CarMax Group (KMX)

CarMax Tops Expectations as Growth Plan Gains Momentum (KMX)June 17, 2026 8:45 AM
IH Market News CarMax Inc. (NYSE:KMX) delivered first-quarter results ahead of market forecasts, with both earnings and revenue surpassing analyst expectations as the company’s recently introduced four-pillar strategy began to show encouraging signs of progress. Adjusted earnings per share came in at $1.31, exceeding the consensus estimate of $0.96 by $0.35. Revenue increased 6.2% year over year to $8.0 billion, comfortably above analyst expectations of $7.39 billion and up from $7.5 billion in the same period last year. Shares of the used-vehicle retailer rose 3.6% following the earnings announcement. Sales Volumes Improve Across Retail and Wholesale Operations Combined retail and wholesale vehicle sales climbed 3.3% to 392,357 units during the quarter. Retail used-vehicle sales edged higher to 230,293 units, although comparable-store used-unit sales slipped 0.8% from a year earlier. Gross profit per retail used vehicle declined by $230 to $2,177, easing from last year’s record level as the company adjusted pricing to support stronger sales activity. The wholesale business also posted solid growth, with unit sales rising 8.4% to 162,064 vehicles. Gross profit per wholesale unit remained stable at $1,046, broadly unchanged from the prior year. Management Highlights Early Success of Strategic Initiatives “We are entering this fiscal year with a clear strategy that is driving early results,” said Keith Barr, President and Chief Executive Officer. “We have identified four strategic pillars that will meaningfully improve how we operate at scale and support strong performance.” CarMax’s strategy centers on competitive pricing, improving the customer journey, maximizing value across transactions and lowering operating costs. Management indicated that these initiatives are beginning to contribute to improved operational performance and stronger execution across the business. Cost Reduction Efforts Continue to Deliver Results The company reported further progress on its efficiency programme during the quarter. Selling, general and administrative expenses declined 3.7% to $635.2 million, while SG&A expense per total unit improved by $118 to $1,619, representing a 6.8% year-over-year improvement. CarMax reiterated that it remains on track to achieve its target of $200 million in annualized SG&A savings by the end of fiscal 2027. Financing Business Expands Market Penetration CarMax Auto Finance continued to gain traction, with penetration increasing 150 basis points from a year ago to 43.3%. The company said the improvement reflects successful execution of its full-spectrum financing strategy. Income from CarMax Auto Finance totaled $140.2 million, down 1.0% year over year. The decline was largely attributable to lower auto loan balances following a $900 million non-prime securitization completed during the third quarter. Vehicle Purchasing Activity Moderates During the quarter, CarMax acquired approximately 322,000 vehicles from consumers and dealers, representing a 4.4% decline compared with the same period last year. Despite the lower purchasing volume, management maintained its focus on inventory management and profitability across its retail and wholesale channels. Analysts See Positive Signs Under New Leadership Following the results, analysts at Vital Knowledge described the quarter as “a strong showing for KMX’s new CEO,” adding that there is evidence the company’s “turnaround initiatives are bearing fruit.” The report reinforces growing optimism that CarMax’s operational improvements and strategic initiatives may support stronger performance in the quarters ahead. CarMax stock priceThe post CarMax Tops Expectations as Growth Plan Gains Momentum (KMX) appeared first on US Editors. Original: CarMax Tops Expectations as Growth Plan Gains Momentum (KMX)

