Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential opportunities for traders [1] Premarket Gainers - PepGen Inc. (PEPG) is up 151% at $6.68 [3] - 22nd Century Group, Inc. (XXII) is up 27% at $1.93 [3] - Immuneering Corporation (IMRX) is up 23% at $11.36 [3] - uniQure N.V. (QURE) is up 10% at $52.58 [3] - Lithium Americas Corp. (LAC) is up 9% at $6.60 [3] - Jasper Therapeutics, Inc. (JSPR) is up 9% at $2.55 [3] - American Shared Hospital Services (AMS) is up 8% at $2.75 [3] - PSQ Holdings, Inc. (PSQH) is up 7% at $3.06 [3] - K Wave Media Ltd. (KWM) is up 7% at $2.48 [3] - ClearPoint Neuro, Inc. (CLPT) is up 5% at $20.48 [3] Premarket Losers - Transocean Ltd. (RIG) is down 14% at $3.11 [4] - Cyclerion Therapeutics, Inc. (CYCN) is down 12% at $2.83 [4] - CarMax, Inc. (KMX) is down 11% at $50.38 [4] - ARB IOT Group Limited (ARBB) is down 11% at $10.45 [4] - SHF Holdings, Inc. (SHFS) is down 10% at $6.49 [4] - Digital Brands Group, Inc. (DBGI) is down 10% at $6.21 [4] - Aqua Metals, Inc. (AQMS) is down 9% at $5.29 [4] - Akanda Corp. (AKAN) is down 8% at $3.96 [4] - Galecto, Inc. (GLTO) is down 8% at $3.88 [4] - Platinum Analytics Cayman Limited (PLTS) is down 7% at $11.12 [4]

Group 1 - The company reports weaker-than-expected quarterly earnings [1]

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Second Quarter Highlights](index=1&type=section&id=Second%20Quarter%20Highlights) CarMax reported a challenging Q2 FY26 with decreases in retail and wholesale unit sales and net earnings per diluted share. Despite this, the company maintained solid unit margins, initiated significant SG&A reductions, and continued share repurchases - Retail used unit sales decreased **5.4%** and comparable store used unit sales decreased **6.3%**; wholesale units decreased **2.2%**[3](index=3&type=chunk) - Solid unit margins with gross profit per retail used unit of **$2,216**, gross profit per wholesale unit of **$993**, and Extended Protection Plans (EPP) margin per retail unit of **$576**, all in line with the prior year's second quarter[3](index=3&type=chunk) - Bought **293,000** vehicles from consumers and dealers, a decrease of **2.4%**[3](index=3&type=chunk) - SG&A decreased **1.6%** to **$601.1 million**. Established plans for incremental SG&A reductions of at least **$150 million** over the next 18 months[3](index=3&type=chunk) - CarMax Auto Finance (CAF) income decreased **11.2%** to **$102.6 million** as an increase in the provision for loan losses outweighed growth in the net interest margin percentage[3](index=3&type=chunk) - Net earnings per diluted share of **$0.64** versus **$0.85** a year ago[3](index=3&type=chunk) - Repurchased **$180.0 million** in shares of common stock, continuing an accelerated quarterly pace compared to fiscal year 2025[3](index=3&type=chunk) - Launched a new brand positioning campaign, 'Wanna Drive?', emphasizing customer empowerment and the omni-channel experience[3](index=3&type=chunk) [CEO Commentary](index=2&type=section&id=CEO%20Commentary) [Strategic Outlook and Initiatives](index=2&type=section&id=Strategic%20Outlook%20and%20Initiatives) CEO Bill Nash acknowledged a challenging quarter but expressed confidence in the long-term strategy and earnings model. He highlighted the new 'Wanna Drive?' brand campaign emphasizing customer empowerment and reiterated the commitment to driving SG&A efficiency with a target of at least $150 million in incremental reductions - Expressed confidence in the long-term strategy and the strength of the earnings model[4](index=4&type=chunk) - Highlighted the recent launch of the new brand positioning campaign 'Wanna Drive?' to bring the omni-channel experience to life and empower customers[4](index=4&type=chunk) - Committed to driving SG&A efficiency, targeting at least **$150 million** in incremental SG&A reductions over the next 18 months[4](index=4&type=chunk) [Second Quarter Business Performance Review](index=2&type=section&id=Second%20Quarter%20Business%20Performance%20Review) [Sales Performance](index=2&type=section&id=Sales%20Performance) CarMax experienced a decline in combined retail and wholesale