# EDGAR Filing Document

**Accession Number:** 0001144980
**File Stem:** 0001144980-26-000051
**Filing Date:** 2026-2
**Character Count:** 599114
**Document Hash:** 3ae63d243e3cbc10ed6502f3fada42ad
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001144980-26-000051.hdr.sgml**: 20260220

**ACCESSION NUMBER**: 0001144980-26-000051

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 139

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260220

**DATE AS OF CHANGE**: 20260220

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ASBURY AUTOMOTIVE GROUP INC
- **CENTRAL INDEX KEY:** 0001144980
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-AUTO DEALERS & GASOLINE STATIONS [5500]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 010609375
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-31262
- **FILM NUMBER:** 26660962

**BUSINESS ADDRESS:**
- **STREET 1:** 6655 PEACHTREE DUNWOODY ROAD
- **CITY:** ATLANTA
- **STATE:** GA
- **ZIP:** 30328
- **BUSINESS PHONE:** 770-418-8200

**MAIL ADDRESS:**
- **STREET 1:** 6655 PEACHTREE DUNWOODY ROAD
- **CITY:** ATLANTA
- **STATE:** GA
- **ZIP:** 30328

?xml version='1.0' encoding='ASCII'? abg-20251231

**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

    

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

   

**FORM 10-K**

(Mark One)

☒ **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the fiscal year ended December 31, 2025** 

**or**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**

**Commission file number: 001-31262** 

   

**ASBURY AUTOMOTIVE GROUP, INC.**

**(Exact name of Registrant as specified in its charter)**

---

| | | |
|:---|:---|:---|
| **Delaware** | **Delaware** | **01-0609375** |
| **(State or other jurisdiction of<br>incorporation or organization)** | **(State or other jurisdiction of<br>incorporation or organization)** | **(I.R.S. Employer<br>Identification No.)** |
| **6655 Peachtree Dunwoody Road**  | **6655 Peachtree Dunwoody Road**  | |
| **Atlanta,** | **Georgia** | **30328** |
| **(Address of principal executive offices)** | **(Address of principal executive offices)** | **(Zip Code)** |

---

**(770) 418-8200** 

**(Registrant's telephone number, including area code)**

   

**Securities registered pursuant to Section 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
|<br>**Title of each class** | **Trading**<br>**Symbol(s)** |<br>**Name of each exchange on which registered** |
| Common stock, $0.01 par value per share | ABG | New York Stock Exchange |

---

**Securities registered pursuant to Section 12(g) of the Act:**

**None.**

a

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ⌧ No □

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes □No ⌧

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧No □

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

Indicate by check mark whether the registrant has submitted electronically and posted on its website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ⌧No □

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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| | | | |
|:---|:---|:---|:---|
| Large Accelerated Filer | ☒ | Accelerated Filer | ☐ |
| Non-Accelerated Filer | ☐ | Smaller Reporting Company | ☐ |
| | | Emerging Growth Company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of

the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.

7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ⌧

Based on the closing price of the registrant's common stock as of June 30, 2025, the aggregate market value of the common stock held by non-affiliates of the registrant was $4.65 billion (based upon the assumption, solely for purposes of this computation, that all of the officers and directors of the registrant were affiliates of the registrant).

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date: The number of shares of common stock outstanding as of February 18, 2026 was 19,257,920.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant's definitive Proxy Statement for the 2026 Annual Meeting of Stockholders, to be filed within 120 days after the end of the registrant's fiscal year, are incorporated by reference into Part III, Items 10 through 14 of this Annual Report on Form 10-K.

    

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

**ASBURY AUTOMOTIVE GROUP, INC.**

**ANNUAL REPORT ON FORM 10-K**

**FOR THE YEAR ENDED** 

**DECEMBER 31, 2025** 

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| | | |
|:---|:---|:---|
| | | **Page** |
| **PART I** | **PART I** | **PART I** |
| <u>[Item 1.](#iba5d00bfba2b47ccbd1306c9caa26e29_16)</u> | <u>[Business](#iba5d00bfba2b47ccbd1306c9caa26e29_16)</u> | <u>[6](#iba5d00bfba2b47ccbd1306c9caa26e29_16)</u> |
| <u>[Item 1A.](#iba5d00bfba2b47ccbd1306c9caa26e29_19)</u> | <u>[Risk Factors](#iba5d00bfba2b47ccbd1306c9caa26e29_19)</u> | <u>[18](#iba5d00bfba2b47ccbd1306c9caa26e29_19)</u> |
| <u>[Item 1B.](#iba5d00bfba2b47ccbd1306c9caa26e29_22)</u> | <u>[Unresolved Staff Comments](#iba5d00bfba2b47ccbd1306c9caa26e29_22)</u> | <u>[32](#iba5d00bfba2b47ccbd1306c9caa26e29_22)</u> |
| <u>[Item 1C.](#iba5d00bfba2b47ccbd1306c9caa26e29_25)</u> | <u>[Cybersecurity](#iba5d00bfba2b47ccbd1306c9caa26e29_25)</u> | <u>[32](#iba5d00bfba2b47ccbd1306c9caa26e29_25)</u> |
| <u>[Item 2.](#iba5d00bfba2b47ccbd1306c9caa26e29_28)</u> | <u>[Properties](#iba5d00bfba2b47ccbd1306c9caa26e29_28)</u> | <u>[33](#iba5d00bfba2b47ccbd1306c9caa26e29_28)</u> |
| <u>[Item 3.](#iba5d00bfba2b47ccbd1306c9caa26e29_31)</u> | <u>[Legal Proceedings](#iba5d00bfba2b47ccbd1306c9caa26e29_31)</u> | <u>[34](#iba5d00bfba2b47ccbd1306c9caa26e29_31)</u> |
| <u>[Item 4.](#iba5d00bfba2b47ccbd1306c9caa26e29_34)</u> | <u>[Mine Safety Disclosures](#iba5d00bfba2b47ccbd1306c9caa26e29_34)</u> | <u>[35](#iba5d00bfba2b47ccbd1306c9caa26e29_34)</u> |
| **PART II** | **PART II** | **PART II** |
| <u>[Item 5.](#iba5d00bfba2b47ccbd1306c9caa26e29_40)</u> | <u>[Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](#iba5d00bfba2b47ccbd1306c9caa26e29_40)</u> | <u>[36](#iba5d00bfba2b47ccbd1306c9caa26e29_40)</u> |
| <u>[Item 6.](#iba5d00bfba2b47ccbd1306c9caa26e29_43)</u> | <u>[Reserved](#iba5d00bfba2b47ccbd1306c9caa26e29_43)</u> | <u>[38](#iba5d00bfba2b47ccbd1306c9caa26e29_43)</u> |
| <u>[Item 7.](#iba5d00bfba2b47ccbd1306c9caa26e29_46)</u> | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#iba5d00bfba2b47ccbd1306c9caa26e29_46)</u> | <u>[38](#iba5d00bfba2b47ccbd1306c9caa26e29_46)</u> |
| <u>[Item 7A.](#iba5d00bfba2b47ccbd1306c9caa26e29_64)</u> | <u>[Quantitative and Qualitative Disclosures About Market Risk](#iba5d00bfba2b47ccbd1306c9caa26e29_64)</u> | <u>[58](#iba5d00bfba2b47ccbd1306c9caa26e29_64)</u> |
| <u>[Item 8.](#iba5d00bfba2b47ccbd1306c9caa26e29_67)</u> | <u>[Financial Statements and Supplementary Data](#iba5d00bfba2b47ccbd1306c9caa26e29_67)</u> | <u>[60](#iba5d00bfba2b47ccbd1306c9caa26e29_67)</u> |
| <u>[Item 9.](#iba5d00bfba2b47ccbd1306c9caa26e29_166)</u> | <u>[Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#iba5d00bfba2b47ccbd1306c9caa26e29_166)</u> | <u>[116](#iba5d00bfba2b47ccbd1306c9caa26e29_166)</u> |
| <u>[Item 9A.](#iba5d00bfba2b47ccbd1306c9caa26e29_169)</u> | <u>[Controls and Procedures](#iba5d00bfba2b47ccbd1306c9caa26e29_169)</u> | <u>[116](#iba5d00bfba2b47ccbd1306c9caa26e29_169)</u> |
| <u>[Item 9B.](#iba5d00bfba2b47ccbd1306c9caa26e29_172)</u> | <u>[Other Information](#iba5d00bfba2b47ccbd1306c9caa26e29_172)</u> | <u>[117](#iba5d00bfba2b47ccbd1306c9caa26e29_172)</u> |
| <u>[Item 9C.](#iba5d00bfba2b47ccbd1306c9caa26e29_175)</u> | <u>[Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#iba5d00bfba2b47ccbd1306c9caa26e29_175)</u> | <u>[117](#iba5d00bfba2b47ccbd1306c9caa26e29_175)</u> |
| **PART III** | **PART III** | **PART III** |
| <u>[Item 10.](#iba5d00bfba2b47ccbd1306c9caa26e29_181)</u> | <u>[Directors, Executive Officers, and Corporate Governance](#iba5d00bfba2b47ccbd1306c9caa26e29_181)</u> | <u>[118](#iba5d00bfba2b47ccbd1306c9caa26e29_181)</u> |
| <u>[Item 11.](#iba5d00bfba2b47ccbd1306c9caa26e29_184)</u> | <u>[Executive Compensation](#iba5d00bfba2b47ccbd1306c9caa26e29_184)</u> | <u>[118](#iba5d00bfba2b47ccbd1306c9caa26e29_184)</u> |
| <u>[Item 12.](#iba5d00bfba2b47ccbd1306c9caa26e29_187)</u> | <u>[Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#iba5d00bfba2b47ccbd1306c9caa26e29_187)</u> | <u>[118](#iba5d00bfba2b47ccbd1306c9caa26e29_187)</u> |
| <u>[Item 13.](#iba5d00bfba2b47ccbd1306c9caa26e29_190)</u> | <u>[Certain Relationships and Related Transactions, and Director Independence](#iba5d00bfba2b47ccbd1306c9caa26e29_190)</u> | <u>[118](#iba5d00bfba2b47ccbd1306c9caa26e29_190)</u> |
| <u>[Item 14.](#iba5d00bfba2b47ccbd1306c9caa26e29_193)</u> | <u>[Principal Accountant Fees and Services](#iba5d00bfba2b47ccbd1306c9caa26e29_193)</u> | <u>[118](#iba5d00bfba2b47ccbd1306c9caa26e29_193)</u> |
|  | **PART IV** |  |
| <u>[Item 15.](#iba5d00bfba2b47ccbd1306c9caa26e29_199)</u> | <u>[Exhibits and Financial Statement Schedules](#iba5d00bfba2b47ccbd1306c9caa26e29_199)</u> | <u>[119](#iba5d00bfba2b47ccbd1306c9caa26e29_199)</u> |
| <u>[Item 16.](#iba5d00bfba2b47ccbd1306c9caa26e29_202)</u> | <u>[Form 10-K Summary](#iba5d00bfba2b47ccbd1306c9caa26e29_202)</u> | <u>[122](#iba5d00bfba2b47ccbd1306c9caa26e29_202)</u> |
| <u>[SIGNATURES](#iba5d00bfba2b47ccbd1306c9caa26e29_205)</u> | <u>[SIGNATURES](#iba5d00bfba2b47ccbd1306c9caa26e29_205)</u> | <u>[123](#iba5d00bfba2b47ccbd1306c9caa26e29_205)</u> |

---

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

**PART I.** 

**Forward-Looking Information** 

Certain of the discussions and information included or incorporated by reference in this report may constitute "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are statements that are not historical in nature and may include statements relating to our goals, plans and projections regarding industry and general economic trends, our expected financial position, results of operations or market position and our business strategy. Such statements can generally be identified by words such as "may," "target," "could," "would," "will," "should," "believe," "expect," "anticipate," "plan," "intend," "foresee," and other similar words or phrases. Forward-looking statements may also relate to our expectations and assumptions with respect to, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the seasonally adjusted annual rate of new vehicle sales in the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic conditions and their expected impact on our revenue and expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expected parts and service revenue due to, among other things, improvements in vehicle technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to limit our exposure to regional economic downturns due to our geographic diversity and brand mix;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• manufacturers' continued use of incentive programs to drive demand for their product offerings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our capital allocation strategy, including as it relates to acquisitions and divestitures, stock repurchases and capital expenditures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our revenue growth strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the growth of the brands that comprise our portfolio over the long-term;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• disruptions in the production and supply of vehicles and parts from our vehicle and parts manufacturers and other suppliers, which can disrupt our operations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our estimated future capital expenditures, which can be impacted by increasing prices and labor shortages and acquisitions and divestitures.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual future results, performance or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Such factors include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability to acquire and successfully integrate acquired businesses into our existing operations and realize expected benefits and synergies from such acquisitions, and identify and remediate insufficient control activities of the acquired businesses, if any, given that substantially all of our acquired businesses are private companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effects of increased expenses or unanticipated liabilities incurred resulting from or due to activities related to our acquisitions or divestitures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in general economic and business conditions, including the current inflationary environment, the current interest rate environment, changes in U.S. trade policy, including the imposition of tariffs, changes in employment levels, consumer confidence levels, consumer demand and preferences, the availability and cost of credit, fuel prices and levels of discretionary personal income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to generate sufficient cash flows, maintain our liquidity and obtain any necessary additional funds for working capital, capital expenditures, acquisitions, stock repurchases, debt maturity payments and other corporate purposes, if necessary or desirable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• significant disruptions in the production and delivery of vehicles and parts, or our business operations, for any reason, including supply shortages, natural disasters, severe weather, civil unrest, both at home and abroad, product recalls, work stoppages or other occurrences that are outside of our control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to successfully attract and retain skilled employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adverse conditions affecting the vehicle manufacturers whose brands we sell, and their ability to design, manufacture, deliver and market their vehicles successfully;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the mix and total number of vehicles we are able to sell;

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our outstanding indebtedness and our continued ability to comply with applicable covenants in our various financing and lease agreements, or to obtain waivers of these covenants as necessary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to refinance outstanding indebtedness on attractive and advantageous terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• high levels of competition in our industry, which may create pricing and margin pressures on our products and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our relationships with manufacturers of the vehicles we sell, and our ability to renew, and enter into new framework and dealer agreements with vehicle manufacturers whose brands we sell, on terms acceptable to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the availability of manufacturer incentive programs and our ability to earn these incentives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure of our management information systems and our ability to successfully transition between key information systems, including our ability to successfully incorporate new technologies and continue our transition to Tekion, a dealer management systems ("DMS") provider, from CDK, another DMS provider;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure of management information systems used or maintained by our third-party service providers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any data security breaches occurring, including with regard to personally identifiable information ("PII");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in laws and regulations governing the operation of automobile franchises, including trade restrictions, consumer protections, accounting standards, taxation requirements and environmental laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• macroeconomic and geopolitical conditions, including global trade relations, changes to consumer and business confidence, international tensions, hostilities and instability, a slowdown in U.S. or global economic growth, higher rates of unemployment, changes in interest rates, inflation, and market volatility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in, or the imposition of, new tariffs or trade restrictions on imported vehicles or parts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adverse results from litigation, regulatory investigations or other similar proceedings involving us, including costs, expenses, settlements and judgments related thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to consummate planned or pending mergers, acquisitions and dispositions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any disruptions in the financial markets, which may impact our ability to access capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our relationships with, and the financial stability of, our lenders and lessors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to execute our initiatives and other strategies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to leverage scale and cost structure to improve operating efficiencies across our dealership portfolio.

Many of these factors are beyond our ability to control or predict, and their ultimate impact could be material. Moreover, the factors set forth under "Item 1A. Risk Factors" and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" below and other cautionary statements made in this report should be read and considered as forward-looking statements subject to such uncertainties. We urge you to carefully consider those factors.

Forward-looking statements speak only as of the date of this report. We expressly disclaim any obligation to update any forward-looking statement contained herein.

**Additional Information**

Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to such reports filed pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, are made available free of charge on our website at *http://www.asburyauto.com* as soon as practical after such reports are filed with the U.S. Securities and Exchange Commission (the "Commission"). In addition, the proxy statement that will be delivered to our stockholders in connection with our 2026 Annual Meeting of Stockholders, when filed, will also be available on our website, and at the URL stated in such proxy statement. We also make available on our website copies of our certificate of incorporation, bylaws, and other materials that outline our corporate governance policies and practices, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the respective charters of our audit committee, governance and nominating committee, compensation and human resources committee, and capital allocation and risk management committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our criteria for independence of the members of our Board of Directors, audit committee, and compensation and human resources committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our Corporate Governance Guidelines; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our Code of Business Conduct and Ethics for Directors, Officers, and Employees.

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

We intend to provide any information required by Item 5.05 of Form 8-K (relating to amendments or waivers of our Code of Business Conduct and Ethics for Directors, Officers, and Employees) by disclosure on our website.

You may also obtain a printed copy of the foregoing materials by sending a written request to: Investor Relations Department, Asbury Automotive Group, Inc., 6655 Peachtree Dunwoody Road, Atlanta, Georgia 30328. In addition, the Commission makes available on its website, free of charge, reports, proxy and information statements, and other information regarding issuers, such as us, that file electronically with the Commission. The Commission's website is *http://www.sec.gov*. Unless otherwise specified, information contained on our website, available by hyperlink from our website or on the Commission's website, is not incorporated into this report or other documents we file with, or furnish to, the Commission.

Except as the context otherwise requires, "we," "our," "us," "Asbury," and the "Company" refer to Asbury Automotive Group, Inc. and its subsidiaries.

**Item 1. BUSINESS**

We offer an extensive range of automotive products and services fulfilling the entire vehicle ownership lifecycle, including new and used vehicles; parts and service, which includes vehicle repair and maintenance services; replacement parts and collision repair services (collectively referred to as "parts and services" or "P&S"); and F&I products, including arranging vehicle financing through third parties and aftermarket products such as extended service contracts, guaranteed asset protection ("GAP") debt cancellation and prepaid maintenance. We strive for a diversified mix of products, services, brands and geographic locations which allows us to reduce our reliance on any one manufacturer, minimize the impact from changes in customer preference and maintain profitability across fluctuations in new vehicle sales. Our diverse revenue base, along with our commitment to operational excellence across our dealership portfolio, provides a resilient business model and strong profit margins.

Our omni-channel platform is designed to engage with customers where and when they want to interact and to increase our market share through digital innovation. We are focused on providing a high level of customer service and have designed our dealership services to meet the increasingly sophisticated needs of customers throughout the vehicle ownership lifecycle. Our digital capabilities further enhance our physical dealership network and drive additional revenue. Our ability to provide a low friction experience across our omni-channel platform drives customer satisfaction and repeat business across our dealership portfolio.

**Acquisitions** 

On July 21, 2025, the Company completed its acquisition of substantially all of the assets, including real property and businesses, of The Herb Chambers Companies (the "Herb Chambers acquisition") for an aggregate purchase price of approximately $1.76 billion. The Herb Chambers acquisition was primarily funded with borrowings under Asbury's existing senior credit facility and borrowings under the 2025 Real Estate Facility. The Herb Chambers acquisition comprised 33 dealerships, 52 franchises and three collision centers and real property and related businesses. The Herb Chambers acquisition increased the Company's footprint in the northeast region of the United States.

There were no acquisitions during the year ended December 31, 2024.

On December 11, 2023, the Company completed its acquisition of the Jim Koons ("Koons") Automotive Companies, (collectively, the "Koons acquisition"), acquiring 20 new vehicle dealerships, six collision centers and the real property related thereto for an aggregate purchase price of approximately $1.50 billion. The acquisition was funded with borrowings under Asbury's existing credit facility and cash on hand. The Koons acquisition diversified Asbury's geographic mix, with expansion into the greater Washington-Baltimore region of the United States.

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

**Divestitures**

During the year ended December 31, 2025, we sold the following franchises:

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| | | | |
|:---|:---|:---|:---|
| **Manufacturer** | **Franchises** | **Locations** | **States** |
| Toyota | 3 | 3 | California; Maryland |
| Nissan | 1 | 1 | Colorado |
| Chrysler Jeep Dodge Ram | 12 | 4 | Colorado; Utah |
| Volvo | 1 | 1 | South Carolina |
| Lexus | 2 | 2 | Utah |
| Chevrolet Buick GMC | 4 | 3 | Utah; Indiana |
| Ford | 1 | 1 | Utah |

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The Company recorded a pre-tax gain totaling $80.2 million which is presented in our accompanying consolidated statements of income as a gain on dealership divestitures, net.

During the year ended December 31, 2024, we sold the following franchises:

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| | | | |
|:---|:---|:---|:---|
| **Manufacturer** | **Franchises** | **Locations** | **States** |
| Nissan | 2 | 2 | Colorado; Georgia |
| Lexus | 1 | 1 | Delaware |
| Chevrolet | 1 | 1 | Georgia |
| Honda | 1 | 1 | Washington |

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The Company recorded a pre-tax gain totaling $8.6 million which is presented in our accompanying consolidated statements of income as a gain on dealership divestitures, net.

During the year ended December 31, 2023, we sold one franchise (one dealership location) in Austin, Texas. The Company recorded a pre-tax gain totaling $13.5 million.

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

**Four Key Components of Our Business**

The following chart presents the contribution to total revenue and gross profit by each line of business for the year ended December 31, 2025:

![2025 Rev VS GP Chart.jpg](abg-20251231_g1.jpg)

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Our new vehicle franchise retail network within our Dealerships segment is made up of dealerships located in 15 states operating primarily under 17 locally branded dealership groups. The following chart provides a detailed breakdown of our states, brand names, and franchises as of December 31, 2025:

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| | | |
|:---|:---|:---|
| **<u>Dealership Group Brand Name</u>** | **<u>State</u>** | **<u>Franchise</u>** |
| Coggin Automotive Group | Florida | Acura, BMW, Buick, Chevrolet, Ford(a), GMC, Honda(d), Hyundai, Mercedes-Benz, Nissan(a), Toyota |
| Courtesy Autogroup | Florida | Chrysler, Dodge Ram, Honda, Hyundai, Infiniti, Jeep, Kia, Mercedes-Benz, Nissan, Sprinter, Toyota |
| Crown Automotive Company | South Carolina | Nissan |
| | Virginia | Acura, BMW(a), MINI |
| David McDavid Auto Group | Texas | Ford, Honda(a), Lincoln |
| Greenville Automotive Group | South Carolina | Land Rover, Porsche, Toyota |
| Hare, Bill Estes & Kahlo Automotive Groups | Indiana | Chevrolet, Chrysler(a), Dodge Ram(a), Ford, Honda, Isuzu, Jeep(a), Toyota |
| Herb Chambers Dealerships | Massachusetts | Alfa Romeo(a), Audi(a), Bentley, BMW(a), Cadillac, Chevrolet, Chrysler(a), Dodge Ram(a), Fiat(a), Ford(a), Honda(b), Hyundai, Infiniti, Jaguar(a), Jeep(a), Kia, Lamborghini, Land Rover(a), Lexus(a), Lincoln(a), Maserati(a), Mercedes-Benz(a), MINI, Porsche(a), Rolls Royce, Sprinter, Toyota(a), Volvo |
| | Rhode Island | Alfa Romeo, Cadillac, Maserati |
| Jim Koons Automotive Companies | Maryland | Chevrolet(a), Ford, GMC, Kia, Mercedes-Benz, Sprinter, Toyota(a), Volvo |
| | Virginia | Buick, Chevrolet, Chrysler, Dodge Ram, Ford(b), GMC(a), Hyundai, Jeep, Kia, Toyota(a) |
| Larry H. Miller Dealerships | Arizona | Chrysler(b), Dodge Ram(c), Fiat, Ford, Genesis, Hyundai, Jeep(b), Nissan, Toyota, Volkswagen(a) |
| | Colorado | Chrysler(a), Dodge Ram(b), Fiat, Ford, Jeep(a), Volkswagen |
| | Idaho | Chrysler, Dodge Ram, Honda, Jeep, Subaru |
| | New Mexico | Chevrolet, Chrysler(a), Dodge Ram, Hyundai(a), Jeep(a), Toyota |
| | Utah | Chevrolet, Chrysler, Dodge Ram, Ford(a), Honda, Jeep, Lincoln, Mercedes-Benz, Toyota, Sprinter |
| Mike Shaw, Stevinson & Arapahoe Automotive Groups | Colorado | Subaru(a), Chevrolet, Hyundai(a), Jaguar, Lexus(a), Porsche, Toyota(a) |
| Nalley Automotive Group | Georgia | Acura, Audi, Bentley, BMW, Honda, Hyundai, Infiniti(a), Kia, Lexus(a), Toyota(b), Volkswagen |
| Park Place Automotive | Texas | Acura, Lexus(a), Land Rover, Mercedes-Benz(b), Porsche, Volvo, Sprinter(b) |
| Plaza Motor Company | Missouri | Audi, BMW, Infiniti, Land Rover, Mercedes-Benz(a), Sprinter(a) |

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____________________________

(a)This dealership group has two of these franchises.

(b)This dealership group has three of these franchises.

(c)This dealership group has four of these franchises.

(d)This dealership group has five of these franchises.

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**Operations**

***New Vehicle Sales***

The following table reflects the number of franchises we owned as of December 31, 2025 and the percentage of new vehicle revenues represented by class and franchise for the year ended December 31, 2025:

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| | | |
|:---|:---|:---|
| **Class/Franchise** | **Number of<br>Franchises Owned** | **% of New<br>Vehicle Revenues** |
| **Luxury** | | |
| Mercedes-Benz | 11 | 7% |
| Lexus | 8 | 11 |
| BMW | 7 | 4 |
| Acura | 4 | 1 |
| Infiniti | 5 | 1 |
| Land Rover | 5 | 2 |
| Maserati | 3 | \* |
| Lamborghini | 1 | \* |
| Porsche | 5 | 2 |
| Alfa Romeo | 3 | \* |
| Volvo | 3 | 1 |
| Audi | 4 | 1 |
| Rolls Royce | 1 | \* |
| Lincoln | 4 | 1 |
| Genesis | 1 | \* |
| Bentley | 2 | \* |
| Jaguar | 3 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Luxury | 70 | 32% |
| **Import** |  |  |
| Toyota | 18 | 19% |
| Honda | 15 | 9 |
| Hyundai | 10 | 5 |
| Sprinter | 9 | 1 |
| Nissan | 5 | 1 |
| Kia | 5 | 2 |
| Volkswagen | 4 | 1 |
| Subaru | 3 | 1 |
| Fiat | 4 | \* |
| MINI | 2 | \* |
| Isuzu | 1 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Import | 76 | 40% |
| **Domestic** |  |  |
| Cadillac | 2 | \* |
| Chrysler, Dodge, Jeep, Ram | 46 | 8% |
| Chevrolet, Buick, GMC | 15 | 7 |
| Ford | 14 | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Domestic | 77 | 28% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Franchises** | 223 | 100% |

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\* Franchise accounted for less than 1% of new vehicle revenues for the year ended December 31, 2025.

Our new vehicle revenues include new vehicle sales and lease transactions arranged by our dealerships with third-party financial institutions. We believe that leasing provides a number of benefits to our other business lines, including the historical

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

customer loyalty to the leasing dealership for repairs and maintenance services and the fact that lessors typically give the leasing dealership the first option to purchase the off-lease vehicle.

***Used Vehicle Sales***

We sell used vehicles at all our franchised dealership locations. Used vehicle sales include the sale of used vehicles to individual retail customers ("used retail") and the sale of used vehicles to other dealers or licensed wholesalers ("wholesale") (the terms "used retail" and "wholesale" are collectively referred to as "used").

Gross profit from the sale of used vehicles depends primarily on our dealerships' ability to obtain a high-quality supply of used vehicles and our use of technology to manage our inventory. Our new vehicle operations typically provide our used vehicle operations with a large supply of trade-ins and off-lease vehicles, which we believe are good sources of high-quality used vehicles. We also purchase a portion of our used vehicle inventory at "open" auctions and auctions restricted to new vehicle dealers. Additionally, our used vehicle sales benefit from our ability to sell certified pre-owned vehicles from our franchised dealerships.

***Parts and Service***

We provide vehicle repair and maintenance services, sell replacement parts, and recondition used vehicles at all our dealerships. Additionally, we provide collision repair services at our 39 free-standing collision repair centers that we operate either on the premises of or in close proximity to our dealerships. Historically, parts and service revenues have been more stable than revenues from vehicle sales. Industry-wide, parts and service revenues have consistently increased over time primarily due to the increased cost of maintaining vehicles, the added technical complexity of vehicles, and the increasing number of vehicles on the road.

The automotive parts and service industry tends to be highly fragmented, with franchised dealerships and independent repair shops competing for this business. We believe that the increased use of advanced technology in vehicles is making it difficult for independent repair shops to compete effectively with franchised dealerships, however, as independent repair shops may not be able to make the investments necessary to perform major or technical repairs. In an effort to maintain the necessary knowledge to service vehicles and further develop our technician staff, we focus on our internal and manufacturer specific training and development programs for new and existing technicians. We believe our parts and service business is also well-positioned to benefit from the service work potentially generated through the sale of extended service contracts to customers who purchase new and used vehicles from us, as historically these customers tend to have their vehicles serviced at the location where they purchased the extended service contract. In addition, our franchised dealerships benefit from manufacturer policies requiring that warranty and recall related repairs be performed at a franchised dealership. We believe our collision repair centers provide us with an attractive opportunity to grow our business due to the high margins provided by collision repair services and the fact that we are able to source original equipment manufacturer parts from our franchised dealerships.

***Finance and Insurance***

We offer a wide variety of automotive F&I products to our customers. Through the acquisition of TCA in December 2021, we offer extended vehicle service contracts, prepaid maintenance contracts, key replacement contracts, guaranteed asset protection contracts, paintless dent repair contracts, appearance protection contracts, tire and wheel, and lease wear and tear contracts. These F&I products are sold to our customers via our network of dealerships.

In addition to the TCA F&I products, we offer our customers a variety of vehicle protection products through independent third parties in connection with the purchase of vehicles. These products are underwritten and administered by these third parties. Under our arrangements with the providers of these products, we primarily sell the products on a straight commission basis. We are subject to chargebacks for service and other contracts as a result of early termination, default, or prepayment of the contract. In addition, we participate in future profits associated with the performance of the third-party held underlying portfolio for certain products pursuant to retrospective commission arrangements.

We also arrange third-party financing for the sale or lease of vehicles to our customers in exchange for compensation paid to us by the third-party financial institution. We do not directly finance our customers' vehicle purchases or leases, therefore our exposure to losses in connection with those third-party financing arrangements is limited generally to the compensation we receive. The compensation we receive is subject to chargeback, or repayment, to the third-party finance company if a customer defaults or prepays the retail installment contract typically during some limited time period at the beginning of the contract term. We have negotiated agreements with certain lenders pursuant to which we receive additional compensation upon reaching a certain volume of business.

F&I revenue in our Dealerships segment represents the commissions earned from both TCA and independent third parties related to a broad range of F&I products. This F&I revenue is presented net of third-party chargebacks.

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F&I revenue in our TCA segment represents the premium revenue earned from customers for F&I products primarily sold in connection with the purchase of vehicles at our dealerships. The premium revenue is recognized over the life of the F&I product contract as services are provided. We capitalize costs, such as employee sales commissions, to obtain customer contracts, and amortize those costs over the life of the contract. Amortization of costs to obtain customer contracts is included in selling, general and administrative expenses in the consolidated statements of income. The portion of commissions that are paid to affiliated dealerships is eliminated upon consolidation. The Dealerships segment also provides vehicle repair and maintenance services to TCA customers in connection with claims related to TCA's products. Upon consolidation, the associated service revenue recorded by the Dealerships segment is eliminated against the service costs incurred by the Dealerships segment. All claims paid related to the contracts are recognized in F&I cost of sales in the TCA segment.

In addition, F&I revenue includes investment income and other gains and losses related to the performance of our investment portfolio.

**Business Strategy**

We seek to be the most guest-centric automotive retailer and to create long-term value for our stockholders by striving to drive operational excellence and deploy capital to its highest risk-adjusted returns. To achieve these objectives, we employ the strategies described below.

*Provide an exceptional customer experience in our stores.*

We are guided by our mission and vision to be the most guest-centric automotive retailer in the industry and use that framework as our North Star. We have designed our dealerships' services to meet the needs of an increasingly sophisticated and demanding automotive consumer. We endeavor to establish relationships that we believe will result in both repeat business and additional business through customer referrals. Furthermore, we provide our dealership managers with appropriate incentives to employ efficient selling approaches, engage in extensive follow-up to develop long-term relationships with customers, and extensively train our sales staff to meet customer needs.

*Accelerate same store growth and guest experience through technology investment*.***

As part of our long-term growth strategy, we invest in technologies and partner with leading software platform vendors to develop applications that (i) serve our guests with omni-channel buying options offering enhanced speed and transparency, and (ii) drive a more efficient guest experience at a lower cost to serve.

*Grow F&I product penetration and expand TCA's service offerings across the full dealership portfolio.* 

We continue to be positioned to leverage the acquisition of LHM to improve profitability via the ownership of TCA, a highly scalable provider of a full-suite of F&I products. TCA's key offerings include vehicle service contracts, prepaid maintenance, protection plans, key and remote replacement, leased vehicle protection and tire and wheel protection. Over the long term, we expect the profitability of our TCA products will be higher than the profitability associated with selling F&I products offered by third parties. We are continuing to integrate TCA's service offerings across our full dealership portfolio to increase our F&I product penetration and profitability. We completed the rollout of TCA's service offerings in our Florida market and the Koons platform during the year ended December 31, 2025. We expect to complete the rollout to all our dealerships in 2026 by offering TCA products on our Herb Chambers platform; however, no assurance can be given that the rollout will be completed within the timeframe contemplated.

*Attract, retain and invest in top talent to drive growth and optimize operations*.*** 

We believe the core of our business success lies in our talent pool, so we are focused on attracting, hiring and retaining the best people. We also invest in resources to train and develop our employees. Our executive management team has extensive experience in the auto retail sector and is able to leverage experience from all positions throughout the Company. In addition, we believe that local management of dealership operations enables our retail network to provide market specific responses to sales, customer service and inventory requirements. The general manager of each of our dealerships is responsible for the operations, personnel and financial performance of that dealership as well as other day-to-day operations.

*Leverage scale and cost structure to improve operating efficiencies.* 

We are positioned to leverage our significant scale so that we are able to achieve competitive operating margins by centralizing and streamlining various back-office functions. We are able to improve financial controls and lower servicing costs by maintaining key store-level accounting and administrative activities in our shared service centers, and we leverage our scale to reduce costs related to purchasing certain equipment, supplies, and services through national vendor relationships. Similarly,

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we are able to leverage our scale to implement these best practices when integrating newly acquired dealerships allowing us to continue to improve our operating efficiencies.

*Deploy capital to highest returns and continue to invest in the business.* 

Our capital allocation decisions are made within the context of maintaining sufficient liquidity and a prudent capital structure. We target a 2.5x to 3.5x transaction adjusted net leverage ratio, which is calculated as set forth in our credit facility, in a normal business environment. The Company's transaction-adjusted net leverage ratio was 3.2x as of December 31, 2025, compared to 2.9x as of December 31, 2024. We believe our cash position and borrowing capacity, combined with our current and expected future cash generation capability, provide us with financial flexibility to, among other things, reinvest in our business, acquire dealerships and repurchase our stock, when prudent.

We continually evaluate our existing dealership network and seek to make strategic investments that will increase the capacity of our dealerships and improve the customer experience. In addition, we continue to execute on our strategy of selectively acquiring our leased properties where financing rates make it attractive to be an owner and provide us a further means to finance our business.

*Evaluate opportunities to refine the dealership portfolio.* 

We continually evaluate the financial and operating results of our dealerships, as well as each dealership's geographical location and, based on various financial and strategic rationales, may make decisions to dispose of dealerships to refine our dealership and real estate portfolio. We also evaluate dealership acquisition opportunities based on market position and geography, brand representation and availability, key personnel and other factors. Our approach to dispositions and acquisitions is highly disciplined, with a focus on long-term strategic value to stockholders.

*Deliver on our mission to grow and transform our business.*

We continually evaluate additional opportunities to drive revenue growth while maintaining our disciplined approach to capital allocation. We intend to execute on our strategic plan by focusing on a variety of growth efforts including, balanced capital allocation, driving same-store revenue growth, acquiring revenue through strategic transactions, opportunistically repurchasing our stock, and harvesting operating efficiencies enabled by the transition to Tekion. Aligning with our strategic outlook, the Company entered into a Transaction Agreement related to the Herb Chambers dealership group that closed on July 21, 2025, resulting in the Company acquiring substantially all of the assets, including all real property and businesses of the Herb Chambers dealership group, which comprise 33 dealerships, 52 franchises and three collision centers, and which is expected to contribute positively to the Company's overall revenue objectives.

**Competition**

The automotive retail and service industry is highly competitive with respect to price, service, location, and selection. For new vehicle sales, our dealerships compete with other franchised dealerships, primarily in their regions. Our new vehicle store competitors also have franchise agreements with the various vehicle manufacturers, and as such, generally obtain new vehicle inventory from vehicle manufacturers on the same terms as us. The franchise agreements grant the franchised dealership a non-exclusive right to sell the manufacturer's (or distributor's) brand of vehicles and offer related parts and service within a specified market area. State automotive franchise laws restrict competitors from relocating their stores or establishing new stores of a particular vehicle brand within a specified area that is served by our dealership of the same vehicle brand. Recently, certain electric vehicle manufacturers have been permitted to circumvent the state automotive franchise laws of several states in the United States thereby permitting them to sell their new vehicles directly to consumers. We rely on our advertising and merchandising, sales expertise, service reputation, strong local branding, and location of our dealerships to assist in the sale of new vehicles.

Our used vehicle operations compete with other franchised dealerships, non-franchised automotive dealerships, regional and national vehicle rental companies, and internet-based vehicle brokers for the supply and resale of used vehicles.

We compete with other franchised dealerships to perform warranty and recall-related repairs. We compete with other franchised dealerships and independent service centers for collision and non-warranty repair and maintenance services. We compete with other automobile dealers, service stores, and auto parts retailers in our parts operations. We believe that we have a competitive advantage in parts and service sales due to our ability to use factory-approved replacement parts, our skilled manufacturer trained and certified technicians, our competitive prices, our familiarity with manufacturer brands and models, and the quality of our customer service.

We compete with a broad range of financial institutions in arranging financing for our customers' vehicle purchases. In addition, many financial institutions are now offering F&I products through the internet, which has increased competition and

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may reduce our profits on certain of these items. We believe the principal competitive factors in providing financing are convenience, interest rates, and flexibility in contract length.

**Seasonality**

The automobile industry has historically been subject to seasonal variations. Demand for new vehicles is generally highest during the second and third quarters of each year and, accordingly, we expect our revenues and operating results to generally be higher during these periods. In addition, we typically experience higher sales of luxury vehicles, which have higher average selling prices and gross profit per vehicle retailed, in the fourth quarter. Revenues and operating results may be impacted significantly from quarter to quarter by changing economic conditions, vehicle manufacturer incentive programs, or adverse weather events, or other occurrences that are outside of our control.

**Dealer and Framework Agreements**

Each of our dealerships operate pursuant to a dealer agreement between the dealership and the manufacturer (or in some cases the distributor) of each brand of new vehicles sold and/or serviced at the dealership. The dealer agreements grant the franchised dealership a non-exclusive right to sell the manufacturer's (or distributor's) brand of vehicles and offer related parts and service within a specified market area. Each dealer agreement also grants our dealerships the right to use the manufacturer's trademarks and service marks in connection with the dealerships' operations and they also impose numerous operational requirements related to, among other things, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inventories of new vehicles and manufacturer replacement parts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintenance of minimum net working capital requirements, and in some cases, minimum net worth requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• achievement of certain sales and customer satisfaction targets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• advertising and marketing practices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• facilities and signs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• products offered to customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• dealership management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• personnel training;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• information systems;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• geographic market, including but not limited to requirements to meet sales and service targets within an assigned market area, geographic limitations on where the dealership may locate or advertise, and restrictions on the export of vehicles; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• dealership monthly and annual financial reporting.

Our dealer agreements are for various terms, ranging from one year to indefinite. We expect that we will be able to renew expiring agreements in the ordinary course of business. However, typical dealer agreements give the manufacturer the right to terminate or the option of non-renewal of the dealer agreement under certain circumstances, subject to applicable state automotive dealership franchise laws, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• insolvency or bankruptcy of the dealership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure to adequately operate the dealership or to maintain required capitalization levels;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• impairment of the reputation or financial condition of the dealership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• change of ownership or management of the dealership without manufacturer consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• certain extraordinary corporate transactions such as a merger or sale of all or substantially all of our assets without manufacturer consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure to complete facility upgrades required by the manufacturer or agreed to by the dealer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure to maintain any license, permits or authorization required to conduct the dealership's business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• conviction of a dealer/manager or owner for certain crimes; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• material breach of other provisions of a dealer agreement.

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Notwithstanding the terms of any dealer agreement, the states in which we operate have automotive dealership franchise laws which provide that it is unlawful for a manufacturer to terminate or not renew a franchise unless "good cause" exists.

In addition to requirements under dealer agreements, we are subject to provisions contained in supplemental agreements, framework agreements, dealer addenda and manufacturers' policies, collectively referred to as "framework agreements." Framework agreements impose requirements on us in addition to those described above. Such agreements also define other standards and limitations, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• company-wide performance criteria;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• capitalization requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limitations on changes in our ownership or management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limitations on the number of a particular manufacturer's franchises owned by us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restrictions or prohibitions on our ability to pledge the stock of certain of our subsidiaries; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• conditions for consent to proposed acquisitions, including sales and customer satisfaction criteria, as well as limitations on the total local, regional, and national market share percentage that would be represented by a particular manufacturer's franchises owned by us after giving effect to a proposed acquisition.

Some dealer agreements and framework agreements grant the manufacturer the right to terminate or not renew our dealer and framework agreements, or to compel us to divest our dealerships, for a number of reasons, including default under the agreement, any unapproved change of control (specific changes vary from manufacturer to manufacturer, but which include material changes in the composition of our Board of Directors during a specified time period, the acquisition of 5% or more of our voting stock by another vehicle manufacturer or distributor, the acquisition of 20% or more of our voting stock by third parties, and the acquisition of an ownership interest sufficient to direct or influence management and policies), or certain other unapproved events (including certain extraordinary corporate transactions such as a merger or sale of all or substantially all of our assets). Triggers of the clauses are often based upon actions by our stockholders and are generally outside of our control. Some of our dealer agreements and framework agreements also give the manufacturer a right of first refusal if we propose to sell any dealership representing the manufacturer's brands to a third party. These agreements may also attempt to limit the protections available under applicable state laws and require us to resolve disputes through binding arbitration. For additional information, please refer to the risk factor captioned, "We are dependent upon our relationships with the manufacturers of vehicles that we sell and are subject to restrictions imposed by, and significant influence from, these vehicle manufacturers. Any of these restrictions or any changes or deterioration of these relationships could have a material adverse effect on our business, financial condition, results of operations, and cash flows."

Our framework agreements with certain manufacturers contain provisions that, among other things, attempt to limit the protections available to dealers under these laws. If these laws are repealed in the states in which we operate, manufacturers may be able to terminate our franchises without providing us with advance notice, an opportunity to cure or a showing of good cause. Without the protection of these laws, it may also be more difficult for us to renew our dealer agreements upon expiration.

Changes in laws that provide manufacturers the ability to terminate our dealer agreements could materially adversely affect our business, financial condition and results of operations. Furthermore, if a manufacturer seeks protection from creditors in bankruptcy, courts have held that the federal bankruptcy laws may supersede these laws, resulting in either the termination, non-renewal or rejection of franchises by such manufacturers, which, in turn, could materially adversely affect our business, financial condition, and results of operations. For additional information, please refer to the risk factor captioned, "If state laws that protect automotive retailers are repealed, weakened, or superseded by our framework agreements with manufacturers, our dealerships will be more susceptible to termination, non-renewal or renegotiation of their dealer agreements which could have a material adverse effect on our business, results of operations, financial condition, and cash flows."

**Regulations**

We operate in a highly regulated industry. In every state in which we operate, we must obtain one or more licenses issued by state regulatory authorities in order to operate our business. In addition, we are subject to numerous complex federal, state, and local laws regulating the conduct of our business, including those relating to our sales, operations, finance and insurance, marketing, and employment practices. These laws and regulations include state franchise laws and regulations, product standards and recalls, consumer protection laws, privacy and data security laws, anti-money laundering laws, and other extensive laws and regulations applicable to new and used motor vehicle dealers. These laws also include federal and state wage and hour, anti-discrimination, and other laws governing employment practices.

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*Industry Regulations*

The Federal Trade Commission ("FTC") has regulatory authority over automotive dealers and has implemented enforcement initiatives relating to the marketing practices of automotive dealers. Our operations are also subject to the National Traffic and Motor Vehicle Safety Act, Federal Motor Vehicle Safety Standards and other product standards promulgated by the United States Department of Transportation, and the rules and regulations of various state motor vehicle regulatory agencies.

Our financing activities with customers are subject to federal truth-in-lending, consumer leasing, and equal credit opportunity laws and regulations, as well as state and local motor vehicle finance laws, leasing laws, installment finance laws, usury laws, and other installment state and leasing laws and regulations. Some U.S. states regulate fees and charges that may be collected as a result of vehicle sales and service. Claims arising out of actual or alleged violations of law may be asserted against us or our stores by individuals or governmental entities and may expose us to significant damages, fines or other penalties, including revocation or suspension of our license to conduct store operations. Our financing activities, as well as our sale of finance and insurance products, may also be impacted indirectly by laws and regulations that govern automotive finance companies and other financial institutions, including regulations adopted by the Consumer Financial Protection Bureau (the "CFPB").

Our TCA business involves the offer and sale of extended vehicle service contracts, debt protection products, vehicle protection plans and other miscellaneous vehicle protection products, which are subject to a wide range of federal, state and local laws and regulations. The Departments of Insurance of U.S. states have regulatory authority over our TCA business. Our TCA business is subject to state licensing and registration requirements, and financial responsibility and security requirements. For additional information, please refer to the risk factors captioned: "Our dealership operations and facilities are subject to extensive governmental laws and regulations. If we are found to be in purported violation of or subject to liabilities under any of these laws or regulations, or if new laws or regulations are enacted that adversely affect our operations, our business, results of operations, financial condition, cash flows, reputation and prospects could suffer" and "Our TCA business is subject to a wide range of federal, state and local laws and regulations, some of which we may not have previously been subject. If we are found to be in purported violation of or subject to liabilities under any of these laws or regulations, or if new laws or regulations are enacted that adversely affect our TCA business, our business, results of operations, financial condition, cash flows, reputation and prospects could suffer."

*Environmental, Health and Safety Laws and Regulations*

We are subject to a wide range of environmental laws and regulations, including those governing discharges into water, air emissions, storage of petroleum substances and chemicals, handling and disposal of solid and hazardous wastes, remediation of various types of contamination, and otherwise relating to health, safety and protection of the environment. For example, and without creating an exhaustive list: as with automobile dealerships generally, and service and parts and collision repair center operations in particular, our business involves the generation, use, handling, and disposal of hazardous or toxic substances and wastes and the use of above ground and underground storage tanks (ASTs and USTs). Operations involving the management of wastes and the use of ASTs and USTs are subject to requirements of the Resource Conservation and Recovery Act, analogous state statutes, and their implementing regulations. Pursuant to these laws, federal and state environmental agencies have established approved methods for handling, storing, treating, transporting, and disposing of regulated substances and wastes with which we must comply. We also are subject to laws and regulations governing responses to any releases of contamination at or from our facilities or at facilities that receive our hazardous wastes for treatment or disposal. The Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA") and similar state statutes, can impose strict and joint and several liability for cleanup costs on those that are considered to have contributed to the release of a "hazardous substance." We also are subject to the Clean Water Act, analogous state statutes, and their implementing regulations which, among other things, prohibit discharges of pollutants into regulated waters without permits, require containment of potential discharges of oil or hazardous substances, and require preparation of spill contingency plans.

We have incurred, and will continue to incur, costs and capital expenditures to comply with these laws and regulations. We believe that our operations currently are being conducted in substantial compliance with all applicable regulations. From time to time, we may experience incidents and encounter conditions that are not in compliance with regulations. We may occasionally receive notices from governmental agencies regarding potential violations of these laws or regulations. In such cases, we will work with the agencies to address any issues and to implement appropriate corrective action when necessary. However, none of our dealerships has been subject to any material liabilities in the past, nor do we know of any fact or condition that would result in any material liabilities being incurred in the future.

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**Human Capital**

*Mission and Vision*

At Asbury, our North Star and our mission is to be the most guest-centric automotive retailer. Our success depends on our employees and their commitment to delivering a consistent and exceptional guest experience. Our employees work at locations in Arizona, Colorado, Florida, Georgia, Idaho, Indiana, Maryland, Massachusetts, Missouri, New Mexico, Rhode Island, South Carolina, Texas, Utah, and Virginia. We believe that our employees help to set us apart from our competitors, and, therefore, we understand they are one of our greatest assets. As a result, a critical part of our business strategy is investing in, supporting and developing our employees so that they are trained and incentivized to provide best-in-class service to our guests.

As of December 31, 2025, we employed approximately 15,000 full-time and part-time employees, none of whom were covered by collective bargaining agreements. We believe we have good relations with our employees.

*Inclusive and Welcoming Culture*

We strive to create a welcoming and inclusive workplace throughout our dealerships and offices for our team members who represent a wide range of backgrounds and experiences. We feel that building this culture enables us to attract, retain and develop the careers of our highly talented team members. We intend to continue to learn and develop - working towards building a workplace where every Asbury team member feels included and welcomed.

*Community Outreach*

Through our Asbury Cares program, we support selected community partner organizations across the nation to help reduce disparities in our communities where we live and serve. Since 2021, we have awarded our full-time employees with an additional 40 hours of paid time off per year that can be used to volunteer with our local community partners. We partner with charitable organizations that focus on building strong communities, enhancing education and youth development, improving health and wellness, and supporting veterans and military families. In 2025, we supported more than 75 organizations within our local communities.

As part of our Asbury Cares Community program, a significant portion of our efforts revolve around education and making sure that young people in underserved communities have access to a quality education. We formed a partnership with HBCU Change, an app-based organization that lets users round up their spending and donate to Historically Black Colleges and Universities ("HBCU"). Within our locations, the point-of-sale credit card machines show a prompt asking our guests if they would like to donate to HBCU Change. Through donations from our guests and company match, we have contributed more than $1.95 million to HBCUs across the country since the start of our partnership with HBCU Change in May 2021.

*Recruitment and Talent Development*

When recruiting for open positions, we search for the most talented people who each have varying backgrounds, perspectives, and experiences. We also partner with local colleges and trade schools to develop apprenticeship and internship programs. This allows us to help provide valuable training to entry-level candidates while also growing our pipeline.

Our goal is to promote employees from within to career growth opportunities whenever possible. We invest significant resources to train and develop our employees to provide a great guest experience, enable success in their roles, and reach their career goals. In 2022, we launched a training curriculum for all store positions. In 2024, we also implemented guest experience training for all employees. In addition, we offer our employees access to an online career path tool, which helps them plan their desired career path and see the required performance goals and milestones to be considered for a promotion. Our fixed operations organization requires technicians to obtain and maintain certification status with our vehicle manufacturers, and our dealerships pay for the required training. Our employees also attend vehicle manufacturer-sponsored and industry training events.

We pride ourselves on rewarding and developing talented and tenured employees.

*Compensation and Benefits*

We offer competitive compensation and benefits to attract and retain the best people, including the following benefits for our full-time employees:

&nbsp;&nbsp;&nbsp;&nbsp;• Health, dental, and vision benefits with multiple plan choices;

&nbsp;&nbsp;&nbsp;&nbsp;• Discounted healthcare premiums for biometric screening and completion of health survey; and

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&nbsp;&nbsp;&nbsp;&nbsp;• Employee assistance program.

Saving and retirement

&nbsp;&nbsp;&nbsp;&nbsp;• 401(k) match.

Paid time off

&nbsp;&nbsp;&nbsp;&nbsp;• Up to 4 weeks paid time off;

&nbsp;&nbsp;&nbsp;&nbsp;• Paid pregnancy leave; and

&nbsp;&nbsp;&nbsp;&nbsp;• Paid parental leave.

Disability and accident insurance

&nbsp;&nbsp;&nbsp;&nbsp;• Short-term disability and long-term disability insurance;

&nbsp;&nbsp;&nbsp;&nbsp;• Accident insurance, hospital indemnity, employee critical illness insurance;

&nbsp;&nbsp;&nbsp;&nbsp;• Employer paid life insurance; and

&nbsp;&nbsp;&nbsp;&nbsp;• Supplemental life insurance.

Scholarships for education

&nbsp;&nbsp;&nbsp;&nbsp;• Annual scholarship program.

Broad employee equity ownership

&nbsp;&nbsp;&nbsp;&nbsp;• We also lead the industry by offering equity awards to frontline employees because we want them to be owners of our Company and committed to our long-term success.

**Self-Insurance Programs**

Due to the inherent risk in the automotive retail industry, our operations expose us to a variety of liabilities. These risks generally require significant levels of insurance covering liabilities such as claims from employees, customers, or other third parties, for personal injury and property-related losses occurring in the course of our operations. We may be subject to fines and civil and criminal penalties in connection with alleged violations of federal and state laws or regulatory environments. Further, the automobile retail industry is subject to substantial risk of real and personal property loss, due to the significant concentration of property values located at the various dealership locations.

Under our self-insurance programs, including property and casualty, workers' compensation, and medical, the Company retains various levels of aggregate loss limits and per-claim deductibles. In addition, the Company maintains separate insurance policies to address potential cyber and directors and officers exposures. We are self-insured for certain employee medical claims and maintain stop-loss insurance for individual claims.

Provisions for retained losses and deductibles are made by charges to expense based upon periodic evaluations of the estimated ultimate liabilities on reported and unreported claims. The insurance companies that underwrite our insurance require we secure certain of our obligations for deductible reimbursements with collateral. Our collateral requirements are set by the insurance companies and, to date, have been satisfied by posting surety bonds, letters of credit, and/or cash deposits. Our collateral requirements may change from time-to-time based on, among other things, our claims experience.

**Item 1A. Risk Factors**

In addition to the other information contained, referred to or incorporated by reference into this report, you should consider carefully the following factors when evaluating our business and before making an investment decision. Our business, operations, ability to implement our strategy, reputation, results of operations, financial condition, cash flows, and prospects may be materially adversely affected by the risks described below. In addition, other risks or uncertainties not presently known to us or that we currently do not deem material could arise, any of which could also materially adversely affect us.

