AUTOCANADA ANNOUNCES THIRD QUARTER RESULTS

AUTOCANADA ANNOUNCES THIRD QUARTER RESULTS Canada NewsWire EDMONTON, AB, Nov. 13, 2025 Revenue from continuing operations was $1,201.5 million as compared to $1,412.5 million in the prior year, a decrease of $211.0 million Net income for the period from total operations was $16.8 million as compared to $7.1 million in the prior year Net (loss) income from continuing operations was $(2.9) million as compared to $27.2 million in the prior year Net income (loss) from discontinued operations was $19.7 million as compared to net loss of $(20.1) million in the prior year Diluted net (loss) income per share from continuing operations of $(0.14) as compared to $1.09 in the prior year Adjusted EBITDA from total operations was $52.3 million as compared to $53.2 million in the prior year Adjusted EBITDA from continuing operations was $58.1 million as compared to $63.1 million in the prior year Adjusted EBITDA from discontinued operations was $(5.8) million as compared to $(9.9) million in the prior year Total Net Funded Debt to Bank EBITDA Ratio decreased from 3.42x as at June 30, 2025 to 3.40x as at September 30, 2025 EDMONTON, AB, Nov. 13, 2025 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX: ACQ), a multi-location North American automobile dealership group, today reported its financial results for the three-month period ended September 30, 2025. Samuel Cochrane, Interim CEO, stated, "This quarter reflects a period of transition as we work to complete the most significant cost transformation in AutoCanada's history. While top-line performance was softer, our cost reduction initiatives remain firmly on track and are building the structural efficiencies required to position the Company for sustained, profitable growth. We remain focused on executing the remaining elements of the transformation plan introduced earlier this year, ensuring that our platform is leaner, more efficient, and built for long-term success. At the same time, we are beginning to look ahead to the next phase of our journey, improving performance, rebuilding momentum, and pursuing disciplined, profitable growth. In the near term, our priorities will include expanding our collision operations and strengthening the performance of our dealership network under the new ACX framework, which is designed to drive consistent, profitable volume growth across our business. I'm honored to step into the role of Interim CEO at such a pivotal moment. AutoCanada now has a solid foundation and a clear strategy. Our focus is on execution; running the business well, capturing the benefits of the transformation, and delivering value to our customers, employees, and shareholders. I want to extend my sincere gratitude to our employees across Canada for their commitment and resilience throughout this transformation, and to our OEM partners for their continued collaboration and support. Together, we've built a stronger, more agile organization. Now, as we move into this next chapter, our focus turns to growth - capturing new opportunities, deepening customer relationships, and demonstrating what AutoCanada can achieve with its revitalized platform. I'm excited for what lies ahead and confident in our team's ability to deliver." 1 See "NON-GAAP AND OTHER FINANCIAL MEASURES" below. 2 This press release contains "SUPPLEMENTARY FINANCIAL MEASURES" and "FINANCIAL COVENANTS". Section 13. NON-GAAP AND OTHER FINANCIAL MEASURES and Section 6. LIQUIDITY AND CAPITAL RESOURCES of the Company's Management's Discussion & Analysis for the three-month period and nine-month period ended September 30, 2025 ("MD&A") is hereby incorporated by reference for further information regarding the composition of these measures and financial covenants (accessible through the SEDAR website at www.sedarplus.ca). Third Quarter Key Highlights and Recent Developments Three-Months Ended September 30 Continuing Operations Financial Results 2025 2024  Revised 3 % Change Revenue 1,201,457 1,412,525 (14.9) % Same store revenue 1,200,161 1,369,586 (12.4) % Gross profit 187,411 240,988 (22.2) % Gross profit percentage 2 15.6 % 17.1 % (1.5) ppts Operating expenses ("Opex") 161,807 180,274 (10.2) % Net (loss) income (2,901) 27,159 (110.7) % Basic net (loss) income per share attributable to AutoCanada shareholders (0.15) 1.13 (113.3) % Diluted net (loss) income per share attributable to AutoCanada shareholders (0.14) 1.09 (112.8) % Adjusted EBITDA 1 58,091 63,103 (7.9) % Adjusted EBITDA margin 1 4.8 % 4.5 % 0.3 ppts   New retail vehicles sold (units) 2 7,898 9,599 (17.7) %   Used retail vehicles sold (units) 2 10,048 13,279 (24.3) % New vehicle gross profit per retail unit 2 4,183 4,607 (9.2) % Used vehicle gross profit per retail unit 2 735 1,767 (58.4) % Parts and service ("P&S") gross profit 67,596 77,164 (12.4) % Collision repair ("Collision") gross profit 17,334 17,527 (1.1) % Finance, insurance and other ("F&I") gross profit per retail unit average 2 3,346 3,301 1.3 % Operating expenses before depreciation 2 148,806 166,565 (10.7) % Operating expenses before depreciation as a % of gross profit 2 79.4 % 69.1 % 10.3 ppts   Normalized opex before depreciation 1 126,288 164,956 (23.4) %   Normalized opex before depreciation as a % of gross profit 1 67.4 % 68.4 % (1.0) ppts Floorplan financing expense 8,871 15,923 (44.3) % 3  Comparative period revised to reflect current period presentation for reclassification of discontinued operations. Revenue decreased by (14.9)% in the third quarter of 2025 compared to the third quarter of 2024, primarily due to decreases in new vehicle sales, used vehicle sales, parts and service and F&I. This decline is partially offset by an increase in revenue from collision repair services. Gross profit decreased by (22.2)% to $187.4 million in the third quarter of 2025 compared to the third quarter of 2024, driven by decreases in new vehicle, used vehicle, parts and service, collision repair services and F&I gross profits. Key factors contributing to the decrease in gross profit include the impact of lower overall total retail1 unit volumes from both new and used during the quarter, and lower new and used vehicle gross profit per retail unit. Operating expenses before depreciation decreased by (10.7)% to $148.8 million in the third quarter of 2025 compared to the third quarter of 2024. Normalized operating expenses before depreciation decreased by (23.4)% to $126.3 million, and included the normalization of $17.6 million of restructuring charges related to the ongoing initiatives targeting $115.0 million in annual run-rate cost savings by the end of 2025. Floorplan financing expenses decreased (44.3)% to $8.9 million due to reduced new and used vehicle inventory levels and lower interest rates. Inventory management has been a focus in conjunction with the implementation of the ACX Operating Method. Net (loss) income for the period decreased by (110.7)% to $(2.9) million in the third quarter of 2025 compared to the third quarter of 2024, as a result of items noted above, partially offset by lower income taxes. Adjusted EBITDA decreased by (7.9)% to $58.1 million in the third quarter of 2025 compared to the third quarter of 2024, while adjusted EBITDA margin increased by 0.3 ppts to 4.8%. The increase in margin was driven by lower operating expenses before depreciation and lower floorplan financing expenses as noted above, partially offset by decreases in gross profit. Collision Operations Highlights Three-Months Ended September 30 Collision Financial Results 2025 2024 % Change Revenue 37,519 31,487 19.2 % Gross profit 17,334 17,527 (1.1) %   Gross profit percentage 2 46.2 % 55.7 % (9.5) ppts Adjusted EBITDA 1 4,774 4,865 (1.9) %   Same store revenue 2 36,227 31,487 15.1 %   Same store gross profit 2 17,016 17,527 (2.9) %   Same store gross profit percentage 2 47.0 % 55.7 % (8.7) ppts Revenue increased as a result of strong customer demand, additional Original Equipment Manufacturer ("OEM") certifications, increased insurance referrals and increased paintless dent repair. Gross profit and gross profit percentage decreased due to an increase in paintless dent repair which has a lower margin profile than traditional collision repair. Trends in the same store revenue, gross profit and gross profit percentage are consistent with overall business performance, with the reasons noted above. Adjusted EBITDA decreased as a result of a higher mix of paintless dent repair which drove revenue growth and led to gross profit and gross profit percentage decreases described above. Other Recent Developments During the quarter: On July 11, 2025, the Company announced that Paul Antony will transition from his role as Executive Chair. The Board of Directors has begun a search for a Chief Executive Officer. On July 16, 2025, the Company announced that it has entered into definitive agreements to sell 13 franchised dealerships in its U.S. Operations segment for expected aggregate proceeds of approximately $82.7 million which includes approximately $6.4 million for real estate. The transactions are subject to customary closing conditions, including OEM approvals, and are anticipated to close within the next six months. On July 21, 2025, the Company announced that it has selected CarGurus as its preferred partner in Canada supporting digital marketing efforts. On July 29, 2025, the Company sold substantially all of the operating assets of Crystal Lake Chrysler Dodge Jeep Ram, located in Crystal Lake, Illinois, for cash consideration of $11.9 million plus closing adjustments. Crystal Lake Chrysler Dodge Jeep Ram was presented as held for sale in the U.S. Operations