unit sales, with retail used vehicle sales decreasing by 5.4% and wholesale by 2.2%. Total retail used vehicle revenues also fell by 7.2%. The company bought fewer vehicles from consumers and dealers overall. Digital capabilities supported 80% of retail unit sales - Combined retail and wholesale used vehicle unit sales decreased **4.1%** from the prior year's second quarter to **338,031 units**[5](index=5&type=chunk) - Total retail used vehicle unit sales decreased **5.4%** to **199,729**, and comparable store used unit sales decreased **6.3%**. Total retail used vehicle revenues decreased **7.2%**[6](index=6&type=chunk) - Total wholesale vehicle unit sales decreased **2.2%** to **138,302**, with total wholesale revenues declining **0.4%**, partially offset by a **1.6%** increase in average selling price[7](index=7&type=chunk) - Bought **293,000** vehicles from consumers and dealers, down **2.4%** year-over-year[8](index=8&type=chunk) - Digital capabilities supported **80%** of retail unit sales, with omni sales at **68%** and online retail sales at **12%**[9](index=9&type=chunk) [Gross Profit Analysis](index=2&type=section&id=Gross%20Profit%20Analysis) Total gross profit decreased by 5.6% year-over-year. While gross profit per retail used unit and wholesale unit remained consistent with the prior year, the overall decline was driven by lower unit sales and a reduction in EPP revenues - Total gross profit was **$717.7 million**, down **5.6%** versus last year's second quarter[9](index=9&type=chunk) - Retail used vehicle gross profit decreased **7.6%**, but retail gross profit per used unit was **$2,216**, in line with the prior year[9](index=9&type=chunk) - Wholesale vehicle gross profit decreased **0.4%**, with gross profit per unit at **$993**, consistent with last year[10](index=10&type=chunk) - Other gross profit decreased **4.2%**, primarily reflecting a reduction in EPP revenues due to lower retail unit sales[11](index=11&type=chunk) [SG&A Expenses](index=2&type=section&id=SG%26A%20Expenses) SG&A expenses decreased by 1.6% to $601.1 million, mainly due to a reduction in share-based compensation. However, SG&A as a percentage of gross profit increased to 83.8% from 80.3% due to the decline in gross profit. The company plans for at least $150 million in SG&A reductions over the next 18 months - SG&A expenses decreased **1.6%** or **$9.5 million** to **$601.1 million**, primarily driven by a reduction in share-based compensation[12](index=12&type=chunk) - SG&A as a percent of gross profit was **83.8%** in the second quarter compared to **80.3%** in the prior year's second quarter, driven by the decline in gross profit[12](index=12&type=chunk) - Established plans for SG&A reductions of at least **$150 million** over the next 18 months, with the vast majority materializing by the end of fiscal 2027[13](index=13&type=chunk) [CarMax Auto Finance (CAF) Performance](index=3&type=section&id=CarMax%20Auto%20Finance%20(CAF)%20Performance) CAF income decreased by 11.2% to $102.6 million, primarily due to a significant increase in the provision for loan losses ($142.2 million vs. $112.6 million YoY). This increase was driven by worsening performance in 2022 and 2023 loan vintages, though these remain profitable. Underwriting standards tightened after April 2024 are performing as expected. CAF's total interest margin percentage improved to 6.6%, and it financed 42.6% of units sold - CAF income decreased **11.2%** to **$102.6 million**, as an increase in the provision for loan losses outweighed growth in CAF's net interest margin percentage[14](index=14&type=chunk) - Provision for loan losses was **$142.2 million** (vs. **$112.6 million** YoY), including a **$71.3 million** increase due to worsening performance among 2022 and 2023 vintages[14](index=14&type=chunk) - CAF's total interest margin percentage was **6.6%** of average auto loans outstanding (up **50 basis points** YoY), and CAF financed **42.6%** of units sold (up from **42.0%** YoY)[15](index=15&type=chunk) - Executed a **$900 million** non-prime securitization transaction post-quarter, expecting a gain on