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.
Brian Nagel
Oppenheimer & Co. Inc.
7 questions for KMX
Christopher Pierce
Needham & Company
7 questions for KMX
David Whiston
Morningstar, Inc.
7 questions for KMX
Rajat Gupta
JPMorgan Chase & Co.
7 questions for KMX
Sharon Zackfia
William Blair & Company
7 questions for KMX
David Bellinger
Mizuho Securities USA LLC
6 questions for KMX
Michael Montani
Evercore ISI
6 questions for KMX
Christopher Bottiglieri
BNP Paribas
4 questions for KMX
Jeff Lick
Stephens Inc.
4 questions for KMX
Scot Ciccarelli
Truist Securities
4 questions for KMX
Craig Kennison
Robert W. Baird & Co. Incorporated
3 questions for KMX
John Murphy
Bank of America
3 questions for KMX
Seth Basham
Wedbush Securities
3 questions for KMX
Christopher James Bottiglieri
BNP Paribas Exane
2 questions for KMX
Jeffrey Francis Lick
Stephens Inc.
2 questions for KMX
John Healy
Northcoast Research
2 questions for KMX
Josh Young
Truist Securities
2 questions for KMX
Ian Davis
BNP Paribas
1 question for KMX
Josh Shang
Truist Securities
1 question for KMX
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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.