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**Risks Related to Our Business**

**Operating Risks**

***Disruptions in the production and delivery of new vehicles and parts from manufacturers due to the lack of availability of parts and key components from suppliers could have a material adverse effect on our business, results of operations, financial condition and cash flows.***

Historically, we have generated a significant portion of our revenue through new vehicle sales, and new vehicle sales also tend to lead to sales of higher-margin products and services, such as F&I products and vehicle-related parts and service. In addition, new vehicle buyers often trade in an owned vehicle, or turn in a leased vehicle, to us at the time of purchase, and these traded vehicles have historically been an important source for our used vehicle inventory. We rely exclusively on the various vehicle manufacturers for our new vehicle inventory and maintenance and replacement parts inventory. In turn, our vehicle manufacturers rely on certain third-party suppliers to manufacture and deliver certain parts and key components for their vehicles. As a result, our profitability is dependent to a great extent on various aspects of vehicle manufacturers' operations and timely delivery of new vehicles and parts.

***Property loss or other uninsured liabilities could have a material adverse impact on our results of operations.***

We are subject to substantial risk of property loss due to the significant concentration of property at dealership locations, including vehicles and parts. We have historically experienced business interruptions from time to time at several of our dealerships, due to actual or threatened adverse weather conditions or natural disasters, such as hurricanes, earthquakes, tornadoes, floods, hailstorms, fires or other extraordinary events. For example, in 2024, Hurricanes Helene and Milton impacted store operations in Florida, Georgia, and South Carolina, leading to temporary store closures and reduced customer traffic. Concentration of property at dealership locations also makes the automotive retail business particularly vulnerable to theft, fraud and misappropriation of assets. Illegal or unethical conduct by employees, customers, vendors, and unaffiliated third parties can result in loss of assets, disrupt operations, impact brand reputation, jeopardize manufacturer and other relationships, result in the imposition of fines or penalties, and subject us to governmental investigations or lawsuits. While we maintain insurance to protect against various losses, this insurance coverage often contains significant deductibles. In addition, we "self-insure" a portion of our potential liabilities, meaning we do not carry insurance from a third party for such liabilities, and are wholly responsible for any related losses including for certain potential liabilities that some states prohibit the maintenance of insurance to protect against. In certain instances, our insurance may not fully cover a loss depending on the applicable deductible or the magnitude and nature of the claim. Additionally, changes in the cost or availability of insurance in the future could substantially increase our costs to maintain our current level of coverage or could cause us to reduce our insurance coverage and increase our self-insured risks. To the extent we incur significant additional costs for insurance, suffer losses that are not covered by in-force insurance or suffer losses for which we are self-insured, our financial condition, results of operations and cash flows could be materially adversely impacted.

***If we are unable to acquire and successfully integrate additional businesses into our existing operations, and realize expected benefits and synergies from such acquisitions, our revenue and earnings growth may be adversely affected.***

We believe that the automotive retailing industry is a mature industry whose sales are significantly impacted by the prevailing economic climate, both nationally and in local markets. Accordingly, we believe that our future growth depends in part on our ability to manage expansion, control costs in our operations and acquire and effectively integrate acquired dealerships into our organization. For example, with the consummation of the Koons acquisition in 2023 and the Herb Chambers acquisition in 2025, we have experienced, and expect to continue to experience, significantly more sales, and have more assets and employees than we did prior to the transaction. The integration processes require us to expend significant capital and significantly expand the scope of our operations and financial systems. Integration also requires support or other actions by third parties such as vendors, suppliers, and licensing agencies and the untimely or inadequate responses from such third parties can delay or otherwise negatively impact the integration process.

When seeking to acquire other dealerships, we often compete with several other national, regional and local dealership groups, and other strategic and financial buyers, some of which may have greater financial resources than us. Competition for attractive acquisition targets may result in fewer acquisition opportunities for us and we may have to forgo acquisition opportunities to the extent we cannot negotiate such acquisitions on acceptable terms.

We also face additional risks commonly encountered with growth through acquisitions. These risks include, but are not limited to: (i) failing to obtain manufacturers' consents to acquisitions of additional franchises; (ii) incurring significant transaction-related costs for both completed and failed acquisitions; (iii) incurring significantly higher capital expenditures and operating expenses; (iv) failing to integrate the operations and personnel of the acquired dealerships and impairing relationships with employees; (v) incorrectly valuing entities to be acquired or incurring undisclosed liabilities at acquired dealerships; (vi) disrupting our ongoing business and diverting our management resources to newly acquired dealerships; (vii) failing to achieve

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expected performance levels; (viii) impairing relationships with manufacturers and customers as a result of changes in management; (ix) failing to realize expected benefits and synergies from the transaction; and (ix) failing to implement or improve controls, policies and information systems and related security measures in the acquired businesses.

We may not adequately anticipate all the demands that our growth will impose on our personnel, procedures and structures, including our financial and reporting control systems, information technology systems, data processing systems, and management structure. Moreover, our failure to retain qualified management personnel at any acquired dealership may increase the risks associated with integrating the acquired dealership. If we cannot adequately anticipate and respond to these demands, we may fail to realize acquisition synergies and our resources will be focused on incorporating new operations into our structure rather than on areas that may be more profitable.

***We are a holding company and as a result are dependent on our operating subsidiaries to generate sufficient cash and distribute cash to us to service our indebtedness and fund our ongoing operations.***

Our ability to make payments on our indebtedness and fund our ongoing operations depends on our operating subsidiaries' ability to generate cash in the future and distribute that cash to us. It is possible that our subsidiaries may not generate cash from operations in an amount sufficient to enable us to service our indebtedness. In addition, many of our subsidiaries are required to comply with the provisions of franchise agreements, dealer agreements, other agreements with manufacturers, mortgages, and credit facility providers. Many of these agreements contain minimum working capital or net worth requirements, and are subject to change at least annually. Although the requirements contained in these agreements did not restrict our subsidiaries from distributing cash to us as of December 31, 2025, unexpected changes to our financial metrics or to the terms of our franchise agreements, dealer agreements, or other agreements with manufacturers could require us to alter the manner in which we distribute or use cash. If our operating subsidiaries are unable to generate and distribute sufficient cash to us to service our indebtedness and fund our ongoing operations, our financial condition may be materially adversely affected.

***Our inability to execute a substantial portion of our business strategy, including our mission to grow and transform our business, could have an adverse effect on our business, results of operations, financial condition and cash flows.***

Our inability to execute a substantial portion of our business strategy could adversely affect our business, results of operations, financial condition and cash flow. We seek to execute on our strategic plan using a variety of growth efforts, which include driving same-store revenue growth and acquiring additional revenue through strategic acquisitions. Many of the factors that impact our ability to execute our strategic vision, such as the advancement of certain technologies, general economic conditions and legal and regulatory obstacles, are beyond our control.

Consumers are increasingly shopping for new and used vehicles, automotive repair and maintenance services and other automotive products and services online and through mobile applications, including through third-party online and mobile sales platforms, with which we compete. We have invested and will continue to invest in our omni-channel and other online applications in furtherance of our strategic vision. We face increased competition for market share from other automotive retailers and other sales platforms that have also invested in digital channels. There can be no assurance that our initiatives and investments in digital channels will be successful or result in improved financial performance.

We may not adequately anticipate all the demands that our growth will impose on our personnel, procedures and structures, including our financial and reporting control systems, information technology systems, data processing systems, and management structure. Furthermore, we may decide to alter or discontinue aspects of our strategic plan and may adopt alternative or additional strategies in response to business or competitive factors or other factors or events beyond our control. We cannot give assurance that we will be able to execute a substantial portion of our strategic plan which could have a material adverse effect on our business, financial condition, results of operations, and cash flows.

***Goodwill and manufacturer franchise rights comprise a significant portion of our total assets. We must test our goodwill and manufacturer franchise rights for impairment at least annually, which could result in a material, non-cash write-down of goodwill or manufacturer franchise rights and could have a material adverse effect on our results of operations and stockholders' equity.***

Our principal intangible assets are goodwill and our rights under our franchise agreements with vehicle manufacturers. Goodwill and indefinite-lived intangible assets, including manufacturer franchise rights, are subject to impairment assessments at least annually (or more frequently when events or changes in circumstances indicate that an impairment may have occurred), by applying a qualitative or quantitative assessment. A decrease in our market capitalization or profitability increases the risk of goodwill impairment. The fair value of our manufacturer franchise rights is determined by discounting a subset of the projected cash flows at a dealership that we attribute to the value of the franchise. Changes to the business mix or declining cash flows in a dealership increase the risk of impairment. During the year ended December 31, 2025, we recognized asset impairment charges of $141.0 million associated with manufacturer franchise rights recorded at certain dealerships and goodwill associated

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with certain asset disposal groups. We cannot accurately predict the amount and timing of any additional impairment charges at this time; however, any such impairment charge could have an adverse effect on our results of operations and stockholders' equity. See Note 10 "Goodwill and Intangible Franchise Rights" of the notes to the consolidated financial statements for more information.

***The loss or transition of key personnel and limited management and personnel resources could adversely affect our business.***

Our success depends, to a significant degree, upon the continued contributions of our management team and service and sales personnel, and the ability of the Company to establish an effective succession plan to ensure leadership continuity when key personnel leave, retire or unexpectedly depart. In addition, dealer and framework agreements may require the prior approval of the applicable manufacturer before any change is made in dealership general managers or other management positions. The loss of the services of one or more of these key employees may materially impair the profitability of our operations or may result in a violation of an applicable dealer or framework agreement. In addition, the market for qualified employees in the industry and in the states in which we operate, specifically for general managers and sales and service personnel, is highly competitive and may subject us to increased labor costs during periods of low unemployment. The loss of the services of such employees or the inability to attract additional qualified employees may adversely affect the ability of our dealerships to conduct their operations in accordance with the standards set by us or the manufacturers. If we are unable to retain our key personnel, we may be unable to successfully execute our business plans, which may have a material adverse effect on our business.

***We may not realize the strategic benefits and cost synergies that are anticipated from the planned Herb Chambers acquisition.***

The benefits that are expected to result from the Herb Chambers acquisition will depend, in part, on our ability to integrate and realize the anticipated revenue and cost synergies from the Herb Chambers acquisition. If management is not able to effectively manage the integration process, including without limitation the rollout of our TCA products to the Herb Chambers dealerships and the transition of the Herb Chambers platform to Tekion,or if any significant business activities are interrupted as a result of the integration process, our business, financial condition and results of operations could suffer. We also cannot guarantee that the benefits and cost synergies that we currently expect to realize as a result of the Herb Chambers acquisition will be achieved within our anticipated time frames or at all. Additionally, we may incur substantial expenses in connection with the integration of the Herb Chambers dealerships, which may exceed expectations and offset certain anticipated benefits, and in connection with certain ongoing obligations under the Herb Chambers Transaction Agreement.

**Risks Related to Macroeconomic and Market Conditions**

***The automotive retail industry is sensitive to unfavorable changes in general economic conditions and various other factors that could affect demand for our products and services, which could have a material adverse effect on our business, our ability to implement our strategy and our results of operations.***

Our future performance will be impacted by general economic conditions, including among other things: changes in employment levels; consumer demand, preferences and confidence levels; the availability and cost of credit; fuel prices; levels of discretionary personal income; inflation; interest rates; and changes in U.S. trade policy, including the imposition of tariffs and resulting consequences. Inflation continues to be an issue throughout the U.S. economy. Inflation can adversely affect us by increasing the costs of labor, fuel and other costs as well as by reducing demand for automobiles. Sales of certain vehicles, particularly trucks and sport utility vehicles that historically have provided us with higher gross profit per vehicle retailed, may be sensitive to fuel prices. In addition, rapid changes in fuel prices can cause shifts in consumer preferences which are difficult to accommodate given the long lead-time of inventory acquisition. Inflation is also often accompanied by higher interest rates, which could reduce the fair value of our outstanding debt obligations. Changes in interest rates can also significantly impact new and used vehicle sales and vehicle affordability due to the direct relationship between interest rates and monthly loan payments, a critical factor for many vehicle buyers, and the impact interest rates have on customers' borrowing capacity and disposable income. In an inflationary environment, depending on automotive industry and other economic conditions, we may be unable to raise prices to keep up with the rate of inflation, which would reduce our profit margins. We have experienced, and continue to experience, increases in the prices of labor, fuel and other costs of providing service. Continued inflationary pressures could impact our profitability.

We also are subject to economic, competitive, and other conditions prevailing in the various markets in which we operate, even if those conditions are not prominent nationally.

Retail vehicle sales are cyclical and historically have experienced periodic downturns characterized by oversupply and weak demand, which could result in a need for us to lower the prices at which we sell vehicles, which would reduce our

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revenue per vehicle sold and our margins. Additionally, a shift in consumer vehicle preferences driven by pricing, fuel costs or other factors may have a material adverse effect on our revenues, margins and results of operations.

Changes in general economic conditions may make it difficult for us to execute our business strategy. In such an event, we may be required to enter into certain transactions in order to generate additional cash, which may include, but not be limited to, selling certain of our dealerships or other assets or increasing borrowings under our existing, or any future, credit facilities. There can be no assurance that, if necessary, we would be able to enter into any such transactions in a timely manner or on reasonable terms, if at all. Furthermore, in the event we were required to sell dealership assets, the sale of any material portion of such assets could have a material adverse effect on our revenue and profitability.

***Adverse conditions affecting one or more of the vehicle manufacturers with which we hold franchises or their inability to deliver a desirable mix of vehicles that our consumers demand could have a material adverse effect on our business, results of operations, financial condition and cash flows.***

Historically, we have generated most of our revenue through new vehicle sales, and new vehicle sales also tend to lead to sales of higher-margin products and services, such as finance and insurance products and vehicle-related parts and service. As a result, our profitability is dependent to a great extent on various aspects of vehicle manufacturers' operations, many of which are outside of our control. Our ability to sell new vehicles is dependent on manufacturers' ability to design and produce, and willingness to allocate and deliver to our dealerships, a desirable mix of popular new vehicles that consumers demand. For example, improvements in electric, battery-powered and hybrid gas/electric vehicles have increased consumer demand for such vehicles. If consumer demand increases for certain types of vehicles, including electric, battery-powered and hybrid gas/electric, and our manufacturers are not able to adapt and produce such vehicles that meet consumer demands, our new and used vehicle sales volumes, parts and service revenue and our results of operations may be adversely affected. Further, if manufacturers shift significant resources away from traditional production models to invest in clean vehicles and new technologies, we may experience an inadequate supply of historically popular vehicles and other adverse effects on our new and used vehicle sales volume, parts and service revenue and our results of operations until such time as consumer preferences for clean vehicles and other new technologies become widespread. In addition, popular vehicles may often be difficult to obtain from manufacturers for a number of reasons, including the fact that manufacturers generally allocate their vehicles to dealerships based on sales history and capital expenditures associated with such dealerships. Further, if a manufacturer fails to produce desirable vehicles or develops a reputation for producing undesirable vehicles or produces vehicles that do not comply with applicable laws or government regulations, and we own dealerships which sell that manufacturer's vehicles, our revenues from those dealerships could be adversely affected as consumers shift their vehicle purchases away from that brand.

Although we seek to limit our dependence on any one vehicle manufacturer, there can be no assurance that the brand mix allocated and delivered to our dealerships by the manufacturers will be appropriate or sufficiently diverse to protect us from a significant decline in the desirability of vehicles manufactured by a particular manufacturer or disruptions in a manufacturer's ability to produce vehicles. For the year ended December 31, 2025, manufacturers representing 5% or more of our revenues from new vehicle sales were as follows:

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| | |
|:---|:---|
| **Manufacturer (Vehicle Brands):** | **% of Total<br>New Vehicle<br>Revenues** |
| Toyota Motor Sales, U.S.A., Inc. (Toyota and Lexus) | 30% |
| Ford Motor Company (Ford and Lincoln) | 14% |
| American Honda Motor Co., Inc. (Honda and Acura) | 10% |
| Stellantis N.V. (Chrysler, Dodge, Jeep, Ram and Fiat) | 8% |
| General Motors Company (Chevrolet, Buick and GMC) | 7% |
| Mercedes-Benz USA, LLC (Mercedes-Benz, Smart and Sprinter) | 7% |
| Hyundai Motor America (Hyundai) | 6% |

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Similar to automotive retailers, vehicle manufacturers may be affected by the long-term U.S. and international economic climate. In addition, we remain vulnerable to other matters that may impact the manufacturers of the vehicles we sell, many of which are outside of our control, including: (i) changes in their respective financial condition; (ii) changes in their respective marketing efforts; (iii) changes in their respective reputation; (iv) manufacturer and other product defects, including recalls; (v) changes in their respective management; (vi) disruptions in the production and delivery of vehicles and parts due to natural disasters, pandemics, wars, conflicts or other reasons; (vii) issues with respect to labor relations; and (viii) consolidation among manufacturers. Our business is highly dependent on consumer demand and brand preferences for our manufacturers' products. Manufacturer recall campaigns are a common occurrence that have accelerated in frequency and scope. Manufacturer recall campaigns could (i) adversely affect our new and used vehicle sales or customer residual trade-in valuations, (ii) cause us to temporarily remove vehicles from our inventory, (iii) force us to incur increased costs, and (iv) expose us to litigation and

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adverse publicity related to the sale of recalled vehicles, which could have a material adverse effect on our business, results of operations, financial condition and cash flows. Vehicle manufacturers that produce vehicles outside of the U.S. are subject to additional risks including changes in quotas, tariffs or duties, fluctuations in foreign currency exchange rates, regulations governing imports and the costs related thereto, and foreign governmental regulations.

Adverse conditions that materially affect a vehicle manufacturer and its ability to profitably design, market, produce or distribute desirable new vehicles could in turn materially adversely affect our ability to (i) sell vehicles produced by that manufacturer, (ii) obtain or finance our new vehicle inventories, (iii) access or benefit from manufacturer financial assistance programs, (iv) collect in full or on a timely basis any amounts due therefrom, and/or (v) obtain other goods and services provided by the impacted manufacturer. In addition, we depend on manufacturers' ability to design, produce, and supply parts to us and any failure to do so could have a material adverse effect on our parts and services business. Our business, results of operations, financial condition, and cash flows could be materially adversely affected as a result of any event that has an adverse effect on any vehicle manufacturer.

If a vehicle manufacturer's financial condition worsens and it seeks protection from creditors in bankruptcy or similar proceedings, or otherwise under the laws of its jurisdiction of organization, (i) the manufacturer could seek to terminate or reject all or certain of our franchises, (ii) if the manufacturer is successful in terminating all or certain of our franchises, we may not receive adequate compensation for those franchises, (iii) our cost to obtain financing for our new vehicle inventory may increase or no longer be available from such manufacturer's captive finance subsidiary, (iv) consumer demand for such manufacturer's products could be materially adversely affected, especially if costs related to improving such manufacturer's financial condition are factored into the price of its products, (v) there may be a significant disruption in the availability of consumer credit to purchase or lease that manufacturer's vehicles or negative changes in the terms of such financing, which may negatively impact our sales, or (vi) there may be a reduction in the value of receivables and inventory associated with that manufacturer, among other things. The occurrence of any one or more of these events could have a material adverse effect on our business, results of operations, financial condition, and cash flows.

In addition, the automotive manufacturing supply chain spans the globe. As such, supply chain disruptions resulting from natural disasters, adverse weather, pandemics, tariffs, labor stoppages, wars, conflicts and other events may affect the flow of vehicle and parts inventories to us or our manufacturing partners. If we experience disruptions in the supply of vehicle and parts inventories, such disruptions could have a material adverse effect on our business, results of operations, financial condition, and cash flows.

***Substantial competition in automobile sales and services may have a material adverse effect on our results of operations.***

The automotive retail and service industry is highly competitive with respect to price, service, location, and selection. Our competition includes: (i) franchised automobile dealerships in our markets that sell the same or similar new and used vehicles; (ii) privately negotiated sales of used vehicles; (iii) other used vehicle retailers, including regional and national vehicle rental companies; (iv) companies with a primarily internet-based business model, such as Carvana, and used vehicle brokers that sell used vehicles to consumers; (v) service center and parts supply chain stores; and (vi) independent service and repair shops.

We do not have any cost advantage over other retailers in purchasing new vehicles from manufacturers. We typically rely on our advertising, merchandising, sales expertise, service reputation, strong local branding and dealership location to sell new vehicles. Because our dealer agreements only grant us a non-exclusive right to sell a manufacturer's product within a specified market area, our revenues, gross profit and overall profitability may be materially adversely affected if competing dealerships expand their market share. Further, our vehicle manufacturers may decide to award additional franchises in our markets in ways that negatively impact our sales.

The internet has become a significant part of the advertising and sales process in our industry. Customers are using the internet to shop and compare prices for new and used vehicles, automotive repair and maintenance services, finance and insurance products and other automotive products. If we are unable to effectively use the internet to attract customers to our own online channels, and mobile applications, and, in turn, to our stores, our business, financial condition, results of operations and cash flows could be materially adversely affected. Additionally, the growing use of social media by consumers increases the speed and extent that information and opinions can be shared, and negative posts or comments on social media about us or any of our stores could damage our reputation and brand names, which could have a material adverse effect on our business, financial condition, results of operations and cash flows.

Additionally, we rely on the protection of state franchise laws in the states in which we operate and if those laws are repealed or weakened, our framework, franchise and related agreements may become more susceptible to termination, nonrenewal or renegotiation. These laws have historically restricted the ability of automobile manufacturers to directly enter the retail market and sell vehicles directly to consumers. However, many states have recently passed or introduced legislation to permit direct to consumer sales of electric vehicles by certain companies, such as Tesla and Rivian, without the requirements of

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establishing a dealer network. If the state franchise laws are repealed, weakened or amended to permit vehicle manufacturers to sell vehicles (whether electric or not) directly to consumers, they may be able to have a competitive advantage over the traditional dealers, which could have a material adverse effect on our sales in those states, which in turn, could have a material adverse effect on our business, financial condition, results of operations and cash flows.

***We are dependent upon our relationships with the manufacturers of vehicles that we sell and are subject to restrictions imposed by, and significant influence from, these vehicle manufacturers. Any of these restrictions or any changes or deterioration of these relationships could have a material adverse effect on our business, financial condition, results of operations and cash flows.***

We are dependent on our relationships with the manufacturers of the vehicles we sell, which have the ability to exercise a great deal of control and influence over our day-to-day operations, as a result of the terms of our dealer, framework and related agreements. We may obtain new vehicles from manufacturers, service vehicles, sell new vehicles and display vehicle manufacturers' trademarks only to the extent permitted under these agreements. The terms of these agreements may conflict with our interests and objectives and may impose limitations on key aspects of our operations, including acquisition strategy and capital spending.

For example, manufacturers can set performance standards with respect to sales volume, sales effectiveness and customer satisfaction, and require us to obtain manufacturer consent before we can acquire dealerships selling a manufacturer's automobiles. From time to time, we may be precluded under agreements with certain manufacturers from acquiring additional franchises, or subject to other adverse actions, to the extent we are not meeting certain performance criteria at our existing stores (with respect to matters such as sales volume, customer satisfaction and sales effectiveness) until our performance improves in accordance with the agreements, subject to applicable state franchise laws. In addition, many vehicle manufacturers place limits on the total number of franchises that any group of affiliated dealerships may own and certain manufacturers place limits on the number of franchises or share of total brand vehicle sales that may be maintained by an affiliated dealership group on a national, regional or local basis, as well as limits on store ownership in contiguous markets. If we reach any of these limits, we may be prevented from making further acquisitions, or we may be required to dispose of certain dealerships, which could adversely affect our future growth. We cannot provide assurance that manufacturers will approve future acquisitions timely, if at all, which could significantly impair the execution of our acquisition strategy.

In addition, certain manufacturers use a dealership's manufacturer-determined customer satisfaction index ("CSI") score as a factor governing participation in incentive programs. To the extent we do not meet minimum score requirements, our future payments may be materially reduced or we may be precluded from receiving certain incentives, which could materially adversely affect our business, financial condition, results of operations and cash flows.

Manufacturers also typically establish facilities and minimum capital requirements for dealerships on a case-by-case basis. In certain circumstances, including as a condition to obtaining consent to a proposed acquisition and qualifying for certain financial incentives, a manufacturer may require us to remodel, upgrade or move our facilities, and capitalize the subject dealership at levels we would not otherwise choose to fund, causing us to divert our financial resources away from uses that management believes may be of higher long-term value to us. Delays in obtaining, or failing to obtain, manufacturer consent, would impede our ability to execute acquisitions that we believe would integrate well with our overall strategy and limit our ability to expand our business.

Manufacturers can also establish new franchises or relocate existing franchises, subject to applicable state franchise laws. The establishment or relocation of franchises in our markets could have a material adverse effect on the business, financial condition and results of operations of our dealerships in the market in which the action is taken.

Manufacturers may also limit our ability to divest one or more of our franchise dealerships in a timely manner. Most of our dealer agreements provide the manufacturer with a right of first refusal to purchase any of the manufacturer's franchises we seek to sell. Divestitures of our franchise dealerships may also require manufacturer consent and failure to obtain consent would require us to find another potential buyer or wait until the buyer is able to meet the requirements of the manufacturer. A delay in the sale of a dealership could have a negative impact on our business, financial condition, results of operations, and cash flows.

Manufacturers may terminate or may not renew our dealer and framework agreements, or may compel us to divest our dealerships, for a number of reasons, including default under the agreement, any unapproved change of control (which specific changes vary from manufacturer to manufacturer, but which include material changes in the composition of our Board of Directors during a specified time period, the acquisition of 5% or more of our voting stock by another vehicle manufacturer or distributor, the acquisition of 20% or more of our voting stock by third parties, and the acquisition of an ownership interest sufficient to direct or influence management and policies), or certain other unapproved events (including certain extraordinary corporate transactions such as a merger or sale of all or substantially all of our assets). Triggers of these clauses are often based upon actions by our stockholders and are generally outside of our control. Restrictions on any unapproved changes of

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ownership or management may adversely impact our value, as they may prevent or deter prospective acquirers from gaining control of us. In addition, actions taken by a manufacturer to exploit its bargaining position in negotiating the terms of renewals of franchise agreements or otherwise could also have a material adverse effect on our revenues and profitability.

There can be no assurances that we will be able to renew our dealer and framework agreements on a timely basis, on acceptable terms, or at all. Our business, financial condition and results of operations may be materially adversely affected to the extent that our rights become compromised or our operations are restricted due to the terms of our dealer or framework agreements or if we lose franchises representing a significant percentage of our revenues due to the termination of, or failure to renew, such agreements.

***If vehicle manufacturers reduce or discontinue sales incentive, warranty or other promotional programs, our business, financial condition, results of operations and cash flows may be materially adversely affected.***

We benefit from certain sales incentive, warranty, and other promotional programs of vehicle manufacturers that are intended to promote and support their respective new vehicle sales. Key incentive programs include: (i) customer rebates on new vehicles; (ii) dealer incentives on new vehicles; (iii) special financing or leasing terms; (iv) warranties on new and used vehicles; and (v) sponsorship of used vehicle sales by authorized new vehicle dealers.

Vehicle manufacturers often make many changes to their incentive programs. Any reduction or discontinuation of manufacturers' incentive programs for any reason, including a supply and demand imbalance, may reduce our sales volume which, in turn, could have a material adverse effect on our business, financial condition, results of operations and cash flows.

***Technological advances, including electrification of vehicles and adoption of autonomous vehicles in the long-term, could have a material adverse effect on our business.***

The automotive industry is predicted to experience change over the long-term. Technological advances are facilitating the development of electric, battery powered and hybrid gas/electric vehicles and autonomous vehicles. While most major vehicle manufacturers have announced plans to electrify some or all of their new vehicle offerings, the eventual timing of widespread availability of electric, battery powered and hybrid gas/electric vehicles and driverless vehicles is uncertain due to regulatory requirements, additional technological requirements, and uncertain consumer acceptance of these vehicles. We expect to continue to sell electric, battery powered and hybrid gas/electric vehicles through our dealerships; however, the effect of these vehicles on the automotive retail business is uncertain and could include changes in the level of the new and used vehicle sales, the price of new and used vehicles and the levels of service required for such vehicles and the profitability of our parts and service business, our finance and insurance business, including our TCA business, and the role of franchised dealers, any of which could materially adversely affect our business, financial condition, results of operations and cash flows.

**Risks Related to Our Indebtedness and Financial Matters**

***Our outstanding indebtedness, ability to incur additional debt and the provisions in the agreements governing our debt, and certain other agreements, could have a material adverse effect on our business, financial condition, results of operations, and cash flows.***

As of December 31, 2025, we had total debt of $3.59 billion and total floor plan notes payable, net of $2.03 billion. We have the ability to incur substantial additional debt in the future to finance, among other things, acquisitions, working capital and capital expenditures, and new and used vehicle inventory, as well as to refinance new and used vehicle inventory, subject in each case to the restrictions contained in our debt instruments and other agreements existing at the time such indebtedness is incurred. We will continue to have substantial debt service obligations, consisting of required cash payments of principal and interest, for the foreseeable future.

Our debt service obligations could have important consequences to us for the foreseeable future, including the following: (i) our ability to obtain additional financing, or to obtain such financing on attractive terms, for acquisitions, capital expenditures, working capital or other general corporate purposes may be impaired; (ii) a substantial portion of our cash flow from operating activities must be dedicated to the payment of principal and interest on our debt, thereby reducing the funds available to us for our operations and other corporate purposes; (iii) some of our borrowings are and will continue to be at variable rates of interest, which exposes us to certain risks of interest rate increases; and (iv) we may be or become substantially more leveraged than some of our competitors, which may place us at a relative competitive disadvantage and make us more vulnerable to changes in market conditions and governmental regulations.

In addition to our ability to incur additional debt in the future, there are operating and financial restrictions and covenants, such as leverage covenants, in certain of our debt and mortgage agreements, including the agreement governing our 2023 Senior Credit Facility and our mortgage agreements and related mortgage guarantees, as well as certain other agreements to which we are a party that may adversely affect our ability to finance our future operations or capital needs or to pursue certain

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business activities. These limit, among other things, our ability to incur certain additional debt, create certain liens or other encumbrances and make certain payments (including dividends and repurchases of our common stock and for investments). Certain of these agreements also require us to maintain compliance with certain financial ratios, including, but not limited to, our adjusted net leverage ratio.

Our failure to comply with any of these covenants in the future could constitute a default under the relevant agreement, which could, depending on the relevant agreement, (i) entitle the creditors under such agreement to terminate our ability to borrow under the relevant agreement and accelerate our obligations to repay outstanding borrowings; (ii) require us to repay those borrowings; (iii) entitle the creditors under such agreement to foreclose on the property securing the relevant indebtedness; or (iv) prevent us from making debt service payments on certain of our other indebtedness, any of which would have a material adverse effect on our business, financial condition, results of operations and cash flows. In many cases, a default under one of our debt, mortgage, or other agreements, could trigger cross-default provisions in one or more of our other debt or mortgage agreements. There can be no assurance that our creditors would agree to an amendment or waiver of our covenants. In the event we obtain an amendment or waiver, we would likely incur additional fees and higher interest expense.

In addition to the financial and other covenants contained in our various debt or mortgage agreements, certain of our lease agreements contain covenants that give our landlords the right to terminate the lease, seek significant cash damages, or evict us from the applicable property, if we fail to comply. Similarly, our failure to comply with any financial or other covenants in any of our framework agreements would give the relevant manufacturer certain rights, including the right to reject proposed acquisitions, and may give it the right to repurchase its franchises from us. Events that give rise to such rights, and our inability to acquire additional dealerships or the requirement that we sell one or more of our dealerships at any time, could inhibit the growth of our business, and could have a material adverse effect on our business, financial condition, results of operations and cash flows. Manufacturers may also have the right to restrict our ability to provide guarantees of our operating companies, pledges of the capital stock of our subsidiaries and liens on our assets, which could materially adversely affect our ability to obtain financing for our business and operations on favorable terms or at desired levels, if at all.

The occurrence of any one of these events may limit our ability to take strategic actions that would otherwise enable us to manage our business in a manner in which we otherwise would, absent such limitations, which could materially adversely affect our business, financial condition, results of operations and cash flows.

***Our business, financial condition and results of operations may be materially adversely affected by increases in interest rates.***

We generally finance our purchases of new vehicle inventory, have the ability to finance the purchases of used vehicle inventory, and have the availability to borrow funds for working capital under our senior secured credit facilities that charge interest at variable rates. Therefore, our interest expense from variable rate debt will rise with increases in interest rates. In addition, a significant rise in interest rates may also have the effect of depressing demand in the interest rate sensitive aspects of our business, particularly new and used vehicle sales and the related profit margins and F&I revenue per vehicle, because most of our customers finance their vehicle purchases. As a result, rising interest rates may have the effect of simultaneously increasing our capital costs and reducing our revenues. Given our variable interest rate debt and floor plan notes payable outstanding as of December 31, 2025, each one percent increase in market interest rates would increase our total annual interest expense by approximately $26.2 million. When considered in connection with reduced expected sales, if interest rates increase, any such increase could materially adversely affect our business, financial condition and results of operations.

***Our vehicle sales, financial condition and results of operations may be materially adversely affected by changes in costs or availability of consumer financing.***

The majority of vehicles purchased by our customers are financed. Reductions in the availability of credit to consumers have contributed to declines in our vehicle sales in past periods. Reductions in available consumer credit or increased costs of that credit, could result in a decline in our vehicle sales, which would have a material adverse effect on our financial condition and results of operations.

Lenders that have historically provided financing to those buyers who, for various reasons, do not have access to traditional financing, including those buyers who have a poor credit history or lack the down payment necessary to purchase a vehicle, are often referred to as subprime lenders. If market conditions cause subprime lenders to tighten credit standards, or if interest rates increase, the ability to obtain financing from subprime lenders for these consumers to purchase vehicles could become limited, resulting in a decline in our vehicle sales, which in turn, could have a material adverse effect on our financial condition and results of operations.

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***A decline in our credit rating or a general disruption in the credit markets could negatively impact our liquidity and ability to conduct our operations.***

A deterioration of our credit rating, or a general disruption in the credit markets, could limit our ability to obtain credit on terms acceptable to us, or at all. In addition, uncertain economic conditions or the re-pricing of certain credit risks may make it more difficult for us to obtain one or more types of funding in the amounts, or at rates considered acceptable to us, at any given time. Our inability to access necessary or desirable funding, or to enter into certain related transactions, at times and at costs deemed appropriate by us, could have a negative impact on our liquidity and our ability to conduct our operations. Any of these developments could also reduce the ability or willingness of the financial institutions that have extended credit commitments to us, or that have entered into hedge or similar transactions with us, to fulfill their obligations to us, which also could have a material adverse effect on our liquidity, our ability to conduct our operations and our prospects.

***We may identify a material weakness in our internal control over financial reporting in the future or otherwise fail to maintain an effective system of internal controls, which may result in material misstatements or otherwise adversely affect the accuracy, reliability or timeliness of our financial statements.***

As described under Item 9A. "Controls and Procedures" below, we previously concluded that a material weakness in our internal control over financial reporting existed as of December 31, 2024 and, accordingly, internal control over financial reporting and our disclosure controls and procedures were not effective as of such date. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim consolidated financial statements will not be prevented or detected on a timely basis. Management identified the material weakness as a result of deficiencies in information technology general controls ("ITGCs") at a third-party software vendor who supports the DMS utilized by the Koons dealership group that we acquired in December 2023.

During 2025, we completed the remediation measures related to the material weakness and we have concluded that our internal control over financial reporting is effective as of December 31, 2025. Completion of remediation does not provide assurance that our remediation or other controls will continue to operate properly. Failure to maintain effective internal control over financial reporting may adversely affect the accuracy and reliability of our financial statements and have other consequences that may materially and adversely affect our business.

**Risks Related to Legal and Regulatory Matters**

***If state laws that protect automotive retailers are repealed, weakened, or superseded by our framework agreements with manufacturers, our dealerships will be more susceptible to termination, non-renewal, or renegotiation of their dealer agreements, which could have a material adverse effect on our business, results of operations, financial condition and cash flows.***

Applicable state laws generally provide that an automobile manufacturer may not terminate or refuse to renew a dealer agreement unless it has first provided the dealer with written notice setting forth "good cause" and stating the grounds for termination or non-renewal. Many states also limit the circumstances in which an automobile manufacturer may sell vehicles directly to consumers. Some state laws allow dealers to file protests or petitions or allow them to attempt to comply with the manufacturer's criteria within a notice period to avoid the termination or non-renewal. Our framework agreements with certain manufacturers contain provisions that, among other things, attempt to limit the protections available to dealers under these laws, and, though unsuccessful to date, manufacturers' ongoing lobbying efforts may lead to the repeal or revision of these laws. If these laws are repealed in the states in which we operate, manufacturers may be able to terminate our franchises without providing advance notice, an opportunity to cure or a showing of good cause. Without the protection of these state laws, it may also be more difficult for us to renew our dealer agreements upon expiration. Changes in laws that provide manufacturers the ability to terminate our dealer agreements could materially adversely affect our business, results of operations, financial condition and cash flows. Furthermore, if a manufacturer seeks protection from creditors in bankruptcy, courts have held that the federal bankruptcy laws may supersede the state laws that protect automotive retailers resulting in either the termination, non-renewal or rejection of franchises by such manufacturers, which, in turn, could materially adversely affect our business, result of operations, financial condition and cash flows. Market disruptors continue to push for legislation permitting direct-to-consumer sales models; if those lobbying efforts are successful, automotive manufacturers could bypass the traditional franchised dealer network, which in turn could materially adversely affect our business, results of operations, financial condition and cash flows.

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***New laws, regulations, or governmental policies in response to climate change, including fuel economy and greenhouse gas emission standards, or changes to existing standards, could adversely impact our business, results of operations, financial condition, cash flow, and prospects.***

New laws and regulations designed to address climate change concerns could affect vehicle manufacturers' ability to produce cost effective vehicles. For example, laws and regulations enacted that directly or indirectly affect vehicle manufacturers (through an increase in the cost of production or their ability to produce satisfactory products) or our business (through an impact on our inventory availability, cost of sales, operations or demand for the products we sell) could materially adversely impact our business, results of operations, financial condition, cash flow, and prospects. In addition, vehicle manufacturers are subject to government-mandated fuel economy and greenhouse gas, or GHG, emission standards, which continue to change and become more stringent over time. Significant increases in fuel economy requirements or new federal or state restrictions on emissions of carbon dioxide that may be imposed on vehicles and automobile fuels could adversely affect demand for vehicles, annual miles driven or the products we sell or lead to changes in automotive technology.

***A failure of any of our information systems or those of our third-party service providers, or a security breach with regard to personally identifiable information ("PII") about our customers or employees, or other cybersecurity incident, could have a material adverse effect on our business, results of operations, financial condition and cash flows.***

We depend on the efficient operation of our information systems and those of our third-party service providers. We rely on information systems at our dealerships in all aspects of our sales and service efforts, as well as in the preparation of our consolidated financial and operating data. Additionally, in the ordinary course of business, we and our partners receive PII about our customers in order to complete the sale or service of a vehicle and related products. We also receive PII from our employees. The regulatory environment surrounding information security and privacy is increasingly demanding, with numerous state and federal regulations, as well as payment card industry and other vendor standards, governing the collection and maintenance of PII from consumers and other individuals.

Cybersecurity incidents can result from human error or intentional (or deliberate) attacks or unintentional events by insiders (e.g., employees) or third parties, including cybercriminals, competitors, nation-states and "hacktivists," among others. Cybersecurity incidents can include, for example, phishing, credential harvesting or use of stolen access credentials, unauthorized access to systems, networks or devices (for example, through hacking activity), structured query language attacks, infection from or spread of malware, ransomware, computer viruses or other malicious software code, corruption of data, exfiltration of data to malicious sites, the dark web or other locations or threat actors, the use of fraudulent or fake websites, and other attacks (including, but not limited to, denial-of-service attacks on websites), which shut down, disable, slow, impair or otherwise disrupt operations, business processes, technology, connectivity or website or internet access, functionality or performance. In addition to intentional cybersecurity incidents, unintentional cybersecurity incidents can occur (for example, the inadvertent release of confidential or non-public personal information). Changes to our business, processes, systems, or technology, if not implemented properly, can increase our vulnerability to cybersecurity incidents.

Our business could be significantly disrupted if (i) the DMS fails to integrate with other third-party information systems, customer relations management tools or other software, or to the extent that any of these systems become unavailable to us or fail to perform as designed for an extended period of time for any reason or (ii) our relationship with our DMS providers or any other third-party provider deteriorates. Additionally, any disruption to access and connectivity of our information systems due to natural disasters, power loss or other reasons could disrupt our business operations, impact sales and results of operations, expose us to customer or third-party claims, or result in adverse publicity. In addition, we believe the automotive dealership industry is a particular target of identity thieves and other threat actors, as there are numerous opportunities for cybersecurity incidents, including cybersecurity breaches, burglary, lost or misplaced data, malware, ransomware, computer viruses or other malicious software code, corruption of data, exfiltration of data to malicious sites, the dark web or other locations or threat actors, or misappropriation of data by employees, vendors or unaffiliated third parties. Because of the increasing number and sophistication of some cybersecurity incidents and cyber-attacks, including increased artificial intelligence driven "deep fake" and social engineering, and despite the security measures we have in place and any additional measures we may implement or adopt in the future, our facilities and systems, and those of our third-party service providers and business partners, which include but are not limited to vehicle manufacturers, could be vulnerable to cybersecurity incidents, security breaches, computer viruses, lost or misplaced data, programming errors, scams, burglary, human errors, acts of vandalism and/or other events. Advances and the increased use and availability of artificial intelligence by the Company and others, including but not limited to business partners, service providers and threat actors, may make cyber incidents more difficult to identify, contain and mitigate.

While we and the business partners and service providers on which we rely have experienced cybersecurity incidents in the past, and may experience additional incidents in the future, as of the date of this Annual Report on Form 10-K, we are not aware of any incident having a material adverse effect on our business, results of operations or financial condition to date.

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However, there can be no assurance that we or the business partners and service providers on which we rely will not experience future cybersecurity incidents that may be material. Although we believe we have systems and processes in place to protect against risks associated with cybersecurity incidents in the future, depending on the nature of an incident, these protections may not be fully sufficient. In addition, because techniques used in cybersecurity attacks and incidents change frequently and may not be recognized until launched against a target, we or our business partners and service providers may be unable to anticipate these techniques or to implement adequate preventative measures. A cybersecurity incident may not be detected until well after it occurs and the severity and potential impact may not be fully known for a substantial period of time after it has been discovered. Any such alleged or actual incident can increase costs of doing business, negatively affect customer satisfaction and loyalty, expose us to negative publicity, individual claims or consumer class actions, administrative, civil or criminal investigations or actions, and infringe on proprietary information, any of which could have a material adverse effect on our business, financial condition, results of operations or cash flows.

***The failure of a key information system, the inability to successfully transition between key information systems, or our ability to successfully incorporate new technologies could have a material adverse effect on our business, results of operations, financial condition and cash flows.***

As part of our business strategy, we invest in technologies and partner with leading software platform vendors to develop applications that drive a more efficient guest experience at a lower cost to serve. A key information system is our dealer management system, which acts as a centralized platform to manage day-to-day operations, including inventory, sales, service, finance, and customer relations. The management of our day-to-day business activities could be significantly disrupted if the DMS fails or fails to integrate with other third-party information systems, customer relations management tools or other software, or to the extent that any of these systems become unavailable to us or fail to perform as designed for an extended period of time for any reason, which failure could have a material adverse effect on our business, results of operations, financial condition and cash flows.

Our dealerships currently operate on two dealer management systems. We are transitioning to a new DMS, and as of December 31, 2025 we had transitioned 38 stores from CDK, our existing DMS provider which has a fragmented "bolt-on" solution architecture, to Tekion, a cloud-based DMS with a unified solution that is expected to make it easier to enhance technology. The benefits that are expected to result from the Tekion transition will depend on our ability to transition all of our dealerships to the new DMS. Additionally, we may incur substantial expenses in connection with the Tekion transition, including without limitation paying for both dealer management systems at times, which may exceed expectations and offset certain anticipated benefits. Additionally, there is a significant degree of difficulty and management distraction inherent in the process of transitioning a key information system, and there are short-term productivity losses at the store level due to learning a new information system. There can be no assurances that the benefits and cost synergies that we expect to realize as a result of the Tekion transition will be achieved within our anticipated time frames or at all, which failure could have a material adverse effect on our business, results of operations, financial condition and cash flows.

***Our dealership operations and facilities are subject to extensive governmental laws and regulations. If we are found to be in purported violation of or subject to liabilities under any of these laws or regulations, or if new laws or regulations are enacted that adversely affect our operations, our business, results of operations, financial condition, cash flows, reputation and prospects could suffer.***

The automotive retail industry, including our facilities and operations, is subject to a wide range of federal, state, and local laws and regulations, such as those relating to motor vehicle sales, retail installment sales, leasing, finance and insurance, marketing, licensing, consumer protection, consumer privacy, escheatment, anti-money laundering, environmental, vehicle emissions and fuel economy, and health and safety. In addition, with respect to employment practices, we are subject to various laws and regulations, including complex federal, state, and local wage and hour and anti-discrimination laws. The violation of the laws or regulations to which we are subject could result in administrative, civil, or criminal sanctions against us, which may include a cease and desist order against the subject operations or even revocation or suspension of our license to operate the subject business, as well as significant fines and penalties. Violation of certain laws and regulations to which we are subject may also subject us to consumer class action or other lawsuits or governmental investigations and adverse publicity. We currently devote significant resources to comply with applicable federal, state, and local regulation of health, safety, environmental, zoning and land use regulations, and we may need to spend additional time, effort, and money to keep our operations and existing or acquired facilities in compliance therewith.

In addition, there is a risk that our employees could engage in misconduct that violates the laws or regulations to which we are subject. It is not always possible to detect or deter employee misconduct, and the precautions we take to detect and prevent this activity may not be effective in all cases. If any of our employees were to engage in misconduct or were to be accused of such misconduct, our business and reputation could be adversely affected.

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The CFPB does not have direct regulatory authority over automotive dealers but could implement additional, indirect regulation of automotive dealers, in particular, their sale and marketing of finance and insurance products, through its regulation of automotive finance companies and other financial institutions. In addition, the CFPB possesses supervisory authority with respect to certain non-bank lenders, including automotive finance companies, participating in automotive financing. The FTC may exercise its additional rule-making authority to expand consumer protection regulations relating to the sale, financing and leasing of motor vehicles.

In May 2016, we signed a consent order with the FTC to settle allegations that in certain instances our advertisements did not adequately disclose information about used vehicles with open safety recalls. Under the consent order, we did not agree to make any payments or admit wrong-doing, but we did agree to make certain disclosures in marketing materials and at the point of sale and comply with certain record-keeping obligations. Our failure to comply with the consent order may result in the imposition of significant fines and/or penalties, which could have a material adverse effect on our results of operations.

Continued pressure from the CFPB, FTC, and other federal agencies could lead to significant changes in the manner that dealers are compensated for arranging customer financing and vehicle protection products, and while it is difficult to predict how any such changes might impact us, any adverse changes could have a material adverse impact on our finance and insurance business and results of operations. Furthermore, we expect that new laws and regulations, particularly at the federal level, in other areas may be enacted, which could also materially adversely impact our business. On August 3, 2022, we received a Civil Investigative Demand ("CID") from the FTC requesting information and documents concerning the Company's corporate structure and operation of six of its dealerships. We responded to the CID by producing information and documents for the period August 1, 2019 to April 24, 2023. On February 8, 2024, the FTC staff counsel sent to us a proposed consent order and draft complaint, alleging that the Company and three of our dealerships had violated Section 5 of the Federal Trade Commission Act ("FTC Act") and certain provisions of the Equal Credit Opportunity Act in connection with the sale of add-on products (e.g., vehicle service contracts, maintenance plans, etc.), and advised that it would recommend the filing of an enforcement action if the Company did not settle the FTC's claims. The Company vigorously disputed, and continues to vigorously dispute, the FTC's allegations. As a result, on August 16, 2024, the FTC initiated an administrative proceeding by filing an enforcement action against the Company; David McDavid Honda Frisco, David McDavid Honda Irving, and David McDavid Ford Fort Worth, three of the Company's dealerships; and an individual general manager at one of the dealerships pursuant to the allegations set forth above. On October 4, 2024, the Company filed a lawsuit against the FTC in the United States District Court for the Northern District of Texas, seeking to enjoin the FTC's administrative proceeding on the ground that the administrative proceeding was unconstitutional. Among other things, the Company's lawsuit asserts that the FTC's administrative proceeding violates the Company's constitutional rights by denying it the right to a jury trial and by allowing the FTC to serve as both prosecutor and judge in the same proceeding. The Company's lawsuit also contends that FTC commissioners and in-house administrative law judges are effectively insulated from removal by the President in contravention of the Constitution's requirements. The FTC's administrative proceeding and the Company's lawsuit remain pending. We are unable to reasonably predict the possible outcome of the Company's dispute with the FTC at this time, or provide a reasonably possible range of loss, if any. There can be no assurance that the Company will succeed in either the FTC's administrative proceeding against the Company or in the Company's lawsuit against the FTC, and the FTC's allegations, whether meritorious or not, may adversely affect our ability to attract customers, result in the loss of existing customers, harm our reputation and cause us to incur defense costs and other expenses.

Environmental laws and regulations govern, among other things, discharges into the air and water, storage of petroleum substances and chemicals, the handling and disposal of solid and hazardous wastes, investigation and remediation of contamination. Similar to many of our competitors, we have incurred and expect to continue to incur capital and operating expenditures and other costs to comply with such federal and state laws and regulations. In addition, we may become subject to broad liabilities arising out of contamination at our currently and formerly owned or operated facilities, at locations to which hazardous substances were transported from such facilities, and at such locations related to entities formerly affiliated with us. Liability under these laws and regulations can be imposed on a joint and several basis and without regard to fault. For such potential liabilities, we believe we are entitled to indemnification from other entities. However, we cannot provide assurance that such entities will view their obligations as we do or will be able or willing to satisfy them. We may have indemnity obligations for liabilities relating to contamination at our currently or formerly owned and/or operated facilities as part of the acquisition or divestiture of certain properties in the ordinary course of business. Failure to comply with applicable laws and regulations, or significant additional expenditures required to maintain compliance therewith, could have a material adverse effect on our business, results of operations, financial condition or cash flows.

A significant judgment against us or the imposition of a significant fine could have a material adverse effect on our business, financial condition and future prospects. We further expect that, from time to time, new laws and regulations, particularly in the environmental area, will be enacted, and compliance with such laws, or penalties for failure to comply, could significantly increase our costs. For example, vehicle manufacturers are subject to government-mandated fuel economy and greenhouse gas emission standards, which continue to change and become more stringent over time. Failure of a manufacturer

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to develop passenger vehicles and light trucks that meet these and other government standards could subject the manufacturer to substantial penalties, increase the cost of vehicles sold to us, and adversely affect our ability to market and sell vehicles to meet consumer needs and desires, which could have a material adverse effect on our business, results of operations, financial condition or cash flows.

***Our TCA business is subject to a wide range of federal, state, and local laws and regulations, some of which we may not have previously been subject. If we are found to be in purported violation of or subject to liabilities under any of these laws or regulations, or if new laws or regulations are enacted that adversely affect our TCA business, our business, results of operations, financial condition, cash flows, reputation and prospects could suffer.***

The TCA business is, and will continue to be, subject to a wide range of federal, state, and local laws and regulations, some of which Asbury may not have been previously subject. Such laws and regulations include but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• state and local licensing requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• federal and state laws regulating vehicle finance and insurance products; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• federal and state consumer protection laws.

No assurance can be given that applicable statutes, regulations, and other laws will not be amended or construed differently, that new laws will not be adopted, or that any of these laws will not be enforced more aggressively. For example, changes in the regulatory and supervisory environments could adversely affect the TCA business in substantial and unpredictable ways. Further, the TCA business' noncompliance with applicable laws (whether as a result of changes in interpretation or enforcement, system or human errors, or otherwise) could result in the suspension or revocation of licenses or registrations necessary to the operation, or the initiation of enforcement actions or private litigation.

In addition, we are required to set aside an amount of restricted cash sufficient to satisfy potential claims associated with the TCA business. While we are permitted to invest such cash in fixed income and equity securities, and other investments, we cannot provide any assurance that a loss in such investments would not have a material adverse effect on our ability to honor customers' claims, which could have a material adverse effect on our business.

***We are subject to risks related to the provision of employee health care benefits, which could have a material adverse effect on our business, results of operations, financial condition and cash flows.***

We use a combination of insurance and self-insurance for health care plans. We record expenses under those plans based on estimates of the costs of expected claims, administrative costs, stop-loss insurance premiums, and expected health care trends. Actual costs under these plans are subject to variability that is dependent upon participant enrollment, demographics and the actual costs of claims made. Negative trends in any of these areas could cause us to incur additional unplanned health care costs, which could adversely impact our business, financial condition, results of operations and cash flows. In addition, if enrollment in our health care plans increases significantly, the additional costs that we will incur may be significant enough to materially affect our business, financial condition, results of operations and cash flows.

***We are, and expect to continue to be, subject to legal and administrative proceedings, which, if the outcomes are adverse to us, could have a material adverse effect on our business, results of operations, financial condition, cash flows, reputation and prospects.***

We are involved and expect to continue to be involved in numerous legal proceedings arising out of the conduct of our business, including litigation with customers, employment-related lawsuits, class actions, purported class actions, and actions brought by governmental authorities. We do not believe that the ultimate resolution of any known matters will have a material adverse effect on our business, reputation, financial condition, results of operations, cash flows or prospects. However, the results of these matters cannot be predicted with certainty, and an unfavorable resolution of one or more of these matters could have a material adverse effect on our business, financial condition, results of operations and cash flows.

***We are subject to risks associated with imported product restrictions or limitations, foreign trade and currency valuations.***

Our business involves the sale of vehicles, parts or vehicles composed of parts that are manufactured outside of the United States. As a result, our operations are subject to risks of doing business outside of the United States and importing merchandise, including import duties, exchange rates, trade restrictions, work stoppages, natural or man-made disasters, and general political and socio-economic conditions in other countries. The United States or the countries from which our products are imported may, from time to time, impose new quotas, duties, tariffs or other restrictions or limitations, or adjust presently prevailing quotas, duties or tariffs, including recently proclaimed and possible future tariffs. The imposition of new, or adjustments to

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prevailing, quotas, duties, tariffs or other restrictions or limitations could have a material adverse effect on our business, financial condition, results of operations and cash flows. Relative weakness of the U.S. dollar against foreign currencies in the future may result in an increase in costs to us and in the retail price of such vehicles or parts, which could discourage consumers from purchasing such vehicles and adversely impact our revenues and profitability.

