CarMax, Inc. Revenue & Financials

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. Gross profit as a percentage of net sales was 11.0% in fiscal 2025, up from 10.2% in fiscal 2024. The improvement was driven by higher used vehicle gross profit per unit ($2,311 versus $2,287 in fiscal 2024) and stronger extended protection plan margins. 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. SG&A as a percent of gross profit was 84.0%, compared with 84.3% in fiscal 2024 (which included a benefit from the Takata legal settlement). 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. Net earnings per diluted share were $3.21, up 6.3% from $3.02, reflecting earnings growth and share repurchases. Diluted weighted average shares outstanding were 156.1 million, down from 158.7 million. 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. The company's capital structure includes securitization of auto loans, warehouse facilities, and corporate debt. CAF's ending funded receivables in warehouse facilities were $3.88 billion with $2.22 billion in unused capacity. Return on equity was approximately 8.5% in fiscal 2025. The company's fiscal year ends on the last day of February, creating a reporting calendar that differs from calendar-year retailers.