LITHIA MOTORS INC

Lithia Motors, Inc. (NYSE: LAD) operates as the largest global automotive retailer, providing comprehensive products and services throughout the vehicle ownership lifecycle. The company maintains a presence across the United States, the United Kingdom, and Canada through 455 retail locations representing 54 brands as of December 31, 2025. More information about the company is available at www.lithiainvestorrelations.com.

The company's core business encompasses new and used vehicle sales, automotive financing and insurance products, and aftersales repair and maintenance services. Lithia and Driveway operates through a diversified network designed to serve customers through multiple channels, including physical dealership locations, e-commerce platforms, and digital solutions. The company employs approximately 30,000 full-time equivalent team members across its global operations.

Lithia's business model centers on providing customers with seamless blended online and physical retail experiences supported by proprietary data science and performance measurement systems. The company operates Driveway.com and GreenCars.com as its primary e-commerce home solutions, offering customers the ability to browse inventory, purchase vehicles online with home delivery options, and access educational resources about sustainable mobility. In 2025, GreenCars attracted approximately 9.0 million unique visitors. The company also operates Driveway Finance Corporation (DFC), a captive auto financing division that diversifies revenue streams and provides customer financing solutions.

The company's strategy emphasizes operational excellence through centralized administrative functions and local market responsiveness, growth through disciplined acquisitions targeting 15% after-tax returns, and thoughtful capital allocation balancing acquisitions, capital expenditures, and shareholder returns. During 2025, Lithia acquired 17 stores and divested 12 stores, investing $751.0 million net of floor plan debt with anticipated annualized revenues of approximately $2.4 billion from these acquisitions.

Founded in 1946 and incorporated in Oregon in 1968, Lithia completed its initial public offering in 1996. The company's diversified portfolio includes franchises from major manufacturers including Honda, Toyota, Ford, BMW, and Stellantis, which collectively represent 25 percent of sales. Total advertising expense, net of manufacturer credits, reached $257.0 million in 2025, with over 88 percent deployed toward digital, social, listings, and direct owner communications.