**Item 1B. Unresolved Staff Comments**

None.

**Item 1C. Cybersecurity**

**Overview**

We have processes in place designed to protect our information systems, data, assets, infrastructure, and computing environments from cybersecurity threats and risks while maintaining confidentiality, integrity, and availability. Our cybersecurity risk management processes are integrated into our enterprise risk management program.

***Training***

We conduct regular training for cybersecurity awareness of our employees, senior executives, and certain other vendors or personnel. We also perform phishing and social engineering simulations and provide cybersecurity training for personnel with Company email and access to Company assets. We disseminate security awareness communications to certain employees to highlight emerging or urgent cybersecurity threats.

Asbury's information and data security training programs are housed in a Learning Management System ("LMS"). We migrate our acquired companies into Asbury's current LMS.

***Governance***

Our Chief Information Officer ("CIO") oversees cybersecurity, data privacy and manages Asbury's information and security procedures. Asbury also has a Director of Cybersecurity, as well as a formal team of analysts.

Our Board of Directors maintains ultimate oversight of the Company's enterprise risk management program, which includes material cybersecurity risks. Under the oversight of the audit committee and capital allocation and risk management committee of the Company's Board of Directors, and as directed by the Company's Chief Executive Officer, our CIO is responsible for the assessment and management of material cybersecurity risks. Our CIO oversees the Company's cybersecurity incident response plan and related processes that are designed to assess and manage material risks from cybersecurity threats. The CIO also coordinates with the Company's legal counsel and third parties, such as consultants and legal advisors, to assess and manage material risks from cybersecurity threats. Our CIO is informed about and monitors the prevention, detection, mitigation, and remediation of cybersecurity incidents pursuant to criteria set forth in the Company's data incident response plan and related processes.

The capital allocation and risk management committee of the Company's Board of Directors assists the Board in the periodic review and evaluation of the Company's risk profile and related risk management processes which identify and manage the Company's key financial, strategic and operational risks. The audit committee of the Company's Board of Directors oversees, among other things, the adequacy and effectiveness of the Company's internal controls, including internal controls designed to assess, identify, and manage material risks from cybersecurity threats. The audit committee is informed of material risks from cybersecurity threats pursuant to the escalation criteria set forth in the Company's disclosure controls and procedures. Further, our CIO reports on cybersecurity matters, including material risks and threats, to the Company's audit committee on a quarterly basis, and the audit committee provides updates to the Company's Board of Directors at regular board meetings. In addition, the audit committee and capital allocation and risk management committee hold a joint meeting annually during which the CIO provides a comprehensive update regarding the assessment and management of material cybersecurity risks. Our CIO also provides ad hoc updates as appropriate to the Company's Board of Directors.

***Risk Management***

We have processes for assessing, identifying, and managing material risks from cybersecurity threats. These processes are integrated into the Company's overall risk management systems. These processes also include overseeing and identifying risks from cybersecurity threats associated with the use of third-party service providers. The Company conducts security assessments of certain third-party providers before engagement and has established monitoring procedures in its effort to mitigate risks related to data breaches or other security incidents originating from third parties. The Company from time to time engages

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third-party consultants, legal advisors, and audit firms in evaluating and testing the Company's risk management systems and assessing and remediating certain potential cybersecurity incidents as appropriate.

***Management***

In an effort to effectively prevent, detect, and respond to cybersecurity threats, we employ a multi-layered cybersecurity risk management program supervised by our CIO, whose team is responsible for leading enterprise-wide cybersecurity strategy, policy, architecture, and processes. This responsibility includes identifying, considering, and assessing potentially material cybersecurity incidents on an ongoing basis, establishing processes designed to prevent and monitor potential cybersecurity risks, implementing mitigation and remedial measures, and maintaining our cybersecurity program. To do so, our program leverages both internal and external techniques and expertise. Internally, among other things, we perform two penetration tests per year, internal tests/code reviews, and simulations using cybersecurity professionals to assess vulnerabilities in our information systems and evaluate our cyber defense capabilities. Our cybersecurity capabilities, processes, and other security measures also include, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Service Organization Controls ("SOC")-as-a-Service (SOCaas) wherein a third-party vendor operates and maintains a fully managed SOC on a subscription basis via the cloud;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Security Information and Event Management ("SIEM") software, which provides a threat detection, compliance, and security incident management system;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Endpoint Detection and Response ("EDR") software, which monitors for malicious activities on internal endpoints (e.g., Windows workstations, servers, MAC clients, and Linux endpoints);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cloud monitoring; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disaster recovery and incident response plans, including a ransomware response plan.

Although we believe we have systems and processes in place to protect against risks associated with cybersecurity incidents in the future, depending on the nature of an incident, these protections may not be fully sufficient. We, as well as the business partners or services providers on which we rely, have experienced cybersecurity incidents in the past that have resulted in disruptions, technology failures, or unauthorized people gaining access to certain information systems, and we could in the future experience similar incidents. As of the date of this Form 10-K, no cybersecurity incident, or any risk from cybersecurity threat, has materially affected or has been determined to be reasonably likely to materially affect the Company, our business strategy, results of operations, or financial condition. For further discussion of the risks associated with cybersecurity incidents, see "A failure of any of our information systems or those of our third-party service providers, or a data security breach with regard to personally identifiable information ("PII") about our customers or employees, could have a material adverse effect on our business, results of operations, financial condition and cash flows." beginning on page 28 of the section entitled "Item 1A. Risk Factors" in this Form 10-K.

**Item 2. Properties**

We own our corporate headquarters, which is located at 6655 Peachtree Dunwoody Road, Atlanta, Georgia 30328. We also have a corporate office in Texas. The operations of our TCA business are located in leased office space in Utah. We believe that our facilities are in good condition and meet our current business needs.

As of December 31, 2025, our operations encompassed 171 franchised dealership locations, 39 collision repair centers, throughout 15 states as follows:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Dealerships** | **Dealerships** | | **Collision Repair Centers** | **Collision Repair Centers** |
|<br>**Dealership Group Brand Name:** | **Owned** | **Leased** | | **Owned** | **Leased** |
| Coggin Automotive Group | 12 | 4 | (a) | 5 | 2 |
| Courtesy Autogroup | 6 | 2 |  | 2 |  |
| Crown Automotive Company | 3 | 2 | (b) |  |  |
| David McDavid Auto Group | 4 |  |  | 2 |  |
| Greenville Automotive Group | 3 |  |  | 1 |  |
| Hare, Bill Estes & Kahlo Automotive Groups | 7 |  |  | 1 |  |
| Herb Chambers Dealerships | 28 | 5 |  | 3 |  |
| Koons Automotive Group | 16 | 2 |  | 5 | 1 |
| Larry H. Miller Dealerships | 32 | 4 |  | 6 | 2 |
| Mike Shaw, Stevinson & Arapahoe Automotive Groups | 7 | 4 |  |  |  |
| Nalley Automotive Group | 14 | 1 |  | 4 | 1 |
| Park Place Automotive | 5 | 4 | (c) | 2 | 1 |
| Plaza Motor Company | 5 | 1 | (b) |  | 1 |
| Total | 142 | 29 |  | 31 | 8 |

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______________________________________

(a)Includes one dealership that leases a new vehicle facility and operates a separate used vehicle facility that is owned.

(b)Includes one dealership location where we lease the underlying land but own the building facilities on that land.

(c)Includes two dealership locations where we lease the underlying land but own the building facilities on that land.

**Item 3. Legal Proceedings**

From time to time, we and our dealerships are involved and will continue to be involved in various claims relating to, and arising out of, our business and our operations. These claims may involve, but are not limited to, financial and other audits by vehicle manufacturers or lenders, and certain federal, state, and local government authorities, which relate primarily to (i) incentive and warranty payments received from vehicle manufacturers, or allegations of violations of manufacturer agreements or policies, (ii) compliance with lender rules and covenants and (iii) payments made to government authorities relating to federal, state, and local taxes, as well as compliance with other government regulations. Claims may also arise through litigation, government proceedings, and other dispute resolution processes. Such claims, including class actions, can relate to, but are not limited to, the practice of charging administrative fees, employment-related matters, truth-in-lending practices, contractual disputes, actions brought by governmental authorities, and other matters. We evaluate pending and threatened claims and establish loss contingency reserves based upon outcomes we currently believe to be probable and reasonably estimable. We do not believe that the ultimate resolution of the claims we are involved in will have a material adverse effect on our business, results of operations, financial condition, cash flow and prospects.

On August 3, 2022, we received a Civil Investigative Demand ("CID") from the Federal Trade Commission (the "FTC") requesting information and documents concerning the Company's corporate structure and operation of six of its dealerships. We responded to the CID by producing information and documents for the period August 1, 2019 to April 24, 2023. On February 8, 2024, the FTC staff counsel sent to us a proposed consent order and draft complaint, alleging that the Company and three of our dealerships had violated Section 5 of the Federal Trade Commission Act ("FTC Act") and certain provisions of the Equal Credit Opportunity Act in connection with the sale of add-on products (e.g., vehicle service contracts, maintenance plans, etc.), and advising that it would recommend the filing of an enforcement action if the Company did not settle the FTC's claims. The Company vigorously disputed, and continues to vigorously dispute, the FTC's allegations. As a result, on August 16, 2024, the FTC initiated an administrative proceeding by filing an enforcement action against the Company; David McDavid Honda Frisco, David McDavid Honda Irving, and David McDavid Ford Fort Worth, three of the Company's dealerships; and an individual general manager at one of the dealerships pursuant to the allegations set forth above. On October 4, 2024, the Company filed a lawsuit against the FTC in the United States District Court for the Northern District of Texas, seeking to enjoin the FTC's administrative proceeding on the ground that the administrative proceeding was unconstitutional. Among other things, the Company's lawsuit asserts that the FTC's administrative proceeding violates the Company's constitutional rights by denying it the right to a jury trial and by allowing the FTC to serve as both prosecutor and judge in the same proceeding. The Company's lawsuit also contends that FTC commissioners and in-house administrative law judges are effectively insulated from removal by the President in contravention of the Constitution's requirements. The FTC's administrative proceeding and the Company's lawsuit remain pending. We are unable to reasonably predict the possible outcome of the Company's dispute with the FTC at this time, or provide a reasonably possible range of loss, if any. There can

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be no assurance that the Company will succeed in either the FTC's administrative proceeding against the Company or in the Company's lawsuit against the FTC, and the FTC's allegations, whether meritorious or not, may adversely affect our ability to attract customers, result in the loss of existing customers, harm our reputation and cause us to incur defense costs and other expenses.

**Item 4. Mine Safety Disclosures**

Not applicable.

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**PART II**

**Item 5. &nbsp;&nbsp;&nbsp;&nbsp;Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities**

Our common stock is traded on the New York Stock Exchange (the "NYSE") under the symbol "ABG."

We have not paid any dividends since 2008. On February 18, 2026, the last reported sale price of our common stock on the NYSE was $229.78 per share, and there were approximately 506 record holders of our common stock.

Our credit agreement with Bank of America, N.A. ("Bank of America"), as administrative agent, and the other agents and lenders party thereto (the "2023 Senior Credit Facility") and the Indentures governing the Senior Notes (as defined below) (collectively, the "Indentures") currently allow for us to make certain restricted payments, including payments to repurchase shares of our common stock, among other things, subject to our continued compliance with certain covenants. For additional information, see the "Covenants and Defaults" section within "Liquidity and Capital Resources."

**Issuer Purchases of Equity Securities**

Share repurchases are implemented through purchases made from time to time in either the open market or private transactions. The share repurchases could include purchases pursuant to a written trading plan in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, which allows companies to repurchase shares of stock at times when they might otherwise be prevented from doing so by securities laws or under self-imposed trading blackout periods. The extent that the Company repurchases its shares, the number of shares and the timing of any repurchases will depend on general market conditions, legal requirements and other corporate considerations. The repurchase program may be modified, suspended or terminated at any time without prior notice.

Information about the shares of our common stock that we repurchased during the quarter ended December 31, 2025 is set forth below:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Period** | **Total Number of Shares (or Units) Purchased** | **Average Price Paid per Share (or Unit)** | **Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs** | **Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (In millions)** |
| 10/01/2025 - 10/31/2025 | 92917 | $238.77 | 92917 | $203.7 |
| 11/01/2025 - 11/30/2025 | 119341 | $233.04 | 119248 | $175.9 |
| 12/01/2025 - 12/31/2025 | 50 | $226.92 |  | $175.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 212308 |  | 212165 |  |

---

On May 15, 2024, the Company announced that its Board of Directors approved an increase of $256.2 million in the Company's common share repurchase authorization to $400.0 million (the "New Share Repurchase Authorization"), for the repurchase of our common stock in open market transactions or privately negotiated transactions or in other manners as permitted by federal securities laws and other legal and contractual requirements.

As of December 31, 2025, we had remaining authorization to repurchase up to an additional $175.9 million of our common stock. Any repurchases will be subject to applicable limitations in our debt or other financing agreements that may be in existence from time to time.

The extent to which the Company repurchases its shares, the number of shares and the timing of any repurchase will depend on such factors as Asbury's stock price, general economic and market conditions, the potential impact on its capital structure, the expected return on competing uses of capital such as strategic dealership acquisitions and capital investments and other considerations. The program does not require the Company to repurchase any specific number of shares, and may be modified, suspended or terminated at any time without further notice.

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**PERFORMANCE GRAPH**

The following graph furnished by us shows the value as of December 31, 2025, of a $100 investment in our common stock made on December 31, 2020, as compared with similar investments based on (i) the value of the S&P 500 Index (with dividends reinvested) and (ii) the value of a market-weighted Peer Group Index composed of the common stock of AutoNation, Inc.; Sonic Automotive, Inc.; Group 1 Automotive, Inc.; Penske Automotive Group, Inc.; and Lithia Motors, Inc., in each case on a "total return" basis assuming the reinvestment of any dividends. The market-weighted Peer Group Index values were calculated from the beginning of the performance period. The historical stock performance shown below is not necessarily indicative of future expected performance.

The foregoing graph is not, and shall not be deemed to be, filed as part of our annual report on Form 10-K. Such graph is not, and will not be deemed, filed or incorporated by reference into any filing by us under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent specifically incorporated by reference therein by us.

![TSR Graph.jpg](abg-20251231_g2.jpg)

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**Item 6. Reserved**

**Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations**

This MD&A should be read in conjunction with the accompanying audited consolidated financial statements and notes. Forward-looking statements in this MD&A are not guarantees of future performance and may involve risks and uncertainties that could cause actual results to differ materially from those projected. Refer to the "Forward-Looking Statements" and Part I, Item 1A. Risk Factors for a discussion of these risks and uncertainties. An analysis of our consolidated results of operations for 2024 and 2023 and year-to-year comparisons between 2024 and 2023 can be found in MD&A in Part II, Item 7 of the Company's Form 10-K for the year ended December 31, 2024.

**OVERVIEW**

Our Dealerships segment revenues are derived primarily from: (i) the sale of new vehicles; (ii) the sale of used vehicles to individual retail customers ("used retail") and to other dealers at auction ("wholesale") (the terms "used retail" and "wholesale" are collectively referred to as "used"); (iii) repair and maintenance services, collision repair, the sale of automotive replacement parts, and the reconditioning of used vehicles (collectively referred to as "parts and service"); and (iv) the arrangement of third-party vehicle financing and the sale of a number of vehicle protection products. F&I products are offered by dealerships to customers in connection with the purchase of vehicles through either TCA or independent third parties. We evaluate the results of our new and used vehicle sales based on unit volumes and gross profit per vehicle sold, our parts and service operations based on aggregate gross profit, and our F&I business based on F&I gross profit per vehicle sold. Amounts presented have been calculated using non-rounded amounts for all periods presented and therefore certain amounts may not compute due to rounding.

Our Dealerships segment gross profit margin varies with our revenue mix. Historically, the sales of new vehicles generally results in a lower gross profit margin than used vehicle sales, sales of parts and service, and sales of F&I products. As a result, when used vehicle, parts and service, and F&I revenue increase as a percentage of total revenue, we expect our overall gross profit margin to increase. However, during and after the COVID-pandemic, new vehicle gross profit margins have been above historical levels and higher than used vehicle gross margins as a result of inventory disruptions from supply chain issues.

Our TCA segment revenues, reflected in F&I revenue, net, are derived from the sale of various vehicle protection products including vehicle service contracts, GAP, prepaid maintenance contracts, and appearance protection contracts. These products are sold through company-owned dealerships. TCA's F&I revenues also include investment gains or losses and income earned associated with the performance of TCA's investment portfolio.

Our TCA segment gross profit margin can vary due to incurred claims expense and the performance of our investment portfolio. Certain F&I products may result in higher gross profit margins to TCA. Therefore, the product mix of F&I products sold by TCA can affect the gross profits earned. In addition, interest rate volatility based on economic and market conditions outside the control of the Company, may increase or reduce TCA segment gross profit margins as well as the fair market values of certain securities within our investment portfolio. Fair market values typically fluctuate inversely to the fluctuations in interest rates.

Selling, general and administrative ("SG&A") expenses consist primarily of fixed and incentive-based compensation, advertising, rent, insurance, utilities, and other customary operating expenses. A significant portion of our cost structure is variable (such as sales commissions) or controllable (such as advertising), which we believe allows us to adapt to changes in the retail environment over the long-term. We evaluate commissions paid to salespeople as a percentage of retail vehicle gross profit, advertising expense on a per vehicle retailed ("PVR") basis, and all other SG&A expenses in the aggregate as a percentage of total gross profit. Commissions expense paid by TCA to our affiliated dealerships and reflected as F&I revenue in our Dealerships segment is eliminated in the consolidated financial statements.

Our continued organic growth is dependent upon the execution of our balanced automotive retailing and service business strategy, the continued strength of our brand mix, and the production and allocation of desirable vehicles from the automobile

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manufacturers whose brands we sell. Our vehicle sales have historically fluctuated with product availability as well as local and national economic conditions, including consumer confidence, availability of consumer credit, fuel prices, and employment levels.

In addition, our ability to sell certain new and used vehicles can be negatively impacted by a number of factors, some of which are outside of our control. Certain manufacturers continue to be hampered by the lack of availability of parts and key components from suppliers which has impacted new vehicle inventory levels and availability of certain parts. We cannot predict with any certainty how long the automotive retail industry will continue to be subject to these production slowdowns or when normalized production will resume at these manufacturers.

**Recent Events**

*Herb Chambers acquisition*

On July 21, 2025, the Company completed the Herb Chambers acquisition, thereby acquiring substantially all of the assets including the real property related thereto, for a total purchase price of approximately $1.76 billion. The acquisition was financed by borrowings under our new vehicle floor plan and used vehicle floor plan facilities, revolving credit facility and borrowings under a real estate facility. The Herb Chambers acquisition comprised 33 dealerships and three collision centers.

*Macroeconomic and geopolitical considerations*

The demand and availability for and pricing of our products and services may be adversely impacted by economic conditions and financial developments, including increasing interest rates, rising inflation, high energy prices, a potential recessionary environment and other factors. The automotive retail industry is influenced by general economic conditions, particularly consumer confidence and consumer spending, interest rates, fuel prices, exchange rates, technology and business model changes, supply conditions, consumer transportation preferences, credit availability, and the unemployment rate. Consumer spending can be materially and adversely impacted by periods of economic uncertainty or by consumer concern regarding manufacturer viability. In addition, local economic, competitive and other conditions affect the performance of our dealerships. Our results of operations depend substantially on general economic conditions and consumer spending in those regions where we maintain operations.

*Tariffs and trade risks*

A significant portion of our business involves the sale of vehicles, parts, or vehicles composed of, or maintenance and repair services including, parts that are manufactured outside the U.S. Changes or increases in tariffs, trade restrictions, fluctuations in foreign currency exchange rates, the negotiation of new trade agreements, non-tariff trade barriers, local content requirements, uncertainty surrounding global trade policies, and the imposition of new or retaliatory tariffs against certain countries or covering certain products, including vehicles and parts, may affect our competitive position and impair our ability to sell and service vehicles and parts, and have a material adverse effect on our results of operations.

In late January 2025, the U.S. government commenced a broad review of U.S. trade relations, following which it began issuing numerous executive orders and other public policy statements imposing or threatening to impose tariffs on certain countries, materials, and industries, including the automotive industry. Such tariffs include a 25% tariff on imports of automobiles and certain automobile parts, with different rates for some countries as a result of respective trade deals. In response, certain impacted countries have imposed or threatened various corresponding retaliatory tariffs and other actions. If maintained, these and other newly announced tariffs and actions and the potential escalation of trade disputes are expected to affect the automotive industry generally, including manufacturers, distributors and retailers of vehicles, parts and supplies. The extent of the tariffs and the resulting impact on general economic conditions and on our business are uncertain and depend on various factors, such as negotiations between the U.S. and affected countries, the duration of such tariffs, the responses of other countries or regions to such tariffs, the actual increases in the costs of vehicles, products and raw materials, and exemptions or exclusions that may be granted. Should tariffs increase and be sustained, our inventory acquisition and carrying costs, and the production costs for many of our manufacturer, distributor and supplier partners, may be increased, which costs may be passed on to us and consumers through higher prices for many new vehicles and certain parts we sell. These increased prices may adversely affect our new vehicle sales and related finance and insurance sales and may adversely impact demand for such vehicles and parts, and could materially and adversely affect the results of our operations.

See "Item 1A. Risk Factors" in Part I of this report for additional information about risks and uncertainties facing our Company.

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

**Financial Highlights**

Highlights related to our financial condition and results of operations include the following:

&nbsp;&nbsp;&nbsp;&nbsp;• Consolidated revenue for the year ended December 31, 2025 increased to $18.00 billion, compared to $17.19 billion for the prior year.

&nbsp;&nbsp;&nbsp;&nbsp;• Consolidated gross profit for the year ended December 31, 2025 increased to $3.07 billion, compared to $2.95 billion for the prior year.

&nbsp;&nbsp;&nbsp;&nbsp;• The increase in consolidated revenue and consolidated gross profit was primarily due to the effects of the Herb Chambers acquisition and growth in parts and services gross profit. This increase was offset by lower gross profit per vehicle sold for new vehicles as margins continue to shift downward from the historic highs in recent years.

&nbsp;&nbsp;&nbsp;&nbsp;• The effects of dealership divestitures also impacted consolidated revenue and gross profit. During the year ended December 31, 2025, we divested 24 franchises (15 dealership locations). These divested dealerships contributed approximately $436.3 million of revenue during the year ended December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;• Our capital allocation priorities were supported by share repurchases of approximately 432,752 shares for $99.9 million during the year ended December 31, 2025.

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**CONSOLIDATED RESULTS OF OPERATIONS**

We assess the organic growth of our revenue and gross profit on a same store basis. We believe that our assessment on a same store basis represents an important indicator of comparative financial performance and provides relevant information to assess our performance. As such, for the following discussion, same store amounts consist of information from dealerships for identical months in each comparative period, commencing with the first full month we owned the dealership. Additionally, amounts related to divested dealerships are excluded from each comparative period for same store reporting.

The Company's full year results for 2025 include the results of the Herb Chambers dealerships acquired in July 2025. Accordingly, the increases in revenue, gross profit and income from operations for 2025 compared to 2024 are largely a result of this acquisition.

**The Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **Increase<br>(Decrease)** | **%<br>Change** |
| | **2025** | **2024** | **Increase<br>(Decrease)** | **%<br>Change** |
| | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** | **(Dollars in millions, except per share data)** |
| REVENUE: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New vehicle | $9496.2 | $8849.7 | $646.5 | 7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Used vehicle | 5225.4 | 5218.2 | 7.2 | NM |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parts and service | 2506.8 | 2354.7 | 152.1 | 6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance and insurance, net | 770.6 | 766.0 | 4.6 | 1% |
| TOTAL REVENUE | 17999.0 | 17188.6 | 810.4 | 5% |
| GROSS PROFIT: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New vehicle | 621.9 | 640.4 | (18.4) | (3)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Used vehicle | 259.1 | 245.4 | 13.6 | 6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parts and service | 1472.5 | 1351.2 | 121.3 | 9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance and insurance, net | 718.1 | 711.6 | 6.5 | 1% |
| TOTAL GROSS PROFIT | 3071.7 | 2948.6 | 123.0 | 4% |
| OPERATING EXPENSES: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative | 1987.6 | 1888.5 | 99.0 | 5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 82.4 | 75.0 | 7.4 | 10% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset impairments | 141.0 | 149.5 | (8.5) | (6)% |
| INCOME FROM OPERATIONS | 860.6 | 835.6 | 25.0 | 3% |
| OTHER (INCOME) EXPENSES: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Floor plan interest expense | 91.2 | 89.9 | 1.3 | 1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other interest expense, net | 187.5 | 179.1 | 8.3 | 5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on dealership divestitures, net | (80.2) | (8.6) | (71.6) | NM |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expenses, net | 198.4 | 260.3 | (61.9) | (24)% |
| INCOME BEFORE INCOME TAXES | 662.2 | 575.3 | 86.9 | 15% |
| Income tax expense | 170.2 | 145.0 | 25.3 | 17% |
| NET INCOME | $492.0 | $430.3 | $61.6 | 14% |
| Net income per common share—Diluted | $25.13 | $21.50 | $3.63 | 17% |

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______________________________

NM**—**Not Meaningful

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

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| | | |
|:---|:---|:---|
| | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
| | **2025** | **2024** |
| REVENUE MIX PERCENTAGES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New vehicles | 52.8% | 51.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Used retail vehicles | 25.3% | 26.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Used vehicle wholesale | 3.8% | 3.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parts and service | 13.9% | 13.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance and insurance, net | 4.3% | 4.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 100.0% | 100.0% |
| GROSS PROFIT MIX PERCENTAGES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New vehicles | 20.2% | 21.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Used retail vehicles | 7.8% | 7.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Used vehicle wholesale | 0.6% | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parts and service | 47.9% | 45.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance and insurance, net | 23.4% | 24.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross profit | 100.0% | 100.0% |
| GROSS PROFIT MARGIN | 17.1% | 17.2% |
| SG&A EXPENSES AS A PERCENTAGE OF GROSS PROFIT | 64.7% | 64.0% |

---

Total revenue during 2025 increased by $810.4 million (5%) compared to 2024, due to a $646.5 million (7%) increase in new vehicle revenue, a $152.1 million (6%) increase in parts and service revenue, a $7.2 million increase in used vehicle revenue and a $4.6 million (1%) increase in F&I revenue.

The $123.0 million (4%) increase in gross profit during 2025 was the result of a $121.3 million (9%) increase in parts and service gross profit, a $13.6 million (6%) increase in used vehicle gross profit and a $6.5 million (1%) increase in F&I gross profit, partially offset by an $18.4 million (3%) decrease in new vehicle gross profit. Our total gross profit margin decreased 9 basis points from 17.2% in 2024 to 17.1% in 2025.

Income from operations during 2025 increased by $25.0 million (3%) compared to 2024, primarily due to a $123.0 million (4%) increase in gross profit and an $8.5 million (6%) decrease in asset impairments, partially offset by a $99.0 million (5%) increase in selling, general and administrative expenses and an $8.5 million (6%) increase in depreciation and amortization expense.

Total other expenses, net decreased by $61.9 million (24%) from expenses of $260.3 million in 2024 to $198.4 million of expenses in 2025, primarily due to a $71.6 million (828%) increase in gain on dealership divestitures, net, partially offset by an $8.3 million (5%) increase in other interest expense, net and a $1.3 million (1%) increase in floor plan interest expense. As a result, income before income taxes increased by $86.9 million (15%) to $662.2 million in 2025. The $25.3 million (17%) increase in income tax expense was primarily attributable to the 15% increase in income before taxes, and a 50 basis point increase in the 2025 effective tax rate. Overall, net income increased by $61.6 million (14%) from $430.3 million in 2024 to $492.0 million in 2025.

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

*New Vehicle—*

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **Increase<br>(Decrease)** | **%<br>Change** |
| | **2025** | **2024** | **Increase<br>(Decrease)** | **%<br>Change** |
| | **(Dollars in millions, except for per vehicle data)** | **(Dollars in millions, except for per vehicle data)** | **(Dollars in millions, except for per vehicle data)** | **(Dollars in millions, except for per vehicle data)** |
| **As Reported:** |  |  |  |  |
| Revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Luxury | $3041.5 | $2654.8 | $386.8 | 15% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Import | 3800.6 | 3623.5 | 177.2 | 5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Domestic | 2654.0 | 2571.5 | 82.5 | 3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total new vehicle revenue | $9496.2 | $8849.7 | $646.5 | 7% |
| Gross profit: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Luxury | $278.1 | $258.5 | $19.7 | 8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Import | 215.8 | 237.3 | (21.5) | (9)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Domestic | 128.0 | 144.6 | (16.6) | (11)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total new vehicle gross profit | $621.9 | $640.4 | $(18.4) | (3)% |
| New vehicle units: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Luxury | 40818 | 36827 | 3991 | 11% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Import | 93726 | 91243 | 2483 | 3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Domestic | 46660 | 45148 | 1512 | 3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total new vehicle units | 181204 | 173218 | 7986 | 5% |
| **Same Store:** |  |  |  |  |
| Revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Luxury | $2587.4 | $2539.1 | $48.2 | 2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Import | 3583.6 | 3378.8 | 204.9 | 6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Domestic | 2465.2 | 2402.3 | 62.9 | 3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total new vehicle revenue | $8636.1 | $8320.1 | $316.0 | 4% |
| Gross profit: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Luxury | $239.5 | $246.4 | $(6.9) | (3)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Import | 200.5 | 223.3 | (22.8) | (10)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Domestic | 116.8 | 136.1 | (19.3) | (14)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total new vehicle gross profit | $556.8 | $605.8 | $(49.0) | (8)% |
| New vehicle units: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Luxury | 34845 | 34990 | (145) | NM |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Import | 88404 | 85178 | 3226 | 4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Domestic | 43376 | 42065 | 1311 | 3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total new vehicle units | 166625 | 162233 | 4392 | 3% |

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

*New Vehicle Metrics—*

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **Increase<br>(Decrease)** | **%<br>Change** |
| | **2025** | **2024** | **Increase<br>(Decrease)** | **%<br>Change** |
| **As Reported:** |  |  |  |  |
| Revenue per new vehicle sold | $52406 | $51090 | $1316 | 3% |
| Gross profit per new vehicle sold | $3432 | $3697 | $(265) | (7)% |
| New vehicle gross margin | 6.5% | 7.2% | (0.7)% |  |
| Luxury: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit per new vehicle sold | $6814 | $7018 | $(204) | (3)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New vehicle gross margin | 9.1% | 9.7% | (0.6)% |  |
| Import: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit per new vehicle sold | $2302 | $2601 | $(298) | (11)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New vehicle gross margin | 5.7% | 6.5% | (0.9)% |  |
| Domestic: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit per new vehicle sold | $2743 | $3203 | $(460) | (14)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New vehicle gross margin | 4.8% | 5.6% | (0.8)% |  |
| **Same Store:** |  |  |  |  |
| Revenue per new vehicle sold | $51830 | $51285 | $545 | 1% |
| Gross profit per new vehicle sold | $3342 | $3734 | $(393) | (11)% |
| New vehicle gross margin | 6.4% | 7.3% | (0.8)% |  |
| Luxury: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit per new vehicle sold | $6874 | $7042 | $(168) | (2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New vehicle gross margin | 9.3% | 9.7% | (0.4)% |  |
| Import: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit per new vehicle sold | $2268 | $2622 | $(354) | (14)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New vehicle gross margin | 5.6% | 6.6% | (1.0)% |  |
| Domestic: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit per new vehicle sold | $2692 | $3235 | $(543) | (17)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New vehicle gross margin | 4.7% | 5.7% | (0.9)% |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;

During 2025, new vehicle revenue increased by $646.5 million (7%) when compared to 2024, as a result of a 5% increase in new vehicle unit sales, combined with a 3% increase in revenue per new vehicle sold which increased to $52,406 for the year ended December 31, 2025, from $51,090 for the year ended December 31, 2024. Same store new vehicle revenue increased by $316.0 million (4%) mainly driven by an increase in the number of units sold which increased by 4,392 (3%) for the year ended December 31, 2025 as compared to the same period in the prior year. In addition, same store revenue per new vehicle sold increased from $51,285 for the year ended December 31, 2024 to $51,830 for the year ended December 31, 2025.

New vehicle gross profit decreased by $18.4 million (3%) for the year ended December 31, 2025 when compared to the same period in the prior year, as a result of a 7% decrease in gross profit per new vehicle sold which decreased from $3,697 for the year ended December 31, 2024 to $3,432 for the year ended December 31, 2025, partially offset by a 5% increase in unit volumes sold. Same store new vehicle gross profit decreased by $49.0 million (8%) in 2025 as a result of an 11% decrease in gross profit per new vehicle sold. Same store new vehicle gross margin decreased 83 basis points from 7.3% for the year ended December 31, 2024 to 6.4% for the year ended December 31, 2025. The decrease in our new vehicle gross profit margin was primarily attributable to the softening of the historically high new vehicle margins seen in recent years.

The seasonally adjusted annual rate ("SAAR") for new vehicle sales in the U.S. during the year ended December 31, 2025 was approximately 16.2 million which increased as compared to approximately 15.8 million during the year ended December 31, 2024. The increase in SAAR period over period reflects higher inventory supply, including fleet, coupled with increased consumer demand due to concerns with respect to rising vehicle prices in light of, among other things, tariffs. In

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

addition, we saw increased demand for new electric vehicles before the expiration of federal tax credits in September 2025. We ended the year with approximately 52 days of supply of new vehicle inventory which reflects an increase from 49 days of supply as of December 31, 2024, but remains well below historical levels.

*Used Vehicle—* 

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **Increase<br>(Decrease)** | **%<br>Change** |
| | **2025** | **2024** | **Increase<br>(Decrease)** | **%<br>Change** |
| | **(Dollars in millions, except for per vehicle data)** | **(Dollars in millions, except for per vehicle data)** | **(Dollars in millions, except for per vehicle data)** | **(Dollars in millions, except for per vehicle data)** |
| **As Reported:** |  |  |  |  |
| Revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Used vehicle retail revenue | $4549.6 | $4605.9 | $(56.3) | (1)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Used vehicle wholesale revenue | 675.7 | 612.3 | 63.5 | 10% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Used vehicle revenue | $5225.4 | $5218.2 | $7.2 | NM |
| Gross profit: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Used vehicle retail gross profit | $239.4 | $228.6 | $10.7 | 5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Used vehicle wholesale gross profit | 19.7 | 16.8 | 2.9 | 17% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Used vehicle gross profit | $259.1 | $245.4 | $13.6 | 6% |
| Used vehicle retail units: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Used vehicle retail units | 143126 | 150698 | (7572) | (5)% |
| **Same Store:** |  |  |  |  |
| Revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Used vehicle retail revenue | $4136.9 | $4347.8 | $(210.9) | (5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Used vehicle wholesale revenue | 620.8 | 594.9 | 25.9 | 4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Used vehicle revenue | $4757.7 | $4942.7 | $(185.0) | (4)% |
| Gross profit: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Used vehicle retail gross profit | $218.5 | $219.8 | $(1.4) | (1)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Used vehicle wholesale gross profit | 20.9 | 17.0 | 3.9 | 23% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Used vehicle gross profit | $239.4 | $236.8 | $2.5 | 1% |
| Used vehicle retail units: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Used vehicle retail units | 131615 | 141131 | (9516) | (7)% |

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*Used Vehicle Metrics—*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **Increase<br>(Decrease)** | **%<br>Change** |
| | **2025** | **2024** | **Increase<br>(Decrease)** | **%<br>Change** |
| **As Reported:** |  |  |  |  |
| Revenue per used vehicle retailed | $31788 | $30564 | $1224 | 4% |
| Gross profit per used vehicle retailed | $1672 | $1517 | $155 | 10% |
| Used vehicle retail gross margin | 5.3% | 5.0% | 0.3% |  |
| **Same Store:** |  |  |  |  |
| Revenue per used vehicle retailed | $31432 | $30807 | $625 | 2% |
| Gross profit per used vehicle retailed | $1660 | $1558 | $102 | 7% |
| Used vehicle retail gross margin | 5.3% | 5.1% | 0.2% |  |

---

Used vehicle revenue increased by $7.2 million, due to a $63.5 million (10%) increase in used vehicle wholesale revenue, partially offset by a $56.3 million (1%) decrease in used vehicle retail revenue. Same store used vehicle revenue decreased by $185.0 million (4%) due to a $210.9 million (5%) decrease in used vehicle retail revenue, partially offset by a $25.9 million

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

(4%) increase in used vehicle wholesale revenue. Used vehicle revenues and unit volume have continued to contract during 2025, on both an all store and same store basis. Used vehicle revenue and unit volumes continue to be negatively impacted by the affordability headwinds and lack of inventory availability, especially in vehicles with lower mileage.

Offsetting volume declines, we reported higher used vehicle retail gross profit margins for the year ended December 31, 2025 as compared to the same period in the prior year. Total Company and same store used vehicle retail gross profit margins increased 30 and 22 basis points, respectively, to 5.3% for the year ended December 31, 2025 as compared to the same period in the prior year. We attribute the increases in used vehicle retail gross profit margins to improved sourcing and disciplined execution focused on profitability over units sold.

We believe that our used vehicle inventory continues to be well-aligned with current consumer demand, with approximately 38 days of supply as of December 31, 2025.

*Parts and Service—*

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **Increase<br>(Decrease)** | **%<br>Change** |
| | **2025** | **2024** | **Increase<br>(Decrease)** | **%<br>Change** |
| | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** |
| **As Reported:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Parts and service revenue | $2506.8 | $2354.7 | $152.1 | 6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Parts and service gross profit: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer pay | $781.6 | $711.1 | 70.4 | 10% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warranty | 226.4 | 186.7 | 39.7 | 21% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Collision | 126.4 | 128.6 | (2.2) | (2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wholesale parts | 77.5 | 77.5 | 0.1 | NM |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parts and service gross profit, excluding reconditioning and preparation | 1211.9 | 1104.0 | 107.9 | 10% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parts and service gross margin, excluding reconditioning and preparation | 48.3% | 46.9% | 1.5% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reconditioning and preparation \* | 260.6 | 247.2 | 13.4 | 5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total parts and service gross profit | $1472.5 | $1351.2 | $121.3 | 9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total parts and service gross margin | 58.7% | 57.4% | 1.4% |  |
| **Same Store:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Parts and service revenue | $2286.4 | $2212.7 | $73.7 | 3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Parts and service gross profit: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer pay | 706.8 | 665.8 | 41.0 | 6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warranty | 199.1 | 177.4 | 21.7 | 12% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Collision | 121.5 | 127.3 | (5.8) | (5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wholesale parts | 72.6 | 72.3 | 0.2 | NM |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parts and service gross profit, excluding reconditioning and preparation | 1100.1 | 1042.9 | 57.2 | 5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parts and service gross margin, excluding reconditioning and preparation | 48.1% | 47.1% | 1.0% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reconditioning and preparation \* | 243.3 | 233.3 | 10.0 | 4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total parts and service gross profit | $1343.4 | $1276.2 | $67.2 | 5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total parts and service gross margin | 58.8% | 57.7% | 1.1% |  |

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*\* Reconditioning and preparation represents the gross profit earned by our parts and service departments for internal work performed and is included as a reduction of Parts and service cost of sales within the accompanying consolidated statements of income upon the sale of the vehicle.*

The $152.1 million (6%) increase in parts and service revenue was due to a $95.8 million (8%) increase in customer pay revenue, a $66.4 million (19%) increase in warranty revenue, partially offset by a $4.9 million (1%) decrease in wholesale parts revenue and a $5.1 million (2%) decrease in collision revenue. Same store parts and service revenue increased $73.7 million

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(3%) from $2,212.70 million in 2024 to $2,286.4 million in 2025. The increase in same store parts and service revenue was due to a $52.0 million (4%) increase in customer pay revenue and a $38.2 million (12%) increase in warranty revenue, partially offset by a $13.8 million (5%) decrease in collision revenue and a $2.7 million (1%) decrease in wholesale parts revenue.

Parts and service gross profit, excluding reconditioning and preparation, increased by $107.9 million (10%) to $1,211.9 million and same store gross profit, excluding reconditioning and preparation, increased by $57.2 million (5%) to $1,100.1 million. The $57.2 million increase in same store gross profit, excluding reconditioning and preparation, is primarily due to a $41.0 million (6%) increase in customer pay gross profit and a $21.7 million (12%) increase in warranty gross profit, partially offset by a $5.8 million (5%) decrease in collision gross profit. Wholesale parts gross profit held steady on a same store basis for the year ended year ended December 31, 2025 as compared to the same period in the prior year. As a result of the shortage of new vehicle inventory in recent years, coupled with inflationary headwinds, many customers have elected to keep their current vehicles longer which has generated additional customer pay gross profit for the service departments. In addition, the increasing complexity of vehicles due to advanced systems is increasing the frequency of recalls resulting in an increase in warranty gross profit. We continue to focus on increasing our customer pay parts and service revenue over the long-term by improving the customer experience, providing competitive benefits to our technicians, capitalizing on our dealership training programs and upgrading equipment.

*Finance and Insurance, net—* 

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **Increase<br>(Decrease)** | **%<br>Change** |
| | **2025** | **2024** | **Increase<br>(Decrease)** | **%<br>Change** |
| | **(Dollars in millions, except for per vehicle data)** | **(Dollars in millions, except for per vehicle data)** | **(Dollars in millions, except for per vehicle data)** | **(Dollars in millions, except for per vehicle data)** |
| **As Reported:** |  |  |  |  |
| Finance and insurance, net revenue | $770.6 | $766.0 | $4.6 | 1% |
| Finance and insurance, net gross profit | $718.1 | $711.6 | $6.5 | 1% |
| Finance and insurance, net per vehicle sold | $2214 | $2197 | $17.0 | 1% |
| **Same Store:** |  |  |  |  |
| Finance and insurance, net revenue | $715.7 | $733.3 | $(17.6) | (2)% |
| Finance and insurance, net gross profit | $663.2 | $678.9 | $(15.7) | (2)% |
| Finance and insurance, net per vehicle sold | $2224 | $2238 | $(14.0) | (1)% |

---

F&I revenue, net increased by $4.6 million (1%) in 2025 when compared to 2024 primarily as a result of a $17 (1%) increase in F&I per vehicle retailed which was partially offset by a decline in new and used retail unit sales.

On a same store basis, F&I revenue, net decreased by $17.6 million (2%) in 2025 when compared to 2024 primarily as a result of a 2% decrease in new and used retail unit sales and a $14 (1%) decrease in F&I per vehicle retailed.

The financial results of the TCA segment, after dealership eliminations, are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **Increase<br>(Decrease)** | **%<br>Change** |
| | **2025** | **2024** | **Increase<br>(Decrease)** | **%<br>Change** |
| | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** |
| Finance and insurance, revenue | $91.1 | $120.6 | $(29.5) | (24)% |
| Finance and insurance, cost of sales | $52.5 | $54.4 | $(1.9) | (3)% |
| Finance and insurance, gross profit | $38.6 | $66.2 | $(27.6) | (42)% |

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TCA offers a variety of F&I products, such as extended vehicle service contracts, prepaid maintenance contracts, GAP, appearance protection contracts and lease wear-and-tear contracts. TCA's products are sold through our automobile dealerships.

Revenue generated by TCA is earned over the period of the related product contract. The method for recognizing revenue is assigned based on contract type and expected claim patterns. Premium revenues are supplemented with investment gains or losses and income earned associated with the performance of TCA's investment portfolio. During the years ended December 31,

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2025 and 2024, TCA generated $91.1 million and $120.6 million, respectively, of revenue, consisting primarily of earned premium and $20.7 million and $17.8 million, respectively, from the investment portfolio.

Direct expenses incurred for the acquisition of F&I contracts on which revenue has not yet been recognized have been deferred and are amortized over the related contract period. During the years ended December 31, 2025 and 2024, TCA recorded $52.5 million and $54.4 million, respectively, of cost of sales consisting primarily of claims expense paid to affiliated dealerships. Commissions expense paid by TCA to our affiliated dealerships and reflected as F&I revenue in our Dealerships segment is eliminated upon consolidation.

We completed the rollout of TCA's service offerings in our Florida market and the Koons platform during the year ended December 31, 2025. We expect to complete the rollout to all of our dealerships in 2026 by offering TCA products on our Herb Chambers platform; however, no assurance can be given that the rollout will be completed with the timeframe contemplated.

S*elling, General and Administrative Expense—*

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **Increase<br>(Decrease)** | **% of Gross<br>Profit Increase (Decrease)** |
| | **2025** | **% of Gross<br>Profit** | **2024** | **% of Gross<br>Profit** | **Increase<br>(Decrease)** | **% of Gross<br>Profit Increase (Decrease)** |
| | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** |
| **As Reported:** |  |  |  |  |  |  |
| Personnel costs | $1282.1 | 41.7% | $1240.3 | 42.1% | $41.8 | (0.3)% |
| Rent and related expenses | 131.9 | 4.3% | 142.6 | 4.8% | (10.6) | (0.5)% |
| Advertising | 68.9 | 2.2% | 61.8 | 2.1% | 7.1 | 0.1% |
| Other | 504.7 | 16.4% | 443.9 | 15.1% | 60.8 | 1.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative expense | $1987.6 | 64.7% | $1888.5 | 64.0% | $99.0 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit | $3071.7 |  | $2948.6 |  |  |  |
| **Same Store:** |  |  |  |  |  |  |
| Personnel costs | $1163.1 | 41.5% | $1168.6 | 41.8% | $(5.5) | (0.3)% |
| Rent and related expenses | 113.7 | 4.1% | 135.8 | 4.9% | (22.1) | (0.8)% |
| Advertising | 57.6 | 2.1% | 54.5 | 1.9% | 3.1 | 0.1% |
| Other | 450.9 | 16.1% | 418.9 | 15.0% | 32.0 | 1.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative expense | $1785.4 | 63.7% | $1777.8 | 63.5% | $7.6 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit | $2802.7 |  | $2797.8 |  |  |  |

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SG&A expense as a percentage of gross profit increased 66 basis points from 64.0% in 2024 to 64.7% in 2025. Same store SG&A expense as a percentage of gross profit increased 16 basis points from 63.5% in 2024 to 63.7% in 2025. The increase in SG&A as a percentage of gross profit is primarily the result of higher cost in personnel and other categories in SG&A expense partially offset by higher gross profits for 2025 as compared to 2024. SG&A expense as reported for the year ended December 31, 2025 increased by $99.0 million (0.7%) as compared to the year ended December 31, 2024 primarily due to the acquisition of the Herb Chambers stores in July 2025 and an increase in professional and legal fees including those related to the Herb Chambers acquisition ($15.4 million) and the Tekion implementation project ($8.6 million) which was partially offset by an insurance recovery of $15.0 million. On a same store basis, the increase in SG&A expense for the year ended December 31, 2025 as compared to the year ended December 31, 2024 is due to an increase in professional and legal fees offset by the insurance recovery of $15.0 million and the decrease in personnel costs of $5.5 million.

*Asset Impairments —*

During the year ended December 31, 2025, we recognized asset impairment charges of $141.0 million as compared to $149.5 million of impairment charges during the year ended December 31, 2024. The asset impairment charges resulted from our annual franchise rights impairment tests and the classification of certain asset disposal groups as held for sale which resulted in additional franchise rights impairment charges.

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*Floor Plan Interest Expense —*

Floor plan interest expense increased by $1.3 million to $91.2 million during 2025 compared to $89.9 million during 2024 due to floor plan interest expense related to the Herb Chambers stores acquired in July 2025 and an increase in unused credit facility fees of $2.5 million. These increases were offset by a reduction in interest rates year over year.

*Other Interest Expense —*

Other interest expense increased $8.3 million (5%) from $179.1 million in 2024 to $187.5 million in 2025. The increase is primarily due to higher loaner payable interest expense driven by higher loaner vehicle balances, as well as interest expense on our revolving credit agreement during the year ended December 31, 2025.

*Gain on Dealership Divestitures, Net —*

During the year ended December 31, 2025, we sold 24 franchises (15 dealership locations) for an aggregate purchase price of approximately $566.5 million. The Company recorded a pre-tax gain totaling $80.2 million, which is presented in our accompanying consolidated statements of income as a gain on dealership divestitures, net.

During the year ended December 31, 2024, we sold five franchises (5 dealership locations) for an aggregate purchase price of approximately $196.3 million. The Company recorded a pre-tax gain totaling $8.6 million, which is presented in our accompanying consolidated statements of income as a gain on dealership divestitures, net.

During the year ended December 31, 2023, we sold one franchise (one dealership location) for proceeds of $30.7 million. The Company recorded a pre-tax gain totaling $13.5 million.

*Income Tax Expense —*

The $25.3 million (17%) increase in income tax expense was primarily the result of a $86.9 million (15%) increase in income before income taxes. Our effective tax rate increased 50 basis points from 25.2% in 2024 to 25.7% in 2025. The increase in our effective tax rate was primarily due to our acquisition and divestiture activity. Stores acquired are located in relatively high tax rate states while the stores divested are located in relatively low or no tax rate states.

Refer to Note 16 "Income Taxes" for additional information regarding income taxes.

**LIQUIDITY AND CAPITAL RESOURCES**

As of December 31, 2025, we had total available liquidity of $927.1 million, which consisted of cash and cash equivalents of $28.2 million (excluding $12.2 million held by TCA), available funds in our floor plan offset accounts of $151.6 million and $747.3 million of availability under our revolving credit facility. The borrowing capacities under our revolving credit facility and our used vehicle revolving floor plan facility are limited by borrowing base calculations and, from time to time, may be further limited by our required compliance with certain financial covenants. For more information on our financial covenants, see "Covenants and Defaults" and "Share Repurchases and Dividend Restrictions" below.

We continually evaluate our liquidity and capital resources based upon (i) our cash and cash equivalents on hand, (ii) the funds that we expect to generate through future operations, (iii) current and expected borrowing availability under our 2023 Senior Credit Facility (discussed further below), (iv) amounts in our new vehicle floor plan notes payable offset accounts, and (v) the potential impact of our capital allocation strategy and any contemplated or pending future transactions, including, but not limited to, financings, acquisitions, dispositions, equity and/or debt repurchases, dividends, or other capital expenditures. We believe we will have sufficient liquidity to meet our debt service and working capital requirements; commitments and contingencies; debt repayment, maturity and repurchase obligations; acquisitions; capital expenditures; and any operating requirements for at least the next twelve months and the foreseeable future.

*Material Indebtedness*

We currently are party to the following material credit facilities and agreements and have the following material indebtedness outstanding. For a more detailed description of the material terms of these agreements and facilities, and this indebtedness, see Note 14 "Debt" included in the notes to consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•* 2023 Senior Credit Facility**—On October 20, 2023, the Company and certain of its subsidiaries entered into a fourth amended and restated credit agreement with Bank of America, N.A. ("Bank of America"), as administrative agent, and the other lenders party thereto (the "2023 Senior Credit Facility"). The 2023 Senior Credit Facility amended and

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

restated the Company's pre-existing third amended and restated credit agreement, dated as of September 25, 2019, among the Company, certain of its subsidiaries, Bank of America, as administrative agent, and the other lenders party thereto.

On April 9, 2025, the Company obtained an amendment to the 2023 Senior Credit Facility by and among the Company, as a borrower, certain of its subsidiaries, as vehicle borrowers, Bank of America, as administrative agent, and the other lenders party thereto. The Amendment, among other things, provided for the following, subject to satisfaction of certain other customary conditions in each case:

*<u>Revolving Credit Facility</u>****—***An increase of the aggregate commitments from $500.0 million to $925.0 million under the Revolving Credit Facility for, among other things, acquisitions, working capital and capital expenditures, including a $50.0 million sub-limit for letters of credit. As of December 31, 2025, we had $25.2 million in outstanding letters of credit, resulting in $747.3 million of borrowing availability. We began the year with no amounts drawn on our revolving credit facility. During the year ended December 31, 2025, we had borrowings of $2.15 billion and $2.03 billion in repayments, resulting in $120.0 million of outstanding borrowings as of December 31, 2025.

*<u>New Vehicle Floor Plan Facility</u>****—***An increase of the aggregate commitments from $1.93 billion to $2.25 billion under the New Vehicle Floor Plan Facility which allows us to transfer cash as an offset to floor plan notes payable. These transfers reduce the amount of outstanding new vehicle floor plan notes payable that would otherwise accrue interest, while retaining the ability to transfer amounts from the offset account into our operating cash accounts within one to two days. As a result of the use of this floor plan offset account, we experienced a reduction in floor plan interest expense on our consolidated statements of income. As of December 31, 2025, we had $1.57 billion outstanding under the New Vehicle Floor Plan Facility, which includes $65.0 million classified in loaner vehicles notes payable which is included in accounts payable and accrued liabilities in our consolidated balance sheets. As of December 31, 2025, we held $150.7 million in the floor plan notes payable offset account.

*<u>Used Vehicle Floor Plan Facility</u>****—***A $375.0 million Used Vehicle Floor Plan Facility to finance the acquisition of used vehicle inventory and for working capital and capital expenditures, as well as to refinance used vehicles. We began the year with $100.7 million amounts drawn on our Used Vehicle Floor Plan Facility. During the year ended December 31, 2025, we had additional borrowings of $650.0 million and $425.7 million in repayments resulting in $325.0 million outstanding borrowings as of December 31, 2025. We had fully utilized our borrowing capacity under the Used Vehicle Floor Plan Facility based on our borrowing base calculation as of December 31, 2025.

At our option, we have the ability to re-designate a portion of our availability under the Revolving Credit Facility to the New Vehicle Floor Plan Facility or the Used Vehicle Floor Plan Facility. The maximum amount we are allowed to re-designate is determined based on aggregate commitments under the Revolving Credit Facility, less $50.0 million. In addition, we are able to re-designate any amounts moved to the New Vehicle Floor Plan Facility or the Used Vehicle Floor Plan Facility back to the Revolving Credit Facility.

