Results
General Motors Financial Company Inc.
07/21/2026 | Press release | Distributed by Public on 07/21/2026 14:28
Quarterly Report for Quarter Ending June 30, 2026 (Form 10-Q)
Management's Discussion and Analysis of Financial Condition and Results of Operations
Forward-looking statements in this Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) are not guarantees of future performance and may involve risks and uncertainties that could cause actual results to differ materially from those projected. Refer to the "Forward-Looking Statements" section of this MD&A, the "Risk Factors" section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as filed with the Securities and Exchange Commission (SEC) on January 27, 2026 (2025 Form 10-K), and the "Risk Factors" section of our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026, as filed with the SEC on April 28, 2026 for a discussion of these risks and uncertainties.
Basis of Presentation
This MD&A should be read in conjunction with the accompanying condensed consolidated financial statements and notes thereto and the audited consolidated financial statements and notes thereto included in our 2025 Form 10-K.
Except as otherwise specified, dollar amounts presented within tables are stated in millions. Certain columns and rows may not add due to rounding. Average balances are calculated using daily balances, where available. Otherwise, average balances are calculated using monthly balances.
Results of Operations
Key Drivers Income before income taxes was $1.3 billion and $1.4 billion for the six months ended June 30, 2026 and 2025. Changes in key drivers include the following:
•Finance charge income decreased $101 million primarily due to a decrease in the average balance of the finance receivables portfolio.
•Leased vehicle income increased $112 million primarily due to an increase in the average balance of the leased vehicles portfolio.
•Other income increased $113 million primarily due to growth in the insurance and vehicle protection businesses.
•Leased vehicle expenses increased $240 million primarily due to increased depreciation expense on electric vehicles (EVs).
•Operating expenses increased $159 million primarily due to growth in the insurance and vehicle protection businesses and related claims losses.
•Interest expense decreased $155 million primarily due to a decrease in the average debt outstanding and a lower effective rate of interest on our debt.
For the year ending December 31, 2026, we expect to recognize income before income taxes in the $2.5 billion to $3.0 billion range.
Three Months Ended June 30, 2026 compared to Three Months Ended June 30, 2025
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Average Earning Assets
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Three Months Ended June 30, | 2026 vs. 2025 | |||||||||||||||||||||
| 2026 | 2025 | Amount | Percentage | ||||||||||||||||||||
| Average retail finance receivables | $ | 75,551 | $ | 77,577 | $ | (2,026) | (2.6) | % | |||||||||||||||
| Average commercial finance receivables | 16,053 | 16,628 | (575) | (3.5) | % | ||||||||||||||||||
| Average finance receivables | 91,604 | 94,205 | (2,601) | (2.8) | % | ||||||||||||||||||
| Average leased vehicles, net | 33,196 | 32,786 | 410 | 1.3 | % | ||||||||||||||||||
| Average earning assets | $ | 124,800 | $ | 126,990 | $ | (2,191) | (1.7) | % | |||||||||||||||
| Retail finance receivables purchased | $ | 10,047 | $ | 9,534 | $ | 513 | 5.4 | % | |||||||||||||||
| Leased vehicles purchased | $ | 4,129 | $ | 5,398 | $ | (1,269) | (23.5) | % | |||||||||||||||
Our penetration of GM's retail sales in the U.S. was 36.1% for the three months ended June 30, 2026, up from 34.4% for the three months ended June 30, 2025. Our penetration of GM's U.S. retail sales was lower throughout 2025, resulting in a decrease in average retail finance receivables. Penetration levels vary depending on incentive financing programs available and competing third-party financing products in the market.
GENERAL MOTORS FINANCIAL COMPANY, INC.
Average commercial finance receivables decreased primarily due to lower GM inventory. Our floorplan dealer penetration in the U.S. was 47.9% and 47.8% at June 30, 2026 and 2025.
Leased vehicles purchased decreased primarily due to lower GM sales, lease sales mix, and net capitalized cost.
| Revenue | Three Months Ended June 30, | 2026 vs. 2025 | |||||||||||||||||||||
| 2026 | 2025 | Amount | Percentage | ||||||||||||||||||||
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Finance charge income
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|||||||||||||||||||||||
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Retail finance receivables
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$ | 1,741 | $ | 1,743 | $ | (2) | (0.1) | % | |||||||||||||||
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Commercial finance receivables
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$ | 265 | $ | 305 | $ | (40) | (13.0) | % | |||||||||||||||
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Leased vehicle income
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$ | 1,970 | $ | 1,940 | $ | 30 | 1.5 | % | |||||||||||||||
| Other income | $ | 291 | $ | 267 | $ | 24 | 9.0 | % | |||||||||||||||
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Equity income
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$ | 13 | $ | 16 | $ | (3) | (18.4) | % | |||||||||||||||
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Effective yield - retail finance receivables
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9.2 | % | 9.0 | % | |||||||||||||||||||
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Effective yield - commercial finance receivables
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6.6 | % | 7.3 | % | |||||||||||||||||||
Finance Charge Income - Retail Finance Receivables Finance charge income on retail finance receivables decreased slightly primarily due to a decrease in the average balance of the portfolio, offset by an increase in the effective yield. The effective yield represents finance charges, rate subvention and fees recorded in earnings during the period as a percentage of average retail finance receivables.