CarMax Reports First Quarter Fiscal 2027 ResultsJune 17, 2026 5:50 AM
Business Wire Introduces Strategy for Growth CarMax, Inc. (NYSE:KMX) today reported results for the first quarter ended May 31, 2026. First Quarter Highlights:(1) CEO Keith Barr announces CarMax's four-pillar strategic framework with the objective of delivering strong unit and earnings growth that enables CarMax to consistently reward shareholders. Net revenues rose 6.2% to $8.0 billion. Combined retail and wholesale unit sales of 392,357, an increase of 3.3%. Retail used unit sales increased slightly and comparable store used unit sales declined 0.8%; gross profit per retail used unit of $2,177 declined from last year’s all-time record by $230, reflecting the continuation of pricing actions implemented to drive an improved sales trend. Wholesale units increased 8.4%; gross profit per wholesale unit of $1,046, in line with the prior year. Extended Protection Plans (EPP) margin per retail unit of $580, an increase of $8 per unit. Bought 322,000 vehicles from consumers and dealers, a decrease of 4.4%. SG&A expenses decreased 3.7% or $24.5 million to $635.2 million. Ongoing cost reduction efforts, combined with total unit growth, drove strong SG&A leverage of 6.8% to $1,619 per total unit, an improvement of $118 per total unit. CarMax Auto Finance (CAF) penetration expanded 150 basis points year over year to 43.3%, reflecting continued execution of our full spectrum growth strategy. Delivered $140.2 million in CAF income, a slight decrease of 1.0%. Net earnings per diluted share of $1.31 versus $1.38 a year ago. (1) Comparisons to the prior year’s first quarter unless otherwise stated. CEO Commentary: “I came to CarMax because I saw a strong foundation, an award-winning, people-first culture, and significant potential to unlock growth. Three months in, I am more convinced than ever that this is a business with everything it needs to thrive," said Keith Barr, President and Chief Executive Officer. “We are entering this fiscal year with a clear strategy that is driving early results,” he continued. “We have identified four strategic pillars that will meaningfully improve how we operate at scale and support strong performance. Our goal is clear: deliver strong unit sales and earnings growth that enables us to consistently reward our shareholders.” Strategy for Growth: CarMax’s strategy is built around four pillars designed to place the customer at the center of everything we do with the objective of driving sustainable growth and strong operating performance over time: 1. Great Offering - give customers every reason to choose CarMax Price competitively across demand cycles while growing saleable inventory and providing customers faster access to our vehicles 2. Easy Experience - make it easy to do business with us through a seamless experience Better connect digital capabilities with in-store experiences to improve conversion and customer satisfaction 3. Add Value on Each Transaction - grow profitability by maximizing value across all aspects of our business Grow long-term profitability across the CAF and Extended Protection Plan (EPP) businesses 4. Run Lean - reimagine our cost structure to enable a great offering Lower reconditioning costs through technology and operational efficiency while continuing to deliver the high-quality vehicles customers expect from CarMax, enhance our logistics network, and continue to reduce SG&A CarMax plans to host a Strategic Update in late Fall to share additional detail on key initiatives and milestones underlying our Strategy for Growth. First Quarter Business Performance Review: Sales. Total net revenues rose 6.2% to $8.0 billion compared to the prior year’s first quarter. Combined retail and wholesale used vehicle unit sales were 392,357, an increase of 3.3% from the prior year’s first quarter. Total retail used vehicle unit sales increased slightly to 230,293 compared to 230,210 in the prior year’s first quarter, which benefited from tariff-driven demand. Comparable store used unit sales decreased 0.8% from the prior year’s first quarter. Total retail used vehicle revenues increased 4.7% compared with the prior year’s first quarter, driven by an increase in average retail selling price of approximately $1,200 per unit or 4.5%. Total wholesale vehicle unit sales increased 8.4% to 162,064 versus the prior year’s first quarter. Total wholesale revenues increased 14.0% compared with the prior year’s first quarter due to an increase in wholesale units sold and an increase in the average wholesale selling price of approximately $400 per unit or 5.1%. We bought 322,000 vehicles from consumers and dealers, down 4.4% compared to last year’s first quarter. Of these vehicles, 281,000 were bought from consumers and 41,000 were bought through dealers, a decrease of 2.5% and 15.4%, respectively, from last year’s first quarter. Our digital capabilities supported 84% of retail unit sales. Omni sales(2) were 70% and online retail sales(3) accounted for 14% of retail unit sales. Gross Profit. Total gross profit was $854.4 million, down 4.4% versus last year’s first quarter. Retail used vehicle gross profit decreased 9.5% and retail gross profit per used unit was $2,177, down $230 from last year’s all-time record, reflecting the continuation of pricing actions to drive an improved sales trend. Wholesale vehicle gross profit increased 8.3% versus the prior year’s first quarter, reflecting higher wholesale unit volume and gross profit per unit of $1,046 per unit, which was in line with the prior year’s first quarter. SG&A. Compared with the first quarter of fiscal 2026, SG&A expenses decreased 3.7% or $24.5 million to $635.2 million, primarily driven by lower compensation and benefits costs as we make tangible progress toward our targeted SG&A reductions. These reductions were partially offset by higher advertising expense to support sales and buys. SG&A per total unit improved by $118, or 6.8%, to $1,619. We are on track to achieve our targeted SG&A reductions of $200 million in exit rate savings by the end of fiscal year 2027. CarMax Auto Finance.(4) CAF income was $140.2 million, down 1.0% from the prior year’s first quarter, driven by a decline in auto loans outstanding following the $900 million non-prime securitization in the third quarter of last year, in which most of the related residual financial interest was sold, which in turn reduced total interest margin. This decrease was largely offset by interest earned on higher margin receivables from our full spectrum growth and servicing income associated with the sale of the residual interest. This quarter’s provision for loan losses, which incorporates CAF’s additional growth into the Tier 2 space, was $95.6 million compared to $101.7 million in the prior year’s first quarter. There was a reduction in this quarter’s provision due to the release of $25.1 million for the allowance previously recorded for loans that are now classified as held for sale. As of May 31, 2026, the allowance for loan losses of $475.0 million was 2.95% of auto loans held for investment, up from 2.78% as of February 28, 2026. CAF’s total interest margin percentage, which represents the spread between interest and fees charged to consumers and our funding costs, was 6.7% of average auto loans outstanding, which includes held for investment and held for sale, up 20 basis points from the prior year’s first quarter. After the effect of 3-day payoffs, CAF financed 43.3% of units sold in the current quarter, up from 41.8% in the prior year’s first quarter. CAF’s weighted average contract rate was 11.3% in the quarter, in line with the first quarter last year. Share Repurchase Activity. During the first quarter of fiscal 2027, we did not repurchase any shares of common stock pursuant to our share repurchase program. As of May 31, 2026, we had $1.31 billion remaining available for repurchase under the outstanding authorization. We remain committed to returning capital to shareholders and intend to resume share repurchases in the future at the appropriate time depending upon market conditions, our leverage, and our capital needs, among other factors. Location Openings. During the first quarter of fiscal 2027, we opened one stand-alone reconditioning/auction center located in Locust Grove, Georgia. (2) An omni retail unit sale is defined as a sale where customers complete at least one, but not all, of the four activities listed in note (3) below online. An omni retail unit sale also includes additional steps that can be completed online, including pre-qualifying for financing, setting appointments and signing up for notifications of cars coming soon. (3) An online retail sale is defined as a sale where the customer completes all four of these major transactional activities online: reserving the vehicle; financing the vehicle, if needed; trading-in or opting out of a trade in; and creating an online sales order. (4) Although CAF benefits from certain indirect overhead expenditures, we have not allocated indirect costs to CAF to avoid making subjective allocation decisions. Supplemental Financial Information Amounts and percentage calculations may not total due to rounding. Sales Components   Three Months Ended May 31 (In millions)   2026       2025     Change Used vehicle sales $ 6,391.3     $ 6,103.4     4.7 % Wholesale vehicle sales   1,427.6       1,252.7     14.0 % Other sales and revenues:           Extended protection plan revenues   133.5       131.7     1.4 % Third-party finance fees, net   (4.5 )     (0.7 )   (542.8 )% Advertising & subscription revenues (1)   36.7       36.5     0.4 % Other   28.9       22.9     26.2 % Total other sales and revenues   194.6       190.4     2.2 % Total net sales and operating revenues $ 8,013.5     $ 7,546.5     6.2 % (1) Excludes intercompany revenues that have been eliminated in consolidation. Unit Sales   Three Months Ended May 31   2026   2025   Change Used vehicles 230,293   230,210   — % Wholesale vehicles 162,064     149,517     8.4 % Total vehicles 392,357     379,727     3.3 % Average Selling Prices   Three Months Ended May 31     2026       2025     Change Used vehicles $ 27,288   $ 26,120   4.5 % Wholesale vehicles $ 8,364     $ 7,959     5.1 % Vehicle Sales Changes   Three Months Ended May 31   2026 2025 Used vehicle units — % 9.0 % Used vehicle revenues 4.7 % 7.5 %       Wholesale vehicle units 8.4 % 1.2 % Wholesale vehicle revenues 14.0 % (0.3 )% Comparable Store Used Vehicle Sales Changes (1)   Three Months Ended May 31   2026 2025 Used vehicle units (0.8 )% 8.1 % Used vehicle revenues 3.8 % 6.6 % (1) Stores are added to the comparable store base beginning in their fourteenth full month of operation. Comparable store calculations include results for a set of stores that were included in our comparable store base in both the current and corresponding prior year periods. Used Vehicle Financing Penetration by Channel (Before the Impact of 3-day Payoffs) (1)   Three Months Ended May 31   2026 2025 CAF (2) 45.7 % 44.4 % Tier 2 (3) 15.7 % 17.7 % Tier 3 (4) 9.0 % 8.0 % Other (5) 29.6 % 29.9 % Total 100.0 % 100.0 % (1) Calculated as used vehicle units financed for respective channel as a percentage of total used units sold. (2) Includes CAF's Tier 2 and Tier 3 loan originations, which represent less than 5% of total used units sold. (3) Third-party finance providers who generally pay us a fee or to whom no fee is paid. (4) Third-party finance providers to whom we pay a fee. (5) Represents customers arranging their own financing and customers that do not require financing. Selected Operating Ratios   Three Months Ended May 31 (In millions)   2026 % (1)     2025 % (1) Net sales and operating revenues $ 8,013.5 100.0   $ 7,546.5 100.0 Gross profit $ 854.4 10.7   $ 893.6 11.8 CarMax Auto Finance income $ 140.2 1.8   $ 141.7 1.9 Selling, general, and administrative expenses $ 635.2 7.9   $ 659.6 8.7 Interest expense $ 33.8 0.4   $ 27.1 0.4 Earnings before income taxes $ 258.6 3.2   $ 283.1 3.8 Net earnings $ 185.6 2.3   $ 210.4 2.8 (1) Calculated as a percentage of net sales and operating revenues. Gross Profit (1)   Three Months Ended May 31 (In millions)   2026       2025     Change Used vehicle gross profit $ 501.4   $ 554.2   (9.5 )% Wholesale vehicle gross profit   169.5       156.6     8.3 % Other gross profit   183.5       182.8     0.4 % Total $ 854.4     $ 893.6     (4.4 )% (1) Amounts are net of intercompany eliminations. Gross Profit per Unit (1)   Three Months Ended May 31     2026     2025   $ per unit(2) %(3)   $ per unit(2) %(3) Used vehicle gross profit per unit $ 2,177 7.8 $ 2,407 9.1 Wholesale vehicle gross profit per unit $ 1,046 11.9 $ 1,047 12.5 Other gross profit per unit $ 797 94.4 $ 794 96.1 (1) Amounts are net of intercompany eliminations. (2) Calculated as category gross profit divided by its respective units sold, except the other category, which is divided by total used units sold. (3) Calculated as a percentage of its respective sales or revenue. SG&A Expenses (1)   Three Months Ended May 31 (In millions except per unit data)   2026       2025     Change Compensation and benefits:           Compensation and benefits, excluding share-based compensation expense $ 329.6   $ 349.0   (5.6 )% Share-based compensation expense   39.7       45.6     (12.9 )% Total compensation and benefits (2) $ 369.3     $ 394.6     (6.4 )% Occupancy costs   66.8       68.9     (3.0 )% Advertising expense   75.9       67.9     11.8 % Other overhead costs (3)   123.2       128.2     (4.0 )% Total SG&A expenses $ 635.2     $ 659.6     (3.7 )% SG&A per total unit $ 1,619     $ 1,737     (6.8 )% (1) Amounts are net of intercompany eliminations. (2) Excludes compensation and benefits related to reconditioning and vehicle repair service, which are included in cost of sales. (3) Includes IT expenses, non-CAF bad debt, insurance, preopening and relocation costs, travel, charitable contributions and other administrative expenses. Components of CAF Income and Other CAF Information   Three Months Ended May 31 (In millions)   2026     2025   Interest margin:     Interest and fee income $ 460.9   $ 485.4   Interest expense   (184.2 )   (197.5 ) Total interest margin   276.7     287.9   Provision for loan losses   (95.6 )   (101.7 ) Total interest margin after provision for loan losses   181.1     186.2   Servicing income   4.2     —   Total direct expenses   (45.1 )   (44.5 ) CarMax Auto Finance income $ 140.2   $ 141.7         Average auto loans outstanding (1) $ 16,533.7   $ 17,719.9   Total interest margin as a percent of average auto loans outstanding   6.7 %   6.5 %       Net auto loans originated (1) $ 2,445.1   $ 2,318.5   Net penetration rate (1)   43.3 %   41.8 % Weighted average contract rate (1)   11.3 %   11.4 %       Ending allowance for loan losses $ 475.0   $ 474.2   (1) Includes auto loans held for investment and auto loans held for sale. Earnings Highlights   Three Months Ended May 31 (In millions except per share data)   2026       2025     Change Net earnings $ 185.6   $ 210.4   (11.8 )% Diluted weighted average shares outstanding   142.1       152.6     (6.9 )% Net earnings per diluted share $ 1.31     $ 1.38     (5.1 )% Conference Call Information We will host a conference call for investors at 8:00 a.m. ET today, June 17, 2026. Domestic investors may access the call at 1-800-225-9448 (international callers dial 1-203-518-9708). The conference I.D. for both domestic and international callers is 3171396. A live webcast of the call will be available on our investor information home page at investors.carmax.com. An investor presentation is also available on the website. A replay of the webcast will be available on the company’s website at investors.carmax.com through September 28, 2026, or via telephone (for approximately one week) by dialing 1-800-839-1247 (or 1-402-220-0470 for international access) and entering the conference ID 3171396. Second Quarter Fiscal 2027 Earnings Release Date We currently plan to release results for the second quarter ending August 31, 2026, on Tuesday, September 29, 2026, before the opening of trading on the New York Stock Exchange. We plan to host a conference call for investors at 8:00 a.m. ET on that date. Information on this conference call will be available on our investor information home page at investors.carmax.com in early September 2026. About CarMax CarMax, the nation’s largest retailer of used autos, revolutionized the automotive retail industry by driving integrity, honesty and transparency in every interaction. The company offers a truly personalized experience with the option for customers to do as much, or as little, online and in-store as they want. During the fiscal year that ended February 28, 2026, CarMax sold approximately 780,000 used vehicles and 540,000 wholesale vehicles at its auctions. In addition, CarMax Auto Finance originated $8 billion in auto loans during fiscal 2026, adding to its $16 billion portfolio. CarMax has more than 255 store locations, approximately 28,000 associates, and is proud to have been recognized for 22 consecutive years as one of the Fortune 100 Best Companies to Work For®. CarMax is committed to helping its communities thrive and reducing the environmental footprint of its operations. Learn more in the 2026 Responsibility Report. For more information, visit www.carmax.com. Forward-Looking Statements We caution readers that the statements contained in this release that are not statements of historical fact, including statements about our future business plans, operations, challenges, opportunities or prospects, including without limitation any statements or factors regarding our recent leadership transition, four-pillar strategic framework, operating capacity, sales, inventory, market share, financial and operational targets and goals, revenue, margins, expenses, liquidity, loan originations, capital expenditures, share repurchase plans, debt obligations or earnings, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by the use of words such as “anticipate,” “believe,” “commit,” “could,” “enable,” “encourage,” “estimate,” “expect,” “focus on,” “intend,” “may,” “on track,” “outlook,” “plan,” “position,” “predict,” “should,” “target,” “will” and other variations of these words or similar expressions, whether in the negative or affirmative. Such forward-looking statements are based upon management’s current knowledge, expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially from anticipated results. Among the factors that could cause actual results and outcomes to differ materially from those contained in the forward-looking statements are the following: Changes in the competitive landscape and/or our failure to successfully adjust to such changes. Changes in general or regional U.S. economic conditions, including economic downturns, inflationary pressures, fluctuating interest rates, tariffs, the effect of trade policies or related uncertainties, and the potential impact of international events (including the conflict in the Middle East). Changes in the availability or cost of capital and working capital financing, including changes related to the asset-backed securitization market. Events that damage our reputation or harm the perception of the quality of our brand. Significant changes in prices of new and used vehicles. A reduction in the availability of or access to sources of inventory or a failure to expeditiously liquidate inventory. The failure or inability to realize the expected benefits and objectives associated with our four-pillar strategic framework. Our inability to realize the benefits associated with our omni-channel platform or initiatives designed to leverage evolving technologies, including AI. Factors related to geographic and sales growth, including the inability to effectively manage our growth. Our inability to recruit, develop and retain associates and maintain positive associate relations. The loss of key associates from our store, regional or corporate management teams, the failure to effectively execute key executive succession plans, disruptions associated with leadership transitions, or a significant increase in labor costs. Changes in economic conditions or other factors that result in greater credit losses for CAF’s portfolio of auto loans than anticipated. The failure or inability to realize the benefits associated with our strategic investments. Changes in consumer credit availability provided by our third-party finance providers. Changes in the availability of extended protection plan products from third-party providers. The performance of the third-party vendors we rely on for key components of our business. Adverse conditions affecting one or more automotive manufacturers. The inaccuracy of estimates and assumptions used in the preparation of our financial statements, or the effect of new accounting requirements or changes to U.S. generally accepted accounting principles. The failure or inability to adequately protect our intellectual property. The occurrence of severe weather events. The failure or inability to meet our environmental goals or satisfy related disclosure requirements. Factors related to the geographic concentration of our stores. Security breaches or other events that result in the misappropriation, loss or other unauthorized disclosure of confidential customer, associate or corporate information. The failure of or inability to sufficiently enhance key information systems. Factors related to the regulatory and legislative environment in which we operate. The effect of evolving regulations, disclosure requirements, standards and expectations relating to environmental, social and governance matters. The effect of various litigation matters. The volatility in the market price for our common stock. The impact of potential shareholder activism. For more details on factors that could affect expectations, see our Annual Report on Form 10-K for the fiscal year ended February 28, 2026, and our quarterly or current reports as filed with or furnished to the U.S. Securities and Exchange Commission. Our filings are publicly available on our investor information home page at investors.carmax.com. Requests for information may also be made to the Investor Relations Department by email to investor_relations @hopeful x7865. We undertake no obligation to update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise. CARMAX, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)     Three Months Ended May 31 (In thousands except per share data)   2026   %(1)   2025   %(1) SALES AND OPERATING REVENUES:         Used vehicle sales $ 6,391,332   79.8 $ 6,103,440   80.9 Wholesale vehicle sales   1,427,635   17.8   1,252,738   16.6 Other sales and revenues   194,552   2.4   190,363   2.5 NET SALES AND OPERATING REVENUES   8,013,519   100.0   7,546,541   100.0 COST OF SALES:         Used vehicle cost of sales   5,889,979   73.5   5,549,257   73.5 Wholesale vehicle cost of sales   1,258,144   15.7   1,096,167   14.5 Other cost of sales   10,982   0.1   7,494   0.1 TOTAL COST OF SALES   7,159,105   89.3   6,652,918   88.2 GROSS PROFIT   854,414   10.7   893,623   11.8 CARMAX AUTO FINANCE INCOME   140,241   1.8   141,650   1.9 Selling, general, and administrative expenses   635,175   7.9   659,643   8.7 Depreciation and amortization   69,213   0.9   65,739   0.9 Interest expense   33,811   0.4   27,070   0.4 Other income   (2,101 ) —   (309 ) — Earnings before income taxes   258,557   3.2   283,130   3.8 Income tax provision   72,930   0.9   72,749   1.0 NET EARNINGS $ 185,627   2.3 $ 210,381   2.8 WEIGHTED AVERAGE COMMON SHARES:         Basic   141,847       152,137     Diluted   142,148       152,607     NET EARNINGS PER SHARE:         Basic $ 1.31     $ 1.38     Diluted $ 1.31     $ 1.38     (1) Percents are calculated as a percentage of net sales and operating revenues and may not total due to rounding. CARMAX, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED)       As of     May 31   February 28   May 31 (In thousands except share data)   2026       2026       2025   ASSETS             CURRENT ASSETS:             Cash and cash equivalents $ 132,223     $ 122,826     $ 262,819     Restricted cash from collections on auto loans held for investment   595,103       592,033       584,277     Accounts receivable, net   263,919       204,453       200,305     Auto loans held for sale   618,979       100,491       637,947     Inventory   4,062,765       4,137,005       3,624,353     Other current assets   161,340       153,594       142,890     TOTAL CURRENT ASSETS   5,834,329       5,310,402       5,452,591     Auto loans held for investment, net   15,689,952       15,952,291       16,802,744     Property and equipment, net   4,079,993       4,070,293       3,909,977     Deferred income taxes   72,917       78,479       141,183     Operating lease assets   451,441       459,514       482,613     Goodwill   —       —       141,258     Other assets   498,266       496,924       456,039     TOTAL ASSETS $ 26,626,898     $ 26,367,903     $ 27,386,405                 LIABILITIES AND SHAREHOLDERS’ EQUITY             CURRENT LIABILITIES:             Accounts payable $ 1,056,719     $ 1,117,976     $ 980,499     Accrued expenses and other current liabilities   417,841       475,495       409,003     Accrued income taxes   54,191       2,019       79,412     Current portion of operating lease liabilities   56,988       57,341       58,332     Current portion of long-term debt   17,234       217,323       217,319     Current portion of non-recourse notes payable   554,081       544,651       532,787     TOTAL CURRENT LIABILITIES   2,157,054       2,414,805       2,277,352     Long-term debt, excluding current portion   2,061,271       2,006,217       1,366,176     Non-recourse notes payable, excluding current portion   15,499,705       15,254,330       16,639,622     Operating lease liabilities, excluding current portion   453,352       464,696       470,912     Other liabilities   336,931       338,999       345,434     TOTAL LIABILITIES   20,508,313       20,479,047       21,099,496                   Commitments and contingent liabilities             SHAREHOLDERS’ EQUITY:             Common stock, $0.50 par value; 350,000,000 shares authorized; 141,909,099 and 141,799,070 shares issued and outstanding as of May 31, 2026 and February 28, 2026, respectively   70,955       70,900       75,291     Capital in excess of par value   1,834,058       1,810,223       1,899,003     Accumulated other comprehensive loss   (13,914 )     (34,126 )     (8,246 )   Retained earnings   4,227,486       4,041,859       4,320,861     TOTAL SHAREHOLDERS’ EQUITY   6,118,585       5,888,856       6,286,909     TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 26,626,898     $ 26,367,903     $ 27,386,405   CARMAX, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)     Three Months Ended May 31 (In thousands)   2026       2025   OPERATING ACTIVITIES:       Net earnings $ 185,627     $ 210,381   Adjustments to reconcile net earnings to net cash provided by operating activities:       Depreciation and amortization   92,895       79,784   Share-based compensation expense   41,946       46,981   Provision for loan losses   95,584       101,707   Provision for cancellation reserves   26,166       24,803   Deferred income tax (benefit) provision   (991 )     2,782   Other   (3,252 )     1,310   Net (increase) decrease in:       Accounts receivable, net   (59,466 )     (11,572 ) Auto loans held for sale   (518,488 )     (637,947 ) Inventory   74,240       310,269   Other current assets   6,487       2,692   Auto loans held for investment, net   166,755       338,338   Other assets   (8,146 )     (5,712 ) Net decrease in:       Accounts payable, accrued expenses and other current liabilities and accrued income taxes   (58,274 )     (141,867 ) Other liabilities   (23,494 )     (22,406 ) NET CASH PROVIDED BY OPERATING ACTIVITIES   17,589       299,543   INVESTING ACTIVITIES:       Capital expenditures   (103,335 )     (136,736 ) Proceeds from disposal of property and equipment   63       48   Purchases of investments   (1,668 )     (4,926 ) Sales and returns of investments   845       425   Principal payments received on beneficial interests   4,469       —   NET CASH USED IN INVESTING ACTIVITIES   (99,626 )     (141,189 ) FINANCING ACTIVITIES:       Proceeds from issuances of long-term debt   1,517,800       87,000   Payments on long-term debt   (1,669,622 )     (90,930 ) Cash paid for debt issuance costs   (6,048 )     (8,895 ) Payments on finance lease obligations   (4,084 )     (3,443 ) Issuances of non-recourse notes payable   3,261,564       3,988,864   Payments on non-recourse notes payable   (3,006,781 )     (3,906,323 ) Repurchase and retirement of common stock   (2,308 )     (204,027 ) Equity issuances   —       8,329   NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES   90,521       (129,425 ) Increase in cash, cash equivalents, and restricted cash   8,484       28,929   Cash, cash equivalents, and restricted cash at beginning of year   862,850       960,310   CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD $ 871,334     $ 989,239     View source version on businesswire.com: https://www.businesswire.com/news/home/20260617549757/en/ Investors:
David Lowenstein, Vice President, Investor Relations

