- CarMax, Inc. (KMX) shares plummeted nearly **20%** on **September 25, 2025**, after the release of its second-quarter 2026 financial results.  **[1368493_14e64bcb17ef470ea2aab955b8f301d5_0]** 
- The decline was primarily attributed to a **$142 million loan loss provision** within its CarMax Auto Finance (CAF) segment, representing a sequential increase of nearly **40%** and a year-over-year jump of approximately **24%**.  **[1368493_14e64bcb17ef470ea2aab955b8f301d5_0]** 
- This elevated provision contradicted management's prior assurance during the Q1 2025 earnings call on June 20, 2025, that the **$101.7 million provision** in Q1 would likely be the "high watermark" for the year.  **[1368493_14e64bcb17ef470ea2aab955b8f301d5_0]** 
- National shareholders rights firm Hagens Berman has initiated an investigation into whether CarMax may have misled investors about the quality of CAF's loan portfolio.  **[1368493_14e64bcb17ef470ea2aab955b8f301d5_0]**

CarMax (KMX) Shares Decline Following Q2 2026 Results and Loan Loss Provision Surge

- CarMax, Inc. (KMX) shares plummeted nearly **20%** on **September 25, 2025**, following the release of its second-quarter 2026 financial results, driven by a significant increase in the provision for loan losses.  **[1368493_47022b74635e4c19b0237389d2ef6cc0_0]** 
- The company reported a **$142 million loan loss provision** in Q2 2026, marking a sequential increase of nearly **40%** and a year-over-year jump of approximately **24%**.  **[1368493_47022b74635e4c19b0237389d2ef6cc0_0]** 
- This surge contradicted management's previous assurance during the Q1 2025 earnings call that the first quarter's provision would likely be the "high watermark" for the year.  **[1368493_47022b74635e4c19b0237389d2ef6cc0_0]** 
- Hagens Berman has initiated an investigation into whether CarMax may have misled investors about the quality of its CarMax Auto Finance (CAF) loan portfolio.  **[1368493_47022b74635e4c19b0237389d2ef6cc0_0]**

Morgan Stanley China A Share Fund (CAF)