SAHHIGH SIGNALFINANCIAL10-K

SAH experienced a dramatic cash position deterioration with cash and equivalents plummeting from $44.0M to $6.3M, while the company expanded its franchised dealership footprint amid shifting segment revenue mix.

The 85.7% decline in cash and equivalents to just $6.3M raises immediate liquidity concerns and suggests either significant cash deployment or operational cash burn that requires investor scrutiny. The simultaneous expansion of franchised dealerships (108 to 111 stores) while closing one powersports location indicates strategic reallocation toward the core franchised segment, which now represents 85.0% of total revenue compared to 83.9% in the prior year.

Comparing 2026-02-23 vs 2025-02-19View on EDGAR →
FINANCIAL ANALYSIS

SAH's financial profile shows meaningful stress with cash reserves falling dramatically to $6.3M from $44.0M, creating potential liquidity constraints. While net income declined substantially to $118.7M and operating income fell 20.4% to $367.5M, the company maintained profitability across segments. The overall picture signals a company managing through operational challenges while strategically focusing resources on its dominant franchised dealership business, though the severe cash position deterioration demands immediate attention from investors.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
-85.7%
$44.0M→$6.3M

Cash declined 85.7% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Net Income
P&L
-45%
$216.0M→$118.7M

Net income declined 45% — review whether driven by operations, interest costs, or non-recurring items.

Operating Income
P&L
-20.4%
$461.5M→$367.5M

Operating profitability softening — costs rising faster than revenue, watch for margin recovery plan.

LANGUAGE CHANGES
NEW — 2026-02-23
PRIOR — 2025-02-19
ADDED
As of February 6, 2026, there were 21,546,494 shares of Class A Common Stock, par value $0.01 per share, and 12,029,375 shares of Class B Common Stock, par value $0.01 per share, outstanding.
As of December 31, 2025, we operated 111 stores in the Franchised Dealerships Segment, 18 stores in the EchoPark Segment, and 14 stores in the Powersports Segment.
The EchoPark Segment consists of 18 stores and operates in 10 states.
The Powersports Segment consists of 41 franchises at 14 locations (11 full-service dealerships and three authorized retail outlets) in three states.
In 2025, Franchised Dealerships Segment revenue represented approximately 85.0% of total revenue (compared to 83.9% in 2024).
In 2025, EchoPark Segment revenue represented approximately 13.7% of total revenue (compared to 15.0% in 2024).
In 2025, Powersports Segment revenue represented approximately 1.3% of total revenue (compared to 1.1% in 2024).
Business Strategy Increase Sales of Higher-Margin Products and Services .
During 2025, we repurchased approximately 1.3 million shares of our Class A Common Stock for approximately $82.4 million.
As of December 31, 2025, our total remaining share repurchase authorization was approximately $ 169.9 million.
REMOVED
As of February 7, 2025, there were 21,692,669 shares of Class A Common Stock, par value $0.01 per share, and 12,029,375 shares of Class B Common Stock, par value $0.01 per share, outstanding.
As of December 31, 2024, we operated 108 stores in the Franchised Dealerships Segment, 18 stores in the EchoPark Segment, and 15 stores in the Powersports Segment.
The EchoPark Segment operates in 10 states and the Powersports Segment operates in three states.
In 2024, Franchised Dealerships Segment revenue represented approximately 83.9% of total revenue (compared to 82.0% in 2023).
In 2024, EchoPark Segment revenue represented approximately 15.0% of total revenue (compared to 16.9% in 2023).
In 2024, Powersports Segment revenue represented approximately 1.1% of total revenue (compared to 1.1% in 2023).
During 2024, we repurchased approximately 0.6 million shares of our Class A Common Stock for approximately $34.4 million.
As of December 31, 2024, our total remaining share repurchase authorization was approximately $ 252.3 million.
The supply of late-model used vehicles in 2024 continued to be affected by shortfalls in new vehicle manufacturing which occurred during the COVID-19 pandemic, which caused fewer vehicles to be manufactured in the affected years.
During calendar year 2024, approximately 16.1 million new cars and 13.1 million used cars were sold at retail, many of which were accompanied by trade-ins that could then be resold as used vehicles.
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