Finance Charge Income - Commercial Finance Receivables Finance charge income on commercial finance receivables decreased primarily due to a decrease in the effective yield, resulting from lower short-term benchmark rates, and a decrease in the average balance of the portfolio.
Leased Vehicle Income Leased vehicle income increased primarily due to an increase in the average balance of the leased vehicles portfolio.
Other Income Other income increased primarily due to growth in the insurance and vehicle protection businesses.
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Costs and Expenses
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Three Months Ended June 30, | 2026 vs. 2025 | |||||||||||||||||||||
| 2026 | 2025 | Amount | Percentage | ||||||||||||||||||||
| Operating expenses | $ | 610 | $ | 523 | $ | 87 | 16.7 | % | |||||||||||||||
| Leased vehicle expenses | $ | 1,133 | $ | 1,052 | $ | 81 | 7.7 | % | |||||||||||||||
| Provision for loan losses | $ | 389 | $ | 354 | $ | 35 | 10.0 | % | |||||||||||||||
| Interest expense | $ | 1,542 | $ | 1,638 | $ | (96) | (5.9) | % | |||||||||||||||
| Average debt outstanding | $ | 112,981 | $ | 117,686 | $ | (4,705) | (4.0) | % | |||||||||||||||
| Effective rate of interest on debt | 5.5 | % | 5.6 | % | |||||||||||||||||||
Operating Expenses Operating expenses as an annualized percentage of average earning assets were 2.0% and 1.7% for the three months ended June 30, 2026 and 2025. Operating expenses increased primarily due to growth in the insurance and vehicle protection businesses and related claims losses.
Leased Vehicle Expenses Leased vehicle expenses increased primarily due to increased depreciation expense.
Provision for Loan Losses Provision for loan losses increased primarily due to higher loan origination volume.
Interest Expense Interest expense decreased primarily due to a decrease in the average debt outstanding and a lower effective rate of interest on our debt.
Taxes Our consolidated effective income tax rates were 28.7% and 27.5% of income before income taxes for the three months ended June 30, 2026 and 2025.
GENERAL MOTORS FINANCIAL COMPANY, INC.
Other Comprehensive Income (Loss)
Unrealized Gain (Loss) on Hedges Unrealized gain (loss) on hedges included in other comprehensive income (loss) was $78 million and $(5) million for the three months ended June 30, 2026 and 2025. The change in unrealized gain (loss) was primarily due to changes in the fair value of our foreign currency swap agreements.
Unrealized gains and losses on cash flow hedges of our floating rate debt are reclassified into earnings in the same period during which the hedged transactions affect earnings via principal remeasurement or accrual of interest expense.
Foreign Currency Translation Adjustments Foreign currency translation adjustments included in other comprehensive income (loss) were $45 million and $142 million for the three months ended June 30, 2026 and 2025. Translation adjustments resulted from changes in the values of our international currency-denominated assets and liabilities as the value of the U.S. Dollar changed in relation to international currencies. The foreign currency translation gain for the three months ended June 30, 2026 was primarily due to appreciating values of the Mexican Peso and Chinese Yuan Renminbi, partially offset by the depreciating value of the Canadian Dollar in relation to the U.S. Dollar. The foreign currency translation gain for the three months ended June 30, 2025 was primarily due to appreciating values of the Mexican Peso, Canadian Dollar, Brazilian Real, and Chinese Yuan Renminbi in relation to the U.S. Dollar.
Six Months Ended June 30, 2026 compared to Six Months Ended June 30, 2025
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Average Earning Assets
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Six Months Ended June 30, | 2026 vs. 2025 | |||||||||||||||||||||
| 2026 | 2025 | Amount | Percentage | ||||||||||||||||||||
| Average retail finance receivables | $ | 75,380 | $ | 77,264 | $ | (1,884) | (2.4) | % | |||||||||||||||
| Average commercial finance receivables | 15,940 | 17,392 | (1,452) | (8.4) | % | ||||||||||||||||||
| Average finance receivables | 91,320 | 94,656 | (3,336) | (3.5) | % | ||||||||||||||||||
| Average leased vehicles, net | 33,373 | 32,381 | 991 | 3.1 | % | ||||||||||||||||||
| Average earning assets | $ | 124,693 | $ | 127,038 | $ | (2,345) | (1.8) | % | |||||||||||||||
| Retail finance receivables purchased | $ | 18,300 | $ | 19,098 | $ | (798) | (4.2) | % | |||||||||||||||
| Leased vehicles purchased | $ | 8,176 | $ | 10,382 | $ | (2,206) | (21.2) | % | |||||||||||||||
Our penetration of GM's retail sales in the U.S. was stable, at 35.2% and 35.4% for the six months ended June 30, 2026 and 2025. Despite this consistent level of penetration, average retail finance receivables declined, resulting from lower origination volume in prior periods. Penetration levels vary depending on incentive financing programs available and competing third-party financing products in the market.
