CarMax, Inc. (NYSE: KMX) is the largest used-vehicle retailer in the United States. In fiscal 2026, ended February 28, 2026, the Richmond, Virginia company reported $25.88 billion in net sales and operating revenues and $247.3 million in net earnings, selling 780,684 used vehicles at retail and 538,203 at wholesale through about 256 stores. Keith Barr became President and CEO on March 16, 2026, and in Q2 fiscal 2027 revenue rose 19.5% to $7.9 billion.
How Does CarMax Make Money?
Retail used-vehicle sales produced $20.70 billion, or 80.0% of fiscal 2026 revenue, at $2,253 of gross profit per car. Wholesale auction sales to licensed dealers added $4.50 billion (17.4%) at $974 per unit. Other revenues of $674.2 million came mainly from extended protection plan commissions ($448.7 million) and Edmunds advertising and subscriptions ($144.5 million).
CarMax Auto Finance (CAF) is reported separately. It earned $562.7 million in fiscal 2026, originated $7.99 billion of loans, and financed 42.4% of retail units after 3-day payoffs at an 11.2% weighted average contract rate.
Who Founded CarMax?
CarMax began as 'Project X' inside Circuit City in 1991, led by CEO Richard L. Sharp and strategist Austin Ligon. The first store opened in Richmond in September 1993 with no-haggle prices and flat per-car sales pay. Circuit City listed a CarMax tracking stock in 1997 and spun CarMax off as an independent company on October 1, 2002.
Who Is the CEO of CarMax?
Keith Barr has led CarMax since March 16, 2026. He followed interim CEO David McCreight and long-time CEO Bill Nash (2016-2025). Barr's 'Shift into GEAR' strategy focuses on competitive pricing, an easier online-to-store experience, higher CAF and EPP profitability, and lower costs.
CarMax Financial Performance
Fiscal 2026 revenue fell 1.8% and net earnings fell 50.6%, hurt by lower per-unit margins, $49.8 million of restructuring charges, and a $141.3 million non-cash goodwill impairment. Diluted EPS was $1.68, or $2.91 adjusted. Results turned in Q2 fiscal 2027: retail used units rose 13.8%, comparable store units rose 13.0%, CAF income rose 32.1% to $135.6 million, and EPS rose 81.3% to $1.16. CarMax plans to resume share repurchases in Q3 fiscal 2027.
Who Are CarMax's Competitors?
CarMax competes with Carvana in online used-car retail, franchise dealer groups such as AutoNation, Lithia, and Penske, independent dealers, and private sellers. Its wholesale auctions compete with Manheim and ACV Auctions, and CAF competes with lenders such as Ally Financial and Capital One.
What Are the Biggest Risks Facing CarMax?
CarMax is trading per-car profit for volume while CAF expands into riskier credit; its fiscal 2026 loan-loss provision rose to $391.2 million. With net margins near 1% of revenue, higher defaults, falling used-car prices, or higher interest rates could quickly reverse earnings gains.
