CARMAX (KMX) Company Report

Hagens Berman filed a securities class action against CarMax, covering investors who purchased between June 20 and November 5, 2025, with a January 2, 2026 lead plaintiff deadline.
The complaint claims CarMax touted robust Q1 2026 growth without disclosing a tariff-driven demand pull-forward and hid a $142 million loan loss provision jump due to rising credit risk.
On September 25, 2025, CarMax reported a 24% net EPS decline and the $142 million provision—sending shares down 20%; a CEO termination and weak Q3 guidance on November 6, 2025, triggered a further stock drop.

21 hours ago

Press Release

CarMax reports Q3 FY2026 results and leadership changes

KMX

Earnings

CEO Change

Share Buyback

Interim leadership transition: Board appointed David as Interim President and CEO, with an ongoing search for a permanent CEO following the departure of the prior CEO.
Sales and earnings decline: Q3 total sales of $5.8 B (–6.9% Y/Y) with retail unit sales down 8% and EPS of $0.43 (versus $0.81 a year ago), including a $0.08 restructuring charge.
Margins and CAF growth: Gross profit of $590 M (–13% Y/Y) and CarMax Auto Finance income of $175 M (+9% Y/Y) driven by full-spectrum lending and a gain on sale.
Cost management and buybacks: SG&A expenses of $581 M (+1% Y/Y); on track for $150 M exit‐rate savings by FY27; repurchased 4.6 M shares for $202 M, with $1.36 B authorization remaining.
Turnaround initiatives: Leadership is implementing pricing reductions, stepped‐up marketing, digital experience enhancements, and SG&A/COGS cuts to close the price gap and improve profitability.

5 days ago

Transcript

CarMax reports Q3 FY 2026 results

KMX

Earnings

Management Change

Share Buyback

CarMax posted net sales of $5.79 billion (down 6.9% YoY), net earnings of $62.2 million and EPS of $0.43 (down 50.4% and 46.9% YoY).
Retail gross profit decreased 12.9% to $590.0 million, while CarMax Auto Finance income rose 9.3% to $174.7 million.
The company repurchased $201.6 million of common stock during the quarter.
David McCreight was named Interim President & CEO and Tom Folliard Interim Executive Chair, effective December 1, 2025, following Bill Nash’s departure.
For Q4 FY 2026, CarMax expects to lower retail used unit margins and increase marketing spend to drive sales improvement.

5 days ago

Presentation

CarMax reports Q3 2026 results and interim leadership update

KMX

Earnings

CEO Change

Share Buyback

Board enacted immediate leadership change: Tom Folliard named Interim Executive Chair and David McCreight as Interim President and CEO, with search for a permanent CEO underway.
Q3 total sales of $5.8 billion (down 6.9% y/y); net earnings per diluted share of $0.43 vs. $0.81 a year ago; SG&A expenses of $581 million, on track for $150 million in exit run-rate savings by end of FY27.
Retail and finance metrics: used retail gross profit of $379 million (profit per unit $2,235); wholesale margin of $115 million ($899 per unit); CarMax Auto Finance income of $175 million (up 9% y/y); repurchased 4.6 million shares for $202 million.
Strategic priorities include narrowing the price gap via lower margins and increased marketing, comprehensive reviews to cut COGS and SG&A, enhancing the digital selling experience, and rolling out redesigned MaxCare plans nationwide in Q1 FY27.

5 days ago

Transcript

CarMax announces Q3 FY2026 results and interim leadership changes

KMX

Earnings

CEO Change

Guidance Update

CarMax appointed Tom Folliard as Interim Executive Chair and David Lowenstein as Interim President & CEO, with the board actively searching for a permanent CEO to drive sales, brand strength, and operations improvements.
In Q3 FY2026, CarMax Auto Finance originated $1.8 billion of loans, achieving 42.6% sales penetration and generating $175 million of CAF income; net interest margin was 6.2%, and loan loss reserves totaled $475 million (2.87% of portfolio).
For Q4, marketing spend is expected to be up year-over-year on a per-unit basis, while service margins will face seasonal pressure and the annualization of prior cost-coverage leverage.
Management is testing price reductions to narrow the GPU gap, alongside digital experience enhancements, SG&A and COGS initiatives, and expansion of regional reconditioning centers to boost competitiveness and operational efficiency.

