (24.9) Premium Luxury 685.1 675.7 9.4 1.4 836.5 (160.8) (19.2) Total Franchised Dealerships 1,497.4 1,407.2 90.2 6.4 1,886.9 (479.7) (25.4) AutoNation Finance income (loss) 9.8 (9.3) 19.1 (13.9) 4.6 Corporate and other (2) (456.1) (311.3) (144.8) (365.8) 54.5 Floorplan interest expense 188.8 218.9 30.1 144.7 (74.2) Operating income $ 1,239.9 $ 1,305.5 $ (65.6) (5.0) $ 1,651.9 $ (346.4) (21.0) Retail new vehicle unit sales: Domestic 74,680 69,268 5,412 7.8 67,471 1,797 2.7 Import 116,234 116,242 (8) — 108,068 8,174 7.6 Premium Luxury 68,350 69,205 (855) (1.2) 69,007 198 0.3 259,264 254,715 4,549 1.8 244,546 10,169 4.2 Retail used vehicle unit sales: Domestic 74,625 74,851 (226) (0.3) 84,552 (9,701) (11.5) Import 91,443 90,761 682 0.8 91,146 (385) (0.4) Premium Luxury 74,597 73,435 1,162 1.6 75,334 (1,899) (2.5) Other 28,893 26,861 2,032 7.6 22,987 3,874 16.9 269,558 265,908 3,650 1.4 274,019 (8,111) (3.0) (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.
Parts and service revenue and gross profit associated with warranty service benefited from improved parts and labor rates, an increase in repair order volume, and higher value repair orders. Customer-pay revenue and gross profit benefited from higher value repair orders.
Parts and service revenue and gross profit associated with customer-pay service also benefited from higher value repair orders and improved margin performance.
The increases in parts and service revenue and gross profit were partially offset by the CDK outage, which disrupted our sales and service processes, resulting in a decrease in repair order volume and parts sales. 39 Table of Contents Finance and Insurance Years Ended December 31, ($ in millions, except per vehicle data) 2024 vs. 2023 2023 vs. 2022 2024 2023 Variance Favorable / (Unfavorable) % Variance 2022 Variance Favorable / (Unfavorable) % Variance Reported: Revenue and gross profit $ 1,360.1 $ 1,418.8 $ (58.7) (4.1) $ 1,437.3 $ (18.5) (1.3) Gross profit per vehicle retailed $ 2,612 $ 2,736 $ (124) (4.5) $ 2,713 $ 23 0.8 Years Ended December 31, 2024 vs. 2023 2023 vs. 2022 2024 2023 Variance Favorable / (Unfavorable) % Variance 2023 2022 Variance Favorable / (Unfavorable) % Variance Same Store: Revenue and gross profit $ 1,326.9 $ 1,398.1 $ (71.2) (5.1) $ 1,385.5 $ 1,430.2 $ (44.7) (3.1) Gross profit per vehicle retailed $ 2,622 $ 2,743 $ (121) (4.4) $ 2,749 $ 2,714 $ 35 1.3 Revenue on finance and insurance products represents commissions earned by us 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.
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. 37 Table of Contents Finance and Insurance Years Ended December 31, ($ in millions, except per vehicle data) 2025 vs. 2024 2024 vs. 2023 2025 2024 Variance Favorable / (Unfavorable) % Variance 2023 Variance Favorable / (Unfavorable) % Variance Reported: Revenue and gross profit $ 1,464.4 $ 1,360.1 $ 104.3 7.7 $ 1,418.8 $ (58.7) (4.1) Gross profit per vehicle retailed $ 2,769 $ 2,612 $ 157 6.0 $ 2,736 $ (124) (4.5) Years Ended December 31, 2025 vs. 2024 2024 vs. 2023 2025 2024 Variance Favorable / (Unfavorable) % Variance 2024 2023 Variance Favorable / (Unfavorable) % Variance Same Store: Revenue and gross profit $ 1,439.9 $ 1,345.8 $ 94.1 7.0 $ 1,326.9 $ 1,398.1 $ (71.2) (5.1) Gross profit per vehicle retailed $ 2,769 $ 2,618 $ 151 5.8 $ 2,622 $ 2,743 $ (121) (4.4) Revenue on finance and insurance products represents commissions earned by us 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.
