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Key Takeaways Range Resources reported Q1 2026 EPS of $1.52, beating estimates and increasing from 96 cents a year ago.RRC posted realized prices of $5.09 per Mcfe, up 27%, with natural gas prices rising 43% year over year. Range Resources revenues top $1.02B, driven by natural gas prices and production growth. Range Resources Corporation (RRC - Free Report) reported first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. 

Total quarterly revenues of $1,018.3 million topped the Zacks Consensus Estimate of $919.3 million. The top line increased from the prior-year figure of $854 million.

Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.

Operational Performance of RRCProduction averaged 2,207.4 million cubic feet equivalent per day (MMcfe/d), higher than the year-ago quarter’s 2,200.3 MMcfe/d. The figure came in lower than our projection of 2,233.7 MMcfe/d. Natural gas contributed 68% to the company’s total production, while NGLs and oil accounted for the rest. 

Natural gas production remained flat year over year. Oil production increased 75%, while NGL output declined 2% over the same time frame.

Total price realization (excluding derivative settlements and before third-party transportation costs) averaged $5.09 per Mcfe, up 27% year over year. Price realization exceeded our estimate of $4.48 per Mcfe. Natural gas price increased 43% on a year-over-year basis to $5.18 per Mcf. NGL price declined 4%, while oil price rose 4%.

RRC’s Costs & ExpensesTotal costs and expenses increased 3% year over year to $601 million. The reported figure topped our projection of $571.3 million. Transportation, gathering, processing and compression costs, which constitute a significant part of the total costs, increased to $323.3 million from $306.1 million in the prior-year quarter.

RRC’s Capital Expenditure & Balance SheetDrilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments.

At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.

Outlook of Range ResourcesRRC expects the total production for 2026 to be in the range of 2.35-2.40 billion cubic feet equivalent per day (Bcfe/d), of which more than 30% is expected to come from liquid production. The company updated its capital budget for the year to be in the range of $650-$700 million.

RRC’s Zacks Rank & Stocks to ConsiderCurrently, Range Resources carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Chevron Corporation (CVX - Free Report) , BP p.l.c. (BP - Free Report) and Antero Resources Corporation (AR - Free Report) . CVX and BP each sport a Zacks Rank #1 (Strong Buy), while AR has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks Rank #1 stocks here.

Chevron is a leading integrated energy giant involved in all aspects of the oil and gas industry, including exploration, production, refining and marketing. As one of the world's largest integrated energy firms, it operates globally with assets in North America, Kazakhstan, Australia, Nigeria and many other countries.

In the United States, CVX maintains a significant presence in the Permian Basin, with more than 1.75 million net acres in the Delaware and Midland sub-basins. With a sustained demand for oil and gas in the future, Chevron is positioning itself as a key provider by expanding its oil and gas supply to fulfill the increased global energy needs. CVX is set to release first-quarter 2026 earnings on May 1, 2026.

BP is an energy giant that operates globally in oil and gas exploration, extraction, refining and marketing. BP generates a significant portion of revenues from its upstream operations. Alongside its core hydrocarbon business, BP is also focusing on lower-carbon energy, including biofuels, electric vehicle charging, hydrogen and renewable power. BP is set to release first-quarter 2026 earnings on April 28, 2026.

Headquartered in Denver, CO, Antero Resources is an independent energy company focused on producing natural gas and natural gas liquids (NGLs) in the Appalachian Basin. AR utilizes horizontal drilling and hydraulic fracturing to develop its extensive 537,000 acreage in the Appalachian Basin, primarily in West Virginia and Ohio. Strong natural gas demand driven by liquified natural gas exports and power consumption is expected to benefit AR as it stands as a major U.S. natural gas producer. AR is set to release first-quarter 2026 earnings on April 29, 2026.

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For the quarter ended March 2026, Range Resources (RRC - Free Report) reported revenue of $1.02 billion, up 19.2% over the same period last year. EPS came in at $1.52, compared to $0.96 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $919.26 million, representing a surprise of +10.77%. The company delivered an EPS surprise of +14.29%, with the consensus EPS estimate being $1.33.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Range Resources performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net production per day - Natural Gas: 1,508.84 Mcf/D compared to the 1,553.79 Mcf/D average estimate based on six analysts.Net production per day - Oil: 8,239.00 BBL/D versus 5,661.48 BBL/D estimated by six analysts on average.Net production per day - Natural Gas Equivalent: 2,207.44 Mcfe/D versus the five-analyst average estimate of 2,251.98 Mcfe/D.Net production per day - NGLs: 108.19 millions of barrels of oil per day versus 110.06 millions of barrels of oil per day estimated by five analysts on average.Average realized prices after hedges - Natural Gas: $4.85 versus $4.56 estimated by five analysts on average.Average realized prices after hedges - NGLs: $26.62 versus $24.49 estimated by four analysts on average.Average realized prices after hedges - Oil: $58.41 versus the four-analyst average estimate of $60.46.Average prices, excluding derivative settlements and before third-party - Natural Gas: $5.18 versus the three-analyst average estimate of $4.82.Average prices, excluding derivative settlements and before third-party - NGLs: $26.62 versus $24.88 estimated by three analysts on average.Revenues and other income- Natural gas, NGLs and oil sales: $1.01 billion compared to the $929.98 million average estimate based on three analysts. The reported number represents a change of +27.6% year over year.Revenues and other income- Brokered natural gas, marketing and other: $57.23 million versus the three-analyst average estimate of $51.66 million. The reported number represents a year-over-year change of +5.2%.Revenues and other income- Natural gas, NGLs and Oil Sales components- Natural gas sales: $704.08 million compared to the $655.7 million average estimate based on two analysts. The reported number represents a change of +43.6% year over year.View all Key Company Metrics for Range Resources here>>>

Shares of Range Resources have returned -9.3% over the past month versus the Zacks S&P 500 composite's +8.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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Published in earnings earnings-estimates-revisions earnings-surprise

Posted by Defense World Staff on Apr 24th, 2026

Evergreen Capital Management LLC raised its stake in Range Resources Corporation (NYSE:RRC – Free Report) by 166.2% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 27,775 shares of the oil and gas exploration company’s stock after buying an additional 17,343 shares during the quarter. Evergreen Capital Management LLC’s holdings in Range Resources were worth $979,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds have also recently added to or reduced their stakes in the stock. PFG Advisors lifted its stake in Range Resources by 23.2% in the fourth quarter. PFG Advisors now owns 6,545 shares of the oil and gas exploration company’s stock valued at $231,000 after buying an additional 1,231 shares during the period. Journey Advisory Group LLC lifted its stake in Range Resources by 15.6% in the fourth quarter. Journey Advisory Group LLC now owns 112,491 shares of the oil and gas exploration company’s stock valued at $3,966,000 after buying an additional 15,197 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank lifted its stake in Range Resources by 4.1% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 75,990 shares of the oil and gas exploration company’s stock valued at $2,679,000 after buying an additional 2,978 shares during the period. GF Fund Management CO. LTD. lifted its stake in Range Resources by 7.1% in the fourth quarter. GF Fund Management CO. LTD. now owns 69,406 shares of the oil and gas exploration company’s stock valued at $2,447,000 after buying an additional 4,583 shares during the period. Finally, Moran Wealth Management LLC raised its position in shares of Range Resources by 68.0% during the fourth quarter. Moran Wealth Management LLC now owns 53,476 shares of the oil and gas exploration company’s stock worth $1,886,000 after purchasing an additional 21,639 shares during the period. Institutional investors and hedge funds own 98.93% of the company’s stock.

Range Resources Stock Down 1.4% NYSE:RRC opened at $42.63 on Friday. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.67 and a current ratio of 0.55. The company has a market cap of $10.05 billion, a PE ratio of 11.28, a PEG ratio of 0.79 and a beta of 0.51. Range Resources Corporation has a 52-week low of $32.60 and a 52-week high of $48.31. The stock has a 50-day simple moving average of $42.22 and a 200 day simple moving average of $38.54.

Range Resources (NYSE:RRC – Get Free Report) last posted its quarterly earnings data on Tuesday, April 21st. The oil and gas exploration company reported $1.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.25 by $0.27. The business had revenue of $1.07 billion during the quarter, compared to the consensus estimate of $898.20 million. Range Resources had a return on equity of 18.64% and a net margin of 26.09%.Range Resources’s quarterly revenue was up 49.8% on a year-over-year basis. During the same period last year, the company earned $0.96 earnings per share. On average, sell-side analysts expect that Range Resources Corporation will post 3.65 EPS for the current fiscal year.

Range Resources Increases Dividend The company also recently disclosed a quarterly dividend, which was paid on Friday, March 27th. Investors of record on Friday, March 13th were issued a dividend of $0.10 per share. The ex-dividend date was Friday, March 13th. This is a boost from Range Resources’s previous quarterly dividend of $0.09. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.9%. Range Resources’s dividend payout ratio is 10.58%.