Average commercial finance receivables decreased primarily due to lower GM inventory. Our floorplan dealer penetration in the U.S. was 47.9% and 47.8% at June 30, 2026 and 2025.
Leased vehicles purchased decreased primarily due to lower GM sales, lease sales mix, and net capitalized cost.
| Revenue | Six Months Ended June 30, | 2026 vs. 2025 | |||||||||||||||||||||
| 2026 | 2025 | Amount | Percentage | ||||||||||||||||||||
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Finance charge income
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|||||||||||||||||||||||
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Retail finance receivables
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$ | 3,457 | $ | 3,437 | $ | 20 | 0.6 | % | |||||||||||||||
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Commercial finance receivables
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$ | 515 | $ | 636 | $ | (121) | (19.0) | % | |||||||||||||||
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Leased vehicle income
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$ | 3,955 | $ | 3,842 | $ | 112 | 2.9 | % | |||||||||||||||
| Other income | $ | 617 | $ | 503 | $ | 113 | 22.5 | % | |||||||||||||||
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Equity income
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$ | 27 | $ | 28 | $ | (1) | (4.0) | % | |||||||||||||||
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Effective yield - retail finance receivables
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9.2 | % | 9.0 | % | |||||||||||||||||||
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Effective yield - commercial finance receivables
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6.5 | % | 7.4 | % | |||||||||||||||||||
Finance Charge Income - Retail Finance Receivables Finance charge income on retail finance receivables increased primarily due to an increase in the effective yield, partially offset by a decrease in the average balance of the portfolio. The effective yield represents finance charges, rate subvention and fees recorded in earnings during the period as a percentage of average retail finance receivables.
GENERAL MOTORS FINANCIAL COMPANY, INC.
Finance Charge Income - Commercial Finance Receivables Finance charge income on commercial finance receivables decreased primarily due to a decrease in the effective yield, resulting from lower short-term benchmark rates, and a decrease in the average balance of the portfolio.
Leased Vehicle Income Leased vehicle income increased primarily due to an increase in the average balance of the leased vehicles portfolio.
Other Income Other income increased primarily due to growth in the insurance and vehicle protection businesses.
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Costs and Expenses
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Six Months Ended June 30, | 2026 vs. 2025 | |||||||||||||||||||||
| 2026 | 2025 | Amount | Percentage | ||||||||||||||||||||
| Operating expenses | $ | 1,194 | $ | 1,035 | $ | 159 | 15.4 | % | |||||||||||||||
| Leased vehicle expenses | $ | 2,346 | $ | 2,105 | $ | 240 | 11.4 | % | |||||||||||||||
| Provision for loan losses | $ | 656 | $ | 682 | $ | (26) | (3.8) | % | |||||||||||||||
| Interest expense | $ | 3,080 | $ | 3,235 | $ | (155) | (4.8) | % | |||||||||||||||
| Average debt outstanding | $ | 113,810 | $ | 116,598 | $ | (2,788) | (2.4) | % | |||||||||||||||
| Effective rate of interest on debt | 5.5 | % | 5.6 | % | |||||||||||||||||||
Operating Expenses Operating expenses as an annualized percentage of average earning assets were 1.9% and 1.6% for the six months ended June 30, 2026 and 2025. Operating expenses increased primarily due to growth in the insurance and vehicle protection businesses and related claims losses.
Leased Vehicle Expenses Leased vehicle expenses increased primarily due to increased depreciation expense on EVs.
Provision for Loan Losses Provision for loan losses decreased primarily due to lower loan origination volume.
Interest Expense Interest expense decreased primarily due to a decrease in the average debt outstanding and a lower effective rate of interest on our debt.
Taxes Our consolidated effective income tax rates were 26.9% and 27.3% of income before income taxes for the six months ended June 30, 2026 and 2025.
Other Comprehensive Income (Loss)
Unrealized Gain (Loss) on Hedges Unrealized gain (loss) on hedges included in other comprehensive income (loss) was $60 million and $(96) million for the six months ended June 30, 2026 and 2025. The change in unrealized gain (loss) was primarily due to changes in the fair value of our foreign currency swap agreements.
Unrealized gains and losses on cash flow hedges of our floating rate debt are reclassified into earnings in the same period during which the hedged transactions affect earnings via principal remeasurement or accrual of interest expense.
