CarMax Reports First Quarter Fiscal Year 2026 Results

CarMax, Inc. recently released its financial results for the first quarter of fiscal year 2026, ending May 31, 2025. The company, known as the largest retailer of used autos in the United States, reported significant growth in several key financial metrics, reflecting a strong performance in a competitive market.

Financial Highlights

CarMax reported a notable increase in net earnings per diluted share, which rose by 42.3% to $1.38 from $0.97 in the same period last year. The company's total gross profit increased by 12.8% to $893.6 million, driven by higher unit volumes and strong unit margin performance. However, CarMax Auto Finance (CAF) income saw a slight decrease of 3.6% to $141.7 million due to an increase in the provision for loan losses.

Business and Operational Highlights

Retail used unit sales increased by 9.0%, with comparable store used unit sales up by 8.1%. Wholesale units also saw a modest increase of 1.2%. The company bought 336,000 vehicles from consumers and dealers, marking a 7.2% increase from the previous year. Notably, 80% of retail unit sales were supported by CarMax's digital capabilities, with omni sales accounting for 66% and online retail sales for 14% of total retail unit sales.

Strategic Initiatives and Corporate Developments

CarMax expanded its non-prime funding program within CarMax Auto Finance, earmarking $637.9 million of non-prime loans intended to be fully sold off the balance sheet. This move is expected to provide significant flexibility in supporting CAF’s full spectrum penetration growth plans while mitigating risk. Additionally, the company accelerated its share buyback program, repurchasing $199.8 million in shares of common stock during the first quarter.

Management's Perspective

Bill Nash, President and CEO of CarMax, highlighted the company's fourth consecutive quarter of positive retail comps and double-digit year-over-year earnings per share growth. He attributed this success to CarMax's omni-channel experience, business diversity, and strong execution. Nash emphasized the company's commitment to providing a customer-centric car buying and selling experience, which he believes will continue to drive sales and market share growth.

Future Outlook

CarMax plans to release its second quarter fiscal 2026 results on September 25, 2025. The company remains optimistic about its growth prospects, supported by its strategic initiatives and strong market position.

SEC Filing: CARMAX INC [ KMX ] - 8-K - Jun. 20, 2025