Key Headlines Impacting Range Resources Here are the key news stories impacting Range Resources this week:

Positive Sentiment: Q1 2026 earnings beat — Range posted stronger-than-expected revenue and EPS driven by higher production and improved natural‑gas price realizations; revenue topped $1B and margins expanded, supporting near‑term cash generation. RRC Q1 Earnings Surpass Estimates on Higher Price Realizations Positive Sentiment: Earnings call highlighted record margins and strong cash flow — Management emphasized high operating margins, robust free cash flow and capital discipline, which support shareholder returns and a favorable payout/capital allocation outlook. Range Resources Corp (RRC) Q1 2026 Earnings Call Highlights: Record Cash Flow and Strategic … Positive Sentiment: Operational efficiency and export tailwinds — Company reports and analyst writeups point to better well performance, cost control and growing LNG/export demand that boosted realizations and helped drive outperformance vs. peers. RRC Q1 Deep Dive: Operational Efficiency and Export Tailwinds Drive Outperformance Positive Sentiment: Bank of America raised its price target to $44 — A notable sell‑side upgrade that signals improving analyst sentiment and provides support for the stock’s valuation. Bank of America Raises Range Resources (NYSE:RRC) Price Target to $44.00 Positive Sentiment: Technicals: rising relative price strength — Market screens note RRC among stocks gaining relative momentum, which can attract trend‑following flows. Stocks with rising relative price strength: Range Resources Neutral Sentiment: Company maintains a measured 2026 production-growth plan — Management is prioritizing capital discipline over aggressive volume growth, which reduces execution risk but may limit near‑term production upside. Range Resources sticking to measured 2026 growth plan Neutral Sentiment: Analyst/metrics digests and transcript available — Multiple outlets parsed the call and granular metrics (costs, volumes, realized prices); the transcript and analyst notes offer detail for model updates. Range Resources Corporation (RRC) Q1 2026 Earnings Call Transcript Compared to Estimates, Range Resources (RRC) Q1 Earnings: A Look at Key Metrics Neutral Sentiment: Broader analyst commentary — Coverage pieces note RRC’s strengths vs. peers but also highlight sensitivity to natural gas prices and macro demand for LNG exports. Analysts Offer Insights on Energy Companies: Exxon Mobil (XOM) and Range Resources (RRC) Wall Street Analyst Weigh In RRC has been the topic of a number of research analyst reports. Morgan Stanley dropped their price target on Range Resources from $42.00 to $40.00 and set an “equal weight” rating on the stock in a research report on Friday, January 23rd. Weiss Ratings raised Range Resources from a “hold (c)” rating to a “buy (b)” rating in a research report on Friday, February 27th. TD Cowen raised their price target on Range Resources from $40.00 to $45.00 and gave the stock a “hold” rating in a research report on Tuesday, March 17th. Stephens dropped their price target on Range Resources from $55.00 to $54.00 and set an “overweight” rating on the stock in a research report on Tuesday. Finally, Truist Financial dropped their price target on Range Resources from $48.00 to $46.00 and set a “hold” rating on the stock in a research report on Thursday, April 9th. Four analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Range Resources currently has a consensus rating of “Hold” and an average price target of $43.41.

Get Our Latest Stock Analysis on RRC

Insider Activity In related news, Director Brenda A. Cline sold 7,000 shares of the stock in a transaction dated Tuesday, April 7th. The stock was sold at an average price of $44.40, for a total transaction of $310,800.00. Following the completion of the transaction, the director directly owned 28,668 shares in the company, valued at approximately $1,272,859.20. This trade represents a 19.63% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 1.10% of the company’s stock.

About Range Resources (Free Report)

Range Resources Corporation, headquartered in Fort Worth, Texas, is an independent energy company engaged in the exploration, development and production of natural gas, oil and natural gas liquids. The company focuses its core operations on the Appalachian Basin, with a significant presence in Pennsylvania’s Marcellus Shale. Through its drilling and completion activities, Range Resources seeks to optimize production efficiency while maintaining a disciplined approach to capital allocation and cost management.

The company’s technical expertise centers on advanced horizontal drilling and hydraulic fracturing techniques, which it applies to unlock unconventional resources.

Read More Five stocks we like better than Range Resources Want to see what other hedge funds are holding RRC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Range Resources Corporation (NYSE:RRC – Free Report).

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Range Resources (RRC - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.

The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.

The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.

Therefore, the Zacks rating upgrade for Range Resources basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

For Range Resources, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Range ResourcesFor the fiscal year ending December 2026, this independent oil and gas company is expected to earn $4.11 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Range Resources. Over the past three months, the Zacks Consensus Estimate for the company has increased 27.1%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Range Resources to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Range Resources (RRC - Free Report) Based in Fort Worth, TX, Range Resources is an independent oil and gas company engaged in the exploration, development and acquisition of oil and natural gas properties, primarily in the Appalachian Basin with principal area of operations is the Marcellus Shale in Pennsylvania.

RRC is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. RRC has a Growth Style Score of B, forecasting year-over-year earnings growth of 25.7% for the current fiscal year.

For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.48 to $3.77 per share. RRC boasts an average earnings surprise of +14.3%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, RRC should be on investors' short list.

May 29, 2026 06:30 ET  | Source: Range Resources Corporation

FORT WORTH, Texas, May 29, 2026 (GLOBE NEWSWIRE) -- RANGE RESOURCES CORPORATION (NYSE: RRC) today announced that its Board of Directors declared a quarterly cash dividend on its common stock for the second quarter. A dividend of $0.10 per common share is payable on June 26, 2026 to stockholders of record at the close of business on June 12, 2026.

RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading U.S. independent natural gas and NGL producer with operations focused in the Appalachian Basin. The Company is headquartered in Fort Worth, Texas. More information about Range can be found at www.rangeresources.com.

SOURCE: Range Resources Corporation

It has been about a month since the last earnings report for Lithia Motors (LAD - Free Report) . Shares have lost about 16% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Lithia Motors due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Lithia Motors, Inc. before we dive into how investors and analysts have reacted as of late.

Lithia Q4 Earnings Miss ExpectationsLithia reported fourth-quarter 2025 adjusted earnings per share of $6.74, down from the prior-year quarter’s figure of $7.79. The figure missed the Zacks Consensus Estimate of $8.09. Revenues of $9.2 billion remained flat year over year and missed the Zacks Consensus Estimate of $9.53 billion.

Segmental PerformanceNew vehicle revenues fell 5.7% year over year to $4.63 billion and missed our estimate of $4.71 billion due to lower-than-expected average selling price (ASP). New vehicle units sold declined 8.1% from the prior-year quarter’s level to 97,424 units but beat our estimate of 95,435 units.

The ASP of new vehicle increased to $48,239 from $47,478 in the prior-year quarter but missed our estimate of $49,401. The gross margin in this segment contracted 70 basis points (bps) to 5.9% while the cost of sales fell 5% year over year to $4.36 billion.

Used vehicle revenues rose 6.7% year over year to $3.2 billion and surpassed our estimate of $2.68 billion due to higher-than-anticipated unit sales and ASP. The used-vehicle retail units sold increased 4.8% from the year-ago quarter’s figure to 99,905 units and beat our expectation of 94,261 units. The ASP of used vehicle was $28,533, up 3.1% year over year. Our estimate was $28,413. The gross margin in the segment decreased 60 bps to 4.7%.

The company’s finance and insurance revenues rose 0.3% to $356.9 million and beat our estimate of $347 million. Revenues from aftersales totaled $1.04 billion, which rose 11.4% year over year and beat our estimate of $972.1 million. Same-store new vehicle revenues fell 6.6% year over year, while same-store used vehicle sales rose 6.1%. Same-store revenues from finance and insurance fell 0.9%, while those from the aftersales unit rose 10.9%.

Financial TidbitsCost of sales was up 0.3% year over year. SG&A expenses amounted to $979.3 million, up 8.6% year over year. Adjusted SG&A, as a percentage of gross profit, was 71.4%, up from the prior-year quarter’s 66.3%. Pretax and net profit margins declined from the year-ago levels.

The company announced a dividend of 55 cents to be paid out on March 20, 2026, to its shareholders of record as of March 6, 2026. In fourth-quarter 2025, LAD repurchased nearly 917,427 shares at an average price of $314. Currently, Lithia has approximately $621.6 million shares remaining under its buyback authorization.

Lithia had cash/cash equivalents/restricted cash of $341.8 million as of Dec. 31, 2025, down from $402.2 million as of Dec. 31, 2024. Long-term debt was $7.27 billion as of Dec. 31, 2025, up from $6.12 billion as of Dec. 31, 2024.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a flat trend in estimates review.

VGM ScoresCurrently, Lithia Motors has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top quintile for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook Lithia Motors has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

CRANBURY, N.J.--(BUSINESS WIRE)--Rocket Pharmaceuticals, Inc. (NASDAQ: RCKT), a fully integrated biotechnology company advancing a sustainable pipeline of genetic therapies for rare disorders with high unmet need, today announced that the U.S. Food and Drug Administration (FDA) has granted accelerated approval for KRESLADI™ (marnetegragene autotemcel), an autologous hematopoietic stem cell-based gene therapy indicated for the treatment of pediatric patients with severe leukocyte adhesion defici.

Posted by Defense World Staff on Mar 31st, 2026

Lithia Motors, Inc. (NYSE:LAD – Get Free Report) was the target of some unusual options trading on Monday. Traders purchased 6,255 put options on the company. This represents an increase of 3,356% compared to the average daily volume of 181 put options.

Lithia Motors Stock Down 1.7% LAD stock opened at $246.20 on Tuesday. Lithia Motors has a one year low of $239.78 and a one year high of $360.55. The firm has a market cap of $5.76 billion, a PE ratio of 7.66, a PEG ratio of 0.59 and a beta of 1.21. The firm’s 50 day moving average price is $290.36 and its 200-day moving average price is $310.55. The company has a debt-to-equity ratio of 1.46, a quick ratio of 0.26 and a current ratio of 1.17.

Lithia Motors (NYSE:LAD – Get Free Report) last issued its quarterly earnings data on Wednesday, February 11th. The company reported $6.74 earnings per share for the quarter, missing the consensus estimate of $8.09 by ($1.35). Lithia Motors had a return on equity of 12.76% and a net margin of 2.18%.The business had revenue of $9.20 billion during the quarter, compared to analysts’ expectations of $9.19 billion. During the same quarter in the previous year, the company posted $7.79 earnings per share. The company’s revenue was up .3% on a year-over-year basis. On average, equities research analysts anticipate that Lithia Motors will post 34.45 EPS for the current year.

Lithia Motors Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Friday, March 20th. Investors of record on Friday, March 6th were given a dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend was Friday, March 6th. Lithia Motors’s dividend payout ratio (DPR) is presently 6.85%.

Institutional Inflows and Outflows Large investors have recently bought and sold shares of the stock. Parallel Advisors LLC raised its position in shares of Lithia Motors by 26.8% during the 4th quarter. Parallel Advisors LLC now owns 156 shares of the company’s stock worth $52,000 after purchasing an additional 33 shares during the last quarter. AGP Franklin LLC grew its holdings in Lithia Motors by 0.3% during the 3rd quarter. AGP Franklin LLC now owns 10,459 shares of the company’s stock valued at $3,305,000 after buying an additional 34 shares during the last quarter. Arizona State Retirement System increased its position in Lithia Motors by 0.4% during the third quarter. Arizona State Retirement System now owns 7,702 shares of the company’s stock worth $2,434,000 after buying an additional 34 shares in the last quarter. GAMMA Investing LLC raised its holdings in shares of Lithia Motors by 9.2% in the fourth quarter. GAMMA Investing LLC now owns 403 shares of the company’s stock worth $134,000 after acquiring an additional 34 shares during the last quarter. Finally, M&T Bank Corp lifted its position in shares of Lithia Motors by 2.4% in the second quarter. M&T Bank Corp now owns 1,488 shares of the company’s stock valued at $503,000 after acquiring an additional 35 shares in the last quarter.

