CarMax Reports Fourth Quarter and Fiscal Year 2025 Results
CarMax (KMX) reported strong Q4 FY2025 results with significant earnings growth. Net revenues increased 6.7% to $6.0 billion, driven by a 6.2% increase in retail used unit sales and 3.1% growth in wholesale units. The company achieved a fourth quarter record gross profit per retail unit of $2,322.
Total gross profit rose 13.9% to $667.9 million, while CarMax Auto Finance (CAF) income grew 8.2% to $159.3 million. Net earnings per diluted share increased 81.3% to $0.58. The company maintained its 3.7% market share of nationwide age 0-10 year old used vehicles in 2024.
Notable operational highlights include a 15.3% increase in vehicle purchases from consumers and dealers, reaching 269,000 units. Online retail sales accounted for 15% of retail unit sales, with total online transactions representing 29% of net revenues. The company repurchased $98.5 million in shares during Q4 and opened two new store locations.
CarMax (KMX) ha riportato risultati solidi per il quarto trimestre dell'anno fiscale 2025, con una crescita significativa degli utili. I ricavi netti sono aumentati del 6,7% a 6,0 miliardi di dollari, grazie a un incremento del 6,2% nelle vendite al dettaglio di veicoli usati e a una crescita del 3,1% nelle unità all'ingrosso. L'azienda ha raggiunto un record di profitto lordo per unità al dettaglio di $2,322 nel quarto trimestre.
Il profitto lordo totale è aumentato del 13,9% a 667,9 milioni di dollari, mentre il reddito di CarMax Auto Finance (CAF) è cresciuto dell'8,2% a 159,3 milioni di dollari. Gli utili netti per azione diluita sono aumentati dell'81,3% a 0,58 dollari. L'azienda ha mantenuto una quota di mercato del 3,7% per i veicoli usati di età compresa tra 0 e 10 anni a livello nazionale nel 2024.
Tra i principali risultati operativi si segnala un aumento del 15,3% negli acquisti di veicoli da parte di consumatori e concessionari, raggiungendo 269.000 unità. Le vendite al dettaglio online hanno rappresentato il 15% delle vendite di unità al dettaglio, con transazioni online totali che rappresentano il 29% dei ricavi netti. L'azienda ha riacquistato azioni per 98,5 milioni di dollari durante il quarto trimestre e ha aperto due nuove sedi.
CarMax (KMX) reportó resultados sólidos para el cuarto trimestre del año fiscal 2025, con un crecimiento significativo en las ganancias. Los ingresos netos aumentaron un 6.7% a $6.0 mil millones, impulsados por un incremento del 6.2% en las ventas de unidades usadas al por menor y un crecimiento del 3.1% en las unidades al por mayor. La compañía logró un récord de ganancias brutas por unidad al por menor de $2,322 en el cuarto trimestre.
La ganancia bruta total creció un 13.9% a 667.9 millones de dólares, mientras que los ingresos de CarMax Auto Finance (CAF) crecieron un 8.2% a 159.3 millones de dólares. Las ganancias netas por acción diluida aumentaron un 81.3% a $0.58. La compañía mantuvo una participación de mercado del 3.7% de vehículos usados de 0 a 10 años a nivel nacional en 2024.
Entre los aspectos operativos destacados se incluye un aumento del 15.3% en las compras de vehículos por parte de consumidores y concesionarios, alcanzando 269,000 unidades. Las ventas al por menor en línea representaron el 15% de las ventas de unidades al por menor, con transacciones en línea totales que representan el 29% de los ingresos netos. La compañía recompró acciones por 98.5 millones de dólares durante el cuarto trimestre y abrió dos nuevas ubicaciones de tiendas.
CarMax (KMX)는 2025 회계연도 4분기 강력한 실적을 보고하며 상당한 수익 성장을 기록했습니다. 순수익은 6.7% 증가하여 60억 달러에 달하며, 이는 소매 중고차 판매가 6.2% 증가하고 도매 유닛이 3.1% 성장한 데 따른 것입니다. 회사는 소매 유닛당 2,322달러의 분기별 기록 총 이익을 달성했습니다.
총 총 이익은 13.9% 증가하여 6억 6,790만 달러에 달했으며, CarMax Auto Finance (CAF)의 수익은 8.2% 증가하여 1억 5,930만 달러에 이릅니다. 희석 주당 순이익은 81.3% 증가하여 0.58달러에 도달했습니다. 회사는 2024년 0-10세 중고차에 대한 전국 시장 점유율 3.7%를 유지했습니다.
주요 운영 하이라이트로는 소비자와 딜러로부터의 차량 구매가 15.3% 증가하여 269,000대에 도달했습니다. 온라인 소매 판매는 소매 유닛 판매의 15%를 차지했으며, 총 온라인 거래는 순수익의 29%를 차지했습니다. 회사는 4분기 동안 9,850만 달러의 자사주를 매입하고 두 개의 새로운 매장 위치를 열었습니다.
CarMax (KMX) a annoncé des résultats solides pour le quatrième trimestre de l'exercice 2025, avec une croissance significative des bénéfices. Les revenus nets ont augmenté de 6,7 % pour atteindre 6,0 milliards de dollars, soutenus par une augmentation de 6,2 % des ventes de véhicules d'occasion au détail et une croissance de 3,1 % des unités en gros. L'entreprise a atteint un record de bénéfice brut par unité de vente au détail de 2 322 dollars au quatrième trimestre.
