v3.26.1
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
As of June 30, 2026, the Company had two reportable segments: (1) Dealerships and (2) TCA. Our dealership operations are organized by management into geographic region-based groups within the Dealerships segment. The operations of our F&I product provider are reflected within our TCA segment.
TCA's vehicle protection products are sold through affiliated dealerships and the revenue from the related commissions is included in finance and insurance, net revenue in the Dealerships segment before consolidation. The corresponding claims expense incurred and the amortization of deferred acquisition costs is recorded as a cost of sales in the TCA segment. The Dealerships segment also provides vehicle repair and maintenance services to TCA customers in connection with claims related to TCA's vehicle protection products. The gross profit earned by our parts and service departments for work performed for TCA customers is reflected as a reduction of parts and service cost of sales in the accompanying condensed consolidated statements of income. The costs incurred by TCA for work performed by our parts and service departments are included in finance and insurance cost of sales in the accompanying condensed consolidated statements of income.
The significant expense categories and amounts are consistent with the segment-level information that is regularly provided to the chief operating decision maker. Certain intersegment expenses are included within the amounts shown. Rent and related expenses include rent expense, utilities, property and casualty insurance, real estate tax and personal property tax. Other segment items for the TCA segment relate to selling, general and administrative expenses.
Reportable segment financial information for the three and six months ended June 30, 2026 and 2025, are as follows:

For the Three Months Ended June 30, 2026For the Three Months Ended June 30, 2025
DealershipsTCATotalDealershipsTCATotal
(In millions)(In millions)
Revenue from external customers$4,302.4 $82.2 $4,384.6 $4,293.6 $79.5 $4,373.1 
Intersegment revenue
Finance and insurance63.4 — 63.4 63.9 — 63.9 
Parts and service8.4 — 8.4 10.2 — 10.2 
Total intersegment revenue71.8 — 71.8 74.1 — 74.1 
$4,374.2 $82.2 $4,456.4 $4,367.8 $79.5 $4,447.3 
Reconciliation of revenue
Elimination of intersegment revenue(71.8)(74.1)
Total consolidated revenue$4,384.6 $4,373.1 
Less:
Cost of sales
New vehicle2,192.0 — 2,143.9 — 
Used vehicle1,166.6 — 1,216.8 — 
Parts and service268.8 — 256.9 — 
Finance and insurance— 59.2 — 59.3 
Selling, general and administrative expenses
Personnel costs315.7 — 318.8 — 
Rent and related expenses41.0 — 28.6 — 
Advertising16.2 — 17.1 — 
Other selling, general and administrative expense132.2 — 116.5 — 
Other segment items— 1.8 — 1.7 
Depreciation and amortization23.0 — 19.0 0.1 
Floor plan interest expense21.6 — 18.1 — 
Segment operating income$196.9 $21.1 $218.1 $232.1 $18.5 $250.6 
Reconciliation of segment operating income
Intersegment eliminations
Total intersegment revenue eliminations(71.8)(74.1)
Total intersegment cost of sales eliminations55.2 55.6 
Deferral of SG&A expense (related to capitalized contract costs offset by amortization)0.6 7.2 
Total intersegment eliminations(16.0)(11.3)
Asset impairments(4.2)— 
Other interest expense, net(46.5)(41.4)
Gain on dealership divestitures, net— 5.9 
Income before income taxes$151.3 $203.8 
For the Six Months Ended June 30, 2026For the Six Months Ended June 30, 2025
DealershipsTCATotalDealershipsTCATotal
(In millions)(In millions)
Revenue from external customers$8,334.2 $163.4 $8,497.6 $8,358.0 $163.6 $8,521.6 
Intersegment revenue
Finance and insurance119.4 — 119.4 117.0 — 117.0 
Parts and service16.5 — 16.5 19.5 — 19.5 
Total intersegment revenue136.0 — 136.0 136.5 — 136.5 
$8,470.1 $163.4 $8,633.6 $8,494.5 $163.6 $8,658.1 
Reconciliation of revenue
Elimination of intersegment revenue(136.0)(136.5)
Total consolidated revenue$8,497.6 $8,521.6 
Less:
Cost of sales
New vehicle4,164.3 — 4,138.9 — 
Used vehicle2,306.7 — 2,388.1 — 
Parts and service538.6 — 511.2 — 
Finance and insurance— 117.3 — 120.3 
Selling, general and administrative expenses
Personnel costs633.9 — 627.8 — 
Rent and related expenses83.5 — 49.8 — 
Advertising34.2 — 32.3 — 
Other selling, general and administrative expense265.5 — 229.0 — 
Other segment items— 3.7 — 3.6 
Depreciation and amortization45.6 — 38.1 0.1 
Floor plan interest expense42.7 — 38.8 — 
Segment operating income$355.1 $42.4 $397.5 $440.5 $39.6 $480.1 
Reconciliation of segment operating income
Intersegment eliminations
Total intersegment revenue eliminations(136.0)(136.5)
Total intersegment cost of sales eliminations109.3 112.9 
Deferral of SG&A expense (related to capitalized contract costs offset by amortization)4.1 10.7 
Total intersegment eliminations(22.6)(12.9)
Asset impairments(4.2)(14.3)
Other interest expense, net(94.6)(83.7)
Gain on dealership divestitures, net125.8 10.1 
Income before income taxes$401.9 $379.2 





Total assets by segment as of June 30, 2026 and December 31, 2025 are as follows:

As of June 30, 2026
Dealerships TCATotal Reportable SegmentsEliminationsTotal Company
(In millions)
Total assets$10,136.6 $1,072.0 $11,208.5 $203.0 $11,411.5 

As of December 31, 2025
DealershipsTCATotal Reportable SegmentsEliminationsTotal Company
(In millions)
Total assets$10,389.5 $1,024.3 $11,413.8 $204.4 $11,618.2