- 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)