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Feb 28
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.
CarMax
CarMax
CarMax Revenue by Segment
CarMax Revenue by Geographic Location
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