Core Viewpoint - A class action lawsuit has been filed against CarMax, Inc. for securities fraud following a significant drop in stock price attributed to potential violations of federal securities laws [2][4]. Group 1: Lawsuit Details - The lawsuit is led by Bleichmar Fonti & Auld LLP and claims violations under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [4]. - Investors have until January 2, 2026, to request to lead the case, which is pending in the U.S. District Court for the District of Maryland [4]. Group 2: Financial Performance - CarMax reported disappointing financial results for Q2 of fiscal year 2026, including a 5.4% decline in retail used unit sales, a 6.3% decline in comparable store used unit sales, and a 2.2% decline in wholesale units [7]. - The company's net income for Q2 was approximately $95.4 million, down from $132.8 million in the previous year [7]. Group 3: Stock Price Impact - Following the financial results announcement on September 25, 2025, CarMax's stock price dropped by $11.45 per share, or roughly 20%, from $57.05 to $45.60 [8]. - The unexpected departure of CEO Bill Nash on November 6, 2025, and a weak preliminary Q3 outlook led to an additional stock price drop of over 24% [8]. Group 4: Company Operations - CarMax's previous claims of strong and sustainable demand for its cars were allegedly misleading, as the demand surge was primarily due to customers purchasing vehicles before the imposition of U.S. tariffs [5][6].

Economic Overview - The year 2025 has been turbulent for the U.S. economy, marked by elevated uncertainty and job market weakness [1] Investment Approach - The investment strategy focuses on fundamental long-term perspectives, with a history of investing in REITs, preferred stocks, and high-yield bonds since high school [2] - Recent strategies include combining long stock positions with covered calls and cash secured puts [2] Analyst and Disclosure Information - There are no current stock, option, or similar derivative positions in any mentioned companies, nor plans to initiate such positions within the next 72 hours [3] - The article expresses personal opinions and is not compensated beyond the platform [3]

NEW YORK, Nov. 19, 2025 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against CarMax, Inc. (NYSE: KMX) and certain of the Company’s senior executives for securities fraud after a significant stock drop resulting from the potential violations of the federal securities laws. If you invested in CarMax, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/carmax-inc-class-action-lawsuit. In ...

Core Insights - The company experienced significant unit growth for nearly two years before shifting strategies in early 2022, which led to a decline in growth and reliance on capital markets [1][2] Group 1: Business Strategy - The company launched in 2013 and was in growth mode until early 2022, when a strategic shift was made to reduce reliance on capital markets [1] - The shift in strategy resulted in a pullback on growth for approximately 1.5 to 2 years [1] Group 2: Unit Economics - The company ceased initiatives aimed at rapidly improving unit economics, which contributed to a reduction in business size and a return to previous equilibrium levels [2]

Core Viewpoint - Rosen Law Firm is urging investors of CarMax, Inc. to secure legal counsel before the January 2, 2026 deadline related to a securities class action lawsuit [2][4]. Group 1: Class Action Details - The class action pertains to CarMax securities purchased between June 20, 2025, and November 5, 2025, and aims to address alleged misleading statements made by the company during this period [2][6]. - The lawsuit claims that CarMax's growth prospects were overstated, attributing earlier growth to temporary factors rather than sustainable business practices [6]. Group 2: Legal Representation - Investors can join the class action without incurring out-of-pocket fees through a contingency fee arrangement [3]. - The Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a proven track record in securities class actions, highlighting its own success in recovering significant settlements for investors [5]. Group 3: Next Steps for Investors - Interested investors are encouraged to visit the Rosen Law Firm's website or contact them directly for more information on joining the class action [4][7]. - It is noted that no class has been certified yet, and investors have the option to remain absent or select their own counsel [8].

Core Viewpoint - Rosen Law Firm is reminding investors who purchased CarMax, Inc. securities between June 20, 2025, and November 5, 2025, about the January 2, 2026, deadline to become lead plaintiffs in a securities class action lawsuit [1][3]. Group 1: Class Action Details - Investors who bought CarMax securities during the specified Class Period may be eligible for compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and interested parties must act by January 2, 2026, to serve as lead plaintiffs [3][5]. - The lawsuit alleges that CarMax's management made materially false and misleading statements regarding the company's growth prospects, which were overstated due to temporary market conditions [5]. Group 2: Rosen Law Firm's Credentials - Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a proven track record in securities class actions, highlighting its own success in achieving significant settlements for investors [4]. - The firm has been recognized for its performance in securities class action settlements, including being ranked No. 1 by ISS Securities Class Action Services in 2017 and recovering over $438 million for investors in 2019 [4].

