Presidio’s latest quarterly publication focuses on deal momentum; accelerating AI technology

DENVER/ATLANTA — Nov. 11, 2025 — The Presidio Group has launched its latest issue of “Presidio Perspectives: A Quarterly Outlook on Auto Retail and M&A Trends,” a publication that chronicles and captures the shifts in dealership performance, auto technology developments and the dealership M&A market.

This report, which provides a summary of the third quarter of 2025, includes Presidio-NCM Average Dealership Performance Benchmark data, highlights dealership transactions through the first nine months of the year and examines the implications of artificial intelligence.

Profitability for the average franchised dealership continued to stabilize in the third quarter of 2025, though the pace of earnings growth slowed compared with the second quarter. Dealership M&A activity remains robust. This quarter’s highlights include: 

  • The Presidio-NCM Average Dealership Profitability Index reached 195 as the average U.S. dealership’s pretax profit rose 12.5% during 2025’s first nine months
  • Average adjusted net income for public dealership groups rose 6.6% in the third quarter
  • Presidio estimates 320 dealership transactions involving 445 stores occurred during the first nine months of the year, a pace roughly on par with the same period in 2024

The Presidio Group closed 15 transactions during the first 10 months of 2025. Twelve of those involved dealerships trading hands, pushing the firm’s all-time franchise transaction count above 275.

“The dealership M&A market has continued to gain momentum throughout 2025, and we don’t see the pace slowing down,” said Presidio President George Karolis. “We continue to see a trend toward active portfolio management among sophisticated leadership teams positioning their dealership groups for long-term strategic growth.”

As dealers pursue innovative ways to grow, cut costs and enhance customer experience, technology breakthroughs, including artificial intelligence, are front and center. Presidio’s third annual Auto Tech Summit, held Oct. 21, gathered leading voices in dealership management, strategic investing and technology innovation to explore those advancements.

“The sector is going through historic changes,” Presidio CEO Brodie Cobb said. “We appreciate the role our clients are engaging us to play in supporting their strategic visions as we participate in the broader industry transformation.”

Among the other highlights in this issue:

  • In our Data Digest section, we write that 2025’s fourth quarter will be hard pressed to equal or better the sales volume posted during the fourth quarter of 2024 when consumer appetite for year-end deals was strong. 
  • Research Director Kevin Tynan writes that the U.S. battery electric vehicle market faces major pricing, profit and volume shifts as automakers, dealers and consumers navigate policy changes enacted under the Trump administration. 
  • Our Auto Retail Technology Snapshot predicts that automotive retailing is on the verge of a major transformation as agentic artificial intelligence moves from concept to reality in dealership showrooms, service bays and back offices. Industry leaders project that this new generation of AI — capable of independently analyzing data, automating workflows and even taking direct action — will fundamentally change how cars are sold and serviced.

To read the full report and register for future publications, go to: https://thepresidiogroup.com/news-insights/#quarterly-report

About The Presidio Group LLC 

The Presidio Group was founded in 1998 with the simple mission to relentlessly put the interests of our clients first. By steadfastly adhering to this philosophy, the firm has earned the trust of clients throughout the United States. During their careers, the professionals at Presidio have collectively closed more than 295 transactions for nearly $20.0 billion. The Presidio Group, based in Denver and Atlanta, publishes Presidio Perspectives: A Quarterly Outlook on Auto Retail and M&A Trends, a leading source of information about the automotive retail landscape. Presidio Merchant Partners LLC is a subsidiary of The Presidio Group LLC and is a member of FINRA and SIPC. For more information on Presidio, visit www.thepresidiogroup.com.

Contacts

George Karolis  
(678) 831-5520  
gkarolis@thepresidiogroup.com

Lauren Pfohl  
(404) 434-1837  
lpfohl@thepresidiogroup.com