Le bénéfice brut total a augmenté de 13,9 % pour atteindre 667,9 millions de dollars, tandis que les revenus de CarMax Auto Finance (CAF) ont augmenté de 8,2 % pour atteindre 159,3 millions de dollars. Le bénéfice net par action diluée a augmenté de 81,3 % pour atteindre 0,58 dollar. L'entreprise a maintenu une part de marché de 3,7 % pour les véhicules d'occasion âgés de 0 à 10 ans au niveau national en 2024.
Parmi les faits saillants opérationnels, on note une augmentation de 15,3 % des achats de véhicules par les consommateurs et les concessionnaires, atteignant 269 000 unités. Les ventes au détail en ligne ont représenté 15 % des ventes au détail, tandis que les transactions en ligne totales ont représenté 29 % des revenus nets. L'entreprise a racheté pour 98,5 millions de dollars d'actions au cours du quatrième trimestre et a ouvert deux nouveaux magasins.
CarMax (KMX) hat starke Ergebnisse für das vierte Quartal des Geschäftsjahres 2025 gemeldet, mit einem signifikanten Gewinnwachstum. Die Nettoumsätze stiegen um 6,7% auf 6,0 Milliarden Dollar, was durch einen Anstieg der Einzelhandelsverkäufe gebrauchter Fahrzeuge um 6,2% und ein Wachstum der Großhandelszahlen um 3,1% vorangetrieben wurde. Das Unternehmen erreichte einen Vierteljahresrekord bei der Bruttogewinn pro Einzelhandelsunit von 2.322 Dollar.
Der Gesamtertrag stieg um 13,9% auf 667,9 Millionen Dollar, während die Einnahmen von CarMax Auto Finance (CAF) um 8,2% auf 159,3 Millionen Dollar wuchsen. Der Nettogewinn pro verwässerter Aktie stieg um 81,3% auf 0,58 Dollar. Das Unternehmen hielt 2024 einen Marktanteil von 3,7% an landesweiten gebrauchten Fahrzeugen im Alter von 0-10 Jahren.
Bemerkenswerte betriebliche Höhepunkte sind ein Anstieg der Fahrzeugkäufe von Verbrauchern und Händlern um 15,3%, was 269.000 Einheiten entspricht. Online-Einzelhandelsverkäufe machten 15% der Einzelhandelsverkäufe aus, während die gesamten Online-Transaktionen 29% der Nettoumsätze repräsentierten. Das Unternehmen hat im vierten Quartal Aktien im Wert von 98,5 Millionen Dollar zurückgekauft und zwei neue Filialen eröffnet.
- 81.3% increase in earnings per share to $0.58
- 13.9% growth in total gross profit to $667.9 million
- Record Q4 gross profit per retail unit of $2,322
- 6.7% increase in net revenues to $6.0 billion
- 8.2% growth in CarMax Auto Finance income to $159.3 million
- 15.3% increase in vehicle purchases from consumers and dealers
- $12 million Edmunds non-cash lease impairment expense
- Slight decline in wholesale gross profit per unit by $75
- 5.1% increase in SG&A expenses to $610.5 million
Insights
CarMax's Q4 results demonstrate robust financial momentum with 81.3% EPS growth to $0.58 versus $0.32 year-over-year. This impressive performance was driven by multiple factors: 6.7% revenue growth to $6.0 billion, 6.2% increase in retail used unit sales, and 13.9% growth in total gross profit to $667.9 million.
The gross profit improvement is particularly noteworthy, with retail used vehicle gross profit per unit reaching a Q4 record of $2,322 - up $71 per unit. Even more impressive is the service margin improvement from a loss of $261 per unit last year to just -$4 per unit currently, representing dramatic operational efficiency gains.
SG&A expense control has been excellent, with SG&A as a percent of gross profit decreasing 770 basis points to 91.4%. The company's statement that they'll need only low-single-digit gross profit growth to lever SG&A in FY2026 indicates confidence in their cost structure.
CarMax Auto Finance showed strength with 8.2% income growth to $159.3 million and improved credit metrics, as the allowance for loan losses decreased from 2.70% to 2.61% of managed receivables.
The $98.5 million share repurchase in Q4 (with $1.94 billion remaining authorization) signals management confidence. Their guidance of high-teens EPS CAGR with mid-single-digit retail unit growth presents a compelling growth trajectory for investors.
CarMax's operational improvements reflect successful execution in a challenging used car market. Their 5.1% comparable store growth in Q4 demonstrates strong consumer demand, while maintaining their 3.7% market share of the nationwide 0-10 year old used vehicle market shows resilience against competition.
The 15.3% increase in vehicle acquisitions (269,000 units) is strategically significant - inventory sourcing remains one of the biggest challenges in the used car industry. Particularly notable is the 114.2% increase in dealer-sourced vehicles, showing diversification of acquisition channels beyond consumer trade-ins.
Their omnichannel strategy continues gaining traction with online retail sales reaching 15% of units (up from 14%), while total online transaction revenue represented 29% of net revenues. This digital transformation enhances their market reach beyond physical locations.
The expansion plans - six new stores and four stand-alone reconditioning/auction centers for FY2026 - reflect a balanced approach to growth. The focus on reconditioning capacity is particularly astute as it addresses potential bottlenecks in their preparation process.
