UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

______________________________________________

FORM 10-K

(Mark One)


☒						ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, ~~2024~~2025


☐						TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period ________________ to ________________

Commission file number 1-10667

______________________________________________

General Motors Financial Company, Inc.

(Exact name of registrant as specified in its charter)


Texas						75-2291093
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

801 Cherry Street, Suite 3500, Fort Worth, Texas 76102

(Address of principal executive offices, including Zip Code)

(817) 302-7000

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

5.250% Senior Notes due 2026

GM/26

New York Stock Exchange

6.150% Senior Notes due 2035

GM/35B

New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

☒

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

As of January 2726, ~~2025~~2026, there were 5,050,000 shares of the registrant’s common stock, par value $0.0001 per share, outstanding. All of the registrant’s common stock is owned by General Motors Holdings LLC, a wholly-owned subsidiary of General Motors Company.

DOCUMENTS INCORPORATED BY REFERENCE

NONE

The registrant is a wholly-owned subsidiary of General Motors Company and meets the conditions set forth in General Instructions (I)(1)(a) and (b) of Form 10-K and is therefore filing this Form 10-K with a reduced disclosure format as permitted by Instruction I(2).

INDEX

		Page
PART I
Item 1.	Business	1
Item 1A.	Risk Factors	65
Item 1B.	Unresolved Staff Comments	1312
Item 1C.	Cybersecurity	13
Item 2.	Properties	13
Item 3.	Legal Proceedings	1413
Item 4.	Mine Safety Disclosures	14
PART II
Item 5.	Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	14
Item 6.	[Reserved]	14
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	14
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	2425
Item 8.	Financial Statements and Supplementary Data	2930
	Consolidated Balance Sheets	2930
	Consolidated Statements of Income and Comprehensive Income	3031
	Consolidated Statements of Shareholders' Equity	3132
	Consolidated Statements of Cash Flows	3233
	Notes to Consolidated Financial Statements	3334
	Note 1. Business, Basis of Presentation and Summary of Significant Accounting Policies	3334
	Note 2. Related Party Transactions	38
	Note 2. Marketable and Other Securities	40
	Note 3. Finance Receivables	39
	Note 3. Related Party Transactions	40
	Note 4. Leased Vehicles	42
	Note 4. Finance Receivables	42
	Note 5. Goodwill and Intangible Assets	43
	Note 5. Leased Vehicles	45
	Note 6. Equity in Net Assets of Nonconsolidated Affiliates	43
	Note 6. Goodwill and Intangible Assets	45
	Note 7. Debt	44
	Note 7. Equity in Net Assets of Nonconsolidated Affiliates	45
	Note 8. Variable Interest Entities	45
	Note 8. Debt	46
	Note 9. Derivative Financial Instruments and Hedging Activities	45
	Note 9. Variable Interest Entities	47
	Note 10. Commitments and Contingencies	48
	Note 10. Derivative Financial Instruments and Hedging Activities	48
	Note 11. Shareholders' Equity	49
	Note 11. Commitments and Contingencies	50
	Note 12. Parent Company Stock-Based Compensation	49
	Note 12. Shareholders' Equity	51
	Note 13. Employee Benefit Plans	50
	Note 13. Parent Company Stock-Based Compensation	52
	Note 14. Income Taxes	51
	Note 14. Employee Benefit Plans	53
	Note 15. Supplemental Information for the Consolidated Statements of Cash Flows	53
	Note 15. Income Taxes	53
	Note 16. Segment Reporting and Geographic Information	53
	Note 16. Supplemental Information for the Consolidated Statements of Cash Flows	56
	Note 17. Regulatory Capital and Other Regulatory Matters	57
	Note 17. Segment Reporting and Geographic Information	57
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	58
	Note 18. Regulatory Capital and Other Regulatory Matters	60
Item 9A.	Controls and Procedures	58
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	61
Item 9B.	Other Information	58
Item 9A.	Controls and Procedures	61
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	58
Item 9B.	Other Information	61
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	61
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	5861
Item 11.	Executive Compensation	5861
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	5861
Item 13.	Certain Relationships and Related Transactions, and Director Independence	5861
Item 14.	Principal Accountant Fees and Services	5962
PART IV
Item 15.	Exhibits and Financial Statement Schedules	5962
Item 16.	Form 10-K Summary	5962
	Index to Exhibits	6063
	Signatures	6669

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GENERAL MOTORS FINANCIAL COMPANY, INC.

PART I

Item 1. Business

General General Motors Financial Company, Inc. (sometimes referred to as we, us, our, the Company, or GM Financial), the wholly-owned captive finance subsidiary of General Motors Company (GM), is a global provider of automobile finance solutions. WeUnder the AmeriCredit, GM Financial, and GMAC trade names, we offer substantially similar products and services throughout many different regions, subject to local regulations and market conditions. We evaluate our business in two reportable segments: North America (the North America Segment) and International (the International Segment).

North America Segment Our North America Segment includes operations in the U.S. and Canada. We have been operating in the automobile finance business in the U.S. since September 1992. Our retail automobile finance programs include full credit spectrum lending and leasing offered through GM-franchised dealers under the GM Financial brand. We also offer a sub-prime lending product through non-GM-franchised and select independent dealers under the AmeriCredit brand. Our commercial lending programs are focused on GM-franchised dealers and their affiliates. We also offer and finance vehicle-related service contracts and other products and services.

International Segment Our International Segment includes operations in Brazil, Chile, Colombia, Mexico and Peru, as well as our equity investments in joint ventures in China. The retail financing and leasing programs in our International Segment focus on financing new GM vehicles and select used vehicles. Our commercial lending programs are focused on GM-franchised dealers and their affiliates. We also offer and finance vehicle-related service contracts and other products and services.

Retail Finance In our retail finance business the term "loan" refers to retail installment contracts we purchase from automobile dealers or other vehicle financing products. We also purchase lease agreements for new GM vehicles.

We are primarily an indirect auto finance provider, and we focus our marketing activities on automobile dealers. We pursue franchised dealerships; however, we also conduct business with a limited number of independent dealerships. We generally finance new GM vehicles and used vehicles.

We maintain non-exclusive relationships with the dealers, and the dealers retain discretion to obtain financing from us or from another source for a customer seeking to purchase a vehicle. We actively monitor and cultivate our dealer relationships to maximize the volume of applications they submit for retail financing that meet our underwriting standards and profitability objectives.

Our operating leases are closed-end leases; therefore, we assume the residual risk on the leased vehicle. The lessee may purchase the leased vehicle at the maturity of the lease by paying the purchase price stated in the lease agreement, which equals the contract residual value determined at origination of the lease, plus any fees and all other amounts owed under the lease. If the lessee decides not to purchase the leased vehicle, the lessee must return it to a dealer by the lease's scheduled maturity date.

We seek to maximize net sales proceeds on returned leased vehicles. Net sales proceeds equal gross proceeds less fees and costs for reconditioning and transporting the leased vehicles. We sell returned leased vehicles through either our exclusive online channel or through wholesale auction markets.

GM offers subvention programs, under which GM provides us cash payments in order for us to be able to provide for lower customer payments on loan and lease agreements originated through GM's dealership network, making credit more affordable to customers financing or leasing vehicles manufactured by GM. GM also supports our loan origination volume by offering other incentives to borrowers who finance their vehicles with us.

Our business strategy is to help GM sell vehicles while earning an appropriate risk-adjusted return. This strategy includes ~~increasing new GM automobile sales by~~ offering a full spectrum of competitive financing programs. Total retail loan and lease origination levels were as follows (in millions):

	Years Ended December 31,
	2024		2023		2022
	2025		2024		2023
New GM vehicles	$	47,~~562~~856	$	4447,~~557~~562	$	3944,~~678~~557
Other vehicles	8,~~487~~025		8,~~533~~487		98,~~509~~533
Total	$	5655,~~049~~881	$	5356,~~090~~049	$	4953,~~187~~090

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GENERAL MOTORS FINANCIAL COMPANY, INC.

Underwriting We utilize proprietary credit scoring systems to support our credit approval process. The credit scoring systems were developed through statistical analysis of prior auto credit performance using credit bureau attributes and loan and lease structure data and are tailored to each country where we conduct business. Credit scoring is used to differentiate credit applications and to statistically rank-order credit risk in terms of expected default rates, which enables us to evaluate credit applications for approval, contract pricing and structure.

In addition to our proprietary credit scoring systems, we utilize other underwriting guidelines. These underwriting guidelines are comprised of numerous evaluation criteria, including, but not limited to: (i) identification and assessment of the applicant's willingness and capacity to repay the loan or lease, including consideration of credit history and performance on past and existing obligations; (ii) credit bureau data; (iii) collateral identification and valuation; (iv) payment structure and debt ratios; (v) insurance information; (vi) employment, income and residency verifications, as considered appropriate; and (vii) in certain cases, the creditworthiness of a co-obligor. These underwriting guidelines and the minimum credit risk profiles of applicants we will approve, as rank-ordered by our credit scorecards, are subject to change from time to time based on economic, competitive and capital market conditions as well as our overall origination strategies.

Customer Experience and Servicing We strive to earn customers for life with an approach that builds, personalizes and continuously improves customer experiences to ensure customer satisfaction with every interaction. Our vision is to provide remarkable service through deep insights and orchestrate a seamless experience across servicing channels to maintain strong loyalty and retention rates. Our customer experience and servicing activities include collecting and processing customer payments, responding to customer inquiries, initiating contact with customers who are delinquent, maintaining our security interest in financed vehicles, arranging for the repossession of financed vehicles, liquidation of collateral and pursuit of deficiency balances when appropriate.

Service Contracts We market, sell and administer vehicle service protection and other related finance and insurance contracts through GM Protections, LLC, a wholly-owned subsidiary, and its captive insurance subsidiary. These products are sold in the United States, primarily through certain qualified dealers or dealer groups. Our vehicle service contracts (VSC) and protection products where we are the obligor include mechanical service contracts, prepaid maintenance (PPM), guaranteed auto protection (GAP), and excess wear and use (EWU) contracts. We also provide support on marketing, training, and sales strategies to our third-party administrators for additional products where they are the obligor.

Commercial Finance We provide commercial lending products to our dealer customers that include floorplan financing, also known as wholesale or inventory financing, which is lending to finance vehicle inventory. We also provide dealer loans, which are loans to finance improvements to dealership facilities, to provide working capital, or to purchase and/or finance dealership real estate. Additionally, we provide lending products to commercial vehicle upfitters and advances to certain GM subsidiaries.

We support the financing of new and used vehicle inventory primarily for GM-franchised dealerships and their affiliates before sale or lease to the retail customer. Financing is provided through lines of credit extended to individual dealerships. In general, each floorplan line is secured by all financed vehicles and by other dealership assets and, when available, the continuing personal guarantee of the dealership's owners. Under certain circumstances, such as repossession of dealership inventory, GM and other manufacturers may be obligated by applicable law, or under agreements with us, to reassign or to repurchase new vehicle inventory within certain mileage and model year parameters, which minimizes our risk associated with new vehicle inventory advances. The amount we advance to a dealership for new vehicles purchased through the manufacturer is equal to 100% of the wholesale invoice price of new vehicles, which includes destination and other miscellaneous charges, and a price rebate from the manufacturer to the dealer in varying amounts stated as a percentage of the invoice price. We advance the loan proceeds directly to the manufacturer. To support a dealership's used vehicle inventory needs, we advance funds to the dealership or auction to purchase used vehicles for inventory based on the appropriate wholesale book value for the region in which the dealer is located or the auction purchase price.

Floorplan lending is typically structured to yield interest at a floating rate indexed to an appropriate benchmark rate. The rate for a particular dealership is based on, among other things, the dealership's creditworthiness, the amount of the credit line, the dealer's risk rating and whether the dealership is in default. Interest on floorplan loans is generally payable monthly. GM offers floorplan interest subvention in specific International Segment markets, under which GM makes payments to us to cover certain periods of interest on certain floorplan loans. Upon the sale or lease of a financed vehicle, the dealer must repay the advance on the vehicle according to the repayment terms. These repayment terms may vary based on the dealer's risk rating. As a result, funds advanced may be repaid in a short time period, depending on the length of time the dealer holds the vehicle until its sale.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

We periodically inspect and verify the location of the financed vehicles that are available for sale. The timing of the verifications varies, and no advance notice is given to the dealer. Among other things, verifications are intended to determine dealer compliance with its credit agreement as to repayment terms and to determine the status of our collateral.

As part of our floorplan lending agreement, we offer a cash management program. Under the program, subject to certain conditions, a dealer may choose to reduce the amount of interest on its floorplan line by making principal payments to us in advance. This program allows for the dealer to manage its liquidity position and reduce its interest cost while maintaining the repayment terms on the advances made associated with new vehicles.

We also make loans to finance parts and accessories as well as improvements to dealership facilities, to provide working capital and to purchase and finance dealership real estate. These loans are typically secured by mortgages or deeds of trust on dealership land and buildings, security interests in other dealership assets and often the continuing personal guarantees from the owners of the dealerships and/or the real estate, as applicable. Dealer loans are structured to yield interest at fixed or floating rates, which are indexed to an appropriate benchmark rate. Interest on dealer loans is generally payable monthly.

Underwriting Each dealership is assigned a risk rating based on various factors, including, but not limited to, capital sufficiency, operating performance, financial outlook and credit and payment history, if available. The risk rating affects loan pricing and guides the management of the account. We monitor the level of borrowing under each dealership's account daily. When a dealer's outstanding balance exceeds the availability on any given credit line with that dealership, we may reallocate balances across existing lines, temporarily suspend the granting of additional credit, increase the dealer's credit line or take other actions following an evaluation and analysis of the dealer's financial condition and the cause of the excess or overline. Under the terms of the credit agreement with the dealership, we may call the floorplan loans due and payable.

Servicing Commercial lending servicing activities include dealership customer service, account maintenance, credit line monitoring and adjustment, exception processing and insurance monitoring. Our commercial lending servicing operations are centralized in each country.

Sources of Financing We primarily finance our loan, lease and commercial origination volume through the use of our secured and unsecured credit facilities, public and private securitization transactions and the issuance of unsecured debt in the capital markets. We may also periodically utilize other financing sources including hybrid securities and whole loan sales. Generally, we seek to fund our operations through local sources of funding to minimize currency and country risk. However, we may issue debt globally in order to diversify funding sources, especially to support U.S. financing needs. The mix of funding sources varies from country to country based on the characteristics of our earning assets and the relative development of the capital markets in each country. We actively monitor the capital markets and seek to optimize our mix of funding sources to minimize our cost of funds. We or our affiliates may seek to retire or purchase our or our affiliates' outstanding debt through cash purchases and/or exchanges for debt or other securities, in open-market purchases, privately negotiated transactions or otherwise. Such repurchases or exchanges, if any, will be upon such terms and at such prices as we may determine, and will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors.

Secured Credit Facilities Some loans and leases are funded using secured credit facilities with participating banks providing financing either directly or through institutionally managed conduits. Under these funding agreements, we transfer financial assets to special purpose ~~finance~~entities ~~subsidiaries~~(SPEs). These ~~subsidiaries~~SPEs, in turn, issue notes to the bank participants or agents, collateralized by such financial assets. The bank participants or agents provide funding under the notes to the ~~subsidiaries~~SPEs pursuant to an advance formula, and the ~~subsidiaries~~SPEs forward the funds to us in consideration for the transfer of financial assets. While these ~~subsidiaries~~SPEs are included in our consolidated financial statements, these ~~subsidiaries~~SPEs are separate legal entities, and the assets held by these ~~subsidiaries~~SPEs are legally owned by them and are not available to our creditors or creditors of our other subsidiaries. Advances under these secured credit facilities bear interest at benchmark rates plus a credit spread and specified fees, depending upon the source of funds provided by the bank participants or agents. In certain markets in the International Segment, we ~~also~~may finance loans through the sale of receivables to banks under a full recourse arrangement.

Unsecured Credit Facilities We utilize both committed and uncommitted unsecured credit facilities as an additional source of funding. The financial institutions providing the uncommitted facilities are not obligated to advance funds under them. GM also provides us with financial resources through a $1.0 billion junior subordinated unsecured intercompany revolving credit facility (the Junior Subordinated Revolving Credit Facility) and exclusive access to a $2.0 billion 364-day revolving credit facility (the GM Revolving 364-Day Credit Facility).

Securitizations We also fund loans and leases through public and private on-balance-sheet securitization transactions. In our securitizations, we transfer loans, leases and related assets to securitization trusts (Trusts), which issue one or more classes of securities backed by the transferred assets. These asset-backed securities are in turn sold to investors. While the Trusts are included in our consolidated financial statements, they are separate legal entities, and the assets held by the Trusts are legally owned by them and are not available to our creditors or creditors of our other Trusts. When we transfer securitized assets to a ~~Trust, we make~~

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GENERAL MOTORS FINANCIAL COMPANY, INC.

Trust, we make certain representations and warranties regarding the securitized assets, including, but not limited to, the terms of the underlying obligations, receipt of good title and an enforceable security interest in the assets, and certain matters regarding our origination and servicing of the securitized assets. We do not make any representations or warranties regarding the future performance of the securitized assets. Upon the breach of one of these representations or warranties (subject to any applicable cure period) that materially and adversely affects the noteholders' interest in any securitized assets, we are obligated to repurchase the affected securitized assets from the Trust. Historically, repurchases due to a breach of a representation or warranty have been insignificant.

We provide various forms of credit enhancement across our securitization structures in both public and private markets. The amount and type of credit enhancement in our securitizations depends, in part, on the net interest margin, collateral characteristics and credit performance trends of the assets transferred, as well as our credit trends, our financial condition, the economic environment and overall auto finance industry credit trends.

The credit enhancements in our securitization transactions may include overcollateralization (whereby the value of the securitized assets transferred to the Trusts is greater than the amount due on asset-backed securities issued by the Trusts) restricted cash accounts, subordinated bonds, and excess spread (when interest collections on the securitization assets exceed the related fees and expenses, including interest payments, on the related securitization structures).

Unsecured Debt We also access the capital markets through the issuance of unsecured notes and commercial paper.

Trade Names We and GM have obtained trademark protection for the AmeriCredit, GM Financial and GMAC names and the logos that incorporate those names. Certain other names, logos and phrases we use in our business operations have also been trademarked. The trademarks that we and GM hold are very important to our identity and recognition in the marketplace.

Regulation Our operations are subject to regulation, supervision and licensing by governmental authorities under various national, state and local laws and regulations.

North America Segment In the U.S., we are subject to extensive federal regulation, including the Truth in Lending Act, the Equal Credit Opportunity Act and the Fair Credit Reporting Act. Additionally, we are subject to the Gramm-Leach-Bliley Act, which requires us to maintain the privacy of certain consumer data in our possession and to periodically communicate with consumers on privacy matters, and the Servicemembers Civil Relief Act, which has limitations on the interest rate charged to customers who have subsequently entered military service and provides other protections, such as early lease termination and restrictions on repossession.

The primary federal agency responsible for ensuring compliance with these consumer protection laws is the Consumer Financial Protection Bureau (CFPB). The CFPB has broad rulemaking, examination and enforcement authority over non-bank automobile finance companies like us. We are subject to supervision and examination by the CFPB as a “larger participant” in the automobile finance market.

In most states and other jurisdictions in which we operate, consumer credit regulatory agencies regulate and enforce laws relating to sales finance companies and consumer lenders or lessors like us. These laws and regulations generally provide for licensing as a sales finance company or consumer lender or lessor, limitations on the amount, duration and charges, including interest rates, requirements as to the form and content of finance contracts and other documentation, and restrictions on collection practices and creditors' rights. In certain jurisdictions, we are subject to periodic examination by regulatory authorities.

In Canada, we are subject to both federal and provincial laws and regulations, including the Consumer Protection Acts and Cost of Credit Disclosure regulations. Additionally, we are subject to certain provincial Consumer Reporting Acts and the Personal Information Protection and Electronic Documents Act, as well as provincial counterparts, which regulates how we can collect, use, and/or disclose consumers' personal information.

International Segment In certain countries in the International Segment, we operate as either banks or regulated finance companies and are subject to legal and regulatory restrictions, which vary by country and may change from time to time. The regulatory restrictions, among other things, may require that the regulated entities meet certain minimum capital requirements, may restrict dividend distributions and ownership of certain assets, and may require certain disclosures to prospective customers and restrict certain practices related to the servicing of consumer accounts.

Competition The automobile finance market is highly fragmented and is served by a variety of financial entities, including the captive finance affiliates of other major automotive manufacturers, banks, thrifts, credit unions, leasing companies and independent finance companies. Many of these competitors have substantial financial resources, highly competitive funding costs and significant scale and efficiency. Capital inflows from investors to support the growth of new entrants in the automobile finance market, as well as growth initiatives from more established market participants, have resulted in increasingly competitive conditions. While we have a competitive advantage when GM-sponsored subvention or other support programs are offered exclusively through us to targeted GM dealers and their customers, when no subvention or other support programs are offered, our competitors can often provide financing on terms more favorable to customers or dealers than we

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GENERAL MOTORS FINANCIAL COMPANY, INC.

automobile finance market, as well as growth initiatives from more established market participants, have resulted in increasingly competitive conditions. While we have a competitive advantage when GM-sponsored subvention or other support programs are offered exclusively through us to targeted GM dealers and their customers, when no subvention or other support programs are offered, our competitors can often provide financing on terms more favorable to customers or dealers than we may offer. Many of these competitors also have longstanding relationships with automobile dealerships and may offer the dealerships or their customers other products and services that we may not currently provide.

Human Capital In order to achieve our objectives, we must continue to attract, retain, motivate and develop the best talent. We aim to adhere to a responsible employer philosophy, which includes, among other things, commitments to create job opportunities, pay workers fairly, promote safety and well-being, and foster an inclusive work environment in which all employees can perform at their best. ~~Our six core values are the foundation of our culture; how we behave encompasses key measures of our performance, including the visible ways we conduct ourselves as we work with one another:~~

~~•Integrity~~Develop -and Retain Talented People We ~~win~~compete for talent against other finance companies and against businesses in other sectors, such as technology. To attract and retain top talent, we aim to provide a workplace culture that aligns employee behaviors with ~~integrity~~our byvalues, ~~always~~fulfills ~~doing~~their ~~the~~long-term ~~right~~individual ~~thing~~aspirations and provides experiences that make individuals feel valued, included, and engaged. In furtherance of this goal, we invest significant resources to retain and develop our talent. In addition to mentoring and networking opportunities, we offer a vast array of career development resources to help develop, grow and enable our employees.

•Customers for Life - We earn customers for life by putting them at the center of everything we do.

•Teamwork - We promote teamwork to achieve extraordinary results.

•Excellence - We strive to achieve our performance objectives.

•Team Members & Communities - We foster team member growth and invest in our communities.

•Inclusion - We are inclusive by valuing different backgrounds, opinions and ideas.

Develop and Retain Talented People Today, we compete for talent against other finance companies and against businesses in other sectors, such as technology. To attract and retain top talent, we aim to provide a workplace culture that aligns employee behaviors with our values, fulfills their long-term individual aspirations and provides experiences that make individuals feel valued, included, and engaged. In furtherance of this goal, we invest significant resources to retain and develop our talent. In addition to mentoring and networking opportunities, we offer a vast array of career development resources to help develop, grow and enable our employees.

Safety and Well-being We empower employees to report safety concerns through various means and prohibit retaliation for reports made in good faith. The well-being of our employees is equally important to foster and stimulate creativity and innovation. In addition to traditional healthcare, paid time off, paid parental leave, wellness programs, flextime work arrangements and retirement benefits, including a 401(k) matching program, we offer a variety of benefits and resources to support employees' physical and mental health, including on-site health clinics and a telehealth option, which help us attract talent and cultivate a healthier workforce.

Employees At December 31, ~~2024~~2025, we employed approximately 9,000 people, excluding employees at our joint ventures.

Available Information We make available free of charge through our website, www.gmfinancial.com, our public securitization information and all materials that we file electronically with the SEC, including our reports on Form 10-K, Form 10-Q, Form 8-K, and amendments to those reports filed pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, as soon as reasonably practical after filing or furnishing such material with or to the SEC. The SEC maintains a website at www.sec.gov that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. 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 Annual Report on 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.

Item 1A. Risk Factors

Risks related to our business

The profitability and financial condition of our operations are dependent upon the operations of our parent, GM.

A material portion of our retail finance business, and substantially all our commercial lending activities, consist of financing associated with the sale and lease of new GM vehicles and our relationships with GM-franchised dealerships. GM operates in a very competitive industry with market participants routinely introducing new and improved vehicle models and features, at decreasing price points, designed to meet rapidly evolving consumer expectations. The production and profitable sale of electric vehicles (EVs) is an important part of GM’s long-term business strategy and is dependent on consumer adoption of EVs. As GM invests in EVs, GM faces pricing pressures, aggressive incentives, slower than anticipated EV adoption rates, limited visibility on ramping of EV volumes, and increased global competition and production from competitors, especially from China. These challenges have led, and may in the future lead, to impacts to spending and resources, production adjustments, and strategic shifts at GM. If there were significant changes in GM's liquidity and capital position and access to the capital markets, the production or sales of GM vehicles to retail customers, the quality or resale value of GM vehicles, inflationary pressures or other factors impacting GM or its products, such changes could significantly affect our profitability, financial condition, and access to the capital markets. In addition, GM sponsors special-rate financing and other incentive programs available through us. Under these programs, GM makes interest supplements or other support payments to us and may offer various incentives to customers who finance their vehicles with us. These programs increase our financing volume and our share of financed GM vehicle sales. When GM adopts marketing strategies from time to time that de-emphasize such programs in favor of other types of incentives, our financing volume is generally impacted.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

Item 1A. Risk Factors

Risks Related to our Business

The profitability and financial condition of our operations are dependent upon the operations of our parent, GM.

A material portion of our retail finance business, and substantially all our commercial lending activities, consist of financing associated with the sale and lease of new GM vehicles and our relationships with GM-franchised dealerships. GM operates in a very competitive industry with market participants routinely introducing new and improved vehicle models and features, at decreasing price points, designed to meet rapidly evolving consumer expectations. The production and profitable sale of electric vehicles (EVs) is becoming more important to GM’s long-term business and is dependent on consumer adoption of EVs. As GM continues to invest in EVs, we have observed pricing pressures, incentives competition, lower than expected EV adoption rates, low visibility on ramping of EV volumes, increased competition and production from competitors, including in China, and challenging demand, which has led, and may in the future lead, to increased spending and resources, production adjustments, and strategic focus. If there were significant changes in GM's liquidity and capital position and access to the capital markets, the production or sales of GM vehicles to retail customers, the quality or resale value of GM vehicles, inflationary pressures or other factors impacting GM or its products, such changes could significantly affect our profitability, financial condition, and access to the capital markets. In addition, GM sponsors special-rate financing and other incentive programs available through us. Under these programs, GM makes interest supplements or other support payments to us and may offer various incentives to customers who finance their vehicles with us. These programs increase our financing volume and our share of financed GM vehicle sales. When GM adopts marketing strategies from time to time that de-emphasize such programs in favor of other types of incentives, our financing volume is generally impacted.

Also, government safety standards require manufacturers to remedy certain product safety defects through recall campaigns and vehicle repurchases. From time to time, GM may recall or suspend the production or sale of certain GM products to address performance, customer satisfaction, compliance or safety-related issues. Because our business is substantially dependent upon the sale of GM products, such actions could negatively impact our financing volume. Additionally, recalls may affect the demand for used recalled vehicles or impact our timely disposal of repossessed and returned lease vehicles, which may affect the sales proceeds of those vehicles.

Work Astoppages ~~work~~and ~~stoppage or~~ other ~~limitation~~limitations on production have occurred, and in the future could occur, at GM’s facilities, either temporarily or permanently for any number of reasons, including labor disruptions, supply chain disruptions, the occurrence of a contagious disease or illness or catastrophic weather events~~, whether or not as a result of climate change~~. GM’s inability to manufacture at one or more affected facilities has resulted, and may in the future result, in harm to our reputation, lower revenues and the loss of customers. Any extended reduction or suspension of GM’s production or sale of vehicles due to a decline in consumer demand, work stoppage, governmental action, negative publicity, or other events, or significant changes to marketing programs sponsored by GM could have an adverse effect on our business.

We operate in a highly competitive industry, and competitive pressures could have a significant negative effect on our pricing, market share and ~~operating~~ results of operations.

The automotive finance industry is highly competitive, and we compete with a large number of banks, credit unions, independent finance companies and other captive automotive finance subsidiaries. Our ability to maintain and expand our market share is contingent upon us offering competitive pricing, including through GM incentive programs, developing and maintaining strong relationships with dealers and customers, making substantial investments in our technological infrastructure, and effectively responding to changes in the automotive and automotive finance industries. In addition, any expansion into new markets may require us to compete with more experienced and established market participants. Failure to effectively manage these challenges could adversely affect our market share, and pressure to provide competitive pricing could have a negative effect on our ~~operating~~ results of operations.

~~Our~~Tariffs ~~profitability~~applicable isto ~~dependent~~the ~~upon~~automotive ~~retail~~industry ~~demand~~continue ~~for~~to ~~automobiles~~evolve, ~~and~~including ~~related~~in ~~automobile~~the ~~financing~~U.S., ~~and~~where the ~~ability~~government ofhas ~~customers~~signaled totariff ~~repay~~policy ~~loans and leases, and our business~~ may beshift ~~negatively~~in ~~affected~~the ~~during~~future. ~~times~~Such oftariffs ~~low~~could ~~automobile~~have ~~sales,~~a ~~fluctuating~~material ~~wholesale~~adverse ~~prices~~effect ~~and~~on ~~leased~~our ~~vehicle~~financial ~~residual~~condition ~~values,~~ and ~~other~~results ~~economic~~of ~~conditions~~operations.

