CarMax, Inc., together with its associated entities, functions as a prominent purveyor of previously owned automobiles across the United States. Its business ...
CarMax, Inc. (NYSE: KMX) is a leading used-car retailer headquartered in Richmond, Virginia. Founded in 1993 as a subsidiary of Circuit City, it pioneered the 'no-haggle' pricing model and a customer-friendly buying experience. The company operates through two principal segments: CarMax Sales Operations and CarMax Auto Finance (CAF). Sales Operations ...CarMax, Inc. (NYSE: KMX) is a leading used-car retailer headquartered in Richmond, Virginia. Founded in 1993 as a subsidiary of Circuit City, it pioneered the 'no-haggle' pricing model and a customer-friendly buying experience. The company operates through two principal segments: CarMax Sales Operations and CarMax Auto Finance (CAF). Sales Operations involves retail sales of pre-owned vehicles, including domestic, imported, and luxury models, as well as hybrids and electric vehicles, and the sale of extended protection plans. It also conducts wholesale auctions of older, higher-mileage vehicles. CAF provides financing to retail customers, catering to various credit profiles, and also arranges financing through third-party financial institutions. As of fiscal year 2024, CarMax has around 230 retail locations and employs about 28,000 people. The company is known for its strong corporate culture, consistently ranking on Fortune's '100 Best Companies to Work For' list. Financially, CarMax has a market cap of approximately $8.3 billion, with revenues per share around $185, and an EV/sales ratio of ~1.0. Despite a recent decline in net income, it maintains a strong market position and invests in technological innovations like online car buying and app-based features. Key leadership includes CEO Keith Barr, who took the role in 2024. CarMax's success is driven by its brand trust, broad inventory, and customer-centric approach, while facing challenges like high-interest rates and competition from online retailers.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$25.9B
-1.8%
+34.8%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$247.3M
-50.6%
+253.8%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+10.8%
-1.4%
-3.7%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-1.6%
-89.2%
+104.0%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+1.0%
-49.7%
+214.1%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$1.2B
+694.2%
+87.5%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+4.8%
+708.7%
+90.7%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
302.0%
-3.0%
-3.2%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
2.20x
-4.8%
+23.0%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator Ladies and gentlemen, thank you for standing by. Welcome to the first quarter fiscal year 2027 CarMax earnings release conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To register to ask a question at any time, please press star one on your telephone. We do ask that you please limit yourself to one question. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Mr. David Lowenstein, Vice President, Investor Relations. Please go ahead, sir.
David Lowenstein Thank you, Beau. Good morning, everyone. Thank you for joining our fiscal 2027 first quarter earnings conference call. I'm here today with Keith Barr, President and CEO, Enrique Mayor-Mora, Executive Vice President and CFO, and Jon Daniels, Executive Vice President, CarMax Auto Finance. Let me remind you, our statements today that are not statements of historical fact, including but not limited to statements regarding the company's future business plans, prospects and financial performance, are forward-looking statements we make pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on our current knowledge, expectations and assumptions and are subject to substantial risks and uncertainties that could cause actual results to differ materially from our expectations. In providing projections and other forward-looking statements, we disclaim any intent or obligation to update them.
For additional information on important factors and risks that could affect these expectations, please see our Form 8-K filed with the SEC this morning and our annual report on Form 10-K for fiscal year 2026 previously filed with the SEC. Please note, in addition to our earnings release, we have also prepared a quarterly investor presentation and both documents are available on the investor relations section of our website. Should you have any follow-up questions after the call, please feel free to contact our investor relations department at 804-747-0422, extension 7865. Lastly, let me thank you in advance for asking only one question and getting back in the queue for more follow-ups. Keith?
Keith Barr Thank you, David. Good morning, everyone, and thanks for joining us. Since our earnings call last quarter, I've continued spending my time across the entirety of our business, listening and learning while engaging with our associates, customers, and investors. These conversations have reinforced my understanding of both the strengths that differentiate CarMax from our competition and the opportunities we have to execute better, strengthen our performance, and reach our full potential. We have an award-winning people first culture, an iconic brand, an irreplaceable national footprint, and meaningful digital capabilities. No company can replicate these assets at scale. When fully …