CarMax's removal of timeframes from long-term goals citing "broader macro factors" suggests prudent caution about external market conditions. However, their business model appears well-positioned with multiple revenue streams - retail sales, wholesale operations, and financing - providing diversification that competitors lack.
Achieved over
Fourth Quarter Highlights:(1)
-
Net revenues of
$6.0 billion 6.7% . -
Retail used unit sales increased
6.2% and comparable store used unit sales increased5.1% ; wholesale units increased3.1% . -
CarMax’s share of the nationwide age 0-10 year old used vehicle market remained at
3.7% in calendar year 2024. Accelerating gains in the back half of the year, reflecting the positive momentum across the business, offset losses in the first half of the year. -
Total gross profit of
$667.9 million 13.9% , driven by unit volumes and strong unit margin performance.-
Gross profit per retail used unit of
$2,322 $71 -
Gross profit per wholesale unit of
$1,045 $75 -
Extended Protection Plans (EPP) margin per retail unit of
$580 $10 -
Service margin loss of
$4 $257
-
Gross profit per retail used unit of
-
Bought 269,000 vehicles from consumers and dealers, an increase of
15.3% .-
223,000 vehicles were purchased from consumers, up
5.3% -
46,000 vehicles were purchased through dealers, up
114.2%
-
223,000 vehicles were purchased from consumers, up
-
SG&A of
$610.5 million 5.1% . Ongoing cost management efforts supported strong leverage of 770 basis points in SG&A as a percent of gross profit. -
CarMax Auto Finance (CAF) income of
$159.3 million 8.2% , due to growth in net interest margin percentage. -
Net earnings per diluted share of
$0.58 81.3% from$0.32 $0.06 $12 million -
Repurchased
$98.5 million
(1) |
Comparisons to the prior year’s fourth quarter unless otherwise stated |
CEO Commentary:
“We are pleased with the continuing momentum across our diversified business during the fourth quarter. We delivered robust EPS growth driven by increases in unit sales and buys, strong growth in total gross profit, an increase in CAF income, and ongoing management of SG&A,” said Bill Nash, president and chief executive officer. “During fiscal year 2025, we further differentiated our consumer offering and drove incremental operational efficiencies. Our associates, stores, technology and digital capabilities, all seamlessly tied together, enable us to provide the most customer centric car buying and selling experience. This is a key differentiator that gives us the right to win and access to the largest total addressable market in the used car space, providing a strong runway for future growth.”
Fourth Quarter Business Performance Review:
Sales. Combined retail and wholesale used vehicle unit sales were 301,811, an increase of
Total retail used vehicle unit sales increased
Total wholesale vehicle unit sales increased
We bought 269,000 vehicles from consumers and dealers, up
Other sales and revenues increased by
Online retail sales(2) accounted for
Gross Profit. Total gross profit was
Wholesale vehicle gross profit decreased
Other gross profit increased
SG&A. Compared with the fourth quarter of fiscal 2024, SG&A expenses increased
CarMax Auto Finance.(4) CAF income increased
As of February 28, 2025, the allowance for loan losses of
CAF’s total interest margin percentage, which represents the spread between interest and fees charged to consumers and our funding costs, was
Share Repurchase Activity. During the fourth quarter of fiscal year 2025, we repurchased 1.2 million shares of common stock for
Location Openings. During the fourth quarter of fiscal 2025, we opened two new store locations in
Fiscal 2026 Capital Spending Plan. For fiscal 2026, we are planning new store growth of six locations, as well as four stand-alone reconditioning/auction centers. We expect capital expenditures of approximately
Earnings Per Share Growth Model Update. Looking ahead, we have positioned the company to achieve ongoing growth in retail and wholesale unit sales and market share, with double-digit earnings per share growth for years to come. We are excited about the power of the earnings model we have built. Our model is designed to deliver an earnings per share growth CAGR in the high-teens when retail unit growth is in the mid-single digits.
Long-Term Goals. We are focused on growing the business, and we continue to make progress toward our long-term goals. However, we are removing the timeframes associated with them given the potential impact of broader macro factors.