Foreign Currency Translation Adjustments Foreign currency translation adjustments included in other comprehensive income (loss) were $66 million and $205 million for the six months ended June 30, 2026 and 2025. Translation adjustments resulted from changes in the values of our international currency-denominated assets and liabilities as the value of the U.S. Dollar changed in relation to international currencies. The foreign currency translation gain for the six months ended June 30, 2026 was primarily due to appreciating values of the Brazilian Real, Chinese Yuan Renminbi and Mexican Peso, partially offset by the depreciating value of the Canadian Dollar in relation to the U.S. Dollar. The foreign currency translation gain for the six months ended June 30, 2025 was primarily due to appreciating values of the Brazilian Real, Mexican Peso, Canadian Dollar, and Chinese Yuan Renminbi in relation to the U.S. Dollar.
GENERAL MOTORS FINANCIAL COMPANY, INC.
Earning Assets Quality
Retail Finance Receivables Our retail finance receivables portfolio includes loans made to consumers and businesses to finance the purchase of vehicles for personal and commercial use. A summary of the credit risk profile by FICO score or its equivalent, determined at origination, of the retail finance receivables is as follows:
| June 30, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Amount | Percent | Amount | Percent | ||||||||||||||||||||
| Prime - FICO Score 680 and greater | $ | 56,339 | 74.1 | % | $ | 56,440 | 74.9 | % | |||||||||||||||
| Near-prime - FICO Score 620 to 679 | 9,498 | 12.5 | 9,303 | 12.3 | |||||||||||||||||||
| Sub-prime - FICO Score less than 620 | 10,227 | 13.4 | 9,661 | 12.8 | |||||||||||||||||||
| Retail finance receivables | 76,064 | 100.0 | % | 75,404 | 100.0 | % | |||||||||||||||||
| Less: allowance for loan losses | (2,801) | (2,656) | |||||||||||||||||||||
| Retail finance receivables, net | $ | 73,262 | $ | 72,748 | |||||||||||||||||||
| Number of outstanding contracts | 3,181,371 | 3,194,917 | |||||||||||||||||||||
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Average amount of outstanding contracts (in dollars)(a)
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$ | 23,909 | $ | 23,601 | |||||||||||||||||||
| Allowance for loan losses as a percentage of retail finance receivables | 3.7 | % | 3.5 | % | |||||||||||||||||||
_________________
(a)Average amount of outstanding contracts is calculated as retail finance receivables, divided by number of outstanding contracts.
Delinquency The following is a consolidated summary of delinquent retail finance receivables:
| June 30, 2026 | June 30, 2025 | ||||||||||||||||||||||
| Amount | Percent | Amount | Percent | ||||||||||||||||||||
| 31 - 60 days | $ | 1,844 | 2.4 | % | $ | 1,665 | 2.1 | % | |||||||||||||||
| Greater than 60 days | 732 | 1.0 | 626 | 0.8 | |||||||||||||||||||
| Total finance receivables more than 30 days delinquent | 2,575 | 3.4 | 2,291 | 2.9 | |||||||||||||||||||
| In repossession | 87 | 0.1 | 71 | 0.1 | |||||||||||||||||||
| Total finance receivables more than 30 days delinquent or in repossession | $ | 2,663 | 3.5 | % | $ | 2,362 | 3.0 | % | |||||||||||||||
At June 30, 2026, delinquency increased from June 30, 2025, primarily due to changes in the composition of credit mix of the portfolio.
Loan Modifications Loan modifications extended to borrowers experiencing financial difficulty were insignificant for the three and six months ended June 30, 2026 and 2025. Refer to Note 4 to our condensed consolidated financial statements for further information on loan modifications.
Net Charge-offs The following table presents charge-off data with respect to our retail finance receivables portfolio:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Charge-offs | $ | 535 | $ | 488 | $ | 1,076 | $ | 967 | |||||||||||||||
| Less: recoveries | (281) | (270) | (551) | (520) | |||||||||||||||||||
| Net charge-offs | $ | 253 | $ | 217 | $ | 525 | $ | 446 | |||||||||||||||
| Net charge-offs as an annualized percentage of average retail finance receivables | 1.3 | % | 1.1 | % | 1.4 | % | 1.2 | % | |||||||||||||||
Net charge-offs for the three and six months ended June 30, 2026 increased compared to the same periods in 2025, due to changes in the composition of credit mix of the portfolio and lower recovery rates.
