SONIC AUTOMOTIVE INCSAH
SONIC AUTOMOTIVE INC Segments Disclosure
Segment Information
As of December 31, 2025, Sonic had three operating segments: (1) the Franchised Dealerships Segment; (2) the EchoPark Segment; and (3) the Powersports Segment. Refer to Note 1, “Description of Business and Summary of Significant Accounting Policies,” for additional discussion of our operating segments. Sonic has determined that its operating segments also represent its reportable segments.
The reportable segments identified above are the business activities of Sonic for which discrete financial information is available and for which operating results are regularly reviewed by Sonic’s chief operating decision maker to assess operating performance and allocate resources. Sonic’s chief operating decision maker is a group of three individuals consisting of: (1) the Company’s Chief Executive Officer; (2) the Company’s President; and (3) the Company’s Chief Financial Officer. The chief operating decision makers evaluate segment performance and allocate resources using metrics such as segment gross profit and segment income. These segment profit metrics are consistent across all segments and align with the way we measure profit on a consolidated basis. The accounting policies applied to segments follow those for the Company as a whole.
Reportable segment financial information for the three years ended December 31, 2025 were as follows:
Franchised Dealerships Segment - Reported
| Twelve Months Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
(In millions) | ||||||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Retail new vehicles | $ | 6,941.9 | $ | 6,425.5 | $ | 6,215.0 | ||||||||||||||
| Fleet new vehicles | 101.5 | 95.3 | 92.2 | |||||||||||||||||
| Used vehicles | 3,087.0 | 2,919.8 | 3,050.3 | |||||||||||||||||
| Wholesale vehicles | 207.0 | 188.9 | 204.5 | |||||||||||||||||
| Parts, service and collision repair | 1,970.2 | 1,802.9 | 1,714.2 | |||||||||||||||||
| Finance, insurance and other, net | 571.5 | 506.8 | 498.6 | |||||||||||||||||
| Cost of sales: | ||||||||||||||||||||
| Retail new vehicles | (6,574.3) | (6,048.6) | (5,696.3) | |||||||||||||||||
| Fleet new vehicles | (99.8) | (92.3) | (88.2) | |||||||||||||||||
| Used vehicles | (2,929.2) | (2,769.6) | (2,887.4) | |||||||||||||||||
| Wholesale vehicles | (216.3) | (193.5) | (207.8) | |||||||||||||||||
| Parts, service and collision repair | (964.3) | (894.0) | (861.5) | |||||||||||||||||
| Segment gross profit | $ | 2,095.2 | $ | 1,941.2 | $ | 2,033.6 | ||||||||||||||
| Selling, general and administrative expenses: | ||||||||||||||||||||
| Compensation | (956.9) | (892.4) | (856.6) | |||||||||||||||||
| Advertising | (69.9) | (55.1) | (40.5) | |||||||||||||||||
| Rent | (44.3) | (39.2) | (40.3) | |||||||||||||||||
| Other (1) | (392.5) | (388.7) | (377.2) | |||||||||||||||||
| Depreciation and amortization | (137.7) | (124.4) | (112.3) | |||||||||||||||||
| Other income (expense): | ||||||||||||||||||||
| Interest expense, floor plan | (72.0) | (70.6) | (49.2) | |||||||||||||||||
| Interest expense, other, net | (105.9) | (112.7) | (109.7) | |||||||||||||||||
| Other income (expense), net | 0.1 | (0.5) | 0.2 | |||||||||||||||||
| Segment income | $ | 316.1 | $ | 257.6 | $ | 448.0 | ||||||||||||||
(1) Other selling, general and administrative expenses include various fixed and variable expenses, including gain on disposal of franchises, certain customer-related costs such as gasoline and service loaners, in addition to insurance, training, legal and information technology expenses.