CarMax Announces First Quarter Conference Call and Annual Meeting InformationMay 28, 2026 5:00 PM
Business Wire CarMax, Inc. (NYSE:KMX) will report its financial results for the first quarter ended May 31, 2026 before the market opens on June 17, 2026, and it will host a conference call with investors at 8:00 a.m. ET to discuss these results. Please note that the Company has changed the time of its earnings conference calls to 8:00 a.m. ET. Participants on the call will include Keith Barr, President and CEO, Enrique Mayor-Mora, Executive Vice President, CFO and Jon Daniels, Executive Vice President, CarMax Auto Finance. The live conference call can be accessed by dialing (800) 225-9448 (or (203) 518-9708 for international access) and entering the conference ID 3171396. A live audio webcast also will be available at investors.carmax.com. A replay of the webcast will be available on the company’s website at investors.carmax.com through September 28, 2026 or via telephone (for approximately one week) by dialing (800) 839-1247 (or (402) 220-0470 for international access). June 23, 2026 – CarMax Annual Meeting of Shareholders The CarMax 2026 annual meeting of shareholders will be held on Tuesday, June 23, 2026 beginning at 1:00 p.m. ET. The meeting will be held virtually and there will be no in-person meeting location. A live webcast of the meeting will be available at investors.carmax.com and a webcast replay will be available following the event. About CarMax CarMax, the nation’s largest retailer of used autos, revolutionized the automotive retail industry by driving integrity, honesty and transparency in every interaction. The company offers a truly personalized experience with the option for customers to do as much, or as little, online and in-store as they want. During the fiscal year ended February 28, 2026, CarMax sold approximately 780,000 used vehicles and 540,000 wholesale vehicles at its auctions. In addition, CarMax Auto Finance originated $8 billion in auto loans during fiscal 2026, adding to its nearly $16 billion portfolio. CarMax has more than 255 store locations, approximately 28,000 associates, and is proud to have been recognized for 22 consecutive years as one of the Fortune 100 Best Companies to Work For®. CarMax is committed to helping its communities thrive and reducing the environmental footprint of its operations. Learn more in the 2026 Responsibility Report. For more information, visit www.carmax.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260528511375/en/ Investors:
David Lowenstein