As a result of the quantitative tests, we determined the franchise rights for both stores were fully impaired, and we recorded non-cash franchise rights impairment charges of $12.5 million during the fourth quarter of 2024.
As a result of the quantitative tests, we determined the franchise rights carrying values for these stores exceeded their fair values, and we recorded non-cash franchise rights impairment charges of $22.0 million during the fourth quarter of 2025.
Years Ended December 31, 2024 vs. 2023 2023 vs. 2022 ($ in millions) 2024 2023 Variance Favorable / (Unfavorable) % Variance 2022 Variance Favorable / (Unfavorable) % Variance Reported: Compensation $ 2,107.8 $ 2,126.9 $ 19.1 0.9 $ 2,061.3 $ (65.6) (3.2) Advertising 255.5 243.5 (12.0) (4.9) 184.3 (59.2) (32.1) Store and corporate overhead 900.6 882.8 (17.8) (2.0) 780.5 (102.3) (13.1) Total $ 3,263.9 $ 3,253.2 $ (10.7) (0.3) $ 3,026.1 $ (227.1) (7.5) SG&A as a % of total gross profit: Compensation 44.0 41.4 (260) bps 39.1 (230) bps Advertising 5.4 4.8 (60) bps 3.6 (120) bps Store and corporate overhead 18.8 17.2 (160) bps 14.8 (240) bps Total 68.2 63.4 (480) bps 57.5 (590) bps 2024 compared to 2023 SG&A expenses slightly increased in 2024, as compared to 2023, primarily due to certain one-time compensation of approximately $43 million paid to commission-based associates to ensure business continuity as a result of the CDK outage, acquisitions and newly opened stores, an increase in transportation-related costs for parts and service customers, and an increase in advertising expenses to support vehicle sales.
Years Ended December 31, 2025 vs. 2024 2024 vs. 2023 ($ in millions) 2025 2024 Variance Favorable / (Unfavorable) % Variance 2023 Variance Favorable / (Unfavorable) % Variance Reported: Compensation $ 2,172.4 $ 2,107.8 $ (64.6) (3.1) $ 2,126.9 $ 19.1 0.9 Advertising 267.9 255.5 (12.4) (4.9) 243.5 (12.0) (4.9) Store and corporate overhead 921.9 900.6 (21.3) (2.4) 882.8 (17.8) (2.0) Total $ 3,362.2 $ 3,263.9 $ (98.3) (3.0) $ 3,253.2 $ (10.7) (0.3) SG&A as a % of total gross profit: Compensation 43.9 44.0 10 bps 41.4 (260) bps Advertising 5.5 5.4 (10) bps 4.8 (60) bps Store and corporate overhead 18.5 18.8 30 bps 17.2 (160) bps Total 67.9 68.2 30 bps 63.4 (480) bps 2025 compared to 2024 SG&A expenses increased in 2025, as compared to 2024, primarily due to an increase in compensation expense, an increase in advertising expenses to support vehicle sales, an increase in acquisition-related expenses of $11.5 million, and acquisitions and newly opened stores.
Our effective income tax rate was 24.5% in 2024 and 24.4% in 2023. Discontinued Operations Discontinued operations are related to stores that were sold or terminated prior to January 1, 2014.
Our effective income tax rate was 26.6% in 2025 and 24.5% in 2024. The tax rate for 2025 reflects that the goodwill impairment charge recorded in the second quarter of 2025 was not deductible for tax purposes. Discontinued Operations Results of discontinued operations reflected in 2023 are related to stores that were sold or terminated prior to January 1, 2014.
