Revenue growth has decelerated sharply from 22.8% in 2024Q1 to 1.0% in 2026Q1, while operating margins have contracted to 3.1% over the same period.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 37.73B | 37.63B | 36.19B | 31.04B | 28.19B | 22.83B | 13.13B | 12.67B | 11.82B | 10.09B | 8.68B | 7.86B | 5.39B | 4.01B | 3.32B | 2.63B | 2.04B | 1.78B | 2.06B | 2.82B | 2.47B | 2.72B | 2.6B | 2.46B | 2.27B | 1.87B | 1.66B | 1.24B | 714.7M | 319.8M | 142.8M |
| Revenue Growth % | 2.51% | 4% | 16.58% | 10.13% | 23.46% | 73.94% | 3.58% | 7.2% | 17.2% | 16.23% | 10.35% | 45.9% | 34.56% | 20.78% | 25.97% | 29.27% | 14.33% | -13.65% | -26.95% | 14.17% | -9.11% | 4.75% | 5.51% | 8.42% | 21.26% | 12.94% | 33.47% | 73.88% | 123.48% | 123.95% | 25.04% |
| Cost of Goods Sold | 31.98B | 31.9B | 30.63B | 25.81B | 23.04B | 18.57B | 10.9B | 10.72B | 10.04B | 8.57B | 7.38B | 6.69B | 4.57B | 3.37B | 2.78B | 2.19B | 1.67B | 1.44B | 1.71B | 2.18B | 2.05B | 2.25B | 2.16B | 2.07B | 1.91B | 1.57B | 1.39B | 1.04B | 599.4M | 265.1M | 116.8M |
| COGS % of Revenue | - | 84.77% | 84.63% | 83.16% | 81.72% | 81.35% | 83.05% | 84.58% | 84.97% | 84.97% | 85% | 85.05% | 84.73% | 84.25% | 83.74% | 83.09% | 82.18% | 81.01% | 82.72% | 77.1% | 82.79% | 82.5% | 83.27% | 83.96% | 84.25% | 83.64% | 83.87% | 83.96% | 83.87% | 82.9% | 81.79% |
| Gross Profit | 5.74B | 5.73B | 5.56B | 5.23B | 5.15B | 4.26B | 2.22B | 1.95B | 1.78B | 1.52B | 1.3B | 1.18B | 823.32M | 630.95M | 539.3M | 445.28M | 362.95M | 338.26M | 356.48M | 646.79M | 425.76M | 476.3M | 434.7M | 394.99M | 357.69M | 306.48M | 267.57M | 199.3M | 115.3M | 54.7M | 26M |
| Gross Margin % | 15.23% | 15.23% | 15.37% | 16.84% | 18.28% | 18.65% | 16.95% | 15.42% | 15.03% | 15.03% | 14.99% | 14.95% | 15.27% | 15.75% | 16.26% | 16.91% | 17.82% | 18.99% | 17.28% | 22.9% | 17.21% | 17.5% | 16.73% | 16.04% | 15.75% | 16.36% | 16.13% | 16.04% | 16.13% | 17.1% | 18.21% |
| Gross Profit Growth % | - | 3.09% | 6.35% | 1.48% | 20.98% | 91.48% | 13.84% | 9.95% | 17.21% | 16.51% | 10.69% | 42.79% | 30.49% | 16.99% | 21.11% | 22.69% | 7.3% | -5.11% | -44.89% | 51.91% | -10.61% | 9.57% | 10.05% | 10.43% | 16.71% | 14.54% | 34.25% | 72.85% | 110.79% | 110.38% | 13.04% |
| Operating Expenses | 4.33B | 4.3B | 3.99B | 3.54B | 3.21B | 2.6B | 1.53B | 1.47B | 1.34B | 1.11B | 954.3M | 852.77M | 589.57M | 447.44M | 390.82M | 333.09M | 301.18M | 294.28M | 324.26M | 366.14M | 333.24M | 359.2M | 338.66M | 316.82M | 287.5M | 248.32M | 203.1M | 152M | 88.7M | 43.1M | 22.1M |
| OpEx % of Revenue | - | 11.44% | 11.01% | 11.39% | 11.39% | 11.37% | 11.67% | 11.57% | 11.37% | 11.03% | 11% | 10.84% | 10.94% | 11.17% | 11.78% | 12.65% | 14.79% | 16.52% | 15.72% | 12.96% | 13.47% | 13.2% | 13.03% | 12.87% | 12.66% | 13.26% | 12.25% | 12.23% | 12.41% | 13.48% | 15.48% |