sale of approximately **$25 million to $30 million** in Q3 income[16](index=16&type=chunk) [Share Repurchase Activity](index=3&type=section&id=Share%20Repurchase%20Activity) CarMax repurchased 2.9 million shares of common stock for $180.0 million during Q2 FY26, continuing an accelerated pace compared to FY25. As of August 31, 2025, $1.56 billion remained available under the current authorization - Repurchased **2.9 million** shares of common stock for **$180.0 million** during the second quarter of fiscal year 2026[17](index=17&type=chunk) - As of August 31, 2025, **$1.56 billion** remained available for repurchase under the outstanding authorization[17](index=17&type=chunk) [Location Openings](index=3&type=section&id=Location%20Openings) During the second quarter of fiscal 2026, CarMax opened three new store locations and one stand-alone reconditioning/auction center - Opened **three** new store locations in Tuscaloosa, Alabama, El Cajon, California, and Hagerstown, Maryland[18](index=18&type=chunk) - Opened **one** stand-alone reconditioning/auction center located in New Kent County, Virginia[18](index=18&type=chunk) [Supplemental Financial Information](index=4&type=section&id=Supplemental%20Financial%20Information) [Sales Components](index=4&type=section&id=Sales%20Components) Total net sales and operating revenues for Q2 FY26 decreased by 6.0% to $6,594.7 million, primarily driven by a 7.2% decline in used vehicle sales and a 0.4% decline in wholesale vehicle sales. Other sales and revenues also saw a 4.2% decrease Sales Components (Three Months Ended August 31) | (In millions) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Used vehicle sales | $5,270.7 | $5,677.1 | (7.2)% | | Wholesale vehicle sales | $1,149.6 | $1,154.5 | (0.4)% | | Other sales and revenues | $174.4 | $182.0 | (4.2)% | | Total net sales and operating revenues | $6,594.7 | $7,013.5 | (6.0)% | [Unit Sales](index=4&type=section&id=Unit%20Sales) Used vehicle unit sales decreased by 5.4% to 199,729 units, and wholesale vehicle unit sales decreased by 2.2% to 138,302 units for the three months ended August 31, 2025 Unit Sales (Three Months Ended August 31) | | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Used vehicles | 199,729 | 211,020 | (5.4)% | | Wholesale vehicles | 138,302 | 141,458 | (2.2)% | [Average Selling Prices](index=4&type=section&id=Average%20Selling%20Prices) The average selling price for used vehicles decreased by 1.0% to $25,993, while the average selling price for wholesale vehicles increased by 1.6% to $7,891 for the three months ended August 31, 2025 Average Selling Prices (Three Months Ended August 31) | | 2025 $ | 2024 $ | Change | | :--- | :--- | :--- | :--- | | Used vehicles | $25,993 | $26,245 | (1.0)% | | Wholesale vehicles | $7,891 | $7,768 | 1.6 % | [Vehicle Sales Changes](index=4&type=section&id=Vehicle%20Sales%20Changes) For the three months ended August 31, 2025, used vehicle units and revenues declined by 5.4% and 7.2% respectively, while wholesale vehicle units and revenues also saw decreases of 2.2% and 0.4% Vehicle Sales Changes (Three Months Ended August 31) | | 2025 % | 2024 % | | :--- | :--- | :--- | | Used vehicle units | (5.4)% | 5.1 % | | Used vehicle revenues | (7.2)% | 1.5 % | | Wholesale vehicle units | (2.2)% | (0.3)% | | Wholesale vehicle revenues | (0.4)% | (12.7)% | [Comparable Store Used Vehicle Sales Changes](index=5&type=section&id=Comparable%20Store%20Used%20Vehicle%20Sales%20Changes) Comparable store used vehicle units decreased by 6.3% and revenues by 7.1% for the three months ended August 31, 2025, indicating a decline in sales performance at established locations Comparable Store Used Vehicle Sales Changes (Three Months Ended August 31) | | 2025 % | 2024 % | | :--- | :--- | :--- | | Used vehicle units | (6.3)% | 4.3 % | | Used vehicle revenues | (7.1)% | (0.2)% | [Used Vehicle Financing Penetration by Channel](index=5&type=section&id=Used%20Vehicle%20Financing%20Penetration%20by%20Channel) CAF's financing penetration increased slightly to 45.2% for Q2 FY26, while Tier 2 third-party financing decreased to 16.5%. Tier 3 financing