segment as at June 30, 2025. On August 13, 2025, the Company announced the appointment of Felix-Etienne Lebel to the Board of Directors. On August 20, 2025, the Company sold substantially all of the operating assets of Chevrolet of Palatine and Hyundai of Palatine, located in Palatine, Illinois, for cash consideration of $12.0 million plus closing adjustments. Chevrolet of Palatine and Hyundai of Palatine were previously presented as held for sale in the U.S. Operations segment. On August 26, 2025, the Company sold substantially all of the operating assets of North City Honda, located in Chicago, Illinois, for cash consideration of $19.8 million plus closing adjustments. North City Honda was previously presented as held for sale in the U.S. Operations segment. On September 22, 2025, S&P Global Ratings ("S&P"), an independent credit rating agency, revised our outlook from 'Negative' to 'Stable'. After the quarter: On October 6, 2025, the Company completed the acquisition of Doug's Place Strathcona, a collision and refinish repair facility located in Edmonton, Alberta, which is included within the Canadian Operations segment. On October 28, 2025, the Company announced the appointment of AutoCanada's Chief Financial Officer to the role of Interim Chief Executive Officer. Concurrently, the Executive Chair transitioned out of his role as AutoCanada's Executive Chair and as a director of the Company. In addition, the Company's Chief Strategy Officer & General Counsel will be transitioning out of his respective roles later this year. On November 13, 2025, the Company announced that AutoCanada's Chief Operating Officer and President, North American Operations will be transitioning out of their respective roles. Conference Call A conference call to discuss the results for the three months ended September 30, 2025 will be held on November 13, 2025 at 4:00 pm Mountain (6:00 pm Eastern). To participate in the conference call, please dial 1-888-510-2154 approximately 10 minutes prior to the call. This conference call will also be webcast live over the internet and can be accessed by all interested parties at the following URL: https://investors.autocan.ca/2025-q3-conference-call/. MD&A and Financial Statements Information included in this press release is a summary of results. It should be read in conjunction with AutoCanada's Interim Consolidated Financial Statements ("Interim Financial Statements") and Management's Discussion and Analysis ("MD&A") for the three-month period and nine-month period ended September 30, 2025, which can be found on the Company's website at www.autocan.ca or on www.sedarplus.ca. All comparisons presented in this press release are between the three-month period ended September 30, 2025 and the three-month period ended September 30, 2024, unless otherwise indicated. Results are reported in Canadian dollars and have been rounded to the nearest thousand dollars, unless otherwise stated. 1 See "NON-GAAP AND OTHER FINANCIAL MEASURES" below. 2 This press release contains "SUPPLEMENTARY FINANCIAL MEASURES" and "FINANCIAL COVENANTS". Section 13. NON-GAAP AND OTHER FINANCIAL MEASURES and Section 6. LIQUIDITY AND CAPITAL RESOURCES of the Company's Management's Discussion & Analysis for the three-month period and nine-month period ended September 30, 2025 ("MD&A") is hereby incorporated by reference for further information regarding the composition of these measures and financial covenants (accessible through the SEDAR website at www.sedarplus.ca). Condensed Interim Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (in thousands of Canadian dollars except for share and per share amounts) Three-month period ended Nine-month period ended September 30, 2025 $ September 30, 2024 $ September 30, 2025 $ September 30, 2024 Revised 1 $ Continuing operations     Revenue (Note 6) 1,201,457 1,412,525 3,779,756 4,005,712     Cost of sales (Note 7) (1,014,046) (1,171,537) (3,168,942) (3,346,389) Gross profit 187,411 240,988 610,814 659,323    Operating expenses (Note 8) (161,807) (180,274) (507,420) (541,733) Operating profit before other income and expense 25,604 60,714 103,394 117,590 Lease and other income, net 2,510 2,973 6,403 6,558    (Loss) gain on disposal of assets, net (106) 1,876 13,809 24,502 Net impairment gain (losses) on trade and other receivables 161 (462) (1,145) (2,062)    Impairment of non-financial assets (Note 17) (4,015) (582) (6,395) (7,782) Operating profit 24,154 64,519 116,066 138,806 Finance costs (Note 9) (25,970) (35,848) (79,758) (96,124) Finance income (Note 9) 236 1,497 968 2,283 (Loss) gain on redemption liabilities (171) 1,269 970 627 Other (losses) gains, net (2,353) 69 (3,617) 417 (Loss) income for the period before taxation from continuing operations (4,104) 31,506 34,629 46,009 Income tax (recovery) expense (Note 10) (1,203) 4,347 