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LAD

Lithia Motors, Inc.

LAD

Lithia Motors, Inc. • NYSE
$318.84 ▲ 0.08% (+0.25)
Market Cap $8.27 B
52w High $405.14
52w Low $262.10
Dividend Yield 2.18%
P/E 9.22
Volume 93.85K
Outstanding Shares 25.95M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $9.676B ▲ $998.5M ▼ $217.1M ▼ 2.244% ▼ $-17.7 ▼ $473.8M ▼
Q2-2025 $9.583B ▲ $1.06B ▲ $256.1M ▲ 2.672% ▲ $9.89 ▲ $577.8M ▲
Q1-2025 $9.178B ▲ $1.004B ▲ $209.5M ▼ 2.283% ▼ $7.96 ▼ $572.2M ▼
Q4-2024 $9.174B ▼ $955.2M ▼ $216.2M ▲ 2.357% ▲ $8.19 ▲ $629.1M ▲
Q3-2024 $9.221B $1.006B $209.1M 2.268% $7.83 $559M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $419.5M ▲ $24.519B ▲ $17.726B ▲ $6.769B ▼
Q2-2025 $406.6M ▼ $24.161B ▲ $17.15B ▲ $6.987B ▲
Q1-2025 $430.3M ▲ $23.48B ▲ $16.698B ▲ $6.758B ▲
Q4-2024 $402.2M ▲ $23.128B ▼ $16.448B ▼ $6.655B ▲
Q3-2024 $359.5M $23.262B $16.633B $6.605B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $217.1M ▼ $79M ▲ $-163.9M ▲ $100.6M ▼ $12.7M ▲ $-29.9M ▲
Q2-2025 $258.2M ▲ $9.3M ▼ $-198.4M ▼ $159.5M ▲ $-25.9M ▼ $-70.8M ▼
Q1-2025 $211.2M ▼ $322.1M ▲ $-117.1M ▼ $-173M ▼ $28.1M ▼ $253.4M ▲
Q4-2024 $217.2M ▼ $61.8M ▼ $-33.6M ▲ $27.4M ▲ $42.7M ▲ $-17.7M ▼
Q3-2024 $222.9M $219.3M $-305.7M $-237.4M $-315.3M $157.1M

Revenue by Products

Product Q3-2024Q4-2024Q1-2025Q2-2025
Finance and Insurance
Finance and Insurance
 $360.00M ▲$360.00M ▲$360.00M ▲$370.00M ▲
Fleet and Other
Fleet and Other
 $180.00M ▲$210.00M ▲$200.00M ▼$210.00M ▲
New Vehicle Retail
New Vehicle Retail
 $4.43Bn ▲$4.71Bn ▲$4.38Bn ▼$4.50Bn ▲
Used Retail Vehicle
Used Retail Vehicle
 $2.84Bn ▲$2.64Bn ▼$2.92Bn ▲$3.09Bn ▲
Used Wholesale Vehicle
Used Wholesale Vehicle
 $390.00M ▲$340.00M ▼$330.00M ▼$380.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has grown very rapidly over the past five years, more than doubling as the company has expanded its dealership footprint and pushed hard into digital channels. Gross profit has kept pace reasonably well, showing that the company can still make solid money on each car and service, though profit per unit looks past its peak. Operating profit and net income climbed strongly through the pandemic recovery and acquisition wave, then stepped down from those peak levels in the last couple of years. That pattern suggests margin pressure from higher costs, more competitive pricing, and integration of newly acquired stores. Earnings per share tell a similar story: exceptionally strong during the boom years, then normalizing as conditions became tougher. Overall, the business remains clearly profitable, but the easy, high-margin phase looks behind it, and the emphasis now appears to be on sustaining profitability at scale rather than expanding margins further.

Balance Sheet

Balance Sheet The balance sheet has grown dramatically, reflecting years of acquisitions and network expansion. Total assets have swelled as the company has added dealerships, inventory, and international operations. Equity has steadily increased as profits have been retained, which is a positive sign of value build-up over time. However, debt has risen even faster than equity, and leverage is now quite elevated. Cash on hand is relatively modest compared with both the size of the business and the debt load, implying a reliance on ongoing cash generation and credit access to stay comfortable. In simple terms, this is a scale-driven, asset-heavy balance sheet with meaningful financial leverage: powerful in good times, but demanding disciplined risk management if industry conditions soften.