Wall Street Analysts Forecast Growth A number of equities analysts recently commented on the company. Citigroup reduced their price objective on Lithia Motors from $399.00 to $366.00 and set a “buy” rating on the stock in a research report on Thursday, March 5th. Bank of America assumed coverage on Lithia Motors in a report on Wednesday, March 4th. They issued a “neutral” rating for the company. Zacks Research lowered Lithia Motors from a “hold” rating to a “strong sell” rating in a report on Wednesday, March 25th. Wells Fargo & Company lowered their price target on shares of Lithia Motors from $358.00 to $355.00 and set an “equal weight” rating on the stock in a research report on Thursday, February 12th. Finally, Barclays dropped their price objective on shares of Lithia Motors from $390.00 to $380.00 and set an “overweight” rating for the company in a report on Tuesday, February 17th. Six research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $382.33.

Read Our Latest Stock Report on LAD

About Lithia Motors (Get Free Report)

Lithia Motors, Inc is an American automotive retailer headquartered in Medford, Oregon. Founded in 1946 as a small auto body and glass shop, the company has grown through organic expansion and strategic acquisitions to become one of the largest automotive retail networks in North America. Lithia operates dealerships across the United States and Canada, offering a broad portfolio of new and pre-owned vehicles from more than 40 different manufacturers.

The company’s core business activities include vehicle sales, financing, insurance, parts and service.

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The April 2026 Top 25 High Growth Dividend Stocks list targets quality companies trading below intrinsic value, averaging a 1.52% yield and 17.7% five-year dividend growth. Screened stocks appear ~34% undervalued by dividend yield theory, with an estimated +21% annualized long-term return potential. MSCI, WING, ZTS, INTU, and MSFT stand out for attractive valuations, robust dividend growth, and strong projected EPS growth.

On April 21, 2026, Lithia Motors Inc LAD shares fell 3.1% to a current price of $279.89, which is within its 52-week range of $239.78 to $360.56. This decline reflects a challenging market environment for the company, particularly as it faces a year-to-date drop of 15.6%.

GF Value™ verdict: The current price is $279.89, while GF Value™ estimates fair value at $365.83, indicating that the stock is 23.5% undervalued.GF Score™ of 89/100 suggests that LAD has strong potential for long-term returns based on key financial metrics.Notable signal: The insider activity shows that insiders sold $0.0M in the last 3 months, indicating no buying activity. Is LAD Overvalued or Undervalued? With a current price of $279.89, Lithia Motors Inc LAD appears to be undervalued when compared to its GF Value™ of $365.83, representing a margin of safety of 23.5%. This modest undervaluation presents an opportunity for potential investors, especially in light of the company's high GF Score™ of 89/100, which reflects strong fundamentals. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

However, despite the positive valuation signal, the financial strength score of 4/10 raises some concerns. This indicates that while there may be an opportunity, investors should remain cautious and consider the overall financial health of the company before making any decisions.

How Does LAD's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 8.7x 8.5x Forward P/E 8.1x N/A The current P/E (TTM) of 8.7x is slightly above its 5-year median P/E of 8.5x, suggesting that the stock is trading at a premium compared to its historical valuation. This analysis aligns with the GF Value™ verdict, as the stock's current valuation appears to be only modestly undervalued, providing a somewhat mixed signal regarding the price's attractiveness.

What Does LAD's GF Score™ Tell Us? Metric Rating GF Score™ 89/100 Financial Strength 4/10 Profitability 8/10 Growth 10/10 Valuation 8/10 Momentum 5/10 The GF Score™ of 89/100 indicates strong potential for long-term returns, with particularly high growth (10/10) and profitability (8/10) scores. However, the financial strength score of 4/10 is a significant weakness, suggesting that while the company has robust profit margins and growth prospects, it may face challenges related to its financial structure. The momentum score of 5/10 indicates mixed performance in the market, which could impact short-term investment decisions.

What Are Insiders Doing with LAD Stock? In the last three months, insiders have not engaged in any buying activity, with a total of $0.0M in insider sales reported. This lack of insider buying might suggest caution from those closest to the company, which could be interpreted as a signal for potential investors to proceed with care. The absence of significant insider transactions implies that management may not currently view the stock as undervalued enough to warrant personal investment.

What This Means for Investors Based on the assessment of GF Value™, Lithia Motors Inc LAD is currently undervalued with a price that is 23.5% below its estimated fair value. However, the relatively low financial strength score suggests that potential investors should approach with caution, weighing the growth potential against existing financial risks.

For the complete analysis, visit the Lithia Motors Inc LAD stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is LAD's GF Score™?

LAD's GF Score™ is 89/100, indicating strong potential for long-term returns based on key financial metrics.

Is LAD overvalued or undervalued?

LAD is currently undervalued, with a GF Value™ of $365.83 compared to its current price of $279.89, representing a 23.5% undervaluation.

What is LAD's P/E ratio?

LAD's P/E (TTM) is 8.7x, which is slightly above its 5-year median P/E of 8.5x, suggesting that the stock is trading at a premium relative to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Key Highlights

Record first quarter revenues of $9.3 billionUsed vehicle revenue increased 4.6% on a same store basis in the quarterUsed retail GPUs increased 9%, or $133, sequentiallyAftersales revenue increased 3.8%, gross profit increased by 5.7% and gross margin was 58.7%, a 100-basis point increase, on a same-store basisDriveway Finance Corporation achieved record originations of $840 million, with an 18.0% penetration rate and an average FICO score of 750 in the quarterFirst quarter diluted earnings per share of $4.28 and adjusted diluted earnings per share of $7.34Repurchased $259 million of shares, representing 4.0% of outstanding shares in the quarter MEDFORD, Ore., April 29, 2026 (GLOBE NEWSWIRE) -- Lithia & Driveway (NYSE: LAD), the largest global automotive retailer, today reported financial results for the first quarter of 2026.

"Our team drove strong results across our platform and sequential growth in earnings, delivering higher revenues and improved GPU in used vehicles, meaningful growth in aftersales, and growing penetration in Driveway Finance," said Bryan DeBoer, President and CEO. “Capital discipline remains a key focus, and we repurchased nearly 4% of our shares at prices well below intrinsic value. Our balance sheet and diversified platform give us a durable foundation to successfully navigate any market cycle."

First Quarter 2026 Operational Summary
First quarter 2026 revenue increased 1% to $9.3 billion from $9.2 billion in the first quarter of 2025.

First quarter 2026 diluted earnings per share attributable to LAD was $4.28, a 46% decrease from $7.94 per share reported in the first quarter of 2025. After adjusting for the unrealized loss on our investment in Pinewood Technologies Group PLC and other non-core items, adjusted diluted earnings per share attributable to LAD for the first quarter of 2026 was $7.34, a 7% decrease compared to $7.93 per share in the same period of 2025.

First quarter 2026 net income was $102.0 million, a 51.7% decrease compared to net income of $211.2 million in the first quarter of 2025. After adjusting for the unrealized loss on our investment in Pinewood Technologies Group PLC and other non-core items, adjusted net income for the first quarter 2026 was $173.3 million, an 18% decrease compared to adjusted net income of $210.9 million for the same period of 2025.

The financial measures discussed in this release include both GAAP and non-GAAP measures. See “Reconciliation of Certain Non-GAAP Measures”.

Corporate Development
Stores acquired during the first quarter are expected to generate $425 million in annualized revenues.

Balance Sheet Update
LAD ended the first quarter with approximately $1.4 billion in cash and cash equivalents, marketable securities, and availability on our revolving lines of credit.

Dividend Payment and Share Repurchases
The Board of Directors approved a dividend of $0.57 per share related to first quarter 2026 financial results. The dividend is expected to be paid on May 22, 2026 to shareholders of record on May 8, 2026.

During the first quarter of 2026, we repurchased approximately 942,000 shares at a weighted average price of $274.62. Under the current share repurchase authorization approximately $362.9 million remains available.

First Quarter Earnings Conference Call and Updated Presentation
The first quarter 2026 conference call may be accessed at 10:00 a.m. ET today by telephone at 877-407-8029. An updated presentation highlighting first quarter 2026 results has been added to our investor relations website. To listen live on our website or for replay, visit investors.lithiadriveway.com and click on Quarterly Earnings.

About Lithia & Driveway (LAD)
Lithia & Driveway (NYSE: LAD) is the largest global automotive retailer providing a wide array of products and services throughout the vehicle ownership lifecycle. Simple, convenient, and transparent experiences are offered through our comprehensive network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. We deliver consistent, profitable growth in a massive and unconsolidated industry. Our highly diversified and competitively differentiated design provides us the flexibility and scale to pursue our vision to modernize personal transportation solutions wherever, whenever and however consumers desire.

