Q3 25 EPS
$1.41
MISS 18.74%
Est. $1.74
Q3 25 Revenue
$3.97B
BEAT +9.52%
Est. $3.63B
vs S&P Since Q3 25
+29.6%
BEATING MARKET
SAH +40.5% vs S&P +11.0%
Market Reaction
Did SAH Beat Earnings? Q3 2025 Results
Sonic Automotive delivered a split verdict in Q3 2025, posting record-breaking revenue while falling well short of Wall Street's profit expectations, a combination that sent shares tumbling more than 15%. The Charlotte-based auto retailer grew revenu… Read more Sonic Automotive delivered a split verdict in Q3 2025, posting record-breaking revenue while falling well short of Wall Street's profit expectations, a combination that sent shares tumbling more than 15%. The Charlotte-based auto retailer grew revenue 13.8% year-over-year to $3.97 billion, clearing the $3.63 billion consensus estimate by 9.52%, yet adjusted EPS of $1.41 missed the $1.74 consensus by 18.74%, with multiple law firms subsequently announcing investor investigations into the shortfall. The profit gap traced primarily to a sharp increase in medical expenses, a higher effective income tax rate, and the absence of a $31 million prior-year tax benefit, which together dragged reported net income down 37% to $46.80 million. Bright spots included record fixed operations gross profit and a standout Powersports segment that nearly doubled segment income to $7.80 million. Looking ahead, management guided for new vehicle GPU of $3,100 to $3,200 per unit and EchoPark adjusted EBITDA of $48 to $50 million for full-year 2025, though tariff uncertainty looms as a significant wildcard across all segments.
Key Takeaways
- • All-time record quarterly consolidated revenues and gross profit
- • Franchised Dealerships Segment same-store revenues up 11% and gross profit up 8%
- • Record fixed operations gross profit up 8% same-store with margin expansion to 51.2%
- • Record F&I gross profit up 13% same-store with GPU of $2,500 up 7%
- • Powersports Segment achieved all-time record quarterly revenues, gross profit, and segment income driven by 85th Sturgis Motorcycle Rally and modernized inventory management
- • Significant increase in medical expenses negatively impacted results
- • Higher effective income tax rate in Q3 2025 vs prior year
- • EchoPark faced vehicle gross margin headwinds reducing segment profitability
SAH YoY Financials
Q3 2025 vs Q3 2024, source: SEC Filings
SAH Revenue by Segment
With YoY comparisons, source: SEC Filings
“I am very proud of our team's effort in the third quarter, driving all-time record quarterly consolidated revenues and gross profit. Our team remains focused on delivering an outstanding experience for our guests and adapting our business to ongoing changes in the automotive retail environment. The acquisition of our latest Jaguar Land Rover store in Santa Monica cements Sonic as the largest Jaguar Land Rover volume retailer in the U.S. and enhances our brand portfolio in the coveted California luxury market. I'd also like to congratulate our powersports team on achieving all-time record quarterly results, driven by record sales volume at this year's 85th Sturgis Motorcycle Rally and continued improvement as a result of our investment in modernizing our powersports inventory management and marketing processes.”
— David Smith, Q3 2025 Earnings Press Release
SAH Earnings Trends
SAH vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
SAH EPS Trend
Earnings per share: estimate vs actual
SAH Revenue Trend
Quarterly revenue: estimate vs actual
SAH Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $1.40 | $1.62 | +15.46% | $3.69B | -1.10% |
| Q4 25 BEAT FY | $1.50 | $1.52 | +1.66% | $3.87B | -1.69% |
| FY Full Year | $6.60 | $6.60 | -0.01% | $15.15B | -0.05% |
| Q3 25 MISS | $1.74 | $1.41 | -18.74% | $3.97B | +9.52% |
| Q2 25 BEAT | $1.60 | $2.19 | +36.58% | $3.66B | -0.03% |
| Q1 25 BEAT | $1.44 | $1.48 | +3.04% | $3.65B | +3.78% |