CarMax Announces Robert O’Shaughnessy to Join Board of DirectorsMay 12, 2026 4:40 PM
Business Wire CarMax, Inc. (NYSE: KMX) (“CarMax” or the “Company”), the nation’s largest retailer of used cars, today announced that it intends to add Robert O’Shaughnessy to the Company’s Board of Directors (the “Board”), subject to shareholder approval at the Company’s 2026 Annual Meeting of Shareholders (the “Annual Meeting”). Additionally, the Company announced the planned retirements of Shira Goodman and Mitchell Steenrod, each of whom will not stand for re-election. “We are pleased to welcome Bob to the CarMax board,” said Tom Folliard, Interim Executive Chair of the Board. “His significant experience in the auto industry, deep financial acumen, and consumer credit expertise from his oversight of Pulte's mortgage business make him a great addition. Adding Bob reflects the Board’s deliberate approach to refreshment, bringing relevant expertise and fresh perspectives to support long-term value creation. We also want to extend our gratitude to Shira and Mitch for their dedication to CarMax. Their guidance has been instrumental to establishing CarMax’s leading market position and iconic brand.” “CarMax has built a leading platform by investing in its exceptional brand and maintaining the trust of its customers,” said Robert O’Shaughnessy. “I look forward to working alongside Keith, the management team, and the Board as we work to deliver on CarMax’s potential in a moment of tremendous opportunity for the industry.” Following the Annual Meeting, the Board will be comprised of 11 directors, nine of whom are independent. Tom Folliard will be non-executive Chair and Mark O’Neil will assume the role of Lead Independent Director. About Robert O’Shaughnessy Mr. O’Shaughnessy brings extensive financial, operational, and leadership experience in industries where understanding shifting market and customer dynamics is crucial to success, including direct auto industry expertise. He retired from his position as Executive Vice President of PulteGroup, Inc., one of the largest homebuilders in the U.S., in March 2026, after serving as Executive Vice President and Chief Financial Officer from May 2011 until February 2025. Previously Mr. O’Shaughnessy served as Executive Vice President and Chief Financial Officer of Penske Automotive Group from 2007 to 2011. He held a number of financial roles with increasing responsibility at Penske, including Senior Vice President and Controller, from 1997 to 2007. Mr. O’Shaughnessy began his career in the New York office of Ernst & Young. About CarMax CarMax, the nation’s largest retailer of used autos, revolutionized the automotive retail industry by driving integrity, honesty and transparency in every interaction. The company offers a truly personalized experience with the option for customers to do as much, or as little, online and in-store as they want. During the fiscal year that ended February 28, 2026, CarMax sold approximately 780,000 used vehicles and 540,000 wholesale vehicles at its auctions. In addition, CarMax Auto Finance originated $8 billion in auto loans during fiscal 2026, adding to its $16 billion portfolio. CarMax has more than 255 store locations, approximately 28,000 associates, and is proud to have been recognized for 22 consecutive years as one of the Fortune 100 Best Companies to Work For®. CarMax is committed to helping its communities thrive and reducing the environmental footprint of its operations. Learn more in the 2025 Responsibility Report. For more information, visit www.carmax.com. Forward-Looking Statements We caution readers that the statements contained in this communication that are not statements of historical fact, including statements about our future business plans, operations, challenges, opportunities or prospects, including without limitation any statements or factors regarding our recent leadership transition, operating capacity, sales, inventory, market share, financial and operational targets and goals, revenue, margins, expenses, liquidity, loan originations, capital expenditures, share repurchase plans, debt obligations or earnings, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by the use of words such as “anticipate,” “believe,” “commit,” “could,” “enable,” “estimate,” “expect,” “focus on,” “intend,” “may,” “on track,” “outlook,” “plan,” “position,” “predict,” “should,” “target,” “will” and other variations of these words or similar expressions, whether in the negative or affirmative. Such forward-looking statements are based upon management’s current knowledge, expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially from anticipated results. For details on factors that could affect expectations, see our Annual Report on Form 10-K for the fiscal year ended February 28, 2026, and our quarterly or current reports as filed with or furnished to the U.S. Securities and Exchange Commission. Our filings are publicly available on our investor information home page at investors.carmax.com. Requests for information may also be made to the Investor Relations Department by email to investor_relations @hopeful x7865. We undertake no obligation to update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise. View source version on businesswire.com: https://www.businesswire.com/news/home/20260512406869/en/ Investors:
David Lowenstein, Vice President, Investor Relations

CarMax Tops Q4 Estimates but Shares Slide on $141M Goodwill ChargeApril 14, 2026 9:39 AM
IH Market News
CarMax (NYSE:KMX) reported fourth-quarter results that exceeded analyst expectations, but the stock declined after the company disclosed a $141.3 million goodwill impairment.Shares dropped more than 6% in premarket trading Tuesday.The used-car retailer posted earnings of $0.34 per share for the fourth quarter of fiscal 2026, ahead of the $0.18 consensus estimate. Revenue came in at $5.95 billion, also above expectations of $5.65 billion.The goodwill charge taken during the quarter was attributed to a significant decline in CarMax’s market capitalization, weaker financial performance throughout fiscal 2026, and a downward revision to its long-term outlook, the company said.Retail used vehicle sales edged down 0.8% year-over-year to 181,188 units, with comparable store sales declining 1.9%. Average retail selling prices fell by about $110 per vehicle. Wholesale unit sales rose 3.0% to 122,781, although wholesale revenue slipped 0.1% due to a roughly $270 drop in average prices.Total combined retail and wholesale volume was largely unchanged, rising just 0.7% to 303,969 units.“We are moving with urgency to improve execution, drive efficiencies, and sharpen our customer offering,” said Keith Barr, President and CEO. “We will make CarMax the obvious choice for customers through competitive pricing, access to a large selection of high-quality vehicles, and an exceptional end-to-end customer experience.”Looking ahead to fiscal 2027, CarMax plans to open four new stores and add four reconditioning and auction facilities, with capital spending expected to reach approximately $400 million.CarMax stock price

Original: CarMax Tops Q4 Estimates but Shares Slide on $141M Goodwill Charge

CarMax Reports Fourth Quarter and Fiscal Year 2026 ResultsApril 14, 2026 6:50 AM
Business Wire
CarMax, Inc. (NYSE:KMX) today reported results for the fourth quarter and fiscal year ended February 28, 2026.


Fourth Quarter Highlights:(1)



Keith Barr appointed President and Chief Executive Officer, effective March 16, 2026.



Combined retail and wholesale unit sales of 303,969, an increase of 0.7%.



Retail used unit sales decreased 0.8% and comparable store used unit sales declined 1.9%; gross profit per retail used unit of $2,115 declined from last year’s record fourth quarter by $207, reflecting pricing actions implemented to drive an improved sales trend.



Wholesale units increased 3.0%; gross profit per wholesale unit of $940, a decrease of $105 per unit.



Extended Protection Plans (EPP) margin per retail unit of $581, in line with the prior year.



Bought 270,000 vehicles from consumers and dealers, an increase of 0.4%.


229,000 vehicles were purchased from consumers, up 2.5%



41,000 vehicles were purchased through dealers, down 9.5%






SG&A of $611.3 million, in line with the prior year, as restructuring charges and higher advertising expense were offset by lower compensation and benefits. Excluding $33.9 million in restructuring charges, adjusted SG&A expenses were down $33.1 million or 5.4%(2).



Increased targeted SG&A reductions to $200 million in exit rate savings by the end of fiscal year 2027, up from the prior goal of $150 million.