| Selling, General & Admin | 4B | 3.94B | 3.76B | 3.29B | 3.04B | 2.48B | 1.46B | 1.38B | 1.27B | 1.05B | 905M | 811.17M | 563.21M | 427.4M | 373.69M | 316.66M | 284.16M | 276.02M | 307.32M | 349.28M | 319.85M | 345.77M | 326.17M | 307.34M | 280.31M | 239.04M | 195.5M | 146.4M | 85.2M | 40.6M | 20.3M |
| SG&A % of Revenue | - | 10.48% | 10.38% | 10.61% | 10.8% | 10.88% | 11.09% | 10.92% | 10.73% | 10.46% | 10.43% | 10.31% | 10.45% | 10.67% | 11.27% | 12.03% | 13.95% | 15.49% | 14.9% | 12.37% | 12.93% | 12.7% | 12.55% | 12.48% | 12.34% | 12.76% | 11.79% | 11.78% | 11.92% | 12.7% | 14.22% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 359.7M | 230.2M | 241.7M | 167.2M | 113.4M | 75.5M | 82.4M | 75.4M | 57.7M | 49.3M | 41.6M | 26.36M | 20.04M | 17.13M | 16.43M | 17.01M | 18.26M | 16.94M | 16.86M | 13.38M | 13.43M | 12.49M | 9.47M | 7.19M | 9.28M | 7.61M | 5.6M | 3.5M | 2.5M | 1.8M |
| Operating Income | 1.41B | 1.43B | 1.58B | 1.69B | 1.94B | 1.66B | 692.7M | 495M | 447M | 409M | 338.4M | 302.74M | 231.9M | 183.52M | 148.37M | 110.82M | 46.47M | 35.71M | -303.46M | 80.64M | 92.53M | 117.1M | 96.04M | 78.17M | 70.19M | 58.16M | 64.46M | 47.3M | 26.6M | 11.6M | 3.9M |
| Operating Margin % | 3.75% | 3.8% | 4.35% | 5.45% | 6.89% | 7.28% | 5.28% | 3.91% | 3.78% | 4.05% | 3.9% | 3.85% | 4.3% | 4.58% | 4.47% | 4.21% | 2.28% | 2% | -14.71% | 2.86% | 3.74% | 4.3% | 3.7% | 3.17% | 3.09% | 3.1% | 3.89% | 3.81% | 3.72% | 3.63% | 2.73% |
| Operating Income Growth % | - | -9.33% | -6.9% | -12.81% | 16.76% | 140% | 39.94% | 10.74% | 9.29% | 20.86% | 11.78% | 30.55% | 26.36% | 23.69% | 33.89% | 138.47% | 30.12% | 111.77% | -476.29% | -12.84% | -20.98% | 21.92% | 22.86% | 11.37% | 20.69% | -9.78% | 36.29% | 77.82% | 129.31% | 197.44% | -11.36% |
| EBITDA | 1.84B | 1.84B | 1.97B | 1.96B | 2.17B | 1.83B | 814M | 609M | 522.4M | 466.7M | 387.7M | 344.33M | 258.26M | 203.55M | 165.68M | 127.77M | 64.06M | 54.53M | -282.74M | 97.51M | 105.91M | 131.6M | 109.19M | 88.47M | 78M | 67.43M | 72.07M | 52.9M | 30.1M | 14.1M | 5.7M |
| EBITDA Margin % | 4.88% | 4.9% | 5.43% | 6.3% | 7.7% | 8.01% | 6.2% | 4.81% | 4.42% | 4.63% | 4.47% | 4.38% | 4.79% | 5.08% | 5% | 4.85% | 3.15% | 3.06% | -13.71% | 3.45% | 4.28% | 4.84% | 4.2% | 3.59% | 3.43% | 3.6% | 4.35% | 4.26% | 4.21% | 4.41% | 3.99% |
| EBITDA Growth % | -9.47% | -6.2% | 0.43% | -9.78% | 18.61% | 124.67% | 33.66% | 16.58% | 11.93% | 20.38% | 12.59% | 33.33% | 26.88% | 22.86% | 29.68% | 99.46% | 17.46% | 119.29% | -389.97% | -7.94% | -19.52% | 20.53% | 23.42% | 13.41% | 15.67% | -6.43% | 36.24% | 75.75% | 113.48% | 147.37% | -9.52% |
| D&A (Non-Cash Add-back) | 425.3M | 414.9M | 389.8M | 264.6M | 228.1M | 166.3M | 121.3M | 114M | 75.4M | 57.7M | 49.3M | 41.6M | 26.36M | 20.04M | 17.31M | 16.95M | 17.59M | 18.82M | 20.72M | 16.86M | 13.38M | 14.5M | 13.14M | 10.29M | 7.81M | 9.28M | 7.61M | 5.6M | 3.5M | 2.5M | 1.8M |