saw a slight increase to 7.3%, and other financing remained stable at 31.0% Used Vehicle Financing Penetration by Channel (Three Months Ended August 31) | | 2025 % | 2024 % | | :--- | :--- | :--- | | CAF | 45.2 % | 44.6 % | | Tier 2 | 16.5 % | 17.7 % | | Tier 3 | 7.3 % | 6.7 % | | Other | 31.0 % | 31.0 % | | Total | 100.0 % | 100.0 % | [Selected Operating Ratios](index=5&type=section&id=Selected%20Operating%20Ratios) For Q2 FY26, gross profit as a percentage of net sales and operating revenues slightly increased to 10.9%, while CAF income remained stable at 1.6%. SG&A expenses as a percentage of revenues increased to 9.1%, and net earnings as a percentage of revenues decreased to 1.4% Selected Operating Ratios (Three Months Ended August 31, as % of Net Sales and Operating Revenues) | | 2025 % | 2024 % | | :--- | :--- | :--- | | Net sales and operating revenues | 100.0 | 100.0 | | Gross profit | 10.9 | 10.8 | | CarMax Auto Finance income | 1.6 | 1.6 | | Selling, general, and administrative expenses | 9.1 | 8.7 | | Earnings before income taxes | 1.9 | 2.5 | | Net earnings | 1.4 | 1.9 | [Gross Profit Details](index=6&type=section&id=Gross%20Profit%20Details) Total gross profit for Q2 FY26 decreased by 5.6% to $717.7 million. This was primarily due to a 7.6% decrease in used vehicle gross profit, while wholesale vehicle gross profit saw a minor decrease of 0.4% Gross Profit (Three Months Ended August 31) | (In millions) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Used vehicle gross profit | $442.6 | $478.8 | (7.6)% | | Wholesale vehicle gross profit | $137.3 | $137.9 | (0.4)% | | Other gross profit | $137.8 | $143.8 | (4.2)% | | Total | $717.7 | $760.5 | (5.6)% | [Gross Profit per Unit](index=6&type=section&id=Gross%20Profit%20per%20Unit) Gross profit per used vehicle unit slightly decreased to $2,216, while gross profit per wholesale vehicle unit increased to $993 for Q2 FY26. Other gross profit per unit also saw an increase to $690 Gross Profit per Unit (Three Months Ended August 31) | | 2025 $ per unit | 2024 $ per unit | | :--- | :--- | :--- | | Used vehicle gross profit per unit | $2,216 | $2,269 | | Wholesale vehicle gross profit per unit | $993 | $975 | | Other gross profit per unit | $690 | $682 | [SG&A Expenses Breakdown](index=6&type=section&id=SG%26A%20Expenses%20Breakdown) Total SG&A expenses decreased by 1.6% to $601.1 million in Q2 FY26, primarily driven by a 30.1% reduction in share-based compensation expense. Compensation and benefits excluding share-based compensation saw a slight increase of 0.6% SG&A Expenses (Three Months Ended August 31) | (In millions) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Compensation and benefits, excluding share-based compensation expense | $323.4 | $321.3 | 0.6 % | | Share-based compensation expense | $22.4 | $32.1 | (30.1)% | | Total compensation and benefits | $345.8 | $353.4 | (2.2)% | | Occupancy costs | $74.1 | $74.7 | (0.8)% | | Advertising expense | $63.7 | $63.0 | 1.2 % | | Other overhead costs | $117.5 | $119.5 | (1.7)% | | Total SG&A expenses | $601.1 | $610.6 | (1.6)% | | SG&A as a % of gross profit | 83.8 % | 80.3 % | 3.5 % | [Components of CAF Income and Other CAF Information](index=8&type=section&id=Components%20of%20CAF%20Income%20and%20Other%20CAF%20Information) CAF income decreased to $102.6 million due to a significant increase in the provision for loan losses to $142.2 million. Despite this, the total interest margin increased to $290.6 million, and the interest margin as a percentage of average auto loans outstanding improved to 6.6% Components of CAF Income (Three Months Ended August 31) | (In millions) | 2025 | 2024 | | :--- | :--- | :--- | | Interest and fee income | $489.8 | $464.5 | | Interest expense | ($199.2) | ($193.7) | | Total interest margin | $290.6 | $270.8 | | Provision for loan losses | ($142.2) | ($112.6) | | Total interest margin after provision for loan losses | $148.4 | $158.2 | | Total direct expenses | ($45.8) | ($42.6) | | CarMax Auto Finance income | $102.6 | $115.6 | Other CAF Information (Three Months Ended August 31) | | 2025 | 2024 | | :--- | :--- | :--- | | Average