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Sonic Automotive SAH Franchise — Impairment Charges

Other segment segments

Franchised Dealership Impairment
-$165.9M-13,925%
Powersports Dealerships
-$7.2M
Echo Park
$675K-96.6%

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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$2.68B+5.6%
Enterprise value$5.11B+11.0%
P/E24.6×+8.5×
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:AssetImpairmentCharges.

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

(5) For the three months ended March 31, 2026, amount includes approximately $0.4 million of non-cash pre-tax impairment charges related to construction-in-progress projects for the Franchised Dealerships Segment. For the three months ended March 31, 2025, amount includes approximately $0.2 million of pre-tax property and equipment charges for real estate held for sale in the EchoPark Segment and approximately $1.1 million of pre-tax property, equipment and right-of-use asset charges for the Powersports Segment.

Item 1. Financial Statements (Unaudited)

FAQ

What is Sonic Automotive's franchise — impairment charges?
Sonic Automotive (SAH) reported franchise — impairment charges of $400K in Q1 2026.
What does franchise — impairment charges mean?
This metric represents non-cash charges recognized when the carrying value of long-lived assets, such as goodwill, franchise rights, or property and equipment within the franchise dealership segment, exceeds their fair value. It serves as a critical indicator of potential declines in the long-term economic viability or market value of the company's franchised dealership operations. Investors monitor these charges to assess management's capital allocation effectiveness and the underlying health of the dealership portfolio.

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