Sites
www.lithia.com
investors.lithiadriveway.com
www.lithiacareers.com
www.driveway.com
www.greencars.com
www.drivewayfinancecorp.com

Lithia & Driveway on Facebook
https://www.facebook.com/LithiaMotors
https://www.facebook.com/DrivewayHQ

Lithia & Driveway on X
https://x.com/lithiamotors
https://x.com/DrivewayHQ
https://x.com/GreenCarsHQ

Lithia & Driveway on LinkedIn
https://www.linkedin.com/company/lithia-motors/

Lithia & Driveway on YouTube
https://www.youtube.com/@Lithia_Motors/featured

Forward-Looking Statements
Certain statements in this presentation, and at times made by our officers and representatives, constitute forward-looking statements within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. Generally, you can identify forward-looking statements by terms such as “project,” “outlook,” “target,” “may,” “will,” “would,” “should,” “seek,” “expect,” “plan,” “intend,” “forecast,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “likely,” “ensure,” “goal,” “strategy,” “future,” “maintain,” and “continue” or the negative of these terms or other comparable terms. Examples of forward-looking statements in this presentation include, among others, statements regarding:

The profitability of our strategy and growthFuture market conditions, including anticipated vehicle and other sales, gross profit and inventory supplyOur business strategy and plans, including our achieving our long-term financial targetsThe growth, expansion, make-up and success of our network, including our finding accretive acquisitions that meet our target valuations and acquiring additional storesAnnualized revenues from acquired stores or achieving target returnsThe growth and performance of our Driveway e-commerce home solution and Driveway Finance Corporation (DFC), their synergies and other impacts on our business and our ability to meet Driveway and DFC-related targetsThe impact of sustainable vehicles and other market and regulatory changes on our business, including evolving vehicle distribution modelsOur capital allocations and uses and levels of capital expenditures in the futureExpected operating results, such as improved store performance, continued improvement of selling, general and administrative expenses as a percentage of gross profit and any projectionsOur anticipated financial condition and liquidity, including from our cash and the future availability of our credit facilities, unfinanced real estate and other financing sourcesOur continuing to purchase shares under our share repurchase programOur compliance with financial and restrictive covenants in our credit facilities and other debt agreementsOur programs and initiatives for team member recruitment, training, and retentionOur strategies and targets for customer retention, growth, market position, operations, financial results and risk management Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements in this presentation. Therefore, you should not rely on any of these forward-looking statements. The risks and uncertainties that could cause actual results to differ materially from estimated or projected results include, without limitation:

Future national and local economic and financial conditions, including as a result of inflation, interest rates, tariffs, governmental actions, programs and spending, and public health issuesThe market for dealerships, including the availability of stores to us for an acceptable priceChanges in customer demand, levels of consumer debt, consumer confidence and manufacturer sales incentives, and the electric vehicle landscape and the impact of evolving digital technologiesChanges in our relationship with, and the financial and operational stability of, OEMs and other suppliers, and vehicle delivery modelsChanges in the competitive landscape, including through technology and our ability to deliver new products, services and customer experiences and a portfolio of in-demand and available vehiclesRisks associated with our indebtedness, including available borrowing capacity, interest rates, compliance with financial covenants and ability to refinance or repay indebtedness on favorable termsThe adequacy of our cash flows and other conditions which may affect our ability to fund capital expenditures, obtain favorable financing and pay our quarterly dividend at planned levelsDisruptions to our technology network including computer systems, as well as natural events such as severe weather or man-made or other disruptions of our operating systems, facilities or equipmentGovernment regulations and legislationThe risks set forth throughout “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in “Part I, Item 1A. Risk Factors” of our most recent Annual Report on Form 10-K, and in “Part II, Item 1A. Risk Factors” of our Quarterly Reports on Form 10-Q, and from time to time in our other filings with the SEC. Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by law, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Non-GAAP Financial Measures
All “adjusted” financial measures in this presentation are non-GAAP financial measures, as are EBITDA and net debt. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not comparable to similarly titled measures used by other companies. We caution you not to place undue reliance on such non-GAAP measures and to consider them together with the most directly comparable GAAP measures. We present cash flows from operations in the attached tables, adjusted to include the change in non-trade floor plan debt to improve the visibility of cash flows related to vehicle financing. As required by SEC rules, we have reconciled these measures to the most directly comparable GAAP measures in the attachments to this release. We believe the non-GAAP financial measures we present improve the transparency of our disclosures; provide a meaningful presentation of our results from core business operations, because they exclude items not related to core business operations and other non-cash items; and improve the period-to-period comparability of our results from core business operations. These presentations should not be considered an alternative to GAAP measures.

LAD
Consolidated Statements of Operations (Unaudited)
(In millions except per share data)

 Three months ended
March 31,
 %  Increase  2026   2025  (Decrease)Revenues:     New vehicle$4,379.4  $4,580.4  (4.4) %Used vehicle 3,489.4   3,250.5  7.3 Finance and insurance 359.7   364.3  (1.3)Aftersales 1,042.9   983.1  6.1 Total revenues 9,271.4   9,178.3  1.0%Cost of sales:     New vehicle 4,119.8   4,287.0  (3.9)Used vehicle 3,301.7   3,061.8  7.8 Aftersales 428.2   419.1  2.2 Total cost of sales 7,849.7   7,767.9  1.1 Gross profit 1,421.7   1,410.4  0.8%      Finance operations income 21.3   12.5  70.4%      SG&A expense 1,037.4   952.7  8.9 Depreciation and amortization 69.8   63.9  9.2 Income from operations 335.8   406.3  (17.4) %Floor plan interest expense (55.9)  (57.1) (2.1)Other interest expense (70.3)  (65.5) 7.3 Other (expense) income (67.6)  0.8  NM Income before income taxes 142.0   284.5  (50.1) %Income tax expense (40.0)  (73.3) (45.4)Income tax rate 28.2%  25.8%  Net income$102.0  $211.2  (51.7) %Net income attributable to non-controlling interests (1.6)  (1.7) (5.9) %Net income attributable to LAD$100.4  $209.5  (52.1) %      Diluted earnings per share attributable to LAD:     Net income per share$4.28  $7.94  (46.1) %      Diluted shares outstanding 23.4   26.4  (11.4) % NM - not meaningful

LAD
Key Performance Metrics (Unaudited)

 Three months ended
March 31,
 %  Increase  2026   2025  (Decrease)Gross margin     New vehicle 5.9%  6.4% (50)bpsUsed vehicle 5.4   5.8  (40)Finance and insurance 100.0   100.0  — Aftersales 58.9   57.4  150 Gross profit margin 15.3   15.4  (10)      Unit sales     New vehicle 94,787   99,503  (4.7) %Used vehicle retail 110,151   107,326  2.6       Average selling price (excluding agency)     New vehicle$46,878  $47,209  (0.7) %Used vehicle retail 28,464   27,198  4.7       Average gross profit per unit     New vehicle$2,739  $2,950  (7.2) %Used vehicle retail 1,688   1,769  (4.6)Finance and insurance 1,807   1,804  0.2 Total vehicle(1) 3,938   4,093  (3.8)      Revenue mix     New vehicle 47.2%  49.9%  Used vehicle 37.6   35.4   Finance and insurance, net 3.9   4.0   Aftersales 11.3   10.7         Gross Profit Mix     New vehicle 18.3%  20.8%  Used vehicle 13.2   13.4   Finance and insurance, net 25.3   25.8   Aftersales 43.2   40.0     Adjusted As reported Three months ended
March 31, Three months ended
March 31,Other metrics2026  2025  2026  2025 SG&A as a % of revenue11.0% 10.5% 11.2% 10.4%SG&A as a % of gross profit71.5  68.2  73.0  67.5 Operating profit as a % of revenue3.8  4.3  3.6  4.4 Operating profit as a % of gross profit25.1  28.2  23.6  28.8 Pretax margin2.5  3.1  1.5  3.1 Net profit margin1.9  2.3  1.1  2.3  (1)   Includes the sales and gross profit related to new, used, and finance and insurance and unit sales for new and used retail

LAD
Same Store Operating Highlights (Unaudited)

 Three months ended
March 31,
 %  Increase  2026   2025  (Decrease)Revenues     New vehicle$4,156.8  $4,474.3  (7.1) %Used vehicle 3,302.0   3,157.4  4.6 Finance and insurance 345.2   358.7  (3.8)Aftersales 992.1   955.8  3.8 Total revenues 8,796.1   8,946.2  (1.7)      Gross profit     New vehicle$246.8  $287.8  (14.2) %Used vehicle 178.8   187.3  (4.5)Finance and insurance 345.2   358.7  (3.8)Aftersales 582.6   551.1  5.7 Total gross profit 1,353.4   1,384.9  (2.3)      Gross margin     New vehicle 5.9%  6.4% (50)bpsUsed vehicle 5.4   5.9  (50)Finance and insurance 100.0   100.0  — Aftersales 58.7   57.7  100 Gross profit margin 15.4   15.5  (10)      Unit sales     New vehicle 90,671   97,617  (7.1) %Used vehicle retail 105,541   104,961  0.6       Average selling price (excluding agency)     New vehicle$46,545  $47,018  (1.0) %Used vehicle retail 28,142   27,019  4.2       Average gross profit per unit     New vehicle$2,722  $2,949  (7.7) %Used vehicle retail 1,680   1,795  (6.4)Finance and insurance 1,813   1,812  0.1 Total vehicle(1) 3,928   4,116  (4.6) (1)   Includes the sales and gross profit related to new, used, and finance and insurance and unit sales for new and used retail

LAD
Other Highlights (Unaudited)

 Three months ended March 31, 2026Key Performance by CountryTotal Revenue Total Gross ProfitUnited States75.6% 80.9%United Kingdom21.4% 16.7%Canada3.0% 2.4%  As of March 31, December 31, March 31,Days’ Supply(1)2026 2025 2025New vehicle inventory49 54 43Used vehicle inventory47 48 44 (1)   Days’ supply in inventory is calculated using on-ground inventory unit levels and a 30-day total unit sales volumes, both at the end of each reporting period.