Cash Flow

Cash Flow Cash flow is more mixed than the income statement might suggest. Operating cash flow has been volatile, with strong inflows in earlier years but weaker or even negative figures during periods of heavy growth and inventory build. Free cash flow has therefore been inconsistent, occasionally healthy but often thin once capital spending is included. Capital expenditures themselves are not extreme relative to the size of the company, but when combined with acquisitions, inventory needs, and working capital swings, they absorb a lot of cash. The picture is of a business that can generate substantial cash in stable conditions but also consumes cash when it leans into growth. That makes timing and execution of expansion especially important given the high debt levels.

Competitive Edge

Competitive Edge Lithia Motors holds one of the strongest positions in the fragmented auto retail industry. Its large and growing dealership network, combined with a fully integrated online platform, gives it reach and convenience that many regional groups cannot match. The omnichannel approach—letting customers move seamlessly between online browsing, digital financing, and in-store service—creates a customer experience that is difficult for both pure online players and smaller local dealers to replicate. Scale brings purchasing advantages, marketing efficiency, and better use of data, while franchise laws help protect incumbents from direct competition by manufacturers. At the same time, the company still operates in a highly cyclical, competitive sector that is sensitive to interest rates, consumer confidence, and used-vehicle pricing. Its edge is meaningful, but it must be actively defended through continual operational improvement and integration of acquisitions.

Innovation and R&D

Innovation and R&D Although this is not a classic research-and-development company, it has invested heavily in digital tools and technology-driven processes. The Driveway e-commerce platform is a centerpiece, enabling nearly the entire car-buying journey online, supported by AI-powered financing tools that tailor payment options to each shopper. The GreenCars platform positions the company to educate and capture customers in the growing electric and hybrid segment. Managing customer data in-house, rather than outsourcing it, gives Lithia deeper insight into buying behavior and helps refine marketing and service offers over time. The in-house financing arm further integrates the experience and adds another profit stream. International tech partnerships, especially tied to its new UK presence, suggest an intention to keep evolving its dealer software and digital capabilities. The main risk is execution: sustaining this level of innovation, integrating systems across a global footprint, and keeping up with both tech-native competitors and shifting EV dynamics requires ongoing investment and focus.

Summary

Lithia Motors today is a large, aggressively grown auto retailer with a clear digital and omnichannel strategy. Revenue and overall scale have climbed steeply, backed by acquisitions and technology, while profits remain solid but have come off their earlier highs as margins compress. The balance sheet shows meaningful value build-up in equity but is also increasingly stretched by substantial debt and limited cash, which raises the importance of steady cash generation and disciplined capital allocation. Cash flows themselves have been choppy as the company has funded growth, inventory, and expansion, underscoring the operational intensity of its model. Competitively, Lithia stands out for its size, geographic reach, integrated online platform, and data-driven approach, all reinforced by industry structures that favor large incumbents. Its innovation efforts—in e-commerce, financing, data, and EV-focused tools—provide avenues for further differentiation but demand sustained execution. Overall, this is a scaled, cyclical, innovation-minded operator whose future path will hinge on how well it balances growth, leverage, and profitability through the next phase of the auto cycle and the industry’s shift toward electrification and digital retailing.

NEWS

November 12, 2025 · 9:00 AM UTC

MD Johnson Inc. Advises Geoff Emery on the Sale of Porsche of Beverly Hills and Santa Monica Audi to Lithia & Driveway (LAD)

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November 11, 2025 · 5:30 AM UTC

Lithia & Driveway (LAD) Continues Strategic Luxury Network Expansion and is Named to TIME America's Growth Leaders List

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October 28, 2025 · 5:30 AM UTC

Lithia & Driveway (LAD) Expands Retail Network in Southwest Region and Earns 2025 Best Dealerships to Work for in Canada Recognition

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October 22, 2025 · 5:30 AM UTC

Lithia & Driveway (LAD) Reports Record Third Quarter Revenue of $9.7 billion, Achieves 11% Increase in Diluted Earnings Per Share, 17% Increase in Adjusted Diluted Earnings Per Share

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October 16, 2025 · 5:30 AM UTC

20 Lithia & Driveway (LAD) U.S. Dealerships Named Best To Work For in 2025

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