CarMax(NYSE) KMX

CarMax, Inc. helps people buy and sell used cars. It provides many vehicles online and at nationwide stores. The company also offers financing and repair services for owners.

Used Cars and More

• Used Vehicle Sales: Retail sales of used cars through online and in-store channels; generated $12.7 billion in revenues for the first six months of fiscal 2027.
• Wholesale Vehicle Sales: Auctioning older vehicles with over 100,000 miles to licensed dealers; contributed $2.8 billion in revenues for the first half of fiscal 2027.
• CarMax Auto Finance: In-house lending services for retail vehicle buyers; managed an auto loan portfolio of $16.3 billion as of August 31, 2026.
• Extended Protection Plans: Sales of service plans and asset protection insurance; earned $275.1 million in revenues in the first six months of fiscal 2027.
• Edmunds: Online automotive information and advertising services for consumers and dealers; generated $72.9 million in revenues for the first half of fiscal 2027.

Shifting Into New Gear

• Launched the Shift into GEAR strategy to focus on competitive pricing, digital customer experiences, and operational efficiency across the business.
• Opened two new stores and two stand-alone centers for reconditioning and auctions during the first half of fiscal 2027.
• Expanded CarMax Auto Finance Tier 2 lending, which serves customers between prime and subprime credit categories, to reach 23% of total Tier 2 volume.
• Integrated artificial intelligence voice technology across all inbound store and customer experience center calls to automate inquiries.

A Nationwide Digital Network

CarMax operates 258 used car stores across 111 U.S. markets, covering approximately 85% of the population. The company uses proprietary pricing algorithms and automated customer service tools to provide transparent pricing and efficient support across its nationwide network.

Performance by the Numbers

• Net sales and operating revenues were $7.9 billion in the second quarter of fiscal 2027, up 19.5% year over year.
• Net earnings reached $165.3 million in the second quarter of fiscal 2027, up 73.3% year over year.
• Used unit sales rose to 227,391 in the three months ended August 31, 2026, up 13.8% year over year.
• Used vehicle gross profit per unit was $2,105 in the second quarter of fiscal 2027, down 5.0% year over year.
• CarMax Auto Finance (CAF) income grew to $135.6 million in the second quarter of fiscal 2027, up 32.1% year over year.

Bottom Line

CarMax has transitioned from a traditional retailer into a technology-driven platform combining physical stores with digital car-buying tools. This evolution supports its ability to reach customers through multiple channels while managing in-house financing and wholesale auction operations.