| EBIT | 1.69B | 1.89B | 1.87B | 1.89B | 1.96B | 1.61B | 754.5M | 508.8M | 455.8M | 421.2M | 332.3M | 301.73M | 235.1M | 186.51M | 150.89M | 111.51M | 46.89M | 37.21M | -296.83M | 280.64M | 92.53M | 117.1M | 96.04M | 78.17M | 70.19M | 58.16M | 64.46M | 47.3M | 26.6M | 11.6M | 3.9M |
| Net Interest Income | -305.4M | -280.3M | -536.6M | -352.1M | -167.9M | -114.7M | -99.5M | -133.4M | -118.3M | -74.1M | -48.8M | -39.02M | -24.6M | -20.72M | -22.44M | -23.24M | -24.68M | -25.13M | -38.4M | -50.82M | -50.09M | -29.47M | -25.12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 416.1M | 499M | 0 | 0 | 0 | 11M | 6.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 721.5M | 779.3M | 536.6M | 352.1M | 167.9M | 125.7M | 106M | 133.4M | 118.3M | 74.1M | 48.8M | 39.02M | 24.6M | 20.72M | 22.44M | 23.24M | 24.68M | 25.13M | 38.4M | 50.82M | 50.09M | 29.47M | 25.12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -448.6M | -320.2M | -497.3M | -330.1M | -211.1M | -177.7M | -44.2M | -119.6M | -109.5M | -61.9M | -54.9M | -40.03M | -21.4M | -17.73M | -19.91M | -22.55M | -24.26M | -23.64M | -31.77M | -39.72M | -36.44M | -26.48M | -20.15M | -18.68M | -17.35M | -22.73M | -24.93M | -15.2M | -8.8M | -2.1M | -700K |
| Pretax Income | 965.9M | 1.11B | 1.08B | 1.36B | 1.73B | 1.48B | 648.5M | 375.4M | 337.5M | 347.07M | 283.52M | 262.7M | 210.5M | 165.79M | 128.46M | 89.17M | 23.19M | 10.7M | -290.85M | 43.39M | 65.71M | 90.62M | 75.89M | 59.5M | 52.84M | 35.43M | 39.53M | 32.1M | 17.8M | 9.5M | 3.2M |
| Pretax Margin % | 2.56% | 2.95% | 2.98% | 4.39% | 6.14% | 6.5% | 4.94% | 2.96% | 2.85% | 3.44% | 3.27% | 3.34% | 3.91% | 4.14% | 3.87% | 3.39% | 1.14% | 0.6% | -14.1% | 1.54% | 2.66% | 3.33% | 2.92% | 2.42% | 2.33% | 1.89% | 2.38% | 2.58% | 2.49% | 2.97% | 2.24% |
| Income Tax | 249.1M | 282.5M | 256.7M | 350.6M | 468.4M | 422.1M | 178.2M | 103.9M | 71.8M | 101.85M | 86.4M | 79.7M | 74.95M | 60.57M | 49.06M | 33.41M | 9.09M | 4.64M | -108.72M | 17.41M | 25.37M | 35.23M | 27.82M | 23.56M | 20.45M | 13.68M | 15.22M | 12.9M | 7M | 3.5M | -800K |
| Effective Tax Rate % | 25.79% | 25.49% | 23.81% | 25.74% | 27.08% | 28.43% | 27.48% | 27.68% | 21.27% | 29.35% | 30.47% | 30.34% | 35.61% | 36.54% | 38.19% | 37.46% | 39.21% | 43.34% | 37.38% | 40.12% | 38.61% | 38.87% | 36.66% | 39.6% | 38.7% | 38.6% | 38.5% | 40.19% | 39.33% | 36.84% | -25% |
| Net Income | 710.5M | 819.6M | 802M | 1B | 1.25B | 1.06B | 470.3M | 271.5M | 265.7M | 245.22M | 197.06M | 183M | 138.72M | 106M | 79.39M | 58.86M | 13.72M | 9.15M | -252.59M | 21.55M | 37.3M | 53.63M | 45.61M | 35.55M | 32.32M | 21.75M | 24.31M | 19.2M | 10.8M | 6M | 4M |
| Net Margin % | 1.88% | 2.18% | 2.22% | 3.22% | 4.44% | 4.64% | 3.58% | 2.14% | 2.25% | 2.43% | 2.27% | 2.33% | 2.57% | 2.65% | 2.39% | 2.24% | 0.67% | 0.51% | -12.24% | 0.76% | 1.51% | 1.97% | 1.76% | 1.44% | 1.42% | 1.16% | 1.47% | 1.54% | 1.51% | 1.88% | 2.8% |
