Sonic Automotive Inc posted a 6.8% increase in total revenue for fiscal year 2025, driven by growth across its Franchised Dealerships, EchoPark, and Powersports segments. Despite this expansion, operating income declined by 20.4%, reflecting margin compression due primarily to elevated inventory costs and operational complexities in used vehicle sales and third-party service disruptions. Net income fell about 45%. Capital allocation favored sustaining dividends and selective share repurchases, supported by robust operating cash flow of approximately $567 million. Liquidity remains adequate with a current ratio near 1.1 and access to sizable credit facilities; however, leverage covenants restrict aggressive shareholder returns beyond moderate dividend increases. Interest rate caps are employed to hedge borrowing cost exposure amid rising benchmark rates.