Additionally, an increase in our leverage ratio could negatively impact the interest rates charged for borrowings under our revolving credit facility. See Note 11 of the Notes to Consolidated Financial Statements for more information on our non-vehicle long-term debt, commercial paper, and non-recourse debt.
See Note 11 of the Notes to Consolidated Financial Statements for more information on our non-vehicle long-term debt, commercial paper, and non-recourse debt.
Domestic segment income was also adversely impacted by decreases in gross profit resulting from the CDK outage. 42 Table of Contents Import The Import segment operating results included the following: Years Ended December 31, 2024 vs. 2023 2023 vs. 2022 ($ in millions) 2024 2023 Variance Favorable / (Unfavorable) % Variance 2022 Variance Favorable / (Unfavorable) % Variance Revenue: New vehicle $ 4,320.0 $ 3,996.0 $ 324.0 8.1 $ 3,473.0 $ 523.0 15.1 Used vehicle 2,162.5 2,222.2 (59.7) (2.7) 2,652.7 (430.5) (16.2) Parts and service 1,194.7 1,150.1 44.6 3.9 1,050.9 99.2 9.4 Finance and insurance, net 470.9 490.1 (19.2) (3.9) 494.1 (4.0) (0.8) Other 8.8 22.5 (13.7) 19.6 2.9 Total Revenue $ 8,156.9 $ 7,880.9 $ 276.0 3.5 $ 7,690.3 $ 190.6 2.5 Segment income $ 476.6 $ 635.0 $ (158.4) (24.9) $ 734.2 $ (99.2) (13.5) Retail new vehicle unit sales 116,242 108,068 8,174 7.6 95,886 12,182 12.7 Retail used vehicle unit sales 90,761 91,146 (385) (0.4) 100,131 (8,985) (9.0) 2024 compared to 2023 Import revenue increased during 2024, as compared to 2023, primarily due to increases in new vehicle revenue and parts and service revenue, partially offset by a decrease in used vehicle revenue.
The increases in Domestic segment income were partially offset by a decrease in new vehicle gross profit driven by a decrease in new vehicle gross profit PVR of $552. 40 Table of Contents Import The Import segment operating results included the following: Years Ended December 31, 2025 vs. 2024 2024 vs. 2023 ($ in millions) 2025 2024 Variance Favorable / (Unfavorable) % Variance 2023 Variance Favorable / (Unfavorable) % Variance Revenue: New vehicle $ 4,418.1 $ 4,320.0 $ 98.1 2.3 $ 3,996.0 $ 324.0 8.1 Used vehicle 2,177.2 2,162.5 14.7 0.7 2,222.2 (59.7) (2.7) Parts and service 1,333.7 1,194.7 139.0 11.6 1,150.1 44.6 3.9 Finance and insurance, net 486.1 470.9 15.2 3.2 490.1 (19.2) (3.9) Other 8.2 8.8 (0.6) 22.5 (13.7) Total Revenue $ 8,423.3 $ 8,156.9 $ 266.4 3.3 $ 7,880.9 $ 276.0 3.5 Gross Profit: New vehicle $ 217.9 $ 253.8 $ (35.9) (14.1) $ 351.7 $ (97.9) (27.8) Used vehicle 138.2 132.6 5.6 4.2 148.9 (16.3) (10.9) Parts and service 656.1 585.2 70.9 12.1 558.2 27.0 4.8 Finance and insurance, net 486.1 470.9 15.2 3.2 490.1 (19.2) (3.9) Other (5.4) (4.9) (0.5) (1.8) (3.1) Total Gross Profit $ 1,492.9 $ 1,437.6 $ 55.3 3.8 $ 1,547.1 $ (109.5) (7.1) Segment income $ 490.1 $ 476.6 $ 13.5 2.8 $ 635.0 $ (158.4) (24.9) Retail new vehicle unit sales 116,234 116,242 (8) — 108,068 8,174 7.6 Retail used vehicle unit sales 91,443 90,761 682 0.8 91,146 (385) (0.4) 2025 compared to 2024 Import revenue increased during 2025, as compared to 2024, primarily due to increases in parts and service revenue associated with warranty service of $70.0 million and customer-pay service of $26.6 million.
