CARMAX (KMX) Company Report

On November 6, 2025, CEO Bill Nash was fired, effective December 1 2025, sending CarMax shares down as much as 23%.
The company forecasted Q3 2026 comparable store unit sales to decline 8%–12% and net EPS of $0.18–$0.36, below analysts’ $0.69 estimate.
In Q2 2026, net EPS fell 24% y/y, retail used unit sales dropped 5.4%, and comparable store used sales declined 6.3%.
A securities class action is pending, alleging CarMax misled investors about its growth prospects during June 20–Sept 24 2025.

Nov 11, 2025, 1:31 PM

Press Release

CarMax fires CEO amid weak preliminary Q3 2026 results

KMX

CEO Change

Profit Warning

Legal Proceedings

CarMax announced that CEO Bill Nash will be terminated effective December 1, 2025, sending shares down 23% intraday.
Preliminary Q3 2026 results forecast a 8%–12% decline in comparable store unit sales and net EPS of $0.18–$0.36 versus analysts’ $0.69 expectation.
Hagens Berman has filed a securities class action for investors who purchased CarMax shares between June 20, 2025, and September 24, 2025, alleging misrepresentation of growth prospects.
Q2 2026 results revealed a 24% drop in net EPS, 5.4% decline in retail used unit sales, 6.3% fall in comparable store used sales, and an 11.02% decrease in CAF revenue due to a $142 million loan loss provision.

Nov 7, 2025, 3:35 PM

Press Release

CarMax appoints interim CEO amid profit warnings

KMX

CEO Change

Profit Warning

Layoffs

CEO Bill Nash to step down on December 1, 2025; David McCreight named interim CEO.
Tom Folliard, CEO from 2006–2016, appointed interim executive chair to oversee the transition.
Changes follow an expected 8–12% drop in Q3 2025 used car unit sales and EPS forecasts below analysts’ estimates, with a ~50% YTD stock decline.
Over 350 Customer Experience Center roles eliminated; affected employees to receive severance and career support.

Nov 7, 2025, 12:09 AM

Morningstar

CarMax appoints interim CEO and updates Q3 FY26 guidance

KMX

CEO Change

Management Change

Guidance Update

David McCreight named Interim President and CEO and Tom Folliard appointed Interim Executive Chair as Bill Nash steps down effective December 1, 2025; permanent CEO search underway.
CarMax projects Q3 FY26 comparable store used unit sales to decline 8%–12% and EPS of $0.18–$0.36, including $0.09 of non-recurring charges.
Outlook reflects a retail unit sales decline, sharp wholesale depreciation, and a material increase in marketing spend for a new brand positioning launch.
Full Q3 FY26 results scheduled for release on December 18, 2025, before market open.

Nov 6, 2025, 11:55 AM

8-K

CarMax subject to class action over alleged misstatements and Q2 FY2026 declines

KMX

Legal Proceedings

Profit Warning

Demand Weakening

The Portnoy Law Firm advises a class action on behalf of CarMax investors who bought securities between March 5, 2024 and October 8, 2025, with a lead plaintiff motion deadline of January 2, 2025.
The suit alleges CarMax overstated demand and failed to reserve properly for its car loan portfolio, as the spike in demand was driven by U.S. tariff announcements, not sustainable growth.
On September 25, 2025, CarMax reported Q2 FY2026 net income of $95.4 million (down from $132.8 million) and unit sales declines of 5.4% (retail used), 6.3% (comparable store used), and 2.2% (wholesale).
Following the results, CarMax’s stock fell approximately 20%, dropping from $57.05 to $45.60 per share.

Nov 5, 2025, 11:30 PM

Press Release

CarMax faces securities class action after Q2 2026 earnings miss

KMX

Legal Proceedings

Profit Warning

CarMax shares plunged 20% on Sept. 25, 2025 after reporting Q2 2026 results featuring a 24% drop in net EPS, a 5.4% decrease in retail used unit sales, and a $142 million CAF loan loss provision.
A securities fraud class action (Cap v. CarMax, Inc.) was filed alleging CarMax misled investors between June 20 and Sept. 24, 2025 about its business model and growth prospects.
The complaint claims management touted double-digit Q1 2026 EPS growth and failed to disclose that results were driven by consumers pulling forward purchases to avoid tariffs.
Lead plaintiff deadline is Jan. 2, 2026, with Hagens Berman investigating potential intentional misstatements by CarMax management.

Nov 5, 2025, 1:38 PM

Press Release

CarMax Faces Securities Class Action After Q2 2026 Results

KMX

Legal Proceedings

Profit Warning

CarMax is the target of a securities fraud class action for investors who bought its shares between June 20 and September 24, 2025, after its stock fell nearly 20% on poor Q2 2026 results.
In Q2 2026, CarMax’s net EPS fell 24% year-over-year, retail used unit sales decreased 5.4%, and comparable store used unit sales declined 6.3%.
CarMax Auto Finance reported an unexpected $142 million loan loss provision, leading to an 11.02% year-over-year revenue decline and a sequential provision increase of nearly 40%.
On September 25, 2025, CarMax shares dropped by $11.45, a roughly 20% one-day decline.

Nov 4, 2025, 10:02 PM

Press Release

CarMax reports Q2 2026 $142M loan loss provision and share decline

KMX

Profit Warning

Legal Proceedings

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.

Oct 20, 2025, 3:08 PM

Press Release

CarMax posts $142M loan loss provision, shares tumble amid investor probe

KMX

Legal Proceedings

Accounting Changes

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.

Oct 14, 2025, 7:34 PM

Press Release

CarMax reports unexpected $142M loan loss provision, shares tumble

KMX

Legal Proceedings

Profit Warning

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.

Oct 2, 2025, 9:14 PM

Press Release

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