CarMax, Inc. Revenue & Financials

In fiscal year 2025, CarMax sold 789,050 used vehicles at retail and generated $26.35 billion in net sales while operating 250 superstores across 109 U.S. Television markets. The Richmond, Virginia-based company has built the largest used vehicle retail operation in the United States, combining a proprietary reconditioning network, data-driven pricing algorithms, and an integrated auto finance arm that manages $17.68 billion in receivables. Yet the company faces a critical strategic inflection point: after revenue peaked at $29.68 billion in fiscal 2023, sales declined 0.7% to $26.35 billion in fiscal 2025 as vehicle affordability challenges, higher interest rates, and tightened lending standards compressed demand. CarMax, Inc. is the nation's largest retailer of used vehicles, generating $26.35 billion in fiscal 2025 revenue across 250 superstores in 109 U.S. Markets. CarMax sold 789,050 used vehicles at retail and 544,312 wholesale units in fiscal 2025, with gross profit of $2.90 billion. The company's integrated CarMax Auto Finance (CAF) operation manages a $17.68 billion portfolio of receivables and generated $581.7 million in income. After revenue declined from a $29.68 billion peak in fiscal 2023, the company is focused on unit growth recovery, credit discipline, and operational efficiency. In fiscal 2025, the company reported $26.35 billion in net sales and operating revenues, with used vehicle sales contributing $21.08 billion (80.0% of total), wholesale vehicle sales contributing $4.59 billion (17.4%), and other sales and revenues contributing $686.3 million (2.6%). CarMax Auto Finance (CAF) is the second major profit engine, contributing $581.7 million in income in fiscal 2025. CAF provides financing to retail customers purchasing vehicles from CarMax, managing a $17.68 billion portfolio of auto loan receivables as of February 28, 2025. In fiscal 2025, CAF originated $8.25 billion in net loans. Revenue from online transactions totaled approximately $7.6 billion, or 29% of net revenues. SG&A expenses were $2.44 billion in fiscal 2025 (9.2% of net sales), including advertising, compensation, occupancy, and technology costs. CarMax is a $26.35 billion used vehicle retailer that has not yet recovered the unit sales volume it achieved before the pandemic. Revenue has declined 11.2% from a $29.68 billion peak in fiscal 2023, reflecting both unit volume pressure and used vehicle price deflation. Yet net earnings improved 4.5% to $500.6 million, and gross profit per retail used unit rose to $2,311, suggesting the company is extracting more margin from fewer transactions. CAF generated $581.7 million in income on a $17.68 billion portfolio, providing stable cash flows even when retail sales fluctuate. The physical store network, while a trust advantage, requires $2.44 billion in annual SG&A and $255 million in depreciation. CarMax operates in the highly fragmented U.S. Used vehicle market, which totals approximately $840 billion annually with over 40 million vehicles sold each year. CarMax's $26.35 billion in fiscal 2025 revenue represents approximately 3.1% of the total used vehicle market by value, making it the largest single retailer but still a small fraction of the overall market. CarMax reported $26.35 billion in net sales and operating revenues for fiscal year 2025 (ended February 28, 2025), a 0.7% decline from $26.54 billion in fiscal 2024 and a 11.2% decline from the $29.68 billion peak in fiscal 2023. Gross profit was $2.90 billion in fiscal 2025, up 6.8% from $2.71 billion in fiscal 2024, reflecting improved margins despite lower revenue. CarMax Auto Finance (CAF) income was $581.7 million in fiscal 2025, up 2.4% from $568.3 million in fiscal 2024. CAF's total interest margin was $1,038.7 million (6.0% of average managed receivables), with interest and fee income of $1,677.4 million (9.7%) and interest expense of $638.7 million (3.7%). The provision for loan losses was $310.5 million (1.8% of average managed receivables), down from $317.0 million in fiscal 2024. CAF direct expenses were $159.9 million (0.9% of average managed receivables). Total average managed receivables were $17.68 billion in fiscal 2025, up from $17.31 billion in fiscal 2024. Net loans originated were $8.25 billion, with a net penetration rate of 42.7% after 3-day payoffs. Selling, general, and administrative expenses were $2.44 billion in fiscal 2025 (9.2% of net sales), up 6.5% from $2.29 billion in fiscal 2024. Share-based compensation was $137.3 million in fiscal 2025 versus $122.4 million in fiscal 2024. Depreciation and amortization was $255.3 million, and interest expense was $107.9 million. Earnings before income taxes were $669.4 million in fiscal 2025 (2.5% of net sales), up from $641.6 million in fiscal 2024. Net earnings were $500.6 million, up 4.5% from $479.2 million in fiscal 2024. The company repurchased $106.1 million in shares during Q2 FY2025 and had $2.15 billion remaining under its repurchase authorization as of August 31, 2024. Cash and cash equivalents were $122.8 million as of February 28, 2025. Total assets were $26.37 billion, including $5.31 billion in current assets and $17.85 billion in auto loans receivable. Total liabilities were $20.48 billion, including $2.41 billion in current liabilities and $17.26 billion in long-term debt. Shareholders' equity was $5.89 billion. CAF's ending funded receivables in warehouse facilities were $3.88 billion with $2.22 billion in unused capacity. In Q2 FY2025, CAF increased its estimate of lifetime losses on existing loans by $52.2 million — an 11% increase in loss expectations — due to 'the recent industry wide worsening of auto loan losses.' The allowance for loan losses was $458.7 million (2.61% of managed receivables) as of February 28, 2025, down from 2.70% three months earlier but still elevated. In fiscal 2025, depreciation and amortization was $255.3 million, and interest expense was $107.9 million. In fiscal 2025, CAF income was $581.7 million, but a 100 basis point increase in loan loss provisions would reduce CAF income by approximately $176 million. Share-based compensation, which fluctuates with the stock price, added volatility to SG&A: $137.3 million in fiscal 2025 versus $122.4 million in fiscal 2024. By offering on-the-spot financing with a 3-day payoff option, CarMax captures approximately 42.7% of retail unit financing (after payoffs) and generates $581.7 million in annual income. CAF's $17.68 billion managed receivables portfolio provides stable, recurring cash flows and customer lock-in. The company's share repurchase program provides additional EPS support, with $2.15 billion remaining under authorization as of mid-2024. In 2021, CarMax acquired Edmunds Holding Company, one of the most established online automotive information platforms, for approximately $400 million.