In addition to the payment of interest on borrowings outstanding under the 2023 Senior Credit Facility, we are required to pay a quarterly commitment fee on total unused commitments thereunder. The fee for unused commitments under the Revolving Credit Facility is between 0.15% and 0.40% per year, based on the Company's total lease adjusted leverage ratio, and the fee for unused commitments under the New Vehicle Facility Floor Plan and the Used Vehicle Floor Plan Facility is 0.15% per year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Manufacturer affiliated new vehicle floor plan and other financing facilities**—We have a floor plan facility with the Ford Motor Credit Company ("Ford Credit") to purchase new Ford and Lincoln vehicle inventory. Our floor plan facility with Ford Credit was amended in July 2020 and can be terminated by either the Company or Ford Credit with a 30-day notice period. We have also established a floor plan offset account with Ford Credit, which operates in a similar manner to our floor plan offset account with Bank of America. As of December 31, 2025, we had $343.1 million, which is net of $1.0 million in our floor plan offset account, outstanding under our floor plan facility. Neither our floor plan facility with Ford Credit nor our facilities for loaner vehicles have stated borrowing limitations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•* 2029 and 2032 Senior Notes—**On November 19, 2021, the Company completed its offering of $800.0 million aggregate principal amount of 4.625% senior notes due 2029 (the "2029 Senior Notes") and $600.0 million aggregate principal amount of 5.000% senior notes due 2032 (the "2032 Senior Notes"). The 2029 Senior Notes and 2032 Senior Notes mature on November 15, 2029 and February 15, 2032, respectively. Interest is payable semiannually, on

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November 15 and May 15 of each year. The 2029 Senior Notes and the 2032 Senior Notes were offered, together with additional borrowings and cash on hand, to (i) fund the LHM Acquisition and (ii) pay related fees and expenses.

The 2029 Notes and 2032 Notes have been fully and unconditionally guaranteed, on a joint and several basis, by substantially all of our subsidiaries other than the TCA Non-Guarantor Subsidiaries. In addition, the notes are subject to customary covenants, events of default and optional redemption revisions. The 2029 Senior Notes and the 2032 Senior Notes are not required to be registered under the Securities Act of 1933.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• 2028 and 2030 Senior Notes**—On February 19, 2020, the Company completed its offering of senior unsecured notes, consisting of $525.0 million aggregate principal amount of the Existing 2028 Notes and $600.0 million aggregate principal amount of the Existing 2030 Notes. The 2028 Notes and 2030 Notes mature on March 1, 2028 and March 1, 2030, respectively. Interest is payable semiannually, on March 1 and September 1 of each year. The 2028 Notes and the 2030 Notes were offered, together with additional borrowings and cash on hand, to (i) fund the acquisition of substantially all of the assets of Park Place, (ii) redeem all of our outstanding $600.0 million aggregate principal amount of 6.0% Senior Subordinated Notes due 2024 (the "6.0% Notes") and (iii) pay fees and expenses.

On March 24, 2020, the Company redeemed $245.0 million aggregate principal million of the 2028 Notes and $280.0 million aggregate principal amount of the 2030 Notes pursuant to a special mandatory redemption.

In September 2020, the Company completed an add-on issuance of $250.0 million aggregate principal amount of additional senior notes consisting of $125.0 million aggregate principal amount of additional 2028 Notes at a price of 101.00% of par, plus accrued interest from September 1, 2020, and $125.0 million aggregate principal amount of additional 2030 Notes (together with the additional 2028 Notes, the "Additional Notes") at a price of 101.75% of par, plus accrued interest from September 1, 2020 (the "September 2020 Offering"). After deducting the initial purchasers' discounts of $2.8 million, we received net proceeds of approximately $250.6 million from the September 2020 Offering. The $3.5 million premium paid by the initial purchasers of the Additional Notes was recorded as a component of long-term debt on our consolidated balance sheets and is being amortized as a reduction of interest expense over the remaining term of the Notes. The proceeds of the September 2020 Offering were used to redeem certain seller notes issued in connection with the acquisition of Park Place.

The 2028 Notes and the 2030 Notes are guaranteed, jointly and severally, on a senior unsecured basis, by each of our existing and future restricted subsidiaries, other than the TCA Non-Guarantor Subsidiaries. In addition, the Notes are subject to customary covenants, events of default and optional redemption revisions. The 2028 Notes and the 2030 Notes were required to be registered under the Securities Act of 1933 within 270 days of the closing date for the offering of each respective series. The Company completed the registration of the 2028 Notes and 2030 Notes in October 2020.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•* Mortgage Financings**—We have multiple mortgage agreements with finance companies affiliated with our vehicle manufacturers ("captive mortgages"). As of December 31, 2025 we had total mortgage notes payable outstanding of $27.2 million which are collateralized by the associated real estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* **2025 Wells Fargo Real Estate Facility**—On July 21, 2025, certain subsidiaries of the Company borrowed $546.5 million (the "2025 Real Estate Facility") under a real estate term loan credit agreement, dated as of July 21, 2025 (the "Real Estate Credit Agreement") by and among the Company, certain of the Company's subsidiaries that own or lease the real estate financed thereunder, as borrowers, Wells Fargo Bank, National Association, as administrative agent, and the various financial institutions parties thereto, as lenders. The Real Estate Facility matures ten years from the initial funding date. The Company used the proceeds from these borrowings, together with other available funds, to finance the Herb Chambers acquisition. As of December 31, 2025, we had $537.4 million of outstanding borrowings under the 2025 Real Estate Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **2021 Real Estate Facility**—On December 17, 2021, we entered into a real estate term loan credit agreement with Bank of America, N.A., as administrative agent and the other lenders party thereto, which provided for term loans in an aggregate amount equal to $689.7 million (the "2021 Real Estate Facility"). As of December 31, 2025, we had $442.1 million of outstanding borrowings under the 2021 Real Estate Facility. There is no further borrowing availability under the 2021 Real Estate Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **2021 BofA Real Estate Facility**—On May 10, 2021, we entered into a real estate term loan credit agreement (the "2021 BofA Real Estate Credit Agreement"), by and among the Company and certain of its subsidiaries, Bank of America, N.A., as administrative agent and the various financial institutions party thereto, as lenders, which provided for term loans in an aggregate amount equal to $184.4 million, subject to customary terms and conditions (the "2021 BofA Real Estate Facility"). As of December 31, 2025, we had $151.2 million of outstanding borrowings under the

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2021 BofA Real Estate Facility. There is no further borrowing availability under the 2021 BofA Real Estate Credit Agreement. On May 25, 2022, certain of our subsidiaries entered into amendments to our 2021 BofA Real Estate Facility to replace the benchmark reference rate of LIBOR to SOFR, effective June 1, 2022. See Note 14 "Debt" for further details.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•* 2018 BofA Real Estate Facility**—On November 13, 2018, we entered into a real estate term loan credit agreement (as amended, restated or supplemented from time to time, the "2018 BofA Real Estate Credit Agreement") with Bank of America, as lender, providing for term loans in an aggregate amount not to exceed $128.1 million, subject to customary terms and conditions (the "2018 BofA Real Estate Facility"). In November 2025, we paid off the aggregate principal amounts remaining under the 2018 BofA Real Estate Facility for an aggregate amount of approximately $34.2 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **2018 Wells Fargo Master Loan Facility*—***On November 16, 2018, certain of our subsidiaries entered into a master loan agreement (the "2018 Wells Fargo Master Loan Agreement") with Wells Fargo as lender, which provides for term loans to certain of our subsidiaries that are borrowers under the 2018 Wells Fargo Master Loan Agreement in an aggregate amount not to exceed $100.0 million (the "2018 Wells Fargo Master Loan Facility"). Our right to make draws under the 2018 Wells Fargo Master Loan Facility terminated on June 30, 2020. On November 16, 2018 and June 26, 2020, we borrowed an aggregate amount of $25.0 million and $69.4 million, respectively, under the 2018 Wells Fargo Master Loan Facility, the proceeds of which were used for general corporate purposes. As of December 31, 2025, we had $57.2 million outstanding borrowings under the 2018 Wells Fargo Master Loan Facility. There is no further borrowing availability under the 2018 Wells Fargo Master Loan Facility. On and with effect from June 1, 2022, certain of our subsidiaries entered into an amendment to our 2018 Wells Fargo Master Loan Agreement to replace the benchmark reference rate of LIBOR to SOFR. See Note 14 "Debt" for further details.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•* 2015 Wells Fargo Master Loan Facility**—On February 3, 2015, certain of our subsidiaries entered into an amended and restated master loan agreement (the "2015 Wells Fargo Master Loan Agreement") with Wells Fargo Bank, National Association ("Wells Fargo"), as lender, which provides for term loans to certain of our subsidiaries that are borrowers under the 2015 Wells Fargo Master Loan Agreement in an aggregate amount not to exceed $100.0 million (the "2015 Wells Fargo Master Loan Facility"). The outstanding balance under this agreement in the amount of $31.6 million was paid off in May 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• 2013 BofA Real Estate Facility**—On September 26, 2013, we entered into a real estate term loan credit agreement (the "2013 BofA Real Estate Credit Agreement") with Bank of America, N.A., as lender, providing for term loans in an aggregate amount not to exceed $75.0 million, subject to customary terms and conditions (the "2013 BofA Real Estate Facility"). In June 2023, the Company prepaid the aggregate principal amounts remaining under the 2013 BofA Real Estate Facility for an aggregate amount of approximately $23.9 million with cash on hand.

*Covenants and Defaults*

We are subject to a number of customary covenants in our various debt and lease agreements, including those described below. We were in compliance with all of our covenants as of December 31, 2025. Failure to comply with any of our debt covenants would constitute a default under the relevant debt agreements, which would entitle the lenders under such agreements to terminate our ability to borrow under the relevant agreements and accelerate our obligations to repay outstanding borrowings, if any, unless compliance with the covenants were waived. In many cases, defaults under one of our agreements could trigger cross-default provisions in our other agreements. If we are unable to remain in compliance with our financial or other covenants, we would be required to seek waivers or modifications of our covenants from our lenders, or we would need to raise debt and/or equity financing or sell assets to generate proceeds sufficient to repay such debt. We cannot give any assurance that we would be able to successfully take any of these actions on terms, or at times, that may be necessary or desirable.

The representations and covenants contained in the 2021 Real Estate Facility, 2021 BofA Real Estate Credit Agreement, 2018 BofA Real Estate Credit Agreement, 2018 Wells Fargo Master Loan Agreement, the 2025 Real Estate Facility, and the related documents are customary for financing transactions of this nature, including, among others, requirements to comply with a minimum consolidated fixed charge coverage ratio and maximum consolidated total lease adjusted leverage ratio, in each case, as applicable. In addition, certain other covenants could restrict our ability to incur additional debt, pay dividends or acquire or dispose of assets. Each of these agreements provides for events of default that are customary for financing transactions of this nature, including cross-defaults to other material indebtedness. Upon the occurrence of an event of default, we could be required by the applicable agreement to immediately repay all amounts outstanding thereunder.

The representations and covenants contained in the agreement governing the 2023 Senior Credit Facility are customary for financing transactions of this nature including, among others, a requirement to comply with a minimum consolidated fixed charge coverage ratio and maximum consolidated total lease adjusted leverage ratio, in each case as set out in the agreement

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

governing the 2023 Senior Credit Facility. In addition, certain other covenants could restrict the Company's ability to incur additional debt, pay dividends or acquire or dispose of assets. The agreement governing the 2023 Senior Credit Facility also provides for events of default that are customary for financing transactions of this nature, including cross-defaults to other material indebtedness. In certain instances, an event of default under either the Revolving Credit Facility or the Used Vehicle Floor Plan Facility could be, or result in, an event of default under the New Vehicle Floor Plan Facility, and vice versa. Upon the occurrence of an event of default, the Company could be required to immediately repay all amounts outstanding under the applicable facility.

The 2023 Senior Credit Facility and the Indentures currently allow for restricted payments without limit so long as our Consolidated Total Leverage Ratio (as defined in the 2023 Senior Credit Facility and the Indentures) is no greater than 3.0 to 1.0 after giving effect to such proposed restricted payments. Restricted payments generally include items such as dividends, share repurchases, unscheduled repayments of subordinated debt, or purchases of certain investments. Subject to our continued compliance with a consolidated fixed charge coverage ratio and a maximum consolidated total lease adjusted leverage ratio, in each case as set out in the Indentures, restricted payments capacity additions (or subtractions if negative) equal to a base level plus the cumulative amount of (i) 50% of our net income (as defined in the 2023 Senior Credit Facility) plus (ii) 100% of any cash proceeds we receive from the sale of equity interests minus (iii) the dollar amount of share purchases made and dividends paid during the defined measurement periods, subject to certain exceptions. In the event that our Consolidated Total Leverage Ratio does (or would) exceed 3.0 to 1.0, the 2023 Senior Credit Facility and the Indentures would then also allow for restricted payments under mutually exclusive parameters, subject to certain exclusions. The Company may otherwise make restricted payments only up to the aforementioned cumulative capacity. Our restricted payment capacity balance as of December 31, 2025 and 2024 was $1.34 billion and $1.22 billion, respectively.

*Share Repurchases and Dividend Restrictions*

Our ability to repurchase shares or pay dividends on our common stock is subject to our compliance with the covenants and restrictions described in "Covenants and Defaults" above.

On May 15, 2024, the Company announced that its Board of Directors approved an increase of $256.2 million in the Company's common share repurchase authorization to $400.0 million (the "New Share Repurchase Authorization"), for the repurchase of our common stock in open market transactions or privately negotiated transactions or in other manners as permitted by federal securities laws and other legal and contractual requirements. The extent that the Company repurchases its shares, the number of shares and the timing of any repurchases will depend on general market conditions, legal requirements and other corporate considerations. The repurchase program may be modified, suspended or terminated at any time without prior notice.

During the year ended December 31, 2025, we repurchased 432,752 shares of our common stock under our repurchase program for a total of $99.9 million and an additional 44,212 shares of our common stock for $13.7 million from employees in connection with a net share settlement feature of employee equity-based awards.

As of December 31, 2025, we had remaining authorization to repurchase up to an additional $175.9 million of our common stock. Any repurchases will be subject to applicable limitations in our debt or other financing agreements that may be in existence from time to time.

*Contractual Obligations* 

As of December 31, 2025, we had significant contractual obligations related to our floor plan notes payable disclosed in Notes 11 and 12, operating lease liabilities disclosed in Note 19 and long-term debt arrangements discussed in Note 14. Disclosures related to our commitments and contingencies are outlined in Note 21. All note references are to the notes to our consolidated financial statements included elsewhere herein.

**Cash Flows**

*Classification of Cash Flows Associated with Floor Plan Notes Payable*

Borrowings and repayments of floor plan notes payable through our 2023 Senior Credit Facility ("Non-Trade"), and all floor plan notes payable relating to used vehicles (together referred to as "Floor Plan Notes Payable—Non-Trade"), are classified as financing activities on the accompanying consolidated statements of cash flows, with borrowings reflected separately from repayments. The net change in floor plan notes payable to a lender affiliated with the manufacturer from which we purchase a particular new vehicle (collectively referred to as "Floor Plan Notes Payable—Trade") is classified as an operating activity on the accompanying consolidated statements of cash flows. Borrowings of non-trade floor plan notes payable associated with inventory acquired in connection with all acquisitions and repayments made in connection with all divestitures are classified as a financing activity in the accompanying consolidated statements of cash flows. Cash flows related

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to floor plan notes payable included in operating activities differ from cash flows related to floor plan notes payable included in financing activities only to the extent that the former are payable to a lender affiliated with the manufacturer from which we purchased the related inventory, while the latter are payable to our 2023 Senior Credit Facility that includes lenders affiliated with the manufacturers and lenders not affiliated with the manufacturers from which we purchased the related inventory. The majority of our floor plan notes are payable to our 2023 Senior Credit Facility, with the exception of floor plan notes payable relating to the financing of new Ford and Lincoln vehicles and certain loaner vehicle programs.

Floor plan borrowings are required by all vehicle manufacturers for the purchase of new vehicles, and all floor plan lenders require amounts borrowed for the purchase of a vehicle to be repaid within a short time period after the related vehicle is sold. As a result, we believe that it is important to understand the relationship between the cash flows of all of our floor plan notes payable and new vehicle inventory in order to understand our working capital and operating cash flow and to be able to compare our operating cash flow to that of our competitors (i.e., if our competitors have a different mix of trade and non-trade floor plan financing as compared to us). In addition, we include all floor plan borrowings and repayments in our internal operating cash flow forecasts. As a result, we use the non-GAAP measure "Adjusted cash flow provided by operating activities" (defined below) to compare our results to forecasts. We believe that splitting the cash flows of floor plan notes payable between operating activities and financing activities, while all new vehicle inventory activity is included in operating activities, results in significantly different operating cash flow than if all the cash flows of floor plan notes payable were classified together in operating activities.

Adjusted cash flow provided by operating activities includes borrowings and repayments of floor plan notes payable non-trade and used floor plan notes payable borrowing base changes. Adjusted cash flow provided by operating activities may not be comparable to similarly titled measures of other companies and should not be considered in isolation, or as a substitute for analysis of our operating results in accordance with GAAP. In order to compensate for these potential limitations, we also review the related GAAP measures. We believe that the adjustments related to cash flows associated with our used vehicle borrowing base, floor plan offset accounts and the impact of acquisitions and divestitures eliminates cash flow volatility and provides an adjusted operating cash flow metric that best reflects our results of operations and our management of inventory and related financing activities.

We have provided below a reconciliation of cash flow provided by operating activities, as if all changes in floor plan notes payable, except for (i) borrowings associated with acquisitions and repayments associated with divestitures and (ii) borrowings and repayments associated with the purchase of used vehicle inventory and (iii) changes in the floor plan offset accounts were classified as an operating activity for both floor plan notes payable - non-trade and floor plan notes payable - trade.

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| | | | |
|:---|:---|:---|:---|
| | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
| | **2025** | **2024** | **2023** |
| | **(In millions)** | **(In millions)** | **(In millions)** |
| *Reconciliation of cash provided by operating activities to cash provided by operating activities, as adjusted* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash provided by operating activities, as reported | $775.2 | $671.2 | $313.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in Floor Plan Notes Payable Non-Trade, net | (57.2) | (5.2) | 1018.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in Floor Plan Notes Payable Non-Trade associated with floor plan offset, used vehicle borrowing base changes adjusted for acquisition and divestitures | (9.1) | 71.9 | (571.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in Floor Plan Notes Payable Trade associated with floor plan offset and acquisitions and divestitures, net | (57.4) | (49.5) | (55.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted cash flow provided by operating activities | $651.4 | $688.4 | $705.3 |

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*Operating Activities—*

Net cash provided by operating activities totaled $775.2 million, $671.2 million, and $313.0 million for the years ended December 31, 2025, 2024, and 2023, respectively. Adjusted cash flow provided by operating activities totaled $651.4 million, $688.4 million, and $705.3 million for the years ended December 31, 2025, 2024, and 2023, respectively. Adjusted cash flow provided by operating activities includes net income, adjustments to reconcile net income to net cash provided by operating activities, changes in working capital, changes in used vehicle borrowing base, changes in floor plan notes payable - non-trade and trade, excluding the impact of offsets, and excluding operating cash flows associated with acquisitions and divestitures related to loaner vehicles and new vehicle inventories financed through floor plan notes payable - trade.

The $37.0 million decrease in adjusted cash flow provided by operating activities for the year ended December 31, 2025 compared to the year ended December 31, 2024, was primarily the result of the following:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• decrease of $56.7 million related to the change in accounts payable and accrued liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• decrease of $51.7 million in other current assets, net; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• decrease of $24.4 million in net income and non-cash adjustments to net income.

The decrease in our adjusted cash flow provided by operating activities was partially offset by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $59.4 million increase related to sale volume and the timing of collection of accounts receivable and contracts-in-transit during 2025 compared to 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $31.3 million increase related to other long-term assets and liabilities, net; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increase of $8.2 million in inventory, net of floor plan notes payable, including both trade and non-trade, excluding offset and including used vehicle borrowing base changes adjusted for acquisitions and divestitures.

The $16.9 million decrease in our adjusted cash flow provided by operating activities for the year ended December 31, 2024 compared to the year ended December 31, 2023, was primarily the result of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• decrease of $86.6 million in net income and non-cash adjustments to net income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $100.9 million decrease related to the change in accounts payable and accrued liabilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $24.8 million related to a decrease in inventory, net of floor plan notes payable, including both trade and non-trade, excluding offset and including used vehicle borrowing base changes adjusted for acquisitions and divestitures.

The decrease in our adjusted cash flow provided by operating activities was partially offset by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $118.1 million decrease related to the change in other current assets, net;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $69.4 million decrease related to sale volume and the timing of collection of accounts receivable and contracts-in-transit during 2024 compared to 2023; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $8.2 million decrease in other long-term assets and liabilities, net.

*Investing Activities—*

Net cash used in investing activities totaled $1.46 billion, $137.2 million, and $1.68 billion for the years ended December 31, 2025, 2024, and 2023 respectively. Cash flows from investing activities relate primarily to capital expenditures, acquisitions, divestitures, and the sale of property and equipment.

Capital expenditures, excluding the purchase of real estate, were $186.0 million, $162.6 million, and $142.3 million for the years ended December 31, 2025, 2024 and 2023, respectively. There were no purchases related to real estate for the year ended December 31, 2023. Purchases of real estate totaled $19.3 million and $145.6 million for the years ended December 31, 2025, and 2024, respectively. In addition, we purchased previously leased facilities for $11.9 million during the year ended December 31, 2024.

We expect that capital expenditures during 2026 will total approximately $250.0 million to upgrade or replace our existing facilities, construct new facilities, expand our service capacity, and invest in technology and equipment. In addition, as part of our capital allocation strategy, we continually evaluate opportunities to purchase properties currently under lease and acquire properties in connection with future dealership relocations. No assurances can be provided that we will have or be able to access capital at times or on terms in amounts deemed necessary to execute this strategy.

On July 21, 2025, we completed the acquisition of the Herb Chambers dealerships for a total purchase price of approximately $1.76 billion, which includes $292.0 million of new vehicle floor plan financing, $623.3 million of borrowings under a revolving credit facility, and $546.5 million of borrowings under a real estate facility.

On December 11, 2023, we completed the acquisition of the Jim Koons Dealerships for a total purchase price of approximately $1.50 billion, which includes $256.1 million of new vehicle floor plan financing and $100.9 million of assets

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held for sale related to Koons Lexus of Wilmington. The sources of the purchase price included borrowings under Asbury's existing credit facility and cash on hand.

During the year ended December 31, 2025, we sold 24 franchises (15 dealership locations) for an aggregate purchase price of approximately $566.5 million. The Company recorded a pre-tax gain totaling $80.2 million, which is presented in our accompanying consolidated statements of income as a gain on dealership divestitures, net.

During the year ended December 31, 2024, we sold five franchises (5 dealership locations) for an aggregate purchase price of approximately $196.3 million. The Company recorded a pre-tax gain totaling $8.6 million, which is presented in our accompanying consolidated statements of income as a gain on dealership divestitures, net.

During the year ended December 31, 2023, we sold one franchise (one dealership location) for proceeds of $30.7 million. The Company recorded a pre-tax gain totaling $13.5 million.

Proceeds from the sale of assets, unrelated to a dealership divestiture, was $6.5 million and $16.3 million for the years ended December 31, 2024 and 2023, respectively. We did not have proceeds from the sale of assets, unrelated to a dealership divestiture, for the year ended December 31, 2025.

During the years ended December 31, 2025, 2024, and 2023, we purchased $189.4 million, $165.0 million and $195.2 million of debt securities. We did not purchase any equity securities in 2025, 2024 or 2023.

During the years ended December 31, 2025, 2024, and 2023, we also received proceeds of $132.8 million, $149.8 million, and $60.3 million from the sale of debt securities respectively and $51.8 million from the sale of equity securities in 2023. We did not have any proceeds from the sale of equity securities in 2025 or 2024.

*Financing Activities—*

Net cash provided by financing activities totaled $653.1 million and $1.18 billion for the years ended December 31, 2025 and 2023, respectively. Net cash used in financing activities totaled $510.3 million for the year ended December 31, 2024.

During the years ended December 31, 2025, 2024, and 2023, we had non-trade floor plan borrowings of $10.38 billion, $9.45 billion, and $8.39 billion, respectively. Included in our non-trade floor plan borrowings, were borrowings of $325.0 million, $100.7 million, and $307.1 million for the years ended December 31, 2025, 2024, and 2023, respectively, related to our used vehicle floor plan facility.

During the years ended December 31, 2025, 2024 and 2023, we borrowed $2.15 billion, $1.21 billion, and $329.0 million, and repaid $2.03 billion, $1.21 billion and $329.0 million, respectively, on our revolving line of credit.

In addition, during the years ended December 31, 2025 and 2023 we had non-trade floor plan borrowings of $262.7 million and $256.1 million, respectively, related to acquisitions. The majority of our floor plan notes are payable to parties unaffiliated with the entities from which we purchase our new vehicle inventory, with the exception of floor plan notes payable relating to the financing of new Ford and Lincoln vehicles. We did not have any dealership acquisitions in 2024.

During the years ended December 31, 2025, 2024, and 2023, we made non-trade floor plan repayments of $10.21 billion, $9.66 billion, and $7.06 billion, respectively. In addition, during the years ended December 31, 2025 and 2024, we had floor plan repayments associated with dealership divestitures of $90.7 million and $34.1 million, respectively. During 2023, we did not have any floor plan repayments associated with dealership divestitures.

Proceeds from borrowings totaled $546.5 million for the year ended December 31, 2025. We did not have proceeds from borrowings for the years ended December 31, 2024 and 2023, respectively.

Repayments of borrowings totaled $234.1 million, $71.4 million and $126.0 million, for the years ended December 31, 2025, 2024, and 2023, respectively.

During the years ended December 31, 2025, 2024, and 2023 we repurchased 432,752, 830,297, and 1,316,167 shares of our common stock under our Repurchase Program for a total of $99.9 million, $183.0 million and $258.1 million and 44,212, 46,941 and 48,262 shares of our common stock for $12.8 million, $10.2 million and $11.4 million from employees in connection with a net share settlement feature of employee equity-based awards, respectively.

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**Off-Balance Sheet Arrangements**

We had no off-balance sheet arrangements during any of the periods presented other than those disclosed in Note 21 "Commitments and Contingencies" of the Company's consolidated financial statements.

**Guarantor Financial Information**

As of December 31, 2025, the Company had outstanding $405.0 million of 4.500% Senior Notes due 2028 and $445.0 million of 4.750% Senior Notes due 2030. As explained in Note 14 of the Company's consolidated financial statements as of and for the year ended December 31, 2025, the Senior Notes have been fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis, by each existing and future restricted subsidiary of the Company (the "Guarantor Subsidiaries"), which are listed in Exhibit 21, with the exception of Landcar Administration Company, Landcar Agency, Inc. and Landcar Casualty Company and their respective subsidiaries (collectively, the "TCA Non-Guarantor Subsidiaries").

The following tables present summarized financial information for the Company and the Guarantor Subsidiaries on a combined basis after elimination of (i) intercompany transactions and balances among Asbury and the Guarantor Subsidiaries and (ii) assets, liabilities, and equity in earnings from and investments in any non-guarantor subsidiaries.

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| | |
|:---|:---|
| **Summarized Balance Sheet Data of Asbury and Guarantor Subsidiaries** | **Summarized Balance Sheet Data of Asbury and Guarantor Subsidiaries** |
| | **As of December 31,** |
|  | **2025** |
|  | **(In millions)** |
| Current assets | $3150.3 |
| Current assets - affiliates | $0.5 |
| Non-current assets | $7614.8 |
| Current liabilities | $2995.7 |
| Current liabilities - affiliates | $21.9 |
| Non-current liabilities | $3623.0 |

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| | |
|:---|:---|
| **Summarized Statement of Operations Data for Asbury and Guarantor Subsidiaries** | **Summarized Statement of Operations Data for Asbury and Guarantor Subsidiaries** |
| | **For the Year Ended December 31,** |
|  | **2025** |
|  | **(In millions)** |
| Net sales | $17672.9 |
| Gross profit | $3001.0 |
| Income from operations | $808.8 |
| Net income | $457.2 |

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**CRITICAL ACCOUNTING POLICIES AND ESTIMATES** 

Preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosures of contingent assets and liabilities, as of the date of the financial statements, and reported amounts of revenues and expenses during the periods presented. On an ongoing basis, management evaluates their estimates and assumptions and the effects of any such revisions are reflected in the financial statements, in the period in which they are determined to be necessary. Actual outcomes could differ materially from those estimates in a manner that could have a material effect on our consolidated financial statements. Set forth below are the policies and estimates that we have identified as critical to our business operations and understanding our results of operations, based on the high degree of judgment or complexity in their application.

*Goodwill and Manufacturer Franchise Rights*

Goodwill represents the excess cost of an acquired business over the fair market value of its identifiable assets and liabilities. We have determined, based on how we integrate acquisitions into our business, how the components of our business

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share resources and interact with one another, and how we review the results of our operations, that we have several geographic region-based operating segments. We have determined the dealerships in each of our operating segments are components that are aggregated into geographic region-based operating segments which are also our reporting units for the purpose of testing goodwill for impairment, as they (i) have similar economic characteristics, (ii) offer similar products and services (all of our franchised dealerships offer new and used vehicles, parts and service, and arrange for third-party vehicle financing and the sale of insurance products), (iii) have similar customers, (iv) have similar distribution and marketing practices (all of our dealerships distribute products and services through dealership facilities that market to customers in similar ways) and (v) operate under similar regulatory environments. Our TCA segment also represents a reporting unit for the purpose of testing goodwill for impairment.

Our only other significant identifiable intangible assets are our rights under franchise agreements with manufacturers, which are recorded at an individual franchise level. The fair value of our manufacturer franchise rights are determined at the acquisition date, by discounting the projected cash flows specific to each franchise. We have determined that manufacturer franchise rights have an indefinite life as there are no economic, contractual or other factors that limit their useful lives, and they are expected to generate cash flows indefinitely due to the historically long lives of the manufacturers' brand names. Furthermore, to the extent that any agreements evidencing our manufacturer franchise rights would expire, we expect that we would be able to renew those agreements in the ordinary course of business.

We do not amortize goodwill and other intangible assets that are deemed to have indefinite lives. We review goodwill and manufacturer franchise rights for impairment annually as of October 1<sup>st</sup>, or more often if events or circumstances indicate that any impairment may have occurred. We have the option of performing a qualitative assessment of impairment to determine whether any further quantitative assessment for impairment is necessary. The option of whether or not to perform a qualitative assessment is made annually and may vary by reporting unit. Factors we consider in the qualitative assessment include general macroeconomic conditions, industry and market conditions, cost factors, overall financial performance of our reporting units, events or changes affecting the composition or carrying amount of the net assets of our reporting units, sustained decrease in our share price, and other relevant entity-specific events. If we elect to bypass the qualitative assessment or if we determine, on the basis of qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying amount, a quantitative test would be required.

As a result of our annual franchise rights impairment tests as of October 1, 2025, we identified several dealerships with franchise rights carrying values that exceeded their fair values due to the underperformance of certain stores. As a result, we recognized a $115.0 million pre-tax non-cash impairment charge related to our franchise rights intangible assets during the year ended December 31, 2025.

In connection with our annual goodwill impairment tests, we performed qualitative impairment tests of goodwill as of October 1, 2025. For all reporting units, for which a qualitative impairment test was performed as of October 1, 2025, the fair values exceeded their carrying amounts. We believe that the fair value of our reporting units is substantially in excess of its carrying amount.

We also recorded a franchise rights impairment charge of $26.0 million during the year ended December 31, 2025 related to dealerships that met the assets held for sale criteria during 2025. The quantitative impairment test of the disposal group included a comparison of the estimated fair value, less costs to sell, to the carrying value of the disposal group. This asset impairment charge is reflected in asset impairments in our consolidated statements of income.

In total, we recognized asset impairments of $141.0 million, $149.5 million and $117.2 million during the years ended December 31, 2025, 2024, and 2023, respectively.

We continue to monitor developments related to macroeconomic conditions and the performance of our stores and reporting units. It is reasonably possible that future developments could have a negative effect on the estimates and assumptions utilized in our impairment assessments and could result in material impairment charges in future periods.

**Item 7A. Quantitative and Qualitative Disclosures About Market Risk**

**Interest Rate Risk**

We are exposed to risk from changes in interest rates on a significant portion of our outstanding indebtedness. Based on $2.62 billion of total variable interest rate debt, which includes our floor plan notes payable, amounts drawn on our used vehicle floor plan, revolver and certain mortgage liabilities, outstanding as of December 31, 2025, a 100 basis point change in interest rates would result in a change of $26.2 million in annual interest expense.

We periodically receive floor plan assistance from certain automobile manufacturers, which is primarily accounted for as a reduction in our new vehicle inventory cost. Floor plan assistance reduced our cost of sales for the years ended December 31,

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

2025, 2024, and 2023, by $113.4 million, $99.7 million and $87.0 million, respectively. We cannot provide assurance as to the future amount of floor plan assistance and these amounts may be negatively impacted due to future changes in interest rates.

As part of our strategy to mitigate our exposure to fluctuations in interest rates, we have various interest rate swap agreements. All of our interest rate swaps qualify for cash flow hedge accounting treatment and do not contain any ineffectiveness.

As of December 31, 2025 we had four interest rate swap agreements. These swaps are designed to provide a hedge against changes in variable rate cash flows regarding fluctuations in SOFR. The following table provides information on the attributes of each swap as of December 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Inception Date** | **Notional Principal at Inception** | **Notional Value as of December 31, 2025** | **Notional Principal at Maturity** | **Maturity Date** |
| | **(In millions)** | **(In millions)** | **(In millions)** | |
| January 2022 | $300.0 | $243.8 | $228.8 | December 2026 |
| January 2022 | $250.0 | $250.0 | $250.0 | December 2031 |
| May 2021 | $184.4 | $151.2 | $110.6 | May 2031 |
| July 2020 | $93.5 | $65.8 | $50.6 | December 2028 |

---

These interest rate swaps are marked to market at each reporting date and any unrealized gains or losses are included in accumulated other comprehensive income and reclassified to other interest expense in the same period or periods during which the hedged transactions affect earnings. For additional information about the effect of our derivative instruments, please refer to Note 15 "Financial Instruments and Fair Value" within the accompanying consolidated financial statements.

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

**Item 8. Financial Statements and Supplementary Data**

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
| | **Page** |
| <u>[Reports of Independent Registered Public Accounting Firm (PCAOB ID:](#iba5d00bfba2b47ccbd1306c9caa26e29_70)</u>42) | <u>[61](#iba5d00bfba2b47ccbd1306c9caa26e29_70)</u> |
| <u>[Consolidated Balance Sheets as of December 31, 2025 and 2024](#iba5d00bfba2b47ccbd1306c9caa26e29_76)</u> | <u>[65](#iba5d00bfba2b47ccbd1306c9caa26e29_76)</u> |
| <u>[Consolidated Statements of Income for the Years Ended December 31, 2025, 2024, and 2023](#iba5d00bfba2b47ccbd1306c9caa26e29_79)</u> | <u>[66](#iba5d00bfba2b47ccbd1306c9caa26e29_79)</u> |
| <u>[Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2025, 2024, and 2023](#iba5d00bfba2b47ccbd1306c9caa26e29_82)</u> | <u>[67](#iba5d00bfba2b47ccbd1306c9caa26e29_82)</u> |
| <u>[Consolidated Statements of Shareholders' Equity for the Years Ended December 31, 2025, 2024, and 2023](#iba5d00bfba2b47ccbd1306c9caa26e29_85)</u> | <u>[68](#iba5d00bfba2b47ccbd1306c9caa26e29_85)</u> |
| <u>[Consolidated Statements of Cash Flows for the Years Ended December 31, 2025, 2024, and 2023](#iba5d00bfba2b47ccbd1306c9caa26e29_88)</u> | <u>[69](#iba5d00bfba2b47ccbd1306c9caa26e29_88)</u> |
| <u>[Notes to Consolidated Financial Statements](#iba5d00bfba2b47ccbd1306c9caa26e29_91)</u> | <u>[71](#iba5d00bfba2b47ccbd1306c9caa26e29_91)</u> |

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and the Board of Directors of Asbury Automotive Group, Inc.

**Opinion on the Financial Statements** 

We have audited the accompanying consolidated balance sheets of Asbury Automotive Group, Inc. (the Company) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, shareholders' equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 20, 2026 expressed an unqualified opinion thereon.

**Basis for Opinion** 

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matter**

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

Valuation of Manufacturer Franchise Rights

---

| | |
|:---|:---|
| *Description of the Matter* | At December 31, 2025, the manufacturer franchise rights balance was $2.1 billion. As disclosed in Note 10 of the consolidated financial statements, the manufacturer franchise rights are assessed for impairment annually as of October 1st, or more often if events or circumstances indicate that impairment may have occurred. If the fair value of a franchise right is less than its carrying amount, an impairment loss is recognized in an amount equal to the difference. <br>Auditing the Company's calculation of the fair value for certain manufacturer franchise rights based on our risk assessment procedures was complex and required significant judgment. In particular, the determination of the fair value of certain manufacturer franchise rights described above using the discounted cash flows method required management to develop certain significant assumptions, including future EBITDA margins and weighted average cost of capital, which are forward looking and affected by expectations about economic conditions, industry factors and dealer-specific factors.  |
| *How We Addressed the Matter in Our Audit* | We obtained an understanding, evaluated the design and tested the operating effectiveness of the Company's controls over the certain manufacturer franchise rights fair value estimates described above, including controls over the significant assumptions described above.<br>To test the fair value of certain manufacturer franchise rights described above, we tested the significant assumptions described above. We compared those significant assumptions to current industry, market and economic trends, as well as to the Company's historical results. In addition, we assessed the accuracy of the Company's projections by comparing them to actual operating results. We also performed a sensitivity analysis of the significant assumptions described above to evaluate the potential change in the fair value of certain manufacturer franchise rights resulting from changes in underlying assumptions. We also involved our valuation specialists to assist in evaluating the valuation methodologies and certain significant assumptions used in the valuation models. |

---

/s/ Ernst & Young LLP

We have served as the Company's auditor since 2008.

Atlanta, Georgia

February 20, 2026

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and the Board of Directors of Asbury Automotive Group, Inc.

**Opinion on Internal Control Over Financial Reporting** 

We have audited Asbury Automotive Group, Inc.'s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Asbury Automotive Group, Inc. (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on the COSO criteria.

As indicated in the accompanying Management's Report on Internal Control Over Financial Reporting, management's assessment of and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of The Herb Chambers Companies, which is included in the 2025 consolidated financial statements of the Company and constituted $1.89 billion of total assets as of December 31, 2025 and $1.16 billion of revenues for the year then ended. Our audit of internal control over financial reporting of the Company also did not include an evaluation of the internal control over financial reporting of The Herb Chambers Companies.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, shareholders' equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and our report dated February 20, 2026 expressed an unqualified opinion thereon.

**Basis for Opinion** 

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

**Definition and Limitations of Internal Control Over Financial Reporting** 

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

Atlanta, Georgia

February 20, 2026

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

**ASBURY AUTOMOTIVE GROUP, INC.** 

**CONSOLIDATED BALANCE SHEETS**

**(In millions, except par value and share data)**

---

| | | |
|:---|:---|:---|
| | **As of December 31,** | **As of December 31,** |
| | **2025** | **2024** |
| **ASSETS** |  |  |
| CURRENT ASSETS: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $40.4 | $69.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short term investments | 0.5 | 14.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts-in-transit, net | 239.2 | 263.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 294.6 | 285.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories, net | 2135.8 | 1978.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assets held for sale | 268.9 | 174.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 400.9 | 351.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 3380.2 | 3137.9 |
| INVESTMENTS | 414.7 | 334.2 |
| PROPERTY AND EQUIPMENT, net | 3070.4 | 2550.7 |
| OPERATING LEASE RIGHT-OF-USE ASSETS | 240.6 | 220.1 |
| GOODWILL | 2281.3 | 2044.7 |
| INTANGIBLE FRANCHISE RIGHTS | 2097.6 | 1911.7 |
| OTHER LONG-TERM ASSETS | 133.3 | 137.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $11618.2 | $10337.0 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| CURRENT LIABILITIES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Floor plan notes payable—trade, net | $343.1 | $349.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Floor plan notes payable—non-trade, net | 1683.9 | 1344.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current maturities of long-term debt | 479.2 | 114.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current maturities of operating leases | 27.6 | 28.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 780.3 | 761.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue—current | 243.6 | 235.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liabilities associated with assets held for sale | 1.8 | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 3559.5 | 2836.3 |
| LONG-TERM DEBT | 3092.8 | 3023.9 |
| LONG-TERM LEASE LIABILITY | 221.6 | 200.0 |
| DEFERRED REVENUE | 584.6 | 530.5 |
| DEFERRED INCOME TAXES | 210.6 | 187.7 |
| OTHER LONG-TERM LIABILITIES | 57.1 | 56.4 |
| COMMITMENTS AND CONTINGENCIES (Note 21) |  |  |
| SHAREHOLDERS' EQUITY: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, $.01 par value, 10,000,000 shares authorized; none issued or outstanding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, $.01 par value, 90,000,000 shares authorized; 41,338,419 and 41,649,426 shares issued, including shares held in treasury, respectively | 0.4 | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 1327.6 | 1305.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 3616.2 | 3218.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury stock, at cost; 22,109,690 and 22,065,478 shares, respectively | (1092.8) | (1079.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | 40.6 | 56.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity | 3891.9 | 3502.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareholders' equity | $11618.2 | $10337.0 |

---

See accompanying Notes to Consolidated Financial Statements

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

**ASBURY AUTOMOTIVE GROUP, INC.**

**CONSOLIDATED STATEMENTS OF INCOME**

**(In millions, except per share data)**

---

| | | | |
|:---|:---|:---|:---|
| | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
| | **2025** | **2024** | **2023** |
| REVENUE: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New vehicle | $9496.2 | $8849.7 | $7630.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Used vehicle | 5225.4 | 5218.2 | 4414.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parts and service | 2506.8 | 2354.7 | 2081.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance and insurance, net | 770.6 | 766.0 | 676.2 |
| TOTAL REVENUE | 17999.0 | 17188.6 | 14802.7 |
| COST OF SALES: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New vehicle | 8874.2 | 8209.3 | 6927.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Used vehicle | 4966.3 | 4972.7 | 4150.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parts and service | 1034.3 | 1003.5 | 931.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance and insurance | 52.5 | 54.4 | 37.9 |
| TOTAL COST OF SALES | 14927.3 | 14240.0 | 12046.9 |
| GROSS PROFIT | 3071.7 | 2948.6 | 2755.8 |
| OPERATING EXPENSES: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative | 1987.6 | 1888.5 | 1617.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 82.4 | 75.0 | 67.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset impairments | 141.0 | 149.5 | 117.2 |
| INCOME FROM OPERATIONS | 860.6 | 835.6 | 953.5 |
| OTHER EXPENSES (INCOME): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Floor plan interest expense | 91.2 | 89.9 | 9.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other interest expense, net | 187.5 | 179.1 | 156.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on dealership divestitures, net | (80.2) | (8.6) | (13.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expenses, net | 198.4 | 260.3 | 152.2 |
| INCOME BEFORE INCOME TAXES | 662.2 | 575.3 | 801.3 |
| Income tax expense | 170.2 | 145.0 | 198.8 |
| NET INCOME | $492.0 | $430.3 | $602.5 |
| EARNINGS PER COMMON SHARE: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic— |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Income | $25.20 | $21.58 | $28.87 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted— |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Income | $25.13 | $21.50 | $28.74 |
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | 19.5 | 19.9 | 20.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performance share units | 0.1 | 0.1 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | 19.6 | 20.0 | 21.0 |

---

See accompanying Notes to Consolidated Financial Statements

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

**ASBURY AUTOMOTIVE GROUP, INC.**

**CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME**

**(In millions)**

---

| | | | |
|:---|:---|:---|:---|
| | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
| | **2025** | **2024** | **2023** |
| Net income | $492.0 | $430.3 | $602.5 |
| Other comprehensive income (loss) - net of tax: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of cash flow swaps | (29.6) | (3.2) | (22.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax benefit associated with cash flow swaps | 7.1 | 0.9 | 5.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains (losses) on available-for-sale debt securities | 8.1 | (2.5) | 5.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax (expense) benefit associated with available-for-sale debt securities | (1.9) | 0.6 | (1.1) |
| Comprehensive income | $475.7 | $426.1 | $589.1 |

---

See accompanying Notes to Consolidated Financial Statements

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

**ASBURY AUTOMOTIVE GROUP, INC.**

**CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY**

**(Dollars in millions)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | **Additional<br>Paid-in<br>Capital** | **Retained<br>Earnings** | **Treasury Stock** | **Treasury Stock** | **Accumulated<br>Other<br>Comprehensive<br>Income (Loss)** | **Total** |
| | **Shares** | **Amount** | **Additional<br>Paid-in<br>Capital** | **Retained<br>Earnings** | **Shares** | **Amount** | **Accumulated<br>Other<br>Comprehensive<br>Income (Loss)** | **Total** |
| **Balances, December 31, 2022** | 43593809 | $0.4 | $1281.4 | $2610.1 | 22024479 | $(1063.0) | $74.4 | $2903.5 |
| Comprehensive Income: |  |  |  |  |  |  |  |  |
| Net income |  |  |  | 602.5 |  |  |  | 602.5 |
| Change in fair value of cash flow swaps, net of reclassification adjustment and $5.1 million tax benefit |  |  |  |  |  |  | (17.5) | (17.5) |
| Unrealized gain on changes in fair value of debt securities, net of $1.1 million tax expense |  |  |  |  |  |  | 4.1 | 4.1 |
| Comprehensive income |  |  |  | 602.5 |  |  | (13.4) | 589.1 |
| Share-based compensation |  |  | 23.5 |  |  |  |  | 23.5 |
| Issuance of common stock, net of forfeitures, in connection with share-based payment arrangements | 128563 |  |  |  |  |  |  |  |
| Share issues (repurchases) |  |  |  |  | 1316167 | (260.6) |  | (260.6) |
| Repurchase of common stock associated with net share settlements of employee share-based awards |  |  |  |  | 48262 | (11.4) |  | (11.4) |
| Retirement of common stock | (1370371) |  | (16.5) | (251.1) | (1370371) | 267.7 |  |  |
| **Balances, December 31, 2023** | 42352001 | $0.4 | $1288.4 | $2961.5 | 22018537 | $(1067.3) | $61.1 | $3244.1 |
| Comprehensive Income: |  |  |  |  |  |  |  |  |
| Net income |  |  |  | 430.3 |  |  |  | 430.3 |
| Change in fair value of cash flow swaps, net of reclassification adjustment and $0.9 million tax benefit |  |  |  |  |  |  | (2.3) | (2.3) |
| Unrealized loss on changes in fair value of debt securities, net of $0.6 million tax benefit |  |  |  |  |  |  | (1.9) | (1.9) |
| Comprehensive income |  |  |  | 430.3 |  |  | (4.2) | 426.1 |
| Share-based compensation |  |  | 26.7 |  |  |  |  | 26.7 |
| Issuance of common stock, net of forfeitures, in connection with share-based payment arrangements | 127722 |  |  |  |  |  |  |  |
| Share issues (repurchases) |  |  |  |  | 830297 | (184.6) |  | (184.6) |
| Repurchase of common stock associated with net share settlements of employee share-based awards |  |  |  |  | 46941 | (10.2) |  | (10.2) |
| Retirement of common stock | (830297) |  | (10.0) | (173.0) | (830297) | 183.0 |  |  |
| **Balances, December 31, 2024** | 41649426 | $0.4 | $1305.1 | $3218.9 | 22065478 | $(1079.2) | $56.8 | $3502.1 |
| Comprehensive Income: |  |  |  |  |  |  |  |  |
| Net income |  |  |  | 492.0 |  |  |  | 492.0 |
| Change in fair value of cash flow swaps, net of reclassification adjustment and $7.1 million tax benefit |  |  |  |  |  |  | (22.5) | (22.5) |
| Unrealized gain on changes in fair value of debt securities, net of $1.9 million tax expense |  |  |  |  |  |  | 6.2 | 6.2 |
| Comprehensive income |  |  |  | 492.0 |  |  | (16.3) | 475.7 |
| Share-based compensation |  |  | 27.7 |  |  |  |  | 27.7 |
| Issuance of common stock, net of forfeitures, in connection with share-based payment arrangements | 121745 |  |  |  |  |  |  |  |
| Share issues (repurchases) |  |  |  |  | 432752 | (99.9) |  | (99.9) |
| Repurchase of common stock associated with net share settlements of employee share-based awards |  |  |  |  | 44212 | (13.7) |  | (13.7) |
| Retirement of common stock | (432752) |  | (5.2) | (94.7) | (432752) | 99.9 |  |  |
| **Balances, December 31, 2025** | 41338419 | $0.4 | $1327.6 | $3616.2 | 22109690 | $(1092.8) | $40.6 | $3891.9 |

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See accompanying Notes to Consolidated Financial Statements

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

**ASBURY AUTOMOTIVE GROUP, INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(In millions)**

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| | | | |
|:---|:---|:---|:---|
| | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
| | **2025** | **2024** | **2023** |
| CASH FLOW FROM OPERATING ACTIVITIES: |  |  |  |
| Net income | $492.0 | $430.3 | $602.5 |
| Adjustments to reconcile net income to net cash provided by operating activities— |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 82.4 | 75.0 | 67.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 27.7 | 26.7 | 23.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 28.2 | 52.7 | 39.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset impairments | 141.0 | 149.5 | 117.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loaner vehicle amortization | 56.8 | 47.2 | 34.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on divestitures, net | (80.2) | (8.6) | (13.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in right-of-use asset | 30.8 | 28.7 | 26.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other adjustments, net | 5.1 | 6.7 | (4.0) |
| Changes in operating assets and liabilities, net of acquisitions and divestitures— |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contracts-in-transit | 24.6 | 15.9 | (58.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (9.3) | (60.0) | (54.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 72.7 | (230.2) | (575.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | (67.0) | (15.3) | (133.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Floor plan notes payable—trade, net | (6.8) | 154.8 | 144.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 62.2 | 29.3 | 22.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | (36.0) | 12.8 | 119.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | (30.2) | (27.2) | (26.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other long-term assets and liabilities, net | (18.7) | (17.1) | (18.8) |
| Net cash provided by operating activities | 775.2 | 671.2 | 313.0 |
| CASH FLOW FROM INVESTING ACTIVITIES: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures—excluding real estate | (186.0) | (162.6) | (142.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures—real estate | (19.3) | (145.6) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of previously leased real estate |  | (11.9) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisitions | (1761.8) | (4.7) | (1500.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from dealership divestitures | 566.5 | 196.3 | 30.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of debt securities—available-for-sale | (189.4) | (165.0) | (195.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale of debt securities—available-for-sale | 132.8 | 149.8 | 60.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale of equity securities |  |  | 51.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale of assets |  | 6.5 | 16.3 |
| Net cash (used in) investing activities | (1457.2) | (137.2) | (1678.4) |
| CASH FLOW FROM FINANCING ACTIVITIES: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Floor plan borrowings—non-trade | 10382.0 | 9445.7 | 8385.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Floor plan borrowings—acquisitions | 262.7 |  | 256.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Floor plan repayments—non-trade | (10214.9) | (9657.3) | (7059.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Floor plan repayments—divestitures | (90.7) | (34.1) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from borrowings | 546.5 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayments of borrowings | (234.1) | (71.4) | (126.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from revolving credit facility | 2152.7 | 1213.5 | 329.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayments of revolving credit facility | (2032.7) | (1213.5) | (329.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment of debt issuance costs | (5.7) |  | (1.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of treasury stock | (99.9) | (183.0) | (267.7) |

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

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| | | | |
|:---|:---|:---|:---|
| | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
| | **2025** | **2024** | **2023** |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchases of common stock, including amounts associated with net share settlements of employee share-based awards | (12.8) | (10.2) | (11.4) |
| Net cash provided by (used in) financing activities | 653.1 | (510.3) | 1175.8 |
| Net (decrease) increase in cash and cash equivalents | (29.0) | 23.7 | (189.6) |
| CASH AND CASH EQUIVALENTS, beginning of period | 69.4 | 45.7 | 235.3 |
| CASH AND CASH EQUIVALENTS, end of period | $40.4 | $69.4 | $45.7 |

---

See Note 18 for supplemental cash flow information

See accompanying Notes to Consolidated Financial Statements

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

**ASBURY AUTOMOTIVE GROUP, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(December 31, 2025, 2024, and 2023)**

**1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

Asbury Automotive Group, Inc., a Delaware corporation organized in 2002 (the "Company"), is one of the largest automotive retailers in the United States. Our store operations are conducted by our subsidiaries.

Our operating results are generally subject to seasonal variations. Demand for new vehicles is generally highest during the second and third quarters of each year and, accordingly, we expect our revenues to generally be higher during these periods. In addition, we typically experience higher sales of luxury vehicles in the fourth quarter, which have higher average selling prices and gross profit per vehicle retailed. Revenues and operating results may be impacted significantly from quarter to quarter by changing economic conditions, inventory availability, vehicle manufacturer incentive programs, or adverse weather events.

*Basis of Presentation*

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"), and reflect the consolidated accounts of the Company and our wholly owned subsidiaries. All intercompany transactions have been eliminated in consolidation. If necessary, reclassifications of amounts previously reported have been made to the accompanying consolidated financial statements in order to conform to current presentation. Amounts presented have been calculated using non-rounded amounts for all periods presented and therefore certain amounts may not compute.

*Use of Estimates*

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the periods presented. Actual results could differ materially from these estimates. Estimates and assumptions are reviewed quarterly, and the effects of any revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Estimates made in the accompanying consolidated financial statements include, but are not limited to, those relating to inventory valuation reserves, reserves for chargebacks against revenue recognized from the sale of finance and insurance products, reserves for self-insurance programs, and certain assumptions related to goodwill and dealership franchise rights intangible assets.

*Cash and Cash Equivalents*

Cash and cash equivalents include investments in money market accounts and short-term certificates of deposit, which have maturity dates of less than 90 days when purchased.

*Restricted Cash and Securities*

TCA places securities on statutory deposit with certain state agencies to retain the right to do business in those states. Securities held on deposit with various state regulatory authorities had a fair value of $4.1 million at December 31, 2025. These securities are reflected in investments in our consolidated balance sheets.