auto loans outstanding | $17,734.5 | $17,728.8 | | Total interest margin as a percent of average auto loans outstanding | 6.6 % | 6.1 % | | Net auto loans originated | $2,039.6 | $2,159.7 | | Net penetration rate | 42.6 % | 42.0 % | | Weighted average contract rate | 11.2 % | 11.5 % | | Ending allowance for loan losses | $507.3 | $500.8 | [Earnings Highlights](index=8&type=section&id=Earnings%20Highlights) Net earnings for Q2 FY26 decreased by 28.2% to $95.4 million, resulting in a diluted net earnings per share of $0.64, down from $0.85 in the prior year Earnings Highlights (Three Months Ended August 31) | (In millions except per share data) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Net earnings | $95.4 | $132.8 | (28.2)% | | Diluted weighted average shares outstanding | 149.6 | 156.5 | (4.4)% | | Net earnings per diluted share | $0.64 | $0.85 | (24.7)% | [Corporate Information and Outlook](index=9&type=section&id=Corporate%20Information%20and%20Outlook) [Conference Call Information](index=9&type=section&id=Conference%20Call%20Information) CarMax hosted a conference call for investors on September 25, 2025, with webcast replay available until December 17, 2025 - Conference call for investors held on September 25, 2025, at 9:00 a.m. ET[33](index=33&type=chunk) - A live webcast and replay are available on investors.carmax.com through December 17, 2025[33](index=33&type=chunk)[34](index=34&type=chunk) [Third Quarter Fiscal 2026 Earnings Release Date](index=9&type=section&id=Third%20Quarter%20Fiscal%202026%20Earnings%20Release%20Date) CarMax plans to release its Q3 FY26 results on Thursday, December 18, 2025, before market open, followed by an investor conference call - Results for the third quarter ending November 30, 2025, are planned for release on Thursday, December 18, 2025, before the opening of trading on the New York Stock Exchange[35](index=35&type=chunk) - A conference call for investors is planned for 9:00 a.m. ET on the release date[35](index=35&type=chunk) [About CarMax](index=9&type=section&id=About%20CarMax) CarMax is the largest used auto retailer in the U.S., known for its omni-channel experience. In FY25, the company sold approximately 790,000 used vehicles and 540,000 wholesale vehicles, with CarMax Auto Finance originating over $8 billion in loans. CarMax operates more than 250 stores and employs over 30,000 associates - CarMax is the nation's largest retailer of used autos, offering a personalized omni-channel experience[36](index=36&type=chunk) - During fiscal year ended February 28, 2025, CarMax sold approximately **790,000** used vehicles and **540,000** wholesale vehicles[36](index=36&type=chunk) - CarMax Auto Finance originated more than **$8 billion** in auto loans during fiscal 2025, adding to its nearly **$18 billion** portfolio[36](index=36&type=chunk) - CarMax has more than **250** store locations and over **30,000** associates[36](index=36&type=chunk) [Forward-Looking Statements and Risk Factors](index=9&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) This section provides a cautionary note regarding forward-looking statements, highlighting that actual results may differ materially due to various risks and uncertainties. Key risk factors include changes in the competitive landscape, economic conditions, capital availability, reputation, vehicle prices, inventory, and the ability to realize benefits from strategic initiatives and manage credit losses - Statements about future business plans, operations, challenges, opportunities, or prospects are forward-looking statements[37](index=37&type=chunk) - Actual results could differ materially from anticipated results due to various risks and uncertainties[37](index=37&type=chunk) - Key risk factors include changes in the competitive landscape, general U.S. economic conditions (e.g., inflation, interest rates), availability/cost of capital, significant changes in vehicle prices, and the inability to realize benefits from omni-channel or technology initiatives (including AI)[39](index=39&type=chunk) - Other risks include greater credit losses for CAF's loan portfolio, changes