(2) |
An online retail unit sale is defined as a sale where the customer completes all four of these major transactional activities remotely: reserving the vehicle; financing the vehicle, if needed; trading-in or opting out of a trade in; and creating a remote sales order. |
|
(3) |
Revenue from online transactions is defined as revenue from retail sales that qualify for an online retail sale, as well as any EPP and third-party finance contribution, wholesale sales where the winning bid was an online bid, and all revenue earned by Edmunds. |
|
(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
|
|
Years Ended February 28 or 29 |
||||||||||||||||||
(In millions) |
|
2025 |
|
|
|
2024 |
|
|
Change |
|
|
2025 |
|
|
|
2024 |
|
|
Change |
||
Used vehicle sales |
$ |
4,836.2 |
|
|
$ |
4,497.6 |
|
|
7.5 |
% |
|
$ |
21,079.7 |
|
|
$ |
20,922.3 |
|
|
0.8 |
% |
Wholesale vehicle sales |
|
1,007.9 |
|
|
|
974.3 |
|
|
3.5 |
% |
|
|
4,587.5 |
|
|
|
4,975.8 |
|
|
(7.8 |
)% |
Other sales and revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Extended protection plan revenues |
|
105.9 |
|
|
|
98.0 |
|
|
8.1 |
% |
|
|
451.7 |
|
|
|
401.8 |
|
|
12.4 |
% |
Third-party finance fees, net |
|
(2.3 |
) |
|
|
(3.5 |
) |
|
33.5 |
% |
|
|
(1.5 |
) |
|
|
(5.8 |
) |
|
74.4 |
% |
Advertising & subscription revenues (1) |
|
34.1 |
|
|
|
34.2 |
|
|
(0.3 |
)% |
|
|
139.3 |
|
|
|
135.8 |
|
|
2.6 |
% |
Other |
|
21.3 |
|
|
|
26.1 |
|
|
(18.3 |
)% |
|
|
96.8 |
|
|
|
106.2 |
|
|
(8.8 |
)% |
Total other sales and revenues |
|
159.0 |
|
|
|
154.8 |
|
|
2.7 |
% |
|
|
686.3 |
|
|
|
638.0 |
|
|
7.6 |
% |
Total net sales and operating revenues |
$ |
6,003.1 |
|
|
$ |
5,626.6 |
|
|
6.7 |
% |
|
$ |
26,353.4 |
|
|
$ |
26,536.0 |
|
|
(0.7 |
)% |
(1) |
Excludes intercompany revenues that have been eliminated in consolidation. |
Unit Sales |
|||||||||||||
|
Three Months Ended
|
|
Years Ended February 28 or 29 |
||||||||||
|
2025 |
|
2024 |
|
Change |
|
2025 |
|
2024 |
|
Change |
||
Used vehicles |
182,655 |
|
172,057 |
|
6.2 |
% |
|
789,050 |
|
765,572 |
|
3.1 |
% |
Wholesale vehicles |
119,156 |
|
115,546 |
|
3.1 |
% |
|
544,312 |
|
546,331 |
|
(0.4 |
)% |
Average Selling Prices |
|||||||||||||||||
|
Three Months Ended
|
|
Years Ended February 28 or 29 |
||||||||||||||
|
|
2025 |
|
|
2024 |
|
Change |
|
|
2025 |
|
|
2024 |
|
Change |
||
Used vehicles |
$ |
26,133 |
|
$ |
25,985 |
|
0.6 |
% |
|
$ |
26,273 |
|
$ |
27,028 |
|
(2.8 |
)% |
Wholesale vehicles |
$ |
8,044 |
|
$ |
8,034 |
|
0.1 |
% |
|
$ |
8,019 |
|
$ |
8,707 |
|
(7.9 |
)% |
Vehicle Sales Changes |
|||||||||
|
Three Months Ended
|
|
Years Ended February 28 or 29 |
||||||
|
2025 |
2024 |
|
2025 |
2024 |
||||
Used vehicle units |
6.2 |
% |
1.3 |
% |
|
3.1 |
% |
(5.2 |
)% |
Used vehicle revenues |
7.5 |
% |
(0.7 |
)% |
|
0.8 |
% |
(9.2 |
)% |
|
|
|
|
|
|
||||
Wholesale vehicle units |
3.1 |
% |
(4.0 |
)% |
|
(0.4 |
)% |
(6.6 |
)% |
Wholesale vehicle revenues |
3.5 |
% |
(5.5 |
)% |
|
(7.8 |
)% |
(16.9 |
)% |
Comparable Store Used Vehicle Sales Changes (1) |
|||||||||
|
Three Months Ended
|
|
Years Ended February 28 or 29 |
||||||
|
2025 |
2024 |
|
2025 |
2024 |
||||
Used vehicle units |
5.1 |
% |
0.1 |
% |
|
2.2 |
% |
(6.7 |
)% |
Used vehicle revenues |
5.9 |
% |
(2.0 |
)% |
|
(0.4 |
)% |
(10.6 |
)% |
(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
|
|
Years Ended February 28 or 29 |
||||||
|
2025 |
2024 |
|
2025 |
2024 |
||||
CAF (2) |
44.3 |
% |
44.8 |
% |
|
45.0 |
% |
45.8 |
% |
Tier 2 (3) |
17.6 |
% |
18.7 |
% |
|
18.0 |
% |
18.9 |
% |
Tier 3 (4) |
7.9 |
% |
8.2 |
% |
|
7.1 |
% |
7.0 |
% |
Other (5) |
30.2 |
% |
28.3 |
% |
|
29.9 |
% |
28.3 |
% |
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 |
|
(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 or 29 |