~~General We~~The ~~are~~U.S. ~~subject~~and toother ~~changes~~governments inhave ~~general~~implemented ~~economic~~import ~~conditions~~tariffs ~~that~~and ~~are~~tariff-related ~~beyond~~measures, ~~our~~including ~~control.~~tariffs ~~During~~on ~~periods~~vehicles ofand ~~economic~~parts, ~~slowdown~~as orwell ~~recession,~~as ~~delinquencies,~~other ~~defaults,~~materials ~~repossessions~~relevant ~~and~~to ~~losses~~the ~~generally~~automotive ~~increase~~industry. ~~These~~Further ~~periods~~tariff ~~also~~measures ~~may~~and bemodifications ~~accompanied~~to byexisting ~~increased~~tariffs ~~unemployment~~continue ~~rates,~~to ~~inflation,~~be ~~decreased~~under ~~demand~~consideration. ~~for~~New ~~automobiles~~or ~~and~~existing ~~declining~~trade ~~values of automobiles securing outstanding loans and leases~~agreements, ~~which~~including ~~weakens~~the ~~collateral~~ongoing ~~values~~review ~~and~~of ~~increases~~ the ~~amount~~U.S.-Mexico-Canada ofAgreement, amay ~~loss~~also inimpact the ~~event~~tariff ofrate ~~default.~~applicable ~~Additionally,~~to ~~changing~~goods ~~consumer~~imported ~~preferences,~~by ~~government~~GM ~~policy~~or ~~shifts,~~GM's ~~higher~~suppliers. ~~vehicle operating costs~~Additionally, ~~declining~~certain ~~stock~~tariffs ~~market~~are ~~values,~~subject ~~unstable~~to ~~real~~pending ~~estate~~legal ~~values,~~challenges. ~~increasing~~In ~~unemployment~~these ~~levels~~respects, ~~elevated~~the ~~interest~~global ~~rates,~~tariff ~~general~~environment ~~availability~~remains ofhighly ~~consumer credit~~dynamic, ~~changes in vehicle ownership trends~~ and ~~other~~the ~~factors~~specific ~~that~~tariffs ~~impact~~applicable ~~consumer~~to ~~confidence,~~goods ~~behavior~~imported orby ~~disposable~~GM ~~income~~and ~~could~~GM’s ~~increase~~suppliers ~~loss~~into ~~frequency,~~the asU.S. ~~well~~and asother ~~weaken~~countries ~~collateral~~where ~~values~~GM onoperates ~~certain~~continue ~~types~~to ofevolve.

Evolving tariffs globally, along with other trade barriers and trade restrictions, may lead to supply chain disruptions, potentially resulting in increased production costs and the inability to receive certain critical parts. The impact of proposed, implemented, and ultimately enforced tariffs on the U.S. economy is difficult to predict. Any extended reduction of GM’s production or sale of vehicles could have an adverse effect on our business.

Our profitability is dependent upon retail demand for automobiles, related automobile financing and the ability of customers to repay loans and leases. Our business and results of operations may be negatively affected during times of low automobile sales, fluctuating wholesale prices and leased vehicle residual values, and other economic conditions.

General We are subject to changes in general economic conditions that are beyond our control. During periods of economic slowdown or recession, delinquencies, defaults, repossessions and losses generally increase. These periods also may be accompanied by increased unemployment rates, inflation, decreased demand for automobiles and declining values of automobiles securing outstanding loans and leases, which weakens collateral values and increases the amount of a loss in the event of default. Additionally, changing consumer preferences, government policy shifts, higher vehicle operating costs, declining stock market values, unstable real estate values, increasing unemployment levels, elevated interest rates, general availability of consumer credit, changes in vehicle ownership trends and other factors that impact consumer confidence, behavior or disposable income could increase both loss frequency and the amount of loss in the event of default. In addition, during an economic slowdown or recession, our servicing costs may increase without a corresponding increase in our revenue. No assurance can be given that the underwriting criteria and collection methods we employ will afford adequate protection against these risks. An increase in inflation or a decrease in economic growth could impact the financial health of our borrowers and lead to higher delinquencies and defaults. Any sustained period of increased delinquencies, defaults, repossessions or losses or increased servicing costs could adversely affect our financial position, liquidity, results of operations and our ability to enter into future financings.

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automobiles. In addition, during an economic slowdown or recession, our servicing costs may increase without a corresponding increase in our revenue. No assurance can be given that the underwriting criteria and collection methods we employ will afford adequate protection against these risks. Any sustained period of increased delinquencies, defaults, repossessions or losses or increased servicing costs could adversely affect our financial position, liquidity, results of operations and our ability to enter into future financings.

Demand for automobiles may also be impacted by the entrance of non-traditional participants in the automotive industry, who are disrupting the industry's historic business model through the introduction of new products, services, and methods of travel and vehicle ownership.

Wholesale Auction Values We sell automobiles returned to us at the end of lease terms either through our exclusive online channel or through wholesale auction markets. We also sell repossessed automobiles at wholesale auction markets located throughout the countries where we have operations. Depressed wholesale prices for used automobiles may result in, or increase, losses upon our disposition of off-lease or repossessed vehicles, and in the case of repossessed vehicles, we may be unable to collect the resulting deficiency balances. Depressed wholesale prices for used automobiles may result from manufacturer incentives or discounts on new vehicles, financial difficulties of new vehicle manufacturers, discontinuance of vehicle brands and models, increased used vehicle inventory resulting from significant liquidations of rental or fleet inventories and increased trade-ins due to promotional programs offered by new vehicle manufacturers. Additionally, higher ~~gasoline~~energy prices may ~~decrease~~impact the wholesale auction values of vehicles ~~with internal combustion engines, while lower gasoline prices may decrease the wholesale auction values of EVs~~. Decreased auction proceeds resulting from the depressed prices at which used automobiles may be sold during periods of economic slowdown or low retail demand could result in higher losses for us. Further, we are dependent on the efficient operation of the wholesale auction markets. If the operations of the wholesale auction markets are disrupted, we may be unable to sell our used vehicles at sufficient volume and/or pricing.

Leased Vehicle Residual Values and Return Rates We project expected residual values and return volumes of the vehicles we lease. At lease inception, we determine the amount of lease payments we charge our lease customer based, in part, on our estimated residual value. Actual proceeds realized by us upon the sale of a returned leased vehicle at lease termination may be lower than the amount projected, which reduces the profitability of the lease transaction to us. Realization of the residual values is dependent on our ability to market the vehicles under prevailing market conditions. Among the factors that can affect the value of returned lease vehicles are the industry volume of vehicles returned, economic conditions and the quality or perceived quality, safety or reliability of the vehicles. Further, the majority of EVs that we finance for GM customers are on operating leases, and there is limited resale history on GM’s newer EVs. Actual return volumes may be higher than expected and can be influenced by contractual lease-end values relative to then-existing market values, marketing programs for new vehicles and general economic conditions. All of these, alone or in combination, may adversely affect the profitability of our lease program and financial results. A material decrease in the value of a leased asset group could result in an impairment charge, which would adversely affect our financial results.

Labor Market Conditions Competition to hire and retain personnel possessing the skills and experience required by us could contribute to an increase in our employee turnover rate and/or our compensation expense. High turnover or an inability to attract and retain qualified personnel could have an adverse effect on our delinquency, default and net loss rates, our ability to grow and, ultimately, our financial condition, liquidity and results of operations.

Defaults and prepayments on loans and leases purchased or originated by us could adversely affect our operations.

Our financial condition, liquidity and results of operations depend, to a material extent, on the performance of loans and leases in our portfolio. Obligors under contracts acquired or originated by us, as well as dealer obligors in our commercial lending portfolio, may default during the term of their loan or lease. Generally, we bear the full risk of losses resulting from defaults. In the event of a default, the value of the financed vehicle or, in the case of a commercial obligor, the value of the inventory and other commercial assets we finance usually does not cover the outstanding amount due to us, including the costs of recovery and asset disposition.

The amounts owed to us by any given dealership or dealership group in our commercial lending portfolio can be significant. The amount of potential loss resulting from the default of a dealer in our commercial lending portfolio can, therefore, be material even after liquidating the dealer's inventory and other assets to offset the defaulted obligations. Additionally, because the receivables in our commercial lending portfolio may include complex arrangements including guarantees, inter-creditor agreements, mortgages and other liens, our ability to recover and dispose of the underlying inventory and other collateral may be time-consuming and expensive, thereby increasing our potential loss.

We maintain an allowance for loan losses on our finance receivables that reflects management's estimates of expected credit losses for these receivables, including assumptions about forecast recovery rates, based on wholesale used vehicle prices. Decreases in used vehicle prices could result in increased severity of credit losses. If the allowance is inadequate, we would recognize the losses in excess of that allowance as an expense, and results of operations would be adversely affected. A material adjustment to our allowance for loan losses and the corresponding decrease in earnings could limit our ability to enter into future financings, thus impairing our ability to finance our business.

An increase in defaults would reduce the cash flows generated by us, distributions of cash to us from our secured debt facilities would be delayed, and the ultimate amount of cash available for distributions to us from such facilities would be less, which would have an adverse effect on our liquidity.

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adjustment to our allowance for loan losses and the corresponding decrease in earnings could limit our ability to enter into future financings, thus impairing our ability to finance our business.

Customer prepayments and dealer repayments on commercial obligations, which are generally revolving in nature, affect the amount of finance charge income we receive over the life of the loans. If prepayment levels increase for any reason and we are not able to replace the prepaid receivables with newly originated loans, we will receive less finance charge income and our results of operations may be adversely affected.

A portion of our origination and servicing activities in the North America Segment has historically involved sub-prime automobile receivables. Sub-prime borrowers are associated with higher delinquency and default rates than prime borrowers. The actual rates of delinquencies, defaults, repossessions and losses with respect to those borrowers could also be more dramatically affected by a general economic downturn. No assurance can be given that our proprietary credit scoring system, risk-based pricing and other underwriting policies, and our servicing and collection methods will be effective in managing these risks. In the event that we underestimate the default risk or underprice contracts that we purchase, our financial position, liquidity and results of operations would be adversely affected.

Our operations are heavily reliant on automotive dealers, and our profitability could be adversely affected by a change in dealers’ relationships with us or in their financial condition.

Substantially all of our revenue is generated from financial products offered to or through automotive dealers. Whether we are able to originate automotive loans and leases, as well as maintain and grow our commercial lending portfolio, is dependent upon dealers' effectiveness in marketing our financial products to their retail and lease customers and selecting our commercial lending products over those of our competitors. As a result, our ability to cultivate and maintain strong relationships with dealers, particularly GM-franchised dealers, is essential to our operations.

Given the reliance of our operations on GM-franchised dealers, we have significant exposure to their financial condition. Dealers operate in a highly competitive market, and GM-franchised dealers are vulnerable to both decreased demand for new GM vehicles and periods of economic slowdown or recession. Negative changes in the financial condition of GM-franchised dealers could result in decreased loan and lease originations, reduced demand for financing of dealer inventory, construction projects and working capital, and increased defaults and net loss rates in our commercial lending portfolio, which in turn could adversely impact our profitability and financial results.

Our ability to continue to fund our business and service our debt is dependent on a number of financing sources and requires a significant amount of cash.

We depend on various financing sources, including credit facilities, securitization programs and unsecured debt issuances, to finance our loan and lease originations and commercial lending business. Additionally, our ability to refinance or make payments on our indebtedness depends on our access to financing sources in the future and our ability to generate cash. Our access to financing sources depends upon our financial position, general market conditions, availability of bank liquidity, the bank regulatory environment, our compliance with covenants imposed under our financing agreements, the credit quality of the collateral we can pledge to support secured financings, and other factors. Changes in GM's and our credit ratings may also impact our access to and cost of financing. There can be no assurance that funding will be available to us through these financing sources or, if available, that the funding will be on acceptable terms. If these financing sources are not available to us on a regular basis for any reason, or we are not otherwise able to generate significant amounts of cash, then we would not have sufficient funds and would be required to revise the scale of the business, including the possible reduction of origination activities, which would have a material adverse effect on our financial position, liquidity and results of operations.

Our substantial indebtedness could adversely affect our financial health and prevent us from fulfilling our obligations under existing indebtedness.

We currently have a substantial amount of outstanding indebtedness. In addition, we have guaranteed a substantial amount of indebtedness incurred by several of our subsidiaries. We have also entered into intercompany loan agreements with several of our subsidiaries, providing these companies with access to our liquidity to support originations and other activities. Our ability to make payments of principal or interest on, or to refinance, our indebtedness will depend on our future operating performance and our ability to enter into additional credit facilities and securitization transactions, as well as other debt financings, which, to a certain extent, are subject to economic, financial, competitive, regulatory, capital markets and other factors beyond our control.

If we are unable to generate sufficient cash flows in the future to service our debt, we may be required to refinance all or a portion of our existing debt or to obtain additional financing. There can be no assurance that any refinancing will be possible or that any additional financing could be obtained on acceptable terms. The inability to service or refinance our existing debt or to obtain additional financing would have a material adverse effect on our financial position, liquidity and results of operations.

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The degree to which we are leveraged creates risks, including:

•we may be unable to satisfy our obligations under our outstanding indebtedness;

•we may find it more difficult to fund future credit enhancement requirements, operating costs, tax payments, capital expenditures or general corporate expenditures;

•we may have to dedicate a substantial portion of our cash resources to payments on our outstanding indebtedness, thereby reducing the funds available for operations and future business opportunities; and

•we may be vulnerable to adverse general economic, industry and capital markets conditions.

Our credit facilities may require us to comply with certain financial ratios and covenants, including minimum asset quality maintenance requirements. These restrictions may interfere with our ability to obtain financing or to engage in other necessary or desirable business activities. If we cannot comply with the requirements in our credit facilities, then the lenders may increase our borrowing costs, remove us as servicer of our assets or declare the outstanding debt immediately due and payable. If our debt payments were accelerated, any assets pledged to secure these facilities might not be sufficient to fully repay the debt. These lenders may foreclose upon their collateral, including the restricted cash in these credit facilities. These events may also result in a default under our unsecured debt indentures. We may not be able to obtain a waiver of these provisions or refinance our debt, if needed. In such case, our financial condition, liquidity and results of operations would materially suffer.

Our hedging strategies may not be successful in minimizing risks from unfavorable changes in interest rates and foreign currency exchange rates.

Unfavorable changes in interest rates and foreign currency exchange rates may adversely affect our financial condition, liquidity and results of operations. We utilize various hedging strategies to mitigate our exposure to rate fluctuations, including entering into derivative instruments with various major financial institutions that we believe are creditworthy. However, changes in interest rates and currency exchange rates cannot always be predicted or hedged, and there can be no assurance that our hedging strategies will be effective in minimizing interest rate and foreign currency risks. Our results of operations may be adversely impacted by volatility in the valuation of derivative instruments. Additionally, we may be unable to find creditworthy counterparties willing to enter derivative instruments on acceptable terms, and counterparties may be unable to meet their financial obligations under our derivative instruments.

Uncertainties associated with benchmark interest rates could adversely impact our business and results of operations.

We have certain floating-rate obligations, hedging transactions, and floating-rate commercial loans that determine their applicable interest rate or payment amount by reference to a benchmark rate, generally the Secured Overnight Financing Rate (SOFR), which is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities. Any uncertainties associated with these benchmark rates may impact our ability to manage interest rate risk effectively.

Our operations outside the U.S. expose us to additional risks.

Our operations outside the U.S. are subject to many of the same risks as our U.S. operations. In addition to those risks, our non-U.S. operations, including the operations of our joint ventures, are subject to certain additional risks, such as the following:

•economic downturns in foreign countries or geographic regions where we have significant operations, such as Canada, Brazil, Mexico and our joint venture in China;

•multiple foreign regulatory requirements and laws that are subject to change;

•difficulty in establishing, staffing and managing foreign operations;

•differing labor regulations;

•consequences from changes in tax laws;

•restrictions on the ability to repatriate profits or transfer cash into or out of foreign countries and the tax consequences of such repatriations and transfers;

•fluctuations in foreign currencies;

•political and economic instability, social unrest, natural disasters, public health crises, war, and terrorism; and

•compliance with laws and regulations applicable to international operations, including anti-corruption laws such as the U.S. Foreign Corrupt Practices Act and international trade and economic sanctions laws.

The effects of these risks may, individually or in the aggregate, adversely affect our business.

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The effects of these risks may, individually or in the aggregate, adversely affect our business.

We do not control the operations of our investments in joint ventures, and we are subject to the risks of operating in China.

We do not control the operations of our joint ventures, and we do not have a majority interest in the joint ventures. In the joint ventures, we share ownership and management with other parties who may not have the same goals, strategies, priorities, or resources as we do and may compete with us outside the joint ventures. Joint ventures are intended to be operated for the benefit of all co-owners, rather than for our exclusive benefit. Operating a business as a joint venture often requires additional organizational formalities, as well as time-consuming procedures for sharing information and making decisions that must further take into consideration our co-owners' interest. In joint ventures, we are required to foster our relationship with our co-owners as well as promote the overall success of the joint ventures, and if a co-owner changes or relationships deteriorate, our success in the joint ventures may be materially adversely affected. The benefits from a successful joint venture are shared among the co-owners, and as such, we do not receive the full benefits from a successful joint venture. As a result of having limited control over the actions of the joint ventures, we may be unable to prevent misconduct or other violations of applicable laws. Moreover, the joint ventures may not follow the same requirements regarding internal controls and internal control over financial reporting that we follow. To the extent another party makes decisions that negatively impact the joint ventures or internal control issues arise within the joint ventures, we may have to take responsive or other actions, or we may be subject to penalties, fines or other related actions for these activities that could have a material adverse impact on our business, financial condition and results of operations.

In addition, we are subject to the risks of operating in China. The automotive finance market in China is highly competitive and subject to significant governmental regulation. GM faces intense price competition and ana ~~increasingly~~ challenging regulatory environment in China, which negatively impacts GM’s sales volume and profitability in its China operations. In addition, we face intense price competition from other auto lenders in China. As a result of these market challenges and competitive conditions in China, we recorded a $320 million impairment charge during 2024 to write down our SAIC-GMAC Automotive Finance Company Limited (SAIC-GMAC) investment to its fair value. Increased competition, increased U.S.-China trade restrictions and economic conditions in China, among other things, may result in reduced profitability and margins, and challenges to gain or hold market share. In addition, business in China is sensitive to economic and market conditions that drive loan and lease origination volume in China. If our joint ventures are unable to maintain their position in the Chinese market or if vehicle sales in China decrease, our business and financial results could be materially adversely affected.

Pandemics, epidemics, disease outbreaks and other public health crises have disrupted our business and operations, and future public health crises could materially adversely impact our business, financial condition, liquidity and results of operations.

Pandemics, epidemics or disease outbreaks in the U.S. or globally have previously disrupted, and may in the future disrupt, our business, which could materially affect our results of operations, financial condition, liquidity and future expectations. The COVID-19 pandemic adversely affected businesses, economies and financial markets worldwide, placed constraints on the operations of businesses, decreased consumer mobility and activity, and caused significant economic volatility in the United States and international capital markets. Any such similar events may adversely impact our global operations, particularly in North America where our profits are most concentrated. We could experience among other things: lower demand for new and used vehicles, resulting in lower loan and lease origination levels; increased customer defaults on automobile loans and leases; lower than expected pricing on used vehicles sold at auction; and an impaired ability to access credit and the capital markets. Any new pandemic or other public health crisis could have a material impact on our business, financial condition and results of operations going forward.

Risks ~~Related~~related to ~~Cybersecurity~~cybersecurity, ~~Information~~information ~~Technology~~technology and ~~Data~~data ~~Management~~management ~~Practices~~practices

Security breaches, cyberattacks and other disruptions to information technology systems and networks owned or maintained by us, or third parties, such as vendors or suppliers, could ~~interfere~~materially ~~with~~compromise our operations and/or ~~could~~sensitive ~~compromise the confidentiality of private~~ customer data orand ~~our~~ proprietary information.

We rely upon hardware, software and information technology systems and networks, some of which are managed by third parties, to process, transmit and store electronic information and to manage or support a variety of our internal and external-facing business processes, activities, products and services. Additionally, we collect and store sensitive data, including intellectual property and proprietary business information (including that of our vendors), as well as personally identifiable information of our respective customers and employees, in data centers and on information technology networks (including networks that ~~may~~are be controlled or maintained by third parties). The confidentiality, integrity and availability of these systems and networks, and the processing and maintenance of the information processed by these systems and networks, is critical to our business operations and strategy. We face numerous and evolving risks that threaten the confidentiality, integrity and availability of our systems, networks and information, as well as the risk of operational disruption, failure or capacity constraints of any of the third parties that facilitate our business activities, including vendors, service providers, suppliers,

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~~third parties that facilitate our business activities, including vendors, service providers, suppliers,~~ customers, counterparties or other financial intermediaries. Such parties could also be the source of a cyberattack on, or breach of, our operational systems, network, data or infrastructure. Our information technology systems and networks, as well as those of our service providers, are vulnerable to intrusion damage, disruptions or shutdowns caused by attacks by hackers, computer viruses or worms, malware (including ransomware), social engineering attacks (such as phishing), denial of service attacks or breaches due to errors, negligence or malfeasance by employees, contractors and others who have access to or obtain unauthorized access to these systems and networks. Remote and hybrid working arrangements also increase cybersecurity risks due to the challenges associated with managing remote computing assets and security vulnerabilities that are present in many non-corporate and home networks. We are also vulnerable to malicious code that may be embedded in open-source software as well as “bugs,” misconfigurations and other vulnerabilities associated with commercial software that is integrated into our or our service providers’ systems, networks, products or services. Therefore, no assurance can be given that our cybersecurity risk management program and processes, including our policies, controls or procedures, will be fully implemented, complied with or effective in protecting our systems, networks and information.

The occurrence of a major cyberattack or other security incident could materially compromise the confidentiality, integrity and/or availability of critical systems and networks and data that resides within them. Similarly, such an occurrence could result in the compromise or loss of the information processed by these systems and networks. ~~Such~~Significant ~~events could result in, among other things, the~~ loss of proprietary data, critical interruptions or delays in our business operations, and damage to our reputation. Inas ~~addition,~~well ~~such~~as ~~events could increase~~ the risk of claims ~~by regulatory agencies or private parties (including class actions)~~ alleging that we are non-compliant with applicable laws or regulations, ~~subjecting~~expose us to ~~potential~~potentially substantial liability from private litigation or regulatory ~~penalties~~actions and related costs under laws protecting the privacy of personal information ~~and~~or ~~security~~unfair ofor ~~confidential~~deceptive ~~data;~~practices ~~increase~~relating ~~our~~to ~~costs~~consumer ofinformation, ~~compliance~~reputational ~~and~~damage ~~remediation;~~with ~~require~~customers usand ~~to change aspects of our~~ business partners, ~~our~~and ~~systems~~other orrisks ~~our~~to ~~service providers; disrupt~~ our ~~operations;~~business ~~harm our brand~~ and ~~reputation~~competitiveness ~~and/or~~as ~~reduce~~a ~~the~~result ~~competitive~~of ~~advantage~~accelerating wecybersecurity ~~hope to derive from our investment in advanced technologies~~threats. Although we maintain insurance coverage for various cybersecurity risks and liabilities, there can be no guarantee that any or all costs or losses incurred will be partially or fully insured or that applicable insurance in the future will be available on economically reasonable terms or at all.

We and our third-party providers regularly experience cyberattacks and ~~expect~~security toincidents, ~~continue~~such toas ~~experience~~phishing ~~cybersecurity~~ attacks, and ~~security~~we expect cyberattacks and incidents to continue in varying degrees., ~~Although~~including due to the ~~impacts~~rapid evolution and adoption of ~~past~~artificial ~~events~~intelligence (AI). While to date no incidents have ~~been~~had ~~immaterial~~a material impact on our operations or financial results, ~~the~~we ~~impacts~~cannot ofguarantee ~~such~~that ~~events~~material incidents will not occur in the future. ~~may~~Cybersecurity bethreat ~~material.~~actors ~~Cybersecurity~~are ~~threats~~increasingly sophisticated and ~~threat~~are ~~actors~~targeting ~~are~~employees, ~~becoming~~contractors, ~~more~~service ~~sophisticated~~providers, and third parties through various techniques, including but not limited to, social engineering. Such threats are unpredictable as to their timing, nature and scope. As a result, we may be unable to anticipate or prevent future attacks, particularly as the methodologies utilized by attackers change frequently or are not recognized until launched, and we may be unable to investigate or remediate incidents due to the increased use by threat actors of tools and techniques that are designed to circumvent controls, (including through the use of ~~artificial intelligence)~~AI, to avoid detection, and to remove or obfuscate forensic evidence.

Our enterprise data practices, including the collection, use, sharing and security of the personal information of our customers, employees and vendors, are subject to increasingly complex and restrictive regulations in all key market regions.

Data privacy and protection, unfair and deceptive practice laws and similar regulations, including with respect to the use of AI, in many jurisdictions where we do business require that we take significant steps to safeguard such personal information, and these laws and regulations continue to evolve. Under these laws and regulations, which include the federal Gramm-Leach-Bliley Act, the California Consumer Privacy Act of 2018, as amended by the California Privacy Rights Act, and international data protection, privacy, data security, data localization and similar national, state, provincial, and local laws, the failure to maintain compliant data privacy and security practices could result in consumer complaints, lawsuits, and regulatory inquiry, resulting in civil or criminal penalties, as well as have a negative impact on our brand or result in other harm to our business. Customers using our systems rely on the security of our infrastructure, including hardware and other elements provided by third parties, to ensure the protection of their data and to support their operations. In addition, increased consumer sensitivity to real or perceived failures in maintaining acceptable data practices could damage our reputation and deter current and potential customers from using our products and services. The cost of compliance with these laws and regulations will be high and is likely to increase in the future. The growing patchwork of state and country regulations imposes burdensome obligations on companies to quickly respond to consumer requests, such as requests to delete, disclose and stop selling or sharing personal information, with significant fines for noncompliance. The rapid evolution and increased adoption of AI technologies may intensify these risks. Complying with these new laws has significantly increased, and may continue to increase, our operating costs and is driving increased complexity in our operations. In addition to direct liability that we may face in connection with these fast-evolving laws and regulations, both regulators and litigants are increasingly seeking to hold companies liable for their third-party service providers' and vendors' privacy and cybersecurity compliance, particularly in the context of cybersecurity attacks and data breaches.

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Risks ~~Related~~related to ~~Government~~government ~~Regulations~~regulations and ~~Litigation~~litigation

Compliance with laws and regulations can significantly increase our costs and affect how we do business.

We are subject to a wide variety of laws and regulations in the jurisdictions where we operate, including supervision and licensing by numerous governmental entities. These laws and regulations, or changes thereto, can create significant constraints on our operations and result in significant costs related to compliance. Failure to comply with these laws and regulations could impair our ability to continue operating and result in substantial civil and criminal penalties, monetary damages, attorneys’ fees and costs, possible revocation of licenses, and damage to reputation, brand and valued customer relationships.

In the United States, the Dodd-Frank Act imposes significant regulatory oversight on the financial industry and grants the CFPB extensive rulemaking and enforcement authority, all of which may substantially impact our operations. As a “larger participant” in the automobile finance market, we are subject to ~~comprehensive and rigorous on-site examinations by~~ the CFPB.’s ~~Any~~supervisory ~~violations~~authority ofwhich ~~law~~allows orit, ~~unfair~~among ~~lending~~other ~~practices~~things, ~~found~~to ~~during~~conduct ~~these~~comprehensive ~~examinations could result in enforcement actions, fines,~~ and ~~mandated~~rigorous ~~process,~~examinations ~~procedure~~to orassess ~~product-related~~our ~~changes~~compliance orwith consumer ~~refunds~~financial protection laws.

We could be materially adversely affected by significant litigation, governmental investigations or other proceedings.

We are subject to legal proceedings in the U.S. and elsewhere involving various issues, including consumer protection lawsuits, class action litigation, employment litigation, and regulatory investigations. A negative outcome in one or more of these proceedings could result in the imposition of damages, including punitive damages, fines, reputational harm, civil lawsuits and criminal penalties, interruptions of business, modification of business practices, equitable remedies and other sanctions against us or our personnel, as well as legal and other costs, all of which may be significant. For a further discussion of certain of these matters, refer to Note 1011 to our consolidated financial statements.

Climate-related events and climate change legislation could adversely affect our operations.

The effects of climate change and the ongoing efforts to mitigate its impact, including through climate change-related legislation and regulation, could significantly affect our profitability, financial condition and access to the capital markets. Significant physical effects of climate change, such as extreme weather and natural disasters, may affect our customers. For example, customers living in areas affected by extreme weather and natural disasters may suffer financial harm, reducing their ability to make timely payments on their loans and leases. Dealerships and physical auctions that facilitate the disposition of repossessed and returned lease vehicles are also subject to disruption as a result of extreme weather and natural disasters, which could result in an inability to sell such repossessed and returned lease vehicles, or a temporary or permanent decline in the market value of those vehicles. In addition, extreme weather and natural disasters may have effects on the automobile finance industry or economy due to the interdependence of market factors. If such extreme weather or a natural disaster were to occur in a geographic region in which a large number of customers are located, these risks would be exacerbated. Further, changes to laws or regulations enacted to address the potential impacts of climate change (including laws which may adversely impact the automobile industry ~~in particular as a result of efforts to mitigate the factors contributing to climate change~~, as well as some remaining constraints related to lending on greenhouse gas-emitting products) could have an adverse impact on our financial condition and results of operations.

