CarMax Inc. (KMX)

CarMax named Darren Woodell its chief accounting officer on 19 October 2026, starting 11 November 1. He takes over that duty from Enrique Mayor-Mora, who stays chief financial officer 1. Woodell has been the controller of Genworth Financial since February 2024 1.

The newest results cover the quarter ended 31 August 2026 and came out on 29 September 3. Revenue rose 19.5 percent to $7.9 billion, and earnings per diluted share were $1.16 against $0.64 a year earlier 3. Retail used-car sales rose 13.8 percent to 227,391 vehicles, and gross profit per car, the sale price less the car's cost, fell to $2,105 from $2,216, Reuters reported 5.

Chief executive Keith Barr, who took the job on 16 March 2026, calls the plan Shift into GEAR 743. It has four pillars: a great offering, an easy experience, added value and running lean 3. Barr said the quarter showed early progress, with 81 percent growth in earnings per share 3.

CarMax will host a virtual Strategic Update on 3 November at 8:00 Eastern time, with details of its growth strategy, key initiatives and milestones 3. It also said it plans to resume share repurchases in the third fiscal quarter 3. Rival Carvana reported a record 217,385 retail units for its third quarter of 2026, up 39 percent, while saying the industry was about flat 17.

CarMax opened its first store in Richmond, Virginia, in 1993, as part of Circuit City 4. The business was separated from Circuit City on 1 October 2002 and became an independent company 4. Today it calls itself the nation's largest retailer of used vehicles 4.

Fiscal 2021 was hit by the pandemic: revenue fell 6.7 percent to $18.95 billion 14. The company said its results that year were significantly affected by COVID-19, mainly in the first quarter 14. On 1 June 2021 it bought Edmunds, an online car-shopping guide, to add digital skills 4.

Fiscal 2022 was the peak: revenue rose 68.3 percent to $31.9 billion 14. Used-car revenue rose 55.5 percent, on 22.9 percent more units and a 26.7 percent higher average retail selling price 14. The company pointed to its online offer, marketing, government stimulus payments, the chip shortage that limited new-car supply, and inflation 14.

In fiscal 2023 revenue dropped 6.9 percent to $29.7 billion as used units fell 12.6 percent, partly offset by a 7.8 percent higher average retail price 13. The company named inflation, rising interest rates, tighter lending standards and low consumer confidence 13.

Revenue slipped to $26.54 billion in fiscal 2024 and $26.35 billion in fiscal 2025, a 0.7 percent decline in the second year 4. In fiscal 2025 wholesale sales fell 7.8 percent while extended protection plan revenue, the plans CarMax sells for outside insurers, rose 12.4 percent 4.

Fiscal 2026 brought revenue of $25.88 billion, down 1.8 percent, and net earnings of $247.3 million, down 50.6 percent 4. Used-car units fell 1.1 percent, and units at comparable stores fell 2.0 percent 4. The company recorded a goodwill impairment charge of $141.3 million in the fourth quarter 4.

The company tied the charge to weaker fiscal 2026 results and a lower outlook 4. Used-car profit per unit fell $58 as CarMax made deliberate pricing moves in the fourth quarter to improve sales 4.

On 4 November 2025 the board ended the employment of chief executive Bill Nash, effective 1 December, and named director David McCreight interim chief executive 12. Virginia Business reported that the company had laid off about 230 people the month before Barr was named, after about 350 in October 2025 8.

Keith Barr, the former head of hotel group InterContinental Hotels Group, was named chief executive on 12 February 2026 8. Analyst Jeff Lick of Stephens noted Barr's lack of auto retail turnaround experience, Virginia Business reported 8.

On 11 March 2026 activist fund Starboard Value said it had taken a stake and nominated two directors, urging a better digital experience, cost cuts and a new pricing structure, Reuters reported 9. It was pressing for some $300 million in cost reductions 9.

