CarMax, Inc. reported its financial results for the second quarter and first six months of fiscal 2026, revealing a decline in net sales and operating revenues. For the three months ended August 31, 2025, the company generated $6.59 billion in revenues, a decrease of 6% compared to $7.01 billion in the same period last year. For the first half of the fiscal year, revenues were slightly up at $14.14 billion, reflecting a marginal increase of 0.1% from $14.13 billion in the prior year. Net earnings for the second quarter fell to $95.4 million, down 28.2% from $132.8 million a year earlier, while net earnings for the first six months increased by 7.2% to $305.8 million.
The decline in quarterly revenues was primarily attributed to a 5.4% decrease in used vehicle sales, which totaled $5.27 billion, and a 2.2% drop in wholesale vehicle sales. The average selling price for used vehicles also saw a slight decline of 1% to $25,993. In contrast, the company reported a 1.8% increase in used unit sales for the first half of the fiscal year, indicating a mixed performance across different periods. The gross profit for the second quarter was $717.7 million, down 5.6% from the previous year, while gross profit for the first six months rose to $1.61 billion, a 3.8% increase.
In terms of operational developments, CarMax opened three new stores during the first half of fiscal 2026, bringing its total to 253 locations across 109 U.S. television markets. The company also launched a new brand positioning campaign, "Wanna Drive," aimed at enhancing its omni-channel experience. Additionally, CarMax executed a non-prime securitization transaction in September 2025, which is expected to generate a gain of approximately $25 million to $30 million in the third quarter of fiscal 2026.
The CarMax Auto Finance (CAF) segment reported a decrease in income, with $102.6 million for the second quarter, down 11.2% from the previous year. This decline was driven by an increase in the provision for loan losses, which rose to $142.2 million, reflecting unfavorable performance trends in loans originated in 2022 and 2023. The allowance for loan losses as a percentage of auto loans held for investment increased to 3.02% as of August 31, 2025, compared to 2.82% a year earlier. Looking ahead, CarMax anticipates continued growth in its omni-channel sales and plans to leverage its digital capabilities to enhance customer experiences and operational efficiencies.
About CARMAX INC
CarMax, Inc. is the largest U.S. retailer of used vehicles, offering a broad selection of quality, CarMax Quality Certified used cars through an omni-channel platform that integrates online and in-store buying. It operates retail sales, wholesale vehicle auctions, and a captive auto finance segment serving a wide credit spectrum. CarMax’s no-haggle pricing, extensive inventory, proprietary technology, and customer-centric approach differentiate its integrated vehicle retail and financing business model.
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