Lithia Motors has scaled revenue to roughly $38B annualized through acquisition-driven expansion, but momentum is visibly decelerating, with year-over-year revenue growth sliding from 19.5% in 2024Q4 to 2.8% in 2026Q3, suggesting diminishing incremental returns from the roll-up strategy.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth has decelerated sharply from 19.5% in 2024Q4 to 2.8% in 2026Q3 while SG&A has climbed ~15% over the period, compressing operating margins from 4.5% to 4.2% and leaving gross margin structurally pinned near 15% (excluding the anomalous -0.8% printed in 2026Q2).
Lithia Motors' roll-up strategy is highlighted as a key driver, enabling growth through acquisitions and market consolidation.
The company benefits from recurring revenue streams, providing stability and predictable cash flows.
Lithia Motors' strong market positioning is noted as a competitive advantage in the automotive retail sector.
Trailing total returns as of 11/8/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Oct 21, 2026 | $10.34+6.6% vs $9.70 | $9.9B+2.1% vs $9.7B |
Q3 2026 Jul 29, 2026 | $10.03+14.9% vs $8.73 | $9.8B+1.6% vs $9.6B |
Q2 2026 Apr 29, 2026 | $7.34+6.7% vs $6.88 | $9.3B+0.5% vs $9.2B |
Q1 2026 Feb 11, 2026 | $6.74-16.7% vs $8.09 | $9.2B+0.0% vs $9.2B |
LAD's weakening new-vehicle and F&I performance, rising operating expenses, elevated debt and intense competition threaten profitability and financial flexibility.
I track dividend announcements across 1,200+ stocks. This week, I'm highlighting 42 companies that increased their dividends. Part 1 covers 25 stocks, including two I own. Comfort Systems USA stands out with a 66.7% year-over-year dividend increase, 18.47% upside to fair value, and a Quality Score of 8.93. West Pharmaceutical Services posted the largest increase of the Part 1 stocks (18.18%) and perfect dividend safety, but trades 12.06% above my fair value estimate.
Lithia Motors is downgraded from 'buy' to 'hold' due to rising economic risks and elevated auto loan delinquencies. LAD's revenue growth is driven by acquisitions, but per-vehicle profitability is under pressure, especially in new vehicles. Net debt stands at $15.77 billion, making valuation less attractive despite low cash flow multiples; EV/EBITDA is 13.4x.
Lithia Motors, Inc. ( LAD ) Q3 2026 Earnings Call October 21, 2026 10:00 AM EDT Company Participants Jardon Jaramillo - Senior Director of Finance & Investor Relations Bryan DeBoer - CEO, President & Director Tina Miller - Senior VP & CFO Charles Lietz - Senior Vice President of Finance Conference Call Participants Michael Ward - Citigroup Inc., Research Division Ryan Sigdahl - Craig-Hallum Capital Group LLC, Research Division Rajat Gupta - JPMorgan Chase & Co, Research Division Jeffrey Lick - Stephens Inc., Research Division Alexander Perry - BofA Securities, Research Division John Saager - Evercore ISI Institutional Equities, Research Division John Babcock - Barclays Bank PLC, Research Division Bret Jordan - Jefferies LLC, Research Division Daniela Haigian - Morgan Stanley, Research Division Mark Jordan - Goldman Sachs Group, Inc., Research Division Robert Saltzman - UBS Investment Bank, Research Division Presentation Operator Greetings. Welcome to Lithia Motors & Driveway Third Quarter 2026 Results Conference Call.
Benchmark LAD against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Lithia Motors, Inc. (LAD)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $308.77 | $6.79B | 8.62 | 4% | 2.06% | 12.08% | 0.71% | |
| $184.00 | $6.16B | 8.49 | 3.24% | 2.63% | 31.76% | — | |
| $212.36 | $13.96B | 14.78 | -0.18% | 2.81% | 16.37% | 2.45% | |
| $61.71 | $2.05B | 9.64 | 6.53% | 1.33% | 19.94% | 2.28% | |
| $202.65 | $3.77B | 7.80 | 4.71% | 2.66% | 11.85% | — | |
| $261.35 | $3.12B | 8.20 | 13.23% | 1.74% | 13.03% | 0.77% |
Lithia Motors, Inc. (LAD) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Lithia Motors, Inc. (LAD) SEC filings — annual & quarterly reports (10-K, 10-Q)
Oct 21, 2026·SEC
Sep 25, 2026·SEC
Jul 29, 2026·SEC
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Lithia Motors, Inc. (LAD) stock FAQ — growth, dividends, profitability & financials explained
Lithia Motors, Inc. (LAD) reported $38.21B in revenue over the trailing twelve months. Revenue was $37.63B in fiscal year 2025. That is 26255% more than the $142.8M of fiscal year 1996.
Lithia Motors, Inc. (LAD) grew revenue by 1.6% over the trailing twelve months, compared with the twelve months before.
Yes. Lithia Motors, Inc. (LAD) earned $788.4M in net income over the trailing twelve months (a 2.1% net margin).
Yes. Lithia Motors, Inc. (LAD) pays a dividend that yields 0.71% at the current price, a small yield.
Lithia Motors, Inc. (LAD) had a return on equity (ROE) of 12.1% over the trailing twelve months. That is in line with the market's typical 10-15%.
Lithia Motors, Inc. (LAD) had negative free cash flow of $426.7M over the trailing twelve months.