~~Reporting~~At ~~expectations~~the ~~are~~state ~~also~~and ~~increasing,~~federal ~~with~~level ain ~~variety~~the ofU.S. ~~capital~~and ~~providers~~abroad, ~~regulators, and other stakeholders seeking increased information on climate~~sustainability-related ~~risks~~rules and ~~impacts.~~regulations ~~For~~are ~~example,~~facing ~~various~~legal ~~policymakers,~~scrutiny. ~~have~~Such ~~adopted~~regulations ormay ~~are~~cause ~~considering~~disclosure ~~adopting,~~ requirements ~~for companies~~ to ~~provide~~shift ~~significantly~~and ~~expanded climate-related disclosures, which~~ may ~~require~~increase usthe torisk ~~incur~~of ~~significant~~litigation ~~additional~~or ~~costs~~regulatory ~~and~~action, ~~establish~~which ~~novel~~would ~~procedures~~result ~~for~~in ~~internal~~increased ~~controls~~costs and ~~oversight~~risks to ~~comply~~our reputation.

We may incur additional tax expense, or become subject to additional tax exposure, or fail to fully realize available tax incentives.

We are subject to the tax laws and regulations of the U.S. and numerous other jurisdictions in which we do business. Many judgments are required in determining our worldwide provision for income taxes and other tax liabilities, and we are regularly under audit by the U.S. Internal Revenue Service and other tax authorities, which may not agree with our tax positions. In addition, our tax liabilities are subject to other significant risks and uncertainties, including those arising from potential changes in laws and regulations in the U.S. and other countries in which we do business ~~(for example~~, the ~~Organisation for Economic Co-Operation and Development proposals, including the introduction of global minimum tax standards), the~~ possibility of ~~tax controversy related to~~ adverse determinations with respect to the application of existing laws ~~(in particular with respect to full realization of the incentives contemplated by the Inflation Reduction Act of 2022)~~, changes in our business or structure and changes in the valuation of our deferred tax assets and liabilities. Any unfavorable resolution of these and other uncertainties may have a significant adverse impact on our tax rate and results of operations. If our tax expense were to increase, or if the ultimate determination of our taxes owed is for an amount in excess of amounts previously accrued, our ~~operating~~ results of operations, cash flows, and financial condition could be adversely affected.

Item 1B. Unresolved Staff Comments

None.

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Item 1B. Unresolved Staff Comments

None.

Item 1C. Cybersecurity

Cybersecurity Risk Management and Strategy

We recognize the importance of assessing, identifying, and managing material risks associated with cybersecurity threats. We have developed and implemented a cybersecurity risk management program intended to protect the confidentiality, integrity, and availability of our critical systems and information.

We design and assess our program based on the National Institute of Standards and Technology Cybersecurity Framework (NIST CSF). This does not imply that we meet any particular technical standards, specifications, or requirements, but rather that we use the NIST CSF as a guide to help us identify, assess, and manage cybersecurity risks relevant to our business.

Our cybersecurity risk management program is aligned towith the Company’s business strategy. It shares common methodologies, reporting channels and governance processes that apply to other areas of enterprise risk, including legal, compliance, strategic, operational, and financial risk. Key elements of our cybersecurity risk management program include:

•risk assessments designed to help identify material cybersecurity risks to our critical systems, information, products, services, and our broader enterprise information technology environment;

•a security team principally responsible for managing our cybersecurity risk assessment processes, our security controls, and our response to cybersecurity incidents;

•the use of external service providers, where appropriate, to assess, test or otherwise assist with aspects of our security controls;

•training and awareness programs for team members that include periodic and ongoing assessments to drive adoption and awareness of cybersecurity processes and controls;

•a cybersecurity incident response plan that includes procedures for responding to cybersecurity incidents; and

•a third-party risk management process for service providers, suppliers, and vendors.

InThe ~~the last three fiscal years, the~~ Company has not experienced any material cybersecurity incidents, and expenses incurred from cybersecurity incidents were immaterial. For a discussion of whether and how any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, have materially affected or, if realized, are reasonably likely to materially affect us, including our business strategy, results of operations or financial condition, refer to Item 1A. Risk Factors – "Risks Related to Cybersecurity, Information Technology and Data Management Practices," which is incorporated by reference into this Item 1C.

Cybersecurity Governance

The GM Board of Directors established its Risk and Cybersecurity Committee with specific responsibility for overseeing cybersecurity threats, among other things. Our Global Chief Information Security Officer provides the Risk and Cybersecurity Committee periodic reports on our cybersecurity risks and any material cybersecurity incidents. In addition, our cybersecurity team provides periodic reports to our Board of Directors.

Our team of cybersecurity professionals is led by our Global Chief Information Security Officer, who has over 20 years of experience in the cybersecurity space and has obtained professional security certifications and advanced training in the field of cybersecurity and technology. The cybersecurity team has primary responsibility for our overall cybersecurity risk management program and supervises both our internal cybersecurity personnel and our retained external cybersecurity consultants.

Our cybersecurity team also monitors the prevention, detection, mitigation, and remediation of cybersecurity risks and incidents through various means, which may include briefings with internal security personnel, threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us, and alerts and reports produced by security tools deployed in the information technology environment.

Item 2. Properties

Our executive offices are located in Fort Worth, Texas. We operate credit centers, collections and customer service centers and administrative offices, primarily in North America and Latin America.

Item 3. Legal Proceedings

Refer to Note 11 to our consolidated financial statements for information relating to legal proceedings.

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Item 3. Legal Proceedings

Refer to Note 10 to our consolidated financial statements for information relating to legal proceedings.

Item 4. Mine Safety Disclosures

Not applicable.

PART II

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

All of our common stock is owned by General Motors Holdings LLC, a wholly-owned subsidiary of GM; therefore, there is no public trading market for our common stock. Dividends are payable at the sole discretion of our Board of Directors and will depend on several factors, including, but not limited to, business and economic conditions, our financial condition, earnings, liquidity ~~requirements~~targets and leverage ratio.

Item 6. [Reserved]

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

General We are a global provider of automobile finance solutions, and we operate in the auto finance market as the wholly-owned captive finance subsidiary of GM. We evaluate our business in two reportable segments: the North America Segment, which includes our operations in the U.S. and Canada, and the International Segment, which includes operations in Brazil, Chile, Colombia, Mexico and Peru, as well as our equity investments in joint ventures in China.

Critical Accounting Estimates

The preparation of 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. Refer to Note 1 to our consolidated financial statements for our significant accounting policies related to our critical accounting estimates. The accounting estimates that we believe are the most critical to understanding and evaluating our reported financial results include the following:

Allowance for Loan Losses Our retail finance receivables portfolio consists of smaller-balance, homogeneous loans that are carried at amortized cost basis, net of allowance for loan losses. The allowance for loan losses on retail finance receivables reflects net credit losses expected to be incurred over the remaining life of the retail finance receivables, which have a weighted average remaining life of approximately two years. We forecast net credit losses based on relevant information about past events, current conditions and forecast economic performance. We believe that the allowance is adequate to cover expected credit losses on the retail finance receivables; however, because the allowance for loan losses is based on estimates, there can be no assurance that the ultimate charge-off amount will not exceed such estimates or that our credit loss assumptions will not increase.

The severity of net credit losses is determined by the amounts we are able to recover when we sell the collateral underlying loans that have been charged off. The recovery rate is the percentage of the unpaid principal balance that we collect, primarily through auction proceeds. We incorporate our outlook on ~~forecast~~ recovery rates ~~and overall economic performance~~ in our retail allowance estimate. Each 5% relative decrease/increase in our forecast recovery rates would increase/decrease our U.S. allowance for loan losses by $96106 million.

AtWe ~~December 31,~~also ~~2024,~~incorporate ~~the~~our ~~weightings~~outlook weon ~~applied~~overall ~~to the~~ economic ~~forecast~~performance, ~~scenarios~~based ~~considered~~on ~~resulted~~weightings inapplied anto ~~allowance~~several ~~for~~scenarios, ~~loan~~in ~~losses on~~ our ~~U.S.~~ retail ~~finance~~allowance ~~receivables portfolio of $2~~estimate.1 ~~billion.~~ If the forecast economic conditions were based entirely on the weakest scenario we considered, the U.S. allowance for loan losses would increase by $~~150~~169 million. Actual economic data and recovery rates that are worse/lower than those we forecast could result in an increase in the allowance for loan losses.

Our commercial finance receivables portfolio consists of financing products for dealers and other businesses. We provide commercial lending products to our dealer customers that include floorplan financing, also known as wholesale or inventory financing, which is lending to finance vehicle inventory. We also provide dealer loans, which are loans to finance improvements to dealership facilities, to provide working capital, or to purchase and/or finance dealership real estate. Additionally, we provide lending products to commercial vehicle upfitters and advances to certain GM subsidiaries. The allowance for loan losses on commercial finance receivables is based on historical loss experience for the consolidated portfolio, in addition to forecasted auto industry conditions. There can be no assurance that ~~the~~ ultimate charge-off ~~amount~~amounts will not exceed such estimates or that our credit loss assumptions will not increase.

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not exceed such estimates or that our credit loss assumptions will not increase.

Residual Value of Leased Vehicles We have investments in leased vehicles recorded as operating leases. Each leased asset in our portfolio represents a vehicle that we own and have leased to a customer. At the inception of a lease, we establish an expected residual value for the vehicle at the end of the lease term, which typically ranges from one to five years. We estimate the expected residual value based on third-party data that considers various data points and assumptions, including, but not limited to, recent auction values, the expected future volume of returning leased vehicles, significant liquidation of rental or fleet inventory, used vehicle prices, manufacturer incentive programs and fuel prices. Depreciation reduces the carrying value of each leased asset in our leased vehicles portfolio over time from its original acquisition value to its expected residual value at the end of the lease term.

During the term of a lease, we periodically evaluate the estimated residual value and may adjust the value downward, which increases the prospective depreciation, or upward (limited to the contractual residual value), which decreases the prospective depreciation.

The customer is obligated to make payments during the lease term for the difference between the purchase price and the contract residual value plus a money factor. However, since the customer is not obligated to purchase the vehicle at the end of the contract, we are exposed to a risk of loss to the extent the customer returns the vehicle prior to or at the end of the lease term and the proceeds we receive on the disposition of the vehicle are lower than the residual value estimated at the inception of the lease. Realization of the residual values is dependent on our future ability to market the vehicles under prevailing market conditions.

At December 31, ~~2024~~2025, the estimated residual value of our leased vehicles was $2325.50 billion. If used vehicle prices weaken compared to our estimates, we would increase depreciation expense and/or record an impairment charge on our lease portfolio. If an impairment exists, we would determine any shortfall in recoverability of our leased vehicle asset groups by year, make and model. Recoverability is calculated as the excess of (1) the sum of remaining lease payments, plus estimated residual value, over (2) leased vehicles, net, less deferred income. Alternatively, if used vehicle prices outperform our latest estimates, we may record gains on sales of off-lease vehicles and/or decreased depreciation expense.

We reviewed our leased vehicles portfolio for indicators of impairment and determined that no ~~material~~ impairment indicators were present at December 31, ~~2024~~2025 or ~~2023~~2024.

The following table illustrates the effect of a 1% relative change in the estimated residual values at December 31, ~~2024~~2025, which could increase or decrease depreciation expense over the remaining term of our leased vehicles portfolio, holding all other assumptions constant. Changes to residual values are rarely simultaneous across all maturities and segments, and also may impact return rates. If a decrease in residual values is concentrated among specific asset groups, the decrease could result in an immediate impairment charge.

	Years Ending December 31,
	2025		2026		2027		2028 and Thereafter		Total
	2026		2027		2028		2029 and Thereafter		Total
Impact to depreciation expense	$	~~158~~174	$	60	$	1615	$	1	$	~~235~~250

Income Taxes We are subject to income tax in the U.S. and numerous other state and foreign jurisdictions. Refer to Note 1415 to our consolidated financial statements for more information relating to our tax sharing agreement with GM for our U.S. operations.

We account for income taxes on a separate return basis using an asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences attributable to differences between financial statements' carrying amounts of existing assets and liabilities and their respective tax basis, net operating loss and tax credit carryforwards. A valuation allowance is recognized if it is more likely than not that some portion or the entire deferred tax asset will not be realized.

In the ordinary course of business, there may be transactions, calculations, structures and filing positions where the ultimate tax outcome is uncertain. At any point in time, multiple tax years are subject to audit by various taxing jurisdictions, and we record liabilities for estimated tax results based on the requirements of the accounting for uncertainty in income taxes. We believe the estimates recorded are reasonable. However, due to expiring statutes of limitations, audits, settlements, changes in tax law or new authoritative rulings, no assurance can be given that the final outcome of these matters will be comparable to what was reflected in the historical income tax provisions and accruals. We may need to adjust our accrued tax assets or liabilities if actual results differ from estimated results or if we adjust the assumptions used in the computation of the estimated tax results in the future. These adjustments could materially impact the effective tax rate, earnings, accrued tax balances and cash.

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tax results in the future. These adjustments could materially impact the effective tax rate, earnings, accrued tax balances and cash.

The ability to realize deferred tax assets depends on the ability to generate sufficient taxable income within the carryback or carryforward periods provided for in the tax law for each applicable tax jurisdiction. The assessment regarding whether a valuation allowance is required or should be adjusted is based on an evaluation of possible sources of taxable income and also considers all available positive and negative evidence factors. Our accounting for deferred tax consequences represents our best estimate of future events. Changes in our current estimates, due to unanticipated market conditions or events, could have a material effect on our ability to utilize deferred tax assets.

Results of Operations

This section discusses our results of operations for the year ended December 31, ~~2024~~2025 as compared to the year ended December 31, ~~2023~~2024. For a discussion and analysis of the year ended December 31, ~~2023~~2024, compared to the same period in ~~2022~~2023, please refer to Management's Discussion and Analysis of Financial Condition and Results of Operations included in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, ~~2023~~2024, filed with the SEC on January 3028, ~~2024~~2025.

Key Drivers ~~Income~~Earnings before ~~income~~ taxes, ~~for~~adjusted ~~2024~~was ~~decreased to~~ $2.68 billion ~~from~~and $3.0 billion for ~~2023.~~2025 ~~Key~~and ~~drivers~~2024. ofChanges ~~the decrease~~ in ~~income~~key ~~before~~drivers ~~income taxes~~ include the following:

•Finance charge income on retail finance receivables increased $~~1.1~~626 ~~billion~~million primarily due to anincreases ~~increase~~ in the effective yield and ~~growth~~average inbalance ~~the size~~ of the portfolio. The effective yield on our retail finance receivables increased primarily due to increased average interest rates on new loan originations.

•Finance charge income on commercial finance receivables ~~increased~~decreased $~~411~~121 million primarily due to a decrease in the effective yield resulting from lower short-term benchmark rates, partially offset by an increase in the ~~size~~average balance of the portfolio.

•~~Other~~Leased vehicle income increased $~~155~~503 million primarily due to ~~higher investment income resulting from~~ an increase in the average ~~investment~~ balance ~~and~~of ~~growth~~the inleased ~~vehicle~~vehicles ~~protection contract sales~~portfolio.

•~~Equity~~Other income ~~decreased~~increased $74177 million primarily due to ~~lower~~an ~~earning~~increase ~~asset~~in ~~levels~~earned atpremiums ~~our~~and ~~joint~~fees ~~ventures~~on invehicle ~~China~~protection contracts.

•Interest expense increased $~~1.3~~462 ~~billion~~million primarily due to an increase in the ~~effective rate of interest on our debt, resulting from higher benchmark rates on new issuances relative to maturing debt, as well as an increase in the~~ average debt outstanding.

•~~Provision~~Operating ~~for~~expenses ~~loan losses~~ increased $~~203~~404 million primarily due to ~~increased~~investments ~~loan~~in ~~origination~~the ~~volume~~insurance and ~~moderating~~vehicle ~~credit~~protection ~~performance~~businesses and ~~recovery~~increases ~~rates~~in the related claims expense, as well as a non-recurring reserve release in 2024.

•~~Impairment~~Leased ~~charge~~vehicle ofexpenses increased $~~320~~278 million ~~recorded~~primarily ~~during~~due ~~2024~~ to ~~write~~a ~~down~~decrease ~~our~~in ~~SAIC-GMAC~~lease ~~investment~~termination togains ~~its~~and ~~fair~~increased ~~value~~depreciation resulting from an increase in the average balance of the leased vehicles portfolio.

~~For~~•Provision ~~the~~for ~~year~~loan ~~ending~~losses ~~December~~increased ~~31,~~$178 ~~2025,~~million weprimarily ~~expect~~due to ~~recognize~~a ~~income~~shift ~~before income taxes~~ in the ~~$2.5~~credit ~~billion~~mix toof ~~$3.0~~loan ~~billion range~~originations.

Average Earning Assets	Years Ended December 31,				2024 vs. 2023
	2024		2023		Amount		Percentage
Average retail finance receivables	$	73,917	$	69,678	$	4,239	6.1	%
Average commercial finance receivables	16,704		11,646		5,058		43.4	%
Average finance receivables	90,621		81,324		9,297		11.4	%
Average leased vehicles, net	30,641		31,521		(879)		(2.8)	%
Average earning assets	$	121,262	$	112,845	$	8,417	7.5	%
Retail finance receivables purchased	$	36,960	$	35,977	$	983	2.7	%
Leased vehicles purchased	$	19,089	$	17,113	$	1,976	11.5	%

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.

Average retail finance receivables increased primarily due to new loan originations in excess of principal collections and payoffs. Our penetration of GM's retail sales in the U.S. was 38.9% and 41.5% in 2024 and 2023. Penetration levels vary depending on incentive financing programs available and competing third-party financing products in the market.


Average Earning Assets	Years Ended December 31,				2025 vs. 2024
	2025		2024		Amount		Percentage
Average retail finance receivables	$	76,717	$	73,917	$	2,800	3.8	%
Average commercial finance receivables	17,203		16,704		499		3.0	%
Average finance receivables	93,920		90,621		3,299		3.6	%
Average leased vehicles, net	32,925		30,641		2,283		7.5	%
Average earning assets	$	126,844	$	121,262	$	5,582	4.6	%

Retail finance receivables purchased	$	36,314	$	36,960	$	(646)	(1.7)	%
Leased vehicles purchased	$	19,567	$	19,089	$	478	2.5	%

Average retail finance receivables increased primarily due to new loan originations in excess of principal collections and payoffs. Our penetration of GM's retail sales in the U.S. was 33.3% and 38.9% in 2025 and 2024. Penetration levels vary depending on incentive financing programs available and competing third-party financing products in the market.

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Average commercial finance receivables increased primarily due to ~~growth in the average amount financed per dealer, resulting from increased new vehicle inventory, as well as~~ higher floorplan penetration. Our floorplan dealer penetration in the U.S. was 4748.5% and 4547.75% at December 31, ~~2024~~2025 and ~~2023~~2024.

Leased vehicles purchased increased primarily due to growth in GM sales, ~~higher lease sales mix~~ and higher net capitalized cost, partially offset by lower lease sales mix.

Revenue	Years Ended December 31,						~~2024~~2025 vs. ~~2023~~2024
	2024			2023			Amount		Percentage
	2025			2024			Amount		Percentage
Finance charge income
Retail finance receivables	$	6,~~309~~934		$	56,~~255~~309		$	~~1,053~~626	209.09	%
Commercial finance receivables	$	1,~~360~~239		$	~~949~~1,360		$	~~411~~(121)	43(8.39)	%
Leased vehicle income	$	7,~~297~~800		$	7,~~266~~297		$	31503	06.49	%
Other income	$	~~909~~1,086		$	~~754~~909		$	~~155~~177	2019.65	%
Equity income	$	6439		$	~~138~~64		$	(7425)	(5339.40)	%
Effective yield - retail finance receivables	89.50		%	78.5		%
Effective yield - commercial finance receivables	87.12		%	8.1		%

Finance Charge Income - Retail Finance Receivables Finance charge income on retail finance receivables increased primarily due to anincreases ~~increase~~ in the effective yield and ~~growth~~average inbalance ~~the size~~ of the portfolio. The effective yield on our retail finance receivables increased primarily due to increased average interest rates on new loan originations. 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 ~~increased~~decreased primarily due to a decrease in the effective yield resulting from lower short-term benchmark rates, partially offset by an increase in the ~~size~~average balance of the portfolio.

~~Other~~Leased Vehicle Income ~~Other~~Leased vehicle income increased primarily due to ~~higher investment income resulting from~~ an increase in the average ~~investment~~ balance ~~and~~of ~~growth~~the inleased ~~vehicle~~vehicles ~~protection contract sales~~portfolio.

~~Equity~~Other Income ~~Equity~~Other income ~~decreased~~increased ~~$74 million~~ primarily due to ~~lower~~an ~~earning~~increase ~~asset~~in ~~levels~~earned atpremiums ~~our~~and ~~joint~~fees ~~ventures~~on invehicle ~~China.~~protection contracts.

Costs and Expenses	Years Ended December 31,						~~2024~~2025 vs. ~~2023~~2024
	2024			2023			Amount		Percentage
	2025			2024			Amount		Percentage
Operating expenses	$	12,~~802~~206		$	1,~~818~~802		$	~~(15)~~404	(022.8)4	%
Leased vehicle expenses	$	4,~~113~~391		$	4,~~047~~113		$	66278	1.6.8	%
Provision for loan losses	$	1,~~029~~207		$	~~826~~1,029		$	~~203~~178	2417.53	%
Interest expense	$	6,~~030~~492		$	46,~~685~~030		$	~~1,345~~462	287.7	%
Average debt outstanding	$	~~108~~116,~~962~~475		$	~~100~~108,~~409~~962		$	87,~~553~~513	86.59	%
Effective rate of interest on debt	5.56		%	45.75		%

Operating Expenses Operating expenses as ana ~~annualized~~ percentage of average earning assets were 1.57% and 1.65% for 2025 and 2024. Operating expenses increased primarily due to investments in the insurance and ~~2023~~vehicle protection businesses and increases in the related claims expense, as well as a non-recurring reserve release in 2024.

~~Provision~~Leased ~~for~~Vehicle ~~Loan~~Expenses ~~Losses~~Leased ~~Provision~~vehicle ~~for~~expenses ~~loan~~increased ~~losses~~primarily due to a decrease in lease termination gains and increased depreciation resulting from an increase in the average balance of the leased vehicles portfolio. The decrease in gains is primarily due to ~~increased~~a ~~loan~~decrease ~~origination~~in ~~volume~~the ~~and~~average ~~moderating~~gain ~~credit~~on ~~performance~~the ~~and~~sale ~~recovery~~of ~~rates~~leased vehicles as well as fewer terminated leases in 2025.

~~Interest~~Provision ~~Expense~~for ~~Interest~~Loan ~~expense~~Losses Provision for loan losses increased primarily due to ana ~~increase~~shift in the ~~effective~~credit ~~rate~~mix of ~~interest~~loan ~~on our debt, resulting from higher benchmark rates on new issuances relative to maturing debt, as well as an increase in the average debt outstanding~~originations.

~~Taxes~~Interest ~~Our~~Expense ~~consolidated~~Interest ~~effective~~expense ~~income~~increased ~~tax~~primarily ~~rates~~due ~~were 27.0% and 26.0% of income before income taxes and equity income for 2024 and 2023. Refer~~ to ~~Note~~an 14increase toin ~~our~~the ~~consolidated~~average ~~financial~~debt ~~statements for tax rate reconciliation~~outstanding.

~~Impairment~~Taxes ofOur ~~investment~~consolidated ineffective ~~nonconsolidated~~income ~~affiliate~~tax GMrates ~~continues~~were to26.5% ~~face intense price competition~~ and an29.7% ~~increasingly~~of ~~challenging~~income ~~regulatory~~before ~~environment~~income intaxes ~~China,~~for ~~which~~2025 ~~negatively impacts GM’s sales volume~~ and ~~profitability in its China operations~~2024. InRefer ~~addition,~~to weNote ~~face~~15 ~~intense~~to ~~price~~our ~~competition~~consolidated ~~from~~financial ~~other~~statements ~~auto~~for ~~lenders~~tax inrate ~~China~~reconciliation. ~~As a result of these market~~

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Impairment of investment in nonconsolidated affiliate During 2024, in response to market challenges and competitive conditions, GM and its joint venture partners restructured their operations in China. Accordingly, we ~~recorded~~evaluated aour ~~$320~~investment ~~million~~in SAIC-GMAC for potential impairment, ~~charge~~and towe ~~write~~determined ~~down~~the ~~our~~carrying ~~SAIC-GMAC~~value of our investment toexceeded its fair value. We concluded that the loss in value was other-than-temporary and recorded an impairment charge of $320 million.

Other Comprehensive Income (Loss)

Unrealized Gain (Loss) on Hedges Unrealized gain (loss) on hedges included in other comprehensive income (loss) was $81(144) million and $1881 million for ~~2024~~2025 and ~~2023~~2024. 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 Adjustment Foreign currency translation adjustments included in other comprehensive income (loss) were $~~(403)~~274 million and $~~147~~(403) million for ~~2024~~2025 and ~~2023~~2024. Translation adjustments resulted from changes in the values of our ~~international~~foreign currency~~-denominated~~ assets and liabilities as the value of the U.S. Dollar changed in relation to international currencies. The foreign currency translation ~~loss~~gain for ~~2024~~2025 was primarily due to ~~depreciating~~appreciating values of the Mexican Peso, Brazilian Real, ~~Canadian~~Chinese ~~Dollar~~Yuan Renminbi, and ~~Chinese~~Canadian ~~Yuan~~Dollar ~~Renminbi~~ in relation to the U.S. Dollar. The foreign currency translation ~~gain~~loss for ~~2023~~2024 was primarily due to ~~appreciating~~depreciating values of the Mexican Peso, ~~and~~ Brazilian Real, Canadian Dollar, and Chinese Yuan Renminbi in relation to the U.S. Dollar.

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:

	December 31, 2024					December 31, 2023
	December 31, 2025					December 31, 2024
	Amount			Percent		Amount			Percent
Prime - FICO Score 680 and greater	$	5856,~~067~~440		7674.39	%	$	5458,~~882~~067		7576.53	%
Near-prime - FICO Score 620 to 679	89,~~990~~303			1112.83		8,~~647~~990			11.98
Sub-prime - FICO Score less than 620	9,~~008~~661			1112.8		9,~~200~~008			1211.68
Retail finance receivables	7675,~~066~~404			100.0	%	7276,~~729~~066			100.0	%
Less: allowance for loan losses	(2,~~400~~656)					(2,~~308~~400)
Retail finance receivables, net	$	7372,~~667~~748				$	7073,~~421~~667
Number of outstanding contracts	3,~~285~~194,~~728~~917					3,~~121~~285,~~144~~728
Average amount of outstanding contracts (in dollars)(a)	$	23,~~151~~601				$	23,~~302~~151
Allowance for loan losses as a percentage of retail finance receivables	3.25		%			3.2		%

_________________

(a)Average amount of outstanding contracts is calculated as retail finance receivables, divided by number of outstanding contracts.

The increase in the allowance for loan losses as a percentage of retail finance receivables is primarily due to changes in the composition of credit mix of the portfolio.

Delinquency The following is a consolidated summary of delinquent retail finance receivables:

	December 31, 2024				December 31, 2023
	December 31, 2025				December 31, 2024
	Amount		Percent		Amount		Percent
31 - 60 days	$	12,~~885~~011	2.57	%	$	1,~~637~~885	2.35	%
Greater than 60 days	~~677~~795		01.91		~~559~~677		0.89
Total finance receivables more than 30 days delinquent	2,~~562~~806		3.47		2,~~196~~562		3.04
In repossession	6675		0.1		6166		0.1
Total finance receivables more than 30 days delinquent or in repossession	$	2,~~628~~881	3.58	%	$	2,~~257~~628	3.15	%

Loan Modifications Loan modifications extended to borrowers experiencing financial difficulty were insignificant for 2024 and 2023. Refer to Note 1 and Note 3 to our consolidated financial statements for further information on loan modifications.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

Loan Modifications Loan modifications extended to borrowers experiencing financial difficulty were insignificant for 2025 and 2024. Refer to Note 1 and Note 4 to our 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:

	Years Ended December 31,
	2024			2023
	2025			2024
Charge-offs	$	1,~~754~~998		$	1,~~423~~754
Less: recoveries	(~~901~~1,035)			(~~767~~901)
Net charge-offs	$	~~853~~963		$	~~656~~853
Net charge-offs as an annualized percentage of average retail finance receivables	1.2		%	0.9		%
Net charge-offs as a percentage of average retail finance receivables	1.3		%	1.2		%

Net charge-offs for 2024 increased compared to 2023, due to moderating credit performance and recovery rates.


Commercial Finance Receivables	December 31, 2025			December 31, 2024
Commercial finance receivables	$	17,365		$	19,901
Less: allowance for loan losses	(68)			(58)
Commercial finance receivables, net	$	17,297		$	19,843
Number of dealers	2,554			2,537
Average carrying amount per dealer	$	7		$	8
Allowance for loan losses as a percentage of commercial finance receivables	0.4		%	0.3		%

Commercial Finance Receivables	December 31, 2024			December 31, 2023
Commercial finance receivables	$	19,901		$	14,251
Less: allowance for loan losses	(58)			(36)
Commercial finance receivables, net	$	19,843		$	14,216
Number of dealers	2,537			2,512
Average carrying amount per dealer	$	8		$	6
Allowance for loan losses as a percentage of commercial finance receivables	0.3		%	0.3		%

Substantially all of our commercial finance receivables were current with respect to payment status at December 31, 2025 and 2024. No commercial loans were modified for 2025 and 2024.