The company's proxy statement lists William Cobb and James Kessler, both recommended by Starboard, among the director nominees 15. On 14 April 2026 CarMax posted a fourth-quarter loss of $120.7 million, which Reuters tied to the goodwill charge and shrinking used-car margins 10.

In June, first-quarter revenue of $8 billion was up 6.2 percent, while total gross profit of $854 million was down 4.4 percent 11. Barr set out four strategic pillars on a 17 June earnings call, Virginia Business reported 11.

Used cars sold at retail

This is the core business: CarMax buys used cars from people and dealers, prepares them and sells them at set, no-haggle prices 4. It sold 780,684 used vehicles at retail in the fiscal year to 28 February 2026, and used-car sales were 80.0 percent of revenue 4.

Cars up to 10 years old that it sold generally ranged in price from $15,000 to $47,000 over the past three fiscal years 4. About 71 percent of fiscal 2026 used sales were cars up to 6 years old 4. In the quarter ended 31 August 2026 retail used units rose 13.8 percent to 227,391, with 81 percent of retail sales digitally supported 3.

Each car carries a 10-day money-back guarantee and a 30-day limited warranty 4. Gross profit per retail used unit was $2,105 in that quarter, $111 lower than a year earlier, which the company linked to its pricing actions to support sales 3.

Wholesale auctions

Cars that do not meet CarMax's retail standards, based on age, mileage or condition, are sold to licensed dealers at its own auctions 4. It sold 538,203 vehicles this way in fiscal 2026, and wholesale was 17.4 percent of revenue 4.

In the quarter ended 31 August 2026 wholesale units rose 15.9 percent to 160,344, while gross profit per wholesale unit fell $135 to $858 3. The typical car sold at these auctions is more than 11 years old with more than 100,000 miles 4.

CarMax Auto Finance

CarMax Auto Finance, or CAF, is the company's own lender, which finances only customers buying cars from CarMax 4. It serviced about 1.0 million customer accounts in a $16.37 billion portfolio of auto loans on 28 February 2026 4.

CAF income, its earnings after loan losses and costs, was $562.7 million in fiscal 2026 and $135.6 million in the quarter ended 31 August 2026, up 32.1 percent 43. CAF financed 22 percent of Tier 2 volume, loans to borrowers with weaker credit, against 10 percent a year earlier 3.

Banks and credit unions are CAF's main competitors for used-car loans 4. The allowance for loan losses was $497.3 million, or 3.07 percent of loans held for investment, on 31 August 2026 3.

Protection plans, service and Edmunds

CarMax sells extended protection plans, which are service contracts and loan-balance cover run by outside firms, and earned $448.7 million from them in fiscal 2026 4. Assurant, CNA National Warranty and Fidelity Warranty Services were its service-plan providers on 28 February 2026 4.

About 52 percent of retail used buyers also bought a service plan in fiscal 2026 4. Plan margin per retail unit was $623 in the quarter ended 31 August 2026, up $46 3.

Edmunds, a car-shopping guide bought in 2021, earned advertising and subscription revenue of $144.5 million in fiscal 2026 4. Its sales team also signs up dealers for MaxOffer, a tool that gives licensed dealers an instant offer for their cars 4.

Stores and sites

CarMax ran 256 used car stores in 110 U.S. television markets on 28 February 2026, and 258 on 31 August 2026 42. California had 34 stores, Texas 27 and Florida 24 4.

Of the 258 stores, 173 sit on owned sites and 85 on leased sites 2. It also runs seven stand-alone reconditioning and auction facilities, and owns its Richmond home office 4.

People

Keith Barr is president and chief executive 4. The annual report also names Enrique Mayor-Mora as finance chief, Charles Wilson as chief operating officer, Jon Daniels as head of CAF and Shamim Mohammad as technology chief 4.

Elizabeth Dirgins joined in October as chief digital and customer officer, overseeing marketing, product and Edmunds 6. Jeff Campbell leads a new strategy function that includes data science, AI and pricing 62.

Diane Cafritz, the chief people and innovation officer, is due to leave in December 6. The company has about 28,000 associates, and it laid off about 145 corporate employees in September 11.

