CarMax (KMX) KMX Q2 Financial Results Summary

# CarMax (KMX) Q2 2026 Financial Results Summary

Richmond, Va., September 25, 2025 – CarMax, Inc. (NYSE: KMX) reported its financial results for the second quarter ended August 31, 2025. Below is a summary of key metrics and developments from the report:

## Second Quarter Highlights:

– **Retail Used Unit Sales:**
– Decreased by **5.4%** compared to the same quarter last year.
– Comparable store used unit sales fell by **6.3%**.
– **Wholesale Units:**
– Declined by **2.2%**.
– **Gross Profit Margins:**
– Gross profit per retail used unit: **$2,216** (no change from last year).
– Gross profit per wholesale unit: **$993** (consistent with last year).
– Extended Protection Plans (EPP) margin per retail unit: **$576** (in line with prior year).
– **Vehicle Purchases:**
– Total vehicles purchased from consumers and dealers: **293,000**, down **2.4%**.
– From consumers: **262,000**, down **2.7%**.
– From dealers: **31,000**, up **0.2%**.
– **SG&A Expenses:**
– Reduced by **1.6%** to **$601.1 million**.
– Future SG&A reductions targeted of at least **$150 million** over the next 18 months.
– **CarMax Auto Finance (CAF) Income:**
– Down **11.2%** to **$102.6 million**, attributed to an increased provision for loan losses despite growth in net interest margin percentage.
– **Net Earnings:**
– Earnings per diluted share at **$0.64**, a **24.7%** decrease from **$0.85** in the previous year’s quarter.
– **Share Repurchase:**
– **$180.0 million** in common stock repurchased during the quarter.

## Business Performance:

– **Combined Vehicle Sales:**
– Total retail and wholesale vehicle sales numbered **338,031**, marking a **4.1%** decrease from last year.
– **Retail Used Vehicle Revenues:**
– Decreased by **7.2%** to **$5,270.7 million**.
– **Wholesale Vehicle Revenues:**
– Declined by **0.4%**, totaling **$1,149.6 million**.
– **Other Revenues:**
– Declined by **4.2%**, primarily due to lower EPP revenues linked to decreased retail sales.

## Gross Profit Analysis:

– **Total Gross Profit:**
– Total GM stood at **$717.7 million**, a decrease of **5.6%** compared to last year.
– Retail used vehicle gross profit was **$442.6 million**, a **7.6%** decrease.
– **Gross Profit per Unit:**
– Retail used vehicle gross profit per unit: **$2,216**, down **8.4%**.
– Wholesale vehicle gross profit per unit: **$993**, up by **11.9%**.

## Operating Expenses:

– **SG&A Expenses:**
– Decreased by **1.6%** to **$601.1 million**.
– SG&A as a percentage of gross profit was **83.8%**, compared to **80.3%** last year, indicating increased costs relative to profit.

## CarMax Auto Finance Update:

– **CAF Income Analysis:**
– Decreased **11.2%** to **$102.6 million** with a higher provision for loan losses totaling **$142.2 million**, from **$112.6 million** the previous year.
– **Loan Performance Metrics:**
– Total interest margin percentage increased to **6.6%**, compared to **6.1%** last year.

## Other Notable Developments:

– **New Store Openings:**
– Opened three new stores located in **Tuscaloosa, Alabama; El Cajon, California; and Hagerstown, Maryland.**
– Additionally, inaugurated a stand-alone reconditioning/auction center in **New Kent County, Virginia**.

## Conclusion:

CarMax continues to face challenges, indicated by declines in vehicle sales and earnings, yet remains focused on improving operational efficiency and pursuing strategic long-term objectives. The commitment to share repurchases and cost management may influence future performance.

—

**Note:** As per the report, no quarterly dividend was declared.

Here are the extracted tables from the provided press release:

### CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands except per share data)

### CONSOLIDATED BALANCE SHEETS
(In thousands)