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Lithia Motors: A 71% Jump In DFC Financing Income Is The Earnings Shift Worth Watching!

Lithia Motors, Inc. reported first quarter fiscal 2026 results characterized by record revenues of $9.3 billion and adjusted diluted earnings per share (EPS) of $7.34. The company attributes these outcomes to a diversified and integrated business model that demonstrated operational resilience amid weather-related challenges and a complex macroeconomic environment. Revenue growth was solid year-over-year, supported by strength in used vehicle sales, aftersales services, and Driveway Finance Corporation (DFC), its captive finance arm, which delivered record loan originations and a 71% increase in financing operation income to $21 million. Same-store revenues declined 1.7%, and total gross profit decreased 2.3% year-over-year, reflecting difficult comparisons to the robust first quarter of 2025. New vehicle revenue fell 7.1% due to a unit decline of the same magnitude and lower gross profit per unit (GPU) driven in part by a prior-year pull-forward related to tariff avoidance. Used vehicle revenue, however, grew 4.