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Feb 28, 2025
CarMax Q4 2025 Earnings Report
CarMax posted strong Q4 performance with earnings surging and revenue growth supported by higher unit volumes and margin gains.
Key Takeaways
CarMax delivered a robust Q4 with net income of $89.9M and EPS of $0.58, up significantly from last year. Revenue reached $6.0B, driven by gains in used vehicle sales and disciplined SG&A cost management.
Revenue by Segment
Forward Guidance
CarMax anticipates continued growth in unit sales and market share, with a long-term EPS growth model in the high-teens CAGR range.
Positive Outlook
- Positioned for double-digit EPS growth over time
- Six new stores and four reconditioning centers planned for FY26
- Strong leverage in SG&A with 770 basis points improvement
- CAF income increased 8.2% on stronger net interest margins
- Online sales capabilities continue to scale with 15% penetration
Challenges Ahead
- Slight decline in gross profit per wholesale unit
- Service margin still negative, though improved
- Online revenue share slightly down YoY
- Allowance for loan losses remains elevated
- Increase in advertising spend due to timing
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
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