8,912 6,862 Net (loss) income for the period from continuing operations (2,901) 27,159 25,717 39,147 Net income (loss) for the period from discontinued operations 19,668 (20,106) 6,777 (67,529) Net income (loss) for the period 16,767 7,053 32,494 (28,382) Other comprehensive (loss) income Items that may be reclassified to profit or loss Foreign operations currency translation 1,719 (552) (5,143) 2,407 Change in fair value of hedging instruments (Note 21) — — — (206) Reclassification of cumulative foreign operations currency translation on discontinued operations (Note 15) (4,946) — (4,946) — Income tax relating to these items (Note 10) — — (1,226) 51 Other comprehensive (loss) income for the period (3,227) (552) (11,315) 2,252 Comprehensive income (loss) for the period 13,540 6,501 21,179 (26,130) Net income (loss) for the period attributable to: AutoCanada shareholders 16,102 5,992 29,635 (30,697) Non-controlling interests 665 1,061 2,859 2,315 16,767 7,053 32,494 (28,382) Net income (loss) for the period attributable to AutoCanada shareholders arises from: Continuing operations (3,566) 26,098 22,858 36,832 Discontinued operations 19,668 (20,106) 6,777 (67,529) 16,102 5,992 29,635 (30,697) Comprehensive income (loss) for the period attributable to: AutoCanada shareholders 12,875 5,440 18,320 (28,445) Non-controlling interests 665 1,061 2,859 2,315 13,540 6,501 21,179 (26,130) Comprehensive loss for the period attributable to Continuing operations (2,074) 26,098 16,599 36,677 Discontinued operations 14,949 (20,658) 1,721 (65,122) 12,875 5,440 18,320 (28,445)   Three-month period ended Nine-month period ended September 30, 2025 $ September 30, 2024 Revised 1 $ September 30, 2025 $ September 30, 2024 Revised 1 $ Net income (loss) per share attributable to AutoCanada shareholders: Basic from continuing operations (0.15) 1.13 0.99 1.58 Basic from discontinued operations 0.85 (0.87) 0.29 (2.89) Basic 0.70 0.26 1.28 (1.31) Diluted from continuing operations (0.14) 1.09 0.94 1.58 Diluted from discontinued operations 0.80 (0.84) 0.28 (2.89) Diluted 0.66 0.25 1.22 (1.31) Weighted average shares Basic (Note 23) 23,089,896 23,167,774 23,125,643 23,374,538 Diluted (Note 23) 24,643,822 23,835,049 24,399,510 23,374,538 1 Comparative period revised to reflect current period presentation. See Note 15 - "Discontinued Operations" for additional information The accompanying notes are an integral part of these condensed interim consolidated financial statements and can be found on the Company's website at www.autocan.ca or on www.sedarplus.ca.  Condensed Interim Consolidated Statements of Financial Position (Unaudited) (in thousands of Canadian dollars) September 30, 2025 (Unaudited) $ December 31, 2024 $ ASSETS Current assets Cash 91,890 67,343 Trade and other receivables (Note 12) 178,284 173,568 Inventories (Note 13) 836,756 947,278 Current tax recoverable 16,430 10,205 Other current assets (Note 18) 15,945 11,993 Derivative financial instrument (Note 21) — 376 1,139,305 1,210,763 Assets held for sale (Note 14) 218,186 332,693 Total current assets 1,357,491 1,543,456    Property and equipment (Note 16) 297,716 312,014    Right-of-use assets 342,319 389,958    Other long-term assets (Note 18) 12,483 16,501 Deferred income tax 12,154 18,840 Intangible assets 612,616 630,467 Goodwill 90,059 94,592 Total assets 2,724,838 3,005,828 LIABILITIES Current liabilities Trade and other payables (Note 19) 181,561 177,473 Revolving floorplan facilities (Note 20) 904,936 1,010,579 Current tax payable — 3,766 Vehicle repurchase obligations 2,825 3,705 Indebtedness (Note 20) 1,688 24,108 Lease liabilities 25,496 35,780 Redemption liabilities 22,095 23,066    Other liabilities (Note 21) 19,877 11,063 Derivative financial instruments (Note 21) 495 1,741 1,158,973 1,291,281 Liabilities directly associated with assets held for sale (Note 14) 85,108 201,966 Total current liabilities 1,244,081 1,493,247    Long-term indebtedness (Note 20) 504,177 517,543    Long-term lease liabilities 386,687 421,392    Long-term redemption liabilities 25,000 25,000    Derivative financial instruments (Note 21) 10,193 8,705 Deferred income tax 48,057 44,613 Total liabilities 2,218,195 2,510,500 EQUITY Attributable to AutoCanada shareholders 484,251 468,027 Attributable to non-controlling interests 22,392 27,301 Total equity 506,643 495,328 2,724,838 3,005,828 The accompanying notes are an integral part of these condensed interim consolidated financial statements and can be found on the Company's website at www.autocan.ca or on www.sedarplus.ca. Condensed Interim Consolidated Statements of Cash Flows (Unaudited) (in thousands of Canadian dollars) Three-month period ended Nine-month period ended September 30, 2025 $ September 30, 2024 $ September 30, 2025 $ September 30, 2024 $ Cash provided by (used in): Operating