in consumer credit availability, and factors related to the regulatory and legislative environment[39](index=39&type=chunk) [Investor and Media Contacts](index=11&type=section&id=Investor%20and%20Media%20Contacts) Contact information for investor relations and media inquiries is provided - Investors can contact David Lowenstein, Vice President, Investor Relations at investor_relations@carmax.com or (804) 747-0422 x7865[40](index=40&type=chunk) - Media inquiries can be directed to pr@carmax.com or (855) 887-2915[40](index=40&type=chunk) [Consolidated Financial Statements](index=12&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Earnings](index=12&type=section&id=Consolidated%20Statements%20of%20Earnings) For the three months ended August 31, 2025, CarMax reported net sales and operating revenues of $6,594.7 million, a gross profit of $717.7 million, and net earnings of $95.4 million, resulting in diluted EPS of $0.64. These figures represent a decline compared to the prior year Consolidated Statements of Earnings (Three Months Ended August 31, in thousands except per share data) | | 2025 | 2024 | | :--- | :--- | :--- | | NET SALES AND OPERATING REVENUES | $6,594,684 | $7,013,529 | | TOTAL COST OF SALES | $5,877,018 | $6,253,062 | | GROSS PROFIT | $717,666 | $760,467 | | CARMAX AUTO FINANCE INCOME | $102,638 | $115,580 | | Selling, general, and administrative expenses | $601,093 | $610,562 | | Earnings before income taxes | $127,097 | $177,844 | | Income tax provision | $31,719 | $45,035 | | NET EARNINGS | $95,378 | $132,809 | | Diluted weighted average shares | 149,637 | 156,526 | | NET EARNINGS PER SHARE: Diluted | $0.64 | $0.85 | [Consolidated Balance Sheets](index=13&type=section&id=Consolidated%20Balance%20Sheets) As of August 31, 2025, total assets were $27,079.6 million, a slight decrease from February 28, 2025. Key changes include an increase in cash and cash equivalents and auto loans held for sale, while inventory and auto loans held for investment decreased. Total liabilities also decreased, leading to a slight decrease in total shareholders' equity Consolidated Balance Sheets (As of August 31, 2025 and February 28, 2025, in thousands) | ASSETS | August 31, 2025 | February 28, 2025 | | :--- | :--- | :--- | | Cash and cash equivalents | $540,374 | $246,960 | | Auto loans held for sale | $921,928 | — | | Inventory | $3,149,570 | $3,934,622 | | Auto loans held for investment, net | $16,386,236 | $17,242,789 | | TOTAL ASSETS | $27,079,644 | $27,404,206 | | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | TOTAL CURRENT LIABILITIES | $2,252,036 | $2,197,971 | | TOTAL LIABILITIES | $20,879,122 | $21,161,218 | | TOTAL SHAREHOLDERS' EQUITY | $6,200,522 | $6,242,988 | | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $27,079,644 | $27,404,206 | [Consolidated Statements of Cash Flows](index=14&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended August 31, 2025, net cash provided by operating activities significantly increased to $1,085.0 million from $501.4 million in the prior year, largely due to changes in inventory and auto loans held for investment. Net cash used in investing activities increased, and net cash used in financing activities also increased, primarily due to higher share repurchases Consolidated Statements of Cash Flows (Six Months Ended August 31, in thousands) | | 2025 | 2024 | | :--- | :--- | :--- | | NET CASH PROVIDED BY OPERATING ACTIVITIES | $1,085,037 | $501,414 | | NET CASH USED IN INVESTING ACTIVITIES | ($272,466) | ($215,463) | | NET CASH USED IN FINANCING ACTIVITIES | ($467,706) | ($283,067) | | Increase in cash, cash equivalents, and restricted cash | $344,865 | $2,884 | | CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD | $1,305,175 | $1,253,294 |

Core Insights - CarMax, Inc. reported a decrease in retail used unit sales by 5.4% and a 6.3% decline in comparable store used unit sales for the second quarter ended August 31, 2025 [1] - Wholesale units also saw a decrease of 2.2% [1] - Despite the decline in unit sales, the company maintained solid unit margins, with gross profit per retail used unit at $2,216, gross profit per wholesale unit at $993, and Extended Protection Plans (EPP) margin per retail unit at $576, all consistent with the prior year's second quarter [1]