| Net Income Growth % | -16.31% | 2.19% | -19.86% | -20% | 18.01% | 125.41% | 73.22% | 2.18% | 8.35% | 24.44% | 7.68% | 31.92% | 30.87% | 33.51% | 34.89% | 329.04% | 49.92% | 103.62% | -1272.15% | -42.23% | -30.44% | 17.57% | 28.31% | 10% | 48.55% | -10.53% | 26.63% | 77.78% | 80% | 50% | 17.65% |
| Net Income (Continuing) | 716.7M | 825.9M | 821.6M | 1.01B | 1.26B | 1.06B | 470.3M | 271.5M | 265.7M | 245.22M | 197.06M | 183M | 135.54M | 105.21M | 79.39M | 55.77M | 14.1M | 6.06M | -226.51M | 24.44M | 34.49M | 55.39M | 46.5M | 35.82M | 32.36M | 21.75M | 24.31M | 19.2M | 10.8M | 6M | 4M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.18M | 786K | 0 | 3.09M | -381K | 3.09M | -9.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 23.9M | 69M | 44.9M | 36.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 30.36 | 32.32 | 29.65 | 36.29 | 44.20 | 36.56 | 19.51 | 11.60 | 10.86 | 9.75 | 7.72 | 6.91 | 5.26 | 4.05 | 3.07 | 2.21 | 0.52 | 0.35 | -12.51 | 1.06 | 1.77 | 2.54 | 2.27 | 1.93 | 1.80 | 1.60 | 1.76 | 1.60 | 1.14 | 0.82 | 0.51 |
| EPS Growth % | -10.24% | 9.01% | -18.3% | -17.9% | 20.9% | 87.39% | 68.19% | 6.81% | 11.38% | 26.3% | 11.72% | 31.37% | 29.88% | 31.92% | 38.91% | 325% | 48.57% | 102.8% | -1280.19% | -40.11% | -30.31% | 11.89% | 17.62% | 7.22% | 12.5% | -9.09% | 10% | 40.35% | 39.02% | 60.78% | -15% |
| EPS (Basic) | - | 32.38 | 29.71 | 36.39 | 44.36 | 36.81 | 19.76 | 11.70 | 10.89 | 9.78 | 7.84 | 6.96 | 5.31 | 4.11 | 3.13 | 2.24 | 0.52 | 0.35 | -12.51 | 1.10 | 1.91 | 2.80 | 2.43 | 1.96 | 1.84 | 1.63 | 1.78 | 1.72 | 1.18 | 0.85 | 0.56 |
| Diluted Shares Outstanding | 23.4M | 25.4M | 27.1M | 27.6M | 28.3M | 29M | 24.1M | 23.4M | 24.5M | 25.1M | 25.52M | 26.49M | 26.38M | 26.19M | 26.17M | 26.66M | 26.29M | 22.18M | 20.02M | 22.08M | 22.1M | 21.81M | 20.09M | 18.42M | 17.95M | 13.6M | 13.81M | 12M | 9.47M | 7.32M | 7.78M |
| Basic Shares Outstanding | 23.4M | 25.3M | 27M | 27.5M | 28.2M | 28.8M | 23.8M | 23.2M | 24.4M | 25.07M | 25.14M | 26.29M | 26.12M | 25.8M | 25.7M | 26.23M | 26.29M | 22.04M | 20.02M | 19.53M | 19.48M | 19.18M | 18.77M | 18.14M | 17.56M | 13.35M | 13.66M | 11.14M | 9.15M | 7.06M | 7.19M |
| Dividend Payout Ratio | - | 6.75% | 7.04% | 5.28% | 3.61% | 3.66% | 6.19% | 10.17% | 10.43% | 10.82% | 12.25% | 10.92% | 11.48% | 9.51% | 15.2% | 11.59% | 28.57% | 103.2% | - | 51.13% | 27.3% | 14.35% | 12.35% | 7.24% | - | - | - | - | - | - | 160% |
Margin compression from interest
According to recent financial disclosures, Lithia's revenue growth has decelerated significantly, falling from a 22.8% year-over-year increase in 2024Q1 to a marginal 1.0% growth rate by 2026Q1, suggesting that the company's aggressive acquisition-led expansion strategy is struggling to overcome broader industry-wide demand softening and inventory normalization.
