Matthew Robb

Matthew Robb, on behalf of Ryan Sigdall from Craig-Hallum, asked about the slight changes in SAR assumptions for 2026 and 2027 and the increased non-cash deferral through 2029 related to Total Care Auto (TCA), seeking the drivers behind these adjustments and an update on TCA's current status.

Answer

SVP and CFO Michael Welch explained that the SAR projection was slightly bumped from 15.7 to 15.9 for 2026, reflecting updated third-party forecasts and aligning with their 2026 budget. He also stated that the final platform, Herb Chambers, would be rolled out on Tekion first, then TCA, completing the TCA rollout by late summer 2026.