Lithia Motors, Inc
Lithia Motors, Inc. operates Lithia & Driveway, a large automotive retail platform that sells new and used vehicles and supports the full vehicle ownership lifecycle. The company combines physical dealerships, e-commerce, captive auto finance, insurance, and service/repair offerings across the United States, the United Kingdom, and Canada.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueSales of new vehicles through franchised dealerships and omnichannel channels.
Sales of used, CPO, core, and value vehicles across the network and online.
Captive and third-party financing, service contracts, and insurance products.
Repair, maintenance, collision, and parts sales supporting the ownership lifecycle.
Fleet management, e-commerce, and other adjacent automotive services.
Products
Reported · share of revenue- New Vehicle49.7 %
- Used Vehicle35.5 %
- Aftersales10.9 %
- Finance and Insurance3.9 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Lithia serves retail consumers buying, financing, servicing, or selling vehicles, with demand spanning budget-conscious used-car buyers to customers seeking new premium vehicles and certified pre-owned inventory. It also serves commercial and fleet customers through fleet management offerings, while its digital channels target shoppers who want a transparent, low-friction online purchase or pickup experience.
Buy new vehicles from franchised dealerships and value brand choice, local inventory, and dealer expertise.
Buy CPO, core, or value vehicles for affordability and broader selection across brands.
Purchase financing, service contracts, and insurance products that simplify the transaction and add convenience.
Return for repair, maintenance, parts, and pickup/delivery services to keep vehicles operating.
Use fleet management and related services for vehicle acquisition and lifecycle support.
Strategy
Lithia’s strategy is to combine dealership scale with a blended online/offline retail model that improves customer convenience and expands geographic reach. It is also pursuing growth through disciplined acquisitions, network optimization, and higher use of data science to improve store performance, while returning capital through dividends and share repurchases when acquisition returns are less attractive.
Creates a seamless buying and ownership experience and expands customer reach.
Adds stores, brands, and market density in a fragmented industry.
Improves mix, broadens affordability, and supports gross profit per retail unit.
Balances growth investment with shareholder returns and liquidity.
Geography
Q1/2026Lithia operates in the United States, the United Kingdom, and Canada, with 455 locations at year-end 2025 and 447 locations as of September 30, 2025. Management disclosed that international operations outside the United States represented 22% of revenues, making foreign exchange, regulation, and local market conditions meaningful to results.
Share of the revenue the company reports by geography.
Risks
Lithia is exposed to cyclical auto demand, margin normalization in new vehicles, and consumer credit sensitivity, all of which can quickly affect sales and gross profit. Its acquisition-heavy model adds integration and valuation risk, while international operations, cybersecurity, and changing distribution models create additional operational and regulatory uncertainty.
- Cyclical new and used vehicle demandImpact: HighLikelihood: High
Sales and margins depend on consumer spending, confidence, and credit availability.
Exposure - Cybersecurity and IT disruptionImpact: HighLikelihood: High
Online retail, customer data, and store operations rely on secure systems and vendor uptime.
Exposure - Acquisition integration and valuation riskImpact: HighLikelihood: Medium
Growth depends on acquiring stores at acceptable valuations and integrating them successfully.
Exposure: Store network expansion and post-acquisition returns
- Industry transition and distribution changeImpact: MediumLikelihood: High
EV adoption, autonomy, and manufacturer distribution changes could alter dealer economics.
Exposure: Franchised dealership model and vehicle mix
- International operating riskImpact: MediumLikelihood: Medium
UK and Canada operations face FX volatility, local regulation, and franchise model differences.
Exposure: 22% of revenue outside the U.S.
Accounting
Judgemental itemsStore underperformance or market changes can trigger non-cash charges.
Impact: 2025 franchise value impairment of $5.8 million
Captive finance exposure requires estimates of collectability and securitization assumptions.
Impact: Affects credit loss expense and financing income
Deal structure and purchase price allocation affect intangibles, depreciation, and future earnings.
Impact: Can materially change reported margins after acquisitions
Insurance reserves and other accruals can move SG&A and operating income period to period.
Impact: Impacts comparability of adjusted vs reported results
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Last updated: 24/09/2026