The sharp decline in revenue growth indicates that the inorganic expansion model is hitting diminishing returns as the company integrates larger, more complex assets. Investors should monitor whether this deceleration reflects a deliberate pause in M&A activity or an inability to find accretive targets in the current high-interest-rate environment.
As reported in quarterly filings, Lithia's operating margin has contracted from 4.9% in 2023Q4 to 3.1% in 2026Q1, reflecting the combined pressure of rising floorplan interest expenses and the high operational costs associated with scaling the Driveway digital platform across a broader geographic footprint.
The erosion of operating margins suggests that the company's cost structure is becoming increasingly sensitive to interest rate volatility. This trend warrants further investigation into whether the digital platform's efficiency gains are being offset by the persistent overhead required to maintain a physical dealership network.
Based on the provided income statement data, Lithia's operating income has failed to scale with revenue, dropping to $288.1 million in 2026Q1 from a peak of $424.2 million in 2024Q3, which implies that the company's fixed cost base is currently outpacing its ability to generate incremental profit.
The lack of operating leverage suggests that the company's centralized platform is not yet providing the expected economies of scale. If this trend persists, it may indicate that the integration of recent international acquisitions is proving more costly than management initially anticipated.
Analysis of the income statement reveals that net income has plummeted to $100.4 million in 2026Q1 from $216.2 million in 2024Q4, a trend that appears to be driven by both top-line stagnation and a failure to manage non-operating interest costs effectively.
Short-sellers may focus on the volatility of EPS, which has seen a 46.1% decline in the most recent quarter, suggesting that the company's bottom line is highly vulnerable to cyclical downturns. The reliance on debt to fund growth appears to be creating a feedback loop where interest expenses disproportionately impact net profitability.
Quick answers to the most common questions about buying LAD stock.
For fiscal year 2025, Lithia Motors, Inc. (LAD) reported total revenue of $37.63B. This represents a 26255.0% increase compared to $142.8M in 1996.
Lithia Motors, Inc. (LAD) is profitable, generating $819.6M in net income for the fiscal year ending 2025 with a net profit margin of 2.2%.
Lithia Motors, Inc. (LAD) reported an operating income of $1.43B, resulting in an operating profit margin of 3.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Lithia Motors, Inc. (LAD) generated $5.73B in gross profit for the year, representing a gross profit margin of 15.2%. This demonstrates the company's core pricing power and production efficiency.