Selected Financing Operations Financial Information

 Three months ended March 31,($ in millions) 2026  %(1)  2025  %(1)Interest and fee income$110.5  9.0  $94.4  9.4 Interest expense (51.6) (4.2)  (48.1) (4.8)Total interest margin$58.9  4.8  $46.3  4.6 Lease income 23.9     20.5   Lease costs (20.2)    (16.8)  Lease income, net 3.7     3.7   Provision expense (26.4) (2.1)  (25.5) (2.5)Other financing operations expenses (14.9) (1.2)  (12.0) (1.2)Finance operations income$21.3    $12.5           Total average managed finance receivables$5,004.0    $4,062.1    (1)   Annualized percentage of total average managed finance receivables

LAD
Condensed Consolidated Balance Sheets (Unaudited)
(In millions)

 March 31, 2026 December 31, 2025Cash, restricted cash, and cash equivalents$421.3 $341.8Trade receivables, net 1,261.4  1,134.1Inventories, net 6,193.2  6,119.6Other current assets 275.9  262.5Total current assets$8,151.8 $7,858.0    Property and equipment, net 4,994.5  4,936.0Finance receivables, net 5,012.9  4,755.1Intangibles 5,242.0  5,254.1Other non-current assets 2,348.5  2,304.0Total assets$25,749.7 $25,107.2    Floor plan notes payable 6,284.5  5,008.9Other current liabilities 1,915.2  1,687.8Total current liabilities$8,199.7 $6,696.7    Long-term debt, less current maturities 6,448.8  7,274.9Non-recourse notes payable, less current maturities 2,565.8  2,404.2Other long-term liabilities and deferred revenue 2,125.9  2,103.0Total liabilities$19,340.2 $18,478.8    Equity 6,409.5  6,628.4Total liabilities and equity$25,749.7 $25,107.2 LAD
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)

 Three months ended March 31,Cash flows from operating activities: 2026   2025 Net income$102.0  $211.2 Adjustments to reconcile net income to net cash provided by operating activities 212.2   146.9 Changes in:   Inventories (97.2)  186.4 Finance receivables (261.2)  (179.1)Floor plan notes payable (65.5)  23.3 Other operating activities 1.3   (66.6)Net cash (used in) provided by operating activities (108.4)  322.1 Cash flows from investing activities:   Capital expenditures (97.1)  (68.7)Cash paid for acquisitions, net of cash acquired (145.3)  (84.5)Proceeds from sales of stores —   43.2 Other investing activities 1.9   (7.1)Net cash used in investing activities (240.5)  (117.1)Cash flows from financing activities:   Net borrowings on floor plan notes payable, non-trade 1,378.3   (44.0)Net borrowings on non-recourse notes payable 160.0   254.4 Net borrowings on other debt and finance lease liabilities (798.8)  (159.7)Proceeds from issuance of common stock 5.8   5.6 Repurchase of common stock (297.0)  (143.4)Dividends paid (12.8)  (13.9)Other financing activity (3.5)  (72.0)Net cash provided by (used in) financing activities 432.0   (173.0)Effect of exchange rate changes on cash and restricted cash (1.7)  0.3 Change in cash, restricted cash, and cash equivalents 81.4   32.3 Cash, restricted cash, and cash equivalents at beginning of period 391.3   445.8 Cash, restricted cash, and cash equivalents at end of period 472.7   478.1  LAD
Reconciliation of Non-GAAP Cash Flow from Operations (Unaudited)
(In millions)

 Three months ended March 31,Net cash provided by operating activities 2026   2025 As reported$(108.4) $322.1 Floor plan notes payable, non-trade, net(1) 1,378.3   (44.0)Adjust: finance receivables activity 261.2   179.1 Less: Borrowings on floor plan notes payable, non-trade associated with acquired new vehicle inventory (11.3)  (9.9)Adjusted$1,519.8  $447.3  (1)   Includes the impact of converting inventory‑secured revolvers to floorplan facilities during the quarter, increasing net floorplan borrowings and adjusted operating cash flows $1,138.3 million.

LAD
Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)
(In millions, except for per share data)

 Three Months Ended March 31, 2026 As reported Investment loss Acquisition expenses Contract buyouts Tax attribute AdjustedSelling, general and administrative$1,037.4  $—  $(0.3) $(20.3) $— $1,016.8 Operating income 335.8   —   0.3   20.3   —  356.4 Other income (expense), net (67.6)  73.3   —   —   —  5.7             Income before income taxes 142.0   73.3   0.3   20.3   —  235.9 Income tax (provision) benefit (40.0)  (18.6)  (0.1)  (5.1)  1.2  (62.6)Net income$102.0  $54.7  $0.2  $15.2  $1.2 $173.3 Net income attributable to non-controlling interests (1.6)  —   —   —   —  (1.6)Net income attributable to LAD$100.4  $54.7  $0.2  $15.2  $1.2 $171.7             Diluted earnings per share attributable to LAD$4.28  $2.34  $0.01  $0.65  $0.06 $7.34 Diluted share count 23.4             Three Months Ended March 31, 2025 As reported Net gain on disposal of stores Investment loss Insurance reserves Acquisition expenses Tax attribute AdjustedSelling, general and administrative$952.7  $9.4  $—  $(0.4) $(0.2) $—  $961.5 Operating income 406.3   (9.4)  —   0.4   0.2   —   397.5 Other income (expense), net 0.8   —   9.7   —   —   —   10.5               Income before income taxes 284.5   (9.4)  9.7   0.4   0.2   —   285.4 Income tax (provision) benefit (73.3)  2.4   (2.5)  (0.1)  —   (1.0)  (74.5)Net income$211.2  $(7.0) $7.2  $0.3  $0.2  $(1.0) $210.9 Net income attributable to non-controlling interests (1.7)  —   —   —   —   —   (1.7)Net income attributable to LAD$209.5  $(7.0) $7.2  $0.3  $0.2  $(1.0) $209.2               Diluted earnings per share attributable to LAD$7.94  $(0.25) $0.27  $0.01  $—  $(0.04) $7.93 Diluted share count 26.4              LAD
Adjusted EBITDA and Net Debt to Adjusted EBITDA (Unaudited)
(In millions)

 Three months ended
March 31,
 %  Increase  2026   2025  (Decrease)EBITDA and Adjusted EBITDA     Net income$102.0  $211.2  (51.7) %Flooring interest expense 55.9   57.1  (2.1)Other interest expense 70.3   65.5  7.3 Financing operations interest expense 51.6   48.1  7.3 Income tax expense 40.0   73.3  (45.4)Depreciation and amortization 69.8   63.9  9.2 EBITDA$389.6  $519.1  (24.9) %      Other adjustments:     Less: flooring interest expense$(55.9) $(57.1) (2.1)Less: financing operations interest expense (51.6)  (48.1) 7.3 Less: used vehicle line of credit interest (1.4)  (3.0) (53.3)Add: acquisition expenses 0.3   0.2  50.0 Add: loss (gain) on disposal of stores —   (9.4) NM Add: investment loss (gain)(1) 73.3   9.7  NM Add: insurance reserves —   0.4  NM Add: contract buyouts 20.3   —  NM Adjusted EBITDA$374.6  $411.8  (9.0) % NM - not meaningful
(1) Investment losses (gains) retrospectively included in adjusted non-GAAP financial measures presented

 As of% March 31,IncreaseNet Debt to Adjusted EBITDA 2026   2025 (Decrease)Floor plan notes payable$6,284.5  $4,904.9 28.1%Used and service loaner vehicle inventory financing facility 3.6   968.7 (99.6)Revolving lines of credit 1,738.8   1,558.3 11.6 Warehouse facilities 1,337.0   768.5 74.0 Non-recourse notes payable 2,634.0   2,363.7 11.4 4.625% Senior notes due 2027 400.0   400.0 — 3.875% Senior notes due 2029 800.0   800.0 — 5.500% Senior notes due 2030 600.0   — — 4.375% Senior notes due 2031 550.0   550.0 — Finance leases and other debt 1,156.2   1,014.6 14.0 Unamortized debt issuance costs (26.3)  (24.1)9.1 Total debt$15,477.8  $13,304.6 16.3%     Less: Inventory related debt$(6,288.1) $(5,873.6)7.1%Less: Financing operations related debt (3,971.0)  (3,132.2)26.8 Less: Unrestricted cash and cash equivalents (160.8)  (234.4)(31.4)Less: Marketable securities (55.9)  (53.7)4.1 Less: Availability on used vehicle and service loaner financing facilities (0.2)  (24.3)(99.2)Net Debt$5,001.8  $3,986.4 25.5%     TTM Adjusted EBITDA$1,629.4  $1,596.5 2.1%     Net debt to Adjusted EBITDA 3.07
x
  2.50
x
  NM - not meaningful

Image: Bigstock

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For the quarter ended March 2026, Lithia Motors (LAD - Free Report) reported revenue of $9.27 billion, up 1% over the same period last year. EPS came in at $7.34, compared to $7.66 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $9.36 billion, representing a surprise of -0.94%. The company delivered an EPS surprise of +3.91%, with the consensus EPS estimate being $7.06.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Lithia Motors performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Unit sales - New vehicle: 94,787 compared to the 95,181 average estimate based on three analysts.Unit sales - Used vehicle retail: 110,151 versus the three-analyst average estimate of 114,333.Average selling price - New vehicle: $46,878.00 versus the three-analyst average estimate of $48,386.25.Average selling price - Used vehicle retail: $28,464.00 compared to the $28,760.85 average estimate based on three analysts.Revenues- Finance and insurance: $359.7 million versus the four-analyst average estimate of $376.21 million. The reported number represents a year-over-year change of -1.3%.Revenues- Used vehicle: $3.49 billion compared to the $3.25 billion average estimate based on four analysts. The reported number represents a change of +19.5% year over year.Revenues- New vehicle: $4.38 billion versus the four-analyst average estimate of $4.59 billion. The reported number represents a year-over-year change of 0%.Revenues- Aftersales: $1.04 billion versus the four-analyst average estimate of $1.06 billion. The reported number represents a year-over-year change of +6.5%.Same Store Operating- Revenues- Finance and insurance: $345.2 million compared to the $359.12 million average estimate based on two analysts. The reported number represents a change of +0.1% year over year.Same Store Operating- Revenues- Used vehicle: $3.3 billion versus the two-analyst average estimate of $2.92 billion. The reported number represents a year-over-year change of +24.2%.Same Store Operating- Revenues- New vehicle: $4.16 billion versus the two-analyst average estimate of $4.31 billion. The reported number represents a year-over-year change of -0.2%.Same Store Operating- Revenues- Aftersales: $992.1 million versus the two-analyst average estimate of $981.41 million. The reported number represents a year-over-year change of +8.7%.View all Key Company Metrics for Lithia Motors here>>>

Shares of Lithia Motors have returned +11% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.

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Published in earnings earnings-estimates-revisions earnings-surprise

Lithia Motors, Inc. (LAD) Q1 2026 Earnings Call Transcript

May 26, 2026 05:30 ET  | Source: Lithia & Driveway

MEDFORD, Ore., May 26, 2026 (GLOBE NEWSWIRE) -- Lithia & Driveway (NYSE: LAD) announced today an increase to its share repurchase authorization of $500 million to bring the current remaining authorization to $726 million.