*Short-Term Investments*

Short-term investments consist of debt securities that are callable or have a maturity date within the next 12 months and are classified as current assets. Debt securities classified as short-term investments are designated as available-for-sale as management intends to hold these securities for indefinite periods of time or may sell the securities in response to changes in interest rates, prepayments, or other similar factors. Available-for-sale debt securities are reported at fair market value with any unrealized gain or loss, net of applicable income tax, reported in other comprehensive income, as a separate component of

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

shareholders' equity. Premiums and discounts on debt securities classified as short-term investments are amortized or accreted using the effective interest method over the period from the purchase date to the expected maturity or call date of the related security and are reported in net income.

*Investments*

Investments consist of available-for-sale debt securities. These securities are classified as non-current investments as they are not intended to fund current operations or have stated call dates or maturity dates beyond the next 12 months.

Debt securities classified as non-current investments are designated as available-for-sale as management intends to hold these securities for indefinite periods of time or may sell the securities in response to changes in interest rates, prepayments, or other similar factors. Available-for-sale debt securities included in non-current investments are reported at fair market value with any unrealized gain or loss, net of applicable income tax, reported in other comprehensive income, as a separate component of shareholders' equity. Premiums and discounts on debt securities included in non-current investments are amortized or accreted, as applicable, using the effective interest method over the period from the purchase date to the expected maturity or call date of the related security and are reported in net income.

We review the debt securities portfolio at the security level on a quarterly basis for potential credit losses, which takes into consideration numerous factors. Some factors evaluated include changes in credit ratings, financial conditions of the issuer, recent payment activity, and other industry specific economic conditions. If a security is considered to have a potential credit loss, we compare the present value of expected cash flows to the amortized cost basis of the security to estimate the allowance for credit losses. The amount of the allowance is limited to the gross unrealized loss on an individual security. An unrealized loss on a debt security is generally considered to not be related to credit when the fair value of the security is below the carrying value of the security primarily due to changes in risk-free interest rates and when there has not been a significant deterioration in the financial condition of the issuer. If the Company no longer has the intent or ability to hold a security in an unrealized loss position until recovery of the security's cost basis, a loss is realized immediately in net income.

*Contracts-In-Transit*

Contracts-in-transit represent receivables from third-party finance companies for the portion of new and used vehicle purchase price financed by customers through sources arranged by us.

*Inventories*

Inventories are stated at the lower of cost and net realizable value. We use the specific identification method to value vehicle inventories and parts and accessories are valued at the lower of cost or net realizable value. Our new vehicle sales history indicates that the vast majority of the new vehicles we sell are sold for, or in excess of, our cost to purchase those vehicles. Therefore, we generally do not maintain a reserve for new vehicle inventory. We maintain a reserve for used vehicle inventory where cost basis exceeds net realizable value. In assessing lower of cost and net realizable value for used vehicles, we consider (i) the aging of our used vehicles, (ii) historical sales experience of used vehicles, and (iii) current market conditions and trends in used vehicle sales. We also review and consider the following metrics related to used vehicle sales (both on a recent and longer-term historical basis): (i) days of supply in our used vehicle inventory, (ii) used vehicle units sold at less than original cost as a percentage of total used vehicles sold, and (iii) average vehicle selling price of used vehicle units sold at less than original cost. We then determine the appropriate level of reserve required to reduce our used vehicle inventory to the lower of cost and net realizable value, and record the resulting adjustment in the period in which we determine a loss has occurred. The level of reserve determined to be appropriate for each reporting period is considered to be a permanent inventory write-down, and therefore is only released upon the sale of the related inventory.

We receive assistance from certain automobile manufacturers in the form of advertising and floor plan interest credits. Manufacturer advertising credits that are reimbursements of costs associated with specific advertising programs are recognized as a reduction of advertising expense in the period they are earned. All other manufacturer advertising and certain floor plan interest credits are accounted for as purchase discounts, and are recorded as a reduction of inventory and recognized as a reduction to new vehicle cost of sales in the accompanying consolidated statements of income in the period the related vehicle is sold.

*Property and Equipment*

Property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives. Depreciation is included in depreciation and amortization on the accompanying consolidated statements of income. Leasehold

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improvements are capitalized and amortized over the lesser of the remaining lease term or the useful life of the related asset. The ranges of estimated useful lives are as follows (in years):

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| | |
|:---|:---|
| Buildings and improvements | 10-40 |
| Machinery and equipment | 5-10 |
| Furniture and fixtures | 3-10 |
| Company vehicles | 3-5 |

---

Expenditures for major additions or improvements, which extend the useful lives of assets, are capitalized. Minor replacements, maintenance and repairs, which do not improve or extend the lives of such assets, are expensed as incurred. We capitalize interest on borrowings during the active construction period of capital projects. Capitalized interest is added to the cost of the assets and is depreciated over the estimated useful lives of the assets.

We review property and equipment for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. When we test our long-lived assets for impairment, we first compare the carrying amount of the underlying assets to their net recoverable value by reviewing the undiscounted cash flows expected from the use and eventual disposition of the underlying assets. If the carrying amount of the underlying assets is less than their net recoverable value, then we calculate an impairment equal to the excess of the carrying amount over the fair market value, and the impairment loss would be charged to operations in the period identified.

*Acquisitions*

Acquisitions are accounted for under the acquisition method of accounting and the assets acquired and liabilities assumed are recorded at their fair value at the acquisition date. Results of acquired businesses, which are primarily dealerships, are included in our accompanying consolidated statements of income commencing on the date of acquisition. Our acquisitions are accounted for such that the assets acquired and liabilities assumed are recognized at their acquisition date fair values, with any excess of the consideration transferred over the estimated fair values of the identifiable net assets acquired recorded as goodwill. Goodwill is an asset representing operational synergies and future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Upon the completion of purchase accounting, the fair value of our manufacturer franchise rights are determined as of the acquisition date, by discounting the projected cash flows specific to each franchise. Included in this analysis are market participant assumptions related to the cash flows directly attributable to the franchise rights, including year-over-year and terminal growth rates, working capital requirements, weighted average cost of capital and future EBITDA margins.

*Goodwill and Franchise Rights*

Goodwill represents the excess cost of an acquired business over the estimated fair market value of its identifiable net assets. We have determined that, based on how we integrate acquisitions into our business, how the components of our business share resources and interact with one another, and how we review the results of our operations, that we have several geographic region operating segments which consist of our dealerships. We have determined that the dealerships in each of our operating segments are components that are aggregated into three geographic region reporting units for the purpose of testing goodwill for impairment, as they (i) have similar economic characteristics, (ii) offer similar products and services (all of our dealerships offer new and used vehicles, service, parts and third-party finance and insurance products), (iii) have similar customers, (iv) have similar distribution and marketing practices (all of our dealerships distribute products and services through dealership facilities that market to customers in similar ways), and (v) operate under similar regulatory environments. Our dealership operating segments are aggregated into our Dealerships reportable segment. Goodwill associated with TCA is tested for impairment at the operating segment level which is the same as the reporting unit for this business.

Our only significant identifiable intangible assets, other than goodwill, are our rights under franchise agreements with manufacturers, which are recorded at an individual franchise level. The fair value of our manufacturer franchise rights are determined as of the acquisition date, by discounting the projected cash flows specific to each franchise. We have determined that manufacturer franchise rights have an indefinite life, as there are no economic, contractual or other factors that limit their useful lives, and they are expected to generate cash flows indefinitely due to the historically long lives of the manufacturers' brand names. Furthermore, to the extent that any agreements evidencing our manufacturer franchise rights would expire, we expect that we would be able to renew those agreements in the ordinary course of business.

Goodwill and manufacturer franchise rights are deemed to have indefinite lives and therefore are not subject to amortization. We review goodwill and manufacturer franchise rights for impairment annually as of October 1<sup>st</sup>, or more often if events or circumstances indicate that impairment may have occurred. We are subject to financial statement risk to the extent

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that goodwill becomes impaired due to decreases in the fair value of our automotive retail business or manufacturer franchise rights become impaired due to decreases in the fair value of our individual franchises.

*Debt Issuance Costs*

Debt issuance costs are presented as a contra-liability within current maturities of long-term debt or long-term debt on our consolidated balance sheets, except for debt issuance costs associated with our line-of-credit arrangements, which are presented as an asset within other current assets or other long-term assets on our consolidated balance sheets. Debt issuance costs are amortized to floor plan interest expense and other interest expense, net in the accompanying consolidated statements of income through maturity using the effective interest method or the straight-line method for our line-of-credit arrangements.

*Derivative Instruments and Hedging Activities*

From time to time, we utilize derivative financial instruments to manage our interest rate risk. The types of risks hedged are those relating to the variability of cash flows caused by fluctuations in interest rates. We document our risk management strategy and assess hedge effectiveness at each interest rate swap's inception and during the term of each hedge. Derivatives are reported at fair value on the accompanying consolidated balance sheets.

The changes in fair value on our hedges is reported as a component of accumulated other comprehensive loss on the accompanying consolidated balance sheets, and reclassified to other interest expense, net in the accompanying consolidated statements of income in the period during which the hedged transaction affects earnings.

*Self-insurance Programs*

We are self-insured for most of our employee medical claims and maintain stop-loss insurance for large-dollar individual claims. We have high-deductible insurance programs for workers compensation, property and general liability claims. We maintain and review our claim and loss history to assist in assessing our expected future liability for these claims. We also use professional service providers, such as account administrators and actuaries, to help us accumulate and assess this information. Provisions for retained losses and deductibles are made by charges to expense based upon periodic evaluations of the estimated ultimate liabilities on reported and unreported claims.

*Revenue Recognition*

We recognize revenue in accordance with ASC 606, *Revenue from Contracts with Customers* ("Topic 606"). Under that guidance, the transaction price is attributed to the underlying performance obligations in the contract and revenue is deferred and recognized as income as the Company satisfies the performance obligations in the contract. Incremental costs of obtaining a contract with a customer are capitalized and amortized to the extent that the Company expects to recover those costs. The Company satisfies performance obligations either over time or at a point in time as discussed in further detail below. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised good or performing a service. Sales and other taxes we collect, concurrent with revenue-producing activities, are excluded from revenue.

*New vehicle and used vehicle retail*

Revenue from the sale of new and used vehicles is recognized when the terms of the customer contract are satisfied which generally occurs with the signing of the sales contract and transfer of control of the vehicle to the customer. Payment is generally received at the time of sale or from a third-party financial institution within a short period of time following the sale of the vehicle. Amounts due from third-party financial institutions are reflected in contracts-in-transit or vehicle receivables within accounts receivable, net on our consolidated balance sheets. Costs associated with incidental items that are immaterial in the context of the contract are accrued at the time of sale.

*Used vehicle wholesale* 

Proceeds from the sale of these vehicles are recognized in used vehicle revenue upon transfer of control to end-users at auction.

*Sale of vehicle parts and accessories*

The Company recognizes revenue upon transfer of control to the customer which occurs at a point in time. Payment is typically received when control of the parts and accessories transfers to the customer or within 30 days of such time. When the Company performs shipping and handling activities after the transfer of control to the customer (e.g., when control transfers

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prior to delivery), they are considered as fulfillment activities, and accordingly, the costs are accrued when the related revenue is recognized.

 *Vehicle repair and maintenance services* 

The Company provides vehicle repair and maintenance services to its customers pursuant to the terms and conditions included within the customer contract ("repair order"). Payments for services are typically received upon completion of the services or within 30 days following the completion of the services. Satisfaction of this performance obligation creates an asset with no alternative use for which an enforceable right to payment for performance to date exists within our contractual agreements. As such, the Company recognizes revenue over time as the Company satisfies its performance obligation. Additionally, the Company has determined that parts and labor are not individually distinct in the context of a repair order and therefore treated as a single performance obligation. Certain of these services are provided by the Dealerships segment to TCA customers in connection with claims related to TCA's vehicle protection products. Revenues recorded by the Dealerships segment and the associated claims expense recorded by the TCA segment are eliminated upon consolidation.

*Finance and Insurance, net* 

Within the Dealerships segment, we receive commissions from third-party lending and insurance institutions for arranging customer financing and from the sale of vehicle service contracts, guaranteed asset protection debt cancellation, and other products, to end-users. In addition, we record commissions received from our TCA segment related to the sale of TCA's various vehicle protection F&I products. TCA offers extended vehicle service contracts, prepaid maintenance contracts, key replacement contracts, guaranteed asset protection contracts, paintless dent repair contracts, appearance protection contracts, tire and wheel, and lease wear and tear contracts. In addition, TCA provides the required contractual liability insurance if needed. The majority of these service contracts are sold through affiliated automobile dealerships. Finance and insurance commission revenue is recognized at the point of sale since our performance obligation is to arrange financing or facilitating the sale of a third party's products or services to our customers.

The dealerships commission arrangements with TCA, third-party lenders and insurance administrators consists of fixed ("upfront") and variable consideration. Variable consideration includes commission chargebacks ("chargebacks") in the event a contract is prepaid, defaulted upon, or terminated by the end-user. The Company reserves for future chargebacks based on historical chargeback experience and the termination provisions of the applicable contract, and these reserves are established in the same period that the related revenue is recognized. Commissions revenue and related reserves for future chargebacks in connection with the sale of TCA F&I products by our dealerships, are eliminated in consolidation.

We also participate in future profits pursuant to retrospective commission arrangements, which meet the definition of variable consideration, for certain insurance products associated with a third-party portfolio. The Company estimates the amount of variable consideration to be included in the transaction price based on historical payment trends and further constrains the variable consideration such that it is probable that a significant reversal of previously recognized revenue will not occur. In making these assessments the Company considers the likelihood and magnitude of a potential reversal of revenue and updates its assessment when uncertainties associated with the constraint are removed.

Within our TCA segment, all revenue, other than investment and interest income, is the result of contracts with customers. Each contract is considered to have a single performance obligation which extends over the life of the contract. Revenue is recognized ratably over the contract term based on earnings factors that align with the performance obligation. We capitalize costs to obtain customer contracts, employee sales commissions, and amortize those costs over the estimated life of the contract. Amortization of costs to obtain customer contracts is included in selling, general and administrative expenses. The portion of commissions that are paid to affiliated dealerships are eliminated upon consolidation. Unearned premium reserves are established to cover the unexpired portion of premiums written.

*Deferred Revenue*

We earn and recognize premium revenue related to the TCA segment over the period of the related service contract. Accordingly, we record deferred revenue and we ratably recognize revenue over the service contract period.

*Unpaid Losses and Loss Adjustment Expense Reserve*

Losses and loss adjustment expense reserves represent management's best estimate of the ultimate net cost of all reported and unreported losses incurred through December 31, 2025. The Company does not discount liabilities for unpaid losses or unpaid loss adjustment expense reserves. The reserves for unpaid losses and loss adjustment expenses are estimated using individual case-basis valuation and statistical analysis. Those estimates are subject to the effects of trends in loss severity and frequency. Although considerable variability is inherent in such estimates, management believes the reserves for losses and loss

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adjustment expenses are adequate. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes known; such adjustments are included in income from operations.

Claims are counted when incidents that may result in a liability are reported and are based on policy coverage.

*Internal Profit*

Revenues and expenses associated with internal work performed by our parts and service departments on new and used vehicle inventory are eliminated in consolidation. The gross profit earned by our parts and service departments for internal work performed is included as a reduction of parts and service cost of sales on the accompanying consolidated statements of income upon the sale of the vehicle. The costs incurred by our new and used vehicle departments for work performed by our parts and service departments is included in either new vehicle cost of sales or used vehicle cost of sales on the accompanying consolidated statements of income, depending on the classification of the vehicle serviced. We eliminate the internal profit on vehicles that remain in inventory at period end.

*Intersegment Eliminations*

TCA's vehicle protection products are sold through affiliated dealerships and the revenue from the related commissions are included in finance and insurance, net revenues in the Dealerships segment before consolidation. The corresponding claims expense incurred and the amortization of deferred acquisition costs is recorded as a cost of sales in the TCA segment. The Dealerships segment also provides vehicle repair and maintenance services to TCA customers in connection with claims related to TCA's vehicle protection products. Revenues recorded by the Dealerships segment and the associated claims expense recorded by the TCA segment are eliminated upon consolidation. Intersegment revenues and profits from contracts and services are eliminated in consolidation. See Note 20 "Segment Information" for further details.

*Share-Based Compensation*

We record share-based compensation expense under the fair value method on a straight-line basis over the vesting period, unless the awards are subject to performance conditions, in which case we recognize the expense over the requisite service period of each separate vesting tranche. In addition, we account for the forfeiture of share-based awards as they occur.

*Share Repurchases* 

Share repurchases may be made from time-to-time in open market transactions or through privately negotiated transactions under the authorization approved by the Board of Directors. Periodically, the Company may retire repurchased shares of common stock previously held by the Company as treasury stock. In accordance with our accounting policy, we allocate any excess share repurchase price over par value between additional paid-in capital, which is limited to amounts initially recorded for the same issue, and retained earnings.

During the years ended December 31, 2025, 2024 and 2023, the Company repurchased 432,752, 830,297 and 1,316,167 shares and retired 432,752, 830,297 and 1,370,371 shares of our common stock under our share repurchase program, respectively. On May 15, 2024, the Company announced that its Board of Directors approved an increase of $256.2 million in the Company's common share repurchase authorization to $400.0 million (the "New Share Repurchase Authorization"). As of December 31, 2025, the Company had $175.9 million remaining on its share repurchase authorization. The share repurchase authorization does not require the Company to repurchase any specific number of shares, and may be modified, suspended or terminated at any time without further notice.

*Earnings per Common Share*

Basic earnings per common share is computed by dividing net income by the weighted-average common shares outstanding during the period. Diluted earnings per common share is computed by dividing net income by the weighted-average common shares and common share equivalents outstanding during the period. The Company excluded 4,718, 1,349, and 2,086 restricted share units and 159, 1,898, and 60 performance share units issued under the Asbury Automotive Group, Inc. 2019 Equity and Incentive Compensation Plan from its computation of diluted earnings per share for the years ended December 31, 2025, 2024 and 2023, respectively, because they were anti-dilutive. For all periods presented, there were no adjustments to the numerator necessary to compute diluted earnings per share.

*Advertising*

We expense costs of advertising as incurred and production costs when the advertising initially takes place, net of certain advertising credits and other discounts received from certain automobile manufacturers. Advertising expense totaled $68.9 million, $61.8 million and $47.5 million for the years ended December 31, 2025, 2024 and 2023, which was net of earned

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advertising credits of $41.1 million, $40.7 million and $36.5 million, respectively, and is included in selling, general and administrative expense in the accompanying consolidated statements of income.

*Income Taxes*

We use the liability method to account for income taxes. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax basis using currently enacted tax rates. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all the deferred tax assets will not be realized.

*Assets Held for Sale and Liabilities Associated with Assets Held for Sale*

Certain amounts have been classified as assets held for sale as of December 31, 2025 and 2024 in the accompanying consolidated balance sheets. Assets and liabilities classified as held for sale include assets and liabilities associated with pending dealership disposals, real estate we are actively marketing to sell, and any liabilities, if applicable. Classification as held for sale begins on the date that we have met all of the criteria for classification as held for sale.

At the time of classifying assets as held for sale, we compare the carrying value of these assets to estimates of fair value to assess for impairment. We compare the carrying value to estimates of fair value utilizing the assistance of third-party broker opinions of value and third-party desktop appraisals to assist in our fair value estimates related to real estate properties.

*Statements of Cash Flows*

Borrowings and repayments of floor plan notes payable through our senior secured credit agreement with Bank of America, as administrative agent, and the other agents and lenders party thereto (as amended, the "2023 Senior Credit Facility") and all floor plan notes payable relating to used vehicles (together referred to as "Floor Plan Notes Payable—Non-Trade"), are classified as financing activities in the accompanying consolidated statements of cash flows, with borrowings reflected separately from repayments. The net change in floor plan notes payable to a lender affiliated with the manufacturer from which we purchase a particular new vehicle (collectively referred to as "Floor Plan Notes Payable—Trade") is classified as an operating activity in the accompanying consolidated statements of cash flows. Borrowings of floor plan notes payable associated with inventory acquired in connection with all acquisitions and repayments made in connection with all divestitures are classified as a financing activity. Cash flows related to floor plan notes payable included in operating activities differ from cash flows related to floor plan notes payable included in financing activities only to the extent that the former are payable to a lender affiliated with the manufacturer from which we purchased the related inventory, while the latter are payable to our 2023 Senior Credit Facility that includes lenders affiliated with the manufacturers and lenders not affiliated with the manufacturers from which we purchased the related inventory. The majority of our floor plan notes are payable to our 2023 Senior Credit Facility, with the exception of floor plan notes payable relating to the financing of new Ford and Lincoln vehicles.

Loaner vehicles account for a significant portion of other current assets. We acquire loaner vehicles either with available cash or through borrowings from either our manufacturer affiliated lenders or through our 2023 Senior Credit Facility. Loaner vehicles are initially used by our service department for a short period of time (typically 6 to 12 months) before we seek to sell them. Therefore, we classify the acquisition of loaner vehicles in other current assets and the borrowings and repayments of loaner vehicle notes payable in accounts payable and accrued liabilities in the accompanying consolidated statements of cash flows. Loaner vehicles are depreciated over the service period to their estimated value. At the end of the loaner service period, loaner vehicles are transferred from other current assets to used vehicle inventory.

*Business and Credit Concentration Risk*

Financial instruments, which potentially subject us to a concentration of credit risk, consist principally of cash deposits and investments. We maintain cash balances at financial institutions with strong credit ratings. Generally, amounts maintained with these financial institutions are in excess of FDIC insurance limits. In addition, we limit our exposure through the kind, quality and concentration of these investments. As of December 31, 2025, the Company had total investments of $415.3 million.

We have substantial debt service obligations. As of December 31, 2025, we had total debt of $3.59 billion, which excludes floor plan notes payable, debt issuance costs, and the debt premium on the 4.5% Senior Notes (the "4.5% Notes") and 4.75% Senior Notes (the "4.75% Notes") due 2028 and 2030, respectively. In addition, we and our subsidiaries have the ability to obtain additional debt from time to time to finance acquisitions, real property purchases, capital expenditures, share repurchases or for other purposes, although such borrowings are subject to the restrictions contained in the fourth amended and restated senior secured credit agreement with Bank of America, N.A. ("Bank of America"), as administrative agent, and the other lenders party thereto (the "2023 Senior Credit Facility"), the indentures governing our 4.5% Notes, 4.625% Notes, 4.75% Notes

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and 5.0% Notes (the "Indentures"), and our other debt instruments. We will have substantial debt service obligations, consisting of required cash payments of principal and interest, for the foreseeable future.

We are subject to operating and financial restrictions and covenants in certain of our leases and in our debt instruments, including the 2023 Senior Credit Facility, the Indentures, and the credit agreements covering our mortgage obligations. These agreements contain restrictions on, among other things, our ability to incur additional indebtedness, to create liens or other encumbrances, and to make certain payments (including dividends and repurchases of our shares and investments). These agreements may also require us to maintain compliance with certain financial and other ratios. Our failure to comply with any of these covenants in the future would constitute a default under the relevant agreement, which would, depending on the relevant agreement, (i) entitle the creditors under such agreement to terminate our ability to borrow under the relevant agreement and accelerate our obligations to repay outstanding borrowings; (ii) require us to apply our available cash to repay these borrowings; (iii) entitle the creditors under such agreement to foreclose on the property securing the relevant indebtedness; and/or (iv) prevent us from making debt service payments on certain of our other indebtedness, any of which would have a material adverse effect on our business, financial condition or results of operations. In many cases, a default under one of our debt or mortgage agreements could trigger cross-default provisions in one or more of our other debt or mortgages.

A number of our dealerships are located on properties that we lease. Each of the leases governing such properties has certain covenants with which we must comply. If we fail to comply with the covenants under our leases, the respective landlords could terminate the leases and seek damages from us.

Concentrations of credit risk with respect to contracts-in-transit and accounts receivable are limited primarily to automotive manufacturers and financial institutions. Credit risk arising from receivables with commercial customers is minimal due to the large number of customers comprising our customer base.

A significant portion of our new vehicle sales are derived from a limited number of automotive manufacturers. For the year ended December 31, 2025, manufacturers representing 5% or more of our revenues from new vehicle sales were as follows:

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| | |
|:---|:---|
| **Manufacturer (Vehicle Brands):** | **% of Total<br>New Vehicle<br>Revenues** |
| Toyota Motor Sales, U.S.A., Inc. (Toyota and Lexus) | 30% |
| Ford Motor Company (Ford and Lincoln) | 14% |
| American Honda Motor Co., Inc. (Honda and Acura) | 10% |
| Stellantis N.V. (Chrysler, Dodge, Jeep, Ram and Fiat) | 8% |
| General Motors Company (Chevrolet, Buick and GMC) | 7% |
| Mercedes-Benz USA, LLC (Mercedes-Benz, Smart and Sprinter) | 7% |
| Hyundai Motor America (Hyundai) | 6% |

---

No other manufacturers individually accounted for more than 5% of our total new vehicle revenue for the year ended December 31, 2025.

*Recent Accounting Pronouncements*

The Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2025-06, *Intangibles – Goodwill and Other – Internal-Use Software*, in September 2025, which is intended to modernize the internal-use software guidance to adapt to the agile (i.e. iterative and flexible) basis predominantly employed to develop software today. The new standard amends the recognition threshold for capitalizing internal-use software costs and clarifies the presentation and disclosure requirements associated with internal-use software. The guidance is effective for interim and annual periods beginning after December 15, 2027 and may be applied prospectively, retrospectively or on a modified prospective basis. We are evaluating the impact of this new guidance on our consolidated financial statements.

In July 2025, the FASB issued ASU 2025-05, *Measurement of Credit Losses for Accounts Receivable and Contract Assets.* The standard provides a practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract assets. The practical expedient assumes that conditions as of the balance sheet date do not change for the remaining life of the accounts receivable and contract assets when forecasting estimated credit losses. An entity is required to disclose whether it has applied the practical expedient. The guidance is effective for interim and annual periods beginning after

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December 15, 2025 and should be applied prospectively. Early adoption is permitted. We are evaluating the impact of this new guidance on our consolidated financial statements.

The FASB issued ASU 2024-03, *Disaggregation – Income Statement Expenses*, in November 2024, which requires additional disclosure of the nature of expenses included in the income statement. The new standard requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. The guidance is effective for annual periods beginning after December 15, 2026 and should be applied prospectively with the option of retrospective application. We are evaluating the impact of this new guidance on our consolidated financial statements.

In December 2023, the FASB issued final guidance in ASU 2023-09, *Improvements to Income Tax Disclosures*, which primarily expands the disclosures related to the effective tax rate reconciliation and income taxes paid. The guidance is effective for annual periods beginning after December 15, 2024 and should be applied prospectively with the option of retrospective application. We adopted this new guidance for the year ended December 31, 2025 following the retrospective application. See Note 16, "Income Taxes".

**2. REVENUE RECOGNITION**

*Disaggregation of Revenue*

Revenue from contracts with customers consists of the following:

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| | | | |
|:---|:---|:---|:---|
| | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
| | **2025** | **2024** | **2023** |
| | **(In millions)** | **(In millions)** | **(In millions)** |
| Revenue: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;New vehicle | $9496.2 | $8849.7 | $7630.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Used vehicle retail | 4549.6 | 4605.9 | 4017.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Used vehicle wholesale | 675.7 | 612.3 | 396.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New and used vehicle | 14721.5 | 14067.9 | 12045.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sale of vehicle parts and accessories | 511.5 | 516.2 | 496.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Vehicle repair and maintenance services | 1995.3 | 1838.5 | 1585.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parts and service | 2506.8 | 2354.7 | 2081.5 |
| &nbsp;&nbsp;Finance and insurance, net | 770.6 | 766.0 | 676.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | $17999.0 | $17188.6 | $14802.7 |

---

*Contract Assets*

Changes in contract assets during the period are reflected in the table below. Contract assets related to vehicle repair and maintenance services are transferred to receivables when a repair order is completed and invoiced to the customer. Certain incremental sales commissions payable to obtain an F&I revenue contract with a customer have been capitalized and are amortized using the same pattern of recognition applicable to the associated F&I revenue contract.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Vehicle Repair and Maintenance Services** | **Finance and Insurance, net** | **Deferred Sales Commissions** | **Total** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Contract Assets, December 31, 2023 | $20.5 | $13.8 | $68.4 | $102.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transferred to receivables from contract assets recognized at the beginning of the period | (20.5) | (13.8) |  | (34.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of costs incurred to obtain a contract with a customer |  |  | (19.5) | (19.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Costs incurred to obtain a contract with a customer |  |  | 41.2 | 41.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Increases related to revenue recognized, inclusive of adjustments to constraint, during the period | 17.8 | 12.8 |  | 30.5 |
| Contract Assets, December 31, 2024 | $17.8 | $12.8 | $90.1 | $120.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transferred to receivables from contract assets recognized at the beginning of the period | (17.8) | (12.8) |  | (30.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of costs incurred to obtain a contract with a customer |  |  | (29.3) | (29.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Costs incurred to obtain a contract with a customer |  |  | 52.0 | 52.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Increases related to revenue recognized, inclusive of adjustments to constraint, during the period | 22.9 | 11.8 |  | 34.7 |
| Contract Assets, December 31, 2025 | $22.9 | $11.8 | $112.8 | $147.5 |
| Contract Assets (current), December 31, 2025 | $22.9 | $11.8 | $30.7 | $65.4 |
| Contract Assets (long-term), December 31, 2025 | $— | $— | $82.1 | $82.1 |

---

*Deferred Revenue*

The consolidated balance sheet reflects $828.2 million and $766.0 million in deferred revenue as of December 31, 2025 and 2024, respectively. Approximately $255.0 million and $239.3 million of deferred revenue at December 31, 2024 and 2023, was recorded in finance and insurance, net revenue in the consolidated statements of income for the years ended December 31, 2025 and 2024, respectively.

**3. ACQUISITIONS AND DIVESTITURES**

**Herb Chambers Acquisition**

On July 21, 2025, we completed the acquisition of The Herb Chambers Companies (collectively, the "Businesses"). The Herb Chambers acquisition continues Asbury's geographic expansion into the northeast region of the United States.

As a result of the Herb Chambers acquisition, we acquired substantially all of the assets including the real property related thereto, for a total preliminary purchase price of approximately $1.76 billion, which includes $292.0 million of new vehicle floor plan financing, $300.0 million of used vehicle financing, $623.3 million of borrowings under a revolving credit facility, and $546.5 million of borrowings under a real estate facility. The Businesses comprise 33 dealerships, 52 franchises and three collision centers. The Businesses are included in our Dealerships segment.

The sources of the preliminary purchase consideration are as follows:

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| | |
|:---|:---|
| | **(In millions)** |
| New vehicle floor plan facility | $292.0 |
| Used vehicle floor plan facility | 300.0 |
| Revolving credit facility | 623.3 |
| Real estate facility | 546.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Preliminary purchase price | $1761.8 |

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Under the acquisition method of accounting, the tangible and intangible assets acquired and liabilities assumed are recorded at their estimated fair value based on information currently available. The following table summarizes the amounts recorded based on preliminary estimates of fair value:

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| | |
|:---|:---|
| **Summary of Assets Acquired and Liabilities Assumed** | |
| | **(In millions)** |
| **Assets** | |
| &nbsp;&nbsp;Inventories, net | $372.1 |
| &nbsp;&nbsp;Other current assets | 56.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 428.7 |
| &nbsp;&nbsp;Property and equipment, net | 605.5 |
| &nbsp;&nbsp;Goodwill | 341.7 |
| &nbsp;&nbsp;Intangible franchise rights | 428.5 |
| &nbsp;&nbsp;Operating lease right-of-use assets | 39.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets acquired | $1844.2 |
| **Liabilities** |  |
| &nbsp;&nbsp;Operating lease liabilities | 39.8 |
| &nbsp;&nbsp;Other liabilities | 42.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities assumed | 82.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net assets acquired** | $1761.8 |

---

The estimated fair values of the assets acquired and liabilities assumed and the related preliminary acquisition accounting are based on management's estimates and assumptions, as well as other information compiled by management, including the books and records of the Businesses. The effects of measurement period adjustments on our consolidated statement of income for the year ended December 31, 2025 were not material. Furthermore, we recorded a $34.7 million measurement period adjustment to reflect the fair value of franchise rights acquired, with a corresponding increase to goodwill, within our consolidated balance sheets during the three months ended December 31, 2025. We believe that the information gathered to date provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed. We continue to analyze the estimated values of all assets acquired and liabilities assumed including, among other things, finalizing third-party valuations; therefore, the allocation of the purchase price remains preliminary and subject to revision during the measurement period, not to exceed one year from the acquisition date.

Approximately $428.5 million of the purchase price was assigned to the indefinite lived franchise rights intangible assets related to the dealer agreements applicable to each new vehicle dealership. In addition, goodwill of $341.7 million was recognized and is primarily attributable to the anticipated synergies that Asbury expects to derive from the Herb Chambers acquisition as well as the acquired assembled workforce of the Businesses.

The Company recorded $16.5 million of acquisition related costs during the year ended December 31, 2025. These costs are included in selling, general, and administrative expenses in the consolidated statements of income.

Goodwill and manufacturer franchise rights associated with our Dealerships segment acquisitions are deductible for federal and state income tax purposes ratably over a 15-year period.

The Company's consolidated statements of income included revenue and net income attributable to the Businesses from July 21, 2025 through December 31, 2025 of $1.16 billion and $35.4 million, respectively.

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The following represents the unaudited pro forma information as if the Herb Chambers acquisition had been included in the consolidated results of the Company since January 1, 2024:

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| | | |
|:---|:---|:---|
| | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
| | **2025** | **2024** |
| | **(In millions)** | **(In millions)** |
| | **(Unaudited)** | **(Unaudited)** |
| Pro forma revenue | $20330.9 | $19865.3 |
| Pro forma net income | $479.4 | $418.3 |

---

The above pro forma financial information adjusts the revenue and net income related to the Herb Chambers acquisition primarily for depreciation, rent and interest expense, assuming that the fair value adjustments and indebtedness incurred in connection with the Herb Chambers acquisition had occurred on January 1, 2024. They have also been adjusted to reflect the $16.5 million of acquisition related costs during the year ended December 31, 2025, as having occurred on January 1, 2024. The pro forma information also assumes that the July 2025 divestiture of two Lexus and two General Motors dealerships occurred on January 1, 2024, due to manufacturer requirements upon the consummation of the Herb Chambers acquisition. The pro forma net income for the year ended December 31, 2025 and 2024 includes $141.0 million and $149.5 million, respectively, of asset impairments recorded by the Company.

**Koons Acquisition**

On December 11, 2023, we completed the acquisition of the Jim Koons Dealerships. The results of the Jim Koons Dealerships have been included in our consolidated financial statements since that date. The Koons acquisition diversifies Asbury's geographic mix, with expansion in the greater Washington-Baltimore region of the United States.

As a result of the Koons acquisition, we acquired 20 new vehicle dealerships, six collision centers and the real property related thereto, for a total purchase price of approximately $1.50 billion, which includes $256.1 million of new vehicle floor plan financing and $100.9 million of assets held for sale related to Koons Lexus of Wilmington. The purchase price was paid in cash.

The sources of the purchase consideration are as follows:

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| | |
|:---|:---|
| | **(In millions)** |
| Cash | $941.3 |
| New vehicle floor plan facility | 256.1 |
| Used vehicle floor plan facility | 307.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase price | $1504.5 |

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Under the acquisition method of accounting, the tangible and intangible assets acquired and liabilities assumed are recorded at their estimated fair value based on information currently available. The following table summarizes the amounts recorded based on final estimates of fair value:

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| | |
|:---|:---|
| **Summary of Assets Acquired and Liabilities Assumed** | |
| | **(In millions)** |
| **Assets** | |
| &nbsp;&nbsp;Inventories, net | $310.6 |
| &nbsp;&nbsp;Other current assets | 11.8 |
| &nbsp;&nbsp;Assets held for sale | 100.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 423.3 |
| &nbsp;&nbsp;Property and equipment, net | 417.6 |
| &nbsp;&nbsp;Goodwill | 272.4 |
| &nbsp;&nbsp;Intangible franchise rights | 401.0 |
| &nbsp;&nbsp;Operating lease right-of-use assets | 11.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets acquired | $1525.5 |
| **Liabilities** |  |
| &nbsp;&nbsp;Operating lease liabilities | $11.2 |
| &nbsp;&nbsp;Other liabilities | 9.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities assumed | 20.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net assets acquired** | $1504.5 |

---

The acquisition accounting is based upon the Company's estimates of fair value. The estimated fair values of the assets acquired and liabilities assumed and the related acquisition accounting are based on management's estimates and assumptions, as well as other information compiled by management, including the books and records of Koons. Measurement period adjustments recorded during the year ended December 31, 2024 and their related effects on our consolidated statements of income were not material. Furthermore, we recorded a $26.7 million measurement period adjustment to reflect the fair value of franchise rights acquired, with a corresponding increase to goodwill, within our consolidated balance sheets during the year ended December 31, 2024.

Approximately $401.0 million of the purchase price was assigned to the indefinite lived franchise rights intangible assets related to the dealer agreements applicable to each new vehicle dealership. In addition, goodwill of $272.4 million was recognized and is attributable to the anticipated synergies that Asbury expects to derive from the Koons acquisition as well as the acquired assembled workforce of the Koons dealerships.

The Company recorded $4.1 million of acquisition related costs during the year ended December 31, 2023. These costs are included in selling, general and administrative in the consolidated statements of income. The Company did not incur acquisition related costs during the year ended December 31, 2024.

Goodwill and manufacturer franchise rights associated with our Dealerships segment acquisitions are deductible for federal and state income tax purposes ratably over a 15-year period.

The Company's consolidated statements of income for the year ended December 31, 2024, included revenue and net income attributable to the Jim Koons Dealerships of $2,805.5 million and $86.9 million, respectively.

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The following represents the unaudited pro forma information as if the Koons acquisition had been included in the consolidated results of the Company since January 1, 2022:

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| | | |
|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2023** | **2022** |
|  | **(In millions)** | **(In millions)** |
|  | **(Unaudited)** | **(Unaudited)** |
| Pro forma revenue | $17540.4 | $18516.1 |
| Pro forma net income | $660.8 | $1092.9 |

---

The above pro forma financial information adjusts the revenue and net income related to the Koons acquisition primarily for (1) depreciation and interest expense assuming that the fair value adjustments and indebtedness incurred in connection with the Koons acquisition had occurred on January 1, 2022 and (2) the exclusion of Koons Lexus of Wilmington, which is classified as assets held for sale as of December 31, 2023. The pro forma net income for the year ended December 31, 2023 includes $117.2 million of asset impairments recorded by the Company during the fourth quarter of 2023.

**Other Acquisitions and Divestitures** 

There were no other acquisitions during the years ended December 31, 2025, 2024 and 2023.

During the year ended December 31, 2025, we sold the following franchises:

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| | | | |
|:---|:---|:---|:---|
| **Manufacturer** | **Franchises** | **Locations** | **States** |
| Toyota | 3 | 3 | California; Maryland |
| Nissan | 1 | 1 | Colorado |
| Chrysler Jeep Dodge Ram | 12 | 4 | Colorado; Utah |
| Volvo | 1 | 1 | South Carolina |
| Lexus | 2 | 2 | Utah |
| Chevrolet Buick GMC | 4 | 3 | Utah; Indiana |
| Ford | 1 | 1 | Utah |

---

The Company recorded a pre-tax gain totaling $80.2 million which is presented in our accompanying consolidated statements of income as a gain on dealership divestitures, net.

During the year ended December 31, 2024, we sold the following franchises:

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| | | | |
|:---|:---|:---|:---|
| **Manufacturer** | **Franchises** | **Locations** | **States** |
| Nissan | 2 | 2 | Colorado; Georgia |
| Lexus | 1 | 1 | Delaware |
| Chevrolet | 1 | 1 | Georgia |
| Honda | 1 | 1 | Washington |

---

The Company recorded a pre-tax gain totaling $8.6 million which is presented in our accompanying consolidated statements of income as a gain on dealership divestitures, net.

During the year ended December 31, 2023, we sold one franchise (one dealership location) in Austin, Texas. The Company recorded a pre-tax gain totaling $13.5 million.

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**4. ACCOUNTS RECEIVABLE**

Accounts receivable consisted of the following:

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| | | |
|:---|:---|:---|
| | **As of December 31,** | **As of December 31,** |
| | **2025** | **2024** |
| | **(In millions)** | **(In millions)** |
| Vehicle receivables | $84.6 | $85.0 |
| Manufacturer receivables | 113.9 | 101.4 |
| Other receivables | 99.5 | 102.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total accounts receivable | 298.0 | 288.6 |
| Less—Allowance for credit losses | (3.4) | (3.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | $294.6 | $285.5 |

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**5. INVENTORIES**

Inventories consisted of the following:

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| | | |
|:---|:---|:---|
| | **As of December 31,** | **As of December 31,** |
| | **2025** | **2024** |
| | **(In millions)** | **(In millions)** |
| New vehicles | $1582.6 | $1450.6 |
| Used vehicles | 399.9 | 382.1 |
| Parts and accessories | 153.3 | 146.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total inventories, net (a) | $2135.8 | $1978.8 |

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____________________________

(a) Inventories, net as of December 31, 2025 and 2024, excluded $96.5 million and $58.7 million classified as assets held for sale, respectively.

The lower of cost and net realizable value reserves reduced total inventory cost by $9.0 million and $9.7 million, respectively, as of December 31, 2025 and 2024. As of December 31, 2025 and 2024, certain automobile manufacturer incentives reduced new vehicle inventory cost by $16.2 million and $13.8 million, respectively, and reduced new vehicle cost of sales for the years ended December 31, 2025, 2024 and 2023 by $127.4 million, $113.4 million and $94.1 million, respectively.

**6. ASSETS HELD FOR SALE**

Assets and liabilities classified as held for sale include assets and liabilities associated with pending dealership disposals, and real estate that we are actively marketing to sell.

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

A summary of assets held for sale and liabilities associated with assets held for sale is as follows:

---

| | | |
|:---|:---|:---|
| | **As of December 31,** | **As of December 31,** |
| | **2025** | **2024** |
| | **(In millions)** | **(In millions)** |
| Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | $96.5 | $58.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loaners, net | 15.4 | 1.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 117.3 | 89.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 1.8 | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 33.3 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Franchise rights | 4.5 | 23.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets held for sale | $268.9 | $174.4 |
| Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current maturities of operating leases | 0.4 | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | 1.5 | 1.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities associated with assets held for sale | 1.8 | 1.9 |
| Net assets held for sale | $267.0 | $172.4 |

---

As of December 31, 2025, assets held for sale consisted of 15 franchises (11 dealership locations) in addition to two real estate properties.

In March 2025, the Company recognized a $14.3 million pre-tax non-cash franchise rights impairment charge in connection with five dealerships that were classified as assets held for sale in March 2025. In September 2025, the Company recognized an $11.7 million pre-tax non-cash franchise rights impairment charge in connection with a dealership that met the assets held for sale criteria in October 2025. The quantitative assessment for each disposal group included a comparison of the estimated fair value to the carrying value of the disposal group less costs to sell. The Company determined the estimated fair value of each disposal group based on estimated sales proceeds less costs to sell. These franchise rights impairment charges are reflected in asset impairments in our consolidated statement of income for the year ended December 31, 2025.

As of December 31, 2024, assets held for sale consisted of seven franchises (six dealership locations) in addition to one real estate property.

During the year ended December 31, 2025, the Company sold 24 franchises (15 dealership locations) for a pre-tax gain totaling $80.2 million.

During the year ended December 31, 2024, the Company sold five franchises (five dealership locations) for a pre-tax gain totaling $8.6 million.

**7. OTHER CURRENT ASSETS**

Other current assets consisted of the following:

---

| | | |
|:---|:---|:---|
| | **As of December 31,** | **As of December 31,** |
| | **2025** | **2024** |
| | **(In millions)** | **(In millions)** |
| Loaner vehicles | $280.5 | $235.7 |
| Contract assets (see Note 2) | 65.4 | 54.7 |
| Prepaid expenses | 30.8 | 39.8 |
| Prepaid taxes | 6.2 | 9.7 |
| Notes receivable | 3.8 | 4.8 |
| Deposits | 10.4 | 3.4 |
| Other | 3.8 | 3.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | $400.9 | $351.7 |

---

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

**8. INVESTMENTS**

Our investment portfolio is primarily funded by product premiums from the sale of our TCA F&I products. The amortized cost, gross unrealized gains and losses and estimated fair values of debt securities available-for-sale measured at net asset value are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
| | **Amortized Cost** | **Gross Unrealized Gains** | **Gross Unrealized Losses** | **Fair Value** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Short-term investments | $0.5 | $— | $— | $0.5 |
| U.S. Treasuries | 2.6 |  |  | 2.6 |
| Municipal | 4.9 | 0.1 |  | 5.0 |
| Corporate | 163.3 | 3.8 |  | 167.0 |
| Mortgage and other asset-backed securities | 237.1 | 3.4 | (0.3) | 240.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investments | $408.4 | $7.3 | $(0.4) | $415.3 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **Amortized Cost** | **Gross Unrealized Gains** | **Gross Unrealized Losses** | **Fair Value** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Short-term investments | $14.4 | $— | $— | $14.4 |
| U.S. Treasuries | 2.6 |  |  | 2.6 |
| Municipal | 10.6 | 0.1 | (0.1) | 10.6 |
| Corporate | 152.0 | 0.8 | (0.9) | 151.9 |
| Mortgage and other asset-backed securities | 170.1 | 0.6 | (1.7) | 169.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investments | $349.8 | $1.6 | $(2.7) | $348.6 |

---

As of December 31, 2025 and 2024, the Company had $3.1 million and $2.8 million of accrued interest receivable, respectively, which is included in other current assets on the consolidated balance sheets. The Company does not consider accrued interest receivable in the carrying amount of financial assets held at amortized cost basis or in the allowance for credit losses.

A summary of amortized costs and fair value of investments by time to maturity, is as follows:

---

| | | |
|:---|:---|:---|
| | **As of December 31, 2025** | **As of December 31, 2025** |
| | **Amortized Cost** | **Fair Value** |
| | **(In millions)** | **(In millions)** |
| Due in 1 year or less | $0.5 | $0.5 |
| Due in 1-5 years | 114.7 | 117.1 |
| Due in 6-10 years | 52.4 | 53.8 |
| Due after 10 years | 3.6 | 3.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total by maturity | 171.3 | 175.2 |
| Mortgage and other asset-backed securities | 237.1 | 240.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investment securities | $408.4 | $415.3 |

---

During the year ended December 31, 2025, we recorded $1.0 million gross gains and $0.2 million gross losses realized related to the sales of available-for-sale debt securities carried at fair value.

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

During the year ended December 31, 2024, we recorded $1.2 million gross gains and $0.6 million gross losses realized related to the sales of available-for-sale debt securities carried at fair value.

During the year ended December 31, 2023, we recorded $0.5 million gross gains and $1.5 million gross losses realized related to the sales of available-for-sale debt securities carried at fair value. During the year ended December 31, 2023, we recorded $3.7 million gross gains and $0.9 million gross losses realized related to the sales of equity securities carried at fair value.

The following tables summarize the amount of unrealized losses, defined as the amount by which the amortized cost exceeds fair value, and the related fair value of investments with unrealized losses. The investments were segregated into two categories: those that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position of 12 or more months. The reference point for determining how long an investment was in an unrealized loss position was December 31, 2025.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
| | **Less than 12 Months** | **Less than 12 Months** | **Greater than 12 Months** | **Greater than 12 Months** | **Total** | **Total** |
| | **Fair Value** | **Unrealized Losses** | **Fair Value** | **Unrealized Losses** | **Fair Value** | **Unrealized Losses** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Short-term investments | $— | $— | $0.5 | $— | $0.5 | $— |
| U.S. Treasuries |  |  | 0.8 |  | 0.8 |  |
| Corporate | 4.8 |  |  |  | 4.8 |  |
| Mortgage and other asset-backed securities | 28.8 | (0.1) | 18.8 | (0.2) | 47.6 | (0.3) |
| Total debt securities | $33.5 | $(0.1) | $20.2 | $(0.2) | $53.7 | $(0.3) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **Less than 12 Months** | **Less than 12 Months** | **Greater than 12 Months** | **Greater than 12 Months** | **Total** | **Total** |
| | **Fair Value** | **Unrealized Losses** | **Fair Value** | **Unrealized Losses** | **Fair Value** | **Unrealized Losses** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Short-term investments | $0.3 | $— | $3.9 | $— | $4.1 | $— |
| U.S. Treasuries | 1.1 |  | 1.4 |  | 2.5 |  |
| Municipal | 3.4 | (0.1) | 1.6 |  | 4.9 | (0.1) |
| Corporate | 64.3 | (0.5) | 26.6 | (0.4) | 90.9 | (0.9) |
| Mortgage and other asset-backed securities | 78.5 | (1.0) | 26.4 | (0.7) | 104.9 | (1.7) |
| Total debt securities | $147.5 | $(1.6) | $59.8 | $(1.2) | $207.3 | $(2.7) |

---

The credit loss model applicable to the available-for-sale debt securities, requires the recognition of credit losses through an allowance account, which are recognized once securities become impaired. The Company reviews the investment securities portfolio at the security level on a quarterly basis for potential credit losses, which takes into consideration numerous factors as described in Note 1. The decline in fair value identified in the tables above are a result of widening market spreads and not a result of credit quality. Additionally, the Company has determined it has both the intent and ability to hold these investments until the market price recovers or until maturity and does not believe it will be required to sell the securities before maturity. Accordingly, no credit losses were recognized on these securities during the years ended December 31, 2025, 2024, and 2023.

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

**9. PROPERTY AND EQUIPMENT, NET**

Property and equipment, net consisted of the following:

---

| | | |
|:---|:---|:---|
| | **As of December 31,** | **As of December 31,** |
| | **2025** | **2024** |
| | **(In millions)** | **(In millions)** |
| Land | $1189.3 | $1021.7 |
| Buildings and leasehold improvements | 1827.2 | 1544.3 |
| Machinery and equipment | 210.3 | 188.4 |
| Furniture and fixtures | 107.1 | 105.5 |
| Company vehicles | 19.2 | 17.3 |
| Construction in progress | 193.9 | 142.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross property and equipment | 3546.9 | 3019.7 |
| Less—Accumulated depreciation | (476.5) | (469.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net (a) | $3070.4 | $2550.7 |

---

______________________________

(a) Property and equipment, net as of December 31, 2025 and 2024, excluded $117.3 million and $89.1 million, respectively classified as assets held for sale. In addition, property and equipment, net as of December 31, 2025 and 2024 included finance leases of $8.3 million and $8.4 million, respectively.

Depreciation expense was $82.4 million, $75.0 million, and $67.7 million for the years ended December 31, 2025, 2024, and 2023, respectively.

**10. GOODWILL AND INTANGIBLE FRANCHISE RIGHTS**

Our acquisitions have resulted in the recording of goodwill and intangible franchise rights. Goodwill is an asset representing operational synergies and future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Intangible franchise rights is an asset representing our rights under franchise agreements with vehicle manufacturers.

In connection with the Herb Chambers acquisition, we recorded goodwill of $341.7 million and franchise rights of $428.5 million. Goodwill related to the Herb Chambers acquisition was allocated to the Dealerships segment.

The changes in goodwill and intangible franchise rights for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Goodwill** | **Goodwill** | **Goodwill** |
| | **Dealerships** | **TCA** | **Total** |
| | **(In millions)** | **(In millions)** | **(In millions)** |
| Balance as of December 31, 2023 (a) | $1472.4 | $536.6 | $2009.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassified from assets held for sale | 29.6 |  | 29.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisitions | 40.9 |  | 40.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Divestitures | (30.1) |  | (30.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairments | (1.3) |  | (1.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassified to assets held for sale | (3.5) |  | (3.5) |
| Balance as of December 31, 2024 (a) | $1508.1 | $536.6 | $2044.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisitions | 341.7 |  | 341.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Divestitures | (71.8) |  | (71.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassified to assets held for sale | (33.3) |  | (33.3) |
| Balance as of December 31, 2025 (a) | $1744.7 | $536.6 | $2281.3 |

---

_____________________________

(a) Net of accumulated impairment losses of $552.6 million recorded prior to the year ended December 31, 2023.

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

---

| | |
|:---|:---|
|  | **Intangible Franchise Rights** |
|  | **(In millions)** |
| Balance as of December 31, 2023 | $2095.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reclassified from assets held for sale | 71.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisitions - measurement-period adjustments | (26.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Divestitures | (74.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairments | (148.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reclassified to assets held for sale | (6.5) |
| Balance as of December 31, 2024 | $1911.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reclassified from assets held for sale | 23.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisitions | 428.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Divestitures | (120.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairments | (141.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reclassified to assets held for sale | (4.5) |
| Balance as of December 31, 2025 | $2097.6 |

---

Our quantitative impairment tests for franchise rights include a comparison of the estimated fair value to the carrying value of each franchise right asset. The Company estimates fair value by using a discounted cash flow model (income approach) based on market participant assumptions related to the cash flows directly attributable to the franchise. These assumptions include year-over-year and terminal growth rates, weighted average cost of capital and future EBITDA margins.

We performed a quantitative impairment test for certain underperforming stores as of our annual impairment testing date, October 1, 2025. The results of the quantitative impairment testing identified that the carrying values of certain of our franchise rights intangible assets exceeded their fair value by $115.0 million and the related impairment charge was recorded during the three months ended December 31, 2025. Taking into account the $26.0 million of franchise rights impairments discussed in Note 6, Assets Held for Sale, in total, we recognized a $141.0 million pre-tax non-cash impairment charge related to our franchise rights intangible assets during the year ended December 31, 2025.

Based on the underperformance of certain stores, we performed quantitative impairment tests in the second quarter of 2024 and as of our annual impairment testing date, October 1, 2024. The results of the quantitative impairment testing identified that the carrying values of certain of our franchise rights intangible assets exceeded their fair value by $134.1 million and $14.1 million and the related impairment charges were recorded during the three months ended June 30, 2024 and December 31, 2024, respectively. In total, we recognized a $148.2 million pre-tax non-cash impairment charge related to our franchise rights intangible assets during the year ended December 31, 2024.

We also performed qualitative impairment assessments on the remaining franchise rights as of October 1, 2025 and 2024, respectively. The results of our qualitative impairment assessments on the remaining franchise rights indicated that the fair values of the franchise rights related to those dealerships more likely than not exceeded their carrying values.

We performed qualitative impairment tests of goodwill for all reporting units as of October 1, 2025. The results of our qualitative goodwill impairment assessments for all reporting units indicated that the fair values of the reporting units more likely than not exceeded their carrying values.