Group 1 - Whales have taken a bearish stance on CarMax, with 60% of trades being bearish and 40% bullish, indicating a cautious outlook among large investors [1] - The detected trades include 6 puts totaling $297,311 and 4 calls totaling $140,935, reflecting a significant preference for bearish positions [1] - Major market movers are focusing on a price band between $50.0 and $70.0 for CarMax over the last three months, suggesting a range of expected price movement [2] Group 2 - Analyzing volume and open interest provides insights into the liquidity and interest for CarMax's options, particularly within the $50.0 to $70.0 strike price range over the last 30 days [3] - Significant options trades include bearish puts with total trade prices of $82.7K and $66.7K, alongside bullish calls with a total trade price of $49.8K, indicating mixed sentiment [8] - CarMax is the largest used-vehicle retailer in the US, with used-vehicle sales accounting for 83% of fiscal 2025 revenue, and it aims to increase its market share from 3.7% to over 5% [9] Group 3 - The current market status of CarMax shows a consensus target price of $65.0 from market experts, with a neutral rating from JP Morgan [10][11] - The stock price of KMX is currently $57.22, down 0.66%, with a trading volume of 3,664,049, and RSI indicators suggest it may be approaching oversold conditions [13]

Company Overview - CarMax, Inc. (KMX) has a market capitalization of $8.6 billion, making it the largest retailer of used vehicles in the U.S. and a leading operator of wholesale vehicle auctions [1] - The company operates through two segments: CarMax Sales Operations, which includes auto merchandising and related services, and CarMax Auto Finance, which provides financing solutions for customers [1] Financial Performance - CarMax is expected to announce its Q2 2026 results on September 25, with analysts forecasting an EPS of $1.03, representing a 21.2% increase from $0.85 in the same quarter last year [2] - For fiscal 2026, analysts predict an EPS of $3.89, up nearly 19% from $3.27 in fiscal 2025 [3] - In Q1 2026, CarMax reported revenue of $7.55 billion, a 6% increase, and a record EPS of $1.38, which is a 42% increase from the previous year [5] Market Performance - Over the past 52 weeks, CarMax shares have dropped 24.5%, underperforming the S&P 500 Index's gain of 16.4% and the Consumer Discretionary Select Sector SPDR Fund's return of 19.1% [4] - Following the Q1 2026 results, shares of CarMax climbed 6.6% on June 20, driven by positive investor sentiment [5] Analyst Sentiment - The consensus view on KMX stock is moderately optimistic, with a "Moderate Buy" rating overall among 19 analysts [6] - The breakdown of recommendations includes nine "Strong Buy," three "Moderate Buy," five "Hold," one "Moderate Sell," and one "Strong Sell," indicating a slightly more bullish outlook compared to three months ago [6]

Core Insights - CarMax has been recognized for the 11th consecutive year in Fortune magazine's 2025 Best Workplaces in Retail™, ranking 6 in the large company category [1] - The company was also honored by Great Place To Work® and PEOPLE magazine as one of the 2025 PEOPLE® Companies that Care, ranking 38, marking its fifth appearance on this list [1] - These accolades reflect CarMax's commitment to a people-first culture and its dedication to community support [1][2] Awards and Recognition - CarMax has been recognized in multiple categories, including: - Fortune's "100 Best Companies to Work For®" for 21 consecutive years, ranked 69th in 2025 [9] - US Veteran's and Military Magazine's "Top Veteran-Friendly Employer" [9] - Military Friendly designation for its commitment to the military community [9] - Top Workplaces recognition by the Atlanta Journal-Constitution and Richmond Times-Dispatch based on employee feedback [9] Company Culture - CarMax emphasizes a supportive and welcoming environment, driven by a people-first culture [2][10] - The company offers extensive career paths, training, and support for associate growth, highlighting its integrity and community impact [10] - CarMax's innovative approach to employee investment is seen as a driver of productivity and revenue [4]