CarMax Auto Finance (CAF) income decreased 9.8% to $143.7 million, reflecting a lower balance of auto loans outstanding following the $900 million non-prime securitization in the third quarter as well as an increase in the provision for loan losses related to CAF’s full spectrum expansion.



Net (loss) earnings per diluted share of ($0.85) versus $0.58 a year ago, as the quarter was negatively impacted by $0.99 related to a non-cash goodwill impairment and $0.20 of restructuring charges. Excluding these two items, adjusted net earnings per diluted share was $0.34 this quarter(2).



Repurchased $50.4 million in shares of common stock, paused repurchase program in the fourth quarter.





(1)







Comparisons to the prior year’s fourth quarter unless otherwise stated.








(2)







See non-GAAP reconciliation table for details







CEO Commentary:


“We are moving with urgency to improve execution, drive efficiencies, and sharpen our customer offering,” said Keith Barr, President and Chief Executive Officer. “We will make CarMax the obvious choice for customers through competitive pricing, access to a large selection of high-quality vehicles, and an exceptional end-to-end customer experience. Together with CarMax’s brand and culture, our national scale positions us well to regain momentum and deliver the growth and returns this business is capable of generating.”


Fourth Quarter Business Performance Review:


Sales. Combined retail and wholesale used vehicle unit sales were 303,969, an increase of 0.7% from the prior year’s fourth quarter.


Total retail used vehicle unit sales decreased 0.8% to 181,188 compared to the prior year’s fourth quarter. Comparable store used unit sales decreased 1.9% from the prior year’s fourth quarter. Total retail used vehicle revenues decreased 1.2% compared with the prior year’s fourth quarter, driven by lower retail used units sold and a decrease in average retail selling price of approximately $110 per unit or 0.4%.


Total wholesale vehicle unit sales increased 3.0% to 122,781 versus the prior year’s fourth quarter. Total wholesale revenues declined 0.1% compared with the prior year’s fourth quarter due to a decrease in the average wholesale selling price of approximately $270 per unit or 3.3%, mostly offset by the increase in wholesale units sold.


We bought 270,000 vehicles from consumers and dealers, up 0.4% compared to last year’s fourth quarter. Of these vehicles, 229,000 were bought from consumers and 41,000 were bought through dealers, an increase of 2.5% and a decrease of 9.5%, respectively, from last year’s fourth quarter.


Our digital capabilities supported 83% of retail unit sales. Omni sales(3) were 70% and online retail sales(4) accounted for 13% of retail unit sales.


Gross Profit. Total gross profit was $605.3 million, down 9.4% versus last year’s fourth quarter. Retail used vehicle gross profit decreased 9.6% and retail gross profit per used unit was $2,115, down $207 from last year’s record fourth quarter, reflecting pricing actions to drive an improved sales trend.


Wholesale vehicle gross profit decreased 7.3% versus the prior year’s fourth quarter, reflecting lower gross profit per unit, which declined $105 to $940 per unit, partially offset by higher wholesale unit volume.


Other gross profit decreased 10.6%, primarily reflecting a reduction in service department margins.


SG&A. SG&A expenses of $611.3 million were in line with the fourth quarter of fiscal 2025 and included $33.9 million in restructuring charges impacting compensation and benefits and occupancy costs, as well as increased advertising expense. These items were offset primarily by a reduced corporate bonus accrual, lower stock-based compensation expense, and savings from the Customer Experience Center workforce reduction in the third quarter of fiscal 2026. Excluding restructuring charges, which are related to anticipated SG&A savings moving forward, adjusted SG&A expenses were down $33.1 million or 5.4% in the fourth quarter of 2026.


SG&A as a percent of gross profit was 101.0% in the fourth quarter compared to 91.4% in the prior year’s fourth quarter, driven by the decline in gross profit and impacted by restructuring charges. Moving forward we will focus our SG&A efficiency metric on total units (retail and wholesale) instead of gross profit dollars. This metric has stronger alignment to driving unit volumes. In fiscal 2027, we expect to leverage SG&A per total unit when excluding the restructuring charges incurred in FY26.


We have increased targeted SG&A reductions to $200 million in exit rate savings by the end of fiscal year 2027, up from the prior goal of $150 million. We took another significant step towards these savings this quarter with a reduction in our corporate workforce.


CarMax Auto Finance.(5) CAF income decreased 9.8% to $143.7 million, driven by lower total interest margin resulting from a decline in auto loans outstanding following the $900 million non-prime securitization in the third quarter, in which most of the residual financial interest was sold, as well as an increase in the provision for loan losses reflecting higher Tier 2 penetration from CAF’s expansion in the credit spectrum. While intended to be highly profitable over time, the required upfront lifetime loss provision is expected to be a near-term headwind. This quarter’s provision for loan losses was $73.9 million compared to $68.3 million in the prior year’s fourth quarter. We also designated a $100 million pool of non-prime loans as held for sale during the quarter, which does not require a loss reserve.


As of February 28, 2026, the allowance for loan losses of $453.0 million was 2.78% of auto loans held for investment, down from 2.87% as of November 30, 2025.


CAF’s total interest margin percentage, which represents the spread between interest and fees charged to consumers and our funding costs, was 6.3% of average auto loans outstanding, which includes held for investment and held for sale, up 10 basis points from the prior year’s fourth quarter. After the effect of 3-day payoffs, CAF financed 42.8% of units sold in the current quarter, up from 42.3% in the prior year’s fourth quarter. CAF’s weighted average contract rate was 11.1% in the quarter, in line with the fourth quarter last year.


Goodwill Impairment. We recorded a non-cash goodwill impairment charge of $141.3 million during the fourth quarter of fiscal 2026, driven by the combination of a significant decline in market capitalization resulting from the decrease in our share price, pressured financial performance during fiscal 2026 and downward revisions to our forecasted financial outlook relative to the prior year’s outlook.


Share Repurchase Activity. During the fourth quarter of fiscal 2026, we repurchased 1.3 million shares of common stock for $50.4 million pursuant to our share repurchase program before pausing additional purchases. For the full year, we repurchased 11.8 million shares of common stock for $631.8 million. As of February 28, 2026, we had $1.31 billion remaining available for repurchase under the outstanding authorization. We remain committed to returning capital back to shareholders over time and may resume share repurchases in the future at any time depending upon market conditions and our capital needs, among other factors.


Location Openings. During the fourth quarter of fiscal 2026, we opened one new store location in Florence, Kentucky and one stand-alone reconditioning/auction center located in Frederick, Maryland.


Fiscal 2027 Capital Spending Plan. For fiscal 2027, we are planning to open four new stores, two stand-alone reconditioning/auction centers, and two stand-alone auction facilities. We expect capital expenditures of approximately $400 million in fiscal 2027 largely reflecting spending to support our future long-term growth in offsite reconditioning and auction facilities, as well as our new stores.




(3)







An omni retail unit sale is defined as a sale where customers complete at least one, but not all, of the four activities listed in note (3) below online. An omni retail unit sale also includes additional steps that can be completed online, including pre-qualifying for financing, setting appointments and signing up for notifications of cars coming soon.








(4)







An online retail sale is defined as a sale where the customer completes all four of these major transactional activities online: reserving the vehicle; financing the vehicle, if needed; trading-in or opting out of a trade in; and creating an online sales order.








(5)







Although CAF benefits from certain indirect overhead expenditures, we have not allocated indirect costs to CAF to avoid making subjective allocation decisions.







Supplemental Financial Information


Amounts and percentage calculations may not total due to rounding.


Sales Components




 






Three Months Ended February 28






 






Years Ended February 28








(In millions)






 






2026






 






 






 






2025






 






 






Change






 






 






2026






 






 






 






2025






 






 






Change








Used vehicle sales






$






4,780.0






 






 






$






4,836.2






 






 






(1.2






)%






 






$






20,702.4






 






 






$






21,079.7






 






 






(1.8






)%








Wholesale vehicle sales






 






1,007.1






 






 






 






1,007.9






 






 






(0.1






)%






 






 






4,504.6






 






 






 






4,587.5






 






 






(1.8






)%








Other sales and revenues:






 






 






 






 






 






 






 






 






 






 






 








Extended protection plan revenues






 






105.3






 






 






 






105.9






 






 






(0.6






)%






 






 






448.7






 






 






 






451.7






 






 






(0.7






)%








Third-party finance fees, net






 






(4.1






)






 






 






(2.3






)






 






(80.2






)%






 






 






(8.7






)






 






 






(1.5






)






 






(477.6






)%








Advertising & subscription revenues (1)






 






34.9






 






 






 






34.1






 






 






2.4






%






 






 






144.5






 






 






 






139.3






 






 






3.7






%








Other






 






22.7






 






 






 






21.3






 






 






7.2






%






 






 






89.7






 






 






 






96.8






 






 






(7.4






)%








Total other sales and revenues






 






158.8






 






 






 






159.0






 






 






(0.1






)%






 






 






674.2






 






 






 






686.3






 






 






(1.8






)%








Total net sales and operating revenues






$






5,946.0






 






 






$






6,003.1






 






 






(1.0






)%






 






$






25,881.1






 






 






$






26,353.4






 






 






(1.8






)%









(1)







Excludes intercompany revenues that have been eliminated in consolidation.







