Loading...
•
Aug 31, 2025
CarMax Q2 2026 Earnings Report
CarMax reported Q2 results with revenue and earnings down year-over-year, impacted by soft retail unit sales and increased loan loss provisions.
Key Takeaways
CarMax saw a decline in retail and wholesale vehicle sales in Q2 FY2026. Gross profit and net income were lower than the prior year, but margins held steady. SG&A costs were slightly reduced, and the company emphasized long-term efficiency and customer experience enhancements.
Revenue by Segment
Forward Guidance
CarMax remains focused on long-term strategic execution, including cost reductions and brand positioning, despite short-term volume headwinds.
Positive Outlook
- New brand campaign 'Wanna Drive?' launched to enhance omni-channel experience
- SG&A reduction plan targeting at least $150M over 18 months
- CAF tightening credit standards has stabilized new loan vintages
- Online-enabled retail sales reached 80%
- Executed $180M in share repurchases during the quarter
Challenges Ahead
- Retail used unit sales declined 5.4% YoY
- Comparable store sales fell 6.3%
- CAF income dropped 11.2% due to higher loan loss provisions
- Net income and EPS declined YoY
- Gross profit fell 5.6% compared to Q2 last year
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...