Rivals

The used-car market is spread thin: the company counts franchised dealers, online platforms, independent dealers and private sellers as competitors 4. It estimates it sold about 3.6 percent of cars aged up to 10 years sold nationwide in calendar 2025, down from 3.7 percent 4.

Carvana, the online seller, reported 217,385 retail units in its third quarter of 2026 against CarMax's 227,391 in a quarter that ended a month earlier 173. Carvana described itself as the fastest-growing automotive retailer 17.

Current problems

Profit on each car is thinner: gross profit per retail used unit fell $111 in the latest quarter 3. Reuters reported a shortage of cheaper cars, with vehicles below $15,000 at only 29 days' supply, 15 days below the industry average, per Cox Automotive 5.

CarMax is not authorized to carry out recall repairs, and some vehicles it sells may have unrepaired safety recalls 4. Leverage was slightly above its targeted range, which is why buybacks paused in the fourth quarter of fiscal 2026 4.

The umbrella, in words

The main brands are CarMax, which sells and buys used cars; CarMax Auto Finance, its lender; Edmunds, the car-shopping guide; MaxOffer, the dealer offer tool; and Skye, its AI-powered virtual assistant 4.

The annual report's subsidiaries exhibit lists four: CarMax Auto Superstores, Inc. (Virginia), CarMax Business Services, LLC (Delaware), CarMax Enterprise Services, LLC (Virginia) and Glen Allen Insurance, Ltd. (Bermuda) 16. The exhibit does not say which are listed on an exchange, and CarMax is itself a holding company that operates through subsidiaries 4.

Its stakes in other companies are small: in the six months to 31 August 2026 it converted a $4.5 million note receivable into an equity investment, an investment tie 2. It also keeps retained interests in loan securitizations it no longer consolidates, which it values at fair value 2.

Land and plants: 171 of 256 stores stood on owned sites on 28 February 2026 4. Its CAF office in Atlanta, Georgia, is leased 4.

Control is spread across institutions: BlackRock reported 16,748,605 shares, or 11.8 percent, AQR 5.6 percent, Vanguard Capital Management 5.3 percent and Vanguard Portfolio Management 5.2 percent, as of 31 March 2026 15. Only one class of common stock is outstanding, 141,942,807 shares on 28 September 2026 2.

Starboard Value, an activist fund, disclosed a stake on 11 March 2026 and recommended two directors, but it is not among the holders above 5 percent in the proxy statement 915.

CarMax will hold a virtual Strategic Update on 3 November 2026, where it says it will give details on its strategy for growth, key initiatives and milestones 32.

The company intends to resume share repurchases at a modest level in the third quarter of its fiscal year, with $1.31 billion left on the board's authorization as of 31 August 2026 3. It repurchased no shares in the August quarter 3.

CarMax's goal is $200 million of savings in SG&A, its selling and administrative costs, as an exit rate by the end of fiscal 2027, with the full effect expected in fiscal 2028 2. It expects about half of the savings in fiscal 2027 to be offset by higher incentive pay and other costs 2.

On pricing, the company says it plans a more dynamic approach to margin management and expects used margins for fiscal 2027 to decline by less than $200 per unit 2. It expects extended protection plan margin to rise about $35 per unit in fiscal 2027 2.

Capital spending is estimated at about $400 million in fiscal 2027, against $541.0 million in fiscal 2026 2. For the rest of the year it anticipates opening one store, one reconditioning and auction center and one auction facility 2.

CarMax is terminating its pension plan and expects the work to be materially complete by the end of fiscal 2027 2. It estimates a settlement charge of about $50 million in fiscal 2027 and about $6 million of severance in the third quarter 2.

Leadership changes are dated: Darren Woodell starts as chief accounting officer on 11 November 2026 1, and Jeff Campbell reports to Barr from January 2027 6. Diane Cafritz leaves in December 6.

Barr's stated goal is strong unit sales and earnings growth that lets CarMax consistently reward shareholders 2.