|
Years Ended February 28 or 29 |
||||||||||||
(In millions) |
|
2025 |
% (1) |
|
|
2024 |
% (1) |
|
|
2025 |
% (1) |
|
|
2024 |
% (1) |
Net sales and operating revenues |
$ |
6,003.1 |
100.0 |
|
$ |
5,626.6 |
100.0 |
|
$ |
26,353.4 |
100.0 |
|
$ |
26,536.0 |
100.0 |
Gross profit |
$ |
667.9 |
11.1 |
|
$ |
586.2 |
10.4 |
|
$ |
2,897.9 |
11.0 |
|
$ |
2,713.2 |
10.2 |
CarMax Auto Finance income |
$ |
159.3 |
2.7 |
|
$ |
147.3 |
2.6 |
|
$ |
581.7 |
2.2 |
|
$ |
568.3 |
2.1 |
Selling, general, and administrative expenses |
$ |
610.5 |
10.2 |
|
$ |
580.9 |
10.3 |
|
$ |
2,435.4 |
9.2 |
|
$ |
2,286.4 |
8.6 |
Interest expense |
$ |
24.1 |
0.4 |
|
$ |
31.4 |
0.6 |
|
$ |
107.9 |
0.4 |
|
$ |
124.8 |
0.5 |
Earnings before income taxes |
$ |
118.4 |
2.0 |
|
$ |
65.5 |
1.2 |
|
$ |
669.4 |
2.5 |
|
$ |
641.6 |
2.4 |
Net earnings |
$ |
89.9 |
1.5 |
|
$ |
50.3 |
0.9 |
|
$ |
500.6 |
1.9 |
|
$ |
479.2 |
1.8 |
| (1) | Calculated as a percentage of net sales and operating revenues. |
Gross Profit (1) |
|||||||||||||||||
|
Three Months Ended February 28 or 29 |
|
Years Ended February 28 or 29 |
||||||||||||||
(In millions) |
|
2025 |
|
|
2024 |
|
Change |
|
|
2025 |
|
|
2024 |
|
Change |
||
Used vehicle gross profit |
$ |
424.1 |
|
$ |
387.3 |
|
9.5 |
% |
|
$ |
1,823.2 |
|
$ |
1,752.0 |
|
4.1 |
% |
Wholesale vehicle gross profit |
|
124.5 |
|
|
129.4 |
|
(3.8 |
)% |
|
|
557.6 |
|
|
556.8 |
|
0.1 |
% |
Other gross profit |
|
119.3 |
|
|
69.5 |
|
71.8 |
% |
|
|
517.1 |
|
|
404.4 |
|
27.9 |
% |
Total |
$ |
667.9 |
|
$ |
586.2 |
|
13.9 |
% |
|
$ |
2,897.9 |
|
$ |
2,713.2 |
|
6.8 |
% |
(1) |
Amounts are net of intercompany eliminations. |
Gross Profit per Unit (1) |
|||||||||||||
|
Three Months Ended
|
|
Years Ended February 28 or 29 |
||||||||||
|
2025 |
2024 |
|
2025 |
2024 |
||||||||
|
$ per unit(2) |
%(3) |
$ per unit(2) |
%(3) |
|
$ per unit(2) |
%(3) |
$ per unit(2) |
%(3) |
||||
Used vehicle gross profit per unit |
$ |
2,322 |
8.8 |
$ |
2,251 |
8.6 |
|
$ |
2,311 |
8.6 |
$ |
2,288 |
8.4 |
Wholesale vehicle gross profit per unit |
$ |
1,045 |
12.4 |
$ |
1,120 |
13.3 |
|
$ |
1,024 |
12.2 |
$ |
1,019 |
11.2 |
Other gross profit per unit |
$ |
653 |
75.1 |
$ |
404 |
44.9 |
|
$ |
655 |
75.4 |
$ |
528 |
63.4 |
(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
|
|
Years Ended February 28 or 29 |
||||||||||||||||||
(In millions) |
|
2025 |
|
|
|
2024 |
|
|
Change |
|
|
2025 |
|
|
|
2024 |
|
|
Change |
||
Compensation and benefits: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits, excluding share-based compensation expense |
$ |
328.6 |
|
|
$ |
304.1 |
|
|
8.0 |
% |
|
$ |
1,289.7 |
|
|
$ |
1,226.8 |
|
|
5.1 |
% |
Share-based compensation expense |
|
25.4 |
|
|
|
27.6 |
|
|
(7.7 |
)% |
|
|
126.9 |
|
|
|
114.1 |
|
|
11.3 |
% |
Total compensation and benefits (2) |
$ |
354.0 |
|
|
$ |
331.7 |
|
|
6.7 |
% |
|
$ |
1,416.6 |
|
|
$ |
1,340.9 |
|
|
5.6 |
% |
Occupancy costs |
|
66.5 |
|
|
|
67.3 |
|
|
(1.1 |
)% |
|
|
285.3 |
|
|
|
271.4 |
|
|
5.1 |
% |
Advertising expense |
|
72.1 |
|
|
|
62.8 |
|
|
14.8 |
% |
|
|
260.7 |
|
|
|
264.4 |
|
|
(1.4 |
)% |
Other overhead costs (3) |
|
117.9 |
|
|
|
119.1 |
|
|
(1.0 |
)% |
|
|
472.8 |
|
|
|
409.7 |
|
|
15.4 |
% |
Total SG&A expenses |
$ |
610.5 |
|
|
$ |
580.9 |
|
|
5.1 |
% |
|
$ |
2,435.4 |
|
|
$ |
2,286.4 |
|
|
6.5 |
% |
SG&A as a % of gross profit |
|
91.4 |
% |
|
|
99.1 |
% |
|
(7.7 |
)% |
|
|
84.0 |
% |
|
|
84.3 |
% |
|
(0.3 |
)% |
(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
|
|
Years Ended February 28 or 29 |
||||||||||||||||||
(In millions) |
|
2025 |
|
% (1) |
|
2024 |
|
% (1) |
|
|
2025 |
|
% (1) |
|
2024 |
|
% (1) |
||||
Interest margin: |
|
|
|
|
|
|
|
|
|
||||||||||||
Interest and fee income |
$ |
467.6 |
|
10.6 |
|
$ |
433.1 |
|