GENERAL MOTORS FINANCIAL COMPANY, INC.
| Commercial Finance Receivables | June 30, 2026 | December 31, 2025 | |||||||||
| Commercial finance receivables | $ | 16,519 | $ | 17,365 | |||||||
|
Less: allowance for loan losses
|
(65) | (68) | |||||||||
| Commercial finance receivables, net | $ | 16,454 | $ | 17,297 | |||||||
| Number of dealers | 2,511 | 2,554 | |||||||||
| Average carrying amount per dealer | $ | 7 | $ | 7 | |||||||
| Allowance for loan losses as a percentage of commercial finance receivables | 0.4 | % | 0.4 | % | |||||||
Substantially all of our commercial finance receivables were current with respect to payment status at June 30, 2026 and December 31, 2025. No commercial loans were modified for the three and six months ended June 30, 2026 and 2025.
Leased Vehicles The following table summarizes activity in our operating lease portfolio (in thousands, except where noted):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Operating leases purchased | 82 | 105 | 163 | 203 | |||||||||||||||||||
| Operating leases terminated | 97 | 99 | 186 | 192 | |||||||||||||||||||
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Operating leased vehicles returned(a)
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29 | 20 | 61 | 45 | |||||||||||||||||||
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Percentage of leased vehicles returned(b)
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29 | % | 21 | % | 33 | % | 23 | % | |||||||||||||||
________________
(a)Represents the number of vehicles returned to us for remarketing.
(b)Calculated as the number of operating leased vehicles returned divided by the number of operating leases terminated.
The return rate is largely dependent on the level of used vehicle values at lease termination compared to contractual residual values at lease inception. The return rate for the three and six months ended June 30, 2026 increased compared to the same periods in 2025, primarily due to leased vehicle prices approaching or falling below contract residual values.
The following table summarizes the residual value based on our most recent estimates and the number of units included in leased vehicles, net by vehicle type (units in thousands):
| June 30, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||||||
| Residual Value | Units |
Percentage of Units |
Residual Value | Units |
Percentage of Units |
||||||||||||||||||||||||||||||
| Crossovers | $ | 12,738 | 589 | 63.4 | % | $ | 13,145 | 617 | 64.8 | % | |||||||||||||||||||||||||
| Trucks | 9,070 | 264 | 28.4 | 8,702 | 254 | 26.6 | |||||||||||||||||||||||||||||
| SUVs | 2,475 | 53 | 5.7 | 2,619 | 56 | 5.9 | |||||||||||||||||||||||||||||
| Cars | 494 | 24 | 2.6 | 515 | 26 | 2.7 | |||||||||||||||||||||||||||||
| Total | $ | 24,776 | 929 | 100.0 | % | $ | 24,981 | 952 | 100.0 | % | |||||||||||||||||||||||||
At June 30, 2026 and December 31, 2025, residual values of leased EVs represented 22.9% and 21.1% of total residual values. At June 30, 2026 and 2025, 99.3% and 99.4% of our operating leases were current with respect to payment status.
Liquidity and Capital Resources
General Our primary sources of cash are finance charge income, leasing income and proceeds from the sale of terminated leased vehicles, net proceeds from credit facilities, securitizations, secured and unsecured borrowings, and collections and recoveries on finance receivables. Our expected material uses of cash are purchases and funding of finance receivables and leased vehicles, repayment or repurchases of secured and unsecured debt, funding credit enhancement requirements in connection with securitizations and secured credit facilities, interest costs, operating expenses, income taxes and dividend payments.
Typically, our purchase and funding of retail and commercial finance receivables and leased vehicles are initially financed by utilizing cash and borrowings on our secured credit facilities. Subsequently, we typically obtain long-term financing for finance receivables and leased vehicles through securitization transactions and the issuance of unsecured debt.
GENERAL MOTORS FINANCIAL COMPANY, INC.
The following table summarizes our available liquidity:
| Liquidity | June 30, 2026 | December 31, 2025 | |||||||||
|
Cash, cash equivalents and marketable debt securities(a)
|
$ | 5,068 | $ | 5,866 | |||||||
| Available capacity under secured credit facilities | 24,013 | 25,924 | |||||||||
| Available under committed unsecured credit facilities | 1,224 | 967 | |||||||||
| Available under the Junior Subordinated Revolving Credit Facility | 1,000 | 1,000 | |||||||||
| Available under the GM Revolving 364-Day Credit Facility | 2,000 | 2,000 | |||||||||
| Available liquidity | $ | 33,306 | $ | 35,756 | |||||||
_________________
(a)Includes $506 million and $368 million in unrestricted cash outside of the U.S. at June 30, 2026 and December 31, 2025, of which certain amounts are considered to be indefinitely invested based on specific plans for reinvestment.
Our available liquidity varies quarterly based on factors including near-term debt issuances and maturities, as well as changes in our earning assets. We generally target liquidity levels to support at least six months of our expected net cash outflows, including new originations, without access to new debt financing transactions or other capital markets activity. At June 30, 2026, available liquidity exceeded our liquidity targets.
