KMXHIGH SIGNALFINANCIAL10-K

CarMax experienced a material decline in profitability with net income roughly halving year-over-year while the company substantially increased share repurchases.

The sharp deterioration in earnings combined with reduced cash reserves raises questions about capital allocation priorities, as management chose to accelerate buybacks despite weakening fundamentals. The company's shift from describing itself as a "used car" retailer to "used vehicle" retailer, along with new risk disclosures around AI initiatives and geopolitical events, suggests management is navigating multiple operational and market challenges.

Comparing 2026-04-15 vs 2025-04-11View on EDGAR →
FINANCIAL ANALYSIS

CarMax's financial position weakened meaningfully with net income roughly halving to $247.3 million while cash reserves also declined substantially to $122.8 million. Despite the earnings deterioration, the company increased share repurchases by 50% to $642.8 million, reflecting an aggressive capital return strategy. The combination of reduced profitability, lower cash balances, and higher buyback spending creates a concerning financial dynamic that warrants close investor attention.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
-50.6%
$500.6M$247.3M

Net income declined 50.6% — review whether driven by operations, interest costs, or non-recurring items.

Cash & Equivalents
Balance Sheet
-50.3%
$247.0M$122.8M

Cash declined 50.3% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Share Buybacks
Cash Flow
+50%
$428.5M$642.8M

Share repurchases increased 50% — management returning capital, signals confidence in intrinsic value.

LANGUAGE CHANGES
NEW — 2026-04-15
PRIOR — 2025-04-11
ADDED
On April 13, 2026, there were 141,820,715 outstanding shares of CarMax, Inc.
economic conditions, including economic downturns, inflationary pressures, fluctuating interest rates, tariffs, the effect of trade policies or related uncertainties and the potential impact of international events (including the conflict in the Middle East).
Our inability to realize the benefits associated with our omni-channel platform or initiatives designed to leverage evolving technologies, including AI.
You can identify these forward-looking statements by the use of words such as anticipate, believe, commit, could, enable, encourage, estimate, expect, focus on, intend, may, on track, outlook, plan, position, predict, should, target, will and other variations of these words or similar expressions, whether in the negative or affirmative.
We are the nation s largest retailer of used vehicles, and we sold 780,684 used vehicles at retail during the fiscal year ended February 28, 2026.
We are also one of the nation s largest operators of wholesale vehicle auctions, with 538,203 vehicles sold during fiscal 2026, and one of the nation s largest providers of used vehicle financing, servicing approximately 1.0 million customer accounts in our $16.37 billion portfolio of auto loans as of February 28, 2026.
Our omni-channel experience provides a common platform across all of CarMax that leverages our scale, national footprint and infrastructure and empowers our customers to buy a vehicle on their terms, whether online, in-store or through a seamless combination of both.
Our associates, stores, technology and digital capabilities seamlessly tied together enable us to provide the most customer-centric car buying and selling experience, a key differentiator in a large and fragmented market.
As of February 28, 2026, we operated 256 used car stores in 110 U.S.
Our omni-channel platform further empowers our customers to buy a vehicle on their own terms, whether online, in-store or through a seamless combination of both.
REMOVED
On April 9, 2025, there were 152,684,225 outstanding shares of CarMax, Inc.
You can identify these forward-looking statements by the use of words such as anticipate, believe, could, enable, estimate, expect, intend, may, outlook, plan, positioned, predict, should, target, will and other similar expressions, whether in the negative or affirmative.
We are the nation s largest retailer of used cars, and we sold 789,050 used vehicles at retail during the fiscal year ended February 28, 2025.
We are also one of the nation s largest operators of wholesale vehicle auctions, with 544,312 vehicles sold during fiscal 2025, and one of the nation s largest providers of used vehicle financing, servicing approximately 1.1 million customer accounts in our $17.59 billion portfolio of managed receivables as of February 28, 2025.
Our omni-channel platform empowers our retail customers to buy a car on their terms - online, in-store or a seamless combination of both.
Our associates, stores, technology and digital capabilities seamlessly tied together enable us to provide the most customer centric car buying and selling experience.
This is a key differentiator that gives us the right to win and access to the largest total addressable market in the used car space.
This positions us to deliver strong market share growth and significant year-over-year earnings growth for years to come.
As of February 28, 2025, we operated 250 used car stores in 109 U.S.
Our omni-channel platform further empowers our customers to buy a car on their own terms online, in-store or a seamless combination of both.
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