CarMax Used-Unit Comp Sales Jump 13% in Q2

Updates

1. Sep 30, 10:16 AM ET · SEC 10-Q — CarMax's 10-Q for Q2 FY27 reports net earnings of $165.3 million, diluted EPS of $1.16, and total net sales and operating revenues of $7.88 billion.

2. Sep 29, 7:00 AM ET · SEC 8-K — CarMax's Q2 net earnings per diluted share rose 81.3% to $1.16, with total gross profit of $799.5 million and SG&A of $628.6 million.

   • Unit Sales
     • Combined retail and wholesale unit sales were 387,735, an increase of 14.7% from the prior year's second quarter.
     • Total retail used vehicle unit sales increased 13.8% to 227,391 compared to the prior year's second quarter.
     • Wholesale units increased 15.9% to 160,344 versus the prior year's second quarter.
     • Total retail used vehicle revenues increased 19.7%, driven by an increase in average retail selling price of approximately $1,600 per unit or 6.3%.
     • Total wholesale revenues increased 18.2%, with average wholesale selling price up $145 per unit or 1.8%.
     • Bought 262,570 vehicles from consumers, flat compared to last year's second quarter, and 47,537 from dealers, an increase of 53.7%.
     • Digital capabilities supported 81% of retail unit sales; omni sales were 68% and online retail sales accounted for 13% of retail unit sales.
     • Used vehicle sales were $6,310.9 million for the three months ended August 31, 2026.
     • Wholesale vehicle sales were $1,358.5 million for the three months ended August 31, 2026.
     • Average retail selling price for used vehicles was $27,623 for the three months ended August 31, 2026.
     • Average wholesale selling price was $8,036 for the three months ended August 31, 2026.
     • Comparable store used vehicle revenues increased 18.9% for the three months ended August 31, 2026.
   • Gross Profit
     • Gross profit per retail used unit was $2,105, a decline of $111 from the prior year's second quarter.
     • Gross profit per wholesale unit was $858, a decrease of $135 from the prior year's second quarter.
     • Extended Protection Plans (EPP) margin per retail unit was $623, an increase of $46 per unit.
     • Other sales and revenues increased by 19.5%, or $34.0 million, primarily reflecting an increase in EPP revenues.
     • Total gross profit was $799.5 million, up 11.4% versus last year's second quarter.
     • Retail used vehicle gross profit increased 8.1% driven by higher volume and partially offset by lower profit per used unit of $2,105.
     • Wholesale vehicle margin was $137.6 million, flat year-over-year.
     • Other gross profit was $183.3 million, an increase of 33.1%.
     • EPP margin dollars were up $26.5 million.
     • Service margin increased $22.0 million due to efficiency gains and volume growth.
     • Extended protection plan revenues were $141.6 million for the three months ended August 31, 2026.
     • Third-party finance fees, net, were $(1.8) million for the three months ended August 31, 2026.
     • Advertising & subscription revenues were $36.3 million for the three months ended August 31, 2026.
     • Other sales and revenues (specific "Other" category) were $32.3 million for the three months ended August 31, 2026.
     • Gross profit was 10.1% of net sales and operating revenues for the three months ended August 31, 2026.
     • Used vehicle gross profit was $478.6 million.
     • Used vehicle gross profit per unit was $2,105, 7.6% of used vehicle sales.
     • Wholesale vehicle gross profit per unit was $858, 10.1% of wholesale vehicle sales.
     • Other gross profit per unit was $806, 87.9% of other sales and revenues.
   • SG&A
     • SG&A expenses increased 4.6% to $628.6 million, while SG&A per total unit improved by $157, or 8.8%, to $1,621.
     • SG&A expenses were $628.6 million, 8.0% of net sales and operating revenues.
     • Compensation and benefits, excluding share-based compensation, were $334.3 million.
     • Share-based compensation expense was $29.1 million.