New York, New York--(Newsfile Corp. - November 18, 2025) - If you suffered a loss on your CarMax, Inc. (NYSE: KMX) investment and want to learn about a potential recovery under the federal securities laws, follow the link below for more information:https://zlk.com/pslra-1/carmax-inc-lawsuit-submission-form?prid=178005&wire=5&utm_campaign=1or contact Joseph E. Levi, Esq. via email at jlevi@levikorsinsky.com or call (212) 363-7500 to speak to our team of experienced shareholder advocates.THE LAWSUIT: A class ...

Summary of Carvana's Conference Call Company Overview - **Company**: Carvana - **Industry**: Automotive Retail Key Points and Arguments Growth Strategy and Market Position - Carvana aims to sell **3 million retail vehicles** annually within **5 to 10 years**, which represents a **5X increase** from the current run rate of approximately **600,000 units per year** [6][8][17] - The target of **3 million units** is only **7.5%** of the **40 million transactions** in the automotive market, making it an achievable goal [6][8] - The company has shifted from a reliance on capital markets to focusing on improving unit economics, which led to a temporary decline in growth before returning to a growth trajectory [4][5] Operational Challenges and Scaling - Achieving the target requires approximately **40% compounded growth** over **5 years** or **20% compounded growth** over **10 years** [7][8] - Carvana's operations are complex, involving multiple steps from purchasing to delivery, which makes scaling challenging [7][11] - The company is focused on expanding its **inspection centers** to facilitate growth and improve operational efficiency [10][12] Market Share and Competition - Carvana currently holds about **1.5%** of the market share in a highly fragmented industry, where public companies represent only about **10%** of the market [13][14] - The company believes its share gains are broad-based and not concentrated among a few competitors [13][15] Economic Environment and Consumer Credit - The used car market has averaged around **40 million units** annually, with fluctuations due to economic conditions [17][18] - Carvana's growth is somewhat insulated from market fluctuations, as it focuses on long-term foundations for sustained growth [18] - The company perceives the current consumer credit environment as stable, with expectations for better performance in **2024 and 2025 vintages** [47][48] Use of Technology and AI - Carvana has integrated AI across its operations, enhancing efficiency in various departments, including customer service and modeling [23][24][25] - The company has built a robust data infrastructure that supports AI applications, leading to improved productivity and customer-facing capabilities [24][26] Financial Performance and EBITDA Margins - Carvana targets **13.5% EBITDA margins** over the next **5 to 10 years**, based on historical performance and operational efficiencies [31][36] - The company plans to leverage fundamental gains to enhance customer offerings while maintaining competitive pricing [31][35] Advertising and Brand Awareness - Carvana is focused on increasing brand awareness to capture market share, utilizing advertising as a key lever [49][52] - The company aims to build consumer trust by delivering exceptional customer experiences and increasing visibility through strategic advertising [50][53] Delivery Capabilities - Carvana is piloting **same-day and next-day delivery** options, measuring success through customer uptake and fulfillment efficiency [54][56] - The company believes that faster delivery options will enhance conversion rates and overall customer satisfaction [54][57] Future Plans and Capital Expenditure - Carvana estimates that achieving a total reconditioning capacity of **3 million units** will require around **$1 billion** in capital expenditure [62] - The company is focused on low-capital integrations initially, with plans for more capital-intensive full build-outs in the future [62][63] Additional Important Insights - Carvana's growth strategy is heavily reliant on operational efficiency and scaling its inspection centers to meet increasing demand [10][12] - The company is aware of the complexities involved in expanding its delivery capabilities and is working to optimize its systems accordingly [55][56] - Carvana's approach to customer experience and brand perception is critical in overcoming consumer anxiety associated with car buying [50][51]

KMX CLASS NOTICE: BFA Law Alerts CarMax, Inc. Investors of the Pending Securities Fraud Class Action and Upcoming January 2 DeadlineNovember 18, 2025 3:33 PM EST | Source: Bleichmar Fonti & AuldNew York, New York--(Newsfile Corp. - November 18, 2025) - Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against CarMax, Inc. (NYSE: KMX) and certain of the Company's senior executives for securities fraud after a significant stock drop resul ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...