$KMX

CARMAX INC

CIK:0001170010|SEC Filings

Consolidated Statements Of Earnings - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2026	Aug. 31, 2025	Aug. 31, 2026	Aug. 31, 2025
SALES AND OPERATING REVENUES:
NET SALES AND OPERATING REVENUES	$ 7,877,910	$ 6,594,684	$ 15,891,429	$ 14,141,225
TOTAL COST OF SALES	7,078,446	5,877,018	14,237,551	12,529,936
GROSS PROFIT	799,464	717,666	1,653,878	1,611,289
CARMAX AUTO FINANCE INCOME	135,560	102,638	275,801	244,288
Selling, general and administrative expenses	628,576	601,093	1,263,751	1,260,736
Depreciation, Depletion and Amortization, Nonproduction	70,105	67,285	139,318	133,024
Interest expense	31,831	28,453	65,642	55,523
Other income	(18,554)	(3,624)	(20,655)	(3,933)
Earnings before income taxes	223,066	127,097	481,623	410,227
Income tax provision	57,779	31,719	130,709	104,468
NET EARNINGS	$ 165,287	$ 95,378	$ 350,914	$ 305,759
WEIGHTED AVERAGE COMMON SHARES:
Basic, shares	141,927	149,291	141,887	150,714
Diluted, shares	142,450	149,637	142,299	151,122
NET EARNINGS PER SHARE:
Basic (in dollars per share)	$ 1.16	$ 0.64	$ 2.47	$ 2.03
Diluted (in dollars per share)	$ 1.16	$ 0.64	$ 2.47	$ 2.02
Used vehicle sales
SALES AND OPERATING REVENUES:
NET SALES AND OPERATING REVENUES	$ 6,310,930	$ 5,270,712	$ 12,702,262	$ 11,374,152
TOTAL COST OF SALES	5,832,331	4,828,095	11,722,310	10,377,352
Wholesale vehicle sales
SALES AND OPERATING REVENUES:
NET SALES AND OPERATING REVENUES	1,358,540	1,149,568	2,786,175	2,402,306
TOTAL COST OF SALES	1,220,923	1,012,248	2,479,067	2,108,415
Total other sales and revenues
SALES AND OPERATING REVENUES:
NET SALES AND OPERATING REVENUES	208,440	174,404	402,992	364,767
TOTAL COST OF SALES	$ 25,192	$ 36,675	$ 36,174	$ 44,169
NET SALES AND OPERATING REVENUES
Percentage of Sales
Item as a percent of net sales and operating revenues	100.00%	100.00%	100.00%	100.00%
Cost of revenue
Percentage of Sales
Item as a percent of net sales and operating revenues	89.90%	89.10%	89.60%	88.60%
GROSS PROFIT
Percentage of Sales
Item as a percent of net sales and operating revenues	10.10%	10.90%	10.40%	11.40%
CARMAX AUTO FINANCE INCOME
Percentage of Sales
Item as a percent of net sales and operating revenues	1.70%	1.60%	1.70%	1.70%
Selling, general and administrative expenses
Percentage of Sales
Item as a percent of net sales and operating revenues	8.00%	9.10%	8.00%	8.90%
Depreciation and Amortization, Nonproduction
Percentage of Sales
Item as a percent of net sales and operating revenues	0.90%	1.00%	0.90%	0.90%
Interest expense
Percentage of Sales
Item as a percent of net sales and operating revenues	0.40%	0.40%	0.40%	0.40%
Other (income) expense as a percent of sales
Percentage of Sales
Item as a percent of net sales and operating revenues	(0.20%)	(0.10%)	(0.10%)	0.00%
Earnings before income taxes
Percentage of Sales
Item as a percent of net sales and operating revenues	2.80%	1.90%	3.00%	2.90%
Income tax provision
Percentage of Sales
Item as a percent of net sales and operating revenues	0.70%	0.50%	0.80%	0.70%
NET EARNINGS
Percentage of Sales
Item as a percent of net sales and operating revenues	2.10%	1.40%	2.20%	2.20%
Income Statement Location [Axis]: us-gaap:CostOfRevenue \| Used vehicle sales
Percentage of Sales
Item as a percent of net sales and operating revenues	74.00%	73.20%	73.80%	73.40%
Income Statement Location [Axis]: us-gaap:CostOfRevenue \| Wholesale vehicle sales
Percentage of Sales
Item as a percent of net sales and operating revenues	15.50%	15.30%	15.60%	14.90%
Income Statement Location [Axis]: us-gaap:CostOfRevenue \| Total other sales and revenues
Percentage of Sales
Item as a percent of net sales and operating revenues	0.30%	0.60%	0.20%	0.30%
Income Statement Location [Axis]: us-gaap:Revenues \| Used vehicle sales
Percentage of Sales
Item as a percent of net sales and operating revenues	80.10%	79.90%	79.90%	80.40%
Income Statement Location [Axis]: us-gaap:Revenues \| Wholesale vehicle sales
Percentage of Sales
Item as a percent of net sales and operating revenues	17.20%	17.40%	17.50%	17.00%
Income Statement Location [Axis]: us-gaap:Revenues \| Total other sales and revenues
Percentage of Sales
Item as a percent of net sales and operating revenues	2.60%	2.60%	2.50%	2.60%