activities Net income (loss) for the period 16,767 7,053 32,494 (28,382) Adjustments for: Income tax (recovery) expense (Note 10) (1,203) 4,365 8,912 20,466 Finance costs (Note 9, 15) 29,455 42,768 92,209 116,110 Depreciation of right-of-use assets (Note 8) 7,964 9,013 24,383 26,375 Depreciation of property and equipment (Note 8) 4,831 6,428 15,488 19,074 Amortization of intangible assets (Note 8) 206 126 454 377 (Gain) loss on disposal of assets, net (7,411) 197 (21,089) (22,429) Share-based compensation (Note 22) 4,241 1,873 8,224 6,274 Unrealized fair value changes on foreign exchange forward contracts (Note 21) 897 (112) (1,246) 2,079 Loss (gain) on redemption liabilities 171 (1,269) (970) (627) (Recovery) impairment of non-financial assets (Note 15, 17) (8,346) 597 (2,597) 19,106 Net change in non-cash working capital (Note 26) (38,697) (44,809) (39,136) 954 8,875 26,230 117,126 159,377 Income taxes recovered (paid) 293 19,043 (8,758) 2,494 Interest paid 1 (33,223) (42,140) (93,910) (114,095) Settlement of share-based awards, net (500) (167) (729) (1,247) (24,555) 2,966 13,729 46,529 Investing activities Business acquisitions, net of cash acquired — — — (20,197)    Purchases of property and equipment (4,078) (5,710) (14,221) (25,731) Purchases of intangible assets (172) (70) (300) (742) Adjustments to prior year business acquisitions — (1) (46) (506) Proceeds on sale of property and equipment 7,369 2,295 8,474 53,923 Proceeds on divestiture of dealership (Note 27) 40,857 33,211 44,148 33,211 Proceeds on termination of loan agreement with subsidiary (Note 27) — — 30,107 — Proceeds on franchise termination (Note 27) — — 894 — 43,976 29,725 69,056 39,958 Financing activities Proceeds from indebtedness 189,966 142,058 575,721 495,071 Repayment of indebtedness (186,824) (133,823) (615,329) (490,228) Repurchase of common shares under Normal Course Issuer Bid — (2,220) — (9,942) Shares settled from treasury, net (Note 23) (1,211) 185 (1,023) 4 Payments for purchase of Used Digital Division minority interest — — — (22,500) Dividends paid to non-controlling interests — — (6,791) (4,294) Repayment of loans by non-controlling interests — 725 — 2,961 Acquisition of non-controlling interests — (5,499) (1,010) (5,499) Principal portion of lease payments, net (6,805) (7,499) (25,020) (23,253) (4,874) (6,073) (73,452) (57,680) Effect of exchange rate changes on cash (1,525) (16) 356 847 Net increase in cash 13,022 26,602 9,689 29,654 Cash at beginning of period per balance sheet 62,409 106,198 67,343 103,146 Cash at beginning of period included in assets held for sale related to discontinued operations (Note 15) 41,606 — 40,005 — Cash at end of period 117,037 132,800 117,037 132,800 Included in cash per balance sheet 91,890 132,800 91,890 132,800 Included in the assets held for sale of the discontinued operations (Note 15) 25,147 — 25,147 — The accompanying notes are an integral part of these condensed interim consolidated financial statements and can be found on the Company's website at www.autocan.ca or on www.sedarplus.ca. NON-GAAP AND OTHER FINANCIAL MEASURES This press release contains certain financial measures that do not have any standardized meaning prescribed by GAAP. Therefore, these financial measures may not be comparable to similar measures presented by other issuers. Investors are cautioned these measures should not be construed as an alternative to net income (loss) or to cash provided by (used in) operating, investing, financing activities, cash, and indebtedness determined in accordance with GAAP, as indicators of our performance. We provide these additional non-GAAP measures ("Non-GAAP Measures"), capital management measures, and supplementary financial measures to assist investors in determining the Company's ability to generate earnings and cash provided by (used in) operating activities and to provide additional information on how these cash resources are used. Adjusted EBITDA, adjusted EBITDA margin, normalized operating expenses before depreciation, and normalized operating expenses before depreciation as a percentage of gross profit are not earnings measures recognized by GAAP and do not have standardized meanings prescribed by GAAP. Investors are cautioned that these Non-GAAP Measures should not replace net earnings or loss (as determined in accordance with GAAP) as an indicator of the Company's performance, cash flows from operating, investing and financing activities or as a measure of liquidity and cash flows. The Company's methods of calculating referenced Non-GAAP Measures may differ from the methods used by other issuers. Therefore, these measures may not be comparable to similar measures presented by other issuers. We list and define these "NON-GAAP MEASURES" below: Adjusted EBITDA Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is