Unit Sales




 






Three Months Ended February 28






 






Years Ended February 28








 






2026






 






2025






 






Change






 






2026






 






2025






 






Change








Used vehicles






181,188






 






182,655






 






(0.8






)%






 






780,684






 






789,050






 






(1.1






)%








Wholesale vehicles






122,781






 






119,156






 






3.0






%






 






538,203






 






544,312






 






(1.1






)%







Average Selling Prices




 






Three Months Ended February 28






 






Years Ended February 28








 






 






2026






 






 






2025






 






Change






 






 






2026






 






 






2025






 






Change








Used vehicles






$






26,019






 






$






26,133






 






(0.4






)%






 






$






26,121






 






$






26,273






 






(0.6






)%








Wholesale vehicles






$






7,776






 






$






8,044






 






(3.3






)%






 






$






7,942






 






$






8,019






 






(1.0






)%







Vehicle Sales Changes




 






Three Months Ended February 28






 






Years Ended February 28








 






2026






2025






 






2026






2025








Used vehicle units






(0.8) %






6.2 %






 






(1.1) %






3.1 %








Used vehicle revenues






(1.2) %






7.5 %






 






(1.8) %






0.8 %








 






 






 






 






 






 








Wholesale vehicle units






3.0 %






3.1 %






 






(1.1) %






(0.4) %








Wholesale vehicle revenues






(0.1) %






3.5 %






 






(1.8) %






(7.8) %







Comparable Store Used Vehicle Sales Changes (1)




 






Three Months Ended February 28






 






Years Ended February 28








 






2026






2025






 






2026






2025








Used vehicle units






(1.9) %






5.1 %






 






(2.0) %






2.2 %








Used vehicle revenues






(2.0) %






5.9 %






 






(2.5) %






(0.4) %









(1)







Stores are added to the comparable store base beginning in their fourteenth full month of operation. Comparable store calculations include results for a set of stores that were included in our comparable store base in both the current and corresponding prior year periods.







Used Vehicle Financing Penetration by Channel (Before the Impact of 3-day Payoffs) (1)




 






Three Months Ended February 28






 






Years Ended February 28








 






2026






2025






 






2026






2025








CAF (2)






45.3 %






44.3 %






 






44.9 %






45.0 %








Tier 2 (3)






15.8 %






17.6 %






 






16.7 %






18.0 %








Tier 3 (4)






9.8 %






7.9 %






 






8.3 %






7.1 %








Other (5)






29.1 %






30.2 %






 






30.1 %






29.9 %








Total






100.0 %






100.0 %






 






100.0 %






100.0 %









(1)







Calculated as used vehicle units financed for respective channel as a percentage of total used units sold.








(2)







Includes CAF's Tier 2 and Tier 3 loan originations, which represent approximately 2% of total used units sold.








(3)







Third-party finance providers who generally pay us a fee or to whom no fee is paid.








(4)







Third-party finance providers to whom we pay a fee.








(5)







Represents customers arranging their own financing and customers that do not require financing.







Selected Operating Ratios




 






Three Months Ended February 28






 






Years Ended February 28








(In millions)






 






2026






 






% (1)






 






 






2025







% (1)






 






 






2026







% (1)






 






 






2025







% (1)








Net sales and operating revenues






$






5,946.0






 






100.0






 






 






$






6,003.1







100.0






 






$






25,881.1







100.0






 






$






26,353.4







100.0








Gross profit






$






605.3






 






10.2






 






 






$






667.9







11.1






 






$






2,806.6







10.8






 






$






2,897.9







11.0








CarMax Auto Finance income






$






143.7






 






2.4






 






 






$






159.3







2.7






 






$






562.7







2.2






 






$






581.7







2.2








Selling, general, and administrative expenses






$






611.3






 






10.3






 






 






$






610.5







10.2






 






$






2,453.4







9.5






 






$






2,435.4







9.2








Interest expense






$






28.8






 






0.5






 






 






$






24.1







0.4






 






$






110.4







0.4






 






$






107.9







0.4








(Loss) earnings before income taxes






$






(110.7






)






(1.9






)






 






$






118.4







2.0






 






$






383.4







1.5






 






$






669.4







2.5








Net (loss) earnings






$






(120.7






)






(2.0






)






 






$






89.9







1.5






 






$






247.3







1.0






 






$






500.6







1.9








(1)


Calculated as a percentage of net sales and operating revenues.







Gross Profit (1)




 






Three Months Ended February 28






 






Years Ended February 28








(In millions)






 






2026






 






 






2025






 






Change






 






 






2026






 






 






2025






 






Change








Used vehicle gross profit






$






383.2






 






$






424.1






 






(9.6






)%






 






$






1,759.0






 






$






1,823.2






 






(3.5






)%








Wholesale vehicle gross profit






 






115.4






 






 






124.5






 






(7.3






)%






 






 






524.1






 






 






557.6






 






(6.0






)%








Other gross profit






 






106.7






 






 






119.3






 






(10.6






)%






 






 






523.5






 






 






517.1






 






1.2






%








Total






$






605.3






 






$






667.9






 






(9.4






)%






 






$






2,806.6






 






$






2,897.9






 






(3.2






)%









(1)







Amounts are net of intercompany eliminations.







Gross Profit per Unit (1)




 






Three Months Ended February 28






 






Years Ended February 28








 






2026






2025






 






2026






2025








 






$ per unit(2)






%(3)






$ per unit(2)






%(3)






 






$ per unit(2)






%(3)






$ per unit(2)






%(3)








Used vehicle gross profit per unit






$






2,115






8.0






$






2,322






8.8






 






$






2,253






8.5






$






2,311






8.6








Wholesale vehicle gross profit per unit






$






940






11.5






$






1,045






12.4






 






$






974






11.6






$






1,024






12.2








Other gross profit per unit






$






589






67.1






$






653






75.1






 






$






671






77.7






$






655






75.4









(1)







Amounts are net of intercompany eliminations.








(2)







Calculated as category gross profit divided by its respective units sold, except the other category, which is divided by total used units sold.








(3)







Calculated as a percentage of its respective sales or revenue.







SG&A Expenses (1)




 






Three Months Ended February 28






 






Years Ended February 28








(In millions except per unit data)






 






2026






 






 






 






2025






 






 






Change






 






 






2026






 






 






 






2025






 






 






Change








Compensation and benefits:






 






 






 






 






 






 






 






 






 






 






 








Compensation and benefits, excluding share-based compensation expense






$






312.7






 






 






$






328.6






 






 






(4.8






)%






 






$






1,292.4






 






 






$






1,289.7






 






 






0.2






%








Share-based compensation expense






 






10.7






 






 






 






25.4






 






 






(58.1






)%






 






 






93.4






 






 






 






126.9






 






 






(26.4






)%








Total compensation and benefits (2)






$






323.4






 






 






$






354.0






 






 






(8.6






)%






 






$






1,385.8






 






 






$






1,416.6






 






 






(2.2






)%








Occupancy costs






 






93.8






 






 






 






66.5






 






 






41.1






%






 






 






305.5






 






 






 






285.3






 






 






7.1






%








Advertising expense






 






77.9






 






 






 






72.1






 






 






8.0






%






 






 






283.0






 






 






 






260.7






 






 






8.6






%








Other overhead costs (3)






 






116.2






 






 






 






117.9






 






 






(1.4






)%






 






 






479.1






 






 






 






472.8






 






 






1.3






%








Total SG&A expenses






$






611.3






 






 






$






610.5






 






 






0.1






%






 






$






2,453.4






 






 






$






2,435.4






 






 






0.7






%








SG&A per total unit






$






2,011






 






 






$






2,023






 






 






(0.6






)%






 






$






1,860






 






 






$






1,827






 






 






1.8






%








SG&A as a % of gross profit






 






101.0






%






 






 






91.4






%






 






9.6






%






 






 






87.4






%






 






 






84.0






%






 






3.4






%









(1)







Amounts are net of intercompany eliminations.








(2)







Excludes compensation and benefits related to reconditioning and vehicle repair service, which are included in cost of sales.








(3)







Includes IT expenses, non-CAF bad debt, insurance, preopening and relocation costs, travel, charitable contributions and other administrative expenses.







Components of CAF Income and Other CAF Information




 






Three Months Ended February 28






 






Years Ended February 28








(In millions)






 






2026






 






 






2025






 






 






 






2026






 






 






2025






 








Interest margin:






 






 






 






 






 








Interest and fee income






$






441.0






 






$






467.6






 






 






$






1,864.2






 






$






1,853.9






 








Interest expense






 






(184.2






)






 






(194.0






)






 






 






(769.2






)






 






(763.2






)








Total interest margin






 






256.8






 






 






273.6






 






 






 






1,095.0






 






 






1,090.7






 








Provision for loan losses






 






(73.9






)






 






(68.3






)






 






 






(391.2






)






 






(334.7






)








Total interest margin after provision for loan losses






 






182.9






 






 






205.3






 






 






 






703.8






 






 






756.0






 








Servicing income






 






4.7






 






 






—






 






 






 






9.7






 






 






—






 








Total direct expenses






 






(44.0






)






 






(46.0






)






 






 






(177.9






)






 






(174.3






)








Gain on sale of auto loans






 






(0.1






)






 






—






 






 






 






26.9






 






 






—






 








Fair value adjustments on beneficial interests






 






0.2






 






 






—






 






 






 






0.2






 






 






—






 








CarMax Auto Finance income






$






143.7






 






$






159.3






 






 






$






562.7






 






$






581.7






 








 






 






 






 






 






 








Average auto loans outstanding (1)






$






16,403.5






 






$






17,684.0






 






 






$






17,165.8






 






$






17,683.9






 








Total interest margin as a percent of average auto loans outstanding






 






6.3






%






 






6.2






%






 






 






6.4






%






 






6.2






%








 






 






 






 






 






 








Net auto loans originated (1)






$






1,858.1






 






$






1,886.2






 






 






$






7,992.7






 






$






8,254.5






 








Net penetration rate (1)






 






42.8






%






 






42.3






%






 






 






42.4






%






 






42.7






%








Weighted average contract rate (1)






 






11.1






%






 






11.1






%






 






 






11.2






%






 






11.3






%








 






 






 






 






 






 








Ending allowance for loan losses






$






453.0






 






$






458.7






 






 






$






453.0






 






$






458.7






 








 






 






 






 






 






 








(1)


Includes auto loans held for investment and auto loans held for sale.