Certain amounts have been reclassified from the previously reported financial statements to conform to the financial statement presentation of the current period. Overview AutoNation, Inc., through its subsidiaries, is one of the largest automotive retailers in the United States.
Certain reclassifications of amounts previously reported have been made to the accompanying Consolidated Financial Statements in order to maintain consistency and comparability between periods presented. Overview AutoNation, Inc., through its subsidiaries, is one of the largest automotive retailers in the United States.
Interest margin increased in 2023, as compared to 2022, as 2023 reflects a full calendar year of activity as compared to one quarter of activity in 2022, as well as the growth in managed receivables. 45 Table of Contents The following tables present selected loan origination and loan performance information: 2024 2023 2022 Loan Origination Information Loans originated $ 1,057.3 $ 336.0 $ 66.5 Vehicle units financed 31,492 13,148 3,278 Penetration rate (1) 6.0 % 2.5 % 0.6 % Weighted average contract rate 12.2 % 16.9 % 18.9 % Weighted average credit score (2) 678 623 595 Weighted average loan-to-value (3) 104.0 % 104.8 % 106.7 % Weighted average term (in months) 72.0 67.0 61.0 (1) Units financed as a percentage of total new and used vehicle retail units sold.
(2) Direct expenses are comprised primarily of compensation expenses and loan administration costs incurred by our auto finance company. 43 Table of Contents The following tables present selected loan origination and loan performance information: 2025 2024 2023 Loan Origination Information Loans originated $ 1,760.6 $ 1,057.3 $ 336.0 Vehicle units financed 50,892 31,492 13,148 Penetration rate (1) 9.6 % 6.0 % 2.5 % Weighted average contract rate 10.9 % 12.2 % 16.9 % Weighted average credit score (2) 696 678 623 Weighted average loan-to-value (3) 103.8 % 104.0 % 104.8 % Weighted average term (in months) 73.0 72.0 67.0 (1) Units financed as a percentage of total new and used vehicle retail units sold.
“Corporate and other” income (loss) also includes unallocated corporate overhead expenses and other income items. 41 Table of Contents Domestic The Domestic segment operating results included the following: Years Ended December 31, 2024 vs. 2023 2023 vs. 2022 ($ in millions) 2024 2023 Variance Favorable / (Unfavorable) % Variance 2022 Variance Favorable / (Unfavorable) % Variance Revenue: New vehicle $ 3,527.1 $ 3,525.0 $ 2.1 0.1 $ 3,409.1 $ 115.9 3.4 Used vehicle 2,057.5 2,428.4 (370.9) (15.3) 3,022.3 (593.9) (19.7) Parts and service 1,146.0 1,184.7 (38.7) (3.3) 1,092.7 92.0 8.4 Finance and insurance, net 402.5 432.0 (29.5) (6.8) 460.3 (28.3) (6.1) Other 7.2 3.1 4.1 3.1 — Total Revenue $ 7,140.3 $ 7,573.2 $ (432.9) (5.7) $ 7,987.5 $ (414.3) (5.2) Segment income $ 254.9 $ 415.4 $ (160.5) (38.6) $ 565.3 $ (149.9) (26.5) Retail new vehicle unit sales 69,268 67,471 1,797 2.7 66,375 1,096 1.7 Retail used vehicle unit sales 74,851 84,552 (9,701) (11.5) 97,642 (13,090) (13.4) 2024 compared to 2023 Domestic revenue decreased during 2024, as compared to 2023, primarily due to a decrease in used vehicle revenue and the divestitures we completed in the third quarter of 2024.