Cash Flows The following table summarizes our cash flow activities.
| Six Months Ended June 30, | 2026 vs. 2025 | ||||||||||||||||
| 2026 | 2025 | ||||||||||||||||
| Net cash provided by (used in) operating activities | $ | 3,582 | $ | 4,065 | $ | (483) | |||||||||||
| Net cash provided by (used in) investing activities | $ | (1,116) | $ | (1,642) | $ | 526 | |||||||||||
| Net cash provided by (used in) financing activities | $ | (3,217) | $ | 1,115 | $ | (4,332) | |||||||||||
The following table summarizes our net cash provided by (used in) operating activities. For further detail on our net cash provided by (used in) investing and financing activities, please refer to the Condensed Consolidated Statements of Cash Flows.
| Six Months Ended June 30, | 2026 vs. 2025 | ||||||||||||||||
| Operating Activities | 2026 | 2025 | |||||||||||||||
| Net income (loss) | $ | 946 | $ | 1,009 | $ | (63) | |||||||||||
| Depreciation and amortization | 2,813 | 2,629 | 185 | ||||||||||||||
| Accretion and amortization of loan and leasing fees | (755) | (811) | 56 | ||||||||||||||
| Provision for loan losses | 656 | 682 | (26) | ||||||||||||||
| Other non-cash income | (367) | (518) | 152 | ||||||||||||||
|
Changes in assets and liabilities
|
214 | 867 | (654) | ||||||||||||||
| Deferred income taxes | 74 | 207 | (133) | ||||||||||||||
| Net cash provided by (used in) operating activities | $ | 3,582 | $ | 4,065 | $ | (483) | |||||||||||
Credit Ratings We receive ratings from four independent credit rating agencies: DBRS Limited, Fitch Ratings, Moody's Investors Service and Standard & Poor's. The credit ratings assigned to us from all the credit rating agencies are closely associated with their opinions on GM. As of July 15, 2026, all credit ratings remained unchanged since December 31, 2025.
GENERAL MOTORS FINANCIAL COMPANY, INC.
Credit Facilities In the normal course of business, in addition to using our available cash, we fund our operations by borrowing under our credit facilities, which may be secured and/or structured as securitizations or may be unsecured. We repay these borrowings as appropriate under our liquidity management strategy.
At June 30, 2026, credit facilities consist of the following:
| Facility Type | Facility Amount | Advances Outstanding | ||||||||||||
|
Secured debt(a)
|
$ | 27,918 | $ | 3,852 | ||||||||||
|
Unsecured debt(b)
|
4,060 | 2,835 | ||||||||||||
| Junior Subordinated Revolving Credit Facility | 1,000 | - | ||||||||||||
| GM Revolving 364-Day Credit Facility | 2,000 | - | ||||||||||||
| Total | $ | 34,978 | $ | 6,687 | ||||||||||
_________________
(a)Includes committed and uncommitted revolving credit facilities backed by retail finance receivables and leases as well as loans to dealers for floorplan financing. The financial institutions providing the uncommitted facilities are not contractually obligated to advance funds under them, and no unused borrowing capacity is included in the facility amount. We had no advances outstanding on these uncommitted facilities at June 30, 2026.
(b)Includes committed and uncommitted facilities. The financial institutions providing the uncommitted facilities are not contractually obligated to advance funds under them, and no unused borrowing capacity is included in the facility amount. We had $2.8 billion of advances outstanding on these facilities at June 30, 2026.
Refer to Note 7 to our condensed consolidated financial statements for further discussion.
Securitization Notes Payable We periodically finance our retail and commercial finance receivables and leases through public and private term securitization transactions, where the securitization markets are sufficiently developed.
Our securitizations and credit facilities generally utilize special purpose entities, which are also variable interest entities that meet the requirements to be consolidated in our financial statements. Refer to Note 8 to our condensed consolidated financial statements for further discussion.
Unsecured Debt We periodically access the unsecured debt capital markets through the issuance of senior unsecured notes. At June 30, 2026, the aggregate principal amount of our outstanding unsecured senior notes was $55.0 billion.
We issue other unsecured debt through demand notes, commercial paper and other bank and non-bank funding sources. At June 30, 2026, we had $3.3 billion outstanding in demand notes and $3.0 billion under the U.S. commercial paper program.
Support Agreement - Leverage Ratio Our earning assets leverage ratio, calculated in accordance with the terms of the support agreement with GM (the Support Agreement), was 8.52x and 8.67x at June 30, 2026 and December 31, 2025, and the applicable leverage ratio threshold was 12.00x. In determining our earning assets leverage ratio (net earning assets divided by adjusted equity) under the Support Agreement, net earning assets means our finance receivables, net, plus leased vehicles, net, and adjusted equity means our equity, net of goodwill and inclusive of outstanding junior subordinated debt, as each may be adjusted for derivative accounting.