Earnings Highlights




 






Three Months Ended February 28






 






Years Ended February 28








(In millions except per share data)






 






2026






 






 






 






2025






 






Change






 






 






2026






 






 






2025






 






Change








Net (loss) earnings






$






(120.7






)






 






$






89.9






 






(234.3






)%






 






$






247.3






 






$






500.6






 






(50.6






)%








Diluted weighted average shares outstanding






 






141.9






 






 






 






154.7






 






(8.3






)%






 






 






147.6






 






 






156.1






 






(5.4






)%








Net (loss) earnings per diluted share






$






(0.85






)






 






$






0.58






 






(246.6






)%






 






$






1.68






 






$






3.21






 






(47.7






)%







Non-GAAP Financial Measures




 






Three Months Ended February 28






 






Years Ended February 28








(Dollars in millions except per share and per unit data)






 






2026






 






 






2025






 






 






 






2026






 






 






2025






 








SG&A expenses






$






611.3






 






$






610.5






 






 






$






2,453.4






 






$






2,435.4






 








Restructuring charges (1)






 






(33.9






)






 






—






 






 






 






(49.8






)






 






—






 








Adjusted SG&A expenses






$






577.4






 






$






610.5






 






 






$






2,403.6






 






$






2,435.4






 








 






 






 






 






 






 








Gross profit






$






605.3






 






$






667.9






 






 






$






2,806.6






 






$






2,897.9






 








SG&A as a percent of gross profit






 






101.0






%






 






91.4






%






 






 






87.4






%






 






84.0






%








Adjusted SG&A as a percent of gross profit






 






95.4






%






 






91.4






%






 






 






85.6






%






 






84.0






%








 






 






 






 






 






 








Used units sales






 






181,188






 






 






182,655






 






 






 






780,684






 






 






789,050






 








Wholesale unit sales






 






122,781






 






 






119,156






 






 






 






538,203






 






 






544,312






 








Total unit sales






 






303,969






 






 






301,811






 






 






 






1,318,887






 






 






1,333,362






 








SG&A per total unit






$






2,011






 






$






2,023






 






 






$






1,860






 






$






1,827






 








Adjusted SG&A per total unit






$






1,900






 






$






2,023






 






 






$






1,822






 






$






1,827






 








 






 






 






 






 






 








Net (loss) earnings per diluted share






$






(0.85






)






$






0.58






 






 






$






1.68






 






$






3.21






 








Impairment charges (2)






 






0.99






 






 






0.08






 






 






 






0.96






 






 






0.08






 








Restructuring charges (3)






 






0.26






 






 






—






 






 






 






0.35






 






 






—






 








Income tax impact of non-GAAP adjustments (4)






 






(0.06






)






 






(0.02






)






 






 






(0.08






)






 






(0.02






)








Adjusted net earnings per diluted share






$






0.34






 






$






0.64






 






 






$






2.91






 






$






3.27










(1)







Includes the portion of costs related to severance costs for our CEO change and workforce reductions as well as costs related to the abandonment of our Edmunds lease that have been recorded in SG&A expenses.








(2)







Includes the goodwill impairment charge recorded in fiscal 2026 and the Edmunds lease impairment charge recorded in fiscal 2025.








(3)







Includes all costs related to severance costs for our CEO change and workforce reductions as well as all costs related to the abandonment of our Edmunds lease.








(4)







Calculated using the blended statutory tax rate for each period.







Conference Call Information


We will host a conference call for investors at 9:00 a.m. ET today, April 14, 2026. Domestic investors may access the call at 1-800-225-9448 (international callers dial 1-203-518-9708). The conference I.D. for both domestic and international callers is 3171396. A live webcast of the call will be available on our investor information home page at investors.carmax.com. An investor presentation is also available on the website.


A replay of the webcast will be available on the company’s website at investors.carmax.com through June 16, 2026, or via telephone (for approximately one week) by dialing 1-800-839-1337 (or 1-402-220-0489 for international access) and entering the conference ID 3171396.


First Quarter Fiscal 2027 Earnings Release Date


We currently plan to release results for the first quarter ending May 31, 2026, on Wednesday, June 17, 2026, before the opening of trading on the New York Stock Exchange. We plan to host a conference call for investors at 9:00 a.m. ET on that date. Information on this conference call will be available on our investor information home page at investors.carmax.com in early June 2026.


About CarMax


CarMax, the nation’s largest retailer of used autos, revolutionized the automotive retail industry by driving integrity, honesty and transparency in every interaction. The company offers a truly personalized experience with the option for customers to do as much, or as little, online and in-store as they want. During the fiscal year that ended February 28, 2026, CarMax sold approximately 780,000 used vehicles and 540,000 wholesale vehicles at its auctions. In addition, CarMax Auto Finance originated $8 billion in auto loans during fiscal 2026, adding to its $16 billion portfolio. CarMax has more than 255 store locations, approximately 28,000 associates, and is proud to have been recognized for 22 consecutive years as one of the Fortune 100 Best Companies to Work For®. CarMax is committed to helping its communities thrive and reducing the environmental footprint of its operations. Learn more in the 2025 Responsibility Report. For more information, visit www.carmax.com.


Forward-Looking Statements


We caution readers that the statements contained in this release that are not statements of historical fact, including statements about our future business plans, operations, challenges, opportunities or prospects, including without limitation any statements or factors regarding our recent leadership transition, operating capacity, sales, inventory, market share, financial and operational targets and goals, revenue, margins, expenses, liquidity, loan originations, capital expenditures, share repurchase plans, debt obligations or earnings, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by the use of words such as “anticipate,” “believe,” “commit,” “could,” “enable,” “encourage,” “estimate,” “expect,” “focus on,” “intend,” “may,” “on track,” “outlook,” “plan,” “position,” “predict,” “should,” “target,” “will” and other variations of these words or similar expressions, whether in the negative or affirmative. Such forward-looking statements are based upon management’s current knowledge, expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially from anticipated results. Among the factors that could cause actual results and outcomes to differ materially from those contained in the forward-looking statements are the following:



Changes in the competitive landscape and/or our failure to successfully adjust to such changes.



Changes in general or regional U.S. economic conditions, including economic downturns, inflationary pressures, fluctuating interest rates, tariffs, the effect of trade policies or related uncertainties, and the potential impact of international events (including the conflict in the Middle East).



Changes in the availability or cost of capital and working capital financing, including changes related to the asset-backed securitization market.



Events that damage our reputation or harm the perception of the quality of our brand.



Significant changes in prices of new and used vehicles.



A reduction in the availability of or access to sources of inventory or a failure to expeditiously liquidate inventory.



Our inability to realize the benefits associated with our omni-channel platform or initiatives designed to leverage evolving technologies, including AI.



Factors related to geographic and sales growth, including the inability to effectively manage our growth.



Our inability to recruit, develop and retain associates and maintain positive associate relations.



The loss of key associates from our store, regional or corporate management teams, the failure to effectively execute key executive succession plans or disruptions associated with leadership transitions, or a significant increase in labor costs.



Changes in economic conditions or other factors that result in greater credit losses for CAF’s portfolio of auto loans than anticipated.



The failure or inability to realize the benefits associated with our strategic investments.



Changes in consumer credit availability provided by our third-party finance providers.



Changes in the availability of extended protection plan products from third-party providers.



The performance of the third-party vendors we rely on for key components of our business.



Adverse conditions affecting one or more automotive manufacturers.



The inaccuracy of estimates and assumptions used in the preparation of our financial statements, or the effect of new accounting requirements or changes to U.S. generally accepted accounting principles.



The failure or inability to adequately protect our intellectual property.



The occurrence of severe weather events.



The failure or inability to meet our environmental goals or satisfy related disclosure requirements.



Factors related to the geographic concentration of our stores.



Security breaches or other events that result in the misappropriation, loss or other unauthorized disclosure of confidential customer, associate or corporate information.



The failure of or inability to sufficiently enhance key information systems.



Factors related to the regulatory and legislative environment in which we operate.



The effect of evolving regulations, disclosure requirements, standards and expectations relating to environmental, social and governance matters.



The effect of various litigation matters.



The volatility in the market price for our common stock.



The impact of potential shareholder activism.



For more details on factors that could affect expectations, see our Annual Report on Form 10-K for the fiscal year ended February 28, 2025, and our quarterly or current reports as filed with or furnished to the U.S. Securities and Exchange Commission. Our filings are publicly available on our investor information home page at investors.carmax.com. Requests for information may also be made to the Investor Relations Department by email to investor_relations @hopeful x7865. We undertake no obligation to update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.




