CarMax, Inc. is the largest retailer of used vehicles in the United States, operating through two main segments: CarMax Sales Operations and CarMax Auto Finance (CAF) . The company specializes in the retail and wholesale sales of used vehicles, along with related products and services such as extended protection plans and vehicle repair services . CarMax also offers financing options through its CAF segment, which provides competitive financing solely to customers purchasing retail vehicles from CarMax .
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CarMax Sales Operations - Encompasses all aspects of auto merchandising and service operations, including retail sales of used vehicles, wholesale vehicle sales, and related products and services such as extended protection plans, vehicle repair services, and advertising and subscription revenues.
- Retail Sales of Used Vehicles - Offers a wide selection of used vehicles for purchase by consumers.
- Wholesale Vehicle Sales - Facilitates the sale of vehicles to other dealers through auctions.
- Extended Protection Plans (EPPs) - Provides additional coverage options for vehicle protection.
- Vehicle Repair Services - Offers maintenance and repair services for vehicles.
- Advertising and Subscription Revenues - Generates income through advertising and subscription-based services.
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CarMax Auto Finance (CAF) - Provides financing options exclusively to customers buying retail vehicles from CarMax, capturing additional profits and cash flows by offering competitive financing solutions.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
William D. Nash ExecutiveBoard | President, Chief Executive Officer, Director | None | Joined CarMax in 1997; became CEO in 2016; previously held roles in merchandising, HR, and administrative services. | View Report → |
Charles Joseph Wilson Executive | Executive Vice President, Chief Operating Officer | None | Joined CarMax in 1995; promoted to COO in 2022. | |
Darren C. Newberry Executive | Senior Vice President, Store and CEC Execution | None | Senior Vice President responsible for store and customer experience center execution. | |
Diane L. Cafritz Executive | Executive Vice President, Human Resources, General Counsel, Chief Compliance Officer | None | Joined CarMax in 2003; promoted to EVP in 2022; leads HR, legal, and compliance functions. | |
Enrique N. Mayor-Mora Executive | Executive Vice President, Chief Financial Officer | None | CFO of CarMax; oversees financial reporting and compliance; certifications date back to at least 2023. | |
James Lyski Executive | Executive Vice President, Chief Innovation and Strategy Officer | None | Joined CarMax in 2014 as CMO; transitioned to Chief Innovation and Strategy Officer in 2023. | |
Jon G. Daniels Executive | Senior Vice President, CarMax Auto Finance Operations | None | Senior Vice President overseeing CarMax Auto Finance; mentioned in Q3 FY2025 earnings call. | |
Shamim Mohammad Executive | Executive Vice President, Chief Information and Technology Officer | None | Joined CarMax in 2012; promoted to EVP in 2021; oversees IT and technology strategy. | |
David W. McCreight Board | Director | None | Director since 2018; former CEO of Anthropologie; expertise in omnichannel retail strategies. | |
Marcella Shinder Board | Director | Advisory Director at Charlesbank Capital Partners; Founding Member of Brilliant Friends Investing | Director since 2015; expertise in marketing, digital transformation, and advanced technologies. | |
Mark F. O’Neil Board | Director | None | Director since 2019; former CEO of Dealertrack; expertise in automotive retail technology. | |
Mitchell D. Steenrod Board | Director | None | Director since 2011; former CFO of Pilot Travel Centers; brings financial expertise to the Board. | |
Pietro Satriano Board | Director | Director at Metro Inc.; Executive Advisor at JMPS Advisory LLC | Director since 2018; former CEO of US Foods; expertise in technology and e-commerce solutions. | |
Shira Goodman Board | Director | Director at CBRE Group, Inc.; Advisory Director at Charlesbank Capital Partners | Director since 2007; former CEO of Staples; expertise in digital transformation and ESG. | |
Sona Chawla Board | Director | Chief Growth and Innovation Officer at CDW Corporation | Director since 2017; former President of Kohl’s; expertise in technology and digital transformation. | |
Thomas J. Folliard Board | Non-Executive Chair of the Board | Board Member at PulteGroup, Inc. | Former CEO of CarMax (2006-2016); led significant growth during his tenure; now serves as Non-Executive Chair. |
- Your credit penetration remains in the low 70% range, while an online peer has expanded theirs to the mid-80s; what specific constraints are preventing you from increasing your credit penetration to similar levels, and what strategies are you implementing to address this gap?