     • Total compensation and benefits were $363.4 million.
     • Occupancy costs were $72.7 million.
     • Advertising expense was $66.9 million.
     • Other overhead costs were $125.6 million.
   • CAF Income
     • CarMax Auto Finance (CAF) financed 22% of Tier 2 volume versus 10% a year ago.
     • CAF income benefited from $28.8 million decrease in loan loss provision to $113.4 million.
     • CAF income included a $16.6 million gain on sale of auto loans.
     • CAF income included a $6.1 million increase in servicing fees.
     • CAF income partially offset by $1.2 billion year-over-year reduction in outstanding receivables.
     • CAF’s total interest margin percentage was 6.6% of average auto loans outstanding.
     • CAF financed 40.9% of units sold, down from 42.6% prior year.
     • CAF’s weighted average contract rate was 11.8%, up 60 basis points.
     • Used vehicle financing penetration by CAF was 43.3% (before 3-day payoffs) for the three months ended August 31, 2026.
     • Used vehicle financing penetration by Tier 2 was 15.9% (before 3-day payoffs) for the three months ended August 31, 2026.
     • Used vehicle financing penetration by Tier 3 was 7.6% (before 3-day payoffs) for the three months ended August 31, 2026.
     • Used vehicle financing penetration by Other was 33.2% (before 3-day payoffs) for the three months ended August 31, 2026.
     • CAF income was $135.6 million, 1.7% of net sales and operating revenues.
     • CAF interest and fee income was $456.2 million for the three months ended August 31, 2026.
     • CAF interest expense was $(182.3) million for the three months ended August 31, 2026.
     • CAF total interest margin was $273.9 million for the three months ended August 31, 2026.
     • CAF total interest margin after provision for loan losses was $160.5 million for the three months ended August 31, 2026.
     • CAF servicing income was $6.1 million for the three months ended August 31, 2026.
     • CAF average auto loans outstanding were $16,490.9 million for the three months ended August 31, 2026.
     • CAF net auto loans originated were $2,265.5 million for the three months ended August 31, 2026.
   • Share Repurchases — No shares were repurchased during Q2 fiscal 2027. Company plans to resume share repurchases at a modest level in Q3 fiscal 2027. Repurchase and retirement of common stock was $(2,621) thousand for six months.
   • Other Income — Other income was $18.6 million, up from $3.6 million, due to unrealized gains on equity investments.
   • Store Openings — Opened an offsite auction center and store in Conroe, Texas, and a store in Richland, Washington. Opened an additional store in Austin, Texas, subsequent to quarter end.
   • Income Statement
     • Interest expense was $31.8 million, 0.4% of net sales and operating revenues.
     • Earnings before income taxes were $223.1 million, 2.8% of net sales and operating revenues.
     • Net earnings were $165.3 million, 2.1% of net sales and operating revenues.
     • Diluted weighted average shares outstanding were 142.5 million for the three months ended August 31, 2026.
   • Cash Flow
     • Net cash provided by operating activities was $900.5 million for the six months ended August 31, 2026.
     • Net cash used in investing activities was $(170.3) million for the six months ended August 31, 2026.
     • Net cash used in financing activities was $(677.3) million for the six months ended August 31, 2026.
     • Proceeds from sale of auto loans were $579.9 million for the six months ended August 31, 2026.
     • Proceeds from issuances of long-term debt were $3.07 billion for the six months ended August 31, 2026.
     • Payments on long-term debt were $(3.62) billion for the six months ended August 31, 2026.
     • Issuances of non-recourse notes payable were $6.74 billion for the six months ended August 31, 2026.
     • Payments on non-recourse notes payable were $(6,849,158) thousand for six months ended August 31, 2026.
   All 77 details