an indicator of a company's operating performance over a period of time and ability to incur and service debt. Adjusted EBITDA provides an indication of the results generated by our principal business activities prior to: Interest expense (other than interest expense on floorplan financing), income taxes, depreciation, and amortization; Charges that introduce volatility unrelated to operating performance by virtue of the impact of external factors (such as share-based compensation amounts attributed to certain equity issuances as part of the Used Digital Division); Non-cash charges (such as impairment, recoveries, gains or losses on derivatives, revaluation of contingent consideration and revaluation of redemption liabilities); Charges outside the normal course of business (such as restructuring, gains and losses on dealership divestitures, and real estate transactions); and Charges that are non-recurring in nature (such as resolution of lawsuits and legal claims, and share-based compensation amounts attributable to certain equity issuances as part of the transformation plan). The Company considers this measure meaningful as it provides improved continuity with respect to the comparison of our operating performance over a period of time. Adjusted EBITDA Margin Adjusted EBITDA margin is an indicator of a company's operating performance specifically in relation to our revenue performance. The Company considers this measure meaningful as it provides improved continuity with respect to the comparison of our operating performance with retaining and growing profitability as our revenue and scale changes over a period of time. Normalized Operating Expenses ("Opex") Before Depreciation Normalized operating expenses before depreciation is an indicator of a company's operating expense before depreciation over a period of time, normalized for the following items: Transaction costs related to acquisitions, dispositions, and open points; Software implementation costs associated with the configuration or customization of software as a service arrangement; Restructuring charges relate to non-recurring organizational changes to improve the Company's profitability and overall efficiency; Management transition costs; and Share-based compensation expense. The Company considers this measure meaningful as it provides a comparison of our operating expense normalized for transactions that are not indicative of the Company's operating expenses over time. Normalized Operating Expenses Before Depreciation as a Percentage of Gross Profit Normalized operating expenses before depreciation as a percentage of gross profit is a measure of a company's normalized operating expenses before depreciation over a period of time in relation to gross profit. The Company considers this measure meaningful as it provides a comparison of our operating performance, normalized for transactions that are not indicative of the Company's operating expenses, with our growing profitability as our gross profit and scale changes over a period of time. NON-GAAP AND OTHER FINANCIAL MEASURES RECONCILIATIONS Adjusted EBITDA and Segmented Adjusted EBITDA The following table illustrates segmented adjusted EBITDA for the three-month periods ended September 30: Three-Months Ended September 30, 2025 Three-Months Ended September 30, 2024 Revised 1 Canada U.S. Total Canada U.S. Total Period from July 1 to September 30 Net (loss) income for the period (1,409) 18,176 16,767 20,422 (13,369) 7,053 Add back (deduct): Income tax (recovery) expense (1,203) — (1,203) 4,347 18 4,365 Depreciation of right of use assets 8,012 — 8,012 8,400 613 9,013 Depreciation of property and equipment 4,829 2 4,831 5,864 564 6,428 Amortization of intangible assets 206 — 206 126 — 126 Interest on long-term indebtedness 8,935 974 9,909 6,396 3,574 9,970 Lease liability interest 7,508 693 8,201 8,274 629 8,903 Impairment (recovery) of non-financial assets 4,015 (12,361) (8,346) 582 15 597 Loss (gain) on redemption liabilities 171 — 171 (1,269) — (1,269) Canadian franchise dealership and corporate restructuring charges 17,576 — 17,576 (1,628) — (1,628) Unrealized fair value changes in derivative instruments 1,642 — 1,642 5,268 — 5,268 Unrealized foreign exchange losses (gains) 2,353 — 2,353 378 — 378 Software implementation costs 664 — 664 1,013 — 1,013 Cybersecurity incident costs 277 — 277 314 — 314 RightRide restructuring charges — — — 2,511 — 2,511 Acquisition related costs 37 — 37 — — — Share-based compensation for transformation plan awards 2,462 — 2,462 — — — Realized foreign exchange gain on divested dealerships — (4,946) (4,946) — — — (Gain) loss on disposal of assets (1,338) (4,956) (6,294) 197 — 197 Adjusted EBITDA 54,737 (2,418) 52,319 61,195 (7,956) 53,239 Adjusted EBITDA from discontinued operations 3,300 2,472 5,772 1,908 7,956 9,864 