Lithia Motors Inc
lithia.comWhat Do They Do?
Sells new and used vehicles, financing and insurance products, and repair and maintenance services to consumers through dealerships and online platforms.
10-K for FY2025, filed Feb 25, 2026
How Do They Make Money?
Customers buy vehicles in one-time sales; Lithia earns financing and insurance commissions when the related vehicle sells. It earns money from parts and service as they are delivered, while aftersales service contracts generate revenue as services are provided.
10-K for FY2025, filed Feb 25, 2026Revenue from the sale of a vehicle is recognized at a point in time, as all performance obligations are satisfied when a contract is signed…View ↗
Revenue from F&I sales is recognized, net of estimated charge-backs, at the time of the sale of the related vehicle. As a part of the…View ↗
Revenue from aftersales is recognized upon the transfer of control of the parts or service to the customer. We allow for customer returns…View ↗
We have contract liabilities related to various products and services sold to our customers. Revenue is allocated to these performance…View ↗
The amount of revenue recognized related to aftersales contract liabilities is calculated, net of cancellations, using an input method…View ↗
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10-K for FY2025, filed Feb 25, 2026
FY2025 revenue by product or service ↗
$37.6B
-
10-K for FY2025, filed Feb 25, 2026
$37.6B ↗
| Segment | Share | Revenue | How money arrives |
|---|---|---|---|
|
New vehicle
Sold outright
10-K for FY2025, filed Feb 25, 2026 |
50% |
New vehicle, FY2025
$18.7B Sources
|
Sold outright |
|
Used vehicles
Sold outright
10-K for FY2025, filed Feb 25, 2026 |
36% |
Used vehicles, FY2025
$13.4B Sources
|
Sold outright |
|
Finance and insurance
Sold outright
|
3.9%
FY2022: 4.6%
|
Finance and insurance, FY2025
$1.5B Sources
|
Sold outright |
|
Aftersales
Sold outright
10-K for FY2025, filed Feb 25, 2026 |
11%
FY2022: 9.7%
|
Aftersales, FY2025
$4.1B Sources
|
Sold outright |
Who Are Their Customers?
Consumers shop through Lithia's dealerships and its own websites, where they can search for and buy or sell vehicles, arrange financing, and schedule service.
10-K for FY2025, filed Feb 25, 2026Most consumers begin their shopping, buying, or selling activity on our store websites, Driveway.com, and GreenCars.com. Our proprietary…View ↗
These online channels provide customers with simple, transparent ways to search new and used inventories, view current pricing, apply…View ↗
Driveway.com, our online experience, puts customers in control of every aspect of their car ownership. They can browse a vast nationwide…View ↗
Do Revenues Turn Into Profits?
Yes. It kept 2 cents of every revenue dollar as net income in FY2025.
10-K for FY2025, filed Feb 25, 2026
$1.6BView ↗
10-K for FY2025, filed Feb 25, 2026
$819.6MView ↗
10-K for FY2025, filed Feb 25, 2026
$5.8MView ↗
How Are They Changing?
10-Q for Q2 FY2026, filed Jul 29, 2026
Open tableView ↗
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Jul 29, 2026
Acquired 5 stores and divested 3
The acquired stores are expected to generate $340 million in annualized revenue; divested stores represented $120 million.
Sources
8-K, filed Jul 29, 2026
In the second quarter of 2026, LAD acquired 5 stores, which are expected to generate $340 million in annualized revenues, and divested 3…View ↗
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Apr 29, 2026
Acquired stores expected to generate $425 million in annualized revenue
Sources
8-K, filed Apr 29, 2026
Stores acquired during the first quarter are expected to generate $425 million in annualized revenues.View ↗
Growing. Revenue grew 65% in 4 years, from $22.8B in FY2021 to $37.6B in FY2025, about 13% a year.
Who Do They Compete With?
Competes with CarMax, Carvana, and Cazoo
10-K for FY2025, filed Feb 25, 2026The retail automotive business is highly competitive. Currently, there are nearly 17,000 new vehicle franchise dealers in the United…View ↗
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