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Lithia Motors LAD Indefinite-Lived Franchise Rights

Indefinite-Lived Franchise Rights at other companies

Group 1 Automotive logo
Group 1 AutomotiveGPI
$917.6M-3.3%
Asbury Automotive Group logo
Asbury Automotive GroupABG
$2.1B+15.4%
AutoNation logo
AutoNationAN

Other financials

Income statement

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Revenue$9.8B+2.2%
Gross profit$1.5B+0.8%
Operating income$448.3M+5.4%
Net income$260.0M+1.5%
EPS (diluted)$11.54+16.9%

Balance sheet

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Cash & equivalents$137.8M
Total debt$650.6M+6.7%
Total equity$6.4B-8.4%
Total assets$26.2B+8.6%

Cash flow

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Operating cash flow-$65.7M-806%
CapEx$56.3M-29.7%
Free cash flow-$122.0M

Valuation

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Market cap$8.26B+8.5%
P/E11.6×+3.0×
P/S0.2×0.0×

Profitability

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Gross margin15.2%-0.2pp
Operating margin4.1%-0.4pp
Net margin1.9%-0.5pp
FCF margin-1.3%

Returns & leverage

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Return on equity10.7%-2.7pp
Debt / equity0.1×0.0×
Current ratio-0.2×

Where this comes from

Reported directly by Lithia Motors in its filing.

Tagged under the XBRL concept us-gaap:IndefiniteLivedFranchiseRights.

The source filing: Lithia Motors’s 10-Q, filed July 29, 2026.

Filed
Jul 29, 2026, 4:33 PM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0001023128-26-000051
(In millions; Unaudited)June 30, 2026December 31, 2025
Operating lease right-of-use assets710.3717.2
Finance receivables, net of allowance for credit losses of $153.4 and $143.75,281.64,755.1
Goodwill2,538.82,476.7
Franchise value2,781.72,777.4
Other non-current assets1,628.51,586.8
Total assets$26,245.8$25,107.2
Liabilities and equity
Current liabilities:

Item 1. Financial Statements

FAQ

What is Lithia Motors's indefinite-lived franchise rights?
Lithia Motors (LAD) reported indefinite-lived franchise rights of $2.78B in Q2 2026.
How has Lithia Motors's indefinite-lived franchise rights changed year-over-year?
Lithia Motors's indefinite-lived franchise rights decreased by 0.2% year-over-year, from $2.79B to $2.78B.
What is the long-term trend for Lithia Motors's indefinite-lived franchise rights?
Over 5 years (2020 to 2025), Lithia Motors's indefinite-lived franchise rights has grown at a 51.3% compound annual growth rate (CAGR), from $350.2M to $2.78B.
What does indefinite-lived franchise rights mean?
This represents the capitalized value of intangible assets granting the company the right to operate dealerships for specific automotive brands without a defined expiration date. These assets are subject to periodic impairment testing rather than systematic amortization. It reflects the company's market position and the strategic value of its brand portfolio within the automotive retail landscape.

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