No commercial loans were modified for 2024 and 2023. Activity in the allowance for commercial loan losses was insignificant for 2024 and 2023, and substantially all of our commercial finance receivables were current with respect to payment status at December 31, 2024 and 2023.

Leased Vehicles The following table summarizes activity in our operating lease portfolio (in thousands, except where noted):

	Years Ended December 31,
	2024		2023
	2025		2024
Operating leases purchased	~~393~~375		~~372~~393
Operating leases terminated	~~410~~365		~~505~~410
Operating leased vehicles returned(a)	9996		5499
Percentage of leased vehicles returned(b)	2426	%	1124	%

________________

(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. Return rates for ~~2024~~2025 increased compared to ~~2023~~2024 due to decreased used vehicle values. The return rates continued to be lower than historical levels as used vehicle prices have generally remained higher than contractual residual values. Gains on terminations of leased vehicles were $~~758~~586 million for ~~2024~~2025 compared to $~~878~~758 million for ~~2023~~2024. The decrease in gains is primarily due to a decrease in the average gain on the sale of leased vehicles as well as fewer terminated leases ~~during~~in ~~2024~~2025.

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~~segment (units in thousands):

	December 31, 2024					December 31, 2023
	December 31, 2025					December 31, 2024
	Residual Value		Units	Percentage of Units		Residual Value		Units	Percentage of Units
Crossovers	$	13,~~184~~145	~~635~~617	6764.38	%	$	1213,~~830~~184	~~648~~635	67.53	%
Trucks	78,~~458~~702		~~224~~254	2326.76		67,~~793~~458		~~210~~224	2123.97
SUVs	2,~~260~~619		5356	5.69		2,~~304~~260		5853	65.06
Cars	~~590~~515		3126	32.37		~~734~~590		4431	43.63
Total	$	2324,~~492~~981	~~943~~952	100.0	%	$	2223,~~661~~492	~~960~~943	100.0	%

At December 31, ~~2024~~2025 and ~~2023~~2024, 99residual values of leased EVs represented 21.31% and 10.0% of total residual values. At both December 31, 2025 and 2024, 99.43% of our operating leases were current with respect to payment status.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

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. Refer to Note 78 to our consolidated financial statements for information regarding our material cash requirements for debt contractual obligations.

The following table summarizes our available liquidity:

Liquidity	December 31, ~~2024~~2025		December 31, ~~2023~~2024
Cash and cash equivalents(a)	$	5,094	$	5,282
Cash, cash equivalents and marketable debt securities(a)	$	5,866	$	5,094
Borrowing capacity on unpledged eligible assets	21,548		21,946
Available capacity under secured credit facilities	25,924		21,548
Borrowing capacity on committed unsecured lines of credit	665		687
Available under committed unsecured credit facilities	967		665
Borrowing capacity on the Junior Subordinated Revolving Credit Facility	1,000		1,000
Available under the Junior Subordinated Revolving Credit Facility	1,000		1,000
Borrowing capacity on the GM Revolving 364-Day Credit Facility	2,000		2,000
Available under the GM Revolving 364-Day Credit Facility	2,000		2,000
Available liquidity	$	3035,~~307~~756	$	30,~~915~~307

_________________

(a)Includes $~~389~~368 million and $~~380~~389 million in unrestricted cash outside of the U.S. at December 31, ~~2024~~2025 and ~~2023~~2024, 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. At December 31, 2025, available liquidity increased from December 31, 2024, primarily due to increased available capacity under secured credit facilities and an increase in cash and cash equivalents. Available capacity under secured credit facilities increased due to paydowns resulting from the issuance of securitization transactions and unsecured debt. 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 December 31, ~~2024~~2025, available liquidity exceeded our liquidity targets.

Cash Flows The following table summarizes our cash flow activities. ~~For further detail, please refer to the Condensed Consolidated Statements of Cash Flows.~~

	Years Ended December 31,				~~2024~~2025 vs. ~~2023~~2024
	2024		2023
	2025		2024
Net cash provided by (used in) operating activities	$	67,~~429~~979	$	6,~~662~~429	$	~~(233)~~1,550
Net cash provided by (used in) investing activities	$	(152,~~418~~527)	$	(1015,~~882~~418)	$	(412,~~536)~~891
Net cash provided by (used in) financing activities	$	8(4,~~950~~563)	$	58,~~724~~950	$	3(13,~~226~~513)

~~During~~The ~~2024,~~following table summarizes our net cash provided by (used in) operating activities. ~~decreased~~For ~~primarily~~further ~~due~~detail toon anour ~~increase in interest paid, a~~ net ~~decrease in~~ cash provided by ~~counterparty~~(used ~~derivative~~in) ~~collateral~~investing ~~posting activities~~ and anfinancing ~~increase~~activities, inplease ~~acquisition~~refer ~~costs related~~ to ~~vehicle~~the ~~protection~~Consolidated ~~contracts,~~Statements ~~partially~~of ~~offset~~Cash ~~by an increase in finance charge income~~Flows.

Credit Ratings We receive ratings from four independent credit rating agencies: DBRS Limited, Fitch Rating (Fitch), Moody’s Investors Service (Moody’s) and Standard & Poor’s (S&P). The credit ratings assigned to us from all the credit rating agencies are closely associated with their opinions on GM. The following table summarizes our credit ratings at January 16, 2025:

Company Rating

Bond Rating

Short Term Rating

Outlook

DBRS Limited

BBB (High)

R-2 (High)

Stable

Fitch(a)

BBB

Positive

Moody’s

Baa2

P-2

Stable

S&P

BBB

A-2

Stable

_________________

(a)Fitch revised its outlook to Positive from Stable in October 2024.

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GENERAL MOTORS FINANCIAL COMPANY, INC.


	Years Ended December 31,				2025 vs. 2024
Operating Activities	2025		2024
Net income (loss)	$	2,058	$	1,860	$	198
Depreciation and amortization	5,314		5,249		65
Accretion and amortization of loan and leasing fees	(1,610)		(1,490)		(120)
Provision for loan losses	1,207		1,029		178
Other non-cash income	(593)		(369)		(225)
Changes in assets and liabilities	1,193		(911)		2,104
Deferred income taxes	411		1,061		(650)
Net cash provided by (used in) operating activities	$	7,979	$	6,429	$	1,550

Company Rating

Bond Rating

Short Term Rating

Outlook

DBRS Limited

BBB (High)

R-2 (High)

Stable

Fitch

BBB

Positive

Moody’s

Baa2

P-2

Stable

S&P

BBB

A-2

Stable

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 December 31, ~~2024~~2025, credit facilities consist of the following:

Facility Type	Facility Amount		Advances Outstanding
Revolving retail asset-secured facilities(a)	$	22,654	$	5,090
Secured debt(a)	$	27,845	$	1,869
Revolving commercial asset-secured facilities(b)	4,418		337
Unsecured debt(b)	3,830		2,863
Total secured	27,072		5,426
Unsecured committed facilities	695		30
Unsecured uncommitted facilities(c)	2,148		2,148
Total unsecured	2,843		2,178
Junior Subordinated Revolving Credit Facility	1,000		—
GM Revolving 364-Day Credit Facility	2,000		—
Total	$	3234,~~915~~675	$	74,~~604~~732

_________________

(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., Weand ~~had~~ no ~~advances~~unused ~~outstanding~~borrowing ~~and~~capacity ~~$513~~is ~~million~~included in ~~unused~~the ~~borrowing~~facility ~~capacity~~amount. We had no advances outstanding on these uncommitted facilities at December 31, ~~2024~~2025.

(b)Includes ~~revolving~~committed ~~credit~~and uncommitted facilities. ~~backed~~The byfinancial ~~loans~~institutions providing the uncommitted facilities are not contractually obligated to ~~dealers~~advance ~~for~~funds ~~floorplan~~under ~~financing~~them, and no unused borrowing capacity is included in the facility amount. We had $2.9 billion of advances outstanding on these facilities at December 31, 2025.

~~(c)The~~Refer ~~financial~~to ~~institutions~~Note ~~providing~~8 ~~the uncommitted facilities are not contractually obligated~~ to ~~advance~~our ~~funds~~consolidated ~~under~~financial ~~them.~~statements Wefor ~~had~~further $1discussion.~~5 billion in unused borrowing capacity on these facilities at December 31, 2024.~~

Refer to Note 7 to our 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 (VIEs) that meet the requirements to be consolidated in our financial statements. Refer to Note 89 to our consolidated financial statements for further discussion.

Unsecured Debt We periodically access the unsecured debt capital markets through the issuance of senior unsecured notes. At December 31, ~~2024~~2025, the aggregate principal amount of our outstanding unsecured senior notes was $5556.17 billion.

We issue other unsecured debt through demand notes, commercial paper offerings and other bank and non-bank funding sources. At December 31, 2024, we had $3.6 billion outstanding in demand notes and $3.2 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 9.24x and 8.32x at December 31, 2024 and 2023, and the applicable leverage ratio threshold was 12.00x. The increase in the earning assets leverage ratio is primarily due to growth in earning assets and impacted from an impairment charge related to our equity investment in joint ventures in China. 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.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

~~Asset and Liability Maturity Profile~~ We ~~define~~issue ~~our~~other ~~asset~~unsecured ~~and~~debt ~~liability~~through ~~maturity~~demand ~~profile as the cumulative maturities of our finance receivables~~notes, ~~investment~~commercial inpaper ~~leased~~and ~~vehicles,~~other ~~net~~bank ~~of accumulated depreciation, cash~~ and ~~cash~~non-bank ~~equivalents~~funding ~~and~~sources. ~~other~~At ~~assets~~December 31, ~~less~~2025, ~~our~~we ~~cumulative~~had ~~debt maturities~~$3.3 Webillion ~~manage~~outstanding ~~our~~in ~~balance~~demand ~~sheet~~notes soand ~~that~~$3.0 ~~asset~~billion ~~maturities~~under ~~will~~the ~~exceed debt maturities each year~~U.S. ~~The~~commercial ~~following~~paper ~~chart presents our cumulative maturities for assets and debt at December 31, 2024:~~program.

	2025		2026		2027		2028 and Thereafter
Encumbered assets	$	26,039	$	47,828	$	60,379	$	72,469
Unencumbered assets	43,538		54,456		64,460		68,561
Total assets	69,577		102,284		124,840		141,030
Secured debt	18,010		33,081		41,762		49,648
Unsecured debt	19,378		28,436		39,085		66,155
Total debt(a)	37,388		61,517		80,847		115,804
Net excess liquidity	$	32,189	$	40,767	$	43,993	$	25,226

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 8.67x and 9.24x at December 31, 2025 and 2024, and the applicable leverage ratio threshold was 12.00x. The decrease in the earning assets leverage ratio is primarily due to increased shareholders' equity as a result of $2.1 billion in net income, partially offset by $1.5 billion in dividends on our common stock paid to GM. 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, investment in leased vehicles, net of accumulated depreciation, cash and cash equivalents and other assets, 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 December 31, 2025:


	2026		2027		2028		2029 and Thereafter
Encumbered assets	$	24,959	$	41,548	$	52,405	$	66,212
Unencumbered assets	48,787		67,109		77,268		74,265
Total assets	73,746		108,657		129,673		140,477

Secured debt	17,687		29,442		37,136		46,920
Unsecured debt	17,456		29,685		40,245		68,056
Total debt(a)	35,143		59,127		77,381		114,976
Net excess liquidity	$	38,604	$	49,529	$	52,292	$	25,501

_________________

(a)Excludes unamortized debt premium/(discount), unamortized debt issuance costs and fair value adjustments.

Off-Balance Sheet Arrangements

Transfers of Finance Receivables During 2025, we sold certain retail finance receivables to third-party purchasers for $2.0 billion in cash proceeds, and we recognized an insignificant gain on the sale. We have continuing involvement with the finance receivables transferred, primarily in our role as servicer. The outstanding balance of the transferred finance receivables subject to continuing involvement was $1.7 billion at December 31, 2025. Refer to Note 4 to our consolidated financial statements for further discussion.

Non-GAAP Measures

Earnings Before Taxes (EBT)-adjusted We use EBT-adjusted, a non-GAAP measure, to review our consolidated operating results because it excludes certain adjustments that are not considered part of our core operations. Examples of adjustments include, but are not limited to, impairment charges and other costs resulting from strategic shifts in our operations or discrete market and business conditions. For our non-GAAP measures, once we have made an adjustment in the current period for an item, we also adjust the related non-GAAP measure in any future periods in which there is an impact from the item.

The following table presents our reconciliation of EBT-adjusted to income before income taxes, the most directly comparable generally accepted accounting principles (GAAP) measure:

	Years Ended December 31,
	2024		2023		2022
	2025		2024		2023
Income before income taxes	$	2,~~645~~802	$	2,~~985~~645	$	42,~~076~~985
Adjustment - impairment charge(a)	~~320~~—		—320		—
EBT - adjusted	$	2,~~965~~802	$	2,~~985~~965	$	42,~~076~~985

______________

(a)This impairment charge was to write down our SAIC-GMAC equity investment to its fair value.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

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:

	Years Ended December 31,
	2024		2023		2022
	2025		2024		2023
Net income	$	12,~~860~~058	$	21,~~245~~860	$	32,~~084~~245
Adjustment - impairment charge(a)	~~320~~—		—320		—
Net income - adjusted	2,~~181~~058		2,~~245~~181		32,~~084~~245
Cumulative dividends on preferred stock	119		119		119
Net income attributable to common shareholder - adjusted	$	21,~~062~~940	$	2,~~126~~062	$	2,~~966~~126

______________

(a)This impairment charge was to write down our SAIC-GMAC equity investment to its fair value.

22Return on Average Common Equity Return on average common equity is a 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 14.2% in 2025 from 12.7% in 2024, primarily due to the $320 million impairment charge on our SAIC-GMAC equity investment recorded in 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 15.5% in 2025 from 16.5% in 2024.

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:


	Years Ended December 31,
	2025			2024
Net income attributable to common shareholder - adjusted	$	1,940		$	2,062

Average equity	$	15,672		$	15,658
Less: average preferred equity	(1,969)			(1,969)
Average common equity	13,703			13,689
Less: average goodwill and intangible assets	(1,175)			(1,177)
Average tangible common equity	$	12,528		$	12,512

Return on average common equity	14.2		%	12.7		%
Return on average tangible common equity - adjusted	15.5		%	16.5		%

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 have 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.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

Return on Average Common Equity Return on average common equity is a generally accepted accounting principle (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 decreased to 12.7% in 2024 from 15.8% in 2023, primarily due to lower earnings driven by the $320 million impairment charge on our SAIC-GMAC equity investment.

The following table presents our reconciliation of return on average tangible common equity to return on average common equity, the most directly comparable GAAP measure:

	Years Ended December 31,
	2024			2023
Net income attributable to common shareholder - adjusted	$	2,062		$	2,126
Average equity	$	15,658		$	15,436
Less: average preferred equity	(1,969)			(1,969)
Average common equity	13,689			13,467
Less: average goodwill and intangible assets	(1,177)			(1,180)
Average tangible common equity	$	12,512		$	12,287
Return on average common equity	12.7		%	15.8		%
Return on average tangible common equity - adjusted	16.5		%	17.3		%

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 Securities and Exchange Commission (SEC), including this Annual Report on Form 10-K for the year ended December 31, ~~2024~~2025. 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;

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GENERAL MOTORS FINANCIAL COMPANY, INC.

•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 ~~a large number of~~ 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 ~~accounting~~other ~~pronouncements~~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;

•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;

•uncertainties associated with benchmark interest rates;

•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; 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. For a further discussion of these and other risks and uncertainties, refer to Part I, Item 1A. Risk Factors.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Overview We are exposed to a variety of risks in the normal course of our business. Our financial condition depends on the extent to which we effectively identify, assess, monitor and manage these risks. The principal types of risk to our business include:

•Market risk - the possibility that changes in interest and currency exchange rates will adversely affect our cash flows and economic value;

•Counterparty risk - the possibility that a counterparty may default on a derivative instrument or cash deposit or will fail to meet its lending commitments to us;

•Credit risk - the possibility of loss from a customer's failure to make payments according to contract terms;

•Residual risk - the possibility that the actual proceeds we receive at lease termination will be lower than our projections or return volumes will be higher than our projections;

•Liquidity risk - the possibility that we may be unable to meet all of our current and future obligations in a timely manner; and

•Operating risk - the possibility of errors relating to transaction processing and systems, actions that could result in compliance deficiencies with regulatory standards or contractual obligations and the possibility of fraud by our employees or outside persons.

We manage each of these types of risk in the context of its contribution to our overall global risks. We make business decisions on a risk-adjusted basis and price our services consistently with these risks. A discussion of market risk (including interest rate and foreign currency exchange rate risk), counterparty risk, and operating risk follows.

24Market Risk We seek to minimize volatility in our earnings from changes in interest rates and foreign currency exchange rates. Our strategies to manage market risk are approved by our Global Asset Liability Committee (the ALCO). Our Corporate Finance group is responsible for the development of our interest rate and liquidity management policies as presented to the ALCO.

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Market Risk We seek to minimize volatility in our earnings from changes in interest rates and foreign currency exchange rates. Our strategies to manage market risk are approved by our Global Asset Liability Committee (the ALCO). Our Corporate Treasury group is responsible for the development of our interest rate and liquidity management policies as presented to the ALCO.

Interest Rate Risk We depend on accessing the capital markets to fund asset originations. We are exposed to interest rate risks as our financial assets and liabilities have different characteristics that may impact our financial performance. These differences may include tenor, yield, repricing timing and prepayment expectations.

Our assets are primarily comprised of fixed-rate retail installment loans and operating lease agreements under which customers typically make equal monthly payments over the life of the contracts. Our commercial finance receivables primarily earn a floating rate of interest and are revolving in nature.

Our debt includes long-term unsecured debt and securitization notes payable. Our senior unsecured debt issuances have tenors of up to 10 years. Approximately 97% of these debt instruments are fixed-rate and pay equal interest payments over the life of the debt and a single principal payment at maturity. Our securitization notes payable are primarily fixed-rate and amortize as the underlying assets pay down.

Risk Management Our interest rate risk management objective is to reduce volatility in our cash flows and volatility in our economic value from changes in interest rates based on an established risk tolerance that may vary by market. We use economic value of equity sensitivity analysis and duration gap analysis to evaluate potential long-term effects of changes in interest rates. We then enter into interest rate derivatives to convert portions of our floating-rate assets and liabilities to fixed or our fixed-rate assets and liabilities to floating to ensure that our exposure falls within the tolerances established by the ALCO. We also use net interest income sensitivity analysis to monitor the level of near-term cash flow exposure. The net interest income sensitivity analysis measures the changes in expected cash flows associated with our interest-rate-sensitive assets, liabilities, and derivative financial instruments from hypothetical changes in interest rates over a 12-month period. The ALCO reviews these metrics and approves the derivative strategy required to maintain exposure within approved thresholds prior to execution. Management monitors our hedging activities to ensure that the value of derivative financial instruments, their correlation to the instruments being hedged and the amounts being hedged continue to provide effective protection against interest rate risk. However, there can be no assurance that our strategies will be effective in minimizing interest rate risk or that increases in interest rates will not have an adverse effect on our profitability. We do not engage in any speculative trading in derivatives.

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Quantitative Disclosure We measure the sensitivity of our net interest income to changes in interest rates by using interest rate scenarios that assume a hypothetical, instantaneous parallel shift of 100 basis points in all interest rates across all maturities, as well as a base case that assumes that rates perform at the current market forward curve. However, interest rate changes are rarely instantaneous or parallel and rates could move more or less than the 100 basis points assumed in our analysis. Therefore, the actual impact to our net interest income could be higher or lower than the results detailed in the table below. These interest rate scenarios are purely hypothetical and do not represent our view of future interest rate movements. Hedging strategies approved by the ALCO are used to manage interest rate risk within policy guidelines.

Net Interest Income Sensitivity	December 31, ~~2024~~2025		December 31, ~~2023~~2024
100 basis points instantaneous increase in interest rates	$	54.60	$	(75.7)6
100 basis points instantaneous decrease in interest rates(a)	$	(54.60)	$	7(5.76)

________________

(a)Net interest income sensitivity given a 100 basis points decrease in interest rates requires an assumption of negative interest rates in markets where existing interest rates are below one percent.

At December 31, 2025 and 2024, we ~~moved~~were ~~to an~~ asset-sensitive ~~profile from a liability-sensitive profile in 2023~~, meaning that we expect more assets than liabilities to reprice within the next 12 months. During a period of rising interest rates, the interest earned on our assets would increase more than the interest paid on our liabilities, which would initially increase our net interest income. During a period of falling interest rates, we would expect our net interest income to initially decrease.

Additional Model Assumptions The sensitivity analysis presented is our best estimate of the effect of the hypothetical interest rate scenarios; however, our actual results could differ. Our estimates are also based on assumptions including the amortization and prepayment of the finance receivables portfolio, originations of finance receivables and leases, refinancing of maturing debt, replacement of maturing derivatives and exercise of options embedded in debt and derivatives. Our prepayment projections are based on historical experience. If interest rates or other factors change, our actual prepayment experience could be different than projected.

25Derivative Notional Values The following table presents the outstanding notional value of our derivative instruments (in billions):


	December 31, 2025		December 31, 2024
Interest rate contracts
Pay-fixed, receive-floating interest rate swaps	$	47	$	46
Pay-floating, receive-fixed interest rate swaps	76		75
Long interest rate caps	18		20
Short interest rate caps	18		20
Total interest rate contracts	159		161
Foreign currency contracts	9		8
Total notional value	$	168	$	170

Derivative Fair Values The net fair value of our derivative financial instruments at December 31, 2025 was a liability of $67 million, compared to a liability of $1.4 billion at December 31, 2024. The net fair value of our interest rate contracts increased $428 million due to changes in the forward interest rate curve, and the net fair value of our cross-currency contracts increased $951 million due to the weakening of the U.S. Dollar against other currencies. Refer to Note 10 to our consolidated financial statements for more information.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

~~Derivative~~Foreign ~~Notional~~Currency ~~Values~~Exchange Rate Risk We primarily finance receivables and leased assets with debt in the same currency, minimizing exposure to exchange rate movements. When a different currency is used, we may use foreign currency derivatives to minimize any impact to earnings. As a result, we believe our market risk exposure relating to changes in currency exchange rates at December 31, 2025 was insignificant. Exchange rate movements can impact our net investment in foreign subsidiaries, which impacts our tangible equity through other comprehensive income (loss). The following table ~~presents~~summarizes the ~~outstanding~~amounts ~~notional~~of ~~value~~foreign ofcurrency ~~our~~translation, ~~derivative~~transaction ~~instruments~~and ~~(in~~remeasurement ~~billions~~(gains) losses:

	December 31, 2024		December 31, 2023
	Years Ended December 31,
Interest rate contracts
	2025		2024
Pay-fixed, receive-floating interest rate swaps	$	46	$	50
Translation (gains) losses recorded in accumulated other comprehensive income (loss)	$	(274)	$	403
Pay-floating, receive-fixed interest rate swaps	75		62
(Gains) losses resulting from transactions and remeasurement recorded in earnings	$	971	$	(420)
Long interest rate caps and floors	20		22
(Gains) losses resulting from foreign currency exchange contracts recorded in earnings	(961)		413
Short interest rate caps and floors	20		22
Net (gains) losses resulting from foreign currency exchange recorded in earnings	$	10	$	(7)
Total interest rate contracts	161		155
Foreign currency contracts	8		8
Total notional value	$	170	$	163

~~Derivative~~Our ~~Fair~~international ~~Values~~operations ~~The~~use ~~net~~functional ~~fair~~currencies ~~value~~other ofthan ~~our~~the ~~derivative~~U.S. ~~financial~~Dollar. ~~instruments~~Translation atadjustments ~~December 31,~~result ~~2024~~from ~~was~~changes ain ~~liability~~the values of ~~$1.4~~our ~~billion,~~foreign ~~compared~~currency-denominated toassets aand ~~liability~~liabilities ofas ~~$754~~the ~~million~~value atof ~~December 31,~~the ~~2023~~U.S. ~~The~~Dollar ~~net~~changes ~~fair~~in ~~value~~relation ofto ~~our~~foreign ~~interest~~currencies. ~~rate~~The ~~contracts~~foreign ~~decreased~~currency ~~$431~~translation ~~million~~gain for 2025 was primarily due to ~~changes~~appreciating invalues of the ~~forward~~Mexican ~~interest~~Peso, ~~rate~~Brazilian ~~curve~~Real, Chinese Yuan Renminbi, and ~~the~~Canadian ~~net~~Dollar ~~fair~~in ~~value~~relation ofto ~~our~~the ~~cross-~~U.S. Dollar. The foreign currency ~~contracts~~translation ~~decreased~~loss ~~$261~~for ~~million~~2024 was primarily due to ~~the~~depreciating ~~strengthening~~values of the ~~U.S.~~Mexican ~~Dollar~~Peso, ~~against~~Brazilian ~~other~~Real, ~~currencies.~~Canadian ~~Refer~~Dollar, toand ~~Note~~Chinese 9Yuan toRenminbi ~~our~~in ~~consolidated~~relation ~~financial~~to ~~statements~~the ~~for~~U.S. ~~more information~~Dollar.

Foreign Currency Exchange Rate Risk We primarily finance receivables and leased assets with debt in the same currency, minimizing exposure to exchange rate movements. When a different currency is used, we may use foreign currency derivatives to minimize any impact to earnings. As a result, we believe our market risk exposure relating to changes in currency exchange rates at December 31, 2024 was insignificant. Exchange rate movements can impact our net investment in foreign subsidiaries, which impacts our tangible equity through other comprehensive income (loss). The following table summarizes the amounts of foreign currency translation, transaction and remeasurement (gains) losses:

	Years Ended December 31,
	2024		2023
Translation (gains) losses recorded in accumulated other comprehensive income (loss)	$	403	$	(147)
(Gains) losses resulting from transactions and remeasurement recorded in earnings	$	(420)	$	267
(Gains) losses resulting from foreign currency exchange contracts recorded in earnings	413		(262)
Net (gains) losses resulting from foreign currency exchange recorded in earnings	$	(7)	$	5

Most of our international operations use functional currencies other than the U.S. Dollar. Translation adjustments result from changes in the values of our foreign currency-denominated assets and liabilities as the value of the U.S. Dollar changes in relation to foreign currencies. The foreign currency translation loss for 2024 was primarily due to depreciating values of the Mexican Peso, Brazilian Real, Canadian Dollar, and Chinese Yuan Renminbi in relation to the U.S. Dollar. The foreign currency translation gain for 2023 was primarily due to appreciating values of the Mexican Peso and Brazilian Real in relation to the U.S. Dollar.

Counterparty Risk Counterparty risk relates to the financial loss we could incur if an obligor or counterparty to a transaction is unable to meet its financial obligations. Typical sources of exposure include balances maintained in bank accounts, investments, and derivative instruments. Investments are typically securities representing high quality monetary instruments that are easily accessible, and derivative instruments are used for managing interest rate and foreign currency exchange rate risk. We, together with GM, establish exposure limits for each counterparty to minimize risk and provide counterparty diversification.

We enter into arrangements with individual counterparties that we believe are creditworthy and generally settle on a net basis. In addition, the ALCO performs a quarterly assessment of our counterparty credit risk, including a review of credit ratings, credit default swap rates and potential nonperformance of the counterparty.