Adjusted EBITDA from continuing operations 58,037 54 58,091 63,103 — 63,103 1 Comparative period revised to reflect current period presentation for reclassification of discontinued operations. The following table illustrates segmented collision adjusted EBITDA from continuing operations for the three-months ended September 30. There is no discontinued operation in Collision Operations. Three-Months Ended September 30, 2025 Three-Months Ended September 30, 2024 Collision Operations Canada U.S. Total Canada U.S. Total Period from July 1 to September 30 Net income for the period 2,630 55 2,685 2,955 — 2,955 Add back: Depreciation of right of use assets 606 — 606 585 — 585 Depreciation of property and equipment 522 2 524 485 — 485 Lease liability interest 834 — 834 840 — 840 Loss on disposal of assets 125 — 125 — — — Adjusted EBITDA 4,717 57 4,774 4,865 — 4,865 Adjusted EBITDA Margin The following table illustrates segmented adjusted EBITDA margin from continuing operations for the three-month periods ended September 30: Three-Months Ended September 30, 2025 Three-Months Ended September 30, 2024 Revised 1 Canada U.S. Total Canada U.S. Total Adjusted EBITDA 58,037 54 58,091 63,103 — 63,103 Revenue 1,200,167 1,290 1,201,457 1,412,525 — 1,412,525 Adjusted EBITDA Margin 4.8 % 4.2 % 4.8 % 4.5 % — % 4.5 % 1 Comparative period revised to reflect current period presentation for reclassification of discontinued operations. Normalized Operating Expenses Before Depreciation and Normalized Operating Expenses Before Depreciation as a Percentage of Gross Profit The following tables illustrate segmented normalized opex before depreciation and normalized opex before depreciation as a percentage of gross profit from continuing operations, for the three-month periods and nine-month periods ended September 30: Three-Months Ended September 30, 2025 Three-Months Ended September 30, 2024 Revised 1 Canada U.S. Total Canada U.S. Total Operating expenses before depreciation 148,430 376 148,806 166,565 — 166,565 Normalizing Items: Add back: Acquisition-related costs (37) — (37) (351) — (351) Software implementation costs (664) — (664) (1,013) — (1,013) Canadian franchise dealership and corporate restructuring charges (17,576) — (17,576) 1,628 — 1,628 Share-based compensation expense (4,241) — (4,241) (1,873) — (1,873) Normalized Opex before depreciation 125,912 376 126,288 164,956 — 164,956 Gross profit 186,978 433 187,411 240,988 — 240,988 Normalized Opex Before Depreciation as a percentage of gross profit (%) 67.3 % 86.8 % 67.4 % 68.4 % — % 68.4 % 1 Comparative period revised to reflect current period presentation for reclassification of discontinued operations. Forward Looking Statements Certain statements contained in this press release are forward-looking statements and information (collectively "forward-looking statements"), within the meaning of the applicable Canadian securities legislation. We hereby provide cautionary statements identifying important factors that could cause actual results to differ materially from those projected in these forward-looking statements. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "will continue", "is anticipated", "projection", "vision", "goals", "objective", "target", "schedules", "outlook", "anticipate", "expect", "estimate", "could", "should", "plan", "seek", "may", "intend", "likely", "will", "believe", "shall" and similar expressions) and the financial outlook with respect to the transformation plan are not all historical facts and are forward-looking and may involve estimates and assumptions and are subject to risks, uncertainties and other factors some of which are beyond our control and difficult to predict. Forward-looking statements and financial outlook in this press release include: AutoCanada's future financial position, expected run-rate operational expense savings from the implementation of the ACX Operating Method, the expected aggregate proceeds from the U.S. dealership divestitures, the completion and the anticipated timing of completion of the U.S. dealership disposition transactions, engagement in selling the remaining dealerships of the U.S. Operations segment, and the impact of the U.S. dealership divestitures on the Company's leverage ratio. Forward-looking statements and financial outlook provide information about management's expectations and plans for the future and may not be appropriate for other purposes. Forward looking statements and financial outlook are based on various assumptions, and expectations that AutoCanada believes are reasonable in the circumstances. No assurance can be given that these assumptions and expectations will prove correct. Those assumptions and expectations are based on information currently available to AutoCanada, including information obtained from third-party consultants and other