CARMAX, INC. AND SUBSIDIARIES




CONSOLIDATED STATEMENTS OF EARNINGS




(UNAUDITED)










 



 






Three Months Ended February 28






 






Years Ended February 28








(In thousands except per share data)






 






2026






 






%(1)






 






2025






%(1)






 






 






2026






 






%(1)






 






 






2025






 






%(1)








SALES AND OPERATING REVENUES:






 






 






 






 






 






 






 






 






 






 






 






 








Used vehicle sales






$






4,780,009






 






80.4






 






$






4,836,239






80.6






 






$






20,702,358






 






80.0






 






$






21,079,654






 






80.0








Wholesale vehicle sales






 






1,007,139






 






16.9






 






 






1,007,914






16.8






 






 






4,504,564






 






17.4






 






 






4,587,457






 






17.4








Other sales and revenues






 






158,812






 






2.7






 






 






158,970






2.6






 






 






674,209






 






2.6






 






 






686,309






 






2.6








NET SALES AND OPERATING REVENUES






 






5,945,960






 






100.0






 






 






6,003,123






100.0






 






 






25,881,131






 






100.0






 






 






26,353,420






 






100.0








COST OF SALES:






 






 






 






 






 






 






 






 






 






 






 






 








Used vehicle cost of sales






 






4,396,800






 






73.9






 






 






4,412,173






73.5






 






 






18,943,402






 






73.2






 






 






19,256,483






 






73.1








Wholesale vehicle cost of sales






 






891,723






 






15.0






 






 






883,411






14.7






 






 






3,980,504






 






15.4






 






 






4,029,876






 






15.3








Other cost of sales






 






52,181






 






0.9






 






 






39,646






0.7






 






 






150,632






 






0.6






 






 






169,160






 






0.6








TOTAL COST OF SALES






 






5,340,704






 






89.8






 






 






5,335,230






88.9






 






 






23,074,538






 






89.2






 






 






23,455,519






 






89.0








GROSS PROFIT






 






605,256






 






10.2






 






 






667,893






11.1






 






 






2,806,593






 






10.8






 






 






2,897,901






 






11.0








CARMAX AUTO FINANCE INCOME






 






143,695






 






2.4






 






 






159,314






2.7






 






 






562,721






 






2.2






 






 






581,749






 






2.2








Selling, general, and administrative expenses






 






611,308






 






10.3






 






 






610,500






10.2






 






 






2,453,412






 






9.5






 






 






2,435,404






 






9.2








Depreciation and amortization






 






71,783






 






1.2






 






 






65,044






1.1






 






 






273,750






 






1.1






 






 






255,321






 






1.0








Interest expense






 






28,751






 






0.5






 






 






24,140






0.4






 






 






110,394






 






0.4






 






 






107,941






 






0.4








Goodwill impairment






 






141,258






 






2.4






 






 






—






—






 






 






141,258






 






0.5






 






 






—






 






—








Other expense






 






6,532






 






0.1






 






 






9,119






0.2






 






 






7,067






 






—






 






 






11,624






 






—








(Loss) earnings before income taxes






 






(110,681






)






(1.9






)






 






118,404






2.0






 






 






383,433






 






1.5






 






 






669,360






 






2.5








Income tax provision






 






10,003






 






0.2






 






 






28,538






0.5






 






 






136,143






 






0.5






 






 






168,804






 






0.6








NET (LOSS) EARNINGS






$






(120,684






)






(2.0






)






$






89,866






1.5






 






$






247,290






 






1.0






 






$






500,556






 






1.9








WEIGHTED AVERAGE COMMON SHARES:






 






 






 






 






 






 






 






 






 






 






 






 








Basic






 






141,923






 






 






 






153,667






 






 






 






147,258






 






 






 






 






155,330






 






 








Diluted






 






141,923






 






 






 






154,704






 






 






 






147,613






 






 






 






 






156,061






 






 








NET (LOSS) EARNINGS PER SHARE:






 






 






 






 






 






 






 






 






 






 






 






 








Basic






$






(0.85






)






 






$






0.58






 






 






$






1.68






 






 






 






$






3.22






 






 








Diluted






$






(0.85






)






 






$






0.58






 






 






$






1.68






 






 






 






$






3.21






 






 









(1)







Percents are calculated as a percentage of net sales and operating revenues and may not total due to rounding.









CARMAX, INC. AND SUBSIDIARIES




CONSOLIDATED BALANCE SHEETS




(UNAUDITED)









 



 






 






As of








 






 






February 28






 






February 28








(In thousands except share data)






 






2026






 






 






 






2025








ASSETS






 






 






 








 






CURRENT ASSETS:






 






 






 








 






Cash and cash equivalents






$






122,826






 






 






$






246,960








 






Restricted cash from collections on auto loans held for investment






 






592,033






 






 






 






559,118








 






Accounts receivable, net






 






204,453






 






 






 






188,733








 






Auto loans held for sale






 






100,491






 






 






 






—








 






Inventory






 






4,137,005






 






 






 






3,934,622








 






Other current assets






 






153,594






 






 






 






148,203








 






TOTAL CURRENT ASSETS






 






5,310,402






 






 






 






5,077,636








 






Auto loans held for investment, net






 






15,952,291






 






 






 






17,242,789








 






Property and equipment, net






 






4,070,293






 






 






 






3,841,833








 






Deferred income taxes






 






78,479






 






 






 






140,332








 






Operating lease assets






 






459,514






 






 






 






493,355








 






Goodwill






 






—






 






 






 






141,258








 






Other assets






 






496,924






 






 






 






467,003








 






TOTAL ASSETS






$






26,367,903






 






 






$






27,404,206








 






 






 






 






 








LIABILITIES AND SHAREHOLDERS’ EQUITY






 






 






 








 






CURRENT LIABILITIES:






 






 






 








 






Accounts payable






$






1,117,976






 






 






$






977,845








 






Accrued expenses and other current liabilities






 






475,495






 






 






 






529,926








 






Accrued income taxes






 






2,019






 






 






 






87,526








 






Current portion of operating lease liabilities






 






57,341






 






 






 






59,335








 






Current portion of long-term debt






 






217,323






 






 






 






16,821








 






Current portion of non-recourse notes payable






 






544,651






 






 






 






526,518








 






TOTAL CURRENT LIABILITIES






 






2,414,805






 






 






 






2,197,971








 






Long-term debt, excluding current portion






 






2,006,217






 






 






 






1,570,296








 






Non-recourse notes payable, excluding current portion






 






15,254,330






 






 






 






16,567,044








 






Operating lease liabilities, excluding current portion






 






464,696






 






 






 






481,963








 






Other liabilities






 






338,999






 






 






 






343,944








 






TOTAL LIABILITIES






 






20,479,047






 






 






 






21,161,218








 






 






 






 






 








 






Commitments and contingent liabilities






 






 






 








 






SHAREHOLDERS’ EQUITY:






 






 






 








 






Common stock, $0.50 par value; 350,000,000 shares authorized; 141,799,070 and 153,319,678 shares issued and outstanding as of February 28, 2026 and February 28, 2025, respectively






 






70,900






 






 






 






76,660








 






Capital in excess of par value






 






1,810,223






 






 






 






1,891,012








 






Accumulated other comprehensive (loss) income






 






(34,126






)






 






 






3,080








 






Retained earnings






 






4,041,859






 






 






 






4,272,236








 






TOTAL SHAREHOLDERS’ EQUITY






 






5,888,856






 






 






 






6,242,988








 






TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY






$






26,367,903






 






 






$






27,404,206








 






 






 






 






 









CARMAX, INC. AND SUBSIDIARIES




CONSOLIDATED STATEMENTS OF CASH FLOWS




(UNAUDITED)








 



 






Years Ended February 28








(In thousands)






 






2026






 






 






 






2025






 








OPERATING ACTIVITIES:






 






 






 








Net earnings






$






247,290






 






 






$






500,556






 








Adjustments to reconcile net earnings to net cash provided by operating activities:






 






 






 








Depreciation and amortization






 






345,962






 






 






 






294,801






 








Share-based compensation expense






 






99,018






 






 






 






134,709






 








Provision for loan losses






 






391,200






 






 






 






334,667






 








Provision for cancellation reserves






 






75,827






 






 






 






97,701






 








Deferred income tax provision (benefit)






 






73,800






 






 






 






(23,724






)








Proceeds from sale of auto loans






 






908,927






 






 






 






—






 








Impairment of goodwill






 






141,258






 






 






 






—






 








Other






 






9,345






 






 






 






20,781






 








Net (increase) decrease in:






 






 






 








Accounts receivable, net






 






(15,720






)






 






 






32,420






 








Auto loans held for sale






 






(100,491






)






 






 






—






 








Inventory






 






(202,383






)






 






 






(256,552






)








Other current assets






 






(7,813






)






 






 






109,162






 








Auto loans held for investment, net






 






(31,308






)






 






 






(565,612






)








Other assets






 






(31,958






)






 






 






(19,230






)








Net (decrease) increase in:






 






 






 








Accounts payable, accrued expenses and other current liabilities and accrued income taxes






 






(43,784






)






 






 






71,714






 








Other liabilities






 






(75,323






)






 






 






(106,954






)








NET CASH PROVIDED BY OPERATING ACTIVITIES






 






1,783,847






 






 






 






624,439






 








INVESTING ACTIVITIES:






 






 






 








Capital expenditures






 






(540,989






)






 






 






(467,939






)








Proceeds from disposal of property and equipment






 






418






 






 






 






333






 








Purchases of investments






 






(10,007






)






 






 






(10,738






)








Sales and returns of investments






 






2,994






 






 






 






17,342






 








Principal payments received on beneficial interests






 






7,539






 






 






 






—






 








NET CASH USED IN INVESTING ACTIVITIES






 






(540,045






)






 






 






(461,002






)








FINANCING ACTIVITIES:






 






 






 








Proceeds from issuances of long-term debt






 






1,538,400






 






 






 






522,800






 








Payments on long-term debt






 






(913,804






)






 






 






(836,622






)








Cash paid for debt issuance costs






 






(24,227






)






 






 






(21,253






)








Payments on finance lease obligations






 






(15,044






)






 






 






(16,536






)








Issuances of non-recourse notes payable






 






13,060,375






 






 






 






12,968,491






 








Payments on non-recourse notes payable






 






(14,352,524






)






 






 






(12,715,705






)








Repurchase and retirement of common stock






 






(642,786






)






 






 






(428,453






)








Equity issuances






 






8,348






 






 






 






73,741






 








NET CASH USED IN FINANCING ACTIVITIES






 






(1,341,262






)






 






 






(453,537






)








Decrease in cash, cash equivalents, and restricted cash






 






(97,460






)






 






 






(290,100






)








Cash, cash equivalents, and restricted cash at beginning of year






 






960,310






 






 






 






1,250,410






 








CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF YEAR






$






862,850






 






 






$






960,310






 







 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260414372210/en/
Investors:

David Lowenstein, Vice President, Investor Relations