Lithia & Driveway (NYSE:LAD) reported record-breaking revenue for the first quarter of 2026, as the automotive retailer leveraged its massive scale and growing captive finance arm to navigate a complex consumer environment.
The company posted total revenue of $9.3 billion, the highest first-quarter figure in its history, though the bottom line faced significant pressure from operational headwinds.
Net income attributable to the company was $102 million, representing a 51.7% decline from the prior-year period.
On an adjusted basis, net income was $173.3 million, down 18% year-over-year.
Diluted earnings per share (EPS) stood at $4.28, while adjusted diluted EPS was $7.34.
The divergence between GAAP and adjusted figures reflects the impact of non-core charges and the continued integration of recent acquisitions.
A key bright spot in the quarter was the performance of the company’s used vehicle segment, where same-store gross profit per unit (GPU) rose 9% sequentially.
This suggests a stabilization in used car margins following several quarters of volatility.
Furthermore, Driveway Finance Corporation (DFC) continued its expansion, reaching $840 million in originations with an 18% penetration rate.
The credit quality of these originations remained high, with an average FICO score of 750.
Meanwhile, Lithia & Driveway remained aggressive in its capital allocation strategy, returning substantial value to shareholders.
The company repurchased approximately $259 million in shares during the quarter, equivalent to roughly 4% of its outstanding stock.
Additionally, the Board of Directors declared a quarterly dividend of $0.57 per share, payable on May 22, 2026, to shareholders of record as of May 8, 2026.