Financial highlights (QQ3 2026, USD):
- Revenue: $5.7939B, down 6.9% YoY; down 12.1% QoQ
- Gross profit: $590.0M; gross margin 10.18% (0.1018)
- Operating income: $8.68M; operating margin ~0.15%
- EBITDA: $38.36M; EBITDA margin ~0.66%
- Net income: $62.22M; net margin ~1.07%
- EPS: $0.45; diluted EPS $0.44
- CarMax Auto Finance (CAF) income: $175M; up 9% YoY; loan loss reserve: $475M or 2.87% of auto loans held for investment
- SG&A expenses: $581.37M; up 1% YoY; on track to achieve at least $150M in exit-rate savings by FY2027; ~30% headcount reduction in CarMax Customer Experience Centers (CECs)
- ASP (retail) $26,400, up $230 YoY; wholesale ASP $8,100, down $40 YoY
- Vehicles bought: ~238,000 in Q3; consumer buys ~208,000; ~30,000 via dealers (down 9% YoY)
- Stock buybacks: 4.6M shares repurchased for $2.0M; $1.36B remaining on repurchase authorization
- Cash/financial position: Management highlighted a strong balance sheet; revolver capacity of up to $2B cited; CAF funding enhancements and ongoing cost-reduction initiatives referenced.
Key qualitative takeaways from the earnings call: management framed QQ3 as a transition quarter, with leadership changes (interim CEO) and a defined plan to close the margin gap via pricing actions, increased marketing spend, SG&A reductions, and cost-of-goods-sold (COGS) optimization. The Company signaled near-term earnings pressure as it rolls out pricing and marketing changes, but believes it has the levers needed to restore profitability through unit growth, CAF expansion, and ancillary products. The CAF portfolio remains a meaningful earnings growth engine, while the broader business focus is to sharpen customer experience, accelerate digital monetization, and streamline operations.