Overview: CarMax reported Q1 2026 revenue of $7.546B, up 6.1% year-over-year (YoY) and 25.7% quarter-over-quarter (QoQ), reflecting stable demand for used vehicles amid a seasonally stronger first quarter. Gross profit reached $893.6M with a gross margin of 11.84%, and operating income was $234.0M, yielding an operating margin of 3.10%. EBITDA stood at $587.5M (EBITDA margin ~7.78%), and net income was $210.4M, or $1.38 per diluted share, up meaningfully YoY and QoQ. Free cash flow (FCF) was $162.8M on $299.5M of operating cash flow and $136.7M of capital expenditures, contributing to a cash balance of $989.2M at period end. Growth drivers included favorable mix, disciplined SG&A, and improving pricing power in the franchise, complemented by ongoing stock repurchases (net buybacks of ~$204.0M) and positive operating cash generation.