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Aug. 31, 2026	Aug. 31, 2025
OPERATING ACTIVITIES:
Net earnings	$ 350,914	$ 305,759
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	188,098	163,715
Share-based compensation expense	74,304	71,255
Provision for Loan, Lease, and Other Losses	208,975	243,904
Provision for cancellation reserves	53,315	41,897
Deferred income tax (benefit) provision	(12,620)	42,424
Proceeds from Sale, Loan, Held-for-Sale	579,907	0
Other	(39,899)	1,393
Net (increase) decrease in:
Accounts receivable, net	(19,484)	15,177
Financing Receivable, Held-for-Sale, Not Part of Disposal Group, Reconciliation to Cash Flow, Period Increase (Decrease)	(106,541)	(921,928)
Inventory	282,224	785,052
Other current assets	28,762	6,331
Auto loans held for investment, net	(564,434)	612,649
Other assets	(17,318)	(13,889)
Net decrease in:
Accounts payable, accrued expenses and other current liabilities and accrued income taxes	(51,562)	(230,470)
Other liabilities	(54,118)	(38,232)
Cash Provided by (Used in) Operating Activity, Including Discontinued Operation	900,523	1,085,037
INVESTING ACTIVITIES:
Capital expenditures	(180,442)	(268,204)
Proceeds from disposal of property and equipment	253	348
Purchases of investments	(3,373)	(5,765)
Sales and returns of investments	2,780	1,155
Proceeds from Collection of Retained Interest in Securitized Receivables	10,524	0
Cash Provided by (Used in) Investing Activity, Including Discontinued Operation	(170,258)	(272,466)
FINANCING ACTIVITIES:
Proceeds from issuances of long-term debt	3,073,100	87,000
Payments on long-term debt	(3,621,987)	(94,955)
Cash paid for debt issuance costs	(11,162)	(13,279)
Payments on finance lease obligations	(8,442)	(7,105)
Issuances of non-recourse notes payable	6,742,859	6,848,169
Payments on non-recourse notes payable	(6,849,158)	(6,911,012)
Repurchase and retirement of common stock	(2,621)	(384,873)
Equity issuances	83	8,349
Cash Provided by (Used in) Financing Activity, Including Discontinued Operation	(677,328)	(467,706)
Increase in cash, cash equivalents, and restricted cash	52,937	344,865
Cash, cash equivalents, and restricted cash at beginning of year	862,850	960,310
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD	915,787	1,305,175
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEETS:
Cash and cash equivalents	170,525	540,374
Restricted cash from collections on auto loans held for investment	604,917	618,792
Restricted cash included in other assets	140,345	146,009
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD	$ 915,787	$ 1,305,175

Consolidated Balance Sheets - USD ($) $ in Thousands	Aug. 31, 2026	Feb. 28, 2026
CURRENT ASSETS:
Cash and cash equivalents	$ 170,525	$ 122,826
Restricted cash from collections on auto loans held for investment	604,917	592,033
Accounts receivable, net	224,627	204,453
Financing Receivable, Held-for-Sale, Not Part of Disposal Group, after Valuation Allowance	106,541	100,491
Inventory	3,854,781	4,137,005
Other current assets	146,897	153,594
TOTAL CURRENT ASSETS	5,108,288	5,310,402
Auto loans held for investment, net of allowance for loan losses of $497,287 and $453,027 as of August 31, 2026 and February 28, 2026, respectively	15,812,110	15,952,291
Property and equipment, net of accumulated depreciation of $2,361,254 and $2,217,485 as of August 31, 2026 and February 28, 2026, respectively	4,078,519	4,070,293
Deferred Income Tax Assets, Net	81,868	78,479
Operating lease assets	440,965	459,514
Other assets	546,606	496,924
TOTAL ASSETS	26,068,356	26,367,903
CURRENT LIABILITIES:
Accounts payable	989,458	1,117,976
Accrued expenses and other current liabilities	525,658	475,495
Accrued income taxes	32,138	2,019
Current portion of operating lease liabilities	56,969	57,341
Current portion of long-term debt	17,693	217,323
Current portion of non-recourse notes payable	571,690	544,651
TOTAL CURRENT LIABILITIES	2,193,606	2,414,805
Long-term debt, excluding current portion	1,663,339	2,006,217
Non-recourse notes payable, excluding current portion	15,122,548	15,254,330
Operating lease liabilities, excluding current portion	439,000	464,696
Other liabilities	345,330	338,999
TOTAL LIABILITIES	19,763,823	20,479,047
Commitments and contingent liabilities
SHAREHOLDERS’ EQUITY:
Common stock, $0.50 par value; 350,000,000 shares authorized; 141,934,489 and 141,799,070 shares issued and outstanding as of August 31, 2026 and February 28, 2026, respectively	70,967	70,900
Capital in excess of par value	1,846,476	1,810,223
Accumulated other comprehensive loss	(5,683)	(34,126)
Retained earnings	4,392,773	4,041,859
TOTAL SHAREHOLDERS’ EQUITY	6,304,533	5,888,856
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 26,068,356	$ 26,367,903