Asset and Liability Maturity Profile We define our asset and liability maturity profile as the cumulative maturities of our finance receivables, net, investment in leased vehicles, net of accumulated depreciation, cash and marketable securities, less our cumulative debt maturities. We manage our balance sheet so that asset maturities will exceed debt maturities each year. The following chart presents our cumulative maturities for assets and debt at June 30, 2026:
| 2026 | 2027 | 2028 | 2029 and Thereafter | ||||||||||||||||||||
| Encumbered assets | $ | 15,364 | $ | 35,599 | $ | 48,888 | $ | 63,760 | |||||||||||||||
| Unencumbered assets | 27,793 | 47,899 | 59,947 | 66,882 | |||||||||||||||||||
|
Assets(a)
|
$ | 43,157 | $ | 83,498 | $ | 108,835 | $ | 130,643 | |||||||||||||||
| Secured debt | $ | 11,193 | $ | 25,935 | $ | 35,616 | $ | 46,451 | |||||||||||||||
| Unsecured debt | 8,946 | 22,315 | 33,024 | 66,255 | |||||||||||||||||||
|
Total debt(b)
|
$ | 20,139 | $ | 48,250 | $ | 68,640 | $ | 112,706 | |||||||||||||||
_________________
(a) Amounts presented include the impact of expected prepayments.
(b)Excludes unamortized debt premium/(discount), unamortized debt issuance costs and fair value adjustments.
GENERAL MOTORS FINANCIAL COMPANY, INC.
Off-Balance Sheet Arrangements
Transfers of Finance Receivables We have continuing involvement with finance receivables that were transferred in 2025, primarily in our role as servicer. The outstanding balance of the previously transferred finance receivables subject to our continuing involvement was $1.3 billion at June 30, 2026. Refer to Note 10 for information on our representations and warranties.
Non-GAAP Measures
Net Income Attributable to Common Shareholder - adjusted We use net income attributable to common shareholder - adjusted, a non-GAAP measure, to calculate our return on average tangible common equity - adjusted because it excludes certain adjustments that are not considered part of our core operations. It is calculated by subtracting the dividends paid to preferred shareholders from net income, after any adjustments.
The following table presents our reconciliation of net income attributable to common shareholder - adjusted to net income, the most directly comparable GAAP measure:
| Four Quarters Ended | |||||||||||
| June 30, 2026 | June 30, 2025 | ||||||||||
| Net income attributable to common shareholder | $ | 1,877 | $ | 1,604 | |||||||
|
Adjustment - impairment charge(a)
|
- | 320 | |||||||||
| Net income attributable to common shareholder - adjusted | $ | 1,877 | $ | 1,924 | |||||||
(a)This impairment charge was to write down our SAIC-GMAC equity investment to its fair value.
Return on Average Common Equity Return on average common equity is a generally accepted accounting principles (GAAP) measure widely used to measure earnings in relation to invested capital. We calculate return on average common equity as net income attributable to common shareholder divided by average common equity. Our return on average common equity increased to 13.5% for the four quarters ended June 30, 2026 from 11.8% for the four quarters ended June 30, 2025, primarily due to the $320 million impairment charge on our SAIC-GMAC equity investment recorded in the three months ended December 2024.
Return on Average Tangible Common Equity - adjusted We use return on average tangible common equity - adjusted, a non-GAAP measure, to measure our contribution to GM's enterprise profitability and cash flows. We calculate average tangible common equity - adjusted as net income attributable to common shareholder - adjusted divided by average tangible common equity. Our return on average tangible common equity - adjusted decreased to 14.7% for the four quarters ended June 30, 2026 from 15.5% for the four quarters ended June 30, 2025.
The following table presents our reconciliation of return on average tangible common equity - adjusted to return on average common equity, the most directly comparable GAAP measure:
| Four Quarters Ended | |||||||||||
| June 30, 2026 | June 30, 2025 | ||||||||||
|
Net income attributable to common shareholder - adjusted
|
$ | 1,877 | $ | 1,924 | |||||||
| Average equity | $ | 15,921 | $ | 15,574 | |||||||
| Less: average preferred equity | (1,969) | (1,969) | |||||||||
| Average common equity | 13,952 | 13,605 | |||||||||
| Less: average goodwill and intangible assets | (1,179) | (1,173) | |||||||||
| Average tangible common equity | $ | 12,773 | $ | 12,432 | |||||||
|
Return on average common equity
|
13.5 | % | 11.8 | % | |||||||
|
Return on average tangible common equity - adjusted
|
14.7 | % | 15.5 | % | |||||||
GENERAL MOTORS FINANCIAL COMPANY, INC.
