What is Lithia Motors's aftersales — contract liability?

Lithia Motors (LAD) reported aftersales — contract liability of $516.1M in Q1 2026.

What does aftersales — contract liability mean?

This metric represents the obligation to provide future services or goods for which payment has already been received from customers, such as prepaid maintenance plans or extended service contracts. It functions as a measure of deferred revenue that will be recognized as income once the performance obligations are satisfied. High levels of contract liability indicate strong future service commitments and upfront cash flow generation.

Lithia Motors LAD Aftersales — Contract liability

Similar metrics at other companies

TRMBContract Liabilities

$107.5M+9.9%

WMBContract with Customer, Liability

$1B-7.6%

CSCOProduct — Contract with Customer, Liability

$13.46B+2.2%

CSCOService — Contract with Customer, Liability

$15.14B+2.1%

AKAMContract Liabilities

$19.93M-13.1%

RALContract Liabilities

$39.9M—

Other financials

Income statement

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Revenue$9.3B+1.0%

Gross profit$1.4B+0.8%

Operating income$335.8M-17.4%

Net income$100.4M-52.1%

EPS (diluted)$4.28-46.1%

Balance sheet

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Cash & equivalents$137.8M—

Total debt$651.8M+9.2%

Total equity$6.4B-5.5%

Total assets$25.7B+9.7%

Cash flow

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Operating cash flow-$108.4M-134%

CapEx$97.1M+41.3%

Free cash flow-$205.5M-181%

Valuation

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Market cap$6.72B-24.6%

P/E9.5×-1.1×

P/S0.2×-0.1×

Profitability

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Gross margin15.2%-0.1pp

Operating margin4%-0.4pp

Net margin1.9%-0.4pp

FCF margin-0.8%-0.3pp

Returns & leverage

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Return on equity10.8%-2.1pp

Debt / equity0.1×0.0×

Current ratio1×-0.2×

Where this comes from

Reported directly by Lithia Motors in its filing.

Tagged under the XBRL concept us-gaap:ContractWithCustomerLiability.

The official record: Lithia Motors’s 10-Q, filed April 29, 2026, on SEC EDGAR. View the filing →

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What is Lithia Motors's aftersales — contract liability?: Lithia Motors (LAD) reported aftersales — contract liability of $516.1M in Q1 2026.
What does aftersales — contract liability mean?: This metric represents the obligation to provide future services or goods for which payment has already been received from customers, such as prepaid maintenance plans or extended service contracts. It functions as a measure of deferred revenue that will be recognized as income once the performance obligations are satisfied. High levels of contract liability indicate strong future service commitments and upfront cash flow generation.