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Sonic Automotive SAH Finance, insurance and other, net — Contract Assets

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Other financials

Income statement

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Revenue$3.7B+1.0%
Gross profit$598.8M+5.7%
Operating income$132.7M-8.5%
Net income$60.8M-13.9%
EPS (diluted)$1.79-12.3%

Balance sheet

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Cash & equivalents$5.7M-91.2%
Total debt$2.4B+12.2%
Total equity$981.3M-10.0%
Total assets$6.1B+4.1%

Cash flow

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Operating cash flow$35.5M-81.9%
CapEx$37.0M-17.8%
Free cash flow-$1.5M-101%

Valuation

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Market cap$2.61B+1.3%
Enterprise value$5.03B+8.6%
P/E23.9×+7.6×
P/S0.2×0.0×

Profitability

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Gross margin15.9%+0.6pp
Operating margin2.3%-1.1pp
Net margin0.7%-1.0pp
FCF margin1.7%

Returns & leverage

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Return on equity10.5%-14.0pp
Debt / equity2.5×+0.5×
Current ratio-0.1×

Where this comes from

Reported directly by Sonic Automotive in its filing.

Tagged under the XBRL concept us-gaap:ContractWithCustomerAssetNetCurrent.

The source filing: Sonic Automotive’s 10-Q, filed April 30, 2026.

Filed
Apr 30, 2026, 4:01 PM EDT
Fiscal quarter
Q3 FY2026
Calendar quarter
Q3 2026
Accession
0001628280-26-028847

The accompanying unaudited condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025 include approximately $5.8 million and $7.0 million, respectively, related to contract assets from F&I retro revenues recognition, which are recorded in receivables, net. In addition, we recorded approximately $10.2 million related to contract assets from F&I retro revenues recognition in other assets as of both March 31, 2026 and December 31, 2025. Changes in contract assets from December 31, 2025 to March 31, 2026 were primarily due to ordinary business activity, including the receipt of cash for amounts earned and recognized in prior periods. Please refer to Note 1, “Description of Business and Summary of Significant Accounting Policies,” to the consolidated financial statements in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2025 for further discussion of our revenue recognition policies and processes.

Item 1. Financial Statements (Unaudited)

FAQ

What is Sonic Automotive's finance, insurance and other, net — contract assets?
Sonic Automotive (SAH) reported finance, insurance and other, net — contract assets of $5.8M in Q1 2026.
How has Sonic Automotive's finance, insurance and other, net — contract assets changed year-over-year?
Sonic Automotive's finance, insurance and other, net — contract assets increased by 18.4% year-over-year, from $4.9M to $5.8M.
What is the long-term trend for Sonic Automotive's finance, insurance and other, net — contract assets?
Over 4 years (2021 to 2025), Sonic Automotive's finance, insurance and other, net — contract assets has grown at a -30.6% compound annual growth rate (CAGR), from $98.9M to $23M.
What does finance, insurance and other, net — contract assets mean?
This metric represents the recognized contract assets arising from the sale of finance and insurance products where the company has performed its obligation but has not yet received payment. It reflects the value of future cash flows expected from these service contracts that have been recorded as assets on the balance sheet. Monitoring this balance helps investors assess the company's exposure to uncollected revenue and the timing of cash realization from its service portfolio.

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