Operating Risk We operate in many locations and rely on the abilities of our employees and computer systems to process a large number of transactions. Improper employee actions, improper operation of systems, or unforeseen business interruptions could result in financial loss, regulatory action and damage to our reputation, and breach of contractual obligations. To address this risk, we maintain internal control processes that identify transaction authorization requirements, safeguard assets from misuse or theft, protect the reliability of financial and other data, and minimize the impact of a business interruption on our customers. We also maintain system controls to maintain the accuracy of information about our operations. These controls are designed to manage operating risk throughout our business.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ~~(PCAOB ID: 42)~~

To the Shareholders and the Board of Directors of General Motors Financial Company, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of General Motors Financial Company, Inc. (the Company) as of December 31, ~~2024~~2025 and ~~2023~~2024, the related consolidated statements of income, comprehensive income, shareholders’ equity and cash flows for each of the three years in the period ended December 31, ~~2024~~2025, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, ~~2024~~2025 and ~~2023~~2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, ~~2024~~2025, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the Board of Directors and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

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			Allowance for loan losses
			Allowance for Loan Losses
Description of the Matter			The Company’s loan portfolio and the associated allowance for loan losses (ALL) were $9692.08 billion and $2.57 billion as of December 31, ~~2024~~2025, respectively. As discussed in Note 1 to the consolidated financial statements, the ALL represents management’s estimate of expected net credit losses over the remaining life of the receivables at the balance sheet date. Expected credit losses related to the retail finance receivables are estimated using a static pool modeling technique for pools of receivables with common risk characteristics such as internal credit score and monthly vintage. Management assesses recent internal operating and external environments and may qualitatively adjust certain assumptions. Forecasted economic conditions are considered over a reasonable and supportable period through the use of economic factors that are determined to have the largest impact on expected losses. Auditing management’s estimate of the North America retail ALL, which represents the largest component of the overall ALL, involved judgement due to the complexity of the model and management's adjustments to certain assumptions.
How We Addressed the Matter in Our Audit			We obtained an understanding of the Company’s process for establishing the North America retail ALL, including the models used and the adjustments made to certain assumptions. We evaluated the design and tested the operating effectiveness of the controls and governance over the appropriateness of the model methodology, including the validation and monitoring procedures performed over the models, the identification and the assessment of the need for adjustments to certain assumptions, the reliability and accuracy of data used to estimate the various components, and management’s review and approval of the ALL.
			Our procedures related to the North America retail ALL model included, among others, evaluating the conceptual soundness of the model, including management’s selection of economic factors that were deemed to have the largest impact on expected credit losses, and reviewing management’s weighting of historical loss experience to align the estimate with the current environment. Additionally, on a sample basis, we performed an independent recalculation of the Company’s ALL. To test the adjustments to certain assumptions, we evaluated the identification and measurement including the basis for concluding an adjustment was warranted when considering the construct of the current expected credit loss model. We tested the completeness and accuracy of data used by the Company to estimate the adjustments and recalculated the analyses used by management to measure the adjustment.
			Valuation of Leased Vehicles
Description of the Matter			The Company has recorded investments in vehicles leased to retail customers under operating leases. As discussed in Note 1 to the consolidated financial statements, at the beginning of the lease, management establishes an expected residual value for each vehicle at the end of the lease term. During the term of a lease, management periodically evaluates the estimated residual value and may adjust the value downward or upward. The Company’s estimated residual value of leased vehicles at the end of lease term was $2325.50 billion as of December 31, ~~2024~~2025.
			Auditing management’s estimate of the residual value of leased vehicles involved a high degree of judgment. Management’s estimate is based, in part, on third-party data which considers inputs including recent auction values and assumptions regarding the expected future volume of leased vehicles that will be returned to the Company, used car prices, manufacturer incentive programs and fuel prices. Realization of the residual values is dependent on the future ability to market the vehicles under future prevailing market conditions.
			Auditing management’s estimate of the residual value of leased vehicles involved a high degree of judgment. Management’s estimate is based, in part, on third-party data which considers inputs including recent auction values and assumptions regarding the expected future volume of leased vehicles that will be returned to the Company, used vehicle prices, manufacturer incentive programs and fuel prices. Realization of the residual values is dependent on the future ability to market the vehicles under future prevailing market conditions.
How We Addressed the Matter in Our Audit			We evaluated the design and tested the operating effectiveness of the Company’s controls over the lease residual estimation process, including controls over management’s review of residual value estimates obtained from the Company’s third-party provider and other significant assumptions. Our procedures also included, among others, independently recalculating depreciation related to operating leases and performing sensitivity analyses related to significant assumptions. We also performed hindsight analyses to assess the propriety of management’s estimate of residual values, as well as tested the completeness and accuracy of data from underlying systems, data warehouses and third parties that are used in the estimation models.

/s/Ernst & Young LLP

We have served as the Company’s auditor since 2017.

Fort Worth, Texas

January 2827, ~~2025~~2026

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Item 8. Financial Statements and Supplementary Data

CONSOLIDATED BALANCE SHEETS

(in millions, except per share amounts)

	December 31, 2024		December 31, 2023
	December 31, 2025		December 31, 2024
ASSETS
Cash and cash equivalents	$	5,094	$	5,282
Cash and cash equivalents (Note 2)	$	5,826	$	5,094
Finance receivables, net of allowance for loan losses of $2,458 and $2,344 (Note 3; Note 8)	93,510		84,637
Finance receivables, net of allowance for loan losses of $2,725 and $2,458 (Note 4; Note 9)	90,045		93,510
Leased vehicles, net (Note 4; Note 8)	31,586		30,582
Leased vehicles, net (Note 5; Note 9)	33,686		31,586
Goodwill and intangible assets (Note 5)	1,169		1,184
Goodwill and intangible assets (Note 6)	1,177		1,169
Equity in net assets of nonconsolidated affiliates (Note 6)	1,206		1,670
Equity in net assets of nonconsolidated affiliates (Note 7)	1,117		1,206
Property and equipment, net of accumulated depreciation of $464 and $432	107		124
Property and equipment, net of accumulated depreciation of $485 and $464	126		107
Deferred income taxes (Note 14)	249		292
Deferred income taxes (Note 15)	312		249
Related party receivables (Note 2)	473		540
Related party receivables (Note 3)	515		473
Other assets (Note 8)	7,636		7,699
Other assets (Note 2; Note 9)	7,672		7,636
Total assets	$	~~141~~140,~~030~~477	$	~~132~~141,~~011~~030
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Secured debt (Note 7; Note 8)	$	49,573	$	45,243
Secured debt (Note 8; Note 9)	$	46,904	$	49,573
Unsecured debt (Note 7)	64,691		60,084
Unsecured debt (Note 8)	67,127		64,691
Accounts payable and accrued expenses	2,~~671~~553		2,~~942~~671
Deferred income	2,~~389~~494		2,~~313~~389
Deferred income taxes (Note 14)	2,671		2,025
Deferred income taxes (Note 15)	2,442		2,671
Related party payables (Note 2)	106		445
Related party payables (Note 3)	136		106
Other liabilities	3,~~737~~009		3,~~415~~737
Total liabilities	~~125~~124,~~838~~664		~~116~~125,~~468~~838
Commitments and contingencies (Note 10)
Commitments and contingencies (Note 11)
Shareholders' equity (Note 11)
Shareholders' equity (Note 12)
Common stock, $0.0001 par value per share	—		—
Preferred stock, $0.01 par value per share	—		—
Additional paid-in capital	8,~~814~~845		8,~~783~~814
Accumulated other comprehensive income (loss)	(1,~~531~~402)		(1,~~208~~531)
Retained earnings	78,~~909~~369		7,~~967~~909
Total shareholders' equity	15,~~193~~813		15,~~542~~193
Total liabilities and shareholders' equity	$	~~141~~140,~~030~~477	$	~~132~~141,~~011~~030

The accompanying notes are an integral part of these consolidated financial statements.

Amounts may not add due to rounding.

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CONSOLIDATED STATEMENTS OF INCOME

(in millions)

	Years Ended December 31,
	2024		2023		2022
	2025		2024		2023
Revenue
Finance charge income	$	78,~~669~~173	$	67,~~204~~669	$	46,~~521~~204
Leased vehicle income	7,~~297~~800		7,~~266~~297		7,~~811~~266
Other income	~~909~~1,086		~~754~~909		~~434~~754
Total revenue	1517,~~875~~059		1415,~~224~~875		1214,~~766~~224
Costs and expenses
Operating expenses	12,~~802~~206		1,~~818~~802		1,~~662~~818
Leased vehicle expenses	4,~~113~~391		4,~~047~~113		34,~~668~~047
Provision for loan losses (Note 3)	1,029		826		654
Provision for loan losses (Note 4)	1,207		1,029		826
Interest expense	6,~~030~~492		46,~~685~~030		24,~~881~~685
Total costs and expenses	1214,~~974~~296		1112,~~376~~974		811,~~864~~376
Equity income (loss) (Note 6)	64		138		173
Equity income (loss) (Note 7)	39		64		138
Impairment of investment in nonconsolidated affiliate (Note 6)	(320)		—		—
Impairment of investment in nonconsolidated affiliate (Note 7)	—		(320)		—
Income (loss) before income taxes	2,~~645~~802		2,~~985~~645		42,~~076~~985
Income tax provision (benefit)(Note 14)	784		741		992
Income tax expense (benefit) (Note 15)	744		784		741
Net income (loss)	12,~~860~~058		21,~~245~~860		32,~~084~~245
Less: cumulative dividends on preferred stock	119		119		119
Net income (loss) attributable to common shareholder	$	1,~~742~~940	$	21,~~126~~742	$	2,~~966~~126

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

	Years Ended December 31,
	2024		2023		2022
	2025		2024		2023
Net income (loss)	$	12,~~860~~058	$	21,~~245~~860	$	32,~~084~~245
Other comprehensive income (loss), net of tax (Note 11)
Other comprehensive income (loss), net of tax (Note 12)
Unrealized gain (loss) on hedges, net of income tax (expense) benefit of $(26), $(5) and $(18)	81		18		55
Unrealized gain (loss) on hedges, net of income tax (expense) benefit of $48, $(26) and $(5)	(144)		81		18
Defined benefit plans	(1)		—(1)		1—
Foreign currency translation adjustment	~~(403)~~274		~~147~~(403)		~~(156)~~147
Other comprehensive income (loss), net of tax	~~(323)~~129		~~165~~(323)		~~(100)~~165
Comprehensive income (loss)	$	12,~~537~~188	$	21,~~410~~537	$	2,~~983~~410

The accompanying notes are an integral part of these consolidated financial statements.

Amounts may not add due to rounding.

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(in millions)

	Common Stock		Preferred Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total Equity
Balance at January 1, 2022	$	—	$	—	$	8,692	$	(1,273)	$	6,375	$	13,794
Balance at January 1, 2023	$	—	$	—	$	8,742	$	(1,373)	$	7,641	$	15,010
Net income (loss)	—		—		—		—		3,084		3,084
Other comprehensive income (loss)	—		—		—		(100)		—		(100)
Stock-based compensation	—		—		49		—		—		49
Dividends paid (Note 11)	—		—		—		—		(1,759)		(1,759)
Dividends declared on preferred stock (Note 11)	—		—		—		—		(59)		(59)
Balance at December 31, 2022	—		—		8,742		(1,373)		7,641		15,010
Net income (loss)	—		—		—		—		2,245		2,245
Other comprehensive income (loss)	—		—		—		165		—		165
Stock-based compensation	—		—		41		—		—		41
Dividends paid (Note 11)	—		—		—		—		(1,859)		(1,859)
Dividends paid (Note 12)	—		—		—		—		(1,859)		(1,859)
Dividends declared on preferred stock (Note 11)	—		—		—		—		(59)		(59)
Dividends declared on preferred stock (Note 12)	—		—		—		—		(59)		(59)
Balance at December 31, 2023	—		—		8,783		(1,208)		7,967		15,542
Net income (loss)	—		—		—		—		1,860		1,860
Other comprehensive income (loss)	—		—		—		(323)		—		(323)
Stock-based compensation	—		—		31		—		—		31
Dividends paid (Note 11)	—		—		—		—		(1,859)		(1,859)
Dividends paid (Note 12)	—		—		—		—		(1,859)		(1,859)
Dividends declared on preferred stock (Note 11)	—		—		—		—		(59)		(59)
Dividends declared on preferred stock (Note 12)	—		—		—		—		(59)		(59)
Balance at December 31, 2024	$—	—	$—	—	$8,814	~~8,814~~	$(1,531)	~~(1,531)~~	$7,909	~~7,909~~	$15,193	~~15,193~~
Net income (loss)	—		—		—		—		2,058		2,058
Other comprehensive income (loss)	—		—		—		129		—		129
Stock-based compensation	—		—		31		—		—		31
Dividends paid (Note 12)	—		—		—		—		(1,539)		(1,539)
Dividends declared on preferred stock (Note 12)	—		—		—		—		(59)		(59)
Balance at December 31, 2025	$	—	$	—	$	8,845	$	(1,402)	$	8,369	$	15,813

The accompanying notes are an integral part of these consolidated financial statements.

Amounts may not add due to rounding.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

Years Ended December 31,

2024

2023

2022

2025

2024

2023

Cash flows from operating activities

Net income (loss)

12,~~860~~058

21,~~245~~860

32,~~084~~245

Depreciation and amortization

5,~~249~~314

5,~~231~~249

5,~~083~~231

Accretion and amortization of loan and leasing fees

(1,~~490~~610)

(1,~~354~~490)

(1,~~266~~354)

Undistributed earnings of nonconsolidated affiliates, net

91123

~~(50)~~91

(3250)

Impairment of investment in nonconsolidated affiliate

~~320~~—

—320

—

Provision for loan losses

1,~~029~~207

~~826~~1,029

~~654~~826

Deferred income taxes

~~1,061~~411

~~165~~1,061

~~484~~165

Gain on termination of leased vehicles

(~~758~~586)

(~~878~~758)

(~~1,188~~878)

Other operating activities

(22131)

(~~366~~22)

(81366)

Changes in assets and liabilities:

Other assets

~~(800)~~611

(~~129~~800)

(~~1,470~~129)

Other liabilities

~~336~~477

~~592~~336

~~484~~592

Related party payables

~~(447)~~105

~~381~~(447)

~~(277)~~381

Net cash provided by (used in) operating activities

67,~~429~~979

6,~~662~~429

56,~~476~~662

Cash flows from investing activities

Purchases and funding of finance receivables

(3736,~~075~~752)

(3537,~~961~~075)

(3435,~~768~~961)

Principal collections and recoveries on finance receivables

3135,~~783~~781

2831,~~343~~783

2728,~~017~~343

Net change in floorplan and other short-duration receivables

(52,~~717)~~223

(25,~~633~~717)

(42,~~345~~633)

Purchases of leased vehicles

(15,279)

(13,640)

(11,949)

Proceeds from sale of finance receivables (Note 4)

2,005

—

Proceeds from termination of leased vehicles

10,892

13,033

14,234

Purchases of leased vehicles

(15,793)

(15,279)

(13,640)

Purchases of property and equipment

(24)

(44)

Proceeds from termination of leased vehicles

10,095

10,892

13,033

Capital contribution to nonconsolidated affiliates

—

(51)

Purchases of property and equipment

(51)

(24)

Other investing activities

2(35)

—2

~~(99)~~—

Net cash provided by (used in) investing activities

(152,~~418~~527)

(1015,~~882~~418)

(10,~~005~~882)

Cash flows from financing activities

Net change in debt (original maturities of three months or less)

~~112~~(301)

~~(150)~~112

~~333~~(150)

Borrowings and issuances of secured debt

3121,~~002~~480

3231,~~646~~002

3032,~~764~~646

Payments on secured debt

(2624,~~354~~561)

(2926,~~684~~354)

(2829,~~060~~684)

Borrowings and issuances of unsecured debt

2219,~~396~~655

1822,~~294~~396

1218,~~794~~294

Payments on unsecured debt

(1619,~~124~~101)

(1316,~~317~~124)

(913,~~865~~317)

Debt issuance costs

(~~164~~138)

(~~146~~164)

(~~135~~146)

Dividends paid

(1,~~919~~599)

(1,919)

(1,~~819~~919)

Net cash provided by (used in) financing activities

8(4,~~950~~563)

58,~~724~~950

45,~~013~~724

Net increase (decrease) in cash, cash equivalents and restricted cash

~~(39)~~888

~~1,504~~(39)

~~(516)~~1,504

Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash

~~(128)~~73

69(128)

969

Cash, cash equivalents and restricted cash at beginning of period

8,~~249~~081

68,~~676~~249

76,~~183~~676

Cash, cash equivalents and restricted cash at end of period

89,~~081~~043

8,~~249~~081

68,~~676~~249

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet:

	December 31, 2024		December 31, 2023
	December 31, 2025		December 31, 2024
Cash and cash equivalents	$	5,~~094~~826	$	5,~~282~~094
Restricted cash included in other assets	23,~~987~~217		2,~~967~~987
Total	$	89,~~081~~043	$	8,~~249~~081

The accompanying notes are an integral part of these consolidated financial statements.

Amounts may not add due to rounding.

3233

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Business, Basis of Presentation and Summary of Significant Accounting Policies

General Motors Financial Company, Inc., the wholly-owned captive finance subsidiary of General Motors Company (GM), is a global provider of automobile finance solutions. We have been operating in the automobile finance business in the U.S. since September 1992 and have been a wholly-owned subsidiary of GM since October 2010. We provide retail loan and lease financing across the credit spectrum to support vehicle sales. Additionally, we offer commercial lending products to dealers, including floorplan financing, which is lending to finance new and used vehicle inventory, and dealer loans, which are loans to finance improvements to dealership facilities, to provide working capital, or to purchase and/or finance dealership real estate. We also offer and finance vehicle-related service contracts and other products and services.

Basis of Presentation The consolidated financial statements include our accounts and the accounts of our consolidated subsidiaries, including certain special purpose entities (SPEs) utilized in secured financing transactions, which are considered variable interest entities (VIEs). All intercompany transactions and accounts have been eliminated in consolidation. Except as otherwise specified, dollar amounts presented within tables are stated in millions. Certain columns and rows may not add due to rounding.

Generally, the financial statements of entities that operate outside of the U.S. are measured using the local currency as the functional currency. All assets and liabilities of the foreign subsidiaries are translated into U.S. dollars at period-end exchange rates, and the results of operations and cash flows are determined using approximate weighted-average exchange rates for the period. Translation adjustments are related to the foreign subsidiaries using local currency as their functional currency and are reported as a separate component of accumulated other comprehensive income (loss). Foreign currency transaction gains or losses are recorded directly in the consolidated statements of income and comprehensive income, regardless of whether such amounts are realized or unrealized. We may enter into foreign currency derivatives to mitigate our exposure to changes in foreign currency exchange rates.

Cash Equivalents and Restricted Cash Cash equivalents are defined as short-term, highly liquid investments with original maturities of three months or less. Certain operating agreements require us to post cash as collateral. Cash and cash equivalents subject to contractual restrictions and not readily available are classified as restricted cash. Restricted cash is invested in accordance with the terms of the underlying agreements and include amounts related to restricted cash held for securitization trusts, credit facilities, and other cash collateral. Restricted cash is included in other assets.

Marketable Debt Securities We generally classify marketable debt securities as available-for-sale. Available-for-sale securities are recorded at fair value with unrealized gains and losses recorded in accumulated other comprehensive income (loss) until realized. Unrealized losses are reclassified to other income if we intend to sell the security or it is more likely than not that we will be required to sell the security before the recovery of the unrealized loss. Realized gains and losses for all debt securities are determined using the specific identification method, and we measure the fair value of our marketable securities using a market approach. Realized gains or losses are recorded in other income.

Net Presentation of Cash Flows on Commercial Finance Receivables and Related Debt Our commercial finance receivables are primarily comprised of floorplan financing, which are loans to dealers to finance vehicle inventory, also known as wholesale or inventory financing. In our experience, floorplan financing, as well as other short-duration receivables, are typically repaid within three months of when the credit is extended. Furthermore, we typically have the unilateral ability to call the floorplan loans and receive payment within 60 days of the call. Therefore, the presentation of the cash flows related to floorplan and other short-duration finance receivables is reflected on the consolidated statements of cash flows as "Net change in floorplan and other short-duration receivables."

We have debt agreements to finance our commercial lending activities. The terms of these financing agreements require that a borrowing base of eligible floorplan receivables, within certain concentration limits, must be maintained in sufficient amounts to support advances. When a dealer repays a floorplan receivable to us, either the amount advanced against such receivables must be repaid by us or the equivalent amount in new receivables must be added to the borrowing base. The term for repayment of advances under these agreements is when we receive repayment from the dealers, which is typically within three months of when the credit is extended. Therefore, the cash flows related to these debt agreements are reflected on the consolidated statements of cash flows as “Net change in debt (original maturities of three months or less).”

Retail Finance Receivables and the Allowance for Loan Losses Our retail finance receivables portfolio consists of smaller-balance, homogeneous loans that are carried at amortized cost, net of allowance for loan losses. These loans are divided among pools based on common risk characteristics, such as internal credit score, origination period (vintage) and geography. An internal credit score, of which FICO is an input in North America, is created by using algorithms or statistical models contained in origination scorecards. The scorecards are used to evaluate a consumer’s ability to pay based on statistical modeling of his or her prior credit usage, structure of the loan and other information. The output of the scorecards rank-orders consumers from those who are least likely to default to those who are most likely to default. By further dividing the portfolio into pools based on internal credit scores, we are better able to distinguish expected credit performance for different credit risks. The allowance is aggregated for each of the pools. Provisions for loan losses are charged to operations in amounts sufficient to maintain the 34

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Retail Finance Receivables and the Allowance for Loan Losses Our retail finance receivables portfolio consists of smaller-balance, homogeneous loans that are carried at amortized cost basis, net of allowance for loan losses. These loans are divided among pools based on common risk characteristics, such as internal credit score, origination period (vintage) and geography. An internal credit score, of which FICO is an input in North America, is created by using algorithms or statistical models contained in origination scorecards. The scorecards are used to evaluate a consumer’s ability to pay based on statistical modeling of the consumer's prior credit usage, structure of the loan and other information. The output of the scorecards rank-orders consumers from those who are least likely to default to those who are most likely to default. By further dividing the portfolio into pools based on internal credit scores, we are better able to distinguish expected credit performance for different credit risks. The allowance is aggregated for each of the pools. Provisions for loan losses are charged to operations in amounts sufficient to maintain the allowance for loan losses at levels considered adequate to cover expected credit losses on our retail finance receivables portfolio.

We use static pool modeling techniques to determine the allowance for loan losses expected over the remaining life of the receivables, which is supplemented by management judgment. We assess the recent internal operating and external environments and may qualitatively adjust certain assumptions to result in an allowance that is reflective of losses that are expected to occur in the forecasted environment.

Expected losses are estimated for groups of accounts aggregated by internal credit score and monthly vintage. Generally, the expected losses are projected based on historical loss experience over the last 10 years, more heavily weighted toward recent performance to result in an estimate that is more reflective of the current internal and external environments. We consider forecast economic conditions over a reasonable and supportable forecast period. We determine the expected remaining life of the finance receivables to be a reasonable and supportable forecast horizon, primarily due to the relatively short weighted average life of retail finance receivables. We determined the economic factors that have the largest impact on expected losses include unemployment rates, interest rate spreads, disposable personal income and growth rates in gross domestic products. We use forecasts for our chosen factors provided by a leading economic research firm. We compare the forecasts to consensus forecasts to assess for reasonableness and may use one or more forecast scenarios provided by the research firm.

We believe these factors are relevant in estimating expected losses and also consider an evaluation of overall portfolio credit quality based on indicators such as changes in our credit evaluation, underwriting and collection management policies, changes in the legal and regulatory environment, general economic conditions and business trends and uncertainties in forecasting and modeling techniques used in estimating our allowance. We update our retail loss forecast models and portfolio indicators on a quarterly basis to incorporate information reflective of the current and forecast economic environments.

Assumptions regarding credit losses are reviewed periodically and may be impacted by actual performance of finance receivables and changes in any of the factors discussed above. Should the credit loss assumptions increase, there would be an increase in the amount of allowance for loan losses required, which would decrease the net carrying value of finance receivables and increase the amount of provision for loan losses.

Commercial Finance Receivables and the Allowance for Loan Losses Our commercial lending offerings consist of financing products for dealers and other businesses. Dealer products include floorplan financing, as well as dealer loans, which are loans to finance improvements to dealership facilities, to provide working capital, or to purchase and/or finance dealership real estate. Other business products we provide include financing for commercial vehicle upfitters and advances to certain GM subsidiaries.

Commercial finance receivables are carried at amortized cost basis, net of allowance for loan losses and any amounts held under our dealer cash management program. Provisions for loan losses are charged to operations in amounts sufficient to maintain the allowance for loan losses at levels considered adequate to cover expected credit losses in the commercial finance receivables portfolio. We establish the allowance for loan losses based on historical loss experience, as well as forecasted auto industry conditions, which is the economic indicator that we believe has the largest impact on expected losses. The dealer finance receivables are aggregated into loan-risk pools, which are determined based on our internally developed risk rating system. Dealers' financial and operating metrics are regularly scored and further evaluated to derive a risk rating. Based on dealer risk ratings, we establish probability of default and loss given default, and also determine if any specific dealer loan requires additional reserves.

Commercial finance receivables are individually evaluated and, where collectability of the recorded balance is in doubt, are written down to the fair value of the collateral less costs to sell. Commercial finance receivables are charged off at the earlier of when they are deemed uncollectible or reach 360 days past due.

Loan Modifications Under certain circumstances, we may agree to modify the terms of an existing loan with a borrower for various reasons, including financial difficulties. For those borrowers experiencing financial difficulties, we may provide interest rate reductions, principal forgiveness, payment deferments, term extensions or a combination thereof. A loan that is deferred greater than six months in the preceding twelve months would be considered to be other-than-insignificantly delayed. In such circumstances, we must determine whether the modification should be accounted for as an extinguishment of the original loan and a creation of a new loan, or the continuation of the original loan with modifications.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Held-for-Investment Finance receivables are classified and accounted for as held-for-investment if we have the intent and ability to hold the loans for the foreseeable future or until maturity or payoff. Our determination of intent and ability to hold the loans requires us to make good faith estimates based on all information available at the time of origination. Our finance receivables are classified as held-for-investment at origination and are carried at amortized cost basis, net of any allowance for loan losses. Unless otherwise identified, all finance receivables are held-for-investment.

Held-for-Sale Finance receivables are classified and accounted for as held-for-sale if we have the intent and ability to sell the loans and those loans can be reasonably identified. Once a decision to sell the loans has been made, we reclassify those finance receivables from held-for-investment to held-for-sale, and any previously recorded allowance for credit losses is reversed through provision for loan losses. Finance receivables classified as held-for-sale are carried at the lower of amortized cost basis or fair value. Fair value is determined on an aggregated loan basis. A valuation adjustment, if applicable, as well as gains or losses on the sale of the loans are recorded in other income.

Charge-off Policy Retail finance receivables are generally charged off in the month in which the account becomes 120 days contractually delinquent if we have not yet recorded a repossession charge-off. Commercial finance receivables are individually evaluated and, where collectability of the recorded balance is in doubt, are written down to the fair value of the collateral less costs to sell. Commercial finance receivables are charged off at the earlier of when they are deemed uncollectible or reach 360 days past due.

The effect of these modifications is already included in the allowance for credit losses because our estimated allowance represents currently expected credit losses. A change to the allowance for credit losses is generally not recorded upon modification.

~~Leased~~Transfers ~~Vehicles~~of AsFinancial ~~lessor,~~Assets weThe ~~have~~accounting ~~investments~~treatment infor ~~leased~~transfers ~~vehicles~~of ~~recorded~~financial assets depends on whether the transfer qualifies as ~~operating~~a ~~leases~~sale or a secured borrowing. ~~Leased~~A ~~vehicles~~transfer ~~consist~~is ofrecognized ~~automobiles~~as ~~leased~~a tosale ~~retail~~only ~~customers~~if ~~and~~the assets are ~~carried~~legally atisolated ~~amortized~~from ~~cost~~the ~~less~~transferor, ~~unearned~~the ~~manufacturer~~transferee ~~subvention~~has ~~payments~~the unrestricted right to pledge or exchange the assets, ~~which~~and ~~are~~the ~~received~~transferor updoes ~~front.~~not ~~Depreciation~~retain ~~expense~~effective iscontrol ~~recorded~~through onrepurchase aagreements ~~straight-line~~or ~~basis~~other ~~over~~arrangements. When the ~~term~~transfer ofqualifies as a sale, the ~~lease~~financial ~~agreement~~assets toare derecognized from our balance sheet, and any resulting gain or loss on the ~~estimated~~sale ~~residual~~is ~~value~~recognized in other income. ~~Manufacturer~~In ~~subvention~~certain istransactions, ~~earned~~servicing onresponsibilities amay ~~straight-line~~be ~~basis~~retained, which would represent continuing involvement. If the criteria for sale accounting are not met, the transaction is accounted for as a ~~reduction~~secured toborrowing ~~depreciation~~and ~~expense.~~the financial assets remain on our balance sheet.

Leased Vehicles As lessor, we have investments in leased vehicles recorded as operating leases. Leased vehicles consist of automobiles leased to retail customers and are carried at amortized cost basis less unearned manufacturer subvention payments, which are received up front. Depreciation expense is recorded on a straight-line basis over the term of the lease agreement to the estimated residual value. Manufacturer subvention is earned on a straight-line basis as a reduction to depreciation expense.

Generally, the lessee may purchase the leased vehicle at the maturity of the lease by paying the purchase price stated in the lease agreement, which equals the contract residual value determined at origination of the lease, plus any fees and all other amounts owed under the lease. If the lessee decides not to purchase the leased vehicle, the lessee must return it to a dealer by the lease's scheduled maturity date. Since the lessee is not obligated to purchase the vehicle at the end of the contract, we are exposed to a risk of loss to the extent the customer returns the vehicle prior to or at the end of the lease term and the proceeds we receive on the disposition of the vehicle are lower than the residual value estimated at lease inception.

We estimate the expected residual value based on third-party data that considers various data points and assumptions, including, but not limited to, recent auction values, the expected future volume of returning leased vehicles, used vehicle prices, manufacturer incentive programs and fuel prices. Changes in the expected residual value result in increased or decreased depreciation of the leased asset over the remaining term of the lease. Upon disposition, a gain or loss is recorded for any difference between the carrying amount of the lease and the proceeds from the disposition of the asset, including any insurance proceeds. Under the accounting for impairment or disposal of long-lived assets, vehicles on operating leases are evaluated by asset group for impairment. We aggregate leased vehicles into asset groups based on make, year and model. When asset group indicators of impairment exist and aggregate future cash flows from the operating lease, including the expected realizable fair value of the leased assets at the end of the lease, are less than the carrying amount of the lease asset group, an immediate impairment write-down is recognized if the difference is deemed not recoverable.

Variable Interest Entities – Securitizations and Credit Facilities We finance a significant portion of our loan and lease origination volume through the use of our credit facilities and execution of securitization transactions, which both utilize SPEs. In our credit facilities, we transfer finance receivables and lease-related assets to SPEs. These subsidiaries, in turn, issue notes to the agents, collateralized by such assets and cash. The agents provide funding under the notes to the subsidiaries pursuant to an advance formula, and the subsidiaries forward the funds to us in consideration for the transfer of the assets.36

In our securitizations, we transfer finance receivables and lease-related assets to SPEs structured as securitization trusts (Trusts), which issue one or more classes of asset-backed securities. The asset-backed securities are, in turn, sold to investors.