EchoPark Segment - Reported
| Twelve Months Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
(In millions) | ||||||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Retail new vehicles | $ | — | $ | — | $ | 1.0 | ||||||||||||||
| Used vehicles | 1,747.8 | 1,838.0 | 2,143.8 | |||||||||||||||||
| Wholesale vehicles | 104.6 | 95.8 | 111.7 | |||||||||||||||||
| Finance, insurance and other, net | 219.2 | 194.0 | 177.9 | |||||||||||||||||
| Cost of Sales: | ||||||||||||||||||||
| Retail new vehicles | — | — | (0.9) | |||||||||||||||||
| Used vehicles | (1,731.3) | (1,822.8) | (2,160.9) | |||||||||||||||||
| Wholesale vehicles | (106.4) | (97.1) | (110.8) | |||||||||||||||||
| Segment gross profit | $ | 233.9 | $ | 207.9 | $ | 161.8 | ||||||||||||||
| Selling, general and administrative expenses: | ||||||||||||||||||||
| Compensation | (100.6) | (95.8) | (132.0) | |||||||||||||||||
| Advertising | (30.2) | (27.7) | (49.9) | |||||||||||||||||
| Rent | (3.0) | 1.7 | (6.3) | |||||||||||||||||
| Other (1) | (39.0) | (43.9) | (58.8) | |||||||||||||||||
| Depreciation and amortization | (20.4) | (21.8) | (26.6) | |||||||||||||||||
| Other income (expense): | ||||||||||||||||||||
| Interest expense, floor plan | (11.1) | (14.2) | (17.4) | |||||||||||||||||
| Interest expense, other, net | (1.5) | (2.7) | (3.2) | |||||||||||||||||
| Other income (expense), net | — | — | (0.1) | |||||||||||||||||
| Segment income (loss) | $ | 28.1 | $ | 3.5 | $ | (132.5) | ||||||||||||||
(1) Other selling, general and administrative expenses include various fixed and variable expenses, including certain customer-related costs such as gasoline, in addition to insurance, training, legal and information technology expenses.
Powersports Segment - Reported
| Twelve Months Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
(In millions) | ||||||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Retail new vehicles | $ | 105.5 | $ | 82.0 | $ | 88.6 | ||||||||||||||
| Used vehicles | 37.9 | 22.3 | 19.5 | |||||||||||||||||
| Wholesale vehicles | 2.4 | 2.3 | 2.6 | |||||||||||||||||
| Parts, service and collision repair | 48.9 | 43.6 | 45.3 | |||||||||||||||||
| Finance, insurance and other, net | 8.2 | 7.1 | 7.2 | |||||||||||||||||
| Cost of Sales: | ||||||||||||||||||||
| Retail new vehicles | (89.8) | (70.5) | (72.0) | |||||||||||||||||
| Used vehicles | (31.1) | (17.0) | (14.1) | |||||||||||||||||
| Wholesale vehicles | (2.5) | (2.6) | (2.8) | |||||||||||||||||
| Parts, service and collision repair | (25.7) | (23.5) | (24.0) | |||||||||||||||||
| Segment gross profit | $ | 53.8 | $ | 43.7 | $ | 50.3 | ||||||||||||||
| Selling, general and administrative expenses: | ||||||||||||||||||||
| Compensation | (29.9) | (25.7) | (27.7) | |||||||||||||||||
| Advertising | (1.1) | (1.7) | (1.8) | |||||||||||||||||
| Rent | 0.9 | 0.9 | 0.5 | |||||||||||||||||
| Other (1) | (11.7) | (9.4) | (9.9) | |||||||||||||||||
| Depreciation and amortization | (5.3) | (4.2) | (3.4) | |||||||||||||||||
| Other income (expense): | ||||||||||||||||||||
| Interest expense, floor plan | (1.6) | (2.1) | (0.6) | |||||||||||||||||
| Interest expense, other, net | (2.8) | (2.6) | (1.7) | |||||||||||||||||
| Segment income (loss) | $ | 2.3 | $ | (1.1) | $ | 5.7 | ||||||||||||||
(1) Other selling, general and administrative expenses include various fixed and variable expenses, including gain on disposal of franchises, certain customer-related costs such as gasoline, in addition to insurance, training, legal and information technology expenses.
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Segment Income (Loss) (1): | (In millions) | ||||||||||||||||
| Franchised Dealerships Segment (2) | $ | 316.1 | $ | 257.6 | $ | 448.0 | |||||||||||
| EchoPark Segment (3) | 28.1 | 3.5 | (132.5) | ||||||||||||||
Powersports Segment (4) | 2.3 | (1.1) | 5.7 | ||||||||||||||
| Total segment income (loss) | $ | 346.5 | $ | 260.0 | $ | 321.2 | |||||||||||
Impairment charges (5) | (173.8) | (3.9) | (79.3) | ||||||||||||||
| Income (loss) before taxes | $ | 172.8 | $ | 256.1 | $ | 241.9 | |||||||||||
Note: Due to rounding, segment level financial data may not sum to consolidated results.