third-party sources, and the historic performance of AutoCanada's businesses. AutoCanada cautions that the assumptions used to prepare such forward-looking statements and financial outlook, including AutoCanada's expected run-rate operational expense savings through the transformation plan, could prove to be incorrect or inaccurate. In preparing the forward-looking statements and financial outlook, AutoCanada considered numerous economic, market and operational assumptions, including key assumptions listed under Section 3 Market and Financial Outlook of the MD&A. The forward-looking statements and financial outlook are also subject to the risks and uncertainties set forth below. By their very nature, forward-looking statements and financial outlook involve numerous assumptions, risks and uncertainties, both general and specific. Should one or more of these risks and uncertainties materialize or should underlying assumptions prove incorrect, as many important factors are beyond our control, AutoCanada's actual performance and financial results may vary materially from those estimates and expectations contemplated, expressed or implied in the forward-looking statements or financial outlook. These risks and uncertainties include risks relating to failure to realize expected cost-savings, cost overruns in one-time restructuring expenses, compliance with laws and regulations, reduced customer demand, operational risks, force majeure, labour relations matters, our ability to access external sources of debt and equity capital, and the risks identified in (i) the MD&A under Section 12 Risk Factors and (ii) AutoCanada's most recent Annual Information Form (the "AIF"). The preceding list of assumptions, risks and uncertainties is not exhaustive. Accordingly, these factors could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements and financial outlook. Therefore, any such forward-looking statements and financial outlook are qualified in their entirety by reference to the factors discussed throughout this press release and in the MD&A. Details of the Company's material forward-looking statements and financial outlook are included in the Company's most recent AIF. The AIF and other documents filed with securities regulatory authorities (accessible through the SEDAR+ website (www.sedarplus.ca) describe the risks, material assumptions, and other factors that could influence actual results and which are incorporated herein by reference. When relying on our forward-looking statements and financial outlook to make decisions with respect to AutoCanada, investors and others should carefully consider the preceding factors, other uncertainties and potential events. Any forward-looking statements and financial outlook are provided as of the date of this press release and, except as required by law, AutoCanada does not undertake to update or revise such statements to reflect new information, subsequent or otherwise. For the reasons set forth above, investors should not place undue reliance on forward-looking statements or financial outlook. About AutoCanada AutoCanada's Canadian Operations segment, as of September 30, 2025, operates 64 franchised dealerships in Canada, comprised of 23 brands, in 8 provinces. AutoCanada currently sells Acura, Audi, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge, Ford, GMC, Honda, Hyundai, Infiniti, Jeep, Kia, Mazda, Mercedes-Benz, MINI, Nissan, Porsche, Ram, Subaru, and Volkswagen branded vehicles. In addition, AutoCanada's Canadian Operations segment currently operates 3 independent used dealerships ("Used Vehicle Operations") and 14 stand-alone collision centres within our group of 30 collision centres ("Collision Centres"). In 2024, our Canadian dealerships sold approximately 85,000 new and used retail vehicles. In addition, our Collision Centres offer an opportunity for the Company to retain customers at every touchpoint within the automotive ecosystem. AutoCanada's U.S. Operations segment, operating as Leader Automotive Group ("Leader"), operates 13 franchised dealerships comprised of 9 brands, in Illinois, USA. Leader currently sells Audi, Hyundai, Kia, Lincoln, Mercedes-Benz, Porsche, Subaru, Toyota, and Volkswagen branded vehicles. In 2024, our U.S. dealerships sold approximately 12,900 new and used retail vehicles. Additional Information Additional information about AutoCanada is available at the Company's website at www.autocan.ca and on the SEDAR+ website at www.sedarplus.ca. SOURCE AutoCanada Inc. View original content to download multimedia: http://www.newswire.ca/en/releases/archive/November2025/13/c5577.html Contact: For further information contact: Samuel Cochrane, Interim Chief Executive Officer and Chief Financial Officer, Phone: 604.910.5509, Email: [email protected] © 2025 Canjex Publishing Ltd. All rights reserved.