- With worsening trends in the broader auto loan market and Tier 3 penetration down to about 7%, how are you adjusting your underwriting standards and business planning to mitigate potential risks from a weakening credit environment, and what further cost efficiencies can you realize?
- Given the current headwinds in credit quality and increased loan loss provisions, does it make strategic sense to push forward with your full-spectrum lending initiative now, or should you reconsider its timing to avoid potential negative impacts?
- Can you provide more details on how you are rethinking or retooling your reconditioning operations to improve efficiencies and margins, and what specific actions are being taken to enhance profitability in this area?
- Regarding customers who are not procuring financing through CarMax and instead use third-party lenders or pay cash, what strategies do you have to better capture this higher-end, rate-sensitive customer segment and increase your overall financing penetration?
Research analysts who have asked questions during CARMAX earnings calls.
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Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Edmunds Holding Company | 2021 | CarMax acquired Edmunds Holding Company in 2021 with an implied enterprise value of $404 million using a combination of cash and stock (776,097 shares), following an initial $50 million minority investment that was later remeasured, and the acquisition was completed in June 2021 after being announced in April 2021. This deal was strategically aimed at enhancing CarMax's digital capabilities and reinforcing its position in the used auto ecosystem by integrating Edmunds’ technology, content, and talent. |
Recent press releases and 8-K filings for KMX.
- CarMax shares plunged by ~20% after its Q2 2026 earnings revealed a $142 million provision for loan losses, a ~40% sequential and ~24% year-over-year increase.
- This surprise provision reversed earlier management guidance that Q1’s $101.7 million reserve would be the “high watermark” for the year.
- Hagens Berman has opened an investigation into whether CarMax misled investors regarding the quality of its CarMax Auto Finance loan portfolio.
- The elevated reserve was split evenly between older-vintage and newly originated loans, reflecting emerging credit deterioration noted on the earnings call.
- CarMax reported a $142 million provision for loan losses in its CarMax Auto Finance segment, driving shares down nearly 20% on September 25, 2025.
- Shareholders rights firm Hagens Berman has opened an investigation into whether CarMax misled investors about its loan portfolio quality after prior assurances that Q1’s $101.7 million provision would be the year’s “high watermark”.
- The company’s CFO attributed the increased charge to deteriorating credit trends, noting the provision was split evenly between older vintages and newly originated loans.
- CarMax’s NYSE:KMX shares fell ~20% ($11.45) on September 25, 2025 after Q2 2026 results revealed a $142 million provision for loan losses in its CarMax Auto Finance segment.
- The 40% sequential and 24% year-over-year increase in provisioning was attributed equally to older vintages and new originations amid worsening credit trends.
- Shareholders rights firm Hagens Berman launched an investigation into whether CarMax misled investors about the quality of the CAF loan portfolio following the surprise provisioning surge.
- Net sales & operating revenues of $6.595 B, down 6.0% YoY; gross profit of $717.7 M (-5.6%); and EPS of $0.64, down 24.7% YoY.
- Retail used unit sales fell 5.4% YoY; wholesale unit sales down 2.2%.
- CarMax Auto Finance income of $102.6 M, down 11.2% YoY; net interest margin expanded 50 bps to 6.6%.
- Announced incremental SG&A reductions of at least $150 M over 18 months and returned $380 M via share repurchases YTD, maintaining an accelerated buyback pace.
- Net leverage ratio of 1.5x, within target range, and YTD adjusted operating cash flow of $1.022 B.
- Total sales were $6.6 billion, down 6% YoY; retail units declined 5.4% and ASP fell to $26,000 (-$250), with gross profit per used unit in line with historical levels.