“Corporate and other” income (loss) also includes unallocated corporate overhead expenses and other income items. 39 Table of Contents Domestic The Domestic segment operating results included the following: Years Ended December 31, 2025 vs. 2024 2024 vs. 2023 ($ in millions) 2025 2024 Variance Favorable / (Unfavorable) % Variance 2023 Variance Favorable / (Unfavorable) % Variance Revenue: New vehicle $ 3,861.9 $ 3,527.1 $ 334.8 9.5 $ 3,525.0 $ 2.1 0.1 Used vehicle 2,023.8 2,057.5 (33.7) (1.6) 2,428.4 (370.9) (15.3) Parts and service 1,136.2 1,146.0 (9.8) (0.9) 1,184.7 (38.7) (3.3) Finance and insurance, net 450.1 402.5 47.6 11.8 432.0 (29.5) (6.8) Other 2.4 7.2 (4.8) 3.1 4.1 Total Revenue $ 7,474.4 $ 7,140.3 $ 334.1 4.7 $ 7,573.2 $ (432.9) (5.7) Gross Profit: New vehicle $ 107.5 $ 137.9 $ (30.4) (22.0) $ 223.4 $ (85.5) (38.3) Used vehicle 102.8 93.6 9.2 9.8 124.9 (31.3) (25.1) Parts and service 530.3 513.9 16.4 3.2 517.3 (3.4) (0.7) Finance and insurance, net 450.1 402.5 47.6 11.8 432.0 (29.5) (6.8) Other 1.8 1.6 0.2 1.6 — Total Gross Profit $ 1,192.5 $ 1,149.5 $ 43.0 3.7 $ 1,299.2 $ (149.7) (11.5) Segment income $ 322.2 $ 254.9 $ 67.3 26.4 $ 415.4 $ (160.5) (38.6) Retail new vehicle unit sales 74,680 69,268 5,412 7.8 67,471 1,797 2.7 Retail used vehicle unit sales 74,625 74,851 (226) (0.3) 84,552 (9,701) (11.5) 2025 compared to 2024 Domestic revenue increased during 2025, as compared to 2024, primarily due to an increase in new vehicle unit volume, which benefited from sustained consumer demand and better execution in our sales pipeline, partially offset by a $71.4 million decrease in new vehicle revenue from the divestitures we completed in 2025 and 2024.
Interest income on financing provided through AutoNation Finance is recognized over the contractual term of the related loans. See “AutoNation Finance” for additional information. The following discussion of finance and insurance results is on a same store basis.
Interest income on financing provided through AutoNation Finance is recognized over the contractual term of the related loans. See “AutoNation Finance” for additional information. 2025 compared to 2024 Same store finance and insurance revenue and gross profit increased during 2025, as compared to 2024, due to increases in finance and insurance revenue and gross profit PVR and vehicle unit volume.
Payments Due by Period (In millions) Total Less Than 1 Year (2025) 1 - 3 Years (2026 and 2027) 3 - 5 Years (2028 and 2029) More Than 5 Years (2030 and thereafter) Vehicle floorplan payable (Note 7) (1) $ 3,709.7 $ 3,709.7 $ — $ — $ — Non-vehicle long-term debt, including finance leases (Note 11) (1)(2) 3,150.0 519.0 330.0 433.2 1,867.8 Commercial paper (Note 11) (1) 630.0 630.0 — — — Interest payments (3) 584.2 115.2 181.2 147.9 139.9 Operating lease and other commitments (Note 10) (1)(4) 571.3 65.3 114.7 97.8 293.5 Deferred compensation obligations (Note 1) (1)(5) 139.5 7.9 — — 131.6 Estimated chargeback liability (Note 12) (1)(6) 209.3 117.2 77.7 13.8 0.6 Estimated self-insurance obligations (Note 13) (1)(7) 120.2 52.2 37.5 15.5 15.0 Purchase obligations and other commitments (8) 334.9 243.6 66.3 23.4 1.6 Total $ 9,449.1 $ 5,460.1 $ 807.4 $ 731.6 $ 2,450.0 (1) See Notes to Consolidated Financial Statements.