9.9 |
|
|
$ |
1,853.9 |
|
10.5 |
|
$ |
1,677.4 |
|
9.7 |
|
Interest expense |
|
(194.0 |
) |
(4.4 |
) |
|
(173.9 |
) |
(4.0 |
) |
|
|
(763.2 |
) |
(4.3 |
) |
|
(638.7 |
) |
(3.7 |
) |
Total interest margin |
|
273.6 |
|
6.2 |
|
|
259.2 |
|
5.9 |
|
|
|
1,090.7 |
|
6.2 |
|
|
1,038.7 |
|
6.0 |
|
Provision for loan losses |
|
(68.3 |
) |
(1.5 |
) |
|
(71.6 |
) |
(1.6 |
) |
|
|
(334.7 |
) |
(1.9 |
) |
|
(310.5 |
) |
(1.8 |
) |
Total interest margin after provision for loan losses |
|
205.3 |
|
4.6 |
|
|
187.6 |
|
4.3 |
|
|
|
756.0 |
|
4.3 |
|
|
728.2 |
|
4.2 |
|
Total direct expenses |
|
(46.0 |
) |
(1.0 |
) |
|
(40.3 |
) |
(0.9 |
) |
|
|
(174.3 |
) |
(1.0 |
) |
|
(159.9 |
) |
(0.9 |
) |
CarMax Auto Finance income |
$ |
159.3 |
|
3.6 |
|
$ |
147.3 |
|
3.4 |
|
|
$ |
581.7 |
|
3.3 |
|
$ |
568.3 |
|
3.3 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total average managed receivables |
$ |
17,684.0 |
|
|
$ |
17,424.9 |
|
|
|
$ |
17,683.9 |
|
|
$ |
17,313.2 |
|
|
||||
Net loans originated |
$ |
1,886.2 |
|
|
$ |
1,779.0 |
|
|
|
$ |
8,254.5 |
|
|
$ |
8,270.0 |
|
|
||||
Net penetration rate |
|
42.3 |
% |
|
|
42.3 |
% |
|
|
|
42.7 |
% |
|
|
42.9 |
% |
|
||||
Weighted average contract rate |
|
11.1 |
% |
|
|
11.5 |
% |
|
|
|
11.3 |
% |
|
|
11.2 |
% |
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
Ending allowance for loan losses |
$ |
458.7 |
|
|
$ |
482.8 |
|
|
|
$ |
458.7 |
|
|
$ |
482.8 |
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
Warehouse facility information: |
|
|
|
|
|
|
|
|
|
||||||||||||
Ending funded receivables |
$ |
3,877.0 |
|
|
$ |
3,744.6 |
|
|
|
$ |
3,877.0 |
|
|
$ |
3,744.6 |
|
|
||||
Ending unused capacity |
$ |
2,223.0 |
|
|
$ |
2,055.4 |
|
|
|
$ |
2,223.0 |
|
|
$ |
2,055.4 |
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
(1) |
Annualized percentage of total average managed receivables. |
Earnings Highlights |
|||||||||||||||||
|
Three Months Ended
|
|
Years Ended February 28 or 29 |
||||||||||||||
(In millions except per share data) |
|
2025 |
|
|
2024 |
|
Change |
|
|
2025 |
|
|
2024 |
|
Change |
||
Net earnings |
$ |
89.9 |
|
$ |
50.3 |
|
78.8 |
% |
|
$ |
500.6 |
|
$ |
479.2 |
|
4.5 |
% |
Diluted weighted average shares outstanding |
|
154.7 |
|
|
158.2 |
|
(2.2 |
)% |
|
|
156.1 |
|
|
158.7 |
|
(1.7 |
)% |
Net earnings per diluted share |
$ |
0.58 |
|
$ |
0.32 |
|
81.3 |
% |
|
$ |
3.21 |
|
$ |
3.02 |
|
6.3 |
% |
Conference Call Information
We will host a conference call for investors at 9:00 a.m. ET today, April 10, 2025. 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.
A replay of the webcast will be available on the company’s website at investors.carmax.com through June 19, 2025, 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.
First Quarter Fiscal 2026 Earnings Release Date
We currently plan to release results for the first quarter ending May 31, 2025, on Friday, June 20, 2025, 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 2025.
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, 2025, CarMax sold approximately 790,000 used vehicles and 540,000 wholesale vehicles at its auctions. In addition, CarMax Auto Finance originated more than
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 expected 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,” “could,” “enable,” “estimate,” “expect,” “intend,” “may,” “outlook,” “plan,” “positioned,” “predict,” “should,” “target,” “will” and other 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 inflationary pressures, fluctuating interest rates, tariffs, and the potential impact of international events. - 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 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 receivable 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.