- Net EPS of $0.64 vs $0.85 a year ago; total gross profit of $718 million (-6%), SG&A at $601 million (-2%), lifting SG&A/GP to 84% (+350 bps).
- CAF originated over $2 billion with 42.6% penetration (+60 bps); CAF income of $103 million (-$13 million), $142 million provision, and executed a $900 million non-prime securitization yielding $25–30 million gain and $40–45 million servicing income.
- Management targets mid-single-digit retail unit growth and a high-teens EPS CAGR, launched the “Wanna Drive” campaign, and aims for $150 million in SG&A reductions over 18 months to enhance pricing and reinvest in growth.
- Stock tumbled 6% to $53.26 after Q2 revenue of $6.59 billion missed expectations of $7.02 billion.
- Retail used vehicle unit sales declined 5.4%, wholesale sales fell 2.2%, and total vehicle acquisitions dropped 2.4% year-over-year.
- Leverage remains high with a debt-to-equity ratio of 3.07, while a current ratio of 2.39 provides liquidity; an Altman Z-Score of 1.78 signals distress risk.
- Management unveiled a “Wanna Drive?” omni-channel brand campaign and plans to cut $150 million in SG&A over 18 months to boost market share above 5%.
- Shares have slid 30% year-to-date, with a further 10% premarket drop following the earnings surprise.
- Second quarter combined used vehicle unit sales totaled 338,031, down 4.1% year-over-year; retail used unit sales were 199,729 (–5.4%) with comparable store sales down 6.3%, and wholesale units 138,302 (–2.2%).
- Total gross profit decreased 5.6% to $717.7 million, with retail gross profit per used unit of $2,216, wholesale per unit $993, and EPP margin per retail unit $576, in line with prior year.
- SG&A expenses declined 1.6% to $601.1 million, while CarMax Auto Finance income fell 11.2% to $102.6 million due to higher loan loss provisions; the allowance for loan losses rose to $507.3 million (3.02% of loans).
- Net earnings per diluted share were $0.64 versus $0.85 a year ago; the company repurchased $180 million in common stock, leaving $1.56 billion remaining under authorization.
- AGM 2025 approved the election of 10 directors, ratified KPMG LLP as auditor, passed the advisory vote on executive compensation, and rejected the special-meeting rights proposal.
- CarMax repurchased $425 million of stock in FY 2025 and $200 million in Q1 FY 2026, and expects buybacks to step up over last year’s level.
- Capital deployment priorities remain: operations and core growth, followed by new investments (partnerships/M&A), then returning free cash to shareholders.
- Management sees tariffs having muted impact so far, with no parts-price inflation to date and potential used-car demand support as new-car prices rise.
- Diluted EPS rose 42.3% to $1.38, with net earnings of $210.4 million versus $152.4 million a year ago.
- Retail used unit sales increased 9.0% (comparable store comps +8.1%), driving a 7.5% gain in retail revenues.
- Total gross profit grew 12.8% to $893.6 million, including a record $2,407 gross profit per retail unit.
- CarMax Auto Finance income declined 3.6% to $141.7 million, as higher provisions for loan losses outweighed net interest margin growth.
- Accelerated share repurchases of $199.8 million in Q1, leaving $1.74 billion available under authorization.
- Earnings per diluted share rose to $0.58, marking an 81.3% increase from the prior year.
- Total revenues reached $6.0 billion, up ~7% year-over-year, driven by strong unit sales and operational efficiencies.
- Achieved a record retail gross profit per used unit of $2,322 alongside consistent double-digit EPS growth.
- Retail used vehicle unit sales increased by 6.2% with wholesale unit sales up by 3.1%, reinforcing robust demand.
- CarMax Auto Finance income climbed 8.2% to $159.3 million, further supporting performance.
- Enhanced digital tools, including an AI-powered virtual assistant and streamlined online appraisal processes, bolstered customer experience and sourcing efficiency.
- A robust share repurchase program saw nearly $99 million repurchased, underscoring strong financial management.