Payments Due by Period (In millions) Total Less Than 1 Year (2026) 1 - 3 Years (2027 and 2028) 3 - 5 Years (2029 and 2030) More Than 5 Years (2031 and thereafter) Vehicle floorplan payable (Note 7) (1) $ 3,828.3 $ 3,828.3 $ — $ — $ — Non-vehicle long-term debt, including finance leases (Note 11) (1)(2) 3,803.9 74.7 739.3 1,135.4 1,854.5 Commercial paper (Note 11) (1) 200.0 200.0 — — — Interest payments (3) 849.0 147.0 280.0 198.0 224.0 Operating lease and other commitments (Note 10) (1)(4) 690.8 65.6 129.7 114.6 380.9 Deferred compensation obligations (Note 1) (1)(5) 158.3 8.0 — — 150.3 Estimated chargeback liability (Note 12) (1)(6) 217.3 118.2 82.8 15.4 0.9 Estimated self-insurance obligations (Note 13) (1)(7) 123.6 60.1 37.0 14.8 11.7 Purchase obligations and other commitments (8) 232.2 173.7 54.4 4.1 — Total $ 10,103.4 $ 4,675.6 $ 1,323.2 $ 1,482.3 $ 2,622.3 (1) See Notes to Consolidated Financial Statements.
The increase in floorplan interest expense of $74.2 million in 2024, as compared to 2023, was primarily due to higher average vehicle floorplan balances. 47 Table of Contents Interest Expense Other interest expense includes the interest related to non-vehicle long-term debt, commercial paper, and finance lease obligations.
Floorplan interest expense was $188.8 million in 2025 and $218.9 million in 2024. The decrease in floorplan interest expense of $30.1 million in 2025, as compared to 2024, is primarily a result of lower average interest rates. Interest Expense Other interest expense includes the interest related to non-vehicle long-term debt, commercial paper, and finance lease obligations.
As of December 31, 2024, we have $223.4 million of goodwill related to the Domestic reporting unit, $524.3 million related to the Import reporting unit, $481.7 million related to the Premium Luxury reporting unit, $140.5 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 Centers reporting unit. 29 Table of Contents 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.
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.
Gains and losses related to the COLI are substantially offset by corresponding increases and decreases, respectively, in the deferred compensation obligations, which are reflected in SG&A expenses.
Gains and losses related to the COLI are substantially offset by corresponding increases and decreases, respectively, in the deferred compensation obligations, which are reflected in SG&A expenses. During 2025 and 2024, we recorded unrealized losses of $7.9 million and $7.0 million, respectively, related to the change in fair value of the underlying securities of our minority equity investments.
Our total gross profit decreased 7% during 2024, as compared to 2023, driven by decreases in new vehicle gross profit of 27%, used vehicle gross profit of 14%, and finance and insurance gross profit of 4%, partially offset by an increase in parts and service gross profit of 3%.
Our total gross profit increased 3% during 2025, as compared to 2024, driven by increases in parts and service gross profit of 7% and finance and insurance gross profit of 8%, partially offset by a decrease in new vehicle gross profit of 14%. Parts and service results benefited primarily from increases in gross profit from customer-pay service and warranty service.