For more details on factors that could affect expectations, see our Annual Report on Form 10-K for the fiscal year ended February 29, 2024, and our quarterly or current reports as filed with or furnished to the
CARMAX, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) |
|||||||||||||||||||
|
Three Months Ended February 28 or 29 |
|
Years Ended February 28 or 29 |
||||||||||||||||
(In thousands except per share data) |
|
2025 |
%(1) |
|
2024 |
|
%(1) |
|
|
2025 |
|
%(1) |
|
|
2024 |
|
|
%(1) |
|
SALES AND OPERATING REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Used vehicle sales |
$ |
4,836,239 |
80.6 |
$ |
4,497,588 |
|
79.9 |
|
|
$ |
21,079,654 |
|
80.0 |
|
$ |
20,922,279 |
|
|
78.8 |
Wholesale vehicle sales |
|
1,007,914 |
16.8 |
|
974,260 |
|
17.3 |
|
|
|
4,587,457 |
|
17.4 |
|
|
4,975,802 |
|
|
18.8 |
Other sales and revenues |
|
158,970 |
2.6 |
|
154,755 |
|
2.8 |
|
|
|
686,309 |
|
2.6 |
|
|
637,959 |
|
|
2.4 |
NET SALES AND OPERATING REVENUES |
|
6,003,123 |
100.0 |
|
5,626,603 |
|
100.0 |
|
|
|
26,353,420 |
|
100.0 |
|
|
26,536,040 |
|
|
100.0 |
COST OF SALES: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Used vehicle cost of sales |
|
4,412,173 |
73.5 |
|
4,110,275 |
|
73.1 |
|
|
|
19,256,483 |
|
73.1 |
|
|
19,170,320 |
|
|
72.2 |
Wholesale vehicle cost of sales |
|
883,411 |
14.7 |
|
844,844 |
|
15.0 |
|
|
|
4,029,876 |
|
15.3 |
|
|
4,419,044 |
|
|
16.7 |
Other cost of sales |
|
39,646 |
0.7 |
|
85,293 |
|
1.5 |
|
|
|
169,160 |
|
0.6 |
|
|
233,467 |
|
|
0.9 |
TOTAL COST OF SALES |
|
5,335,230 |
88.9 |
|
5,040,412 |
|
89.6 |
|
|
|
23,455,519 |
|
89.0 |
|
|
23,822,831 |
|
|
89.8 |
GROSS PROFIT |
|
667,893 |
11.1 |
|
586,191 |
|
10.4 |
|
|
|
2,897,901 |
|
11.0 |
|
|
2,713,209 |
|
|
10.2 |
CARMAX AUTO FINANCE INCOME |
|
159,314 |
2.7 |
|
147,267 |
|
2.6 |
|
|
|
581,749 |
|
2.2 |
|
|
568,271 |
|
|
2.1 |
Selling, general, and administrative expenses |
|
610,500 |
10.2 |
|
580,885 |
|
10.3 |
|
|
|
2,435,404 |
|
9.2 |
|
|
2,286,378 |
|
|
8.6 |
Depreciation and amortization |
|
65,044 |
1.1 |
|
61,169 |
|
1.1 |
|
|
|
255,321 |
|
1.0 |
|
|
239,028 |
|
|
0.9 |
Interest expense |
|
24,140 |
0.4 |
|
31,434 |
|
0.6 |
|
|
|
107,941 |
|
0.4 |
|
|
124,750 |
|
|
0.5 |
Other expense (income) |
|
9,119 |
0.2 |
|
(5,541 |
) |
(0.1 |
) |
|
|
11,624 |
|
— |
|
|
(10,271 |
) |
|
— |
Earnings before income taxes |
|
118,404 |
2.0 |
|
65,511 |
|
1.2 |
|
|
|
669,360 |
|
2.5 |
|
|
641,595 |
|
|
2.4 |
Income tax provision |
|
28,538 |
0.5 |
|
15,243 |
|
0.3 |
|
|
|
168,804 |
|
0.6 |
|
|
162,391 |
|
|
0.6 |
NET EARNINGS |
$ |
89,866 |
1.5 |
$ |
50,268 |
|
0.9 |
|
|
$ |
500,556 |
|
1.9 |
|
$ |
479,204 |
|
|
1.8 |
WEIGHTED AVERAGE COMMON SHARES: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
|
153,667 |
|
|
157,821 |
|
|
|
|
155,330 |
|
|
|
|
158,216 |
|
|
|
|
Diluted |
|
154,704 |
|
|
158,228 |
|
|
|
|
156,061 |
|
|
|
|
158,707 |
|
|
|
|
NET EARNINGS PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
$ |
0.58 |
|
$ |
0.32 |
|
|
|
$ |
3.22 |
|
|
|
$ |
3.03 |
|
|
|
|
Diluted |
$ |
0.58 |
|
$ |
0.32 |
|
|
|
$ |
3.21 |
|
|
|
$ |
3.02 |
|
|
|
|
(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 29 |
||
(In thousands except share data) |
|
2025 |
|
|
2024 |
|
ASSETS |
|
|
|
|||
|
CURRENT ASSETS: |
|
|
|
||
|
Cash and cash equivalents |
$ |
246,960 |
|
$ |
574,142 |
|
Restricted cash from collections on auto loans receivable |
|
559,118 |
|
|
506,648 |
|
Accounts receivable, net |
|
188,733 |
|
|
221,153 |
|
Inventory |
|
3,934,622 |
|
|
3,678,070 |
|
Other current assets |
|
148,203 |
|
|
246,581 |
|
TOTAL CURRENT ASSETS |
|
5,077,636 |
|
|
5,226,594 |
|
Auto loans receivable, net |
|
17,242,789 |
|
|
17,011,844 |
|
Property and equipment, net |
|
3,841,833 |
|
|
3,665,530 |
|
Deferred income taxes |
|
140,332 |
|
|
98,790 |
|
Operating lease assets |
|
493,355 |
|
|
520,717 |
|
Goodwill |
|
141,258 |
|
|
141,258 |
|
Other assets |
|
467,003 |
|
|
532,064 |
|
TOTAL ASSETS |
$ |
27,404,206 |
|
$ |
27,196,797 |
|
|
|
|
|
||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|||
|
CURRENT LIABILITIES: |
|
|
|
||
|
Accounts payable |
$ |
977,845 |