5 days ago

Transcript

CarMax reports Q3 FY2026 results

KMX

Earnings

CEO Change

Share Buyback

Reported Q3 FY26 net earnings per diluted share of $0.43, down 47% YoY, impacted by $0.08 of restructuring charges.
Generated $5.79 B in net sales (−6.9% YoY) and $590.0 M in gross profit (−12.9% YoY).
Retail used unit sales fell 8.0% to 169,557 units with $2,235 gross profit per unit; wholesale units declined 6.2% with $899 profit per unit.
Announced leadership changes effective December 1, 2025: David McCreight named Interim President & CEO; Tom Folliard named Interim Executive Chair; search for a permanent CEO is underway.
Executed $201.6 M in share repurchases and saw CarMax Auto Finance income rise 9.3% to $174.7 M.

5 days ago

8-K

CarMax reports Q3 FY2026 results

KMX

Earnings

CEO Change

Share Buyback

Interim leadership changes effective December 1, 2025: David McCreight named Interim President & CEO and Tom Folliard Interim Executive Chair, with a search for a permanent CEO underway.
Q3 FY2026 net sales and operating revenues of $5.794 billion (down 6.9%), total gross profit of $590.0 million (down 12.9%) and diluted EPS of $0.43 vs $0.81 LY.
Retail used unit sales down 8.0% to 169,557 and wholesale unit sales down 6.2% to 127,603; gross profit per retail unit $2,235 and per wholesale unit $899.
SG&A expenses increased 1.0% to $581.4 million, driven by advertising and restructuring charges; CarMax expects $150 million in exit‐rate SG&A savings by end of FY2027.
Repurchased $201.6 million of common stock in the quarter, with $1.36 billion remaining under authorization.

5 days ago

Press Release

CarMax hit with securities fraud lawsuit over alleged demand pull-forward and finance risk

KMX

Legal Proceedings

Demand Weakening

Hagens Berman filed a securities fraud lawsuit against CarMax (NYSE: KMX), alleging the company concealed a temporary demand pull-forward and escalating auto finance risk, leading to a 44% stock decline.
The class period spans June 20, 2025, to November 5, 2025, and investors must file for lead plaintiff by January 2, 2026.
The suit cites corrective disclosures on September 25, 2025—when CarMax reported a 24% EPS drop and $142 million loan-loss provision triggering a 20% stock fall—and the November 6, 2025 CEO termination with weak guidance prompting another sharp sell-off.

8 days ago

Press Release

CarMax investors face class action lawsuit

KMX

Legal Proceedings

The Portnoy Law Firm filed a class action for investors who purchased CarMax securities between March 5, 2024 and October 8, 2025; the deadline to file a lead plaintiff motion is January 2, 2026.
Plaintiffs allege CarMax misrepresented sustainable demand—attributing strong sales to customer experience—when U.S. tariff announcements merely caused a pull-forward in purchases, and are investigating its car loan reserves.
On September 25, 2025, CarMax reported fiscal Q2 2026 net income of $95.4 million, down from $132.8 million a year earlier, with retail used unit sales down 5.4%, comparable store used unit sales down 6.3%, and wholesale units down 2.2%.
Following the earnings release, CarMax’s share price dropped 20%, a fall of $11.45 from $57.05 to $45.60 per share.

8 days ago

Press Release

CarMax upcoming deadline for lead plaintiff in securities lawsuit

KMX

Legal Proceedings

Faruqi & Faruqi has set a January 2, 2026 deadline for investors to seek the role of lead plaintiff in the CarMax federal securities class action.
The complaint alleges CarMax overstated its 2026 growth prospects, attributing temporary gains to tariff speculation and failing to disclose material issues in its business operations and outlook.
In Q2 fiscal 2026 (released September 25, 2025), CarMax Auto Finance income decreased 11.2%, with a $142.2 million provision for loan losses versus $112.6 million in the prior year’s quarter.
After these disclosures, CarMax stock fell 20% (down $11.45) to close at $45.60 on September 26, 2025.