“Today’s increase reflects our conviction in LAD’s strategy and the regenerative cash flows of our diversified platform,” said Bryan DeBoer, President and CEO. “With our uniquely diversified strategy beginning to deliver meaningfully differentiated results, our shares present a compelling opportunity at today’s prices, and repurchases provide an attractive, value-accretive accelerator to our growth strategy and commitment to maximizing shareholder returns.”

Since March 31, 2026, LAD has invested over $137 million to repurchase approximately 505,000 shares representing 2.2% of shares outstanding, at a weighted average of $272 per share.

Year to date, LAD has invested nearly $396 million to repurchase 1.45 million shares, representing 6.2% of outstanding shares, at a weighted average price of $274 per share.

About Lithia & Driveway (LAD)
Lithia & Driveway (NYSE: LAD) is the largest global automotive retailer making Auto Done Easy by providing simple, transparent, and convenient experiences throughout the ownership lifecycle. LAD helps customers take care of any vehicle need through a comprehensive network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. Celebrating 80 years in business in 2026, LAD consistently delivers profitable growth in a massive and unconsolidated industry. Its highly diversified and competitively differentiated design provides LAD with the flexibility and scale to pursue its vision to modernize personal transportation solutions wherever, whenever and however consumers desire.

The 80th Celebration
https://www.lithiadriveway.com/80-years

Connect with Us!
All Cars: https://www.lithia.com
Driveway.com (Buy, sell, trade, or finance entirely online): https://www.driveway.com
GreenCars (All things sustainable vehicles): https://www.greencars.com
DFC (Auto Financing): https://www.drivewayfinancecorp.com
Investor Relations: https://investors.lithiadriveway.com/
Careers: https://www.lithiacareers.com
Lithia & Driveway on Instagram
https://www.instagram.com/lithiamotors/?hl=en
https://www.instagram.com/driveway_hq/
Lithia & Driveway on Facebook
https://www.facebook.com/lithiaanddriveway/
https://www.facebook.com/DrivewayHQ
Lithia & Driveway on X
https://x.com/lithiadriveway
https://x.com/DrivewayHQ
https://x.com/GreenCarsHQ
Lithia & Driveway on LinkedIn
https://www.linkedin.com/company/lithia-motors/
Lithia & Driveway on YouTube
https://www.youtube.com/@LithiaDriveway

Media Contact

[email protected] 

Forward-Looking Statements

Certain statements in this release, and at times made by our officers and representatives, constitute forward-looking statements within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. Generally, you can identify forward-looking statements by terms such as “project,” “outlook,” “target,” “may,” “will,” “would,” “should,” “seek,” “expect,” “plan,” “intend,” “forecast,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “likely,” “ensure,” “goal,” “strategy,” “future,” “maintain,” and “continue” or the negative of these terms or other comparable terms. Examples of forward-looking statements in this release include statements regarding our future financial condition, liquidity, results of operations, future business strategy and plans, and expected growth and performance.

Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements in this release. Therefore, you should not rely on any of these forward-looking statements. The risks and uncertainties that could cause actual results to differ materially from estimated or projected results include, without limitation:

Future national and local economic and financial conditions, including as a result of inflation, tariffs, governmental actions, programs and spending, and public health issuesThe market for dealerships, including the availability of stores to us for an acceptable priceChanges in customer demand and the electric vehicle landscape and the impact of evolving digital technologiesChanges in our relationship with, and the financial and operational stability of, OEMs and other suppliers, and vehicle delivery modelsChanges in the competitive landscape, including through technology and our ability to deliver new products, services and customer experiences and a portfolio of in-demand and available vehiclesRisks associated with our indebtedness, including available borrowing capacity, interest rates, compliance with financial covenants and ability to refinance or repay indebtedness on favorable termsThe adequacy of our cash flows and other conditions which may affect our ability to fund capital expenditures, obtain favorable financing and pay our quarterly dividend at planned levelsDisruptions to our technology network including computer systems, as well as natural events such as severe weather or man-made or other disruptions of our operating systems, facilities or equipmentGovernment regulations and legislationThe risks set forth throughout “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in “Part I, Item 1A. Risk Factors” of our most recent Annual Report on Form 10-K, and in “Part II, Item 1A. Risk Factors” of our Quarterly Reports on Form 10-Q, and from time to time in our other filings with the SEC. Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by law, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Favorable safety and tolerability profile, with rapid onset of clinical activity and therapeutic effects observed in patients with LADData support the start of a Phase 1b clinical trial in rheumatoid arthritis, anticipated in Q3 2026 Warsaw, Poland – June 03, 2026 – JJP Biologics, ("JJPBio" or the "Company") a clinical-stage, immune-focused biotech that engineers precision antibodies to correct derailed immune pathways that drive autoimmune diseases and cancer, today announces positive interim data from its ongoing Phase 1b trial evaluating nebaprubart, also known as JJP-1212, its investigational potential first-in-class anti-CD89 antagonist, in patients diagnosed with Linear IgA Disease (LAD), a rare autoantibody-mediated skin disease.

The interim results demonstrate encouraging safety and tolerability alongside early evidence of rapid and sustained clinical benefit, including the potential to reduce or eliminate reliance on chronically-administered immunosuppressive therapy.

Interim data demonstrates:

Favorable safety and tolerability profile observed to date, consistent with Phase I outcomes in healthy volunteers.Clinical activity with therapeutic effects observed within one week of dosing.Preliminary evidence of therapeutic activity, characterized by reductions in blister formation and pruritus, together with progressive healing of ulcerative lesions.Continued tapering of dapsone-based treatment after first dose of JJP-1212, with a sustained response after complete tapering. LAD currently has no approved therapies in the European Union. It was the first autoimmune-disease selected by JJPBio because the deposits of IgA autoantibodies in the skin are known to activate neutrophils via CD89 leading to tissue damage and widespread skin blistering that can progress to open sores affecting the mucous membranes. These visible manifestations demonstrate nebaprubart’s mechanism of action in IgA-mediated inflammation. By blocking the CD89 receptor present on neutrophils, nebaprubart interrupts this pathway at its source, restoring tissue integrity and preventing blister formation.

Paweł Szczepański, Chief Executive Officer of JJP Biologics, said: “The interim Phase 1b results in LAD, together with our previously reported Phase I data in healthy volunteers, provide early validation of our approach targeting the IgA/CD89 axis. LAD is our proof-of-mechanism showcase, and these positive interim data demonstrate the potential of nebaprubart to deliver rapid, durable responses while reducing dependence on traditionally-administered immunosuppressive agents with known toxicities. This positions nebaprubart as a potentially transformative therapy across a broad range of IgA-mediated diseases, and we look forward to commencing a Phase 1b trial of nebaprubart for rheumatoid arthritis in Q3 2026 and a Phase 2a basket study in IgA nephropathy in Q4 2026.”

Given its well-defined pathophysiology and clinically overt reflection of a visual response to treatment within days, LAD provides a clear path to clinical validation, enabling expansion into other IgA-driven diseases.

Sohail Ahmed, MD, MBA, Chief Medical Officer of JJP Biologics, added: “The consistency between the safety profile observed in healthy volunteers and the early efficacy and tolerability signals seen in LAD patients is very encouraging. Our Phase Ib trial showed predictable pharmacology and no dose-limiting toxicities, reducing clinical development risk. In LAD, the tapering or elimination of other treatments that are difficult for some patients to tolerate is highly meaningful for this patient population.”

The Phase 1b study (registered in the EU Clinical Trials Information System (CTIS) under EU Trial Number 2023-508661-33-00) is an open-label trial designed to evaluate safety and tolerability along with pharmacokinetic, immunogenicity, and exploratory efficacy measures including disease activity, blister formation, and quality of life.

The interim results in LAD follows the positive top-line Phase I trial results of nebaprubart in healthy volunteers which were announced in January 2026.

-Ends-

For further information from JJP Biologics, please contact:

JJP BiologicsPaweł Szczepanski, Chief Executive Officer / Chairman of the Management Board
[email protected]

  Media enquiries

ICR Healthcare
Namrata Taak, Chris Welsh, Jonathan Edwards
[email protected]

About JJP Biologics (JJPBio)

JJP Biologics is a clinical-stage biotech that leverages its in-depth understanding of immune pathway science in autoimmune diseases and cancer. Starting from deep mechanistic insights, JJPBio engineers antibodies that are built-to-order, designed to restore immune balance and deliver better disease control for patients with significant unmet need, because we believe that we can do better for patients.

JJPBio is the first company to generate clinical validation of the IgA/CD89 axis, establishing first-mover advantage in a disease area with broad implications across autoimmune conditions including IgA nephropathy, rheumatoid arthritis, lupus, and celiac disease. Our immuno-oncology program targets the CD270/HVEM checkpoint pathway in cancer.

Backed by the long-term, socially responsible capital of the Starak family and the Polpharma Group, JJPBio operates with the scientific freedom and financial stability to pursue mechanisms others simply cannot.

JJP Biologics: We restore. We don't deplete. We work smarter.

About nebaprubart (JJP-1212)

Nebaprubart is a first-in-class IgG4-κ CD89 antagonist that is being developed to treat a wide range of autoimmune, inflammatory, and fibrotic diseases where IgA antibodies are known to have significant pathogenic involvement (e.g., rheumatoid arthritis, systemic lupus erythematosus, idiopathic pulmonary fibrosis, dermatitis herpetiformis, inflammatory bowel disease, IgA nephropathy, and IgA vasculitis). Nebaprubart was designated an Orphan Medicinal Product in October 2022 by the European Commission for the treatment of Linear IgA Disease. An open-label trial with nebaprubart for this indication is ongoing.

Bragar Eagel & Squire, P.C. Litigation Partner Brandon Walker Encourages Investors Who Suffered Losses In Grocery Outlet (GO) To Contact Him Directly To Discuss Their Options

If you purchased or acquired Grocery Outlet securities between August 5, 2025 and March 4, 2026 and would like to discuss your legal rights, call Bragar Eagel & Squire partner Brandon Walker or Melissa Fortunato directly at (212) 355-4648.

Click here to participate in the action.

