LAD earnings analysis
What we found in LAD's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Lithia Motors (LAD) reported Q1 2026 results with revenues of $9.27 billion and EPS of $7.34, both exceeding market expectations. Notable growth in used vehicle sales and aftersales drove the revenue increase compared to the prior year, despite a decline in new vehicle gross profit margin and net income.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Q1 Revenue Exceeds Expectations
- Q1 2026 revenue reached $9.27 billion, beating estimates of $9.25 billion.
- Strong EPS Performance
- Reported EPS was $7.34, surpassing expectations of $6.90.
- 7.3% Growth in Used Vehicle Sales
- Used vehicle revenue increased by 7.3% to $3.49 billion compared to Q1 2025.
- Aftersales Revenue Increases
- Aftersales revenue grew 6.1% to $1.04 billion, supported by increased customer pay transactions.
- Solid Free Cash Flow
- Free cash flow for the quarter stood at $297 million, indicating healthy cash generation.
- Robust Liquidity Position
- Total liquidity as of March 31, 2026, was approximately $1.4 billion, including $160.8 million in cash.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Decline in New Vehicle Revenue
- New vehicle revenue decreased by 4.4% to $4.38 billion compared to Q1 2025.
- Increased SG&A Expenses
- SG&A expenses increased as a percentage of gross profit, impacting net income.
- EPS Decline Compared to Prior Year
- EPS dropped compared to the prior year, revealing underlying profitability challenges.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $7.34
- Gross margin
- 15.3%
- Segment
- New vehicle
- Segment
- Used vehicle
- Segment
- Finance and insurance
- Segment
- Aftersales
What they said about what is next.
No explicit numerical guidance provided; outlook remains focused on strategic growth through acquisitions and market conditions.
The filing reads better than the one before it.
What came before.
- 10-K · February 25, 2026
- Lithia (Lithia & Driveway) emphasizes an omnichannel, acquisition-driven growth strategy centered on its 455-store network, Driveway/GreenCars e-commerce platforms, and captive finance (DFC). The 2025 10-K highlights…
- 10-Q · July 30, 2025
- Lithia reported Q2 2025 results that beat consensus: revenue of $9,583.0 million and diluted EPS of $9.87. Gross margin and operating margin were essentially stable (15.5% and ~4.4%), operating profit increased to…
- 10-Q · April 24, 2025
- Lithia reported Q1 revenue of $9,178.3 million, up 7.2% year-over-year, with gross margin modestly compressing to ~15.4% while operating margin expanded to ~4.4%. Diluted EPS rose to $7.94 (vs $5.89YE-2024 Q1),…
- 10-K · February 24, 2025
- Lithia and Driveway (LAD) emphasizes an omnichannel strategy built on scale (459 locations, 52 brands as of December 31, 2024) and acquisition-driven growth (146 stores acquired in 2024). The company deploys a formal…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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