Additionally, in connection with changes in reporting units in our Dealerships segment, we performed qualitative and quantitative impairment tests of goodwill for the affected reporting units as of October 1, 2024, both before and after the change in reporting units. Lastly, we performed an interim quantitative impairment test of goodwill for two reporting units in the second quarter of 2024.

The quantitative impairment tests of goodwill, related to certain reporting units, as of October 1, 2024, and during the second quarter of 2024 included a comparison of the estimated fair value to the carrying value of the reporting unit. The Company estimates fair value by using a discounted cash flow model (income approach) based on market participant assumptions. These assumptions include year-over-year and terminal growth rates, weighted average cost of capital, future gross margins, and future selling, general and administrative expenses. The results of our quantitative goodwill impairment tests during the second quarter of 2024 and as of October 1, 2024, indicated that the fair value of these reporting units exceeded their carrying values. We performed qualitative impairment assessments on the remaining reporting units as of October 1, 2024. The results of our qualitative impairment assessments of goodwill related to the remaining reporting units indicated that the fair values of the reporting units more likely than not exceeded their carrying values.

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

**11. FLOOR PLAN NOTES PAYABLE—TRADE**

We consider floor plan notes payable to a party that is affiliated with the entity from which we purchase our new vehicle inventory as floor plan notes payable—trade on our consolidated balance sheets. Floor plan notes payable—trade, net consisted of the following:

---

| | | |
|:---|:---|:---|
| | **As of December 31,** | **As of December 31,** |
| | **2025** | **2024** |
| | **(In millions)** | **(In millions)** |
| Floor plan notes payable—trade | $344.0 | $350.9 |
| Floor plan notes payable offset account | (1.0) | (1.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total floor plan notes payable—trade, net | $343.1 | $349.9 |

---

We have a floor plan facility with Ford Motor Credit Company ("Ford Credit") to purchase new Ford and Lincoln vehicle inventory. Our floor plan facility with Ford Credit was amended in July 2020 and can be terminated by either the Company or Ford Credit with a 30-day notice period.

We have established a floor plan notes payable offset account with Ford Credit that allows us to transfer cash to the account as an offset to our outstanding floor plan notes payable—trade. These transfers reduce the amount of outstanding new vehicle floor plan notes payable that would otherwise accrue interest, while retaining the ability to transfer amounts from the offset account into our operating cash accounts within one to two days. As a result of using our floor plan offset account, we experienced a reduction in floor plan interest expense in our consolidated statements of income. The representations and covenants contained in the agreement governing our floor plan facility with Ford Credit are customary for financing transactions of this nature. Further, the agreement governing our floor plan facility with Ford Credit also provides for events of default that are customary for financing transactions of this nature, including cross-defaults to other material indebtedness. Upon the occurrence of an event of default, the Company could be required to immediately repay all outstanding amounts under our floor plan facility with Ford Credit.

**12. FLOOR PLAN NOTES PAYABLE—NON-TRADE**

We consider floor plan notes payable to a party that is not affiliated with the entity from which we purchase our new vehicle inventory as floor plan notes payable—non-trade on our consolidated balance sheets. Floor plan notes payable—non-trade, net consisted of the following:

---

| | | |
|:---|:---|:---|
| | **As of December 31,** | **As of December 31,** |
| | **2025** | **2024** |
| | **(In millions)** | **(In millions)** |
| Floor plan notes payable—new non-trade | $1509.6 | $1359.8 |
| Floor plan notes payable—used non-trade | 325.0 | 100.7 |
| Floor plan notes payable offset account | (150.7) | (115.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total floor plan notes payable—non-trade, net | $1683.9 | $1344.8 |

---

*2023 Senior Credit Facility*

On October 20, 2023, the Company and certain of its subsidiaries entered into a fourth amended and restated credit agreement with Bank of America, N.A. ("Bank of America"), as administrative agent, and the other lenders party thereto (the "2023 Senior Credit Facility"). The 2023 Senior Credit Facility amended and restated the Company's pre-existing third amended and restated credit agreement, dated as of September 25, 2019, among the Company, certain of its subsidiaries, Bank of America, as administrative agent, and the other lenders party thereto.

On April 9, 2025, the Company obtained an amendment (the "Amendment") to the 2023 Senior Credit Facility, by and among the Company, as a borrower, certain of its subsidiaries, as vehicle borrowers, Bank of America, N.A., ("Bank of America") as administrative agent, and the other lenders party thereto.

The Amendment, among other things, provided for the following, subject to satisfaction of certain other customary conditions in each case:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an increase of the aggregate commitments under the revolving credit facility, from $500.0 million to $925.0 million; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an increase of the aggregate commitments under the new vehicle floor plan facility, from $1.93 billion to $2.25 billion.

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

Aggregate commitments of $375.0 million under the used vehicle revolving floorplan facility did not change as a result of the Amendment .

The increases under the Amendment were effective concurrently with the consummation of the Herb Chambers acquisition, which occurred on July 21, 2025.

Subject to compliance with certain conditions, the 2023 Senior Credit Facility provides that we have the ability, at our option and subject to the receipt of additional commitments from existing or new lenders, to increase the size of the facilities by up to $750.0 million in the aggregate.

We have the ability to convert a portion of our availability under the Revolving Credit Facility to the New Vehicle Floor Plan Facility or the Used Vehicle Floor Plan Facility. The maximum amount we are allowed to convert is determined based on our aggregate revolving commitment under the Revolving Credit Facility, less $50.0 million. In addition, we are able to convert any amounts moved to the New Vehicle Floor Plan Facility or Used Vehicle Floor Plan Facility back to the Revolving Credit Facility.

In connection with the New Vehicle Floor Plan Facility, we continue to maintain an offset account with Bank of America that allows us to transfer cash as an offset to floor plan notes payable. These transfers reduce the amount of outstanding new vehicle floor plan notes payable that would otherwise accrue interest, while retaining the ability to transfer amounts from the offset account into our operating cash accounts within one to two days. As a result of the use of our floor plan offset account, we experienced a reduction in floor plan interest expense in our consolidated statements of income.

Borrowings outstanding under the 2023 Senior Credit Facility bear interest, at the option of the Company, based on Daily Simple SOFR (as defined in the 2023 Senior Credit Facility) or the Base Rate, in each case plus an Applicable Rate. The Base Rate is the highest of (i) the Federal Funds Rate (as defined in the 2023 Senior Credit Agreement) plus 0.50%, (ii) the Bank of America prime rate, and (iii) Daily Simple SOFR plus 1.00% and (iv) 1.00%. Applicable Rate means with respect to the Revolving Credit Facility, a range from 1.00% to 2.00% for Daily Simple SOFR loans and 0.15% to 1.00% for Base Rate loans, in each case based on the Company's consolidated total lease adjusted leverage ratio. Borrowings under the New Vehicle Floorplan Facility bear interest, at the option of the Company, based on Daily Simple SOFR plus 1.10%, or the Base Rate plus 0.10%. Borrowings under the Used Vehicle Floorplan Facility bear interest, at the option of the Company, based on Daily Simple SOFR plus 1.40% or the Base Rate plus 0.40%.

In addition to the payment of interest on borrowings outstanding under the 2023 Senior Credit Facility, we are required to pay a quarterly commitment fee on total unused commitments thereunder. The fee for unused commitments under the Revolving Credit Facility is between 0.15% and 0.40% per year, based on the Company's total lease adjusted leverage ratio, and the fee for unused commitments under the New Vehicle Facility Floor Plan and the Used Vehicle Facility Floor Plan Facility is 0.15% per year.

The 2023 Senior Credit Facility matures, and all amounts outstanding thereunder will be due and payable, on October 20, 2028.

The representations and covenants contained in the 2023 Senior Credit Agreement are customary for financing transactions of this nature, including, among others, a requirement to comply with a minimum consolidated fixed charge coverage ratio and maximum consolidated total lease adjusted leverage ratio, in each case as set out in the 2023 Senior Credit Agreement. In addition, certain other covenants could restrict the Company's ability to incur additional debt, pay dividends or acquire or dispose of assets.

The 2023 Senior Credit Agreement also provides for events of default that are customary for financing transactions of this nature, including cross-defaults to other material indebtedness. In certain instances, an event of default under either the Revolving Credit Facility or the Used Vehicle Floorplan Facility could be, or result in, an event of default under the New Vehicle Floorplan Facility, and vice versa. Upon the occurrence of an event of default, the Company could be required to immediately repay all amounts outstanding under the applicable facility.

See the "Representations and Covenants" section below under our "Long-Term Debt" footnote for a description of the representations, covenants and events of default contained in the 2023 Senior Credit Facility.

In addition to our new and used vehicle floor plan facilities, we have loaner vehicle floor plan facilities with Bank of America and certain original equipment manufacturers ("OEMs"). Loaner vehicles notes payable related to Bank of America was $65.0 million as of December 31, 2025 and $56.7 million as of December 31, 2024. Loaner vehicles notes payable related to OEMs as of December 31, 2025 and 2024 were $190.2 million and $161.5 million, respectively.

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

**13. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES**

Accounts payable and accrued liabilities consisted of the following:

---

| | | |
|:---|:---|:---|
| | **As of December 31,** | **As of December 31,** |
| | **2025** | **2024** |
| | **(In millions)** | **(In millions)** |
| Loaner vehicles notes payable | $255.2 | $218.1 |
| Accounts payable | 152.3 | 169.1 |
| Taxes payable | 80.8 | 82.1 |
| Accrued compensation and benefits | 75.7 | 80.5 |
| Accrued interest | 49.5 | 45.5 |
| Accrued insurance | 30.5 | 30.4 |
| Customer deposits | 26.4 | 25.2 |
| Accrued finance and insurance chargebacks | 17.9 | 23.2 |
| Accrued licenses and regulatory fees | 23.7 | 21.0 |
| Unearned premium | 13.5 | 14.0 |
| Customer we owe liabilities | 8.0 | 7.5 |
| Accrued advertising | 11.8 | 6.1 |
| Other | 35.1 | 38.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | $780.3 | $761.4 |

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**14. DEBT**

Long-term debt consisted of the following:

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| | | |
|:---|:---|:---|
| | **As of December 31,** | **As of December 31,** |
| | **2025** | **2024** |
| | **(In millions)** | **(In millions)** |
| 4.50% Senior Notes due 2028 | $405.0 | $405.0 |
| 4.625% Senior Notes due 2029 | 800.0 | 800.0 |
| 4.75% Senior Notes due 2030 | 445.0 | 445.0 |
| 5.00% Senior Notes due 2032 | 600.0 | 600.0 |
| Mortgage notes payable bearing interest at fixed rates | 27.2 | 29.6 |
| 2025 Real Estate Facility | 537.4 |  |
| 2021 Real Estate Facility | 442.1 | 579.9 |
| 2021 BofA Real Estate Facility | 151.2 | 158.6 |
| 2018 Bank of America Facility |  | 37.9 |
| 2018 Wells Fargo Master Loan Facility | 57.2 | 62.2 |
| 2015 Wells Fargo Master Loan Facility |  | 32.0 |
| 2023 Syndicated Revolving Credit Facility | 120.0 |  |
| Finance lease liability | 8.3 | 8.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total debt outstanding | 3593.4 | 3158.5 |
| Add—unamortized premium on 4.50% Senior Notes due 2028 | 0.3 | 0.5 |
| Add—unamortized premium on 4.75% Senior Notes due 2030 | 0.8 | 1.1 |
| Less—debt issuance costs | (22.6) | (21.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt, including current portion | 3572.0 | 3138.6 |
| Less—current portion, net of debt issuance costs | (479.2) | (114.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt | $3092.8 | $3023.9 |

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The aggregate maturities of long-term debt as of December 31, 2025 are as follows (in millions):

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| | |
|:---|:---|
| 2026 | $484.4 |
| 2027 | 42.4 |
| 2028 | 610.2 |
| 2029 | 837.7 |
| 2030 | 482.9 |
| Thereafter | 1135.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total maturities of long-term debt | $3593.4 |

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*Senior Notes issued in 2021*

In connection with the LHM acquisition, on November 19, 2021, the Company completed its offering of $800 million aggregate principal amount of 4.625% senior notes due 2029 (the "2029 Notes") and $600 million aggregate principal amount of 5.000% senior notes due 2032 (the "2032 Notes").

The Company paid lender fees of $17.5 million in conjunction with the offering of the 2029 Notes and 2032 Notes and incurred additional debt issuance costs of $4.0 million.

The lender fees and other debt issuance costs incurred are being amortized over the terms of the 2029 and 2032 Notes using the effective interest method.

The 2029 Notes will mature on November 15, 2029. If we sell certain of our assets or experience specific kinds of changes of control, we must offer to repurchase the 2029 Notes.

The 2032 Notes mature on February 15, 2032. We may redeem some or all of the 2032 Notes at any time on and after November 15, 2026 at redemption prices specified in the 2032 Notes Indenture. Prior to November 15, 2026, we may also redeem up to 40% of the aggregate principal amount of the 2032 Notes using the proceeds from certain equity offerings at a redemption price of 105% of their principal amount plus accrued and unpaid interest to, if any, but not including the redemption date. In addition, we may redeem some or all of the 2032 Notes at any time prior to November 15, 2026 at a price equal to 100% of the principal amount thereof plus a make-whole premium set forth in the 2032 Notes Indenture, and accrued and unpaid interest, if any. If we sell certain of our assets or experience specific kinds of changes of control, we must offer to repurchase the 2032 Notes.

We are a holding company with no independent assets or operations. For all relevant periods presented, our 2029 Notes and 2032 Notes have been fully and unconditionally guaranteed, on a joint and several basis, by substantially all of our subsidiaries other than Landcar Administration Company, Landcar Agency, Inc., and Landcar Casualty Company (collectively, the "TCA Non-Guarantor Subsidiaries").

*Senior Notes issued in 2020*

In connection with the proposed acquisition of the Park Place dealerships announced in December 2019 ("2019 Acquisition"), on February 19, 2020, the Company completed its offering of senior unsecured notes (the "February 2020 Offering"), consisting of $525.0 million aggregate principal amount of 4.50% Senior Notes due 2028 (the "Existing 2028 Notes") and together with the Additional 2028 Notes ((as defined below), the "2028 Notes") and $600.0 million aggregate principal amount of 4.75% Senior Notes due 2030 (the "Existing 2030 Notes" and, together with the Existing 2028 Notes, the "Existing Notes") and together with the Additional 2030 Notes ((as defined below), the "2030 Notes"). The Company paid lender fees of 6.8 million in conjunction with the February 2020 Offering and incurred additional debt issuance costs of 3.1 million.

As a result of the termination of the 2019 Acquisition, the Company delivered a notice of special mandatory redemption to holders of its Existing 2028 Notes and Existing 2030 Notes pursuant to which it would redeem on a pro rata basis (1) $245.0 million of the Existing 2028 Notes and (2) $280.0 million of the 2030 Existing Notes, in each case, at 100% of the respective principal amount plus accrued and unpaid interest to but excluding, the special mandatory redemption date. On March 30, 2020, the Company completed the redemption.

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In September 2020, following the consummation of the Park Place acquisition, the Company completed an issuance of $250.0 million aggregate principal amount of additional senior unsecured notes (the "September 2020 Offering") consisting of $125.0 million aggregate principal amount of additional 4.50% Senior Notes due 2028 (the "Additional 2028 Notes") at a price of 101.00% of par, plus accrued interest from September 1, 2020, and $125.0 million aggregate principal amount of additional 4.75% Senior Notes due 2030 (the "Additional 2030 Notes" and together with the Additional 2028 Notes, the "Additional Notes") at a price of 101.75% of par, plus accrued interest from September 1, 2020. After deducting the initial purchasers' discounts of $2.8 million, we received net proceeds of approximately $250.6 million from the September 2020 Offering. The $3.5 million premium paid by the initial purchasers of the Additional Notes was recorded as a component of long-term debt on our consolidated balance sheet and is being amortized as a reduction of interest expense over the remaining term of the Additional Notes. The proceeds of the September 2020 Offering were used to redeem certain seller notes issued in connection with the Park Place acquisition and repay approximately $50.0 million in aggregate principal amount outstanding under our Revolving Credit Facility.

The lender fees and other debt issuance costs incurred are being amortized over the terms of the Notes using the effective interest method.

The 2028 Notes and 2030 Notes mature on March 1, 2028 and March 1, 2030, respectively. Interest is payable semiannually, on March 1 and September 1 of each year. The February 2020 Offering, together with additional borrowings and cash on hand, was incurred to (i) fund the acquisition of substantially all of the assets of Park Place, (ii) redeem all of our outstanding $600.0 million aggregate principal amount of the 6.0% Notes (the "6.0% Notes") and (iii) pay fees and expenses in connection with the foregoing.

The remaining outstanding 2028 Notes and 2030 Notes are subject to customary covenants, events of default and optional redemption provisions. In addition, the remaining outstanding 2028 Notes and 2030 Notes were required to be registered under the Securities Act of 1933 within 270 days of the closing date for the offering. The Company completed the registration of the 2028 Notes and 2030 Notes in October 2020.

For all relevant periods presented, our 2028 Notes and 2030 Notes have been fully and unconditionally guaranteed, on a joint and several basis, by substantially all of our subsidiaries other than the TCA Non-Guarantor Subsidiaries.

*Mortgage Financings*

We have multiple mortgage agreements with finance companies affiliated with our vehicle manufacturers ("captive mortgages"). During the year ended December 31, 2024, we modified the captive mortgages to extend the payment term and maturity of the captive mortgages to August 2034. In addition, the interest rate was amended to 5.8% over the revised term. As of December 31, 2025, and 2024, we had total mortgage notes payable outstanding of $27.2 million and $29.6 million, respectively, that are collateralized by the associated real estate.

*2025 Wells Fargo Real Estate Facility*

On July 21, 2025, certain subsidiaries of the Company borrowed $546.5 million under the 2025 Real Estate Facility, dated as of July 21, 2025 (the "Real Estate Credit Agreement") by and among the Company, certain of the Company's subsidiaries that own or lease the real estate financed thereunder, as borrowers, Wells Fargo, as administrative agent, and the various financial institutions parties thereto, as lenders. The Real Estate Facility matures ten years from the initial funding date. The Company used the proceeds from these borrowings, together with other available funds, to finance the Herb Chambers acquisition.

Term loans under the 2025 Real Estate Facility bear interest, at our option, based on (1) SOFR plus 2% per annum or (2) the Base Rate (as described below) plus 1% per annum. The Base Rate is the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus .50% and (c) Term SOFR for a one month tenor in effect on such date plus 1%. We are required to make 118 consecutive monthly principal payments, commencing September 1, 2025, with a balloon repayment of the outstanding principal amount of loans due on the Maturity Date. Borrowings und&nbsp;&nbsp;&nbsp;&nbsp;er the 2025 Real Estate Facility are guaranteed by the Company and certain of the Company's subsidiaries, and are collateralized by first priority liens, subject to certain permitted exceptions, on all of the real property financed thereunder.

The representations, warranties and covenants in the Real Estate Credit Agreement are customary for financing transactions of this nature, including, among others, a requirement to comply with a minimum consolidated fixed charge coverage ratio and maximum consolidated total lease adjusted leverage ratio, in each case as set out in the Real Estate Credit Agreement. In addition, certain other covenants could restrict our ability to incur additional debt, pay dividends or acquire or dispose of assets. The Real Estate Credit Agreement also provides for events of default that are customary for financing transactions of this

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nature, including cross-defaults to other material indebtedness. Upon the occurrence of an event of default, we could be required by the Real Estate Credit Agreement to immediately repay all amounts outstanding thereunder.

As of December 31, 2025, we had $537.4 million in term loans outstanding under the 2025 Real Estate Facility.

*2021 Real Estate Facility*

On December 17, 2021, we entered into a real estate term loan credit agreement with Bank of America, N.A., as administrative agent and the various financial institutions party thereto, as lenders, which provides for term loans in an aggregate amount equal to $689.7 million (the "2021 Real Estate Facility"). The Company used the proceeds from these borrowings to finance the purchase of the real property in connection with the LHM acquisition as well as other acquisitions and unencumbered real property.

Term loans under the 2021 Real Estate Facility bear interest, at our option, based on (1) Daily Simple SOFR plus 1.55% - 1.95% per annum (as determined by the consolidated total lease adjusted leverage ratio), or (2) the Base Rate (as described below) plus 0.55% - 0.95% per annum (as determined by the consolidated total lease adjusted leverage ratio). The Base Rate is the highest of (i) the Federal Funds rate plus 0.50%, (ii) the Bank of America prime rate, (iii) the Daily Simple SOFR plus 1.0% and (iv) 1.00%. We will be required to make 20 consecutive quarterly principal payments of 1.25% of the initial amount of each loan, with a balloon repayment of the outstanding principal amount of loans due on the maturity date. The 2021 Real Estate Facility matures five years from the initial funding date. Borrowings under the 2021 Real Estate Facility are guaranteed by us, and are collateralized by first priority liens, subject to certain permitted exceptions, on all of the real property financed thereunder.

As of December 31, 2025 and 2024, we had $442.1 million and $579.9 million, respectively, in term loans outstanding under the 2021 Real Estate Facility.

*2021 BofA Real Estate Facility*

On May 20, 2021, the Company and certain of its subsidiaries borrowed $184.4 million under a real estate term loan credit agreement, dated as of May 10, 2021 (the "2021 BofA Real Estate Credit Agreement"), by and among the Company and certain of its subsidiaries, Bank of America, N.A., as administrative agent and the various financial institutions party thereto, as lenders, which provides for term loans in an aggregate amount equal to $184.4 million, subject to customary terms and conditions (the "2021 BofA Real Estate Facility"). The Company used the proceeds from these borrowings to finance the exercise of its option to purchase certain of the leased real property under the definitive agreements entered into in connection with the acquisition of the Park Place Dealerships. The Company completed the purchase of the leased real property on May 20, 2021.

On May 25, 2022, we entered into the second amendment to the credit agreement to, among other things, revise the benchmark interest rate payable on term loans under our 2021 BofA Real Estate Facility. Interest is payable, at our option, based on (1) SOFR plus 0.10%, plus 1.65% per annum or (2) the Base Rate plus 0.65% per annum. The Base Rate is the highest of (i) the Federal Funds rate plus 0.50%, (ii) the Bank of America prime rate, (iii) SOFR plus 0.10%, plus 1.00%, and (iv) 1.00%.

We are required to make 39 consecutive quarterly principal payments of 1.00% of the initial amount of each loan, with a balloon repayment of the outstanding principal amount of loans due on the maturity date. The 2021 BofA Real Estate Facility matures ten years from the initial funding date. Borrowings under the 2021 BofA Real Estate Facility are guaranteed by us and each of our operating dealership subsidiaries that leased the real estate now financed under the 2021 BofA Real Estate Facility, and are collateralized by first priority liens, subject to certain permitted exceptions, on all of the real property financed thereunder.

The representations and covenants in the 2021 BofA Real Estate Facility are customary for financing transactions of this nature, including, among others, a requirement to comply with a minimum consolidated fixed charge coverage ratio and maximum consolidated total lease adjusted leverage ratio, in each case as set out in the 2021 BofA Real Estate Facility. In addition, certain other covenants could restrict our ability to incur additional debt, pay dividends or acquire or dispose of assets. The 2021 BofA Real Estate Facility also provides for events of default that are customary for financing transactions of this nature, including cross-defaults to other material indebtedness. Upon the occurrence of an event of default, we could be required by the 2021 BofA Real Estate Facility to immediately repay all amounts outstanding thereunder.

As of December 31, 2025 and 2024, we had $151.2 million and $158.6 million, respectively, in term loans outstanding under the 2021 BofA Real Estate Facility.

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*2018 BofA Real Estate Facility*

On November 13, 2018, we entered into a real estate term loan credit agreement (as amended, restated or supplemented from time to time, the "2018 BofA Real Estate Credit Agreement") with Bank of America, as lender, providing for term loans in an aggregate amount not to exceed $128.1 million, subject to customary terms and conditions (the "2018 BofA Real Estate Facility"). Our right to make draws under the 2018 BofA Real Estate Facility terminated on November 13, 2019. We are required to make quarterly principal payments of 1.25% of the initial amount of each loan on a twenty-year repayment schedule, with a balloon repayment of the outstanding principal amount of loans due on November 13, 2025. Borrowings under the 2018 BofA Real Estate Facility are guaranteed by each of our operating dealership subsidiaries whose real estate is financed under the 2018 BofA Real Estate Facility, and are collateralized by first priority liens, subject to certain permitted exceptions, on all of the real property financed thereunder.

On May 25, 2022, we entered into the third amendment to the credit agreement to revise the benchmark interest rate payable on term loans under our 2018 BofA Real Estate Facility. Interest is payable, at our option, based on SOFR plus 0.10%, plus 1.50% or the Base Rate plus 0.50%. The Base Rate is the highest of (i) the Federal Funds rate plus 0.50%, (ii) the Bank of America prime rate, (iii) SOFR plus 0.10%, plus 1.00%, and (iv) 1.00%.

In November 2025, we paid off the aggregate principal amounts remaining under the 2018 BofA Real Estate Facility for an aggregate amount of approximately $34.2 million. As of December 31, 2024, we had $37.9 million in term loans outstanding under the 2018 BofA Real Estate Facility.

*2018 Wells Fargo Master Loan Facility*

On November 16, 2018, certain of our subsidiaries entered into a master loan agreement (the "2018 Wells Fargo Master Loan Agreement" and, together with the 2013 BofA Real Estate Credit Agreement, the 2015 Wells Fargo Master Loan Agreement and the 2018 BofA Real Estate Agreement, the "Existing Real Estate Credit Agreements") with Wells Fargo Bank, National Association, as lender, which provides for term loans to certain of our subsidiaries that are borrowers under the Wells Fargo Master Loan Agreement in an aggregate amount not to exceed $100.0 million (the "Wells Fargo Master Loan Facility"), subject to customary terms and conditions (the "2018 Wells Fargo Master Loan Facility"). Our right to make draws under the 2018 Wells Fargo Master Loan Facility terminated on June 30, 2020. We are required to make quarterly principal payments with respect to the initial amount of each loan in 108 equal monthly principal payments based on a hypothetical nineteen-year amortization schedule, with a balloon repayment of the outstanding principal amount of loans due on December 1, 2028. Borrowings under the 2018 Wells Fargo Master Loan Facility can be voluntarily prepaid in whole or in part any time without premium or penalty. Borrowings under the 2018 Wells Fargo Master Loan Facility are guaranteed by us pursuant to an unconditional guaranty, and all of the real property financed by any of our operating dealership subsidiaries under the 2018 Wells Fargo Master Loan Facility is collateralized by first priority liens, subject to certain permitted exceptions.

On June 1, 2022, certain of our subsidiaries entered into the second amendment to the master loan agreement that revised interest payable from a LIBOR reference rate to SOFR plus 0.10%, plus an applicable margin based on a pricing grid ranging from 1.50% to 1.85% per annum based on our consolidated total lease adjusted leverage ratio.

As of December 31, 2025 and 2024, we had $57.2 million and $62.2 million, respectively, outstanding borrowings under the 2018 Wells Fargo Master Loan Facility.

*2015 Wells Fargo Master Loan Facility*

On February 3, 2015, certain of our subsidiaries entered into an amended and restated master loan agreement (as amended, restated or supplemented from time to time, the "2015 Wells Fargo Master Loan Agreement") with Wells Fargo Bank, National Association ("Wells Fargo"), as lender, which provides form term loans to certain of our subsidiaries that are borrowers under the 2015 Wells Fargo Master Loan Agreement in an aggregate amount not to exceed $100.0 million (the "2015 Wells Fargo Master Loan Facility"). Our right to make draws under the 2015 Wells Fargo Master Loan Facility terminated on February 1, 2016. We are required to make quarterly principal payments with respect to the initial amount of each loan in 108 equal monthly principal payments based on a hypothetical nineteen-year amortization schedule, with a balloon repayment of the outstanding principal amount of loans due on February 1, 2025. Borrowings under the 2015 Wells Fargo Master Loan Facility can be voluntarily prepaid in whole or in part any time without premium or penalty. Borrowings under the 2015 Wells Fargo Master Loan Facility are guaranteed by us pursuant to an unconditional guaranty, and all of the real property financed by any of our operating dealership subsidiaries under the 2015 Wells Fargo Master Loan Facility is collateralized by first priority liens, subject to certain permitted exceptions.

On June 1, 2022, certain of our subsidiaries entered into the second amendment to the master loan agreement that revised interest payable from a LIBOR reference rate to SOFR plus 0.10%, plus 1.85% per annum.

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The outstanding balance under this agreement in the amount of $31.6 million was paid off in May 2025. As of December 31, 2024 we had $32.0 million outstanding under the 2015 Wells Fargo Master Loan Facility.

*2013 BofA Real Estate Facility*

On September 26, 2013, we entered into a real estate term loan credit agreement (the "2013 BofA Real Estate Credit Agreement") with Bank of America, N.A. ("Bank of America"), as lender, providing for term loans in an aggregate amount not to exceed $75.0 million, subject to customary terms and conditions (the "2013 BofA Real Estate Facility"). Our right to make draws under the 2013 BofA Real Estate Facility terminated on December 26, 2013. In June 2023, the Company prepaid the aggregate principal amounts remaining under the 2013 BofA Real Estate Facility for an aggregate amount of approximately $23.9 million with cash on hand.

On May 25, 2022, we entered into the third amendment to the credit agreement to revise the benchmark interest rate payable on term loans under our 2013 BofA Real Estate Facility. Interest is payable, at our option, based on SOFR plus 0.10%, plus 1.50% or the Base Rate plus 0.50%. The Base Rate is the highest of (i) the Federal Funds rate plus 0.50%, (ii) the Bank of America prime rate, (iii) SOFR plus 0.10%, plus 1.00%, and (iv) 1.00%. Our right to make draws under the 2013 BofA Real Estate Facility terminated on December 26, 2013.

*Summary of Mortgages*

Below is a summary of our outstanding mortgage notes payable, the carrying values of the related collateralized real estate, and year of maturity as of December 31, 2025 and 2024:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|<br>**Mortgage Agreement** | **Aggregate Principal Outstanding** | **Carrying Value of Collateralized Related Real Estate** | **Maturity Dates** | **Aggregate Principal Outstanding** | **Carrying Value of Collateralized Related Real Estate** | **Maturity Dates** |
| Captive mortgages | $27.2 | $84.2 | 2034 | $29.6 | $84.9 | 2034 |
| 2025 Real Estate Facility | 537.4 | 591.4 | 2035 |  |  | N/A |
| 2021 Real Estate Facility | 442.1 | 694.9 | 2026 | 579.9 | 845.9 | 2026 |
| 2021 BofA Real Estate Facility | 151.2 | 191.2 | 2031 | 158.6 | 195.0 | 2031 |
| 2018 BofA Real Estate Facility |  |  | N/A | 37.9 | 59.4 | 2025 |
| 2018 Wells Fargo Master Loan Facility | 57.2 | 81.6 | 2028 | 62.2 | 94.4 | 2028 |
| 2015 Wells Fargo Master Loan Facility |  |  | N/A | 32.0 | 93.4 | 2025 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total mortgage debt | $1215.1 | $1643.3 |  | $900.2 | $1362.8 |  |

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*Revolving Credit Facility*

As discussed above under our "Floor Plan Notes Payable—Non-Trade" footnote, the 2023 Senior Credit Facility includes a $925.0 million Revolving Credit Facility. We may request Bank of America to issue letters of credit on our behalf thereunder up to $50.0 million. Availability under the Revolving Credit Facility is limited by borrowing base calculations and is reduced on a dollar-for-dollar basis by the aggregate face amount of any outstanding letters of credit. As of December 31, 2025, we had $25.2 million in outstanding letters of credit, $120.0 million of outstanding borrowings, and $747.3 million of borrowing availability, with an additional $495.0 million available to convert from our new vehicle floorplan facility. As of December 31, 2024, we had $14.0 million in outstanding letters of credit, nothing drawn on our Revolving Credit Facility and $486.0 million of borrowing availability. Proceeds from borrowings from time to time under the revolving credit facility may be used for among other things, acquisitions, working capital and capital expenditures.

*Stock Repurchase and Dividend Restrictions*

The 2023 Senior Credit Facility and the Indentures currently allow for restricted payments without limit so long as our Consolidated Total Leverage Ratio (as defined in the 2023 Senior Credit Facility and the Indentures) is not greater than 3.0 to 1.0 after giving effect to such proposed restricted payments. Restricted payments generally include items such as dividends, share repurchases, unscheduled repayments of subordinated debt, or purchases of certain investments. Subject to our continued compliance with a consolidated fixed charge coverage ratio and a maximum consolidated total lease adjusted leverage ratio, in

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each case as set out in the Indentures, restricted payments capacity additions (or subtractions if negative) equal to a base level plus the cumulative amount of (i) 50% of our net income (as defined in the 2023 Senior Credit Facility) plus (ii) 100% of any cash proceeds we receive from the sale of equity interests minus (iii) the dollar amount of share purchases made and dividends paid during the defined measurement periods, subject to certain exceptions. In the event that our Consolidated Total Leverage Ratio does (or would) exceed 3.0 to 1.0, the 2023 Senior Credit Facility and the Indentures would then also allow for restricted payments under mutually exclusive parameters, subject to certain exclusions. The Company may otherwise make restricted payments only up to the aforementioned cumulative capacity. Our restricted payment capacity balance as of December 31, 2025 and 2024 was $1.34 billion and $1.22 billion, respectively.

*Representations and Covenants*

We are subject to a number of covenants in our various debt and lease agreements, including those described below. We were in compliance with all of our covenants throughout 2025. Failure to comply with any of our debt covenants would constitute a default under the relevant debt agreements, which would entitle the lenders under such agreements to terminate our ability to borrow under the relevant agreements and accelerate our obligations to repay outstanding borrowings, if any, unless compliance with the covenants is waived. In many cases, defaults under one of our agreements could trigger cross-default provisions in our other agreements. If we are unable to remain in compliance with our financial or other covenants, we would be required to seek waivers or modifications of our covenants from our lenders, or we would need to raise debt and/or equity financing or sell assets to generate proceeds sufficient to repay such debt. We cannot give any assurance that we would be able to successfully take any of these actions on terms, or at times, that may be necessary or desirable.

The representations and covenants contained in the agreement governing the 2023 Senior Credit Facility are customary for financing transactions of this nature including, among others, a requirement to comply with a minimum consolidated fixed charge coverage ratio and maximum consolidated total lease adjusted leverage ratio, in each case as set out in the agreement governing the 2023 Senior Credit Facility. In addition, certain other covenants could restrict the Company's ability to incur additional debt, pay dividends or acquire or dispose of assets.

The agreement governing the 2023 Senior Credit Facility also provides for events of default that are customary for financing transactions of this nature, including cross-defaults to other material indebtedness. In certain instances, an event of default under either the Revolving Credit Facility or the Used Vehicle Floor Plan Facility could be, or result in, an event of default under the New Vehicle Floor Plan Facility, and vice versa. Upon the occurrence of an event of default, the Company could be required to immediately repay all amounts outstanding under the applicable facility.

The representations and covenants contained in the 2025 Real Estate Facility are customary for financing transactions of this nature, including, among others, a requirement to comply with a minimum consolidated fixed charge coverage ratio and maximum consolidated total lease adjusted leverage ratio, in each case as set out in the 2025 Real Estate Facility. In addition, certain other covenants could restrict our ability to incur additional debt, pay dividends or acquire or dispose of assets. The 2025 Real Estate Facility also provides for events of default that are customary for financing transactions of this nature, including cross-defaults to other material indebtedness. Upon the occurrence of an event of default, we could be required to immediately repay all amounts outstanding thereunder.

The representations and covenants contained in the 2021 BofA Real Estate Facility are customary for financing transactions of this nature, including, among others, a requirement to comply with a minimum consolidated fixed charge coverage ratio and maximum consolidated total lease adjusted leverage ratio, in each case as set out in the 2021 BofA Real Estate Facility. In addition, certain other covenants could restrict our ability to incur additional debt, pay dividends or acquire or dispose of assets. The 2021 BofA Real Estate Facility also provides for events of default that are customary for financing transactions of this nature, including cross-defaults to other material indebtedness. Upon the occurrence of an event of default, we could be required to immediately repay all amounts outstanding thereunder.

The representations and covenants contained in the 2021 Real Estate Facility are customary for financing transactions of this nature, including, among others, a requirement to comply with a minimum consolidated fixed charge coverage ratio and maximum consolidated total lease adjusted leverage ratio, in each case as set out in the 2021 Real Estate Facility. In addition, certain other covenants could restrict our ability to incur additional debt, pay dividends or acquire or dispose of assets. The 2021 Real Estate Facility also provides for events of default that are customary for financing transactions of this nature, including cross-defaults to other material indebtedness. Upon the occurrence of an event of default, we could be required to immediately repay all amounts outstanding thereunder.

The representations, warranties and covenants contained in the 2018 Wells Fargo Master Loan Agreement and the related documents are customary for financing transactions of this nature, including, among others, a requirement to comply with a minimum consolidated fixed charge coverage ratio and maximum consolidated total lease adjusted leverage ratio. In addition, certain other covenants could restrict our ability to incur additional debt, pay dividends or acquire or dispose of assets. The

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2018 Wells Fargo Master Loan Agreement also provides for events of default that are customary for financing transactions of this nature, including cross-defaults to other material indebtedness. Upon the occurrence of an event of default, we could be required by the 2018 Wells Fargo Master Loan Facility to immediately repay all amounts outstanding thereunder.

**15. FINANCIAL INSTRUMENTS AND FAIR VALUE**

In determining fair value, we use various valuation approaches, including market and income approaches. Accounting standards establish a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs that reflect our assumptions about the assumptions market participants would use in pricing the asset or liability, developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of inputs as follows:

Level 1-Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access.

Level 2-Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Assets and liabilities utilizing Level 2 inputs include interest rate swap instruments, exchange-traded debt securities that are not actively traded or do not have a high trading volume, and certain real estate properties on a non-recurring basis.

Level 3-Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Asset and liability measurements utilizing Level 3 inputs include those used in estimating the fair value of certain non-financial assets and non-financial liabilities in purchase acquisitions and those used in the assessment of impairment for goodwill and intangible franchise rights.

The availability of observable inputs can vary and is affected by a wide variety of factors. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment required to determine fair value is greatest for instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed is determined based on the lowest level input that is significant to the fair value measurement.

Fair value is a market-based exit price measure considered from the perspective of a market participant who holds the asset or owes the liability rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, our assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. We use inputs that are current as of the measurement date, including during periods of significant market fluctuations.

Financial instruments consist primarily of cash and cash equivalents, investments, contracts-in-transit, accounts receivable, cash surrender value of corporate-owned life insurance policies, accounts payable, floor plan notes payable, subordinated long-term debt, mortgage notes payable, and interest rate swap instruments. The carrying values of our financial instruments, with the exception of subordinated long-term debt and mortgage notes payable bearing interest at fixed rates, approximate fair value primarily due to (i) their short-term nature, (ii) recently completed market transactions, or (iii) existence of variable interest rates, which approximate market rates. The fair value of our subordinated long-term debt is based on reported market prices in an inactive market that reflects Level 2 inputs. We estimate the fair value of our mortgage notes payable using a present value technique based on current market interest rates for similar types of financial instruments that reflect Level 2 inputs.

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A summary of the carrying values and fair values of our Notes and our mortgage notes payable is as follows:

---

| | | |
|:---|:---|:---|
| | **As of December 31,** | **As of December 31,** |
| | **2025** | **2024** |
| | **(In millions)** | **(In millions)** |
| **<u>Carrying Value:</u>** |  |  |
| 4.50% Senior Notes due 2028 | $403.9 | $403.4 |
| 4.625% Senior Notes due 2029 | 793.4 | 791.9 |
| 4.75% Senior Notes due 2030 | 443.2 | 442.8 |
| 5.00% Senior Notes due 2032 | 593.9 | 593.0 |
| Mortgage notes payable bearing interest at fixed rates | 27.2 | 29.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total carrying value | $2261.6 | $2260.6 |
| **<u>Fair Value:</u>** |  |  |
| 4.50% Senior Notes due 2028 | $399.9 | $385.8 |
| 4.625% Senior Notes due 2029 | 778.0 | 742.0 |
| 4.75% Senior Notes due 2030 | 433.9 | 412.7 |
| 5.00% Senior Notes due 2032 | 579.0 | 546.0 |
| Mortgage notes payable bearing interest at fixed rates | 27.7 | 29.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total fair value | $2218.5 | $2115.8 |

---

*Interest Rate Swap Agreements*

We currently have four interest rate swap agreements. These swaps are designed to provide a hedge against changes in variable rate cash flows regarding fluctuations in the SOFR rate. The following table provides information on the attributes of each swap as of December 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Inception Date** | **Notional Principal at Inception** | **Notional Value as of December 31, 2025** | **Notional Principal at Maturity** | **Maturity Date** |
| | **(In millions)** | **(In millions)** | **(In millions)** | |
| January 2022 | $300.0 | $243.8 | $228.8 | December 2026 |
| January 2022 | $250.0 | $250.0 | $250.0 | December 2031 |
| May 2021 | $184.4 | $151.2 | $110.6 | May 2031 |
| July 2020 | $93.5 | $65.8 | $50.6 | December 2028 |

---

The fair value of cash flow swaps is calculated as the present value of expected future cash flows, determined on the basis of forward interest rates and present value factors. Fair value estimates reflect a credit adjustment to the discount rate applied to all expected cash flows under the swaps. Other than this input, all other inputs used in the valuation for these swaps are designated to be Level 2 fair values. The fair value of our swaps for the years ended December 31, 2025 and 2024, reflect a net asset of $47.0 million and $76.6 million, respectively.

The following table provides information regarding the fair value of our interest rate swap agreements and the impact on the consolidated balance sheets:

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| | | |
|:---|:---|:---|
| | **As of December 31,** | **As of December 31,** |
| | **2025** | **2024** |
| | **(In millions)** | **(In millions)** |
| Other current assets | $13.2 | $20.3 |
| Other long-term assets | 33.8 | 56.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total fair value | $47.0 | $76.6 |

---

Our interest rate swaps qualify for cash flow hedge accounting treatment. These interest rate swaps are marked to market at each reporting date and any unrealized gains or losses are included in accumulated other comprehensive income and reclassified to interest expense in the same period or periods during which the hedged transactions affect earnings. Information about the

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effect of our interest rate swap agreements in the accompanying consolidated statements of income and consolidated statements of comprehensive income, is as follows (in millions):

---

| | | | |
|:---|:---|:---|:---|
| **For the Year Ended December 31,** | **Results Recognized in Accumulated Other Comprehensive Income/(Loss)<br>(Effective Portion)** | **Location of Results Reclassified from Accumulated Other Comprehensive Income/(Loss) to Earnings** | **Results Reclassified from Accumulated Other Comprehensive Income/(Loss)<br>to Earnings** |
| 2025 | $(6.2) | Other interest expense, net | $(23.4) |
| 2024 | $31.0 | Other interest expense, net | $(34.2) |
| 2023 | $12.1 | Other interest expense, net | $(34.7) |

---

On the basis of yield curve conditions as of December 31, 2025 and including assumptions about future changes in fair value, we expect the amount to be reclassified out of accumulated other comprehensive income into earnings within the next 12 months will be gains of approximately $13.2 million.

*Investments*

The table below presents the Company's investment securities that are measured at fair value on a recurring basis aggregated by the level in the fair value hierarchy within which those measurements fall:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Cash equivalents | $6.7 | $— | $— | $6.7 |
| Short-term investments | 0.5 |  |  | 0.5 |
| U.S. Treasuries | 2.6 |  |  | 2.6 |
| Municipal |  | 5.0 |  | 5.0 |
| Corporate | 0.3 | 166.7 |  | 167.0 |
| Mortgage and other asset-backed securities |  | 240.1 |  | 240.1 |
| &nbsp;&nbsp;Total | $3.5 | $411.8 | $— | $415.3 |

---

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| | | | | |
|:---|:---|:---|:---|:---|
| | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Cash equivalents | $12.7 | $— | $— | $12.7 |
| Short-term investments | 3.5 | 10.9 |  | 14.4 |
| U.S. Treasuries | 2.6 |  |  | 2.6 |
| Municipal |  | 10.6 |  | 10.6 |
| Corporate |  | 151.9 |  | 151.9 |
| Mortgage and other asset-backed securities |  | 169.1 |  | 169.1 |
| &nbsp;&nbsp;Total | $6.1 | $342.5 | $— | $348.6 |

---

We review the fair value hierarchy classifications each reporting period. Changes in the observability of the valuation attributes may result in a reclassification of certain investments. Such reclassifications are reported as transfers in and out of Level 3, or between other levels, at the beginning fair value for the reporting period in which the changes occur.

Available-for-sale debt securities are recorded at fair value and any unrealized gains or losses are included in accumulated other comprehensive income and reclassified to finance and insurance, net revenue in the period or periods during which the debt securities are sold and the gains or losses are realized. Information about the effect of our available-for-sale debt securities

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in the accompanying consolidated statements of income and consolidated statements of comprehensive income, is as follows (in millions):

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| | | | |
|:---|:---|:---|:---|
| **For the Year Ended December 31,** | **Results Recognized in Accumulated Other Comprehensive Income/(Loss)<br>(Effective Portion)** | **Location of Results Reclassified from Accumulated Other Comprehensive Income/(Loss) to Earnings** | **Results Reclassified from Accumulated Other Comprehensive Income/(Loss)<br>to Earnings** |
| 2025 | $7.4 | Revenue-Finance and insurance, net | $0.7 |
| 2024 | $(1.9) | Revenue-Finance and insurance, net | $0.6 |
| 2023 | $4.1 | Revenue-Finance and Insurance, net | $(1.1) |

---

**16. INCOME TAXES**

The components of income tax expense are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
| | **2025** | **2024** | **2023** |
| | **(In millions)** | **(In millions)** | **(In millions)** |
| Current: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal | $115.4 | $75.5 | $128.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;State | 26.4 | 16.8 | 30.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current income tax expense | 141.8 | 92.3 | 159.0 |
| Deferred: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal | 20.7 | 43.2 | 33.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;State | 7.7 | 9.5 | 6.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred income tax expense | 28.4 | 52.7 | 39.8 |
| Total income tax expense | $170.2 | $145.0 | $198.8 |

---

A reconciliation of the statutory federal rate to the effective tax rate is as follows (dollar amounts shown in millions):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
| | **2025** | **%** | **2024** | **%** | **2023** | **%** |
| Income tax provision at the statutory rate | $139.0 | 21.0 | $120.8 | 21.0 | $168.3 | 21.0 |
| State income tax expense, net of federal benefit (a) | 28.6 | 4.3 | 22.8 | 4.0 | 29.8 | 3.7 |
| Non-deductible items | 2.9 | 0.5 | 2.5 | 0.4 | 1.7 | 0.2 |
| Other, net | (0.3) | (0.1) | (1.1) | (0.2) | (1.0) | (0.1) |
| Income tax expense | $170.2 | 25.7 | $145.0 | 25.2 | $198.8 | 24.8 |

---

_____________________________

(a)State taxes in Massachusetts, Florida, and Virginia make up the majority (greater than 50 percent) of the tax effect in this category.

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

Deferred income tax asset and liability components consisted of the following:

---

| | | |
|:---|:---|:---|
| | **As of December 31,** | **As of December 31,** |
| | **2025** | **2024** |
| | **(In millions)** | **(In millions)** |
| Deferred income tax assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | $55.3 | $41.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;F&I chargeback liabilities | 10.5 | 11.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other accrued liabilities | 5.4 | 4.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 3.6 | 4.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 62.3 | 56.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | 12.5 | 11.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred income tax assets | $149.6 | $129.2 |
| Deferred income tax liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible asset amortization | $154.2 | $135.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 89.0 | 80.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | 60.5 | 54.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments, net | 13.4 | 18.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred sales commissions | 41.2 | 27.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | 1.9 | 1.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred income tax liabilities | $360.2 | $316.9 |
| Net deferred income tax liabilities | $(210.6) | $(187.7) |

---

There were no valuation allowances recorded against the deferred tax assets as of December 31, 2025 or 2024.

As of December 31, 2025, we had an income tax payable of $4.4 million included in accounts payable and other accrued liabilities.

As of December 31, 2024, we had an income tax receivable of $3.4 million, included in other current assets and an income tax payable of $5.7 million included in accounts payable and other accrued liabilities.

The statutes of limitation related to our consolidated Federal income tax returns are closed for all tax years up to and including 2021. The expiration of the statutes of limitation related to the various state income tax returns that we and our subsidiaries file varies by state. The 2020 through 2024 tax years generally remain subject to examination by most state tax authorities. We believe that our tax positions comply with applicable tax law and that we have adequately provided for these matters.

During the years ended December 31, 2025, 2024, and 2023 we made income tax payments, net of refunds received, totaling $139.8 million, $78.7 million, and $191.9 million, respectively.

---

| | | | |
|:---|:---|:---|:---|
| **Income Taxes Paid** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  | **(In millions)** | **(In millions)** | **(In millions)** |
| Federal | $118.3 | $63.7 | $158.0 |
| State (a) | 21.6 | 15.0 | 33.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $139.8 | $78.7 | $191.9 |

---

__________________________

(a)The amount of income taxes paid during the year for individual states does not meet the 5% disaggregation threshold.

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**17. OTHER LONG-TERM LIABILITIES**

Other long-term liabilities consisted of the following:

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| | | |
|:---|:---|:---|
| | **As of December 31,** | **As of December 31,** |
| | **2025** | **2024** |
| | **(In millions)** | **(In millions)** |
| Unearned premiums | $16.1 | $18.0 |
| Accrued finance and insurance chargebacks | 24.2 | 24.3 |
| Unclaimed property | 16.6 | 13.8 |
| Other | 0.3 | 0.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other long-term liabilities | $57.1 | $56.4 |

---

**18. SUPPLEMENTAL CASH FLOW INFORMATION**

During the years ended December 31, 2025, 2024, and 2023, we made interest payments, including amounts capitalized, totaling $274.9 million, $269.6 million, and $149.3 million, respectively. Included in these interest payments are $82.8 million, $99.4 million, and $4.0 million, of floor plan interest payments for the years ended December 31, 2025, 2024, and 2023, respectively.

During the years ended December 31, 2025, 2024, and 2023, we transferred $507.5 million, $489.7 million, and $431.2 million, respectively, of loaner vehicles from other current assets to inventory in our consolidated balance sheets. The aforementioned amounts are included in changes in inventories in the operating activities section of the accompanying consolidated statement of cash flows.

**19. LEASES**

We lease real estate and equipment primarily under operating lease agreements. For leases with terms in excess of 12 months, we record a right-of-use ("ROU") asset and lease liability based on the present value of lease payments over the lease term. Escalation clauses, lease payments dependent on existing rates/indexes, renewal options, and purchase options are included within the determination of lease payments when appropriate. We have elected the practical expedient not to separate lease and non-lease components for all leases that qualify, except for information technology assets that are embedded within service agreements (such as software license arrangements). Leases are classified as either finance or operating, with classification impacting the pattern of expense recognition in the income statement.

When available, the implicit rate is utilized to discount lease payments to present value; however, substantially all of our leases do not provide a readily determinable implicit rate. Therefore, we estimate our incremental borrowing rate to discount the lease payments based on information available at lease commencement.

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*Balance Sheet Presentation*

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| | | | |
|:---|:---|:---|:---|
| | | **As of December 31,** | **As of December 31,** |
|<br>**Leases** |<br>**Classification** | **2025** | **2024** |
|  |  | **(In millions)** | **(In millions)** |
| Assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;Current |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating | Assets held for sale | $1.8 | $1.9 |
| &nbsp;&nbsp;&nbsp;Non-Current |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating | Operating lease right-of-use assets | 240.6 | 220.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance | Property and equipment, net | 8.3 | 8.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total right-of-use assets |  | $250.8 | $230.4 |
| Liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;Current |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating | Current maturities of operating leases | $27.6 | $28.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating | Liabilities held for sale | 0.4 | 0.2 |
| &nbsp;&nbsp;&nbsp;Non-Current |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating | Operating lease liabilities | 221.6 | 200.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating | Liabilities held for sale | 1.5 | 1.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance | Long-term debt | 8.3 | 8.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total lease liabilities |  | $259.3 | $238.4 |

---

*Lease Term and Discount Rate* 

---

| | | |
|:---|:---|:---|
| | **As of December 31,** | **As of December 31,** |
| | **2025** | **2024** |
| Weighted Average Lease Term - Operating Leases | 13.2 years | 12.8 years |
| Weighted Average Lease Term - Finance Lease | 34.7 years | 35.7 years |
| Weighted Average Discount Rate - Operating Leases | 5.2% | 5.0% |
| Weighted Average Discount Rate - Finance Lease | 4.4% | 4.4% |

---

*Lease Costs* 

The following table provides certain information related to the lease costs for finance and operating leases during the years ended December 31, 2025 and 2024.

---

| | | |
|:---|:---|:---|
| | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
| | **2025** | **2024** |
| | **(In millions)** | **(In millions)** |
| Finance lease cost (Interest) | $0.4 | $0.4 |
| Operating lease cost | 42.7 | 40.0 |
| Short-term lease cost | 5.0 | 4.6 |
| Variable lease cost | 1.5 | 1.1 |
|  | $49.6 | $46.1 |

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*Supplemental Cash Flow Information*

The following table presents supplemental cash flow information for leases during the years ended December 31, 2025 and 2024.

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| | | |
|:---|:---|:---|
| | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
| | **2025** | **2024** |
| | **(In millions)** | **(In millions)** |
| **Supplemental Cash Flow:** |  |  |
| Cash paid for amounts included in the measurements of lease liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating cash flows from finance lease | $0.4 | $0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating cash flows from operating leases | $42.1 | $38.4 |
| Right-of-use assets obtained in exchange for new operating lease liabilities | $53.1 | $12.0 |

---

During the years ended December 31, 2025 and 2024, we obtained $53.1 million and $12.0 million, respectively, of right-of-use assets in exchange for new operating lease liabilities. The activity during the year ended December 31, 2025 was primarily as a result of a business combination.

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities as of December 31, 2025, including leases related to liabilities associated with assets held for sale.

---

| | | |
|:---|:---|:---|
| | **Finance** | **Operating** |
| | **(In millions)** | **(In millions)** |
| 2025 | $0.4 | $40.1 |
| 2026 | 0.4 | 34.7 |
| 2027 | 0.4 | 29.5 |
| 2028 | 0.4 | 27.1 |
| 2029 | 0.4 | 25.5 |
| Thereafter | 14.8 | 197.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total minimum lease payments | $16.9 | $353.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Amount of lease payments representing interest | (8.6) | (102.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Present value of future minimum lease payments | $8.3 | $251.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: current obligations under leases (a) |  | (28.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term lease obligation (b) | $8.3 | $223.1 |

---

__________________________

(a) Includes $0.4 million of operating lease liabilities classified as liabilities associated with assets held for sale.