Our continuing involvement with the credit facilities and Trusts consists of servicing assets held by the SPEs and holding residual interests in the SPEs. These transactions are structured without recourse. The SPEs are considered VIEs under GAAP and are consolidated because we have: (i) power over the significant activities of the entities and (ii) an obligation to absorb losses and the right to receive benefits from the VIEs that could be significant to the VIEs. Accordingly, we are the primary beneficiary of the VIEs and the finance receivables, lease-related assets, borrowings under our credit facilities and, following a securitization, the related securitization notes payable remain on the consolidated balance sheets. Refer to Note 3, Note 7 and Note 8 for further information.

We are not required, and do not currently intend, to provide any additional financial support to SPEs. While these subsidiaries are included in our consolidated financial statements, these subsidiaries are separate legal entities and the finance receivables, lease-related assets and cash held by these subsidiaries are legally owned by them and are not available to our creditors or creditors of our other subsidiaries.

We recognize finance charge, lease vehicle and fee income on the securitized assets and interest expense on the secured debt issued in securitization transactions and record a provision for loan losses to recognize loan losses expected over the remaining life of the securitized assets. Cash pledged to support securitization transactions is deposited in a restricted account and recorded on our consolidated balance sheets as restricted cash, which is invested in highly liquid securities with original maturities of 90 days or less.

Property and Equipment Property and equipment is carried at amortized cost. Depreciation is generally recorded on a straight-line basis over the estimated useful lives of the assets, which ranges from 1 to 30 years. The basis of assets sold or retired and the related accumulated depreciation are removed from the accounts at the time of disposition and any resulting gain

Table of Contents

GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

orindicators ~~loss~~of isimpairment ~~included~~exist inand ~~operating~~aggregate ~~expenses.~~future ~~Maintenance~~cash flows from the operating lease, ~~repairs~~including ~~and~~the ~~minor~~expected ~~replacements~~realizable ~~are~~fair ~~charged~~value toof ~~operations~~the asleased ~~incurred;~~assets ~~major~~at ~~replacements~~the ~~and~~end ~~improvements~~of the lease, are ~~capitalized~~less than the carrying amount of the lease asset group, an immediate impairment write-down is recognized if the difference is deemed not recoverable.

Variable Interest Entities – Securitizations and Credit Facilities We finance a significant portion of our loan and lease origination volume through the use of our credit facilities and execution of on-balance-sheet securitization transactions, which both utilize SPEs. In our credit facilities, we transfer finance receivables and lease-related assets to SPEs. These SPEs, in turn, issue notes to the agents, collateralized by such assets and cash. The agents provide funding under the notes to the SPEs pursuant to an advance formula, and the SPEs forward the funds to us in consideration for the transfer of the assets.

In our on-balance-sheet securitizations, we transfer finance receivables and lease-related assets to SPEs structured as securitization trusts (Trusts), which issue one or more classes of asset-backed securities. The asset-backed securities are, in turn, sold to investors.

Our variable interest with the credit facilities and Trusts consists of servicing assets held by the SPEs and holding residual interests in the SPEs. These transactions are structured without recourse. The SPEs are considered VIEs under GAAP and are consolidated because we have: (i) power over the significant activities of the entities and (ii) an obligation to absorb losses and the right to receive benefits from the VIEs that could be significant to the VIEs. Accordingly, we are the primary beneficiary of the VIEs and the finance receivables, lease-related assets, borrowings under our credit facilities and, following a securitization, the related securitization notes payable remain on the consolidated balance sheets. Refer to Note 4, Note 8 and Note 9 for further information.

We are not required, and do not currently intend, to provide any additional financial support to SPEs. While these SPEs are included in our consolidated financial statements, these SPEs are separate legal entities and the finance receivables, lease-related assets and cash held by these SPEs are legally owned by them and are not available to our creditors or creditors of our other subsidiaries.

We recognize finance charge, lease vehicle and fee income on the securitized assets and interest expense on the secured debt issued in securitization transactions and record a provision for loan losses to recognize loan losses expected over the remaining life of the securitized assets. Cash pledged to support on-balance-sheet securitization transactions is deposited in a restricted account and recorded on our consolidated balance sheets as restricted cash, which is invested in highly liquid securities with original maturities of 90 days or less.

Equity Investments When events and circumstances warrant, equity investments accounted for under the equity method of accounting are evaluated for impairment. An impairment charge is recorded whenever a decline in value of an equity investment below its carrying amount is determined to be other-than-temporary. Impairment charges related to equity method investments are recorded in equity income.

Property and Equipment Property and equipment is carried at amortized cost basis. Depreciation is generally recorded on a straight-line basis over the estimated useful lives of the assets, which ranges from 1 to 30 years. The basis of assets sold or retired and the related accumulated depreciation are removed from the accounts at the time of disposition and any resulting gain or loss is included in operating expenses. Maintenance, repairs and minor replacements are charged to operations as incurred; major replacements and improvements are capitalized.

Goodwill Goodwill is not amortized but rather tested for impairment annually on October 1 or when events occur or circumstances change that trigger a review. The impairment test entails an assessment of qualitative factors to determine whether it is more likely than not that an impairment exists. If it is more likely than not that an impairment exists, then a quantitative impairment test is performed. Impairment exists when the carrying amount of a reporting unit exceeds its fair value.

Derivative Financial Instruments We recognize all of our derivative financial instruments as either assets or liabilities on our consolidated balance sheets at fair value. We do not use derivative financial instruments for speculative trading purposes. We require that all derivative instruments be governed by an International Swaps and Derivatives Association Master Agreement. We enter into derivative instruments and establish risk limits with counterparties that we believe are creditworthy and generally settle on a net basis. In addition, management performs a quarterly assessment of our counterparty credit risk, including a review of credit ratings, credit default swap rates and potential nonperformance of the counterparty.

Derivative financial instruments are generally expressed in notional principal or contract amounts that are much larger than the amounts potentially at risk for nonpayment by counterparties. Therefore, in the event of nonperformance by the counterparties, our credit exposure is limited to the uncollected interest and the market value related to the instruments that have become favorable to us, to the extent that market values are not collateralized. We maintain a policy of requiring that all derivative instruments be governed by an International Swaps and Derivatives Association Master Agreement. We enter into derivative instruments and establish risk limits with counterparties that we believe are creditworthy and generally settle on a net basis. In addition, management performs a quarterly assessment of our counterparty credit risk, including a review of credit ratings, credit default swap rates and potential nonperformance of the counterparty. 37

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Interest Rate Swap Agreements We utilize interest rate swap agreements to convert certain floating rate exposures to fixed rate or certain fixed-rate exposures to floating rate in order to manage our interest rate exposure. Cash flows from derivatives used to manage interest rate risk are classified as operating activities.

We designate certain pay-fixed, receive-floating interest rate swaps as cash flow hedges of variable rate debt. The risk being hedged is the risk of variability in interest payments attributable to changes in interest rates. If the hedge relationship is deemed to be highly effective, we record the changes in the fair value of the hedge in accumulated other comprehensive income (loss).

We designate certain receive-fixed, pay-floating interest rate swaps as fair value hedges of fixed-rate debt. The risk being hedged is the risk of changes in the fair value of the hedged debt attributable to changes in the benchmark interest rate. If the hedge relationship is deemed to be highly effective, we record the changes in the fair value of the hedged debt related to the risk being hedged in interest expense. The change in fair value of the related hedge is also recorded in interest expense.

Interest Rate Cap ~~and Floor~~ Agreements We may purchase interest rate cap ~~and floor~~ agreements to limit floating rate exposures in our credit facilities. As part of our interest rate risk management strategy and when economically feasible, we may simultaneously sell a corresponding interest rate cap ~~or floor~~ agreement in order to offset the premium paid to purchase the interest rate cap ~~or floor~~ agreement and thus retain the interest rate risk. Because the interest rate cap ~~and floor~~ agreements entered into by us or our SPEs do not qualify for hedge accounting, changes in the fair value of interest rate cap ~~and floor~~ agreements purchased by the SPEs and interest rate cap ~~and floor~~ agreements sold by us are recorded in interest expense.

Foreign Currency Swap Agreements Our policy is to minimize exposure to changes in currency exchange rates. To meet funding objectives, we borrow in a variety of currencies. We face exposure to currency exchange rates when the currency of our earning assets differs from the currency of the debt funding those assets. When possible, we fund earning assets with debt in the same currency, minimizing exposure to exchange rate movements. When a different currency is used, we may use foreign currency swaps to convert our debt obligations to the local currency of the earning assets being financed.

We designate certain pay-fixed, receive-fixed cross-currency swaps as cash flow hedges of foreign currency-denominated debt. The risk being hedged is the variability in the cash flows for the payments of both principal and interest attributable to changes in foreign currency exchange rates. If the hedge relationship is deemed to be highly effective, we record the effective portion of changes in the fair value of the swap in accumulated other comprehensive income (loss). When the hedged cash flows affect earnings via principal remeasurement or accrual of interest expense, we reclassify these amounts to operating expenses or interest expense. Any ineffective portion of a cash flow hedge is recorded to interest expense immediately.

We designate certain pay-float, receive-float cross-currency swaps as fair value hedges of foreign currency-denominated debt. The risk being hedged is the foreign exchange risk associated with the remeasurement of the foreign currency-denominated debt. We assess effectiveness of these hedge relationships based on changes in fair value attributable only to changes in spot exchange rates. If the hedge relationship is deemed to be highly effective, we record changes in the fair value of the swap attributable to changes in spot exchange rates to operating expenses and changes in the fair value of the swap attributable to components excluded from the assessment of hedge effectiveness in accumulated other comprehensive income (loss), and reclassify interest accrual components to interest expense.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

the swap attributable to changes in spot exchange rates to operating expenses and changes in the fair value of the swap attributable to components excluded from the assessment of hedge effectiveness in accumulated other comprehensive income (loss), and reclassify interest accrual components to interest expense.

Fair Value Financial instruments are considered Level 1 when quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

Financial instruments are considered Level 2 when inputs other than quoted prices are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

Financial instruments are considered Level 3 when their values are determined using price models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. Level 3 financial instruments also include those for which the determination of fair value requires significant management judgment or estimation.

Income Taxes We account for income taxes on a separate return basis using an asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, net operating loss and tax credit carryforwards. A valuation allowance is recognized if it is more likely than not that some portion of or the entire deferred tax asset will not be realized.38

WeTable ~~record uncertain tax positions on the basis~~ of a two-step process whereby: (i) we determine whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position; and (ii) for those tax positions that meet the more likely than not recognition, we recognize the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. We record interest and penalties on uncertain tax positions in income tax provision. Contents

GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Income Taxes We record uncertain tax positions on the basis of a two-step process whereby: (i) we determine whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position; and (ii) for those tax positions that meet the more likely than not recognition, we recognize the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. We record interest and penalties on uncertain tax positions in income tax provision.

Our investment tax credits related to leased electric vehicles (EVs) are accounted for using the deferral method and are recognized as an offset to leased vehicle depreciation expense. The benefit is recorded on a straight-line basis over the term of the vehicle’s operating lease agreement.

Revenue Recognition Finance charge income earned on finance receivables is recognized using the effective interest method. Fees and commissions received (including manufacturer subvention) and direct costs of originating loans are generally deferred and amortized over the term of the related finance receivables using the effective interest method and are removed from the consolidated balance sheets when the related finance receivables are fully charged off or paid in full. Finance charge income earned on finance receivables held-for-sale is recognized based on the contractual annual percentage rate. We may receive servicing fees for off-balance-sheet securitizations, which are reported in other income.

Accrual of finance charge income on retail finance receivables is generally suspended on accounts that are more than 60 days delinquent, accounts in bankruptcy and accounts in repossession. Payments received on nonaccrual loans are first applied to any fees due, then to any interest due and then any remaining amounts are applied to principal. Interest accrual generally resumes once an account has received payments bringing the delinquency status to less than 60 days past due.

Accrual of finance charge income on commercial finance receivables is generally suspended on accounts that are more than 90 days delinquent, upon receipt of a bankruptcy notice from a borrower, or where reasonable doubt exists about the full collectability of contractually agreed upon principal and interest. Payments received on nonaccrual loans are first applied to principal. Interest accrual resumes once an account has received payments bringing the account fully current and collection of contractual principal and interest is reasonably assured (including amounts previously charged off).

Rental income earned on leased vehicles, which includes lease origination fees, net of lease origination costs, is recognized on a straight-line basis over the term of the lease agreement. Gains or losses realized upon disposition of off-lease vehicles, including any payments received from lessees upon lease termination, are included in leased vehicle expenses.

Parent Company Stock-Based Compensation We measure and record compensation expense for parent company stock-based compensation awards based on the award's estimated fair value. We record compensation expense over the applicable vesting period of an award. Refer to Note 1213 for further information.

37Recently Adopted Accounting Standards The following Accounting Standards Updates (ASUs) adopted during 2025 had no material impact on our consolidated financial statements or disclosures:


ASU						Effective Date
2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures						January 1, 2025
2025-05 Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets						September 30, 2025

Accounting Standards Not Yet Adopted In September 2025, the Financial Accounting Standards Board (FASB) issued ASU 2025-06 "Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software." ASU 2025-06 modernizes the accounting for internal-use software under ASC 350-40 by aligning it with current development practices, especially agile and iterative methods. It clarifies when to begin capitalizing costs, improves operability across different development approaches, and enhances disclosure requirements. This update is effective for interim and annual periods beginning after December 15, 2027, with early adoption permitted. ASU 2025-06 is not expected to significantly change our current accounting for internal-use software.

In November 2025, the FASB issued ASU 2025-08 "Financial Instruments — Credit Losses (Topic 326): Purchased Loans." ASU 2025-08 expands the population of acquired financial assets subject to the gross-up approach to purchased seasoned loans. Under the gross-up approach, acquired financial assets that are determined to be seasoned are recognized at amortized cost basis offset by allowance for credit losses at acquisition. No provision for loan losses is recognized at acquisition. All non-purchase credit deteriorated loans acquired in a business combination are deemed seasoned. Other non-purchase credit deteriorated loans are deemed seasoned if purchased at least ninety days after origination and the acquirer was

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

~~Note~~not 2involved in the origination. ~~Related~~This ~~Party~~update ~~Transactions~~is effective for annual and interim periods beginning after December 15, 2026, with early adoption permitted. Entities should apply the amendments prospectively to loans acquired on or after the adoption date. We are currently evaluating the impact of the adoption of ASU 2025-08 and do not expect a material impact on our consolidated financial statements.

WeAll ~~offer~~other ~~loan~~ASUs ~~and~~issued ~~lease~~but ~~finance~~not ~~products~~yet ~~through~~adopted ~~GM-franchised~~were ~~dealers~~assessed ~~to customers purchasing new vehicles manufactured by GM~~ and ~~certain~~determined ~~used vehicles and make commercial loans directly~~ to ~~GM-franchised~~be ~~dealers~~not ~~and~~applicable ~~their~~or ~~affiliates.~~are Wenot ~~also~~expected ~~offer~~to ~~commercial~~have ~~loans~~a tomaterial ~~dealers~~impact ~~that~~on ~~are~~our consolidated byfinancial GMstatements ~~and~~or ~~those balances are included in finance receivables, net~~disclosures.

~~Under~~Note subvention programs, GM makes cash payments to us for offering incentivized rates and structures on retail loan and lease finance products. In addition, GM makes cash payments to us to cover interest payments on certain commercial loans we make to GM-franchised dealers. We received subvention payments from GM of $3.8 billion, $3.5 billion and $2.4 ~~billion~~Marketable ~~for 2024, 2023~~ and ~~2022.~~Other ~~Subvention~~Securities ~~due from GM is recorded as a related party receivable.~~

The following table summarizes the fair value of cash equivalents and marketable debt securities, which approximates cost:


	Fair Value Level	December 31, 2025		December 31, 2024
Cash and cash equivalents
Cash and time deposits		$	3,025	$	2,793
Available-for-sale debt securities
U.S. government and agencies	2	430		—

Sovereign debt	2	99		124
Total available-for-sale debt securities – cash equivalents		530		124
Money market funds	1	2,272		2,177
Total cash and cash equivalents		$	5,826	$	5,094
Marketable debt securities(a)
U.S. government and agencies	2	$	39	$	—


Total available-for-sale debt securities – marketable securities		$	39	$	—
Restricted cash(a)
Cash and cash equivalents		$	235	$	190
Money market funds	1	2,981		2,798
Total restricted cash		$	3,217	$	2,987

Available-for-sale debt securities included above with contractual maturities
Due in one year or less		$	565
Due between one and five years		3


Total available-for-sale debt securities with contractual maturities		$	569

________________

(a) Included in other assets.

Net unrealized gains and losses on available-for-sale debt securities were insignificant and none in 2025 and 2024. Cumulative unrealized losses on available-for-sale debt securities were insignificant and none at December 31, 2025 and 2024. At December 31, 2025, we did not intend to sell the available-for-sale debt securities, and it was unlikely that we would be required to sell the available-for-sale debt securities before recovery of amortized costs. No allowance for credit losses was recorded on available-for-sale debt securities in an unrealized loss position at December 31, 2025 and 2024.

Note 3. Related Party Transactions

We offer loan and lease finance products through GM-franchised dealers to customers purchasing new vehicles manufactured by GM and certain used vehicles and make commercial loans directly to GM-franchised dealers and their affiliates. Certain of our dealer customers are consolidated by GM, and receivables from those customers are included in finance receivables, net.

Under subvention programs, GM makes cash payments to us for offering incentivized rates and structures on retail loan and lease finance products. In addition, GM makes cash payments to us to cover interest payments on certain commercial loans we make to GM-franchised dealers. We received subvention payments from GM of $3.3 billion, $3.8 billion and $3.5 billion for 2025, 2024 and 2023. Subvention due from GM is recorded as a related party receivable.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Cruise was the GM global segment focused on autonomous driving strategy for personal vehicles. We previously provided a line of credit to Cruise to fund the purchase of autonomous vehicles from GM in support of commercialization. The line of credit expired on December 31, 2024, and all outstanding borrowings were paid off as of March 31, 2025. Amounts due from Cruise were included in finance receivables, net.

Amounts due to GM for commercial finance receivables originated but not yet funded are recorded as a related party payable.

~~Cruise~~We ~~was~~are ~~the~~included in GM's ~~global~~consolidated ~~segment~~U.S. ~~responsible~~federal ~~for~~income ~~the~~tax ~~development~~return and ~~commercialization~~certain ~~of autonomous vehicle technology~~U.S. ~~Under~~state ~~the~~returns, ~~terms~~and ofwe aare ~~multi-year~~obligated ~~credit~~to ~~agreement,~~pay weGM ~~previously~~for ~~provided~~our ashare ~~line~~ of ~~credit~~the torelated ~~Cruise~~tax toliabilities. ~~fund~~During ~~the~~2025 ~~purchase~~and of2023, ~~autonomous~~we ~~vehicles~~made ~~from~~payments ~~GM in support~~ of ~~commercialization.~~$84 ~~Advances~~million ~~under~~and ~~this~~$72 ~~line~~million ofto ~~credit~~GM ~~are~~for ~~guaranteed~~state byand GMfederal ~~Cruise~~income ~~Holdings~~taxes ~~LLC.~~related ~~The~~to ~~line~~the oftax ~~credit~~years ~~expired~~2022 onthrough ~~December~~2025. ~~31,~~During 2024, ~~and~~ no ~~additional~~payments ~~advances~~were ~~will be~~ made. Atto ~~December 31,~~GM ~~2024~~for ~~and~~state ~~December 31, 2023, Cruise had $395 million~~ and ~~$353~~federal ~~million~~income ~~of borrowings outstanding under the credit agreement~~taxes. ~~Principal~~Amounts ~~payments are~~ due ~~starting~~from in(owed ~~the~~to) ~~second~~GM ~~quarter~~for ofincome ~~2025~~taxes ~~through~~are ~~the~~recorded ~~first~~as ~~quarter~~a ofrelated ~~2027.~~party ~~Amounts~~receivable ~~due from Cruise are included in finance receivables, net~~(payable).

WeThe ~~are~~following ~~included~~tables inpresent ~~GM's~~balance ~~consolidated~~sheet ~~U.S. federal income tax returns~~ and certain U.S. state returns, and we are obligated to pay GM for our share of the related tax liabilities. During 2024, we moved from a taxes payable position of $384 million to a taxes receivable position of $70 million, primarily due to a change in our tax depreciation method. During 2024, no payments were made to GM for state and federal income ~~taxes.~~statement ~~During~~data ~~2023 and 2022, we made payments of $72 million and $690 million to GM~~ for ~~state and federal income taxes~~ related ~~to the tax years 2020 through 2023. Amounts due from (owed to) GM for income taxes are recorded as a related~~ party ~~receivable (payable).~~transactions:

The following tables present related party transactions:


Balance Sheet Data	December 31, 2025		December 31, 2024
Commercial finance receivables due from dealers consolidated by GM	$	395	$	279
Commercial finance receivables due from Cruise	$	—	$	395
Subvention receivable from GM	$	452	$	360
Commercial loan funding payable to GM	$	94	$	100
Taxes receivable from (payable to) GM	$	(33)	$	70

Balance Sheet Data	December 31, 2024		December 31, 2023
	Years Ended December 31,
Commercial finance receivables due from dealers consolidated by GM	$	279	$	164
Income Statement Data	2025		2024		2023
Commercial finance receivables due from Cruise	$	395	$	353
Interest subvention earned on retail finance receivables(a)	$	1,313	$	1,274	$	1,126
Subvention receivable from GM	$	360	$	508
Interest subvention earned on commercial finance receivables(a)	$	91	$	112	$	108
Commercial loan funding payable to GM	$	100	$	55
Leased vehicle subvention earned(b)	$	1,796	$	1,511	$	1,537
Taxes receivable from (payable to) GM	$	70	$	(384)

	Years Ended December 31,
Income Statement Data	2024		2023		2022
Interest subvention earned on retail finance receivables(a)	$	1,274	$	1,126	$	921
Interest subvention earned on commercial finance receivables(a)	$	112	$	108	$	63
Leased vehicle subvention earned(b)	$	1,511	$	1,537	$	1,916

_________________

(a)Included in finance charge income.

(b)Included as a reduction to leased vehicle expenses.

Under the support agreement with GM (the Support Agreement), if our earning assets leverage ratio at the end of any calendar quarter exceeds the applicable threshold set in the Support Agreement, we may require GM to provide funding sufficient to bring our earning assets leverage ratio within the applicable threshold. 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.

Additionally, the Support Agreement provides that GM will own all of our outstanding voting shares as long as we have any unsecured debt securities outstanding. GM also agrees to certain provisions in the Support Agreement intended to ensure we maintain adequate access to liquidity. Pursuant to these provisions, GM provides us with a $1.0 billion junior subordinated unsecured intercompany revolving credit facility, and GM will use commercially reasonable efforts to ensure that we will continue to be designated as a subsidiary borrower under GM's corporate revolving credit facilities. We have access, subject to available capacity, to $14.1 billion of GM's unsecured revolving credit facilities consisting of a five-year, $10.0 billion facility (the five-year facility) and a three-year, $4.1 billion facility (the three-year facility). We also have exclusive access to GM's $2.0 billion 364-Day Revolving Credit Facility (GM Revolving 364-Day Credit Facility). We had no borrowings outstanding under any of the GM revolving credit facilities at December 31, 2025 or December 31, 2024. In March 2025, GM renewed the five-year facility, which now matures March 25, 2030, the three-year facility, which now matures March 25, 2028, and the GM Revolving 364-Day Credit Facility, which now matures March 24, 2026.

3841

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

weNote maintain adequate access to liquidity. Pursuant to these provisions, GM provides us with a $1.0 billion junior subordinated unsecured intercompany revolving credit facility, and GM will use commercially reasonable efforts to ensure that we will continue to be designated as a subsidiary borrower under GM's corporate revolving credit facilities. We have access, subject to available capacity, to $14.1 billion of GM's unsecured revolving credit facilities consisting of a five-year, $10.0 billion facility and a three-year, $4.1 ~~billion~~Finance ~~facility.~~Receivables We also have exclusive access to GM's $2.0 billion 364-Day Revolving Credit Facility (GM Revolving 364-Day Credit Facility). We had no borrowings outstanding under any of the GM revolving credit facilities at December 31, 2024 or 2023. In March 2024, GM renewed the GM Revolving 364-Day Credit Facility, which matures on March 27, 2025.

Note 3. Finance Receivables


	December 31, 2025		December 31, 2024
Retail finance receivables
Retail finance receivables(a)	$	75,404	$	76,066
Less: allowance for loan losses	(2,656)		(2,400)
Total retail finance receivables, net	72,748		73,667
Commercial finance receivables
Commercial finance receivables(a)(b)	17,365		19,901
Less: allowance for loan losses	(68)		(58)
Total commercial finance receivables, net	17,297		19,843
Total finance receivables, net	$	90,045	$	93,510
Fair value utilizing Level 2 inputs	$	17,297	$	19,843
Fair value utilizing Level 3 inputs	$	74,409	$	74,729

	December 31, 2024		December 31, 2023
Retail Finance Receivables
Retail finance receivables(a)	$	76,066	$	72,729
Less: allowance for loan losses	(2,400)		(2,308)
Total retail finance receivables, net	73,667		70,421
Commercial Finance Receivables
Commercial finance receivables(a)(b)	19,901		14,251
Less: allowance for loan losses	(58)		(36)
Total commercial finance receivables, net	19,843		14,216
Total finance receivables, net	$	93,510	$	84,637
Fair value utilizing Level 2 inputs	$	19,843	$	14,216
Fair value utilizing Level 3 inputs	$	74,729	$	70,911

________________

(a)Net of unearned income, unamortized premiums and discounts, and deferred fees and costs.

(b)Includes dealer financing of $1816.98 billion and $1318.49 billion, and other financing of $~~999~~596 million and $~~830~~999 million at December 31, ~~2024~~2025 and ~~2023~~2024. Commercial finance receivables are presented net of dealer cash management balances of $3.4 billion ~~and $2.6 billion~~ at both December 31, ~~2024~~2025 and ~~2023~~2024.

Rollforward of Allowance for Retail Loan Losses A summary of the activity in the allowance for retail loan losses is as follows:

Years Ended December 31,

2024

2023

2022

2025

2024

2023

Allowance for retail loan losses beginning balance

2,~~308~~400

2,~~062~~308

12,~~839~~062

Provision for loan losses

1,~~005~~180

~~826~~1,005

~~668~~826

Charge-offs

(1,~~754~~998)

(1,~~423~~754)

(1,~~138~~423)

Recoveries

~~901~~1,035

~~767~~901

~~685~~767

Foreign currency translation and other

~~(61)~~40

76(61)

976

Allowance for retail loan losses ending balance

2,~~400~~656

2,~~308~~400

2,~~062~~308

The allowance for retail loan losses as a percentage of retail finance receivables was 3.5% and 3.2% at ~~both~~ December 31, ~~2024~~2025 and ~~2023~~2024. The increase in the allowance for loan losses as a percentage of retail finance receivables is primarily due to changes in the composition of credit mix of the portfolio.