|
$ |
933,708 |
|
Accrued expenses and other current liabilities |
|
529,926 |
|
|
523,971 |
|
Accrued income taxes |
|
87,526 |
|
|
— |
|
Current portion of operating lease liabilities |
|
59,335 |
|
|
57,161 |
|
Current portion of long-term debt |
|
16,821 |
|
|
313,282 |
|
Current portion of non-recourse notes payable |
|
526,518 |
|
|
484,167 |
|
TOTAL CURRENT LIABILITIES |
|
2,197,971 |
|
|
2,312,289 |
|
Long-term debt, excluding current portion |
|
1,570,296 |
|
|
1,602,355 |
|
Non-recourse notes payable, excluding current portion |
|
16,567,044 |
|
|
16,357,301 |
|
Operating lease liabilities, excluding current portion |
|
481,963 |
|
|
496,210 |
|
Other liabilities |
|
343,944 |
|
|
354,902 |
|
TOTAL LIABILITIES |
|
21,161,218 |
|
|
21,123,057 |
|
|
|
|
|
||
|
Commitments and contingent liabilities |
|
|
|
||
|
SHAREHOLDERS’ EQUITY: |
|
|
|
||
|
Common stock, |
|
76,660 |
|
|
78,806 |
|
Capital in excess of par value |
|
1,891,012 |
|
|
1,808,746 |
|
Accumulated other comprehensive income |
|
3,080 |
|
|
59,279 |
|
Retained earnings |
|
4,272,236 |
|
|
4,126,909 |
|
TOTAL SHAREHOLDERS’ EQUITY |
|
6,242,988 |
|
|
6,073,740 |
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
27,404,206 |
|
$ |
27,196,797 |
|
|
|
|
|
||
CARMAX, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
|||||||
|
Years Ended February 28 or 29 |
||||||
(In thousands) |
|
2025 |
|
|
|
2024 |
|
OPERATING ACTIVITIES: |
|
|
|
||||
Net earnings |
$ |
500,556 |
|
|
$ |
479,204 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
294,801 |
|
|
|
260,414 |
|
Share-based compensation expense |
|
134,709 |
|
|
|
119,720 |
|
Provision for loan losses |
|
334,667 |
|
|
|
310,516 |
|
Provision for cancellation reserves |
|
97,701 |
|
|
|
80,311 |
|
Deferred income tax benefit |
|
(23,724 |
) |
|
|
(4,800 |
) |
Other |
|
20,781 |
|
|
|
9,252 |
|
Net decrease (increase) in: |
|
|
|
||||
Accounts receivable, net |
|
32,420 |
|
|
|
77,630 |
|
Inventory |
|
(256,552 |
) |
|
|
48,072 |
|
Other current assets |
|
109,162 |
|
|
|
39,939 |
|
Auto loans receivable, net |
|
(565,612 |
) |
|
|
(980,569 |
) |
Other assets |
|
(19,230 |
) |
|
|
(13,902 |
) |
Net increase (decrease) in: |
|
|
|
||||
Accounts payable, accrued expenses and other |
|
|
|
||||
current liabilities and accrued income taxes |
|
71,714 |
|
|
|
118,511 |
|
Other liabilities |
|
(106,954 |
) |
|
|
(85,681 |
) |
NET CASH PROVIDED BY OPERATING ACTIVITIES |
|
624,439 |
|
|
|
458,617 |
|
INVESTING ACTIVITIES: |
|
|
|
||||
Capital expenditures |
|
(467,939 |
) |
|
|
(465,307 |
) |
Proceeds from disposal of property and equipment |
|
333 |
|
|
|
1,351 |
|
Purchases of investments |
|
(10,738 |
) |
|
|
(6,193 |
) |
Sales and returns of investments |
|
17,342 |
|
|
|
3,151 |
|
NET CASH USED IN INVESTING ACTIVITIES |
|
(461,002 |
) |
|
|
(466,998 |
) |
FINANCING ACTIVITIES: |
|
|
|
||||
Proceeds from issuances of long-term debt |
|
522,800 |
|
|
|
134,600 |
|
Payments on long-term debt |
|
(836,622 |
) |
|
|
(246,067 |
) |
Cash paid for debt issuance costs |
|
(21,253 |
) |
|
|
(21,633 |
) |
Payments on finance lease obligations |
|
(16,536 |
) |
|
|
(16,674 |
) |
Issuances of non-recourse notes payable |
|
12,968,491 |
|
|
|
12,380,050 |
|
Payments on non-recourse notes payable |
|
(12,715,705 |
) |
|
|
(11,873,169 |
) |
Repurchase and retirement of common stock |
|
(428,453 |
) |
|
|
(94,086 |
) |
Equity issuances |
|
73,741 |
|
|
|
44,766 |
|
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES |
|
(453,537 |
) |
|
|
307,787 |
|
(Decrease) increase in cash, cash equivalents, and restricted cash |
|
(290,100 |
) |
|
|
299,406 |
|
Cash, cash equivalents, and restricted cash at beginning of year |
|
1,250,410 |
|
|
|
951,004 |
|
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF YEAR |
$ |
960,310 |
|
|
$ |
1,250,410 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250410591338/en/
Investors:
David Lowenstein, Vice President, Investor Relations
investor_relations@carmax.com, (804) 747-0422 x7865
Media:
pr@carmax.com, (855) 887-2915
Source: CarMax, Inc.
FAQ
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