(b) Includes $1.5 million of operating lease liabilities classified as liabilities associated with assets held for sale.

Certain of our lease agreements include financial covenants and incorporate by reference the financial covenants set forth in the 2023 Senior Credit Facility. A breach of any of these covenants could immediately give rise to certain landlord remedies under our various lease agreements, the most severe of which include the following: (i) termination of the applicable lease and/or other leases with the same or an affiliated landlord under a cross-default provision, (ii) eviction from the premises; and (iii) the landlord having a claim for various damages.

**20. SEGMENT INFORMATION**

As of December 31, 2025, the Company had two reportable segments: (1) Dealerships and (2) TCA. Our dealership operations are organized by management into geographic region-based groups within the Dealerships segment. The operations of our F&I product provider is reflected within our TCA segment. Our Chief Operating Decision Maker (CODM) is our Chief Executive Officer who manages the business, regularly reviews financial information and allocates resources at the geographic region level for our dealerships and at the TCA segment level for our F&I product provider's operations. The geographic dealership group operating segments have been aggregated into one operating segment disclosed as the Dealerships reportable segment since their operations (i) have similar economic characteristics (our regions all have similar long-term average gross margins), (ii) offer similar products and services (all of our regions offer new and used vehicles, parts and service, and finance

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and insurance products), (iii) have similar customers, (iv) have similar distribution and marketing practices (all of our regions distribute products and services through dealership facilities that region to customers in similar ways), and (v) operate under similar regulatory environments.

TCA's vehicle protection products are sold through affiliated dealerships and the revenue from the related commissions is included in finance and insurance, net revenue in the Dealerships segment before consolidation. The corresponding claims expense incurred and the amortization of deferred acquisition costs is recorded as a cost of sales in the TCA segment. The Dealerships segment also provides vehicle repair and maintenance services to TCA customers in connection with claims related to TCA's vehicle protection products. The gross profit earned by our parts and service departments for work performed for TCA customers is reflected as a reduction of parts and service cost of sales in the accompanying consolidated statements of income. The costs incurred by TCA for work performed by our parts and service departments are included in finance and insurance cost of sales in the accompanying consolidated statements of income.

The CODM evaluates the performance of each reportable segment primarily through segment operating income. Segment operating income is derived from GAAP operating income, adjusted to exclude the effects of asset impairments and to include floor plan interest expense. Asset impairments are excluded as they typically do not arise from the ordinary course of operations. By removing these charges, segment operating income better represents the underlying operational performance of the segments. Floor plan interest expense is included in segment operating income because floor plan financing is a required component of the business model dictated by manufacturers. As such, it is an inherent and unavoidable cost of operations. Including floor plan interest expense ensures that the measurement of segment profitability reflects the operational realities and obligations associated with inventory financing, providing a clearer representation of the Dealerships segment's performance. This approach ensures a consistent and meaningful evaluation of each segment's operational performance by normalizing results for items that may not directly reflect ongoing segment profitability. By utilizing segment operating income in this manner, the CODM can make informed decisions regarding resource allocation, evaluate the relative performance of individual segments, and monitor the effectiveness of strategic initiatives.

All floor plan interest expense and asset impairments are exclusively within the dealerships segment for the periods presented. Therefore, there are no reconciling items between segment operating income and income from operations for the TCA segment.

Goodwill acquired in the Herb Chambers acquisition, which closed in July 2025, of $341.7 million was allocated to the Dealerships segment.

The majority of TCA's revenue arises from sales through our affiliated dealerships. Intercompany profits and losses are eliminated in consolidation.

The significant expense categories and amounts are consistent with the segment-level information that is regularly provided to the CODM. Certain intersegment expenses are included within the amounts shown. Rent and related expenses include rent expense, utilities, property and casualty insurance, real estate tax and personal property tax. Other segment items for the TCA segment relate to selling, general and administrative expenses.

Reportable segment financial information for the years ended December 31, 2025, 2024 and 2023 is as follows:

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

---

| | | | |
|:---|:---|:---|:---|
| | **For the year ended December 31, 2025** | **For the year ended December 31, 2025** | **For the year ended December 31, 2025** |
| | **Dealerships** | **TCA** | **Total** |
| | **(In millions)** | **(In millions)** | **(In millions)** |
| Revenue from external customers | $17672.9 | $326.1 | $17999 |
| Intersegment revenue |  |  |  |
| &nbsp;&nbsp;F&I | 235.1 |  | 235.1 |
| &nbsp;&nbsp;Parts and service | 36.8 |  | 36.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total intersegment revenue | 271.9 |  | 271.9 |
|  | $17944.8 | $326.1 | $18270.9 |
| *Reconciliation of revenue* |  |  |  |
| &nbsp;&nbsp;Elimination of intersegment revenue |  |  | (271.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total consolidated revenue |  |  | $17999.0 |
| Less: |  |  |  |
| &nbsp;&nbsp;Cost of sales |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;New vehicle | 8874.2 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Used vehicle | 4966.3 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Parts and service | 1071.2 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance and insurance |  | 239.0 |  |
| Selling, general and administrative expenses |  |  |  |
| &nbsp;&nbsp;Personnel costs | 1299.3 |  |  |
| &nbsp;&nbsp;Rent and related expenses | 131.6 |  |  |
| &nbsp;&nbsp;Advertising | 68.8 |  |  |
| &nbsp;&nbsp;Other selling, general and administrative expense | 501.4 |  |  |
| &nbsp;&nbsp;Other segment items |  | 7.2 |  |
| Depreciation and amortization | 82.3 | 0.2 |  |
| Floor plan interest expense | 91.2 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Segment operating income | $858.6 | $79.8 | $938.4 |
| *Reconciliation of segment operating income* |  |  |  |
| &nbsp;&nbsp;Intersegment eliminations |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total intersegment revenue eliminations |  |  | (271.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total intersegment cost of sales eliminations |  |  | 223.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferral of SG&A expense (related to capitalized contracts offset by amortization) |  |  | 20.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total intersegment eliminations |  |  | (27.9) |
| &nbsp;&nbsp;Asset impairments |  |  | (141.0) |
| &nbsp;&nbsp;Other interest expense, net |  |  | (187.5) |
| &nbsp;&nbsp;Gain on dealership divestitures, net |  |  | 80.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income before income taxes |  |  | $662.2 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **As of and for the year ended December 31, 2025** | **As of and for the year ended December 31, 2025** | **As of and for the year ended December 31, 2025** | **As of and for the year ended December 31, 2025** | **As of and for the year ended December 31, 2025** |
| | **Dealerships** | **TCA** | **Total Reportable Segments** | **Eliminations** | **Total** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Capital expenditures | $205.3 | $— | $205.3 | $— | $205.3 |
| Other interest expense | $187.5 | $— | $187.5 | $— | $187.5 |
| Amortization of deferred acquisition costs | $— | $187.3 | $187.3 | $(187.3) | $— |
| Total assets | $10389.5 | $1024.3 | $11413.8 | $204.4 | $11618.2 |

---

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

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| | | | |
|:---|:---|:---|:---|
| | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** |
| | **Dealerships** | **TCA** | **Total** |
| | **(In millions)** | **(In millions)** | **(In millions)** |
| Revenue from external customers | $16885 | $303.6 | $17188.6 |
| Intersegment revenue |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F&I | 183.0 |  | 183.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parts and service | 39.5 |  | 39.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total intersegment revenue | 222.5 |  | 222.5 |
|  | $17107.5 | $303.6 | $17411.1 |
| *Reconciliation of revenue* |  |  |  |
| &nbsp;&nbsp;Elimination of intersegment revenue |  |  | (222.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total consolidated revenue |  |  | $17188.6 |
| Less: |  |  |  |
| &nbsp;&nbsp;Cost of sales |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;New vehicle | 8209.3 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Used vehicle | 4972.7 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Parts and service | 1043.0 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance and insurance |  | 223.4 |  |
| Selling, general and administrative expenses |  |  |  |
| &nbsp;&nbsp;Personnel costs | 1256.2 |  |  |
| &nbsp;&nbsp;Rent and related expenses | 142.3 |  |  |
| &nbsp;&nbsp;Advertising | 61.8 |  |  |
| &nbsp;&nbsp;Other selling, general and administrative expense | 441.0 |  |  |
| &nbsp;&nbsp;Other segment items |  | 7.0 |  |
| Depreciation and amortization | 74.6 | 0.4 |  |
| Floor plan interest expense | 89.9 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Segment operating income | $816.7 | $72.8 | $889.5 |
| *Reconciliation of segment operating income* |  |  |  |
| &nbsp;&nbsp;Intersegment eliminations |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total intersegment revenue eliminations |  |  | (222.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total intersegment cost of sales eliminations |  |  | 208.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferral of SG&A expense (related to capitalized contracts offset by amortization) |  |  | 19.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total intersegment eliminations |  |  | 5.8 |
| &nbsp;&nbsp;Asset impairments |  |  | (149.5) |
| &nbsp;&nbsp;Other interest expense, net |  |  | (179.1) |
| &nbsp;&nbsp;Gain on dealership divestitures, net |  |  | 8.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income before income taxes |  |  | $575.3 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **As of and for the year ended December 31, 2024** | **As of and for the year ended December 31, 2024** | **As of and for the year ended December 31, 2024** | **As of and for the year ended December 31, 2024** | **As of and for the year ended December 31, 2024** |
| | **Dealerships** | **TCA** | **Total Reportable Segments** | **Eliminations** | **Total** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Capital expenditures | $308.2 | $— | $308.2 | $— | $308.2 |
| Other interest expense | $179.1 | $— | $179.1 | $— | $179.1 |
| Amortization of deferred acquisition costs | $— | $170.2 | $170.2 | $(170.2) | $— |
| Total assets | $9227.6 | $1049.4 | $10277.0 | $60.1 | $10337.0 |

---

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

---

| | | | |
|:---|:---|:---|:---|
| | **For the year ended December 31, 2023** | **For the year ended December 31, 2023** | **For the year ended December 31, 2023** |
| | **Dealerships** | **TCA** | **Total** |
| | **(In millions)** | **(In millions)** | **(In millions)** |
| Revenue from external customers | $14517.5 | $285.2 | $14802.7 |
| Intersegment revenue |  |  |  |
| &nbsp;&nbsp;F&I | 146.8 |  | 146.8 |
| &nbsp;&nbsp;Parts and service | 34.6 |  | 34.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total intersegment revenue | 181.5 |  | 181.5 |
|  | $14699.0 | $285.2 | $14984.2 |
| *Reconciliation of revenue* |  |  |  |
| &nbsp;&nbsp;Elimination of intersegment revenue |  |  | (181.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total consolidated revenue |  |  | $14802.7 |
| Less: |  |  |  |
| &nbsp;&nbsp;Cost of sales |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;New vehicle | 6927.8 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Used vehicle | 4150.2 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Parts and service | 949.9 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance and insurance |  | 208.1 |  |
| Selling, general and administrative expenses |  |  |  |
| &nbsp;&nbsp;Personnel costs | 1106.5 |  |  |
| &nbsp;&nbsp;Rent and related expenses | 118.7 |  |  |
| &nbsp;&nbsp;Advertising | 47.3 |  |  |
| &nbsp;&nbsp;Other selling, general and administrative expense | 366.0 |  |  |
| &nbsp;&nbsp;Other segment items |  | 7.4 |  |
| Depreciation and amortization | 67.1 | 0.7 |  |
| Floor plan interest expense | 9.6 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Segment operating income | $955.9 | $69.0 | $1025.0 |
| *Reconciliation of segment operating income* |  |  |  |
| &nbsp;&nbsp;Intersegment eliminations |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total intersegment revenue eliminations |  |  | (181.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total intersegment cost of sales eliminations |  |  | 189.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferral of SG&A expense (related to capitalized contracts offset by amortization) |  |  | 28.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total intersegment eliminations |  |  | 36.1 |
| &nbsp;&nbsp;Asset impairments |  |  | (117.2) |
| &nbsp;&nbsp;Other interest expense, net |  |  | (156.1) |
| &nbsp;&nbsp;Gain on dealership divestitures, net |  |  | 13.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income before income taxes |  |  | $801.3 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **As of and for the year ended December 31, 2023** | **As of and for the year ended December 31, 2023** | **As of and for the year ended December 31, 2023** | **As of and for the year ended December 31, 2023** | **As of and for the year ended December 31, 2023** |
| | **Dealerships** | **TCA** | **Total Reportable Segments** | **Eliminations** | **Total** |
| | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** | **(In millions)** |
| Capital expenditures | $142.3 | $— | $142.3 | $— | $142.3 |
| Other interest expense | $156.1 | $— | $156.1 | $— | $156.1 |
| Amortization of deferred acquisition costs | $— | $161.9 | $161.9 | $(155.9) | $6.0 |
| Total assets | $9199.4 | $913.9 | $10113.3 | $46.1 | $10159.4 |

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

**21. COMMITMENTS AND CONTINGENCIES**

On August 3, 2022, we received a Civil Investigative Demand ("CID") from the FTC requesting information and documents concerning the Company's corporate structure and operation of six of its dealerships. We responded to the CID by producing information and documents for the period August 1, 2019 to April 24, 2023. On February 8, 2024, the FTC staff counsel sent to us a proposed consent order and draft complaint, alleging that the Company and three of our dealerships had violated Section 5 of the Federal Trade Commission Act ("FTC Act") and certain provisions of the Equal Credit Opportunity Act in connection with the sale of add-on products (e.g., vehicle service contracts, maintenance plans, etc.), and advising that it would recommend the filing of an enforcement action if the Company did not settle the FTC's claims. On August 16, 2024, after discussions with the FTC stalled, the FTC initiated an administrative proceeding by filing an enforcement action against the Company. On October 4, 2024, the Company filed suit against the FTC in the United States District Court for the Northern District of Texas, seeking to enjoin the FTC's administrative proceeding on the ground that the administrative proceeding was unconstitutional. Among other things, the Company's lawsuit asserts that the FTC's administrative proceeding violates the Company's constitutional rights by denying it the right to a jury trial and by allowing the FTC to serve as both prosecutor and judge in the same proceeding. The Company's lawsuit also contends that FTC commissioners and in-house administrative law judges are effectively insulated from removal by the President in contravention of the Constitution's requirements. The FTC's administrative proceeding and the Company's lawsuit remain pending. While the Company disputes the FTC's allegations, we are at this time unable to reasonably predict the possible outcome of this matter, or provide a reasonably possible range of loss, if any. There can be no assurance that the Company will succeed in either the FTC's administrative proceeding against the Company or in the Company's lawsuit against the FTC, and the FTC's allegations, whether meritorious or not, may adversely affect our ability to attract customers, result in the loss of existing customers, harm our reputation and cause us to incur defense costs and other expenses.

Our dealerships are party to dealer and framework agreements with applicable vehicle manufacturers. In accordance with these agreements, each dealership has certain rights and is subject to restrictions typical in the industry. The ability of these manufacturers to influence the operations of the dealerships or the loss of any of these agreements could have a materially negative impact on our operating results.

In some instances, manufacturers may have the right, and may direct us, to implement costly capital improvements to dealerships as a condition to entering into, renewing, or extending franchise agreements with them. Manufacturers also typically require that their franchises meet specific standards of appearance. These factors, either alone or in combination, could cause us to use our financial resources on capital projects that we might not have planned for or otherwise determined to undertake.

From time to time, we and our dealerships are or may become involved in various claims relating to, and arising out of, our business and our operations. These claims may involve, but not be limited to, financial and other audits by vehicle manufacturers or lenders and certain federal, state, and local government authorities, which have historically related primarily to (i) incentive and warranty payments received from vehicle manufacturers, or allegations of violations of manufacturer agreements or policies, (ii) compliance with lender rules and covenants, and (iii) payments made to government authorities relating to federal, state, and local taxes, as well as compliance with other government regulations. Claims may also arise through litigation, government proceedings, and other dispute resolution processes. Such claims, including class actions, could relate to, but may not be limited to, the practice of charging administrative fees and other fees and commissions, employment-related matters, truth-in-lending and other dealer assisted financing obligations, contractual disputes, actions brought by governmental authorities, and other matters. We evaluate pending and threatened claims and establish loss contingency reserves based upon outcomes we currently believe to be probable and reasonably estimable.

We believe we have adequately accrued for the potential impact of loss contingencies that are probable and reasonably estimable. Based on our review of the various types of claims currently known to us, there is no indication of material reasonably possible losses in excess of amounts accrued in the aggregate. We currently do not anticipate that any known claim will materially adversely affect our financial condition, liquidity, or results of operations. However, the outcome of any matter cannot be predicted with certainty, and an unfavorable resolution of one or more matters presently known or arising in the future could have a material adverse effect on our financial condition, liquidity, or results of operations.

A significant portion of our business involves the sale of vehicles, parts, or vehicles composed of parts that are manufactured outside the United States. As a result, our operations are subject to customary risks of importing merchandise, including fluctuations in the relative values of currencies, import duties, exchange controls, trade restrictions, work stoppages and general political and socio-economic conditions in foreign countries. The United States or the countries from which our products are imported may, from time to time, impose new quotas, duties, tariffs, or other restrictions; or adjust presently prevailing quotas, duties, or tariffs, which may affect our operations and our ability to purchase imported vehicles and/or parts at reasonable prices.

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

Substantially all of our facilities are subject to federal, state and local provisions regarding the discharge of materials into the environment. Compliance with these provisions has not had, nor do we expect such compliance to have, any material effect upon our capital expenditures, net earnings, financial condition, liquidity or competitive position. We believe that our current practices and procedures for the control and disposition of such materials comply with applicable federal, state and local requirements. No assurances can be provided, however, that future laws or regulations, or changes in existing laws or regulations, would not require us to expend significant resources in order to comply therewith.

We had $25.2 million of letters of credit outstanding as of December 31, 2025, which are required by certain of our insurance providers. In addition, as of December 31, 2025, we maintained a $24.7 million surety bond line in the ordinary course of our business. Our letters of credit and surety bond line are considered to be off-balance sheet arrangements.

Our other material commitments include (i) floor plan notes payable, (ii) operating leases, (iii) long-term debt and (iv) interest on long-term debt, as described elsewhere herein.

**22. SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS** 

On March 13, 2012, our Board of Directors, upon the recommendation of our Compensation and Human Resources Committee, approved the 2012 Equity Incentive Plan (the "2012 Plan"). On April 18, 2012, our shareholders approved the 2012 Plan, which replaced our previous equity incentive plan. The 2012 Plan expired on March 13, 2022 and provided for the grant of options, performance share units, restricted share units and shares of restricted stock to our directors, officers and employees in the total amount of 1.5 million shares.

On April 17, 2019, the stockholders of the Company approved the Asbury Automotive Group, Inc. 2019 Equity and Incentive Compensation Plan (the "2019 Plan") and authorized a total of 1,590,000 shares of common stock for issuance under the 2019 Plan ("Plan Shares"). The Plan Shares include 641,363 shares of common stock which remained unissued under the 2012 Plan. No further grants of awards will be made under the 2012 Plan; however outstanding awards under the 2012 Plan will continue in effect in accordance with their terms and conditions. There were approximately 1.2 million shares available for grant in accordance with the 2019 Plan as of December 31, 2025.

We issue shares of our common stock upon the vesting of performance share units or restricted share units. These shares are issued from our authorized and not outstanding common stock. In addition, in connection with the vesting of equity-based awards, we repurchase a portion of the shares issued equal to the amount of employee income tax withholding.

We recognized $27.7 million ($7.1 million tax benefit), $26.7 million ($6.7 million tax benefit) and $23.5 million ($5.8 million tax benefit) in share-based compensation expense for the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025, there was $20.7 million of total unrecognized share-based compensation expense related to non-vested share-based awards granted under the 2012 Plan and 2019 Plan, and the weighted average period over which it is expected to be recognized is 1.5 years. Further, we expect to recognize $3.0 million of this expense in 2026, $11.1 million in 2027, and $6.6 million in 2028.

*Performance Share Units*

During the year ended December 31, 2025, the Compensation and Human Resources Committee of the Board of Directors approved the grant of up to 64,309 performance share units, which represents 150% of the target award. Performance share units provide an opportunity for the employee-recipient to receive a number of shares of our common stock based on our performance during a specified period following the grant as measured against objective performance goals as determined by the Compensation and Human Resources Committee of our Board of Directors. The actual number of units earned may range from 0% to 150% of the target number of units depending upon achievement of the performance goals. Performance share units vest in three equal annual installments with one-third of the award vesting on each of the (i) later of the first anniversary of the grant date, or the date the Compensation and Human Resources Committee determines the actual award, (ii) second anniversary of the grant date and (iii) third anniversary of the grant date. Upon vesting, each performance share unit equals one share of common stock of the Company. Compensation cost for performance share units is based on the closing price of our common stock on the date of grant and the ultimate performance level achieved and is recognized on a graded basis over the three-year vesting period.

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

The following table summarizes information about performance share units for 2025:

---

| | | |
|:---|:---|:---|
| | **Shares** | **Weighted Average Grant Date<br> Fair Value** |
| Non-vested at January 1, 2025 | 118537 | $214.87 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Granted | 64309 | 294.48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vested | (38142) | 207.74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forfeited or unearned | (53468) | 219.24 |
| Non-vested at December 31, 2025 | 91236 | $271.46 |

---

The weighted average grant-date fair value of performance share units and total fair value of performance share units vested are summarized in the following table:

---

| | | | |
|:---|:---|:---|:---|
| | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
| | **2025** | **2024** | **2023** |
| Weighted average grant-date fair value of performance share units granted | $294.48 | $216.89 | $232.24 |
| Total fair value of performance share units vested (in millions) | $7.9 | $7.9 | $7.0 |

---

*Restricted Share Units*

During the year ended December 31, 2025, the Compensation and Human Resources Committee of the Board of Directors approved the grant of 79,952 shares of restricted share units. Restricted share units generally vest in three equal annual installments commencing on the first anniversary of the grant date. Compensation cost for restricted share units is based on the closing price of our common stock on the date of grant and is recognized on a straight-line basis over the three-year vesting period.

The following table summarizes information about restricted share units for 2025:

---

| | | |
|:---|:---|:---|
| | **Shares** | **Weighted Average Grant Date<br> Fair Value** |
| Non-vested at January 1, 2025 | 112889 | $216.84 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Granted | 79952 | 288.37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vested | (83603) | 231.32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forfeited | (6885) | 235.09 |
| Non-vested at December 31, 2025 | 102353 | $259.65 |

---

The weighted average grant-date fair value of restricted share units and total fair value of restricted share units vested are summarized in the following table:

---

| | | | |
|:---|:---|:---|:---|
| | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
| | **2025** | **2024** | **2023** |
| Weighted average grant-date fair value of restricted share units granted | $288.37 | $216.09 | $231.70 |
| Total fair value of restricted share units vested (in millions) | $19.3 | $16.9 | $13.1 |

---

*Restricted Stock Awards*

Restricted stock awards vest in three equal annual installments commencing on the first anniversary of the grant date. Compensation cost for restricted stock awards is based on the closing price of our common stock on the date of grant and is recognized on a straight-line basis over the three-year vesting period. The Company's most recent grant of restricted stock awards occurred in 2019 and has since been replaced with restricted share units. As of December 31, 2024 all restricted stock awards have vested.

The weighted average grant-date fair value of restricted stock awards and total fair value of restricted stock awards vested are summarized in the following table:

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

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| | | | |
|:---|:---|:---|:---|
| | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
| | **2025** | **2024** | **2023** |
| Weighted average grant-date fair value of restricted stock granted | $— | $— | $— |
| Total fair value of restricted stock awards vested (in millions) | $— | $0.2 | $0.2 |

---

*Employee Retirement Plan*

The Company sponsors the Asbury Automotive Retirement Savings Plan (the "Retirement Savings Plan"), a 401(k) plan, for eligible employees. Employees electing to participate in the Retirement Savings Plan may contribute up to 75% of their annual eligible compensation. IRS rules limited total participant contributions during 2025 to $23,500, or $31,000 if age 50 or more. After one year of employment, we match 50% of employees' contributions up to 4% of their eligible compensation. Employer contributions vest on a graded basis over 4 years after the date of hire. The Company's expense related to employer matching contributions totaled $19.2 million, $18.4 million and, $16.0 million for the years ended December 31, 2025, 2024 and 2023, respectively.

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

**Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure**

None.

**Item 9A. Controls and Procedures**

**Disclosure Controls and Procedures**

As of the end of the period covered by this report, we conducted an evaluation, under the supervision and with the participation of our principal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act"). Based on this evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective as of December 31, 2025.

**Management's Report on Internal Control Over Financial Reporting**

Our management is responsible for establishing and maintaining adequate internal control over the Company's financial reporting, as such term is defined in Exchange Act Rule 13(a)-15(f). Our management, including the principal executive officer and the principal financial officer, assessed the effectiveness of our internal control over financial reporting as of December 31, 2025. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—Integrated Framework (2013 framework). Based on our assessment under the framework in Internal Control—Integrated Framework issued by COSO, our management concluded that our internal control over financial reporting was effective as of December 31, 2025.

Our auditors, Ernst & Young LLP, an independent registered public accounting firm, have audited and reported on our consolidated financial statements and on the effectiveness of our internal control over financial reporting. Their reports are contained herein. &nbsp;&nbsp;&nbsp;&nbsp;

During 2025, we acquired substantially all of the assets, including all real property and businesses of The Herb Chambers dealership group pursuant to a Purchase and Sale Agreement with various entities that comprise The Herb Chambers Dealerships (the "Herb Chambers acquisition"). The Herb Chambers acquisition comprised 33 dealerships, 52 franchises and three collision centers. As permitted by the Securities and Exchange Commission, the scope of our section 404 evaluation for the fiscal year ended December 31, 2025, does not include an evaluation of the internal control over financial reporting of these acquired operations. The results of the Herb Chambers acquisition are included in our consolidated financial statements from the date of acquisition and represented approximately $1.89 billion of consolidated total assets as of December 31, 2025, and approximately $1.16 billion of consolidated revenues for the year then ended.

**Remediation of Previously Reported Material Weakness** 

As previously disclosed in Item 9A, Controls and Procedures, in our Annual Report on Form 10-K for the year ended December 31, 2024, as a result of control deficiencies in information technology general controls ("ITGCs") identified at the Jim Koons dealerships that constitute a material weakness, we determined that the Company's internal control over financial reporting was not effective as of December 31, 2024. Specifically, the material weakness was due to insufficient control activities at a third-party software vendor for the Dealer Management System ("DMS") utilized by Koons. The third-party software vendor who supported the DMS on behalf of Koons did not have a Service Organization Control ("SOC") report that covered the DMS being utilized. The ineffective ITGCs limited the level of assurance over the completeness and accuracy of information used in certain automated and manual business controls.

During 2025, management implemented a previously disclosed remediation plan that included the transition of the Jim Koons dealerships to another DMS in 2025. During the fourth quarter of 2025, the Company completed the testing of operating effectiveness of the remediated controls and found them to be effective. As a result, we concluded that the material weakness had been remediated as of December 31, 2025.

**Changes in Internal Control Over Financial Reporting**

Other than with respect to the remediation efforts described above, there were no changes in our internal control over financial reporting (as such term is defined in Rule 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934) during the quarter ended December 31, 2025 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

**Item 9B. Other Information**

None of the Company's directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the Company's fiscal quarter ended December 31, 2025.

**Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections** 

None.

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

**PART III** 

**Item 10. Directors, Executive Officers, and Corporate Governance.**

Reference is made to the information to be set forth in the "Proposal No. 1 - Election of Directors," under the subheadings "Committees of the Board," "Code of Business Conduct and Ethics and Corporate Governance Guidelines" and other subsections under the principal heading of "Governance of the Company," under the subheadings "Insider Trading Policy" and "Delinquent Section 16(a) Reports" under the principal heading of "Securities Owned by Management & Certain Beneficial Owners," under the subheading "2025 Director Compensation Table" under the principal heading of "Director Compensation," and in the "Executive Officers" sections of our Proxy Statement to be filed within 120 days after the end of our fiscal year, which information is incorporated herein by reference.

**Item 11. Executive Compensation.**

Reference is made to the information to be set forth in the "Compensation Discussion & Analysis," "Compensation & Human Resources Committee Report," "Compensation Committee Interlocks & Insider Participation," "Executive Compensation," "2025 Director Compensation Table," and "Governance of the Company" sections of our Proxy Statement to be filed within 120 days after the end of our fiscal year, which information is incorporated herein by reference.

**Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.**

Reference is made to the information to be set forth in the "Securities Owned by Management & Certain Beneficial Owners" and "Securities Authorized for Issuance under Equity Compensation Plans" sections of our Proxy Statement to be filed within 120 days after the end of our fiscal year, which information is incorporated herein by reference.

**Item 13. Certain Relationships and Related Transactions, and Director Independence.**

Reference is made to the information to be set forth under the "Related Person Transactions" and other subsections under the principal heading of "Governance of the Company" section of our Proxy Statement to be filed within 120 days after the end of our fiscal year, which information is incorporated herein by reference.

**Item 14. Principal Accountant Fees and Services.**

Reference is made to the information to be set forth under the subheading "Independent Registered Accounting Firm Fees" under the principal heading of "Proposal 3 - Ratification of Appointment of Independent Registered Public Accounting Firm" section of our Proxy Statement to be filed within 120 days after the end of our fiscal year, which information is incorporated herein by reference.

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

**PART IV**

**Item 15. Exhibits and Financial Statement Schedules**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The following documents are filed as a part of this annual report on Form 10-K:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Financial Statements: See index to Consolidated Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Financial Statement Schedules: None required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Exhibits required to be filed by Item 601 of Regulation S-K:

The Exhibits listed below are identified by numbers corresponding to the Exhibit Table of Item 601 of Regulation S-K.

---

| | |
|:---|:---|
| **Exhibit<br>Number** | **Description of Documents** |
| <u>[2.1](https://www.sec.gov/Archives/edgar/data/0001144980/000114498021000138/ex21-dealershippurchaseagr.htm)</u> | Purchase Agreement, dated September 28, 2021, by and among Asbury Automotive Group, L.L.C., through one of its subsidiaries, and certain identified members of the Larry H. Miller Dealership family of entities (incorporated by reference to Exhibit 2.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 filed on October 26, 2021)\*<sup>+</sup> |
| <u>[2.2](https://www.sec.gov/Archives/edgar/data/0001144980/000114498021000138/ex22-realestatepurchaseagr.htm)</u> | Real Estate Purchase and Sale Agreement, dated September 28, 2021, by and between Asbury Automotive Group, L.L.C., through one of its subsidiaries, Miller Family Real Estate L.L.C. and Larry H. Miller Corporation - Boise (incorporated by reference to Exhibit 2.2 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 filed on October 26, 2021)\* + |

| <u>[2.4](https://www.sec.gov/Archives/edgar/data/1144980/000119312523231116/d494750dex21.htm)</u> | Koons Purchase and Sale Agreement, dated September 7, 2023 by and among Asbury Automotive Group, L.L.C. and the Sellers (as defined therein) (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed with the SEC on September 8, 2023)\* |
| <u>[2.](https://www.sec.gov/Archives/edgar/data/1144980/000114498025000103/ex21-purchaseandsaleagreem.htm)[5](https://www.sec.gov/Archives/edgar/data/1144980/000114498025000103/ex21-purchaseandsaleagreem.htm)</u> | Purchase and Sale Agreement, dated February 14, 2025, by and among Asbury Automotive Group L.L.C., Herbert G. Chambers, Jennings Road Management Corp., the Dealership Companies (as defined therein) and the Real Estate Companies (as defined therein) (incorporated by reference to Exhibit 2.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 filed on April 30, 2025)\* |
| <u>[3.1](https://www.sec.gov/Archives/edgar/data/1144980/000114498016000196/amendedrestatedcertificate.htm)</u> | Amended and Restated Certificate of Incorporation of Asbury Automotive Group, Inc. (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K, filed with the SEC on April 25, 2016)\* |
| <u>[3.2](ex32by-laws.htm)</u> | By-Laws of Asbury Automotive Group, Inc. |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/1144980/000119312520042171/d894687dex41.htm)</u> | Indenture relating to the Senior Notes due 2028, dated as of February 19, 2020, among Asbury Automotive Group, Inc., each of the Guarantors named therein and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed with the SEC on February 20, 2020)\* |
| <u>[4.2](https://www.sec.gov/Archives/edgar/data/1144980/000119312520042171/d894687dex41.htm)</u> | Form of 4.50% Senior Note due 2028 (included as Exhibit A in Exhibit 4.1 to the Company's Current Report on Form 8-K filed with the SEC on February 20, 2020)\* |
| <u>[4.3](https://www.sec.gov/Archives/edgar/data/1144980/000119312520042171/d894687dex42.htm)</u> | Indenture relating to the Senior Notes due 2030, dated as of February 19, 2020, among Asbury Automotive Group, Inc., each of the Guarantors named therein and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed with the SEC on February 20, 2020)\* |
| <u>[4.4](https://www.sec.gov/Archives/edgar/data/1144980/000119312520042171/d894687dex42.htm)</u> | Form of 4.75% Senior Note due 2030 (included as Exhibit A in Exhibit 4.2 to the Company's Current Report on Form 8-K filed with the SEC on February 20, 2020)\* |
| <u>[4.5](https://www.sec.gov/Archives/edgar/data/1144980/000119312520247162/d38921dex43.htm)</u> | Officer's Certificate of Asbury Automotive Group, Inc. pursuant to the 2028 Notes Indenture, dated September 16, 2020 (incorporated by reference to Exhibit 4.3 of the Company's Current Report on Form 8-K filed on September 16, 2020)\* |
| <u>[4.6](https://www.sec.gov/Archives/edgar/data/1144980/000119312520247162/d38921dex44.htm)</u> | Officer's Certificate of Asbury Automotive Group, Inc. pursuant to the 2030 Notes Indenture, dated September 16, 2020 (incorporated by reference to Exhibit 4.4 of the Company's Current Report on Form 8-K filed on September 16, 2020)\* |
| <u>[4.7](https://www.sec.gov/Archives/edgar/data/1144980/000119312521335122/d265912dex41.htm)</u> | Indenture relating to the Senior Notes due 2029, dated as of November 19, 2021, among Asbury Automotive Group, Inc., each of the guarantors named therein and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed with the SEC on November 19, 2021)\* |
| <u>[4.8](https://www.sec.gov/Archives/edgar/data/1144980/000119312521335122/d265912dex41.htm)</u> | Form of 4.625% Senior Note due 2029 (included as Exhibit A in Exhibit 4.1 to the Company's Current Report on Form 8-K filed with the SEC on November 19, 2021)\* |

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

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| | |
|:---|:---|
| <u>[4.9](https://www.sec.gov/Archives/edgar/data/1144980/000119312521335122/d265912dex42.htm)</u> | Indenture relating to the Senior Notes due 2032, dated as of November 19, 2021, among Asbury Automotive Group, Inc., each of the guarantors named therein and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed with the SEC on November 19, 2021)\* |
| <u>[4.10](https://www.sec.gov/Archives/edgar/data/1144980/000119312521335122/d265912dex42.htm)</u> | Form of 5.000% Senior Note due 2029 (included as Exhibit A in Exhibit 4.2 to the Company's Current Report on Form 8-K filed with the SEC on November 19, 2021)\* |
| <u>[4.11](https://www.sec.gov/Archives/edgar/data/1144980/000114498021000075/ex49descriptionofsecurities.htm)</u> | Description of Registrant's Securities (incorporated by reference to Exhibit 4.9 of the Company's Annual Report on Form 10-K for the year ended December 31, 2020 filed on March 1, 2021)\* |
| <u>[10.1\*\*](https://www.sec.gov/Archives/edgar/data/1144980/000114498019000072/abg2019proxystatement.htm)</u> | 2019 Equity and Incentive Plan (incorporated by reference to Appendix A to the Company's Definitive Proxy Statement on Schedule 14A filed with the SEC on March 14, 2019)\* |
| <u>[10.](https://www.sec.gov/Archives/edgar/data/1144980/000114498021000075/ex1015equityawardagreement.htm)[2](https://www.sec.gov/Archives/edgar/data/1144980/000114498021000075/ex1015equityawardagreement.htm)[\*\*](https://www.sec.gov/Archives/edgar/data/1144980/000114498021000075/ex1015equityawardagreement.htm)</u> | Form of Equity Award Agreement under the 2019 Equity and Incentive Plan (incorporated by reference to Exhibit 10.15 of the Company's Annual Report on Form 10-K for the year ended December 31, 2020 filed on March 1, 2021)\* |
| <u>[10.3\*\*](https://www.sec.gov/Archives/edgar/data/1144980/000119312509097917/dex102.htm)</u> | Amended and Restated Key Executive Incentive Compensation Plan (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the SEC on May 4, 2009)\* |
| <u>[10.4\*\*](https://www.sec.gov/Archives/edgar/data/1144980/000114498018000088/ex101amendmentno1.htm)</u> | Amendment No. 1 to Amended and Restated Key Executive Incentive Compensation Plan (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 filed on April 26, 2018)\* |
| <u>[10.5\*\*](https://www.sec.gov/Archives/edgar/data/1144980/000119312510099784/dex107.htm)</u> | Form of Director and Officer Indemnification Agreement (incorporated by reference to Exhibit 10.7 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2010 filed on April 30, 2010)\* |
| <u>[10.6\*\*](https://www.sec.gov/Archives/edgar/data/1144980/000114498014000042/exhibit101employmentagreem.htm)</u> | Employment Agreement between Asbury Automotive Group, Inc. and David W. Hult, dated as of October 23, 2014 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on October 23, 2014)\* |
| <u>[10.7\*\*](https://www.sec.gov/Archives/edgar/data/1144980/000114498017000119/ex101822.htm)</u> | First Amendment to Employment Agreement between Asbury Automotive Group, Inc. and David W. Hult, dated as of August 21, 2017 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on August 22, 2017)\* |
| <u>[10.8\*\*](https://www.sec.gov/Archives/edgar/data/1144980/000114498020000116/ex101dhemploymentagree.htm)</u> | Second Amendment to Employment Agreement between Asbury Automotive Group, Inc. and David W. Hult, dated as of June 5, 2020 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on June 5, 2020)\* |
| <u>[10.9\*\*](https://www.sec.gov/Archives/edgar/data/1144980/000114498025000155/ex991thirdamendmenttoemplo.htm)</u> | Third Amendment to Employment Agreement between Asbury Automotive Group, Inc. and David W. Hult, dated as of December 5, 2025 (incorporated by reference to Exhibit 99.1 to the Company's Current Report on Form 8-K filed with the SEC on December 8, 2025)\* |
| <u>[10.10\*\*](https://www.sec.gov/Archives/edgar/data/1144980/000114498022000142/ex107-severancepayagreemen.htm)</u> | Severance Pay Agreement for Key Employee between Asbury Automotive Group, Inc. and Daniel Clara dated as of July 28, 2022 (incorporated by reference to Exhibit 10.7 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 filed on July 28, 2022)\* |
| <u>[10.11\*\*](https://www.sec.gov/Archives/edgar/data/1144980/000114498025000077/ex1011severancepayagreemen.htm)</u> | Severance Pay Agreement for Key Employee between Asbury Automotive Group, Inc. and Michael Welch dated as of October 21, 2021 (incorporated by reference to Exhibit 10.11 to the Company's Annual Report on Form 10-K for the year ended December 31, 2024 filed on February 26, 2025)\* |
| <u>[10.12\*\*](https://www.sec.gov/Archives/edgar/data/1144980/000114498017000063/ex1013milstein.htm)</u> | Severance Pay Agreement for Key Employee between Asbury Automotive Group, Inc. and Jed M. Milstein, dated as of February 21, 2017 (incorporated by reference to Exhibit 10.13 to the Company's Annual Report on Form 10-K for the year ended December 31, 2016 filed on February 23, 2017)\* |
| <u>[10.13\*\*](https://www.sec.gov/Archives/edgar/data/1144980/000114498025000077/ex1014severancepayagreemen.htm)</u> | Severance Pay Agreement for Key Employee between Asbury Automotive Group, Inc. and Dean Calloway, dated as of July 1, 2024 (incorporated by reference to Exhibit 10.14 to the Company's Annual Report on Form 10-K for the year ended December 31, 2024 filed on February 26, 2025)\* |
| <u>[10.14\*\*](https://www.sec.gov/Archives/edgar/data/1144980/000114498017000063/ex1012villasana.htm)</u> | Amended and Restated Severance Pay Agreement for Key Employee between Asbury Automotive Group, Inc. and George A. Villasana, dated as of February 21, 2017 (incorporated by reference to Exhibit 10.12 to the Company's Annual Report on Form 10-K for the year ended December 31, 2016 filed on February 23, 2017)\* |
| <u>[10.15\*\*](https://www.sec.gov/Archives/edgar/data/1144980/000114498024000106/ex101-agreement041924.htm)</u> | Transition and Retirement Agreement between Asbury Automotive Group, Inc. and George A. Villasana, dated as of April 18, 2024 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on April 19, 2024)\* |
| <u>[10.16\*\*](https://www.sec.gov/Archives/edgar/data/1144980/000114498025000077/ex1017severancepayagreemen.htm)</u> | Severance Pay Agreement for Key Employee between Asbury Automotive Group, Inc. and Miran Maric, dated as of March 8, 2022 (incorporated by reference to Exhibit 10.17 to the Company's Annual Report on Form 10-K for the year ended December 31, 2024 filed on February 26, 2025)\* |
| <u>[10.17](https://www.sec.gov/Archives/edgar/data/1144980/000119312513383642/d604313dex101.htm)</u> | Credit Agreement, dated as of September 26, 2013, among Asbury Automotive Group, Inc., certain of the subsidiaries of Asbury Automotive Group, Inc. and Bank of America, N.A. (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on September 30, 2013)\* |

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

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| | |
|:---|:---|
| <u>[10.18](https://www.sec.gov/Archives/edgar/data/1144980/000114498025000077/ex1033bofaasburyautomotive.htm)</u> | Fourth Amended and Restated Credit Agreement, dated as of October 20, 2023, by and among Asbury Automotive Group, Inc., as a borrower, certain of its subsidiaries, as vehicle borrowers, Bank of America, N.A., as administrative agent, revolving swing line lender, new vehicle floorplan swing line lender, used vehicle floorplan swingline lender and an L/C issuer, and the other lenders party thereto, JPMorgan Chase Bank, N.A. and Wells Fargo Bank, N.A., as co-syndication agents, Mercedes-Benz Financial Services USA LLC and Toyota Motor Credit Corporation, as co-documentation agents, and BofA Securities, Inc. as sole lead arranger and sole bookrunner (incorporated by reference to Exhibit 10.33 to the Company's Annual Report on Form 10-K for the year ended December 31, 2024 filed on February 26, 2025)\* |
| <u>[10.19](https://www.sec.gov/Archives/edgar/data/1144980/000114498025000094/ex101-boa2025amendment.htm)</u> | First Amendment to the Fourth Amended and Restated Credit Agreement, dated April 9, 2025, among Asbury Automotive Group, Inc., as a borrower and guarantor, certain of its subsidiaries, as vehicle borrowers and subsidiary guarantors, Bank of America, N.A., as administrative agent, revolving swing line lender, new vehicle floorplan swing line lender, used vehicle floorplan swing line lender and an L/C issuer, and the other lenders party thereto (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on April 9, 2025)\* |
| <u>[10.20](https://www.sec.gov/Archives/edgar/data/1144980/000114498025000149/ex101termloanagreement-asb.htm)</u> | Term Loan Agreement, dated as of July 21, 2025, by and among Asbury Automotive Group, Inc., a Delaware corporation, as the Company, each of its subsidiaries from time to time party thereto as Borrowers, each of the Lenders time to time party thereto, and Wells Fargo Bank, National Association, a national banking association, as Administrative Agent for the Lenders (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed with the SEC on October 29, 2025)\* |
| <u>[10.21](https://www.sec.gov/Archives/edgar/data/1144980/000119312515032741/d865118dex101.htm)</u> | Amended and Restated Master Loan Agreement, dated as of February 3, 2015, by and among certain subsidiaries of Asbury Automotive Group, Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on February 4, 2015)\* |
| <u>[10.22](https://www.sec.gov/Archives/edgar/data/1144980/000119312515032741/d865118dex102.htm)</u> | Second Amended and Restated Unconditional Guaranty, dated as of February 3, 2015, by and between Asbury Automotive Group, Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the SEC on February 4, 2015)\* |
| <u>[10.23](https://www.sec.gov/Archives/edgar/data/1144980/000114498019000053/ex1033.htm)</u> | Credit Agreement, dated as of November 13, 2018, among Asbury Automotive Group, Inc., certain subsidiaries of Asbury Automotive Group, Inc. and Bank of America, N.A. (incorporated by reference to Exhibit 10.33 to the Company's Annual Report on Form 10-K for the year ended December 31, 2018 filed on February 28, 2019)\* |
| <u>[10.24](https://www.sec.gov/Archives/edgar/data/1144980/000114498019000053/ex1034.htm)</u> | Master Loan Agreement, dated as of November 16, 2018, by and among certain subsidiaries of Asbury Automotive Group, Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 10.34 to the Company's Annual Report on Form 10-K for the year ended December 31, 2018 filed on February 28, 2019)\* |
| <u>[10.25](https://www.sec.gov/Archives/edgar/data/1144980/000114498019000053/ex1035.htm)</u> | Unconditional Guaranty, dated as of November 16, 2018, between Asbury Automotive Group, Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 10.35 to the Company's Annual Report on Form 10-K for the year ended December 31, 2018 filed on February 28, 2019)\* |
| <u>[10.26](https://www.sec.gov/Archives/edgar/data/1144980/000114498020000059/ex1041firstamendmentto2018.htm)</u> | First Amendment to Master Loan Agreement, dated as of December 31, 2019, by and among certain subsidiaries of Asbury Automotive Group, Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 10.41 to the Company's Annual Report on Form 10-K for the year ended December 31, 2019 filed on March 2, 2020)\* |
| <u>[10.27](https://www.sec.gov/Archives/edgar/data/1144980/000114498022000142/ex-secondamendmentto2018wf.htm)</u> | Second Amendment to Master Loan Agreement, dated as of June 1, 2022, by and among certain subsidiaries of Asbury Automotive Group, Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 filed on July 28, 2022)\* |
| <u>[10.28](https://www.sec.gov/Archives/edgar/data/1144980/000114498021000107/exhibit101creditagreement.htm)</u> | Credit Agreement, dated May 10, 2021, by and among Asbury Automotive Group, Inc., certain subsidiaries party thereto, the various financial institutions party thereto as lenders, and Bank of America, N.A., as administrative agent (incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K filed on May 20, 2021)\* |
| <u>[10.29](https://www.sec.gov/Archives/edgar/data/1144980/000114498022000142/ex-secondamendmentto2015wf.htm)</u> | Second Amendment to Amended and Restated Master Loan Agreement, dated as of June 1, 2022, by and among certain subsidiaries of Asbury Automotive Group, Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 10.5 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 filed on July 28, 2022)\* |
| <u>[10.30](https://www.sec.gov/Archives/edgar/data/1144980/000114498022000142/exthirdamendmentto2018real.htm)</u> | Third Amendment to Credit Agreement, dated as of May 25, 2022, among Asbury Automotive Group, Inc., as borrower, certain of subsidiaries of Asbury Automotive Group, Inc. and Bank of America, N.A. (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 filed on July 28, 2022)\* |
| <u>[10.31](https://www.sec.gov/Archives/edgar/data/1144980/000114498022000142/ex2013realestatecreditagre.htm)</u> | Third Amendment to Credit Agreement, dated as of May 25, 2022, among Asbury Automotive Group, Inc., as borrower, certain subsidiaries of Asbury Automotive Group, Inc. and Bank of America, N.A. (incorporated by reference to Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 filed on July 28, 2022)\* |

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**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

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| | |
|:---|:---|
| <u>[10.32](https://www.sec.gov/Archives/edgar/data/1144980/000114498022000142/exsecondamendmentto2021rea.htm)</u> | Second Amendment to Credit Agreement, dated as of May 25, 2022, by and among Asbury Automotive Group, Inc., certain subsidiaries party thereto as borrowers, the guarantors party thereto, the lenders party thereto, and Bank of America, N.A., as administrative agent (incorporated by reference to Exhibit 10.6 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 filed on July 28, 2022)\* |
| <u>[19.1](https://www.sec.gov/Archives/edgar/data/1144980/000114498025000077/ex191insidertradingpolicy.htm)</u> | Asbury Automotive Group, Inc. Insider Trading Policy (incorporated by reference to Exhibit 19.1 to the Company's Annual Report on Form 10-K for the year ended December 31, 2024 filed on February 26, 2025)\* |
| <u>[21](ex21listofsubsidiaries2025.htm)</u> | Subsidiaries of the Company |
| <u>[23.1](ex231consentofeyllp2025.htm)</u> | Consent of Ernst & Young LLP |
| <u>[31.1](ex311section302ceocertific.htm)</u> | Certificate of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
| <u>[31.2](ex312section302cfocertific.htm)</u> | Certificate of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
| <u>[32.1](ex321section906ceocertific.htm)</u> | Certificate of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
| <u>[32.2](ex322section906cfocertific.htm)</u> | Certificate of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
| <u>[97](https://www.sec.gov/Archives/edgar/data/1144980/000114498024000076/ex97recoupmentpolicy.htm)</u> | Asbury Automotive Group, Inc. Recoupment Policy (incorporated by reference to Exhibit 97 to the Company's Annual Report on Form 10-K for the year ended December 31, 2023 filed on February 29, 2024)\* |
| 101.INS | XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. |
| 101.SCH | XBRL Taxonomy Extension Schema Document |
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | The cover page from Asbury Automotive Group, Inc.'s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 has been formatted in Inline XBRL. |
| \* | Incorporated by reference. |
| \*\* | Management contract or compensatory plan or arrangement. |

---

**Item 16. Form 10-K Summary**

None.

------

**<u>[Table of](#iba5d00bfba2b47ccbd1306c9caa26e29_7)[Contents](#iba5d00bfba2b47ccbd1306c9caa26e29_7)</u>**

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| | | **Asbury Automotive Group, Inc.** | **Asbury Automotive Group, Inc.** |
| Date: | February 20, 2026 | By: | /s/ David W. Hult |
|  |  | **Name:** | **David W. Hult** |
|  |  | **Title:** | **Chief Executive Officer and President** |

---

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| **<u>Signature</u>** | **<u>Title</u>** | **<u>Date</u>** |
| /s/ David W. Hult | Chief Executive Officer, President and Director | February 20, 2026 |
| **(David W. Hult)** |  |  |
| /s/ Michael D. Welch | Senior Vice President and Chief Financial Officer | February 20, 2026 |
| **(Michael D. Welch)** |  |  |
| /s/ Nathan E. Briesemeister | Vice President, Chief Accounting Officer and | February 20, 2026 |
| **(Nathan E. Briesemeister)** | Controller |  |
| /s/ Thomas J. Reddin | Director | February 20, 2026 |
| **(Thomas J. Reddin)** | Non-Executive Chairman of the Board |  |
| /s/ Joel Alsfine | Director | February 20, 2026 |
| **(Joel Alsfine)** |  |  |
| /s/ William D. Fay | Director | February 20, 2026 |
| **(William D. Fay)** |  |  |
| /s/ Juanita T. James | Director | February 20, 2026 |
| **(Juanita T. James)** |  |  |
| /s/ Philip F. Maritz | Director | February 20, 2026 |
| **(Philip F. Maritz)** |  |  |
| /s/ Maureen F. Morrison | Director | February 20, 2026 |
| **(Maureen F. Morrison)** |  |  |
| /s/ Shamla Naidoo | Director | February 20, 2026 |
| **(Shamla Naidoo)** |  |  |
| /s/ Bridget M. Ryan-Berman | Director | February 20, 2026 |
| **(Bridget M. Ryan-Berman)** |  |  |
| /s/ Hilliard C. Terry, III | Director | February 20, 2026 |
| **(Hilliard C. Terry, III)** |  |  |

---

## Exhibit 3.2

**EXHIBIT 3.2**

**BY-LAWS<br>OF<br>ASBURY AUTOMOTIVE GROUP, INC.**

**ARTICLE I<u><br>OFFICES</u>**

SECTION 1.01. <u>DELAWARE OFFICE</u>. The principal office of Asbury Automotive Group, Inc. (the "<u>CORPORATION</u>") in the State of Delaware shall be in the City of Wilmington, County of New Castle, and the resident agent in charge thereof shall be The Corporation Trust Company.

SECTION 1.02. <u>OTHER OFFICES</u>. The Corporation may have offices at such other place or places as from time to time the board of directors of the Corporation (the "<u>BOARD OF DIRECTORS</u>," and each member thereof, a "<u>DIRECTOR</u>") may determine or the business of the Corporation may require.

SECTION 1.03. <u>BOOKS AND RECORDS</u>. The books and records of the Corporation may be kept outside the State of Delaware at such place or places as may from time to time be designated by the Board of Directors.

**ARTICLE II<u><br>MEETING OF STOCKHOLDERS</u>**

SECTION 2.01. <u>ANNUAL MEETING</u>. The annual meeting of the stockholders of the Corporation shall be held on such date and at such time as may be fixed by resolution of the Board of Directors.

SECTION 2.02. <u>SPECIAL MEETING</u>. Except as otherwise required by law and subject to the rights of the holders of any class or series of stock having a preference over the common stock, par value $0.01 per share, of the Corporation (the "<u>COMMON STOCK</u>") as to dividends or upon liquidation, dissolution or winding up, special meetings of stockholders of the Corporation for any purpose or purposes may be called only by (a) the Board of Directors pursuant to a resolution stating the purpose or purposes thereof approved by a majority of the total number of Directors which the Corporation would have if there were no vacancies or unfilled newly-created directorships (the "<u>WHOLE BOARD</u>"), or (b) by the Chairman of the Board of Directors (the "<u>CHAIRMAN OF THE BOARD</u>"), either upon his own initiative or the written request of the holders of at least 25% of the voting power of all Voting Stock then outstanding. No business other than that stated in the notice shall be transacted at any special meeting.