39Retail Credit Quality Our retail finance receivables portfolio includes loans made to consumers and businesses to finance the purchase of vehicles for personal and commercial use. The following tables are consolidated summaries of the amortized cost basis of the retail finance receivables by FICO score or its equivalent, determined at origination, for each vintage of the portfolio at December 31, 2025 and 2024:


	Year of Origination												December 31, 2025
	2025		2024		2023		2022		2021		Prior		Total		Percent
Prime - FICO Score 680 and greater	$	22,850	$	15,204	$	9,298	$	5,350	$	2,712	$	1,027	$	56,440	74.9	%
Near-prime - FICO Score 620 to 679	3,702		2,456		1,439		908		571		225		9,303		12.3
Sub-prime - FICO Score less than 620	3,847		2,530		1,395		958		614		318		9,661		12.8
Retail finance receivables	$	30,399	$	20,191	$	12,132	$	7,216	$	3,897	$	1,570	$	75,404	100.0	%

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Retail Credit Quality Our retail finance receivables portfolio includes loans made to consumers and businesses to finance the purchase of vehicles for personal and commercial use. The following tables are consolidated summaries of the amortized cost of the retail finance receivables by FICO score or its equivalent, determined at origination, for each vintage of the portfolio at December 31, 2024 and 2023:


	Year of Origination												December 31, 2024
	2024		2023		2022		2021		2020		Prior		Total		Percent
Prime - FICO Score 680 and greater	$	24,155	$	15,814	$	9,749	$	5,424	$	2,559	$	366	$	58,067	76.3	%
Near-prime - FICO Score 620 to 679	3,547		2,227		1,507		1,077		473		159		8,990		11.8
Sub-prime - FICO Score less than 620	3,399		2,059		1,546		1,141		543		322		9,008		11.8
Retail finance receivables	$	31,101	$	20,100	$	12,802	$	7,642	$	3,575	$	847	$	76,066	100.0	%

	Year of Origination												December 31, 2023
	2023		2022		2021		2020		2019		Prior		Total		Percent
Prime - FICO Score 680 and greater	$	23,940	$	15,581	$	9,039	$	4,926	$	1,076	$	320	$	54,882	75.5	%
Near-prime - FICO Score 620 to 679	3,234		2,281		1,746		906		350		129		8,647		11.9
Sub-prime - FICO Score less than 620	3,079		2,397		1,884		1,010		573		257		9,200		12.6
Retail finance receivables	$	30,253	$	20,259	$	12,670	$	6,842	$	2,000	$	707	$	72,729	100.0	%

We review the ongoing credit quality of our retail finance receivables based on customer payment activity. A retail account is considered delinquent if a substantial portion of a scheduled payment has not been received by the date the payment was contractually due. Retail finance receivables are collateralized by vehicle titles, and, subject to local laws, we generally have the right to repossess the vehicle in the event the customer defaults on the payment terms of the contract. The following tables are consolidated summaries of the amortized cost basis of retail finance receivables by delinquency status for each vintage of the portfolio at December 31, 2025 and 2024. The tables also present gross charge-offs by vintage for 2025 and 2024:

We review the ongoing credit quality of our retail finance receivables based on customer payment activity. A retail account is considered delinquent if a substantial portion of a scheduled payment has not been received by the date the payment was contractually due. Retail finance receivables are collateralized by vehicle titles, and, subject to local laws, we generally have the right to repossess the vehicle in the event the customer defaults on the payment terms of the contract. The following tables are consolidated summaries of the amortized cost of retail finance receivables by delinquency status for each vintage of the portfolio at December 31, 2024 and 2023. The tables also present gross charge-offs by vintage for 2024 and 2023:


	Year of Origination												December 31, 2025
	2025		2024		2023		2022		2021		Prior		Total		Percent
0 - 30 days	$	29,871	$	19,413	$	11,524	$	6,744	$	3,576	$	1,395	$	72,523	96.2	%

31 - 60 days	370		536		419		334		230		122		2,011		2.7
Greater than 60 days	140		218		172		129		86		51		795		1.1
Finance receivables more than 30 days delinquent	510		753		591		463		316		173		2,806		3.7
In repossession	18		24		17		10		6		2		75		0.1
Finance receivables more than 30 days delinquent or in repossession	527		777		608		472		321		175		2,881		3.8
Retail finance receivables	$	30,399	$	20,191	$	12,132	$	7,216	$	3,897	$	1,570	$	75,404	100.0	%
Gross charge-offs	$	187	$	603	$	536	$	358	$	201	$	113	$	1,998


	Year of Origination												December 31, 2024
	2024		2023		2022		2021		2020		Prior		Total		Percent
0 - 30 days	$	30,581	$	19,411	$	12,207	$	7,178	$	3,350	$	710	$	73,438	96.5	%

31 - 60 days	374		481		425		340		166		99		1,885		2.5
Greater than 60 days	128		188		155		115		55		36		677		0.9
Finance receivables more than 30 days delinquent	502		669		580		455		221		135		2,562		3.4
In repossession	17		19		14		10		3		2		66		0.1
Finance receivables more than 30 days delinquent or in repossession	519		689		595		464		225		136		2,628		3.5
Retail finance receivables	$	31,101	$	20,100	$	12,802	$	7,642	$	3,575	$	847	$	76,066	100.0	%
Gross charge-offs	$	171	$	556	$	495	$	305	$	126	$	102	$	1,754

40The accrual of finance charge income had been suspended on retail finance receivables with contractual amounts due of $1.1 billion and $958 million at December 31, 2025 and 2024.

Loan Modifications The amortized cost basis at December 31, 2025 and 2024 of the loans modified during 2025 and 2024 was insignificant. The unpaid principal balances, net of recoveries, of loans charged off during the reporting period that were modified within 12 months preceding default were insignificant for 2025 and 2024. Refer to Note 1 for additional information.

Commercial Credit Quality Our commercial finance receivables consist of dealer financing, primarily for dealer inventory purchases, and other financing, which includes loans to commercial vehicle upfitters, as well as advances to certain GM subsidiaries.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

	Year of Origination												December 31, 2023
	2023		2022		2021		2020		2019		Prior		Total		Percent
0 - 30 days	$	29,816	$	19,602	$	12,098	$	6,533	$	1,825	$	599	$	70,472	96.9	%
31 - 60 days	318		470		415		227		130		78		1,637		2.3
Greater than 60 days	102		168		142		76		42		29		559		0.8
Finance receivables more than 30 days delinquent	421		637		557		302		172		107		2,196		3.0
In repossession	17		20		14		6		3		1		61		0.1
Finance receivables more than 30 days delinquent or in repossession	437		657		572		308		175		108		2,257		3.1
Retail finance receivables	$	30,253	$	20,259	$	12,670	$	6,842	$	2,000	$	707	$	72,729	100.0	%
Gross charge-offs	$	143	$	494	$	399	$	192	$	108	$	87	$	1,423

For our dealer financing, we use proprietary models to assign a risk rating to each dealer. We perform periodic credit reviews of each dealership and adjust the dealership's risk rating, if necessary. There is limited credit risk associated with other financing due to the structure of the business relationships.

The accrual of finance charge income had been suspended on retail finance receivables with contractual amounts due of $958 million and $809 million at December 31, 2024 and 2023.

Loan Modifications The amortized costs at December 31, 2024 and 2023 of the loans modified during 2024 and 2023 were insignificant. The unpaid principal balances, net of recoveries, of loans charged off during the reporting period that were modified within 12 months preceding default were insignificant for 2024 and 2023. Refer to Note 1 for additional information.

For our dealer financing, we use proprietary models to assign a risk rating to each dealer and perform periodic credit reviews of each dealership. We adjust the dealership's risk rating, if necessary. There is limited credit risk associated with other financing due to the structure of the business relationships.

Our dealer risk model and risk rating categories are as follows:


Dealer Risk Rating						Description
I						Performing accounts with strong to acceptable financial metrics with at least satisfactory capacity to meet financial commitments.
II						Performing accounts experiencing potential weakness in financial metrics and repayment prospects resulting in increased monitoring.
III						Non-Performing accounts with inadequate paying capacity for current obligations and that have the distinct possibility of creating a loss if deficiencies are not corrected.
IV						Non-Performing accounts with inadequate paying capacity for current obligations and inherent weaknesses that make collection or liquidation in full highly questionable or improbable.

41Dealers with III and IV risk ratings are subject to additional monitoring and restrictions on funding, including suspension of lines of credit and liquidation of assets. The following tables summarize the dealer finance receivables portfolio by dealer risk rating at December 31, 2025 and 2024:

Table of Contents


	Year of Origination														December 31, 2025
Dealer Risk Rating	Revolving		2025		2024		2023		2022		2021		Prior		Total		Percent
I	$	13,704	$	380	$	221	$	125	$	298	$	160	$	156	$	15,045	89.7	%
II	989		16		33		25		7		35		2		1,106		6.6
III	518		5		48		6		14		14		12		618		3.7
IV	—		—		—		—		—		—		—		—		—
Balance at end of period	$	15,211	$	402	$	302	$	157	$	319	$	209	$	170	$	16,769	100.0	%

GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Dealers with III and IV risk ratings are subject to additional monitoring and restrictions on funding, including suspension of lines of credit and liquidation of assets. The following tables summarize the dealer credit risk profile by dealer risk rating at December 31, 2024 and 2023:


	Year of Origination														December 31, 2024
Dealer Risk Rating	Revolving		2024		2023		2022		2021		2020		Prior		Total		Percent
I	$	16,429	$	350	$	211	$	360	$	237	$	267	$	32	$	17,885	94.6	%
II	621		—		10		26		3		2		—		663		3.5
III	305		10		4		—		22		—		12		354		1.9
IV	1		—		—		—		—		—		—		1		0.0
Balance at end of period	$	17,356	$	360	$	225	$	385	$	263	$	269	$	44	$	18,902	100.0	%

	Year of Origination														December 31, 2023
Dealer Risk Rating	Revolving		2023		2022		2021		2020		2019		Prior		Total		Percent
I	$	11,638	$	295	$	417	$	297	$	301	$	85	$	11	$	13,043	97.2	%
II	182		—		2		2		—		—		—		187		1.4
III	152		1		15		12		—		11		—		192		1.4
IV	—		—		—		—		—		—		—		—		—
Balance at end of period	$	11,971	$	296	$	435	$	311	$	301	$	96	$	11	$	13,422	100.0	%

Floorplan advances comprise 99.1% and 99.5% of the total revolving balances at December 31, 2025 and 2024. Dealer term loans are presented by year of origination.

~~Floorplan~~At ~~advances~~December 31, ~~comprise~~2025 ~~99.5%~~ and ~~99.7%~~2024, substantially all of our commercial finance receivables were current with respect to payment status, and activity in the ~~total~~allowance ~~revolving~~for ~~balances~~commercial atloan ~~December 31~~losses was insignificant for 2025, 2024 and 2023. ~~Dealer~~There ~~term~~were ~~loans~~no ~~are~~commercial ~~presented~~finance byreceivables ~~year~~on ofnonaccrual ~~origination~~status at December 31, 2025 and 2024.

AtThere ~~December 31, 2024 and 2023, substantially all of our commercial finance receivables~~ were ~~current~~insignificant ~~with~~charge-offs ~~respect~~during ~~to payment status~~2025, and ~~activity~~no ~~in the allowance for commercial~~ loan ~~losses~~modifications ~~was insignificant for 2024, 2023 and 2022. There~~ were noextended ~~commercial~~to ~~finance~~borrowers ~~receivables~~experiencing onfinancial ~~nonaccrual~~difficulty ~~status~~during at2025 ~~December 31, 2024~~ and ~~2023~~2024.

~~There~~Transfers ~~were~~of ~~insignificant~~Finance ~~charge-offs~~Receivables ~~during~~During ~~2024~~2025, ~~and~~we noreclassified $2.0 billion in retail finance receivables held-for-investment to finance receivables held-for-sale. A previously recorded insignificant allowance for loan ~~modifications~~losses was reversed through provision for loan losses at the time of reclassification. The finance receivables were ~~extended~~sold to ~~borrowers~~third-party ~~experiencing~~purchasers ~~financial~~for ~~difficulty~~$2.0 ~~during~~billion ~~2024~~in cash proceeds, and ~~2023~~we recognized an insignificant gain on the sale. The transaction met the sale criteria for transfers of financial assets. We have continuing involvement with the finance receivables transferred, primarily in our role as servicer. The outstanding balance of the transferred finance receivables subject to continuing involvement was $1.7 billion at December 31, 2025. Refer to Note 1 for information on sale criteria and to Note 11 for information on our representations and warranties related to the sale.

~~Note 4. Leased Vehicles~~44

	December 31, 2024		December 31, 2023
Leased vehicles(a)	$	38,187	$	37,921
Less: accumulated depreciation	(6,601)		(7,338)
Leased vehicles, net	$	31,586	$	30,582

(a) Net of vehicle acquisition costs, less manufacturer incentives and investment tax credits.

Depreciation expense related to leased vehicles, net was $4.8 billion, $4.9 billion and $4.8 billion in 2024, 2023 and 2022.

The following table summarizes minimum rental payments due to us as lessor under operating leases at December 31, 2024:

	Years Ending December 31,
	2025		2026		2027		2028		2029		Total
Lease payments under operating leases	$	5,195	$	3,371	$	1,257	$	135	$	1	$	9,959

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Note 5. ~~Goodwill~~Leased ~~and Intangible Assets~~Vehicles


	December 31, 2025		December 31, 2024
Leased vehicles(a)	$	40,596	$	38,187
Less: accumulated depreciation	(6,909)		(6,601)
Leased vehicles, net	$	33,686	$	31,586

________________

(a) Net of vehicle acquisition costs, less manufacturer incentives and investment tax credits.

Depreciation expense related to leased vehicles, net was $4.9 billion, $4.8 billion and $4.9 billion in 2025, 2024 and 2023.

The following table summarizes minimum rental payments due to us as lessor under operating leases at December 31, 2025:


	Years Ending December 31,
	2026		2027		2028		2029		2030		Total
Lease payments under operating leases	$	5,442	$	3,342	$	1,175	$	126	$	1	$	10,085

Note 6. Goodwill and Intangible Assets

The following table summarizes the changes in the carrying amounts of goodwill by segment:

	Years Ended December 31,
	2024						2023						2022
	2025						2024						2023
	North America		International		Total		North America		International		Total		North America		International		Total
Beginning balance	$	1,~~105~~104	$	7358	$	1,~~178~~163	$	1,105	$	6673	$	1,~~171~~178	$	1,105	$	6466	$	1,~~169~~171
Foreign currency translation	~~(1)~~—		~~(14)~~8		~~(15)~~8		—(1)		7(14)		7(15)		~~(1)~~—		37		27
Ending balance	$	1,~~104~~105	$	5866	$	1,~~163~~171	$	1,~~105~~104	$	7358	$	1,~~178~~163	$	1,105	$	6673	$	1,~~171~~178

As of December 31, ~~2024~~2025 and ~~2023~~2024, intangible assets were insignificant.

Note 67. Equity in Net Assets of Nonconsolidated Affiliates

We use the equity method to account for our equity interest in joint ventures. Revenue and expenses of our joint ventures are not consolidated into our financial statements; rather, our proportionate share of the earnings of each joint venture is reflected as equity income (loss).

The following tables present certain aggregated financial data of our joint ventures:

Summarized Balance Sheet Data	December 31, ~~2024~~2025		December 31, ~~2023~~2024
Finance receivables, net	$	86,~~852~~131	$	188,~~142~~852
Total assets	$	96,~~966~~972	$	199,~~629~~966
Debt	$	52,~~421~~881	$	135,~~692~~421
Total liabilities	$	63,~~495~~752	$	156,~~751~~495

Years Ended December 31,

Summarized Operating Data

~~2024~~2025

~~2023~~2024

~~2022~~2023

Finance charge income

~~928~~499

~~1,373~~928

1,~~636~~373

Provision for loan losses

~~226~~45

~~182~~226

~~172~~182

Income before income taxes

~~246~~197

~~525~~246

~~661~~525

Net income

~~185~~114

~~393~~185

~~494~~393

~~The following table summarizes our direct ownership interests in China joint ventures:~~45

Joint Ventures	December 31, 2024		December 31, 2023
SAIC-GMAC Automotive Finance Company Limited (SAIC-GMAC)	35	%	35	%
SAIC-GMF Leasing Co. Ltd.	35	%	35	%

In 2024, 2023 and 2022, SAIC-GMAC Automotive Finance Company Limited paid $491 million, $273 million and $342 million of cash dividends, of which our share was $172 million, $96 million and $120 million. At December 31, 2024 and 2023, we had undistributed earnings of $729 million and $837 million related to our nonconsolidated affiliates.

Impairment Charges

In response to market challenges and competitive conditions GM and its JV partners are restructuring their operations in China. In addition, we continue to face intense price competition from other auto lenders. Accordingly, we evaluated our investment in SAIC-GMAC for potential impairment, and we determined the carrying value of our investment exceeded its fair value. We concluded that the loss in value was other-than-temporary and recorded an impairment charge of $320 million during 2024. After this charge, the carrying value of our investment represents its fair value.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The following table summarizes our direct ownership interests in China joint ventures:


Joint Ventures	December 31, 2025		December 31, 2024
SAIC-GMAC Automotive Finance Company Limited (SAIC-GMAC)	35	%	35	%
SAIC-GMF Leasing Co. Ltd.	35	%	35	%

In 2025, 2024 and 2023, SAIC-GMAC Automotive Finance Company Limited paid $513 million, $491 million and $273 million of cash dividends, of which our share was $179 million, $172 million and $96 million. At December 31, 2025 and 2024, we had undistributed earnings of $589 million and $729 million related to our nonconsolidated affiliates.

Impairment Charges

During 2024, in response to market challenges and competitive conditions, GM and its joint venture partners restructured their operations in China. Accordingly, we evaluated our investment in SAIC-GMAC for potential impairment, and we determined the carrying value of our investment exceeded its fair value. We concluded that the loss in value was other-than-temporary and recorded an impairment charge of $320 million.

Fair Value Measurement

The fair value of our investment in SAIC-GMAC was determined using the income approach based primarily on ~~the~~discounted ~~best~~cash ~~available~~flow ~~information,~~projections. ~~primarily~~The ~~discounted~~investment ~~cash~~balance ~~flow~~for ~~projections~~SAIC-GMAC that was tested for impairment was $1.5 billion in 2024. We ~~make~~made significant assumptions and estimates about the extent and timing of future cash flows, growth rates, and discount rate that ~~represent~~represented unobservable, Level 3, inputs into our valuation methodology. Our fair value estimate assumed the achievement of the future financial results contemplated in our forecasted cash flows which is subject to significant uncertainties.

~~The~~Note ~~investment balance for SAIC-GMAC that was tested for impairment was $1~~8.~~5 billion.~~ Our cash flow projections were based on GM's industry sales volume and market share forecast. Other key assumptions include a 13.0% cost of equity and a 3.5% long-term growth rate. The cost of equity is based on the capital asset pricing model, which includes risk free rates and equity risk premiums. In addition, we estimated minimum operating cash needs that incorporate specific business, economic and regulatory factors giving rise to varying cash needs. Debt

Our fair value estimate assumes the achievement of the future financial results contemplated in our forecasted cash flows which is subject to significant uncertainties. There is no assurance that anticipated financial results will be achieved.


	December 31, 2025				December 31, 2024
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Secured Debt
Revolving credit facilities	$	1,869	$	1,869	$	5,426	$	5,426
Securitization notes payable	45,035		45,384		44,147		44,327
Total secured debt	46,904		47,252		49,573		49,753
Unsecured Debt
Senior notes	55,848		57,277		53,632		54,177
Credit facilities	2,863		2,881		2,178		2,174
Other unsecured debt	8,415		8,449		8,880		8,906
Total unsecured debt	67,127		68,607		64,691		65,258
Total secured and unsecured debt	$	114,031	$	115,860	$	114,264	$	115,010
Fair value utilizing Level 2 inputs			$	113,180			$	112,941
Fair value utilizing Level 3 inputs			$	2,679			$	2,070

Secured Debt Most of the secured debt was issued by VIEs and is repayable only from proceeds related to the underlying pledged assets. Refer to Note 79 for further information. ~~Debt~~

	December 31, 2024				December 31, 2023
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Secured Debt
Revolving credit facilities	$	5,426	$	5,426	$	4,960	$	4,960
Securitization notes payable	44,147		44,327		40,284		40,012
Total secured debt	49,573		49,753		45,243		44,971
Unsecured Debt
Senior notes	53,632		54,177		49,990		49,537
Credit facilities	2,178		2,174		2,034		2,026
Other unsecured debt	8,880		8,906		8,060		8,088
Total unsecured debt	64,691		65,258		60,084		59,651
Total secured and unsecured debt	$	114,264	$	115,010	$	105,327	$	104,622
Fair value utilizing Level 2 inputs			$	112,941			$	102,262
Fair value utilizing Level 3 inputs			$	2,070			$	2,360

The weighted average interest rate on secured debt was 4.92% at December 31, 2025. Issuance costs on secured debt of $89 million and $95 million as of December 31, 2025 and 2024 are amortized to interest expense over the expected term of the secured debt.

~~Secured~~The ~~Debt~~terms ~~Most~~ of ~~the~~our ~~secured~~revolving ~~debt~~credit ~~was~~facilities ~~issued~~provide byfor ~~VIEs~~a revolving period and issubsequent ~~repayable~~amortization ~~only~~period, ~~from~~and ~~proceeds~~borrowings ~~related~~are expected to ~~the~~be ~~underlying~~repaid ~~pledged~~over ~~assets.~~periods ~~Refer~~ranging from 2026 to ~~Note~~2029. 8During ~~for~~2025, ~~further~~we ~~information~~renewed and upsized revolving credit facilities with a total borrowing capacity of $27.8 billion.

The weighted average interest rate on secured debt was 5.17% at December 31, 2024. Issuance costs on secured debt of $95 million and $82 million as of December 31, 2024 and 2023 are amortized to interest expense over the expected term of the secured debt.46

The terms of our revolving credit facilities provide for a revolving period and subsequent amortization period, and borrowings are expected to be repaid over periods ranging up to three years. During 2024, we renewed credit facilities with a total borrowing capacity of $27.4 billion.

Securitization notes payable at December 31, 2024 are due beginning in 2025 and lasting through 2037. During 2024, we issued $24.8 billion in aggregate principal amount of securitization notes payable with an initial weighted average interest rate of 5.30% and maturity dates ranging from 2024 to 2037.

Unsecured Debt

Senior Notes At December 31, 2024, we had $55.1 billion aggregate principal amount outstanding in senior notes that mature from 2025 through 2034 and have a weighted average interest rate of 4.20%. Issuance costs on senior notes of $134 million and $125 million as of December 31, 2024 and 2023 are amortized to interest expense over the term of the notes.

During 2024, we issued $12.5 billion in aggregate principal amount of senior notes with an initial weighted average interest rate of 5.39% and maturity dates ranging from 2027 to 2034.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Securitization notes payable at December 31, 2025 are due beginning in 2026 and lasting through 2037. During 2025, we issued $19.6 billion in aggregate principal amount of securitization notes payable with an initial weighted average interest rate of 4.65% and maturity dates ranging from 2026 to 2037.

Unsecured Debt

Senior Notes At December 31, 2025, we had $56.7 billion aggregate principal amount outstanding in senior notes that mature from 2026 through 2035 and have a weighted average interest rate of 4.41%. Issuance costs on senior notes of $134 million as of both December 31, 2025 and 2024 are amortized to interest expense over the term of the notes.

During 2025, we issued $10.6 billion in aggregate principal amount of senior notes with an initial weighted average interest rate of 5.05% and maturity dates ranging from 2027 to 2035.

General Motors Financial Company, Inc. is the sole guarantor of its subsidiaries' unsecured debt obligations for which a guarantee is provided.

Credit Facilities and Other Unsecured Debt We use unsecured credit facilities with banks as well as non-bank instruments as funding sources. Our credit facilities and other unsecured debt have maturities of up to five years. The weighted average interest rate on these credit facilities and other unsecured debt was 7.1508% at December 31, ~~2024~~2025.

Contractual Debt Obligations The following table presents the expected scheduled principal and interest payments under our contractual debt obligations:

	Years Ending December 31,
	2025		2026		2027		2028		2029		Thereafter		Total
	2026		2027		2028		2029		2030		Thereafter		Total
Secured debt	$	1817,~~010~~687	$	1511,~~071~~755	$	87,~~681~~694	$	45,~~199~~501	$	3,~~556~~391	$	~~131~~893	$	4946,~~648~~920
Unsecured debt	1917,~~378~~456		912,~~058~~230		10,~~649~~560		7,~~368~~634		6,~~584~~907		13,~~118~~270		6668,~~155~~056
Interest payments	4,~~707~~712		3,~~274~~355		2,~~194~~427		1,~~444~~535		~~830~~898		1,~~443~~452		1314,~~892~~379
	$	4239,~~095~~855	$	27,~~403~~340	$	2120,~~524~~680	$	1314,~~011~~670	$	1011,~~970~~195	$	1415,~~692~~615	$	129,~~695~~355

Compliance with Debt Covenants Several of our revolving credit facilities require compliance with certain financial and operational covenants as well as regular reporting to lenders, including providing certain subsidiary financial statements. Certain of our secured debt agreements also contain various covenants, including maintaining portfolio performance ratios as well as limits on deferment levels. Our unsecured debt obligations contain covenants including limitations on our ability to incur certain liens. At December 31, ~~2024~~2025, we were in compliance with these debt covenants.

Note 89. Variable Interest Entities

Securitizations and Credit Facilities The following table summarizes the assets and liabilities related to our consolidated VIEs:

	December 31, 2024		December 31, 2023
	December 31, 2025		December 31, 2024
Restricted cash(a)	$	2,~~761~~888	$	2,~~765~~761
Finance receivables	$	5549,~~456~~533	$	4655,~~648~~456
Lease related assets	$	1413,~~252~~791	$	1514,~~794~~252
Secured debt	$	4946,~~646~~913	$	4549,~~299~~646

_______________

(a) Included in other assets.

~~Note 9. Derivative Financial Instruments and Hedging Activities~~47

We are exposed to certain risks arising from both our business operations and economic conditions. We manage economic risks, including interest rate risk, primarily by managing the amount, sources, and duration of our assets and liabilities and by using derivative financial instruments. Specifically, we enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Our derivative financial instruments are used to manage differences in the amount, timing, and duration of our known or expected cash receipts and our known or expected cash payments principally related to our borrowings.

Certain of our foreign operations expose us to fluctuations of foreign interest rates and exchange rates. We primarily finance our earning assets with debt in the same currency to minimize the impact to earnings from our exposure to fluctuations in exchange rates. When we use a different currency, these fluctuations may impact the value of our cash receipts and payments in terms of our functional currency. We enter into derivative financial instruments to protect the value or fix the amount of certain assets and liabilities in terms of the relevant functional currency.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Note 10. Derivative Financial Instruments and Hedging Activities

We are exposed to certain risks arising from both our business operations and economic conditions. We manage interest rate risk primarily by using derivative financial instruments. Specifically, we enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. We use derivative financial instruments to manage differences in the amount, timing, and duration of our known or expected cash receipts and our known or expected cash payments principally related to our borrowings.

The table below presents the gross fair value amounts of our derivative financial instruments and the associated notional amounts:

December 31, 2024

December 31, 2023

December 31, 2025

December 31, 2024

Notional

Fair Value of Assets

Fair Value of Liabilities

Notional

Fair Value of Assets

Fair Value of Liabilities

Derivatives designated as hedges

Fair value hedges

Interest rate swaps

3633,~~145~~880

3288

~~621~~457

1836,~~379~~145

7532

~~238~~621

Cash flow hedges

Interest rate swaps

12,~~873~~302

3518

423

21,~~381~~873

1735

164

Foreign currency swaps

89,~~363~~226

80580

~~508~~58

8,~~003~~363

~~144~~80

~~311~~508

Derivatives not designated as hedges

Interest rate contracts

~~123~~122,~~346~~505

~~833~~421

~~1,294~~637

~~134~~123,~~683~~346

~~1,573~~833

1,~~997~~294

Total

~~169~~167,~~727~~913

~~981~~1,107

21,~~427~~175

~~163~~169,~~446~~727

~~1,809~~981

2,~~563~~427

The gross amounts of the fair value of our derivative instruments that are classified as assets or liabilities are included in other assets or other liabilities, respectively. Amounts accrued for interest payments in a net receivable position are included in other assets. Amounts accrued for interest payments in a net payable position are included in other liabilities. All our derivatives are categorized within Level 2 of the fair value hierarchy. The fair value for Level 2 instruments was derived using the market approach based on observable market inputs including quoted prices of similar instruments and foreign exchange and interest rate forward curves. Notional principal or contract amounts are reference amounts from which contractual obligations are derived and are not recorded on the balance sheet. Notional amounts do not represent our financial exposure. Our credit exposure is limited to the uncollected interest and the market value related to the instruments that have become favorable to us, to the extent that market values are not collateralized.

We primarily enter into derivative instruments through AmeriCredit Financial Services, Inc. (AFSI); however, our SPEs may also be parties to derivative instruments. Agreements between AFSI and its derivative counterparties include rights of setoff for positions with offsetting values or for collateral held or posted. At December 31, ~~2024~~2025 and ~~2023~~2024, the fair value of derivative instruments that are classified as assets or liabilities available for offset was $~~693~~520 million and $~~1.2~~693 ~~billion~~million. At December 31, ~~2024~~2025 and ~~2023~~2024, we held $~~190~~44 million and $~~457~~190 million of collateral from counterparties that was available for netting against our asset positions. At ~~both~~ December 31, ~~2024~~2025 and ~~2023~~2024, we had $615 million and $1.2 billion of collateral posted to counterparties that was available for netting against our liability positions.

~~The following amounts were recorded in the consolidated balance sheet related to items designated and qualifying as hedged items in fair value hedging relationships:~~48

	Carrying Amount of Hedged Items				Cumulative Amount of Fair ValueHedging Adjustments(a)
	December 31, 2024		December 31, 2023		December 31, 2024		December 31, 2023
Unsecured debt	$	36,664	$	33,551	$	1,281	$	1,029

_________________

(a)Includes $719 million and $872 million of unamortized losses remaining on hedged items for which hedge accounting has been discontinued at December 31, 2024 and 2023.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The following amounts were recorded in the consolidated balance sheet related to items designated and qualifying as hedged items in fair value hedging relationships:


	Carrying Amount of Hedged Items				Cumulative Amount of Fair Value Hedging Adjustments(a)
	December 31, 2025		December 31, 2024		December 31, 2025		December 31, 2024
Unsecured debt	$	35,187	$	36,664	$	693	$	1,281

_________________

(a)Includes $428 million and $719 million of unamortized losses remaining on hedged items for which hedge accounting has been discontinued at December 31, 2025 and 2024.

The table below presents the effect of our derivative financial instruments in the consolidated statements of income:

	Years Ended December 31,
	2024				2023				2022
	2025				2024				2023
	Interest Expense(a)		Operating Expenses(b)		Interest Expense(a)		Operating Expenses(b)		Interest Expense(a)		Operating Expenses(b)
Fair value hedges
Hedged items - interest rate swaps	$	~~252~~(587)	$	—	$	~~248~~252	$	—	$	~~1,003~~248	$	—
Interest rate swaps	~~(452)~~377		—		(~~279~~452)		—		(~~957~~279)		—
Hedged items - foreign currency swaps(c)	—		—		—		—		—		23
Foreign currency swaps	—		—		—		—		(2)		(24)
Cash flow hedges
Interest rate swaps	1511		—		3715		—		1537		—
Hedged items - foreign currency swaps(c)	—		~~414~~(963)		—		~~(263)~~414		—		~~611~~(263)
Foreign currency swaps	(~~145~~105)		~~(413)~~961		(145)		~~263~~(413)		(~~156~~145)		~~(611)~~263
Derivatives not designated as hedges
Interest rate contracts	51(55)		—		~~218~~51		—		~~130~~218		—
Foreign currency contracts	—		—		—		~~(1)~~—		—		(41)
Total income (loss) recognized	$	(~~280~~360)	$	(2)	$	79(280)	$	~~(1)~~2	$	3379	$	(41)

_________________

(a)Total interest expense was $6.05 billion, $46.70 billion and $24.97 billion for ~~2024~~2025, ~~2023~~2024 and ~~2022~~2023.

