Revenue and profitability
- Q4 2026 Revenue: $4,522,734,000 (YoY: -30.10%, QoQ: -27.54%)
- Gross Profit: $420,197,001; Gross Margin: 9.29% (YoY: -44.87%; QoQ: -36.70%)
- Operating Income: -$339,436,000; Operating Margin: -7.50% (YoY and QoQ not explicitly stated in the data, but clearly negative)
- Net Income: -$120,684,000; Net Margin: -2.67%; EPS diluted: -$0.77; Adjusted EPS: $0.34 (vs. $0.64 prior year)
- EBITDA: -$72,578,000; EBITDA Margin: -1.60%
CarMax Auto Finance (CAF)
- CAF income: $144,000,000 (YoY: -$16,000,000)
- Loan loss provision: $74,000,000
- Net interest margin on CAF portfolio: 6.3%
- CAF reserves: $453,000,000 (2.78% of auto loans held for investment)
- Held-for-sale nonprime pool: $100,000,000
- Origination volume (Q4): ~$1.9 billion; penetration 42.8% net of 3-day payoffs; Tier 2/3 penetration 25.6%
Cash flow and liquidity
- Operating cash flow: -$554,267,000
- Capex: -$133,027,000
- Free cash flow: -$687,294,000
- Net change in cash: -$49,953,000; Cash at end of period: $862,850,000
Balance sheet highlights
- Total assets: $26,367,903,000
- Cash and cash equivalents: $122,826,000; Inventory: $4,137,005,000
- Total current assets: $5,310,402,000; Total current liabilities: $2,414,805,000
- PPE net: $4,070,293,000
- Total liabilities: $20,479,047,000; Total stockholders’ equity: $5,888,856,000
- Total debt: $2,768,191,000; Net debt: $2,645,365,000
Capital allocation and guidance
- Q4 capital actions: repurchased 1.3 million shares for $50 million; remaining buyback authorization: $1.31 billion
- FY27 guidance highlights: SG&A exit-rate reductions of $200 million; capex around $400 million; 4 new stores and 4 off-site locations planned; pending strategic plan headlines in June; paused share repurchases due to leverage above target; continued focus on funding flexibility for CAF.
- Strategic priorities: dynamic margin management; EPP/MaxCare redesign rollout expected to contribute ~$35 per unit in FY27 margins; emphasis on price competitiveness, inventory positioning, and digital-enabled customer journeys.