Companies /Consumer Cyclical

Carmax Inc

NYSE: KMX Auto & Truck Dealerships
$61.43
▲ $0.43 (+0.70%) today
Markets closed · 11:15pm ET

Q4 2025 Earnings

Reported Apr 10, 2025, 6:54am ET · SEC source
$0.58
Miss −11.91%
EPS · est. $0.66
$6.0B
Beat +0.49%
Revenue · est. $6.0B
−7.2%
Trailing market
KMX vs S&P since report
3 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−12%−6%0+6%Apr 10Apr 11report 6:54am ETearnings−0.4%−9.0%
−12%−6%0+6%Apr 10Apr 11earnings−0.4%−9.0%
KMX −9.0%S&P 500 −0.4%
−12%−6%0+6%Apr 10Apr 11report 6:54am ETearnings−0.7%−9.0%
−12%−6%0+6%Apr 10Apr 11earnings−0.7%−9.0%
KMX −9.0%NASDAQ −0.7%
−14%−7%0+7%Apr 9Apr 17report 6:54am ETearnings−1.4%−12.4%
−14%−7%0+7%Apr 9Apr 17earnings−1.4%−12.4%
KMX −12.4%S&P 500 −1.4%
−14%−7%0+7%Apr 9Apr 17report 6:54am ETearnings−2.5%−12.4%
−14%−7%0+7%Apr 9Apr 17earnings−2.5%−12.4%
KMX −12.4%NASDAQ −2.5%
−17.00%
Day of report
+2.87%
Next session
−2.80%
One week
+4.68%
30 days

S&P 500 over the same 30 days: +11.87%.

Did KMX Beat Earnings? Q4 2025 Results

CarMax posted a mixed fourth quarter for fiscal 2025, delivering a revenue beat that masked a meaningful earnings shortfall as Wall Street sent shares tumbling 17% in the aftermath. The used-vehicle retailer reported revenue of $6.00 billion, clearing the $4.60 billion consensus estimate by 30.39%, while earnings per diluted share of $0.58 fell 12.33% short of the $0.66 consensus, partly weighed down by a $0.06 per share headwind from a $12.00 million non-cash lease impairment tied to Edmunds. Beneath the headline miss, operating momentum was genuine, with retail used vehicle unit sales climbing 6.2%, total gross profit rising 13.9% to $667.90 million, and retail gross profit per unit hitting a fourth-quarter record of $2,322. CarMax Auto Finance income grew 8.2% to $159.30 million as credit quality improved. Looking ahead, the company plans roughly $575 million in capital expenditures for fiscal 2026 to support six new store openings, though management drew scrutiny by removing specific timeframes from long-term growth targets, citing potential macro uncertainty.

Key Takeaways
  • Retail used unit sales increased 6.2% and comparable store used unit sales increased 5.1%
  • Total gross profit increased 13.9% driven by unit volumes and strong unit margin performance
  • Retail used vehicle gross profit per unit reached fourth quarter record of $2,322
  • CarMax Auto Finance income increased 8.2% to $159.3 million driven by net interest margin expansion
  • SG&A as a percent of gross profit decreased 770 basis points to 91.4%
  • Vehicles bought from consumers and dealers increased 15.3% to 269,000
  • Dealer vehicle purchases surged 114.2%
  • Service margin improved $257 per retail unit
  • Other gross profit increased 71.8% driven by service cost coverage and EPP margin growth

“We are pleased with the continuing momentum across our diversified business during the fourth quarter. We delivered robust EPS growth driven by increases in unit sales and buys, strong growth in total gross profit, an increase in CAF income, and ongoing management of SG&A.”

CarMax CEO, on the earnings call

Forward Guidance & Outlook

CarMax expects capital expenditures of approximately $575 million in fiscal 2026, supporting six new store openings and four stand-alone reconditioning/auction centers. The company requires low-single-digit gross profit growth to lever SG&A in fiscal 2026. Management's earnings model is designed to deliver an EPS growth CAGR in the high-teens when retail unit growth is in the mid-single digits. The company removed specific timeframes from its long-term goals given the potential impact of broader macro factors.

KMX YoY Financials

Revenue$6.0B
Gross Profit$667.9M
Net Income$89.9M
Operating Income$118.4M

KMX Revenue by Segment

Used Vehicle Sales$4.8B+7.5%
Wholesale Vehicle Sales$1.0B+3.5%
CarMax Auto Finance$159.3M
Advertising & Subscription Revenues$159.0M+2.7%
Extended Protection Plans

Figures from SEC filings and company reports. Not investment advice.