CarMax’s QQ2 FY2026 results reflect a modest year-over-year revenue decline amid a softer used-vehicle environment, offset by meaningful near-term cost reductions and CAF financing contributions. Management emphasized a multi-pronged plan to restore growth and profitability through price/selection discipline, brand investment via the Wanna Drive campaign, and substantial SG&A efficiencies of at least $150 million over the next 18 months. The quarter featured robust CAF activity in aggregate (over $2 billion originated) with a CAF income of $103 million, but a notable loan-loss reserve adjustment (provision) of $142 million reflecting vintage-specific delinquencies and loss expectations adjustments. The company also advanced its funding strategy via a $900 million securitization (25-B) with off-balance-sheet treatment and expects gain on sale in Q3, plus servicing-related income of $40–$45 million over the life of the transaction. Strong operating cash flow supported a solid free cash flow delivery of $654 million, enabling continued share repurchases and a resilient balance sheet, though net debt remained elevated at roughly $17.2 billion. Management remains optimistic about gaining market share in a large, fragmented market, aided by pricing agility, improved inventory positioning, and a more favorable brand trajectory. The near-term path will hinge on consumer credit dynamics, macro volatility, and the pace at which SG&A savings translate into topline enhancements and margin expansion.