Our calculation of these non-GAAP measures may not be comparable to similarly titled measures of other companies due to potential differences between companies in the method of calculation. As a result, the use of these non-GAAP measures has limitations and should not be considered superior to, in isolation from, or as a substitute for, related U.S. GAAP measures. These non-GAAP measures allow investors the opportunity to measure and monitor our performance against our externally communicated targets and evaluate the investment decisions being made by management to improve our return on average tangible common equity. Management uses these measures in its financial, investment and operational decision-making processes, for internal reporting and as part of its forecasting and budgeting processes. For these reasons, we believe these non-GAAP measures are useful to our investors.
Critical Accounting Estimates
The preparation of condensed financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amount of revenue and expenses in the periods presented. Actual results could differ from those estimates, due to inherent uncertainties in making estimates, and those differences may be material. The critical accounting estimates that affect the condensed consolidated financial statements and the judgment and assumptions used are consistent with those described in Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2025 Form 10-K.
Forward-Looking Statements
This report contains several "forward-looking statements." Forward-looking statements are those that use words such as "believe," "expect," "intend," "plan," "may," "likely," "should," "estimate," "continue," "future" or "anticipate" and other comparable expressions. These words indicate future events and trends. Forward-looking statements are our current views with respect to future events and financial performance. These forward-looking statements are subject to many assumptions, risks and uncertainties that could cause actual results to differ significantly from historical results or from those anticipated by us. The most significant risks are detailed from time to time in our filings and reports with the SEC, including our 2025 Form 10-K and our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026, as filed with the SEC on April 28, 2026. It is advisable not to place undue reliance on our forward-looking statements. We undertake no obligation to, and do not, publicly update or revise any forward-looking statements, except as required by federal securities laws, whether as a result of new information, future events or otherwise.
The following factors are among those that may cause actual results to differ materially from historical results or from the forward-looking statements:
•GM's ability to produce and sell new vehicles that we finance in the markets we serve;
•uncertainty regarding the impact of tariffs on the automotive industry, GM's business, and the general economy, including the financial health of our borrowers;
•dealers' effectiveness in marketing our financial products to consumers;
•the viability of GM-franchised dealers that are commercial loan customers;
•the sufficiency, availability and cost of sources of financing, including credit facilities, securitization programs and secured and unsecured debt issuances;
•the adequacy of our underwriting criteria for loans and leases and the level of net charge-offs, delinquencies and prepayments on the loans and leases we purchase or originate;
•our ability to effectively manage capital or liquidity consistent with evolving business, operational or financing needs, risk management standards and regulatory or supervisory requirements;
•the adequacy of our allowance for loan losses on our finance receivables;
•our ability to maintain and expand our market share due to competition in the automotive finance industry from banks, credit unions, independent finance companies and other captive automotive finance subsidiaries;
•changes in the automotive industry that result in a change in demand for vehicles and related vehicle financing;
•the effect, interpretation or application of new or existing laws, regulations, accounting pronouncements, court decisions, legal proceedings, governmental investigations and other proceedings;
•adverse determinations with respect to the application of existing laws, or the results of any audits from tax authorities, as well as changes in tax laws and regulations, supervision, enforcement and licensing across various jurisdictions;
•the prices at which used vehicles are sold in the wholesale auction markets;
•vehicle return rates, our ability to estimate residual value at lease inception and the residual value performance on vehicles we lease;
GENERAL MOTORS FINANCIAL COMPANY, INC.
•interest rate fluctuations and certain related derivatives exposure, including risks from our hedging activities;
•our joint ventures in China, which we cannot operate solely for our benefit and over which we have limited control;
•our ability to attract and retain qualified employees;
•pandemics, epidemics, disease outbreaks and other public health crises;
•our ability to secure private data, proprietary information, manage risks related to security breaches, cyberattacks and other disruptions to networks and systems owned or maintained by us or third parties and comply with enterprise data regulations in all key market regions;
•foreign currency exchange rate fluctuations and other risks applicable to our operations outside of the U.S.;
•changes in tax regulations and earnings forecasts could prevent full utilization of available tax incentives and tax credits;
•changes in local, regional, national or international economic, social or political conditions, including political uncertainty or instability and economic tensions between governments; and
•impact and uncertainties related to climate-related events and climate change legislation.
If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, our actual results may vary materially from those expected, estimated or projected.
Available Information
Our internet website is www.gmfinancial.com. Our website contains detailed information about us and our subsidiaries. Our Investor Center website at https://investor.gmfinancial.com contains a significant amount of information about our Company, including financial and other information for investors. We encourage the public to visit our website, as we frequently update and post new information about the Company on our website, and it is possible that this information could be deemed to be material information. Our website and information included in or linked to our website are not part of this Quarterly Report on Form 10-Q.
Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, as well as any amendments to those reports, are available free of charge on our website as soon as reasonably practicable after they are electronically filed with or furnished to the SEC. These reports can also be found on the SEC website at www.sec.gov.
General Motors Financial Company Inc. published this content on July 21, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on July 21, 2026 at 20:29 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]