In addition, same store unit volume was adversely impacted by the CDK outage, which resulted in a decrease in productivity from the disruption to our vehicle sales, inventory, and customer relationship management functions in the latter half of June 2024 and less than optimal levels and mix of used vehicle inventory at the start of the third quarter of 2024. 37 Table of Contents Same store used vehicle revenue PVR and gross profit PVR decreased during 2024, as compared to 2023, primarily due to a shift in mix towards lower-priced entry-level vehicles, which have relatively lower average selling prices and gross profit PVR. 38 Table of Contents Parts & Service Years Ended December 31, 2024 vs. 2023 2023 vs. 2022 ($ in millions) 2024 2023 Variance Favorable / (Unfavorable) % Variance 2022 Variance Favorable / (Unfavorable) % Variance Reported: Revenue $ 4,614.6 $ 4,533.7 $ 80.9 1.8 $ 4,100.6 $ 433.1 10.6 Gross profit $ 2,209.0 $ 2,139.3 $ 69.7 3.3 $ 1,900.3 $ 239.0 12.6 Gross profit as a percentage of revenue 47.9% 47.2% 46.3% Years Ended December 31, 2024 vs. 2023 2023 vs. 2022 2024 2023 Variance Favorable / (Unfavorable) % Variance 2023 2022 Variance Favorable / (Unfavorable) % Variance Same Store: Revenue $ 4,503.5 $ 4,393.0 $ 110.5 2.5 $ 4,431.8 $ 4,073.3 $ 358.5 8.8 Gross profit $ 2,163.3 $ 2,089.4 $ 73.9 3.5 $ 2,097.9 $ 1,882.4 $ 215.5 11.4 Gross profit as a percentage of revenue 48.0% 47.6% 47.3% 46.2% 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.
Same store gross profit PVR during 2025 was relatively flat as compared to 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. 36 Table of Contents Parts & Service Years Ended December 31, 2025 vs. 2024 2024 vs. 2023 ($ in millions) 2025 2024 Variance Favorable / (Unfavorable) % Variance 2023 Variance Favorable / (Unfavorable) % Variance Reported: Revenue $ 4,835.4 $ 4,614.6 $ 220.8 4.8 $ 4,533.7 $ 80.9 1.8 Gross profit $ 2,355.1 $ 2,209.0 $ 146.1 6.6 $ 2,139.3 $ 69.7 3.3 Gross profit as a percentage of revenue 48.7% 47.9% 47.2% Years Ended December 31, 2025 vs. 2024 2024 vs. 2023 2025 2024 Variance Favorable / (Unfavorable) % Variance 2024 2023 Variance Favorable / (Unfavorable) % Variance Same Store: Revenue $ 4,763.0 $ 4,493.3 $ 269.7 6.0 $ 4,503.5 $ 4,393.0 $ 110.5 2.5 Gross profit $ 2,320.9 $ 2,169.6 $ 151.3 7.0 $ 2,163.3 $ 2,089.4 $ 73.9 3.5 Gross profit as a percentage of revenue 48.7% 48.3% 48.0% 47.6% 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. 2025 compared to 2024 Same store parts and service revenue increased during 2025, as compared to 2024, primarily due to increases in revenue associated with customer-pay service of $111.4 million and warranty service of $86.6 million.
The decreases in finance and insurance gross profit PVR were partially offset by higher realized margins on certain vehicle protection products. 40 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.
In addition, finance and insurance gross profit in the prior year was adversely impacted by the CDK outage. 38 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.
SG&A expenses were impacted by certain one-time costs related to the CDK outage, principally consisting of compensation of approximately $43 million paid to commission-based associates to ensure business continuity. These costs were largely offset by a decrease in performance-driven compensation expense partly resulting from the CDK outage.
SG&A expenses increased primarily due to an increase in performance-driven compensation expense, which was partially offset by certain one-time compensation of approximately $43 million paid to commission-based associates in the prior year to ensure business continuity as a result of the CDK outage.
We divested seven Domestic stores and one Import store during 2024. We divested one Domestic store during 2023. We divested three Premium Luxury stores during 2022.
During 2023, we acquired a mobile automotive repair and maintenance business and purchased one Domestic store, five Import stores, and one Premium Luxury store. During 2025, we divested one Domestic store and one Import store. During 2024, we divested seven Domestic stores and one Import store. During 2023, we divested one Domestic store.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeOur exposure to changes in interest rates with respect to total vehicle floorplan payable is partially mitigated by manufacturers’ floorplan assistance, which in some cases is based on variable interest rates. We had $630.0 million of commercial paper notes outstanding at December 31, 2024, and $440.0 million at December 31, 2023.
