- **Record Growth**: Q3 revenue $4B (14% YoY), EBITDA $1.41 EPS (12% growth), driven by franchise F&I and fixed ops.
- **EV Margin Headwinds**: 11.9% EV mix caused $100 GPU decline; Q4 EV volume expected to halve.
- **Powersports Surge**: 42% YoY revenue growth, targeting industry consolidation at lower multiples.
- **EchoPark Reset**: 2026 expansion plans after addressing $24M inventory gap; focusing on off-lease sourcing.
- **Medical Costs**: $31M YoY increase resolved; Q4 guidance for stable expenses.

**【CEO Opening Remarks】**
- **Record Q3 Performance**: GAAP EPS of $1.33, adjusted EPS of $1.41 (12% YoY growth). Consolidated revenue reached $4B (14% YoY), with gross profit up 13% and EBITDA up 11%.
- **Franchise Strength**: Franchise revenues $3.4B (17% YoY), driven by 7% same-store new volume growth and 6% fixed ops increase. F&I GPU hit $2,597 (11% YoY), mitigating EV margin pressure.
- **EchoPark Challenges**: Adjusted EBITDA $8.2M (down 8% YoY) due to 2,000 unit shortfall from rental car supply disruption. Powersports segment set records with $84M revenue (42% YoY) and $10.1M EBITDA.
- **Balance Sheet**: $815M liquidity, completing JLR acquisitions to become U.S. leader. Dividend increased to $0.38/share.

**【CFO Financial Commentary】**
- **Medical Expense Impact**: Q3 medical costs rose $31M (YoY), driving $0.10 EPS dilution. Q4 guidance for flat medical costs at $72.8M SG&A.
- **Segment Margins**: Franchise F&I GPU $2,597 (down 5% QoQ due to EV mix). Used GPU $1,530 (down 4% QoQ). Powersports GPU at record levels.
- **Tariff Resilience**: High-margin fixed ops (75% of gross profit) offset vehicle margin pressure. Technician headcount growth driving customer pay gains.

**【Q&A Highlights】**
- **Used Car Market Dynamics**: Franchise cost of sales reduced to $34K (targeting $30K). EchoPark buying $24K+ off-lease vehicles to offset auction reliance.
- **EV Impact**: Q3 EV sales 11.9% mix (vs. 8.3% Q2), causing $100 front-end GPU decline. Q4 EV volume expected to drop 50% post-tax credit expiration.
- **Powersports Growth**: 2025 Sturgis rally record with 1,105 motorcycle sales. Used vehicle sales up 70% YoY. Viewing industry as 1990s automotive with low consolidation.
- **Tariff Outlook**: No material pricing impact yet, but monitoring manufacturer production shifts.
- **EchoPark Recovery**: 2026 store openings contingent on inventory normalization. Non-auction sourcing to improve affordability and margins.

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