(1)Segment income (loss) for each segment is defined as income (loss) before taxes and impairment charges.
(2)For 2025, amount includes approximately $40.0 million of pre-tax benefit from cyber insurance proceeds related to the CDK outage, approximately $5.0 million of pre-tax charges related to storm damage, approximately $5.5 million of pre-tax loss related to dispositions, and approximately $0.7 million of pre-tax legal expenses. For 2024, amount includes approximately $13.0 million of pre-tax charges related to excess compensation as a result of the CDK outage, approximately $8.3 million of pre-tax charges related to storm damage, approximately $3.5 million of pre-tax gain related to the acquisition of the remaining equity interest in a joint venture, $10.0 million of pre-tax gain related to the CDK outage cyber claim payment, and approximately $2.2 million of pre-tax charges related to severance and long-term compensation expense. For 2023, amount includes approximately $20.9 million of pre-tax gain related to acquisitions and dispositions and approximately $1.9 million of pre-tax charges related to storm damage.
(3)For 2025, amount includes approximately $0.9 million of pre-tax gain on dispositions. For 2024, amount includes approximately $3.0 million of pre-tax gain on exit of leased properties, approximately $2.9 million of pre-tax charges for severance and long-term compensation expense, approximately $2.1 million of pre-tax charges related to closed store accrued expenses related to the indefinite suspension of operations at certain EchoPark locations, approximately $2.1 million of pre-tax gain on real estate dispositions, and approximately $0.4 million of pre-tax charges related to excess compensation as a result of the CDK outage. For 2023, amount includes approximately $10.0 million of pre-tax charges related to used vehicle inventory valuation adjustments, $5.1 million of pre-tax charges for long-term compensation expense, approximately $4.3 million of pre-tax lease exit charges and approximately $0.3 million of pre-tax loss related to acquisitions and dispositions.
(4)For 2025, amount includes approximately $1.1 million of pre-tax charges related to dispositions. For 2024, amount includes approximately $0.5 million of pre-tax charges related to severance and long-term compensation expense.
(5)For 2025, amount includes approximately $165.9 million of non-cash pre-tax franchise asset impairment charges for the Franchised Dealerships Segment, approximately $0.2 million of non-cash pre-tax property and equipment impairment charges for real estate held for sale in the EchoPark Segment, and approximately $0.4 million of non-cash pre-tax property, equipment and right-of-use asset impairment charges, and approximately $7.2 million of non-cash pre-tax franchise asset impairment charges for the Powersports Segment. For 2024, amount includes approximately $1.2 million of pre-tax franchise asset and property and equipment impairment charges for the Franchised Dealerships Segment and approximately $2.7 million of pre-tax property and equipment charges for real estate held for sale in the EchoPark Segment. For 2023, amount includes approximately $1.0 million of pre-tax franchise asset and property and equipment impairment charges for the Franchised Dealerships Segment and approximately $78.3 million of pre-tax impairment charges related to fixed assets, lease right-of-use assets, and other contractual obligations related to abandoned property for the EchoPark Segment.
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In millions) | |||||||||||||||||
| Capital expenditures: | |||||||||||||||||
| Franchised Dealerships Segment | $ | 145.8 | $ | 182.4 | $ | 181.4 | |||||||||||
| EchoPark Segment | 1.2 | 1.0 | 15.3 | ||||||||||||||
| Powersports Segment | 2.9 | 3.9 | 6.9 | ||||||||||||||
| Total capital expenditures | $ | 149.9 | $ | 187.3 | $ | 203.6 | |||||||||||
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| (In millions) | |||||||||||
| Assets: | |||||||||||
| Franchised Dealerships Segment | $ | 4,933.9 | $ | 4,704.5 | |||||||
| EchoPark Segment | 506.1 | 574.5 | |||||||||
| Powersports Segment | 224.4 | 232.7 | |||||||||
| Corporate and other: | |||||||||||
| Cash and cash equivalents | 6.3 | 44.0 | |||||||||
Floor plan deposit balance (1) | 300.0 | 340.0 | |||||||||
| Total assets | $ | 5,970.7 | $ | 5,895.7 | |||||||
(1)The floor plan deposit balance was reclassified to Corporate and other in the current period. Prior period amounts as of December 31, 2024 have been adjusted to conform to the current period presentation.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 23, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 23, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Feb 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.