NEW YORK, May 13, 2026 (GLOBE NEWSWIRE) --

What’s Happening?

Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against Grocery Outlet Holding Corp. (“Grocery Outlet” or the “Company”) (NASDAQ:GO) in The United States District Court for the Northern District of California on behalf of all persons and entities who purchased or otherwise acquired Grocery Outlet securities between August 5, 2025 and March 4, 2026, both dates inclusive (the “Class Period”).Investors have until May 15, 2026 to apply to the Court to be appointed as lead plaintiff in the lawsuit. What are the Allegation Details?

The complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the Company had “expanded too quickly” into new stores; (2) the Company’s purportedly strong financial and operational growth was being artificially supported by excessive rapid store expansion; (3) as a result, the Company was unable to achieve the sustainable growth required to meet its previously set guidance; (4) the Company’s Restructuring Plan would require further Optimization to achieve its operational goals, including significant store closures and asset write-downs; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis. What are the Next Steps?

If you purchased or otherwise acquired Grocery Outlet shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at [email protected], telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you. About Bragar Eagel & Squire, P.C.:

Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, South Carolina, and California. The firm represents individual and institutional investors in securities,
derivative, and commercial litigation as well as individuals in consumer protection and data privacy litigation. The firm has a nationwide practice and routinely handles cases in both federal and state courts. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.

Follow us for updates on LinkedIn and Facebook, and keep up with other news by following Brandon Walker, Esq. on LinkedIn.

Contact Information:

Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
[email protected]
www.bespc.com

Grocery Outlet Holding Corp. (GO) Q1 2026 Earnings Call Transcript

New York, New York--(Newsfile Corp. - May 14, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Grocery Outlet Holding Corp. (NASDAQ: GO) and certain of its officers.

This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Grocery Outlet securities between August 5, 2025 and March 4, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/GO.

Grocery Outlet Case Details

The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose material adverse facts concerning the Company's business, operations, and prospects. Specifically, the Complaint alleges that Defendants failed to disclose that:
(1) the Company had expanded too rapidly by opening an excessive number of new stores;
(2) the Company's purported financial and operational growth was artificially supported by this accelerated store expansion;
(3) as a result, the Company was unable to achieve the sustainable growth necessary to meet its previously issued guidance; and
(4) the Company's restructuring plan would require further optimization, including significant store closures and asset write-downs, in order to achieve its operational objectives.

What's Next for Grocery Outlet Investors?

A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/GO, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Grocery Outlet you have until May 15, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.

No Cost to Grocery Outlet Investors

We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.

Why Bronstein, Gewirtz & Grossman, LLC for Grocery Outlet Securities Class Action?

Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com

"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.

Follow us for updates on LinkedIn, X, Facebook, or Instagram.

Attorney advertising.
Prior results do not guarantee similar outcomes.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/295350

Source: Bronstein, Gewirtz & Grossman, LLC

Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.

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Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In Grocery Outlet To Contact Him Directly To Discuss Their Options

If you purchased or acquired securities in Grocery Outlet between August 5, 2025 and March 4, 2026 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

[You may also click here for additional information]

, /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Grocery Outlet Holding Corp. ("Grocery Outlet" or the "Company") (NASDAQ: GO) and reminds investors of the May 15, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

James (Josh) Wilson, Faruqi & Faruqi Senior Partner (PRNewsfoto/Faruqi & Faruqi, LLP) Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the Company had "expanded too quickly" into new stores; (2) the Company's purportedly strong financial and operational growth was being artificially supported by excessive rapid store expansion; (3) as a result, the Company was unable to achieve the sustainable growth required to meet its previously set guidance; (4) the Company's Restructuring Plan would require further Optimization to achieve its operational goals, including significant store closures and asset write-downs; and (5) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On March 4, 2026, after the market closed, Grocery Outlet announced results for the fourth quarter and full fiscal year 2025, revealing the Company's full year financial results which missed guidance on nearly every major financial metric. The Company reported full year 2025 adjusted EBITDA of $254.3 million (missing prior guidance of $258 at the low end); net sales of $4.69 billion, (missing prior guidance of $4.70 billion at the low end); comparable store sales which increased by 0.5% on a 52-week basis (missing prior guidance of 0.6% to 0.9%), and diluted adjusted earnings per share of $0.76 (missing prior guidance of $0.78 at the low end). Moreover, the Company revealed it was adding an additional "optimization plan" on top of its "restructuring plan," and "reshaping [its] new store growth strategy" including the "closure of 36 financially underperforming stores." Further, the Company also "determined that the long-lived assets of the Closure Stores were impaired, and recognized $110 million of non-cash charges in Impairment of long-lived assets on the condensed consolidated statements of operations and comprehensive income (loss)." Finally, the Company stated that it estimates "between $14 million and $25 million in net total restructuring charges in fiscal 2026, including between $51 million and $63 million of estimated cash expenditures primarily for lease termination fees, and between $11 million and $14 million of bad debt expense, partially offset by net non-cash write-off of right-of-use assets and lease liabilities associated with these leases of between $(48) million and $(52) million."

On the same date, the Company held an earnings call in conjunction with releasing fourth quarter 2025 results. During the earnings call, the Company's CEO, Defendant Potter, further revealed that the Company had "made the difficult decision to close 36 locations" in part because "it's clear now that we expanded too quickly, and these closures are a direct correction."

On this news, Grocery Outlet's stock price fell $2.45, or 27.9%, to close at $6.34 per share on March 5, 2026, on unusually heavy trading volume.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.

Faruqi & Faruqi, LLP also encourages anyone with information regarding Grocery Outlet's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

To learn more about the Grocery Outlet class action, go to www.faruqilaw.com/GO or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

Follow us for updates on LinkedIn, on X, or on Facebook.

Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.

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NEW YORK--(BUSINESS WIRE)---- $GO #ClassAction--Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Grocery Outlet Holding Corp. (“Grocery Outlet” or the “Company”) (NASDAQ: GO) and reminds investors of the May 15, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company. Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georg.

Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Grocery Outlet Holding Corp. (“Grocery Outlet” or the “Company”) (NASDAQ: GO) and reminds investors of the May 15, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260515337892/en/

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the Company had “expanded too quickly” into new stores; (2) the Company’s purportedly strong financial and operational growth was being artificially supported by excessive rapid store expansion; (3) as a result, the Company was unable to achieve the sustainable growth required to meet its previously set guidance; (4) the Company’s Restructuring Plan would require further Optimization to achieve its operational goals, including significant store closures and asset write-downs; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On March 4, 2026, after the market closed, Grocery Outlet announced results for the fourth quarter and full fiscal year 2025, revealing the Company’s full year financial results which missed guidance on nearly every major financial metric. The Company reported full year 2025 adjusted EBITDA of $254.3 million (missing prior guidance of $258 at the low end); net sales of $4.69 billion, (missing prior guidance of $4.70 billion at the low end); comparable store sales which increased by 0.5% on a 52-week basis (missing prior guidance of 0.6% to 0.9%), and diluted adjusted earnings per share of $0.76 (missing prior guidance of $0.78 at the low end). Moreover, the Company revealed it was adding an additional “optimization plan” on top of its “restructuring plan,” and “reshaping [its] new store growth strategy” including the “closure of 36 financially underperforming stores.” Further, the Company also “determined that the long-lived assets of the Closure Stores were impaired, and recognized $110 million of non-cash charges in Impairment of long-lived assets on the condensed consolidated statements of operations and comprehensive income (loss).” Finally, the Company stated that it estimates “between $14 million and $25 million in net total restructuring charges in fiscal 2026, including between $51 million and $63 million of estimated cash expenditures primarily for lease termination fees, and between $11 million and $14 million of bad debt expense, partially offset by net non-cash write-off of right-of-use assets and lease liabilities associated with these leases of between $(48) million and $(52) million.”

On the same date, the Company held an earnings call in conjunction with releasing fourth quarter 2025 results. During the earnings call, the Company’s CEO, Defendant Potter, further revealed that the Company had “made the difficult decision to close 36 locations” in part because “it’s clear now that we expanded too quickly, and these closures are a direct correction.”

On this news, Grocery Outlet’s stock price fell $2.45, or 27.9%, to close at $6.34 per share on March 5, 2026, on unusually heavy trading volume.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.

Faruqi & Faruqi, LLP also encourages anyone with information regarding Grocery Outlet’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

To learn more about the Grocery Outlet class action, go to www.faruqilaw.com/GO or callFaruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

Follow us for updates on LinkedIn, on X, or on Facebook.

Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260515337892/en/

NEW YORK, May 18, 2026 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Grocery Outlet Holding Corp. (NASDAQ: GO) and certain of its officers.

This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Grocery Outlet securities between August 5, 2025 and March 4, 2026, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/GO.

Grocery Outlet Case Details

The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose material adverse facts concerning the Company’s business, operations, and prospects. Specifically, the Complaint alleges that Defendants failed to disclose that:

      (1)   the Company had expanded too rapidly by opening an excessive number of new stores;
      (2)   the Company’s purported financial and operational growth was artificially supported by this accelerated store expansion;
      (3)   as a result, the Company was unable to achieve the sustainable growth necessary to meet its previously issued guidance; and
      (4)   the Company’s restructuring plan would require further optimization, including significant store closures and asset write‑downs, in order to achieve its operational objectives.

What's Next for Grocery Outlet Investors?

A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/GO. or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Grocery Outlet you have until May 15, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.

No Cost to Grocery Outlet Investors

We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.

Why Bronstein, Gewirtz & Grossman, LLC for Grocery Outlet Securities Class Action?

Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com

"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.

Follow us for updates on LinkedIn, X, Facebook, or Instagram.

Contact Info

Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
917-590-0911 | [email protected]

Attorney advertising.
Prior results do not guarantee similar outcomes.

Key Takeaways Grocery Outlet's Q1 FY26 comps fell 1% as transactions rose 2.1% but average ticket dropped 3.1%.GO is rebuilding opportunistic closeout mix; it's up nearly 2 pts YTD, with more branded deals resonating.GO targets ~$12M annualized adj. EBITDA from closing 36 stores, alongside ~100 refreshes by year-end. Grocery Outlet Holding Corp. (GO - Free Report) is drawing shoppers back with sharper value messaging and promotions, yet comparable sales remain pressured by smaller baskets and mix headwinds.