(b)Total operating expenses were $12.82 billion for ~~both 2024 and 2023~~2025, and $1.78 billion for ~~2022~~both 2024 and 2023.

(c)Transaction activity recorded in operating expenses related to foreign currency-denominated debt.

~~The tables below present the effect of our derivative financial instruments in the consolidated statements of comprehensive income:~~49

	Gains (Losses) Recognized In Accumulated Other Comprehensive Income (Loss)
	Years Ended December 31,
	2024		2023		2022
Fair value hedges
Foreign currency swaps	$	—	$	—	$	(2)
Cash flow hedges
Interest rate swaps	43		(1)		17
Foreign currency swaps	(375)		139		(529)
Total	$	(332)	$	138	$	(514)

	(Gains) Losses Reclassified From Accumulated Other Comprehensive Income (Loss) Into Income (Loss)
	Years Ended December 31,
	2024		2023		2022
Fair value hedges
Foreign currency swaps	$	—	$	—	$	2
Cash flow hedges
Interest rate swaps	(9)		(28)		(11)
Foreign currency swaps	422		(92)		578
Total	$	413	$	(120)	$	569

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

~~All~~The ~~amounts~~tables ~~reclassified~~below ~~from~~present ~~accumulated other comprehensive income (loss) were recorded to operating expenses or interest expense. During~~ the ~~next~~effect 12of ~~months,~~our wederivative ~~estimate~~financial aninstruments ~~insignificant amount~~ in ~~gains~~the ~~will~~consolidated bestatements ~~reclassified~~of ~~into~~comprehensive ~~pre-tax earnings from derivatives designated for hedge accounting.~~income:

Note 10. Commitments and Contingencies


	Gains (Losses) Recognized In Accumulated Other Comprehensive Income (Loss)
	Years Ended December 31,
	2025		2024		2023


Cash flow hedges
Interest rate swaps	$	(24)	$	43	$	(1)
Foreign currency swaps	538		(375)		139
Total	$	514	$	(332)	$	138


	(Gains) Losses Reclassified From Accumulated Other Comprehensive Income (Loss) Into Income (Loss)
	Years Ended December 31,
	2025		2024		2023


Cash flow hedges
Interest rate swaps	$	(10)	$	(9)	$	(28)
Foreign currency swaps	(649)		422		(92)
Total	$	(658)	$	413	$	(120)

All amounts reclassified from accumulated other comprehensive income (loss) were recorded to operating expenses or interest expense. During the next 12 months, we estimate an insignificant amount of losses will be reclassified into pre-tax earnings from derivatives designated for hedge accounting.

Note 11. Commitments and Contingencies

Operating Leases Our lease obligations consist primarily of real estate office space. Certain leases contain escalation clauses and renewal options, and generally our leases have no residual value guarantees or material covenants. We exclude from our balance sheet leases with a term equal to one year or less, and do not separate non-lease components from our real estate leases.

~~Rent~~ ~~expense under operating leases was $39 million, $37 million and $39 million in 2024, 2023 and 2022. Variable lease costs were insignificant for 2024, 2023 and 2022.~~ At December 31, ~~2024~~2025 and ~~2023~~2024, operating lease right-of-use assets, included in other assets, were $90113 million and $~~100~~90 million, and operating lease liabilities, included in other liabilities, were $~~105~~130 million and $~~116~~105 million. Operating lease right-of-use assets obtained in exchange for lease obligations were $1739 million, ~~an insignificant amount,~~ and $17 million in ~~2024,~~2025 ~~2023~~ and ~~2022. At December 31,~~ 2024, ~~our~~and ~~undiscounted~~insignificant ~~future~~in ~~lease~~2023. ~~obligations~~Rent ~~related~~expense tounder operating leases ~~having~~was ~~initial terms in excess of one year were~~ $2638 million, $2739 million, ~~$22 million, $20 million, $17 million,~~ and $537 million ~~for~~in 2025, ~~2026, 2027, 2028, 2029 and thereafter, with imputed interest of $12 million at December 31,~~ 2024. ~~The weighted average discount rate was 4.7%~~ and 42023.~~3%,~~ ~~and~~Variable ~~the weighted average remaining~~ lease ~~term~~costs ~~was~~were ~~4.7~~insignificant ~~years~~for ~~and 5.3 years at December 31~~2025, 2024 and 2023. Payments for operating leases included in net cash provided by operating activities were $46 million, $49 million and $45 million in 2024, 2023 and 2022. Lease agreements that have not yet commenced were $44 million at December 31, 2024.

The following table summarizes our undiscounted future lease obligations related to operating leases having initial terms in excess of one year at December 31, 2025:


	2026		2027		2028		2029		2030		Thereafter		Total
Operating lease	$	29	$	27	$	25	$	22	$	16	$	41	$	159
Less: imputed income													29
Total operating lease liabilities													$	130

The weighted average discount rate was 5.4% and 4.7%, and the weighted average remaining lease term was 7.1 years and 4.7 years at December 31, 2025 and 2024. Payments for operating leases included in net cash provided by operating activities were $50 million, $46 million and $49 million in 2025, 2024 and 2023. We have no lease agreements that have not yet commenced at December 31, 2025.

Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk are primarily cash equivalents, restricted cash, derivative financial instruments and retail finance receivables. Our cash equivalents and restricted cash represent investments in highly rated securities placed through various major financial institutions. The counterparties to our derivative financial instruments are various major financial institutions.

Borrowers located in Texas accounted for 15.0% of the retail finance receivables portfolio at December 31, 2024. No other state or country accounted for more than 10% of the retail finance receivables portfolio.50

AtTable ~~December 31, 2024, substantially all~~ of ~~our commercial finance receivables represent loans to GM-franchised dealers and their affiliates.~~Contents

GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Borrowers located in Texas accounted for 14.8% of the retail finance receivables portfolio at December 31, 2025. No other state or country accounted for more than 10% of the retail finance receivables portfolio.

At December 31, 2025, substantially all of our commercial finance receivables represent loans to GM-franchised dealers and their affiliates.

Legal Proceedings We are subject to various pending and potential legal and regulatory proceedings in the ordinary course of business, including litigation, arbitration, claims, investigations, examinations, subpoenas and enforcement proceedings. Some litigation against us could take the form of class actions. The outcome of these proceedings is inherently uncertain, and thus we cannot confidently predict how or when proceedings will be resolved. An adverse outcome in one or more of these proceedings could result in substantial damages, settlements, fines, penalties, diminished income or reputational harm.

InWe ~~accordance with the current accounting standards for loss contingencies, we~~ establish reserves for legal matters when it is probable that a loss associated with the matter has been incurred and the amount of the loss can be reasonably estimated. The actual costs of resolving legal matters may be higher or lower than any amounts reserved for these matters. At December 31, ~~2024~~2025, we estimated our reasonably possible legal exposure for unfavorable outcomes to be ~~approximately $29 million, and we have accrued an~~ insignificant ~~amount~~.

~~Other~~Indirect ~~Administrative~~ Tax-Related Matters We accrue non-income tax liabilities for contingencies when ~~management~~we ~~believes~~believe that a loss is probable and the amounts can be reasonably estimated, while contingent gains are recognized only when realized. In the event any losses are sustained in excess of accruals, they will be charged against income at that time.

In evaluating indirect tax matters, we take into consideration factors such as our historical experience with matters of similar nature, specific facts and circumstances, and the likelihood of prevailing. We reevaluate and update our accruals as matters progress over time,. ~~where~~We ~~there~~estimate isour areasonably ~~reasonable~~possible ~~possibility~~loss ~~that~~in ~~losses~~excess ~~exceeding~~of amounts ~~already~~accrued ~~recognized~~to ~~may~~ be ~~incurred. Our estimate of additional losses is~~ up to $~~159~~161 million at December 31, ~~2024~~2025.

48Representations and Warranties We provide various representations and warranties regarding certain assets transferred in certain financial transactions. The extent and nature of the representations and warranties vary among different transactions. If such representations and warranties are breached, we may be required to repurchase certain assets or make other payments relating thereto. A breach of our representations and warranties is considered unlikely, and therefore our maximum exposure to loss is insignificant.

Contract Commitments In September 2025, we entered into $2.1 billion of purchase commitments with various dealers to acquire certain EVs through June 30, 2026. We made a down payment to the dealers, and we will purchase the EVs as they are placed in service and assigned to us as part of our normal leasing operations, or upon expiration of the purchase commitments. As of December 31, 2025, we have up to approximately $293 million of purchase commitments remaining for any EVs that have not been placed in service by June 30, 2026.

Note 12. Shareholders' Equity


	December 31, 2025	December 31, 2024
Common Stock
Number of shares authorized	10,000,000	10,000,000
Number of shares issued and outstanding	5,050,000	5,050,000

Our Board of Directors declared and paid dividends of $1.5 billion in 2025, and $1.8 billion in both 2024 and 2023 on our common stock to GM.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Note 11. Shareholders' Equity


	December 31, 2025	December 31, 2024
Preferred Stock
Number of shares authorized	250,000,000	250,000,000
Number of shares issued and outstanding(a)
Fixed-to-Floating Rate Cumulative Perpetual Preferred Stock, Series A (Series A Preferred Stock)	1,000,000	1,000,000
Fixed-to-Floating Rate Cumulative Perpetual Preferred Stock, Series B (Series B Preferred Stock)	500,000	500,000
Fixed-Rate Reset Cumulative Perpetual Preferred Stock, Series C (Series C Preferred Stock)	500,000	500,000

	December 31, 2024	December 31, 2023
Common Stock
Number of shares authorized	10,000,000	10,000,000
Number of shares issued and outstanding	5,050,000	5,050,000

Our Board of Directors declared and paid dividends of $1.8 billion in both 2024 and 2023, and $1.7 billion in 2022 on our common stock to General Motors Holdings LLC.

	December 31, 2024	December 31, 2023
Preferred Stock
Number of shares authorized	250,000,000	250,000,000
Number of shares issued and outstanding(a)
Series A	1,000,000	1,000,000
Series B	500,000	500,000
Series C	500,000	500,000

_________________

(a)Issued at a liquidation preference of $1,000 per share.

During ~~2024~~2025, ~~2023~~we paid dividends of $58 million to holders of record of our Series A Preferred Stock, $33 million to holders of record of our Series B Preferred Stock, and ~~2022~~$29 million to holders of record of our Series C Preferred Stock. During both 2024 and 2023, we paid dividends of $58 million to holders of record of our Series A Preferred Stock, $32 million to holders of record of our Series B Preferred Stock, and $29 million to holders of record of our Series C Preferred Stock.

In December ~~2024~~2025, our Board of Directors declared a dividend of $28.75 per share, $29 million in the aggregate, on our Series A Preferred Stock, a dividend of $32.50 per share, $16 million in the aggregate, on our Series B Preferred Stock, and a dividend of $28.50 per share, $14 million in the aggregate, on our Series C Preferred Stock, payable on March 30, ~~2025~~2026 to holders of record at March 15, ~~2025~~2026. Accordingly, $59 million has been set aside for the payment of these dividends.

The following table summarizes the significant components of accumulated other comprehensive income (loss):

	Years Ended December 31,
	2024		2023		2022
	2025		2024		2023
Unrealized gain (loss) on hedges
Beginning balance	$	~~(3)~~77	$	(213)	$	(7721)
Change in value of hedges, net of tax	81(144)		1881		5518
Ending balance	$	77(67)	$	~~(3)~~77	$	(213)
Foreign currency translation adjustment
Beginning balance	$	(1,~~206~~609)	$	(1,~~352~~206)	$	(1,~~197~~352)
Translation gain (loss)	~~(403)~~274		~~147~~(403)		~~(156)~~147
Ending balance	$	(1,~~609~~335)	$	(1,~~206~~609)	$	(1,~~352~~206)

Note 1213. Parent Company Stock-Based Compensation

GM grants to certain employees and key executive officers Restricted Stock Units (RSUs), Performance-based Share Units (PSUs) and stock options (collectively, stock incentive awards). The awards under the plans are subject to forfeiture if the participant leaves the company for reasons other than those permitted under the plans, such as retirement, death or disability.

RSU awards granted ~~either cliff vest or~~ ratably vest generally over a three-year service period, as defined in the terms of each award. PSU awards vest at the end of a three-year performance period based on performance criteria determined by the Executive Compensation Committee of the GM Board of Directors at the time of award. The number of shares earned, or units paid in cash, may equal, exceed or be less than the targeted number depending on whether the performance criteria are met, surpassed or not met. GM's service-based stock options vest ratably over three years. Stock options expire 10 years from the grant date.

4952

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Equity-classified awards The following table summarizes information about RSUs, PSUs and stock options granted to our employees and key executive officers under GM's stock-based compensation programs (shares in thousands):

	Year Ended December 31, 2024
	Year Ended December 31, 2025
	Shares	Weighted-Average Grant Date Fair Value		Weighted-Average Remaining Contractual Term in Years
Outstanding at January 1, 2024	3,017	$	38.96	1.3
Outstanding at January 1, 2025	2,904	$	36.20	2.3
Granted	~~722~~624	$	3949.2743
Settled	(~~643~~1,006)	$	4637.6274
Forfeited or expired	(~~192~~223)	$	5648.2034
Outstanding at December 31, 2024(a)	2,904	$	36.20	2.3
Outstanding at December 31, 2025(a)	2,300	$	37.95	1.9

________________

(a) Includes the target amount of PSUs.

There were no stock options issued during ~~the~~2025 ~~year~~and ~~ended December 31,~~ 2024. The weighted-average assumptions used to estimate the fair value of the stock options are a dividend yield of 1.90% ~~and 1.60%~~, expected volatility of 34.0% ~~and 41.0%~~, a risk-free interest rate of 3.70% ~~and 1.88%~~, and an expected option life of 6.0 years for options issued during 2023 ~~and 2022~~. The expected volatility is based on the average of the implied volatility of publicly traded options for GM's common stock. Total compensation expense related to the above awards was $32 million in both 2025 and 2024 and $42 million in 2023.

~~Total~~At December 31, 2025, total unrecognized compensation expense ~~related~~for nonvested equity awards granted was $20 million. This expense is expected to ~~the~~be ~~above~~recorded ~~awards~~over a weighted-average period of 1.5 years. The total fair value of RSUs and PSUs vested was $3237 million, $4231 million and $5045 million inat ~~2024~~December 31, ~~2023~~2025, 2024 and ~~2022~~2023.

AtLiability-classified ~~December~~awards ~~31,~~Beginning in 2024, ~~total~~we ~~unrecognized~~granted ~~compensation~~certain ~~expense~~employees ~~for~~stock ~~nonvested~~incentive ~~equity~~ awards ~~granted~~that ~~was~~are ~~$25~~payable ~~million.~~in ~~This expense is expected to be recorded over a weighted-average period of 1~~cash.5 ~~years.~~ The total ~~fair~~compensation ~~value~~expense ~~of RSUs and PSUs vested~~ was $3146 million, ~~$45~~in ~~million~~2025 and ~~$31~~insignificant ~~million~~in ~~at December 31,~~ 2024~~, 2023 and 2022~~.

~~Liability-classified~~Note ~~awards We grant certain employees stock incentive awards that are payable in cash~~14. ~~The~~Employee ~~total~~Benefit ~~compensation expense and cash paid to settle these awards was insignificant in the year ended December 31, 2024.~~Plans

~~Note~~We 13have defined contribution retirement plans covering the majority of our employees. ~~Employee~~We ~~Benefit~~recognized ~~Plans~~compensation expense related to these plans of $38 million, $36 million and $35 million in 2025, 2024 and 2023. Contributions to the plans were made in cash.

WeNote ~~have defined contribution retirement plans covering the majority of our employees~~15. WeIncome ~~recognized~~Taxes ~~compensation expense related to these plans of $36 million, $35 million and $29 million in 2024, 2023 and 2022. Contributions to the plans were made in cash.~~

50The following table summarizes income before income taxes:


	Years Ended December 31,
	2025		2024		2023
U.S. income (loss)	$	2,272	$	2,407	$	2,417
Non-U.S. income (loss)	530		238		568
Income (loss) before income taxes	$	2,802	$	2,645	$	2,985

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Note 14. Income Taxes


	Years Ended December 31,
Income Tax Expense	2025		2024		2023
Current income tax expense (benefit)
U.S. federal	$	112	$	(525)	$	341
U.S. state and local	103		102		144
Non-U.S.	118		146		91
Total current income tax expense (benefit)	333		(277)		576
Deferred income tax expense (benefit)
U.S. federal	362		994		112
U.S. state and local	28		45		24
Non-U.S.	21		22		28
Total deferred income tax expense (benefit)	411		1,061		165
Total income tax provision (benefit)	$	744	$	784	$	741

~~The~~We ~~following~~have ~~table~~foreign ~~summarizes~~subsidiaries ~~income~~with ~~before~~cumulative undistributed earnings that are indefinitely reinvested. Accordingly, no provision for U.S. income ~~taxes~~tax has been provided, and ~~equity~~the ~~income:~~unrecognized deferred tax liability is insignificant. An estimate of the undistributed earnings is $1.1 billion and $713 million at December 31, 2025 and 2024.

	Years Ended December 31,
	2024		2023		2022
U.S. income (loss)	$	2,407	$	2,417	$	3,499
Non-U.S. income (loss)	494		430		404
Income (loss) before income taxes and equity income (loss)	$	2,901	$	2,847	$	3,903

	Years Ended December 31,
Income Tax Expense	2024		2023		2022
Current income tax expense (benefit)
U.S. federal	$	(525)	$	341	$	342
U.S. state and local	102		144		85
Non-U.S.	146		91		80
Total current income tax expense (benefit)	(277)		576		507
Deferred income tax expense (benefit)
U.S. federal	994		112		322
U.S. state and local	45		24		85
Non-U.S.	22		28		77
Total deferred income tax expense (benefit)	1,061		165		484
Total income tax provision (benefit)	$	784	$	741	$	992

We have foreign subsidiaries with cumulative undistributed earnings that are indefinitely reinvested. Accordingly, no provision for U.S. income tax has been provided, and the unrecognized deferred tax liability is insignificant. An estimate of the undistributed earnings is $713 million and $454 million at December 31, 2024 and 2023.

A reconciliation between the U.S. federal statutory tax rate and the effective tax rate is as follows:

	Years Ended December 31,
	Year Ended December 31, 2025
	2024			2023		2022
	Amount			Percent of Pre-tax Income
U.S. federal statutory tax rate	21.0		%	21.0	%	21.0	%
Income tax expense at U.S. federal statutory tax rate	$	589		21.0	%
Non-U.S. income taxed at other than the U.S. federal statutory rate	1.8			1.1		0.9
State and local income taxes(a)	103			3.7
State and local income taxes	3.5			3.6		3.2
Foreign tax effects	57			2.0
U.S. tax on non-U.S. earnings	0.9			3.8		0.3
Effect of changes in tax laws or rates enacted in the current period	—			—
Valuation allowance	—			(2.9)		0.3
Effects of cross-border tax laws	—			—
Other	(0.1)			(0.6)		(0.3)
Tax credits and incentives	(5)			(0.2)
Effective tax rate	27.0		%	26.0	%	25.4	%
Valuation allowance	4			0.1
Nontaxable or nondeductible items	5			0.2
Changes in unrecognized tax benefits	—			—
Equity income	(8)			(0.3)
Other adjustments	—			—
Total income tax expense and rate	$	744		26.5	%

51________________

(a) State taxes in New York, Michigan, Pennsylvania, California and New Jersey made up the majority (greater than 50 percent) of the tax effect in this category.


	Years Ended December 31,
	2024		2023
U.S. federal statutory tax rate	21.0	%	21.0	%
Non-U.S. income taxed at other than the U.S. federal statutory rate	2.0		1.1
State and local income taxes	3.8		3.5
U.S. tax on non-U.S. earnings	1.0		3.6
Valuation allowance	—		(2.8)
Equity income	2.0		(1.0)
Other	(0.1)		(0.6)
Effective tax rate	29.7	%	24.8	%

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Deferred Income Tax Assets and Liabilities Deferred income tax assets and liabilities at December 31, ~~2024~~2025 and ~~2023~~2024 reflect the effect of temporary differences between amounts of assets, liabilities and equity for financial reporting purposes and the basis of such assets, liabilities and equity as measured by tax laws, as well as tax loss and tax credit carryforwards. The following table summarizes the components of temporary differences and carryforwards that give rise to deferred tax assets and liabilities:

	December 31, 2024		December 31, 2023
	December 31, 2025		December 31, 2024
Deferred tax assets
Net operating loss carryforward - U.S.(a)	$	~~331~~1	$	2331
Net operating loss carryforward - non-U.S.(b)	8478		~~115~~84
Market value difference of loan portfolio	~~426~~619		~~322~~426
Accruals	~~135~~143		~~186~~135
Tax credits(c)	~~649~~815		~~352~~649
Other	~~210~~254		~~164~~210
Total deferred tax assets before valuation allowance	1,~~835~~910		1,~~141~~835
Less: valuation allowance	(~~235~~166)		(~~236~~235)
Total deferred tax assets	1,~~600~~744		~~905~~1,600
Deferred tax liabilities
Depreciable assets	3,~~637~~426		23,~~354~~637
Deferred acquisition costs	~~232~~295		~~159~~232
Other	153		~~125~~153
Total deferred tax liabilities	43,~~022~~874		24,~~638~~022
Net deferred tax liability	$	(2,422)	$	(1,733)
Net deferred tax asset (liability)	$	(2,130)	$	(2,422)

_________________

(a)At December 31, ~~2024~~2025, U.S. operating loss deferred tax assets were ~~$331 million, of which $315 million can be carried forward indefinitely and $16 million, will expire by 2038, if not utilized~~insignificant.

(b)At December 31, ~~2024~~2025, non-U.S. operating loss deferred tax assets were $8478 million, of which $1719 million can be carried forward indefinitely and $6759 million will expire by ~~2044~~2045, if not utilized.

(c)At December 31, ~~2024~~2025, U.S. tax credit carryforwards were $~~649~~815 million, of which $543 million are investment tax credits and $272 million are other tax credits, all expiring ~~through~~by ~~2044~~2045, if not utilized.

As of December 31, ~~2024~~2025, we have $~~235~~166 million in valuation allowances against deferred tax assets in U.S. jurisdictions.

Uncertain Tax Positions The following table summarizes activity of the total amounts of unrecognized tax benefits:

	Years Ended December 31,
	2024		2023		2022
	2025		2024		2023
Beginning balance	$	8678	$	6386	$	7063
Additions to prior years' tax positions	—1		22—		—22
Reductions to prior years' tax positions	~~(8)~~—		—(8)		~~(6)~~—
Additions to current year tax positions	67		96		—9
Changes in tax positions due to lapse of statutory limitations	(47)		(84)		(28)
Foreign currency translation	~~(2)~~1		—(2)		1—
Ending balance	$	7880	$	8678	$	6386

At December 31, ~~2024~~2025, ~~2023~~2024 and ~~2022~~2023, there were $6263 million, $6762 million and $5167 million of net unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate.

We recognize accrued interest and penalties associated with uncertain tax positions as a component of the income tax provision. Accrued interest and penalties are included within other liabilities on the consolidated balance sheets. At December 31, ~~2024~~2025 and ~~2023~~2024, we had liabilities of $6064 million and $6260 million for income tax-related interest and penalties.

52At December 31, 2025, it is not possible to reasonably estimate the expected change to the total amount of unrecognized tax benefits in the next twelve months.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

AtIncome ~~December~~Taxes ~~31, 2024, it is not possible to reasonably estimate the expected change to the total amount of unrecognized tax benefits in the next twelve months.~~Paid

Other Matters We are included in GM's consolidated U.S. federal income tax returns and certain U.S. state returns, and we are obligated to pay GM for our share of these tax liabilities. During 2024, we moved from a taxes payable position of $384 million to a taxes receivable position of $70 million, primarily due to a change in our tax depreciation method. The receivable will offset future related party taxes for federal and state tax liabilities.


	Year Ended December 31, 2025
U.S. federal	$	5
U.S. state	98
Non U.S.	170
Total income taxes	$	273

Income ~~tax~~taxes ~~returns~~paid, ~~are~~net, ~~filed~~for ~~in multiple jurisdictions and are subject to examination by taxing authorities throughout~~ the ~~world.~~periods Weended ~~have~~December ~~open~~31, ~~tax~~2024 ~~years~~and ~~from~~2023 ~~2010~~were to$170 ~~2024~~million ~~with~~and ~~various~~$182 ~~tax jurisdictions~~million. ~~These~~Income ~~open~~taxes ~~years~~paid ~~contain~~exceeds ~~matters~~5% ~~that could be subject to differing interpretations~~ of ~~applicable~~total ~~tax~~income ~~laws~~taxes ~~and regulations as they relate to the amount~~paid, ~~character,~~net ~~timing or inclusion~~ of ~~revenue and/or recognition of expenses~~refunds, orin the ~~sustainability~~following ~~of income tax credits. Certain of our state and foreign tax returns are currently under examination in various~~ jurisdictions.

Note 15. Supplemental Information for the Consolidated Statements of Cash Flows


	Year Ended December 31, 2025
U.S. state
California	$	17
Foreign
Mexico	$	93
Brazil	$	36
China	$	18
Canada	$	16

~~Cash~~Other ~~payments~~Matters ~~for~~We ~~interest~~are ~~costs~~included ~~and~~in GM's consolidated U.S. federal income ~~taxes~~tax ~~consist~~returns and certain U.S. state returns, and we are obligated to pay GM for our share of the ~~following:~~related tax liabilities. Amounts due from (owed to) GM for income taxes are recorded as a related party receivable (payable).

	Years Ended December 31,
	2024		2023		2022
Interest costs (none capitalized)	$	5,406	$	4,652	$	2,673
Income taxes	$	170	$	182	$	824

Income tax returns are filed in multiple jurisdictions and are subject to examination by taxing authorities throughout the world. We have open tax years from 2010 to 2025 with various tax jurisdictions. These open years contain matters that could be subject to differing interpretations of applicable tax laws and regulations as they relate to the amount, character, timing or inclusion of revenue and/or recognition of expenses, or the sustainability of income tax credits. Certain of our state and foreign tax returns are currently under examination in various jurisdictions.

	Years Ended December 31,
	2024		2023		2022
Subvention receivable from GM(a)	$	360	$	508	$	469
Commercial loan funding payable to GM(a)	$	100	$	55	$	105

Note 16. Supplemental Information for the Consolidated Statements of Cash Flows

~~(a)Refer~~Cash topayments ~~Note~~for 2interest ~~for~~costs ~~further~~consist ~~information.~~of the following:

Note 16. Segment Reporting and Geographic Information


	Years Ended December 31,
	2025		2024		2023
Interest costs (none capitalized)	$	6,092	$	5,406	$	4,652

Non-cash investing items consist of the following:

We analyze the results of our business through the following reportable segments: North America and International. Our chief operating decision-maker, the President and Chief Executive Officer, evaluates the operating results through reportable segment income before income taxes. This financial metric is used to review operating trends, perform analytical comparisons between periods and among geographic regions, and to monitor budget-to-actual variances on a monthly basis in order to assess performance and allocate resources.


	Years Ended December 31,
	2025		2024		2023
Subvention receivable from GM(a)	$	452	$	360	$	508
Commercial loan funding payable to GM(a)	$	94	$	100	$	55

_________________

(a)Refer to N ote 3 for further information.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Note 17. Segment Reporting and Geographic Information

We analyze the results of our business through the following reportable segments: North America and International. Our chief operating decision-maker, the President and Chief Executive Officer, evaluates the results of operations through reportable segment income before income taxes. This financial metric is used to review operating trends, perform analytical comparisons between periods and among geographic regions, and to monitor budget-to-actual variances on a monthly basis in order to assess performance and allocate resources.

Our North America Segment includes operations in the U.S. and Canada. Our International Segment includes operations in Brazil, Chile, Colombia, Mexico and Peru, as well as our equity investments in joint ventures in China. The management of each segment is responsible for executing our strategies.

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GENERAL MOTORS FINANCIAL COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The following tables ~~summarize~~present ~~key~~certain ~~financial~~income statement information by segment:


	Year Ended December 31, 2025
	North America		International		Total
Revenue from reportable segments	$	15,364	$	1,641	$	17,005
Reconciliation of revenue
Other revenue(a)					54
Total revenue					$	17,059
Costs and expenses(b)
Salaries and benefits	1,080		165
Leased vehicle depreciation	4,859		83
(Gain) loss on termination of leased vehicles	(591)		5
Provision for loan losses	1,029		178
Interest expense	5,762		730
GM Protection claim losses	55		—
Other segment items(c)	569		242
Equity income	—		39
Reportable segment income before income taxes	$	2,601	$	277	$	2,878
Reconciliation to income before income taxes
Other loss(d)					(76)
Income before income taxes					$	2,802


	Year Ended December 31, 2024
	North America		International		Total
Revenue from reportable segments	$	14,341	$	1,515	$	15,856
Reconciliation of revenue
Other revenue(a)					19
Total revenue					$	15,875
Costs and expenses(b)
Salaries and benefits	1,013		154
Leased vehicle depreciation	4,770		74

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