For a stockholder or stockholders to properly request a call of a special meeting of stockholders, the requesting stockholder(s) must (i) make the request in proper written form

------

delivered either in person or by registered mail to the Chairman of the Board or the Secretary of the Corporation, (ii) be a stockholder or stockholders at the time of giving the notice for the special meeting, (iii) remain a stockholder or stockholders on the record date for the determination of stockholders entitled to notice of and to vote at the special meeting and at the time of the special meeting, and (iv) be entitled to vote at such special meeting. To be in proper written form, the request by the requesting stockholder(s) must include the information set forth in Section 2.07(a)(ii) of this Article II and must meet the requirements set forth in Section 2(a)(ii)(A-C) of this Article II (except that for purposes of this section, any reference in Section 2.07(a)(ii) of this Article II to "annual meeting" will be deemed to be a reference to the "special meeting" contemplated by this section). Such provided information must be updated and supplemented in accordance with Section 2.07(a)(ii) of this Article II. For proposals of business to be properly requested by a stockholder or stockholders to be brought before a special meeting, such proposals of business must relate to an item of business that (i) is a proper subject for stockholder action under the Certificate of Incorporation (as defined below), these By-Laws, and applicable law, and (ii) is not expressly reserved for action by the Board of Directors under the Certificate of Incorporation, these By-Laws, or applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;A request for a special meeting shall be invalid if: (i) it is not made in compliance with this Section 2.02 of this Article II; (ii) it includes the same or a substantially similar item that was presented at any stockholder meeting held within the twelve months preceding the request receipt date; (iii) a substantially similar item is included in the Corporation's notice for a meeting called to occur within ninety calendar days of the request receipt date; or (iv) the request is received during the period commencing ninety calendar days prior to the anniversary of the most recent annual meeting and ending on the date of the next annual meeting.

SECTION 2.03. <u>PLACE OF MEETING</u>. The Board of Directors or the Chairman of the Board, as the case may be, may designate the place, if any, of meeting for any annual meeting or for any special meeting of the stockholders. If no designation is so made, the place of meeting shall be the principal office of the Corporation.

SECTION 2.04. <u>NOTICE OF MEETING</u>. Notice, stating the place, day and hour of the meeting and the purpose or purposes for which the meeting is called, shall be delivered by the Corporation not less than 10 calendar days nor more than 60 calendar days before the date of the meeting, either personally, by mail or by other lawful means, to each stockholder of record entitled to vote at such meeting. If mailed, such notice shall be deemed to be delivered when deposited in the United States mail with postage thereon prepaid, addressed to the stockholder at such person's address as it appears on the stock transfer books of the Corporation. Such further notice shall be given as may be required by law. Only such business shall be conducted at a special meeting of stockholders as shall have been brought before the meeting pursuant to the Corporation's notice of meeting. Meetings may be held without notice if all stockholders entitled to notice are present (except when stockholders entitled to notice attend the meeting for the express purpose of objecting, at the beginning of the meeting, because the meeting is not lawfully called or convened), or if notice is waived by those not present in accordance with Section 6.04. Any previously scheduled meeting of the stockholders may be postponed, and any

------

special meeting of the stockholders may be canceled, by resolution of the Board of Directors, upon public notice given prior to the date previously scheduled for such meeting of stockholders.

SECTION 2.05. <u>QUORUM AND ADJOURNMENT; VOTING</u>. Except as otherwise provided by law or by the Certificate of Incorporation of the Corporation (the "<u>CERTIFICATE OF INCORPORATION</u>"), the holders of a majority of the voting power of all outstanding shares of the Corporation entitled to vote generally in the election of Directors (the "<u>VOTING STOCK</u>"), represented in person or by proxy, shall constitute a quorum at a meeting of stockholders, except that when specified business is to be voted on by a class or series of stock voting as a class, the holders of a majority of the voting power of the outstanding shares of such class or series shall constitute a quorum of such class or series for the transaction of such business. The chairman of the meeting may adjourn the meeting from time to time, whether or not there is such a quorum. No notice of the time and place of adjourned meetings need be given except as required by law. The stockholders present at a duly called meeting at which a quorum is present may continue to transact business until adjournment, notwithstanding the withdrawal of enough stockholders to leave less than a quorum.

SECTION 2.06. <u>PROXIES</u>. At all meetings of stockholders, a stockholder may vote by proxy in accordance with the General Corporation Law of the State of Delaware (the "<u>DGCL</u>") or by such person's duly authorized attorney in fact.

SECTION 2.07. <u>NOTICE OF STOCKHOLDER BUSINESS AND NOMINATIONS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>ANNUAL MEETINGS OF STOCKHOLDERS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Proposals of business to be considered by the stockholders at an annual meeting of stockholders (other than the nomination of a person for election to the Board of Directors) may be made (A) pursuant to the Corporation's notice of meeting pursuant to Section 2.04, (B) by or at the direction of the Chairman of the Board or (C) by any stockholder of the Corporation who was a stockholder of record at the time of giving of notice provided for in this Section 2.07, who is a stockholder of record at the time of the annual meeting, who is entitled to vote at the annual meeting and who complies with all applicable requirements set forth in this Section 2.07.

Subject to the rights, if any, of the holders of any series of preferred stock of the Corporation ("<u>PREFERRED STOCK</u>") to elect additional directors as may be provided in an applicable Preferred Stock Designation (as defined in the Certificate of Incorporation), nominations of persons for election to the Board of Directors at an annual meeting of stockholders may be made only (A) by or at the direction of the Board of Directors or (B) by a stockholder who (x) has complied with all applicable requirements of this Section 2.07 in relation to such nomination, (y) was a stockholder of record of the Corporation at the time of giving the notice required by this Section 2.07 and is a stockholder of record of the Corporation at the time of the annual meeting, and (z) is entitled to vote at the annual meeting.

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For the avoidance of doubt, the foregoing will be the exclusive means for a stockholder to submit business before an annual meeting of stockholders (other than proposals properly made in accordance with Rule 14a-8 under the Exchange Act and included in the notice of meeting given by or at the direction of the Board of Directors).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;For the nomination of a person for election to the Board of Directors, or for other business to be properly brought before an annual meeting by a stockholder pursuant to subsection (a)(i) of this Section 2.07, the stockholder must have given timely notice thereof in writing to the Secretary of the Corporation and such other business must otherwise be a proper matter for stockholder action. To be timely, a stockholder's notice shall be delivered to the Secretary of the Corporation at the principal executive offices of the Corporation not later than the close of business on the ninetieth calendar day nor earlier than the close of business on the one hundred twentieth calendar day prior to the first anniversary of the preceding year's annual meeting; PROVIDED, HOWEVER, that in the event that the date of the annual meeting is more than thirty calendar days before or more than sixty calendar days after such anniversary date, notice by the stockholder to be timely must be so delivered not earlier than the close of business on the one hundred twentieth calendar day prior to such annual meeting and not later than the close of business on the later of the ninetieth calendar day prior to such annual meeting or the tenth calendar day following the calendar day on which public announcement of the date of such meeting is first made by the Corporation. In no event shall the public announcement of an adjournment or postponement of an annual meeting commence a new time period (or extend any time period) for the giving of a stockholder's notice as described above.

Such stockholder's notice shall set forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;as to each person whom the stockholder proposes to nominate for election or re-election as a Director:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;all information with respect to such proposed nominee that would be required to be set forth in a stockholder's notice pursuant to this Section 2.07 if such proposed nominee were a Proposing Person (as defined below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;all information that would be required to be disclosed pursuant to Items 403 and 404 under Regulation S-K if the stockholder giving the notice or any other Proposing Person were the "registrant" for purposes of such rule and the proposed nominee were a director or executive officer of such registrant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;a written questionnaire with respect to the identity, background and qualification of the proposed nominee and the background of any other person or entity on whose behalf the nomination is being made (which questionnaire will be provided by the Secretary upon written request);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;a written representation and agreement (in the form provided by the Secretary upon written request) that the proposed nominee (i) is not and will not become a party to (x) any agreement, arrangement or understanding with, and has not given any commitment or assurance to, any person or entity as to how the proposed nominee, if elected as a director of the Corporation, will act or vote on any issue or question (a "<u>VOTING COMMITMENT</u>") that has not been disclosed to the Corporation or (y) any Voting Commitment that could limit or interfere with the proposed nominee's ability to comply, if elected as a director of the Corporation, with the proposed nominee's fiduciary duties under applicable law, (ii) is not and will not become a party to any agreement, arrangement or understanding with any person or entity other than the Corporation with respect to any direct or indirect compensation, reimbursement or indemnification in connection with service or action as a director that has not been disclosed therein, and (iii) if elected as a director of the Corporation, the proposed nominee would be in compliance, and will comply, with all applicable publicly disclosed corporate governance, conflict of interest, confidentiality and stock ownership and trading policies and guidelines of the Corporation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;all other information relating to such person that is required to be disclosed in solicitations of proxies for the election of Directors in an election contest, or is otherwise required, in each case pursuant to Regulation 14A under the Exchange Act (including such person's written consent to being named in the proxy statement as a nominee and to serving as a Director if elected);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;as to any business other than the nomination of a person for election to the Board of Directors, that a stockholder proposes to bring before the meeting, a description in reasonable detail of the business desired to be brought before the meeting, the text of the proposal or business (including the text of any resolutions proposed for consideration and in the event that such business includes a proposal to amend either the Certificate of Incorporation or these By-Laws, the language of the proposed amendment), the reasons for conducting such business at the meeting and any material interest in such business of any Proposing Person on whose behalf the proposal is made and a description in reasonable detail of all agreements, arrangements and understandings among the Proposing Persons or between any Proposing Person and any other person or entity in connection with the proposal; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;as to the stockholder giving the notice, the beneficial owner or owners, if different, on whose behalf the nomination or proposal, as the case may be, is made and any "affiliate" or "associate" (each within the meaning of Rule 12b-2 under the Exchange Act) of any of the foregoing (each, a "<u>PROPOSING PERSON</u>"), (i) the name and address of such Proposing Person, as they appear on

------

the Corporation's books, (ii) the class and number of shares of stock of the Corporation which are owned beneficially and of record by each such Proposing Person (including any shares of any class of stock of the Corporation as to which such Proposing Person has a right to acquire beneficial ownership, whether such right is exercisable immediately or after the passage of time), (iii) a representation that the stockholder giving the notice is a holder of record of stock of the Corporation entitled to vote at such meeting and intends to appear in person or by proxy at the meeting to propose such business or nomination, (iv) a representation whether any Proposing Person intends or is part of a group which intends (x) to deliver a proxy statement and/or form of proxy to holders of at least the percentage of the Corporation's outstanding capital stock required to approve or adopt the proposal or elect the nominee, as the case may be and/or (y) otherwise to solicit proxies from stockholders in support of such proposal or nomination, (v) a description of (x) any option, warrant, convertible security, stock appreciation right or similar right (including any derivative securities, as defined under Rule 16a-1 under the Exchange Act), whether or not presently exercisable, with an exercise or conversion privilege or a settlement payment or mechanism at a price related to any class of securities of the Corporation or with a value derived in whole or in part from the value of any class of securities of the Corporation, whether or not such instrument or right is subject to settlement in whole or in part in the underlying class of securities of the Corporation or otherwise, directly or indirectly held of record or owned beneficially by such Proposing Person and (y) each other direct or indirect opportunity of such Proposing Person to profit or share in any profit derived from, or to manage the risk or benefit from, any increase or decrease in the value of the Corporation's securities, in each case regardless of whether (A) such interest conveys any voting rights in such security to such Proposing Person, (B) such interest is required to be, or is capable of being, settled through delivery of such security, or (C) such Proposing Person may have entered into other transactions that hedge the economic effect of any such interest (any such interest referred to in this clause (v), being a "<u>DERIVATIVE INTEREST</u>"); (vi) any proxy, contract, arrangement, understanding or relationship pursuant to which the Proposing Person has a right to vote any shares of the Corporation or which has the effect of increasing or decreasing the voting power of such Proposing Person; (vii) any rights directly or indirectly held of record or beneficially by the Proposing Person to dividends on the shares of the Corporation that are separated or separable from the underlying shares of the Corporation; (viii) any performance-related fees (other than an asset-based fee) to which the Proposing Person may be entitled as a result of any increase or decrease in the value of shares of the Corporation or Derivative Interests; and (ix) any other information relating to such Proposing Person that would be required to be disclosed in a proxy statement or other filing required pursuant to Section 14(a) of the Exchange Act to be made in connection with a general solicitation of proxies or consents by such Proposing Person in support of the business proposed to be brought before the meeting.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;A stockholder nominating a person for election to the Board of Directors providing notice of other business proposed to be brought before an annual meeting must further update and supplement such notice, if necessary, so that the information provided or required to be provided in such notice, is true and correct at all times up to and including the date of such meeting and any adjournment or postponement thereof. Such update and supplement shall be delivered or mailed to the Secretary at the principal executive offices of the Corporation, (A) in the case of the update and supplement required to be made as of the record date, not later than the later of five business days after the record date for the meeting and five business days after the first public disclosure of the record date for the meeting, and (B) in the case of the update and supplement required to be made as of 10 business days prior to the meeting or any adjournment or postponement thereof, not later than eight business days prior to the date for the meeting, if practicable (or, if not practicable, on the first practicable date prior to any adjournment or postponement thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>SPECIAL MEETINGS OF STOCKHOLDERS</u>. Only such business shall be conducted at a special meeting of stockholders as shall have been properly brought before the meeting pursuant to the Corporation's notice of meeting under Section 2.04. Nominations of persons for election to the Board of Directors at a special meeting of stockholders at which Directors are to be elected may only be made (i) pursuant to the Corporation's notice of meeting, (ii) by or at the direction of the Chairman of the Board or (iii) provided that the Board of Directors has determined that Directors shall be elected at such meeting, by any stockholder of the Corporation who is a stockholder of record at the time of giving of notice provided for in this By-Law, who shall be entitled to vote at the meeting and who otherwise complies with all applicable procedures and obligations set forth in this By-Law for the nomination of a person for election to the Board of Directors (notwithstanding the fact that a nomination pursuant to this subsection is not in connection with an annual meeting). In the event the Corporation calls a special meeting of stockholders for the purpose of electing one or more Directors to the Board of Directors, any stockholder entitled to vote in such election of Directors may nominate pursuant to clause (iii) of the immediately preceding sentence of this Section 2.07(b) a person or persons (as the case may be), for election to such position(s) as specified in the Corporation's notice of meeting, if the stockholder's notice required by paragraph (a)(ii) of this Section 2.07 shall be delivered to the Secretary at the principal executive offices of the Corporation not earlier than the

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close of business on the one hundred twentieth calendar day prior to such special meeting and not later than the close of business on the later of the ninetieth calendar day prior to such special meeting or the tenth calendar day following the day on which public announcement is first made of the date of the special meeting and of the nominees proposed by the Board of Directors to be elected at such meeting. In no event shall the public announcement of an adjournment or postponement of a special meeting commence a new time period (or extend any time period) for the giving of a stockholder's notice as described above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>GENERAL</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Only such persons who are nominated in accordance with the procedures set forth in this Section 2.07 shall be eligible to serve as Directors and only such business shall be conducted at a meeting of stockholders as shall have been brought before the meeting in accordance with the procedures set forth in this By-Law. Except as otherwise provided by law, the Certificate of Incorporation or these By-Laws, the chairman of the meeting shall have the power and duty to determine whether a nomination or any business proposed to be brought before the meeting was made or proposed, as the case may be, in accordance with the procedures set forth in this Section 2.07 (including whether any Proposing Person on whose behalf a nomination or proposal is made solicited (or is part of a group which solicited) or did not so solicit, as the case may be, proxies in support of such stockholder's nominee or proposal in compliance with such stockholder's representation as required by this Section 2.07) and, if any proposed nomination or business is not in compliance with this By-Law, to declare that such defective proposal or nomination shall be disregarded. Notwithstanding the foregoing provisions of this Section 2.07, if the stockholder (or a qualified representative of the stockholder) does not appear at the annual or special meeting of stockholders of the Corporation to present a nomination or business, such nomination shall be disregarded and such proposed business shall not be transacted, notwithstanding that proxies in respect of such vote may have been received by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this By-Law, "public announcement" shall mean disclosure in a press release reported by the Dow Jones News Service, Associated Press or comparable national news service or in a document publicly filed by the Corporation with the Securities and Exchange Commission pursuant to Section 13, 14 or 15(d) of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing provisions of this Section 2.07, a stockholder shall also comply with all applicable requirements of the Exchange Act and the rules and regulations thereunder with respect to the matters set forth in this Section 2.07. Nothing in this Section 2.07 shall be deemed to affect any rights (a) of stockholders to request inclusion of proposals in the Corporation's proxy statement pursuant to Rule 14a-8 under the Exchange Act or (b) of the holders of any series of Preferred Stock to elect Directors under an applicable Preferred Stock Designation.

SECTION 2.08. <u>PROCEDURE FOR ELECTION OF DIRECTORS; REQUIRED VOTE</u>. Election of Directors at all meetings of the stockholders at which Directors are to be

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elected shall be by ballot, and, subject to the rights of the holders of any series of Preferred Stock to elect Directors under an applicable Preferred Stock Designation, a plurality of the votes cast thereat shall elect Directors. Except as otherwise provided by law, the Certificate of Incorporation, a Preferred Stock Designation, applicable stock exchange rules or other rules and regulations applicable to the Corporation or these By-Laws, in all matters other than the election of Directors, the affirmative vote of a majority of the voting power of the shares present in person or represented by proxy at the meeting and entitled to vote on the matter shall be the act of the stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors by resolution shall appoint, or shall authorize an officer of the Corporation to appoint, one or more inspectors, which inspector or inspectors may include individuals who serve the Corporation in other capacities, including, without limitation, as officers, employees, agents or representatives, to act at the meetings of stockholders and make a written report thereof. One or more persons may be designated as alternate inspector(s) to replace any inspector who fails to act. If no inspector or alternate has been appointed to act or is able to act at a meeting of stockholders, the chairman of the meeting shall appoint one or more inspectors to act at the meeting. Each inspector, before discharging such person's duties, shall take and sign an oath faithfully to execute the duties of inspector with strict impartiality and according to the best of such person's ability. The inspectors shall have the duties prescribed by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The date and time of the opening and the closing of the polls for each matter upon which the stockholders will vote at a meeting shall be announced at the meeting by the person presiding over the meeting. The Board of Directors may adopt by resolution such rules and regulations for the conduct of the meeting of stockholders as it shall deem appropriate. Except to the extent inconsistent with such rules and regulations as adopted by the Board of Directors, the person presiding over any meeting of stockholders shall have the right and authority to convene and to adjourn the meeting, to prescribe such rules, regulations and procedures and to do all such acts as, in the judgment of such presiding officer, are appropriate for the proper conduct of the meeting. Such rules, regulations or procedures, whether adopted by the Board of Directors or prescribed by the presiding officer of the meeting, may include, without limitation, the following: (i) an agenda or order of business for the meeting; (ii) rules and procedures for maintaining order at the meeting and the safety of those present; (iii) limitations on attendance at or participation in the meeting to stockholders of record of the Corporation, their duly authorized and constituted proxies or such other persons as the chairman of the meeting shall determine; (iv) restrictions on entry to the meeting after the time fixed for the commencement thereof; and (v) limitations on the time allotted to questions or comments by participants. The presiding officer at any meeting of stockholders, in addition to making any other determinations that may be appropriate to the conduct of the meeting, shall, if the facts warrant, determine and declare to the meeting that a matter or business was not properly brought before the meeting and if such presiding officer should so determine, such person shall so declare to the meeting that any such matter or business not properly brought before the meeting shall not be transacted or considered. Unless and to the extent determined by the Board of Directors or the person presiding over the meeting, meetings of stockholders shall not be required to be held in accordance with the rules of parliamentary procedure.

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**ARTICLE III<u><br>BOARD OF DIRECTORS</u>**

SECTION 3.01. <u>GENERAL POWERS</u>. The business and affairs of the Corporation shall be managed by or under the direction of the Board of Directors. In addition to the powers and authorities by these By-Laws expressly conferred upon them, the Board of Directors may exercise all such powers of the Corporation and do all such lawful acts and things as are not by statute or by the Certificate of Incorporation or by these By-Laws required to be exercised or done by the stockholders.

SECTION 3.02. <u>REGULAR MEETINGS</u>. A regular meeting of the Board of Directors shall be held without other notice than this By-Law in conjunction with the annual meeting of stockholders. The Board of Directors may, by resolution, provide the time and place for the holding of additional regular meetings without other notice than such resolution.

SECTION 3.03. <u>SPECIAL MEETINGS</u>. Special meetings of the Board of Directors shall be called it the request of the Chairman of the Board, the President and Chief Executive Officer or a majority of the Board of Directors then in office. The person or persons authorized to call special meetings of the Board of Directors may fix the place and time of the meetings.

SECTION 3.04. <u>NOTICE</u>. Notice of any special meeting of Directors shall be given to each Director at such person's business or residence in writing by hand delivery, first-class or overnight mail or courier service, telegram or facsimile transmission, orally by telephone or any other lawful means. If mailed by first-class mail, such notice shall be deemed adequately delivered when deposited in the United States mail so addressed, with postage thereon prepaid, at least 5 calendar days before such meeting. If by telegram, overnight mail or courier service, such notice shall be deemed adequately delivered when the telegram is delivered to the telegraph company or the notice is delivered to the overnight mail or courier service company at least 24 hours before such meeting. If by facsimile transmission, such notice shall be deemed adequately delivered when the notice is transmitted at least 12 hours before such meeting. If by telephone, by hand delivery or by other lawful means, the notice shall be given at least 12 hours prior to the time set for the meeting. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the Board of Directors need be specified in the notice of such meeting, except for amendments to these By-Laws, as provided under Section 8.01. A meeting may be held at any time without notice if all the Directors are present (except when Directors attend for the express purpose of objecting, at the beginning of the meeting, because it is not lawfully called or conveyed) or if those not present waive notice of the meeting either before or after such meeting.

SECTION 3.05. <u>ACTION BY CONSENT OF BOARD OF DIRECTORS</u>. Any action required or permitted to be taken at any meeting of the Board of Directors or of any committee thereof may be taken without a meeting if all members of the Board of Directors or committee, as the case may be, consent thereto in accordance with applicable law.

SECTION 3.06. <u>CONFERENCE TELEPHONE MEETINGS</u>. Members of the Board of Directors or any committee thereof may participate in a meeting of the Board of Directors or

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such committee by means of conference telephone or other communications equipment by means of which all persons participating in the meeting can hear each other, and such participation in a meeting shall constitute presence in person at such meeting.

SECTION 3.07. <u>QUORUM</u>. Subject to Article VI of the Certificate of Incorporation, a whole number of Directors equal to at least a majority of the Whole Board shall constitute a quorum for the transaction of business, but if at any meeting of the Board of Directors there shall be less than a quorum present, a majority of the Directors present may adjourn the meeting from time to time without further notice. The act of the majority of the Directors present at a meeting at which a quorum is present shall be the act of the Board of Directors.

SECTION 3.08. <u>COMMITTEES OF THE BOARD OF DIRECTORS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors may from time to time designate committees, which shall consist of one or more Directors. The Board of Directors may designate one or more Directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. Any such committee may, to the extent permitted by law, exercise such powers and shall have such responsibilities as shall be specified in the designating resolution. In the absence or disqualification of any member of such committee or committees, the member or members thereof present at any meeting and not disqualified from voting, whether or not constituting a quorum, may unanimously appoint another member of the Board of Directors to act at the meeting in the place of any such absent or disqualified member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;A majority of any committee may determine its action and fix the time and place of its meetings, unless the Board of Directors shall otherwise provide. Notice of such meetings shall be given to each member of the committee in the manner provided for in Section 3.04. The Board of Directors shall have power at any time to fill vacancies in, to change the membership of, or to dissolve any such committee. Nothing herein shall be deemed to prevent the Board of Directors from appointing one or more committees consisting in whole or in part of persons who are not Directors; provided, however, that no such committee shall have or may exercise any authority of the Board of Directors.

SECTION 3.09. <u>RECORDS</u>. The Board of Directors shall cause to be kept a record containing the minutes of the proceedings of the meetings of the Board of Directors and of the stockholders, appropriate stock books and registers and such books of records and accounts as may be necessary for the proper conduct of the business of the Corporation.

SECTION 3.10. <u>CHAIRMAN OF THE BOARD</u>. A Chairman of the Board shall be chosen from among the Directors. The Chairman of the Board shall preside at all meetings of the stockholders and of the Board of Directors. The Chairman of the Board shall have such other powers and duties as may from time to time be conferred by the Board of Directors. The Board of Directors also may elect a Vice-Chairman to act in the place of the Chairman of the Board upon his or her absence or inability to act.

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**ARTICLE IV<u><br>OFFICERS</u>**

SECTION 4.01. <u>ELECTED OFFICERS</u>. The elected officers of the Corporation shall be a President and Chief Executive Officer, a Secretary, a Treasurer, and such other officers (including, without limitation, Senior Vice Presidents and Executive Vice Presidents and Vice Presidents) as the Board of Directors from time to time may deem proper. All officers elected by the Board of Directors shall each have such powers and duties as generally pertain to their respective offices, subject to the specific provisions of this Article IV. Such officers shall also have such powers and duties as from time to time may be conferred by the Board of Directors or by any committee thereof. The Board of Directors or any committee thereof may from time to time elect, or the Chairman of the Board or President and Chief Executive Officer may appoint, such other officers (including one or more Vice Presidents, Controllers, Assistant Secretaries and Assistant Treasurers), as may be necessary or desirable for the conduct of the business of the Corporation. Such other officers and agents shall have such duties and shall hold their offices for such terms as shall be provided in these By-Laws or as may be prescribed by the Board of Directors or such committee or by the Chairman of the Board or President and Chief Executive Officer, as the case may be.

SECTION 4.02. <u>ELECTION AND TERM OF OFFICE</u>. The elected officers of the Corporation shall be elected annually by the Board of Directors at the regular meeting of the Board of Directors held in conjunction with the annual meeting of the stockholders. If the election of officers shall not be held at such meeting, such election shall be held as soon thereafter as convenient. Each officer shall hold office until such person's successor shall have been duly elected and shall have qualified or until such person's death or until he shall resign or be removed pursuant to Section 4.08.

SECTION 4.03. <u>PRESIDENT; CHIEF EXECUTIVE OFFICER</u>. The President shall be the Chief Executive Officer of the Corporation, shall act in a general executive capacity and shall be responsible for the administration and operation of the Corporation's business and general supervision of its policies and affairs. The President and Chief Executive Officer, if he or she is also a Director, shall, in the absence of or because of the inability to act of the Chairman or Vice Chairman of the Board, perform all duties of the Chairman of the Board and preside at all meetings of stockholders and of the Board of Directors.

SECTION 4.04. <u>VICE PRESIDENTS</u>. Each Senior Vice President and Executive Vice President and any Vice President shall have such powers and shall perform such duties as shall be assigned to such person by the Board of Directors or by the President and Chief Executive Officer.

SECTION 4.05. <u>TREASURER</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Treasurer shall exercise general supervision over the receipt, custody and disbursement of corporate funds. The Treasurer shall cause the funds of the Corporation to be deposited in such banks as may be authorized by the Board of Directors, or in such banks as may be designated as depositories in the manner provided by resolution of the Board of Directors

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The Treasurer shall have such further powers and duties and shall be subject to such directions as may be granted or imposed from time to time by the Board of Directors, the Chairman of the Board or the President and Chief Executive Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors, the Chairman of the Board or the President and Chief Executive Officer may designate one or more Assistant Treasurers who shall have such of the authority and perform such of the duties of the Treasurer as may be assigned to them by the Board of Directors, the Chairman of the Board or the President and Chief Executive Officer. During the Treasurer's absence or inability, the Treasurer's authority and duties shall be possessed by such Assistant Treasurer' s) as the Board of Directors, the Chairman of the Board or the President and Chief Executive Officer may designate.

SECTION 4.06. <u>SECRETARY</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Secretary shall keep or cause to be kept in one or more books provided for that purpose, the minutes of all meetings of the Board of Directors, the committees of the Board of Directors and the stockholders; shall see that all notices are duly given in accordance with the provisions of these By-Laws and as required by law; shall be custodian of the records and the seal of the Corporation and affix and attest the seal to all stock certificates of the Corporation (unless the seal of the Corporation on such certificates shall be a facsimile, as hereinafter provided) and affix and attest the seal to all other documents to be executed on behalf of the Corporation under its seal and shall see that the books, reports, statements, certificates and other documents and records required by law to be kept and filed are properly kept and filed; and in general, shall perform all the duties incident to the office of Secretary and such other duties as from time to time may be assigned to the Secretary by the Board of Directors, the Chairman of the Board or the President and Chief Executive Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors, the Chairman of the Board or the President and Chief Executive Officer may designate one or more Assistant Secretaries who shall have such of the authority and perform such of the duties of the Secretary as may be provided in these By-Laws or assigned to them by the Board of Directors, the Chairman of the Board or the President and Chief Executive Officer. During the Secretary's absence or inability, the Secretary's authority and duties shall be possessed by such Assistant Secretary or Assistant Secretaries as the Board of Directors, the Chairman of the Board or the President and Chief Executive Officer may designate.

SECTION 4.07. <u>REMOVAL</u>. Any officer or agent of the Corporation may be removed by the affirmative vote of a majority of the Board of Directors whenever, in their judgment, the best interests of the Corporation would be served thereby. Any officer or agent appointed by the Chairman of the Board or the President and Chief Executive Officer may be removed by him or her whenever, in such person's judgment, the best interests of the Corporation would be served thereby. No elected officer shall have any contractual rights against the Corporation for compensation by virtue of such election beyond the date of the election of such person's successor, such person's death, such person's resignation or such person's removal, whichever event shall first occur, except as otherwise provided in an employment contract or under an employee benefit plan.

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SECTION 4.08. <u>VACANCIES</u>. A newly created elected office and a vacancy in any elected office because of death, resignation, or removal may be filled by the Board of Directors for the unexpired portion of the term at any meeting of the Board of Directors. Any vacancy in an office appointed by the Chairman of the Board or the President and Chief Executive Officer because of death, resignation, or removal may be filled by the Chairman of the Board or the President and Chief Executive Officer.

**ARTICLE V<u><br>STOCK CERTIFICATES AND TRANSFERS</u>**

SECTION 5.01. <u>STOCK CERTIFICATES AND TRANSFERS</u>. The interest of each stockholder of the Corporation shall be evidenced by certificates for shares of stock in such form as the Corporation may from time to time prescribe. The shares of the stock of the Corporation shall be transferred on the books of the Corporation by the holder thereof in person or by such person's attorney, upon surrender for cancellation of certificates for at least the same number of shares, with an assignment and power of transfer endorsed thereon or attached thereto, duly executed, with such proof of the authenticity of the signature as the Corporation or its agents may reasonably require. The certificates of stock shall be signed, countersigned and registered in such manner as the Board of Directors may by resolution prescribe or as may otherwise be permitted by applicable law, which resolution may permit all or any of the signatures on such certificates to be in facsimile. In case any officer, transfer agent or registrar who has signed or whose facsimile signature has been placed upon a certificate has ceased to be such officer, transfer agent or registrar before such certificate is issued, it may be issued by the Corporation with the same effect as if he were such officer, transfer agent or registrar at the date of issue. Notwithstanding the foregoing provisions regarding share certificates, the Corporation may provide that, subject to the rights of stockholders under applicable law, some or all of any or all classes or series of the Corporation's common or any preferred shares may be uncertificated shares.

SECTION 5.02. <u>LOST, STOLEN OR DESTROYED CERTIFICATES</u>. No certificate for shares of stock in the Corporation shall be issued in place of any certificate alleged to have been lost, destroyed or stolen, except on production of such evidence of such loss, destruction or theft and on delivery to the Corporation of a bond or indemnity in such amount, upon such terms and secured by such surety, as the Board of Directors or any financial officer may in its or such person's discretion require.

**ARTICLE VI<u><br>MISCELLANEOUS PROVISIONS</u>**

SECTION 6.01. <u>FISCAL YEAR</u>. The fiscal year of the Corporation shall begin on the first day of January and end on the last day of December of each year.

SECTION 6.02. <u>DIVIDENDS</u>. The Board of Directors may from time to time declare, and the Corporation may pay, dividends on its outstanding shares in the manner and upon the terms and conditions provided by law and the Certificate of Incorporation.

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SECTION 6.03. <u>SEAL</u>. The corporate seal shall have inscribed thereon the words "Corporate Seal," the year of incorporation and the word "Delaware."

SECTION 6.04. <u>WAIVER OF NOTICE</u>. Whenever any notice is required to be given to any stockholder or Director under the provisions of the DGCL or these By-Laws, a waiver thereof given in accordance with applicable law shall be deemed equivalent to the giving of such notice. Neither the business to be transacted at, nor the purpose of, any annual or special meeting of the stockholders or the Board of Directors or committee thereof need be specified in any waiver of notice of such meeting.

SECTION 6.05. <u>AUDITS</u>. The accounts, books and records of the Corporation shall be audited upon the conclusion of each fiscal year by an independent certified public accountant selected by the Board of Directors, and it shall be the duty of the Board of Directors to cause such audit to be done annually.

SECTION 6.06. <u>RESIGNATIONS</u>. Any Director or any officer, whether elected or appointed, may resign at any time by giving written notice of such resignation to the Chairman of the Board, the President and Chief Executive Officer, or the Secretary, and such resignation shall be deemed to be effective as of the close of business on the date said notice is received by the Chairman of the Board, the President and Chief Executive Officer, or the Secretary, or at such later time as is specified therein. No formal action shall be required of the Board of Directors or the stockholders to make any such resignation effective.

**ARTICLE VII<u><br>CONTRACTS, PROXIES, EXCLUSIVE FORUM, ETC.</u>**

SECTION 7.01. <u>CONTRACTS</u>. Except as otherwise required by law, the Certificate of Incorporation, a Preferred Stock Designation, or these By-Laws, any contracts or other instruments may be executed and delivered in the name and on the behalf of the Corporation by such officer or officers of the Corporation as the Board of Directors may from time to time direct. Such authority may be general or confined to specific instances as the Board of Directors may determine. The Chairman of the Board, the President and Chief Executive Officer or any Senior Vice President, Executive Vice President or Vice President may execute bonds, contracts, deeds, leases and other instruments to be made or executed or for or on behalf of the Corporation. Subject to any restrictions imposed by the Board of Directors or the Chairman of the Board, the President and Chief Executive Officer or any Senior Vice President, Executive Vice President or Vice President of the Corporation may delegate contractual powers to others under such person's jurisdiction, it being understood, however, that any such delegation of power shall not relieve such officer of responsibility with respect to the exercise of such delegated power.

SECTION 7.02. <u>PROXIES</u>. Unless otherwise provided by resolution adopted by the Board of Directors, the Chairman of the Board, the President and Chief Executive Officer or any Senior Vice President, Executive Vice President or Vice President may from time to time appoint an attorney or attorneys or agent or agents of the Corporation, in the name and on behalf of the Corporation, to cast the votes which the Corporation may be entitled to cast as the holders of

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stock or other securities in any other entity, any of whose stock or other securities may be held by the Corporation, at meetings of the holders of the stock or other securities of such other entity, or to consent in accordance with applicable law, in the name of the Corporation as such holder, to any action by such other entity, and may instruct the person or persons so appointed as to the manner of casting such votes or giving such consent, and may execute or cause to be executed in the name and on behalf of the Corporation and under its corporate seal or otherwise, all such proxies, consents or other instruments as such person may deem necessary or proper in the premises.

SECTION 7.03. <u>FORUM FOR ADJUDICATION OF DISPUTES</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Unless the Corporation consents in writing to the selection of an alternative forum, the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of the Corporation, (ii) any action asserting a claim of breach of a fiduciary duty owed by any Director, officer or other employee of the Corporation to the Corporation or the Corporation's stockholders, (iii) any action asserting a claim arising pursuant to any provision of the DGCL, or (iv) any action asserting a claim governed by the internal affairs doctrine, shall be a state or federal court located within the state of Delaware, in all cases subject to the court's having personal jurisdiction over the indispensable parties named as defendants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If any action the subject matter of which is within the scope of paragraph (a) above is filed in a court other than a court located within the state of Delaware (a "Foreign Action") in the name of any stockholder, such stockholder shall be deemed to have consented to (i) the personal jurisdiction of the state and federal courts located within the state of Delaware in connection with any action brought in any such court to enforce paragraph (a) above (an "<u>FSC ENFORCEMENT ACTION</u>") and (ii) having service of process made upon such stockholder in any FSC Enforcement Action by service upon such stockholder's counsel in the Foreign Action as agent for such stockholder."

**ARTICLE VIII<u><br>AMENDMENTS</u>**

SECTION 8.01. <u>AMENDMENTS</u>. The By-Laws may be altered or repealed and new By-Laws may be adopted (a) at any annual or special meeting of stockholders by the affirmative vote of the holders of a majority of the voting power of the Voting Stock then outstanding, voting as a single class, provided, however, that any proposed alteration or repeal of, or the adoption of any By-Law inconsistent with, Section 2.02, Section 2.07 or this Section 8.01, by the stockholders shall require the affirmative vote of the holders of at least 80% of the voting power of all Voting Stock then outstanding, voting together as a single class, and provided, further, however, that, in the case of any such stockholder action at a special meeting of stockholders, notice of the proposed alteration, repeal or adoption of the new By-Law or By-Laws must be contained in the notice of such special meeting, or (b) by the affirmative vote of a majority of the Whole Board.

## Ex-21

**Exhibit 21**

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| | | |
|:---|:---|:---|
| **Entity Name** | **Domestic State** | **Foreign Qualification** |
| AF Motors, L.L.C. | DE | FL |
| ANL, L.P. | DE | FL |
| Asbury ANT, LLC | DE | MD |
| Asbury Arlington MB, LLC | DE | TX |
| Asbury ART, LLC | DE | VA |
| Asbury Atlanta AC L.L.C. | DE | GA |
| Asbury Atlanta AU L.L.C. | DE | GA |
| Asbury Atlanta BM L.L.C. | DE | GA |
| Asbury Atlanta CHEV, LLC | DE | GA |
| Asbury Atlanta Hon L.L.C. | DE | GA |
| Asbury Atlanta Hund L.L.C. | DE | GA |
| Asbury Atlanta Inf L.L.C. | DE | GA |
| Asbury Atlanta Infiniti L.L.C. | DE | GA |
| Asbury Atlanta Jaguar L.L.C. | DE | GA |
| Asbury Atlanta K L.L.C. | DE | GA |
| Asbury Atlanta Lex L.L.C. | DE | GA |
| Asbury Atlanta Toy 2 L.L.C. | DE | GA |
| Asbury Atlanta Toy L.L.C. | DE | GA |
| Asbury Atlanta VB L.L.C. | DE | GA |
| Asbury Auburn G, LLC | DE | MA |
| Asbury Auburn H, LLC | DE | MA |
| Asbury Auburn T, LLC | DE | MA |
| Asbury Aurora Toy, LLC | DE | CO |
| Asbury Automotive Atlanta II L.L.C. | DE | GA |
| Asbury Automotive Atlanta L.L.C. | DE | GA |
| Asbury Automotive Brandon, L.P. | DE | FL |
| Asbury Automotive Deland, L.L.C. | DE | FL |
| Asbury Automotive Group L.L.C. | DE | CT, FL, WI |
| Asbury Automotive Group, Inc. | DE | AR, AZ, CA, FL, GA, ID, NC, NM, PA, TX, UT, VA |
| Asbury Automotive Jacksonville GP L.L.C. | DE | FL |
| Asbury Automotive Jacksonville, L.P. | DE | FL |
| Asbury Automotive Management L.L.C. | DE | GA |
| Asbury Automotive North Carolina Dealership Holdings L.L.C. | DE | NC |
| Asbury Automotive North Carolina L.L.C. | DE | NC, SC, VA |
| Asbury Automotive North Carolina Management L.L.C. | DE | NC |
| Asbury Automotive North Carolina Real Estate Holdings L.L.C. | DE | NC, SC, VA |
| Asbury Automotive St. Louis II L.L.C. | DE | MO |
| Asbury Automotive St. Louis, L.L.C. | DE | MO |
| Asbury Automotive Tampa GP L.L.C. | DE | FL |
| Asbury Automotive Tampa, L.P. | DE | FL |
| Asbury Automotive Texas L.L.C. | DE | TX |
| Asbury Automotive Texas Real Estate Holdings L.L.C. | DE | TX |
| Asbury Automotive West, LLC | DE | CO |

---

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| | | |
|:---|:---|:---|
| Asbury Baltimore F, LLC | DE | MD |
| Asbury BMB, LLC | DE | MA |
| Asbury Boston Exotics, LLC | DE | MA |
| Asbury Boston HON, LLC | DE | MA |
| Asbury Boston JLR, LLC | DE | MA |
| Asbury Boston POR, LLC | DE | MA |
| Asbury Boston T, LLC | DE | MA |
| Asbury Boston V, LLC | DE | MA |
| Asbury Braintree F, LLC | DE | MA |
| Asbury Brookline AU, LLC | DE | MA |
| Asbury Burlington AU, LLC | DE | MA |
| Asbury Burlington HON, LLC | DE | MA |
| Asbury Burlington K, LLC | DE | MA |
| Asbury Burlington POR, LLC | DE | MA |
| Asbury Catonsville M, LLC | DE | MD |
| Asbury Clarksville CBG, LLC | DE | MD |
| Asbury CO CDJR, LLC | DE | CO |
| Asbury CO GEN, LLC | DE | CO |
| Asbury CO HG, LLC | DE | CO |
| Asbury CO LEX, LLC | DE | CO |
| Asbury CO SUB, LLC | DE | CO |
| Asbury Dallas MB, LLC | DE | TX |
| Asbury Dallas POR, LLC | DE | TX |
| Asbury Dallas VOL, LLC | DE | TX |
| Asbury Danvers CDJRF, LLC | DE | MA |
| Asbury Danvers Chevrolet, LLC | DE | MA |
| Asbury Deland Hund, LLC | DE | FL |
| Asbury Deland Imports 2, L.L.C. | DE | FL |
| Asbury DFW JLR, LLC | DE | TX |
| Asbury Easton T, LLC | DE | MD |
| Asbury FCF, LLC | DE | VA |
| Asbury Fort Worth MB, LLC | DE | TX |
| Asbury Ft. Worth Ford, LLC | DE | TX |
| Asbury Georgia TOY, LLC | DE | GA |
| Asbury Greeley SUB, LLC | DE | CO |
| Asbury IN CBG, LLC | DE | IN |
| Asbury IN CDJ, LLC | DE | IN |
| Asbury IN CHEV, LLC | DE | IN |
| Asbury IN FORD, LLC | DE | IN |
| Asbury IN HON, LLC | DE | IN |
| Asbury IN TOY, LLC | DE | IN |
| Asbury Indy Chev, LLC | DE | IN |
| Asbury Jax AC, LLC | DE | FL |
| Asbury Jax Ford, LLC | DE | FL |
| Asbury Jax Holdings, L.P. | DE | FL |
| Asbury Jax Hon L.L.C. | DE | FL |
| Asbury Jax Management L.L.C. | DE | FL |

---

------

---

| | | |
|:---|:---|:---|
| Asbury Lakewood Chev, LLC | DE | CO |
| Asbury Lakewood Toy, LLC | DE | CO |
| Asbury Littleton JLR, LLC | DE | CO |
| Asbury Littleton Por, LLC | DE | CO |
| Asbury Longmont Hund, LLC | DE | CO |
| Asbury Lynnfield Cadillac, LLC | DE | MA |
| Asbury Lynnfield M, LLC | DE | MA |
| Asbury Management Services, LLC | DE | AL, AZ, CA, CO, CT, DC, FL, GA, ID, IL, IN, MA, MD, ME, MN, MO, NC, NE, NH, NM, NV, NY, OK, OR, PA, RI, SC, TN, TX, UT, VA, WV, WY |
| Asbury MBM, LLC | DE | VA |
| Asbury Mid-Atlantic, LLC | DE | MD, VA |
| Asbury Millbury CDJRF, LLC | DE | MA |
| Asbury Millbury Mar, LLC | DE | MA |
| Asbury Noblesville CDJR, LLC | DE | IN |
| Asbury North Atlantic, LLC | DE | |
| Asbury Norwood LNC, LLC | DE | MA |
| Asbury Norwood V, LLC | DE | MA |
| Asbury OMK, LLC | DE | MD |
| Asbury Plano LEX, LLC | DE | TX |
| Asbury Risk Services, LLC | DE | |
| Asbury SC JPV L.L.C. | DE | SC |
| Asbury SC Toy L.L.C. | DE | SC |
| Asbury Seekonk HON, LLC | DE | MA |
| Asbury Sharon LEX, LLC | DE | MA |
| Asbury South Carolina Real Estate Holdings L.L.C. | DE | SC |
| Asbury St. Louis Lex L.L.C. | DE | MO |
| Asbury St. Louis LR L.L.C. | DE | MO |
| Asbury St. Louis M L.L.C. | DE | MO |
| Asbury Sterling F, LLC | DE | VA |
| Asbury Sudbury B, LLC | DE | MA |
| Asbury Sudbury LR, LLC | DE | MA |
| Asbury Sudbury M, LLC | DE | MA |
| Asbury Tampa Management L.L.C. | DE | FL |
| Asbury TX Auction, LLC | DE | TX |
| Asbury Tysons CBG, LLC | DE | VA |
| Asbury Tysons CDJR, LLC | DE | VA |
| Asbury Tysons T, LLC | DE | VA |
| Asbury Warwick Cadillac, LLC | DE | RI |
| Asbury Warwick MAR, LLC | DE | RI |
| Asbury Westborough F, LLC | DE | MA |
| Asbury Westborough IN, LLC | DE | MA |
| Asbury Westminster T, LLC | DE | MD |
| Asbury Wilmington L, LLC | DE | |
| Asbury WMC, LLC | DE | MD |

---

------

---

| | | |
|:---|:---|:---|
| Asbury WMV, LLC | DE | MD |
| Asbury Woodbridge BG, LLC | DE | VA |
| Asbury Woodbridge F, LLC | DE | VA |
| Asbury Woodbridge H, LLC | DE | VA |
| Asbury Woodbridge K, LLC | DE | VA |
| Asbury-Deland Imports, L.L.C. | DE | FL |
| Atlanta Real Estate Holdings L.L.C. | DE | GA, MA |
| Avenues Motors, Ltd. | FL | |
| BFP Motors L.L.C. | DE | FL |
| C & O Properties, Ltd. | FL | |
| CFP Motors L.L.C. | DE | FL |
| CH Motors L.L.C. | DE | FL |
| CHO Partnership, Ltd. | FL | |
| CN Motors L.L.C. | DE | FL |
| Coggin Automotive Corp. | FL | |
| Coggin Cars L.L.C. | DE | FL |
| Coggin Chevrolet L.L.C. | DE | FL |
| Coggin Management, L.P. | DE | FL |
| Crown Acura/Nissan, LLC | NC | |
| Crown CHH L.L.C. | DE | NC |
| Crown FDO L.L.C. | DE | NC |
| Crown FFO L.L.C. | DE | NC |
| Crown GAC L.L.C. | DE | NC |
| Crown GBM L.L.C. | DE | NC |
| Crown GDO L.L.C. | DE | NC |
| Crown GHO L.L.C. | DE | NC |
| Crown GNI L.L.C. | DE | NC |
| Crown GVO L.L.C. | DE | NC |
| Crown Honda, LLC | NC | |
| Crown RIA L.L.C. | DE | VA |
| Crown RIB L.L.C. | DE | VA |
| Crown SNI L.L.C. | DE | SC |
| CSA Imports L.L.C. | DE | FL |
| HFP Motors L.L.C. | DE | FL |
| KP Motors L.L.C. | DE | FL |
| Landcar Administration Company | UT | AZ, NM |
| Landcar Agency, Inc. | UT | AL, AZ, CA, CO, CT, DC, FL, GA, HI, ID, IN, LA, MA, MD, ME, MO, MT, NC, NH, NJ, NM, NV, OH, OK, OR, PA, RI, SC, TN, TX, VA, WA, WI, WY |
| Landcar Casualty Company | UT | AL, AZ, CA, CO, CT, DC, FL, GA, HI, IN, MA, MD, ME, MO, MT, NC, NH, NV, OH, OK, OR, PA, RI, SC, TN, TX, VA, WI, WY |
| Landcar GC, LLC | UT | |

---

------

---

| | | |
|:---|:---|:---|
| Landcar Management, Ltd. | UT | |
| Larry H. Miller Company - Bountiful, L.L.C. | UT | |
| LHM ACD, LLC | UT | NM |
| LHM ACJ, LLC | UT | AZ |
| LHM ADR, LLC | UT | AZ |
| LHM ALH, LLC | UT | NM |
| LHM AMT, LLC | UT | NM |
| LHM ANI, LLC | UT | CO |
| LHM Auto GP Holdings, LLC | DE | |
| LHM Auto Intermediate Holdings I, LLC | DE | |
| LHM Auto Intermediate Holdings II, LLC | DE | |
| LHM AVW, LLC | UT | AZ |
| LHM BCD, LLC | ID | |
| LHM BSU, LLC | ID | |
| LHM BUC, LLC | UT | ID |
| LHM CHV, LLC | UT | |
| LHM Collision CSCO, LLC | UT | CO |
| LHM Collision OCC, LLC | UT | |
| LHM CTO, LLC | UT | CA |
| LHM DCJ, LLC | UT | CO |
| LHM DDR, LLC | UT | CO |
| LHM DNI, LLC | UT | CO |
| LHM FLT, LLC | UT | TX |
| LHM HOB, LLC | ID | |
| LHM HON, LLC | UT | |
| LHM HYN, LLC | UT | AZ |
| LHM LCJ, LLC | UT | |
| LHM LEX, LLC | UT | |
| LHM LFO, LLC | UT | CO |
| LHM LMD, LLC | UT | AZ |
| LHM MBL, LLC | UT | |
| LHM MFD, LLC | UT | AZ |
| LHM MNI, LLC | UT | AZ |
| LHM MUR, LLC | UT | |
| LHM NHR, LLC | UT | CO |
| LHM PCD, LLC | UT | |
| LHM PCH, LLC | UT | |
| LHM Peoria GEN, LLC | DE | AZ |
| LHM PFL, LLC | UT | |
| LHM PNX, LLC | UT | AZ |
| LHM QCH, LLC | UT | NM |
| LHM QCJ, LLC | UT | NM |
| LHM RCD, LLC | UT | |
| LHM SAX, LLC | DE | |
| LHM SCD, LLC | UT | AZ |
| LHM SFL, LLC | UT | |
| LHM SFO, LLC | UT | |

---

------

---

| | | |
|:---|:---|:---|
| LHM SHO, LLC | UT | WA |
| LHM SWH, LLC | UT | NM |
| LHM TCD, LLC | UT | CO |
| LHM TCJ, LLC | UT | AZ |
| LHM TDR, LLC | UT | AZ |
| LHM TSD, LLC | UT | CA |
| LHM TVW, LLC | UT | AZ |
| LHM UCN, LLC | UT | |
| LHM UCO, LLC | UT | |
| LHM UCS, LLC | UT | |
| McDavid Austin-Acra L.L.C. | DE | TX |
| McDavid Frisco-Hon L.L.C. | DE | TX |
| McDavid Grande L.L.C. | DE | TX |
| McDavid Houston-Niss, L.L.C. | DE | |
| McDavid Irving-Hon, L.L.C. | DE | TX |
| McDavid Plano-Acra, L.L.C. | DE | TX |
| Osborn/Miller Automotive, L.L.C. | UT | CO |
| Plano Lincoln-Mercury, Inc. | DE | TX |
| Precision Computer Services, Inc. | FL | |
| Precision Enterprises Tampa, Inc. | FL | |
| Precision Infiniti, Inc. | FL | |
| Precision Motorcars, Inc. | FL | |
| Precision Nissan, Inc. | FL | |
| Q Automotive Cumming GA, LLC | DE | GA |
| Tampa Hund, L.P. | DE | FL |
| Tampa Kia, L.P. | DE | FL |
| Tampa LM, L.P. | DE | |
| Tampa Mit, L.P. | DE | |
| WMZ Motors, L.P. | DE | |
| WTY Motors, L.P. | DE | FL |

---

## Exhibit 23.1

**Exhibit 23.1**

**Consent of Independent Registered Public Accounting Firm**

We consent to the incorporation by reference in the following Registration Statements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Registration Statement (Form S-8 No. 333-231518) of Asbury Automotive Group, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Registration Statement (Form S-8 No. 333-221146) of Asbury Automotive Group, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Registration Statement (Form S-8 No. 333-165136) of Asbury Automotive Group, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Registration Statement (Form S-3 No. 333-123505) of Asbury Automotive Group, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Registration Statement (Form S-8 No. 333-115402) of Asbury Automotive Group, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Registration Statement (Form S-3 No. 333-112126) of Asbury Automotive Group, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Registration Statement (Form S-8 No. 333-105450) of Asbury Automotive Group, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Registration Statement (Form S-8 No. 333-84646) of Asbury Automotive Group, Inc.

of our reports dated February 20, 2026, with respect to the consolidated financial statements of Asbury Automotive Group, Inc. and the effectiveness of internal control over financial reporting of Asbury Automotive Group, Inc. included in this Annual Report (Form 10-K) of Asbury Automotive Group, Inc. for the year ended December 31, 2025.

/s/ Ernst & Young LLP

Atlanta, Georgia

February 20, 2026

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION PURSUANT TO**

**RULE 13a-14(a)/15d-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934**

**AS ADOPTED PURSUANT TO**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, David W. Hult, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this Annual Report on Form 10-K of Asbury Automotive Group, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| |
|:---|
| /s/ David W. Hult |
| David W. Hult |
| Chief Executive Officer |
| February 20, 2026 |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION PURSUANT TO**

**RULE 13a-14(a)/15d-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934**

**AS ADOPTED PURSUANT TO**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Michael D. Welch, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this Annual Report on Form 10-K of Asbury Automotive Group, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| |
|:---|
| /s/ Michael D. Welch |
| Michael D. Welch |
| Chief Financial Officer |
| February 20, 2026 |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Annual Report on Form 10-K of Asbury Automotive Group, Inc. (the "Company") for the year ended December 31, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, David W. Hult, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| |
|:---|
| /s/ David W. Hult |
| David W. Hult |
| Chief Executive Officer |
| February 20, 2026 |

---

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Annual Report on Form 10-K of Asbury Automotive Group, Inc. (the "Company") for the year ended December 31, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Michael D. Welch, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| |
|:---|
| /s/ Michael D. Welch |
| Michael D. Welch |
| Chief Financial Officer |
| February 20, 2026 |

---

<br>