Understanding what drives traffic, ticket, and margins comes down to how GO sources product, how stores are run locally, and how quickly execution initiatives translate into better basket economics.

GO’s Treasure-Hunt Model and Why It WinsGO’s “treasure hunt” model starts with extreme-value pricing in a small-box store format, typically about 14,000 to 18,000 square feet. The concept is designed to feel easy to shop while still offering surprise and discovery through a curated, fast-changing assortment.

The savings engine is opportunistic sourcing. GO buys discounted merchandise tied to order cancellations, manufacturer overruns, packaging changes, and product nearing “sell-by” dates. Those discounted closeouts appear as rotating “WOW!” deals that refresh the trip and reinforce the value perception that shoppers expect from the banner.

Management has clearly framed the model’s advantage: a typical basket is priced meaningfully below conventional grocers and leading discounters, with the best deals offering large savings compared with conventional retailers. That combination of everyday staples plus rotating WOW! deals is what support traffic and repeat visits.

Grocery Outlet’s IO Structure Powers Local ExecutionA defining feature of GO is its Independent Operator (IO) structure. Each store is run by an Entrepreneurial Independent Operator under an Operator Agreement, which grants the IO meaningful authority over store-level execution. That includes merchandising and product selection, inventory management, local marketing, hiring and training, and day-to-day operations.

This decentralization is not just a cultural choice. It is a mechanical advantage for a business that relies on localized assortments and fast turns. IO autonomy helps stores tailor what they sell and how they present it to the customers walking through that specific door.

The incentive system matters too. GO shares store-level gross profits with Independent Operators, aligning motivation around selling through the mix, keeping the store shoppable, and engaging customers consistently. When the value story is clear and the deal flow is strong, the model can compound through higher trip frequency and stronger baskets.

GO’s Product Mix Shift Is the Key VariableThe biggest swing factor in GO’s current performance is the opportunistic product mix. Opportunistically sourced products account for a substantial portion of the purchasing mix and are central to the WOW! deal promise that differentiates the chain.

Management has emphasized rebuilding that mix. In the first quarter of fiscal 2026, the company pointed to progress, with an opportunistic mix rising by nearly 2 percentage points since the start of the year, and noted that higher-value branded deals are resonating with customers.

When the opportunistic mix is not where it needs to be, the basket can soften. The business can still bring shoppers into stores, but a less compelling deal flow can reduce units per trip and dampen wallet share, making it harder to convert traffic gains into positive comparable sales.

Grocery Outlet’s Comps: Traffic Up, Basket DownGO’s comparable-store sales picture is best explained by the math. In the first quarter, comparable sales declined 1% even as transactions increased 2.1%, because average transaction size fell 3.1%.

Management directly tied the ticket pressure to lower units per transaction and a reduced mix of opportunistic products. In other words, more shoppers are coming through the doors, but they are leaving with fewer items.

That pattern is also why the near-term cadence still looks uneven. Even with sequential traffic improvement, comps can stay negative if basket size does not recover alongside mix restoration. That is the critical bridge from traffic-led stabilization to healthier earnings leverage.

Image Source: Zacks Investment Research

GO’s Promotions Help Traffic but Squeeze MarginsTo strengthen value perception and keep traffic moving in the right direction, GO has leaned into heavier promotions. Management has committed to sizable synthetic promotional support during fiscal 2026 to help bridge the opportunistic supply gap.

The trade-off is margin. In the first quarter, gross margin declined year over year, with part of the pressure tied to restructuring-related inventory markdowns and write-offs, and the rest linked to deliberate promotions used to support traffic and value perception.

This is where competitive intensity matters. Larger rivals like Walmart Inc. (WMT - Free Report) and Costco Wholesale Corporation (COST - Free Report) have the resources, brand recognition, and broad assortments that can intensify price competition, raising the bar for GO to defend its value message without giving up too much margin.

Grocery Outlet’s Store Actions: Refreshes and ClosuresBeyond pricing, GO is trying to improve the in-store experience. The store refresh program is designed to improve layout, signage, and merchandising clarity, make stores easier to shop, improve in-stock consistency, and communicate savings more clearly. Management completed 34 refreshes in the first quarter and expects about 100 by year-end, with early feedback described as positive.

At the same time, the company is upgrading the store base through an Optimization Plan. GO is closing 36 underperforming stores, completing 27 closures in the first quarter and the remaining nine in April, with an expected $12 million of annualized adjusted EBITDA improvement once the actions are completed.

Taken together, refreshes aim to lift productivity in the core fleet, while closures are intended to improve earnings quality by pruning weaker assets and concentrating resources on better-return locations.

What to Watch Next for GO’s Sales RecoveryWith transactions improving but ticket down, a sustained recovery requires units per trip to stabilize and the average transaction size to stop falling.

Second, monitor opportunistic mix restoration. Management’s progress on rebuilding the mix has been measurable, and continued improvement should help strengthen the WOW! deal promise that supports both traffic and basket.

Third, watch the pace and effectiveness of refreshes and whether in-stock consistency gains translate into better conversion. Finally, follow whether promotional intensity can normalize as the opportunistic supply gap narrows, helping comps stabilize without prolonging gross margin pressure. Currently, the stock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways GO trades at 15.29x forward P/E, below the industry's 17.07, after shares fell 16.3% YTD.GO saw transactions rise 2.1%, but comps fell 1% as average transaction size dropped 3.1%.Grocery Outlet is closing 36 stores and expects about $12M annualized adjusted EBITDA improvement. Grocery Outlet Holding Corp. (GO - Free Report) is trading at a discounted valuation despite efforts to stabilize sales and improve profitability. The investment case hinges on whether the company can convert improving traffic trends, store optimization efforts, and a rebuilding opportunistic product mix into a sustainable earnings recovery.

The setup is attractive on price, but the next leg depends on execution. It is about whether near-term pressure on comparable sales, baskets, and margins can ease fast enough to support a cleaner recovery.

GO’s Neutral Setup: Upside Levers vs. Execution RiskGrocery Outlet’s differentiated model is still a clear draw. Opportunistic sourcing, deep discounts on rotating “WOW!” deals, and an Independent Operator structure support a compelling customer value proposition and localized execution.

Management is also pushing initiatives that can improve consistency over time. Merchandising upgrades and store refreshes are designed to strengthen engagement and drive trip frequency.

The trade-off is that near-term results remain uneven. Comparable sales are still negative, basket size is soft, promotional intensity is elevated, and operating costs are rising. Those factors have kept pressure on margins and made the recovery look gradual rather than immediate.

Image Source: Zacks Investment Research

Grocery Outlet’s Earnings Bridge: What Must ImproveThe latest quarter highlighted the checklist investors should watch. Comparable-store sales fell 1%, reflecting a 3.1% decline in average transaction size that more than offset a 2.1% increase in transactions. That mix signals improving traffic, but a basket that still needs rebuilding. 

Margins are the next swing factor. Gross margin was 29.6%, down 80 basis points year over year, with part of the decline tied to markdowns and write-offs connected to optimization actions and the rest pressured by promotions used to bridge gaps in opportunistic supply.

Finally, expense leverage has to return for adjusted EBITDA to recover. Selling, general and administrative expenses rose to 29.8% of sales, and adjusted EBITDA fell to $43.1 million, with margin down to 3.7%. Management’s outlook keeps the near-term bar clear: second-quarter comparable sales are expected to decline 1.5% to 2%, while adjusted EBITDA is projected at $55 million to $58 million.

Image Source: Zacks Investment Research

GO’s Optimization Plan Aims To Lift EBITDA QualityA key element of the strategy is pruning weaker assets. Grocery Outlet is closing 36 underperforming stores, with 27 closures completed in the first quarter and the remaining nine completed in April.

Management expects these optimization and restructuring actions to produce about $12 million of annualized adjusted EBITDA improvement once completed. The goal is a cleaner fleet mix with less operational drag and more resources concentrated in higher-return locations.

This matters because it links portfolio actions directly to earnings quality. If the company can remove low-return stores while tightening underwriting for new units, the path to more stable profitability becomes clearer.

Grocery Outlet’s Expansion Gets More DisciplinedExpansion is shifting toward returns-focused growth. Management is applying more rigorous site selection, higher return thresholds, and clustered expansion in core markets to improve supply chain efficiency, brand awareness, and operating leverage.

New store underwriting standards are also rising. The company is targeting stores capable of generating returns above 25%, with an ambition to approach 30% over time, and it is prioritizing higher-volume locations with stronger long-term economics.

For the current fiscal year, the plan calls for 30-33 net new store openings, excluding closures tied to optimization actions. That approach is meant to balance growth with profitability and reduce the risk of adding lower-quality units.

GO Valuation ContextThe valuation case starts with what has already been discounted. GO shares are down 16.3% year to date, lagging both the Zacks Consumer Staples sector and the broader market. 
 

Image Source: Zacks Investment Research

From a valuation standpoint, Grocery Outlet’s forward 12-month price-to-earnings ratio stands at 15.29, lower than the industry’s ratio of 17.07. It is also trading below its 12-month median level of 19.04, suggesting investors have yet to fully price in the company’s recovery potential.

In practical terms, the multiple has room to expand if comparable sales stabilize, margins stop sliding, and adjusted EBITDA begins to rebuild on cleaner fundamentals.

Image Source: Zacks Investment Research

A Practical Playbook for GO InvestorsFor now, the stock carries a Zacks Rank #3 (Hold), which supports a “monitor” posture while investors track whether the company can convert traffic gains into healthier baskets and better profit flow-through. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Signals that fundamentals are improving would include a better comparable-sales trajectory than current guidance, a stabilization in average transaction size, and evidence that margin pressure is easing as promotions normalize. Delivery of the expected annualized adjusted EBITDA uplift from optimization actions would also reinforce the earnings-quality angle.

What would undermine the thesis is a prolonged basket decline, margin pressure that lasts longer than expected, or a weaker comparable-sales trend that keeps leverage out of the model. Competition remains intense, with larger players such as Walmart Inc. (WMT - Free Report) and Costco Wholesale Corporation (COST - Free Report) able to pressure pricing and promotional activity, which can make GO’s margin stabilization harder to achieve.