Earnings Report - CarMax, Inc. is set to release its second-quarter earnings results on September 25, with analysts expecting earnings of $1.03 per share, an increase from 85 cents per share in the same period last year [1] - The company projects quarterly revenue of $7.02 billion, slightly up from $7.01 billion reported a year earlier [1] Recent Performance - In the first quarter, CarMax reported better-than-expected earnings and revenue, attributed to strong retail sales and improved margins [2] - Following the first-quarter results, CarMax shares fell by 0.9%, closing at $57.60 [2] Analyst Ratings - JP Morgan analyst Rajat Gupta maintained a Neutral rating and raised the price target from $58 to $65 [4] - Wedbush analyst Scott Devitt reiterated an Outperform rating with a price target of $84 [4] - Stephens & Co. analyst Jeff Lick reiterated an Overweight rating with a price target of $81 [4] - Mizuho analyst David Bellinger maintained a Neutral rating and cut the price target from $80 to $78 [4] - Truist Securities analyst Scot Ciccarelli maintained a Hold rating and raised the price target from $72 to $74 [4]

Earnings Report - CarMax, Inc. is set to release its second-quarter earnings results on September 25, with analysts expecting earnings of $1.03 per share, an increase from 85 cents per share in the same period last year [1] - The company projects quarterly revenue of $7.02 billion, slightly up from $7.01 billion reported a year earlier [1] Recent Performance - In the first quarter, CarMax reported better-than-expected earnings and revenue, attributed to strong retail sales and improved margins [2] - Despite the positive earnings report, CarMax shares fell by 0.9%, closing at $57.60 [2] Analyst Ratings - JP Morgan analyst Rajat Gupta maintained a Neutral rating and raised the price target from $58 to $65 [4] - Wedbush analyst Scott Devitt reiterated an Outperform rating with a price target of $84 [4] - Stephens & Co. analyst Jeff Lick maintained an Overweight rating with a price target of $81 [4] - Mizuho analyst David Bellinger maintained a Neutral rating but cut the price target from $80 to $78 [4] - Truist Securities analyst Scot Ciccarelli maintained a Hold rating and raised the price target from $72 to $74 [4]

Core Insights - CarMax, Inc. (KMX) is set to release its second-quarter fiscal 2026 results on September 25, with consensus estimates for earnings per share (EPS) at $1.03 and revenues at $7.05 billion, indicating year-over-year growth [1][8] - The consensus estimate for KMX's quarterly revenues suggests a year-over-year growth of 0.6%, while earnings estimates imply a 21.2% increase from the previous year [1][2] Financial Performance - In the first quarter of fiscal 2026, CarMax reported an adjusted EPS of $1.38, surpassing the Zacks Consensus Estimate of $1.18, and net sales of $7.55 billion, exceeding the estimate of $7.52 billion, reflecting a 6% year-over-year increase [2] - The service gross margin improved by $30 million year-over-year in Q1, driven by new fees and efficiency initiatives, which are expected to continue positively impacting margins in Q2 [3] Market Conditions - The average age of light vehicles in the U.S. has increased to 12.8 years, which may reduce demand in the wholesale channel and soften prices; the average selling price of KMX's wholesale vehicles declined to $7,959 from $8,094 year-over-year [4] - The decline in wholesale vehicle gross profit per unit to $1,047 from $1,064 may pressure CarMax's margin performance in the upcoming quarter [4] Earnings Expectations - CarMax has an Earnings ESP of -6.67%, indicating a lower Most Accurate Estimate compared to the Zacks Consensus Estimate, which suggests a lower likelihood of an earnings beat for the upcoming quarter [5][6] - The current Zacks Rank for KMX is 3 (Hold), which does not favor a strong earnings performance [6]