Biggest changeOur exposure to changes in interest rates with respect to total vehicle floorplan payable is partially mitigated by manufacturers’ floorplan assistance. We had $200.0 million of commercial paper notes outstanding at December 31, 2025, and $630.0 million at December 31, 2024.
The selected 10% hypothetical change in equity prices is not intended to reflect a best or worst case scenario, as equity price changes could be smaller or larger due to the nature of equity markets. 57 Table of Contents
The selected 10% hypothetical change in equity prices is not intended to reflect a best or worst case scenario, as equity price changes could be smaller or larger due to the nature of equity markets. 55 Table of Contents
A hypothetical 10% change in the equity prices of these securities with readily determinable fair values would result in an approximate change to gain or loss of $2.0 million in 2024 and $2.3 million in 2023. We also have minority equity investments without a readily determinable fair value.
A hypothetical 10% change in the equity prices of these securities with readily determinable fair values would result in an approximate change to gain or loss of $1.3 million in 2025 and $2.0 million in 2024. We also have minority equity investments without a readily determinable fair value.
We had $3.7 billion of variable rate vehicle floorplan payable at December 31, 2024, and $3.4 billion at December 31, 2023. Based on these amounts, a 100 basis point change in interest rates would result in an approximate change to our annual floorplan interest expense of $37.1 million in 2024 and $33.8 million in 2023.
We had $3.8 billion of variable rate vehicle floorplan payable at December 31, 2025, and $3.7 billion at December 31, 2024. Based on these amounts, a 100 basis point change in interest rates would result in an approximate change to our annual floorplan interest expense of $38.3 million in 2025 and $37.1 million in 2024.
Our fixed rate senior unsecured notes totaled $2.8 billion and had a fair value of $2.6 billion as of December 31, 2024, and totaled $3.2 billion and had a fair value of $3.0 billion as of December 31, 2023. As of December 31, 2024, all auto loans receivable outstanding were fixed-rate installment contracts.
Our fixed rate senior unsecured notes totaled $3.4 billion and had a fair value of $3.4 billion as of December 31, 2025, and totaled $2.8 billion and had a fair value of $2.6 billion as of December 31, 2024. As of December 31, 2025, all auto loans receivable outstanding were fixed-rate installment contracts.
The carrying amount of our equity investments without a readily determinable fair value was $49.8 million at December 31, 2024 and $56.7 million at December 31, 2023. A hypothetical 10% observable price change for these equity investments would result in an approximate change to gain or loss of $5.0 million in 2024 and $5.7 million in 2023.
The carrying amount of our equity investments without a readily determinable fair value was $50.8 million at December 31, 2025 and $49.8 million at December 31, 2024. A hypothetical 10% observable price change for these equity investments would result in an approximate change to gain or loss of $5.1 million in 2025 and $5.0 million in 2024.
During the period that we hold these equity investments, unrealized gains and losses will be recorded as the fair market value of the securities change over time. The fair value of these equity investments was $20.0 million at December 31, 2024 and $22.8 million at December 31, 2023.
During the period that we hold these equity investments, unrealized gains and losses will be recorded as the fair market value of the securities changes over time. The fair value of these equity investments was $12.8 million at December 31, 2025 and $20.0 million at December 31, 2024.
Based on the amount outstanding, a 100 basis point change in interest rates would result in an approximate change to our annual interest expense of $6.3 million in 2024 and $4.4 million in 2023.
Based on the amounts outstanding, a 100 basis point change in interest rates would result in an approximate change to our annual interest expense of $2.0 million in 2025 and $6.3 million in 2024.

Other AN 10-K year-over-year comparisons