   • Combined retail and wholesale unit sales were 387,735, an increase of 14.7% from the prior year's second quarter.
   • Total retail used vehicle unit sales increased 13.8% to 227,391 compared to the prior year's second quarter.
   • Gross profit per retail used unit was $2,105, a decline of $111 from the prior year's second quarter.
   • Wholesale units increased 15.9% to 160,344 versus the prior year's second quarter.
   • Gross profit per wholesale unit was $858, a decrease of $135 from the prior year's second quarter.
   • Extended Protection Plans (EPP) margin per retail unit was $623, an increase of $46 per unit.
   • SG&A expenses increased 4.6% to $628.6 million, while SG&A per total unit improved by $157, or 8.8%, to $1,621.
   • CarMax Auto Finance (CAF) financed 22% of Tier 2 volume versus 10% a year ago.
   • Total retail used vehicle revenues increased 19.7%, driven by an increase in average retail selling price of approximately $1,600 per unit or 6.3%.
   • Total wholesale revenues increased 18.2%, with average wholesale selling price up $145 per unit or 1.8%.
   • Bought 262,570 vehicles from consumers, flat compared to last year's second quarter, and 47,537 from dealers, an increase of 53.7%.
   • Other sales and revenues increased by 19.5%, or $34.0 million, primarily reflecting an increase in EPP revenues.
   • Digital capabilities supported 81% of retail unit sales; omni sales were 68% and online retail sales accounted for 13% of retail unit sales.
   • Total gross profit was $799.5 million, up 11.4% versus last year's second quarter.
   • Retail used vehicle gross profit increased 8.1% driven by higher volume and partially offset by lower profit per used unit of $2,105.
   • Wholesale vehicle margin was $137.6 million, flat year-over-year.
   • Other gross profit was $183.3 million, an increase of 33.1%.
   • EPP margin dollars were up $26.5 million.
   • Service margin increased $22.0 million due to efficiency gains and volume growth.
   • CAF income benefited from $28.8 million decrease in loan loss provision to $113.4 million.
   • CAF income included a $16.6 million gain on sale of auto loans.
   • CAF income included a $6.1 million increase in servicing fees.
   • CAF income partially offset by $1.2 billion year-over-year reduction in outstanding receivables.
   • CAF’s total interest margin percentage was 6.6% of average auto loans outstanding.
   • CAF financed 40.9% of units sold, down from 42.6% prior year.
   • CAF’s weighted average contract rate was 11.8%, up 60 basis points.
   • No shares were repurchased during the second fiscal quarter of 2027.
   • Other income was $18.6 million, up from $3.6 million, due to unrealized gains on equity investments.
   • Opened an offsite auction center and store in Conroe, Texas, and a store in Richland, Washington.
   • Opened an additional store in Austin, Texas, subsequent to quarter end.
   • Company plans to resume share repurchases at a modest level in the third quarter of fiscal 2027.
   • Used vehicle sales were $6,310.9 million for the three months ended August 31, 2026.
   • Wholesale vehicle sales were $1,358.5 million for the three months ended August 31, 2026.
   • Extended protection plan revenues were $141.6 million for the three months ended August 31, 2026.
   • Third-party finance fees, net, were $(1.8) million for the three months ended August 31, 2026.
   • Advertising & subscription revenues were $36.3 million for the three months ended August 31, 2026.
   • Other sales and revenues (specific "Other" category) were $32.3 million for the three months ended August 31, 2026.
   • Average retail selling price for used vehicles was $27,623 for the three months ended August 31, 2026.
   • Average wholesale selling price was $8,036 for the three months ended August 31, 2026.
   • Comparable store used vehicle revenues increased 18.9% for the three months ended August 31, 2026.
   • Used vehicle financing penetration by CAF was 43.3% (before 3-day payoffs) for the three months ended August 31, 2026.
   • Used vehicle financing penetration by Tier 2 was 15.9% (before 3-day payoffs) for the three months ended August 31, 2026.
   • Used vehicle financing penetration by Tier 3 was 7.6% (before 3-day payoffs) for the three months ended August 31, 2026.
   • Used vehicle financing penetration by Other was 33.2% (before 3-day payoffs) for the three months ended August 31, 2026.
   • Gross profit was 10.1% of net sales and operating revenues for the three months ended August 31, 2026.
   • CAF income was $135.6 million, 1.7% of net sales and operating revenues.
   • SG&A expenses were $628.6 million, 8.0% of net sales and operating revenues.
   • Interest expense was $31.8 million, 0.4% of net sales and operating revenues.
   • Earnings before income taxes were $223.1 million, 2.8% of net sales and operating revenues.
   • Net earnings were $165.3 million, 2.1% of net sales and operating revenues.
   • Used vehicle gross profit was $478.6 million.
   • Used vehicle gross profit per unit was $2,105, 7.6% of used vehicle sales.
   • Wholesale vehicle gross profit per unit was $858, 10.1% of wholesale vehicle sales.
   • Other gross profit per unit was $806, 87.9% of other sales and revenues.
   • Compensation and benefits, excluding share-based compensation, were $334.3 million.
   • Share-based compensation expense was $29.1 million.
   • Total compensation and benefits were $363.4 million.
   • Occupancy costs were $72.7 million.
   • Advertising expense was $66.9 million.
   • Other overhead costs were $125.6 million.
   • CAF interest and fee income was $456.2 million for the three months ended August 31, 2026.
   • CAF interest expense was $(182.3) million for the three months ended August 31, 2026.
   • CAF total interest margin was $273.9 million for the three months ended August 31, 2026.
   • CAF total interest margin after provision for loan losses was $160.5 million for the three months ended August 31, 2026.
   • CAF servicing income was $6.1 million for the three months ended August 31, 2026.
   • CAF average auto loans outstanding were $16,490.9 million for the three months ended August 31, 2026.
   • CAF net auto loans originated were $2,265.5 million for the three months ended August 31, 2026.
   • Diluted weighted average shares outstanding were 142.5 million for the three months ended August 31, 2026.
   • Net cash provided by operating activities was $900.5 million for the six months ended August 31, 2026.
   • Net cash used in investing activities was $(170.3) million for the six months ended August 31, 2026.
   • Net cash used in financing activities was $(677.3) million for the six months ended August 31, 2026.
   • Proceeds from sale of auto loans were $579.9 million for the six months ended August 31, 2026.
   • Proceeds from issuances of long-term debt were $3.07 billion for the six months ended August 31, 2026.
   • Payments on long-term debt were $(3.62) billion for the six months ended August 31, 2026.
   • Issuances of non-recourse notes payable were $6.74 billion for the six months ended August 31, 2026.
   • Payments on non-recourse notes payable were $(6,849,158) thousand for six months ended August 31, 2026.
   • Repurchase and retirement of common stock was $(2,621) thousand for six months ended August 31, 2026.