Carmax Financials
This page shows Carmax (KMX) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 18 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
A thin-margin retail model is being supported by strong cash conversion even as accounting profit compresses in FY2026.
In FY2026, cash conversion strengthened sharply: operating cash flow reached$1.8B even though net income fell to$247M . Because free cash flow still came in at$1.2B after$541M of capex, earnings look weaker than cash generation, suggesting non-cash charges and balance-sheet timing mattered more than any improvement in core profitability.
Gross margin stayed close to
The balance sheet remains structurally leveraged: debt to equity was about 2.9x and long-term debt was
Financial Health Signals
Scored against operating companies for FY2026. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Carmax's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Carmax's revenue declined 1.8% year-over-year, from $26.4B to $25.9B. This contraction results in a growth score of 28/100.
Carmax has elevated debt relative to equity (D/E of 2.93), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 21/100, reflecting increased financial risk.
Carmax's current ratio of 2.20 indicates adequate short-term liquidity, earning a score of 62/100. The company can meet its near-term obligations, though with limited headroom.
Carmax has a free cash flow margin of 4.8%, earning a moderate score of 38/100. The company generates positive cash flow after capital investments, but with room for improvement.
Carmax passes 6 of 9 financial strength tests. 3 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Carmax generates $7.22 in operating cash flow ($1.8B OCF vs $247.0M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Key Financial Metrics
Earnings & Revenue
Carmax generated $25.9B in revenue in fiscal year 2026. This represents a decrease of 1.8% from the prior year.
Carmax reported $247.0M in net income in fiscal year 2026. This represents a decrease of 50.7% from the prior year.
Carmax earned $1.68 per diluted share (EPS) in fiscal year 2026. This represents a decrease of 47.7% from the prior year.
Cash & Balance Sheet
Carmax generated $1.2B in free cash flow in fiscal year 2026, representing cash available after capex. This represents an increase of 694.2% from the prior year.
Carmax held $122.8M in cash against $17.3B in long-term debt as of fiscal year 2026.
Carmax had 142M shares outstanding in fiscal year 2026. This represents a decrease of 7.1% from the prior year.
Margins & Returns
Carmax's gross margin was 10.8% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is down 0.2 percentage points from the prior year.
Carmax's net profit margin was 0.9% in fiscal year 2026, showing the share of revenue converted to profit. This is down 0.9 percentage points from the prior year.
Carmax's ROE was 4.2% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is down 3.8 percentage points from the prior year.
Capital Allocation
Carmax spent $642.8M on share buybacks in fiscal year 2026, returning capital to shareholders by reducing shares outstanding. This represents an increase of 50.0% from the prior year.
Carmax invested $541.0M in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents an increase of 15.6% from the prior year.
KMX Income Statement
| Metric | Q1'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $8.0B+34.8% | $5.9B+2.6% | $5.8B-12.1% | $6.6B-12.6% | $7.5B+25.7% | $6.0B-3.5% | $6.2B-11.3% | $7.0B |
| Cost of Revenue | $7.2B+34.0% | $5.3B+2.6% | $5.2B-11.5% | $5.9B-11.7% | $6.7B+24.7% | $5.3B-3.8% | $5.5B-11.3% | $6.3B |
| Gross Profit | $854.4M+41.2% | $605.3M+2.6% | $590.0M-17.8% | $717.7M-19.7% | $893.6M+33.8% | $667.9M-1.4% | $677.6M-10.9% | $760.5M |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | $635.2M+3.9% | $611.3M+5.1% | $581.4M-3.3% | $601.1M-8.9% | $659.6M+8.0% | $610.5M+6.0% | $575.8M-5.7% | $610.6M |
| Operating Income | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Interest Expense | $33.8M+17.6% | $28.8M+10.1% | $26.1M-8.2% | $28.5M+5.1% | $27.1M+12.1% | $24.1M-5.0% | $25.4M-5.9% | $27.0M |
| Income Tax | $72.9M+629.1% | $10.0M-53.8% | $21.7M-31.7% | $31.7M-56.4% | $72.7M+154.9% | $28.5M-30.4% | $41.0M-8.9% | $45.0M |
| Net Income | $185.6M+253.4% | -$121.0M-294.4% | $62.2M-34.8% | $95.4M-54.7% | $210.4M+133.0% | $90.3M-28.0% | $125.4M-5.5% | $132.8M |
| EPS (Diluted) | $1.31 | N/A | $0.43-32.8% | $0.64-53.6% | $1.38 | N/A | $0.81-4.7% | $0.85 |
KMX Balance Sheet
| Metric | Q1'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $26.6B+1.0% | $26.4B+3.2% | $25.6B-5.6% | $27.1B-1.1% | $27.4B-0.1% | $27.4B+0.4% | $27.3B0.0% | $27.3B |
| Current Assets | $5.8B+9.9% | $5.3B+26.5% | $4.2B-24.2% | $5.5B+1.6% | $5.5B+7.4% | $5.1B+5.4% | $4.8B-0.8% | $4.9B |
| Cash & Equivalents | $132.2M+7.7% | $122.8M-40.1% | $204.9M-62.1% | $540.4M+105.6% | $262.8M+6.4% | $247.0M-9.2% | $271.9M-48.2% | $524.7M |
| Inventory | $4.1B-1.8% | $4.1B+32.3% | $3.1B-0.7% | $3.1B-13.1% | $3.6B-7.9% | $3.9B+7.4% | $3.7B+7.9% | $3.4B |
| Accounts Receivable | $263.9M+29.1% | $204.5M+35.3% | $151.1M-12.9% | $173.6M-13.4% | $200.3M+6.1% | $188.7M-11.6% | $213.6M-6.4% | $228.1M |
| Goodwill | N/A | $0-100.0% | $141.3M0.0% | $141.3M0.0% | $141.3M0.0% | $141.3M0.0% | $141.3M0.0% | $141.3M |
| Total Liabilities | $20.5B+0.1% | $20.5B+5.0% | $19.5B-6.6% | $20.9B-1.0% | $21.1B-0.3% | $21.2B+0.4% | $21.1B-0.1% | $21.1B |
| Current Liabilities | $2.2B-10.7% | $2.4B+14.6% | $2.1B-6.5% | $2.3B-1.1% | $2.3B+3.6% | $2.2B+4.8% | $2.1B-2.7% | $2.2B |
| Long-Term Debt | $17.6B+1.7% | $17.3B+4.1% | $16.6B-6.9% | $17.8B-1.0% | $18.0B-0.7% | $18.1B-0.1% | $18.1B+0.2% | $18.1B |
| Total Equity | $6.1B+3.9% | $5.9B-2.9% | $6.1B-2.2% | $6.2B-1.4% | $6.3B+0.7% | $6.2B+0.5% | $6.2B+0.5% | $6.2B |
| Retained Earnings | $4.2B+4.6% | $4.0B-3.7% | $4.2B-1.8% | $4.3B-1.1% | $4.3B+1.1% | $4.3B+0.1% | $4.3B+0.7% | $4.2B |
KMX Cash Flow Statement
| Metric | Q1'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $17.6M+103.2% | -$554.3M-144.2% | $1.3B+59.5% | $785.5M+162.2% | $299.5M+104.6% | $146.4M+726.8% | -$23.4M-103.8% | $619.1M |
| Capital Expenditures | $103.3M-22.3% | $133.0M-4.8% | $139.8M+6.3% | $131.5M-3.9% | $136.7M+7.1% | $127.6M+0.3% | $127.2M+16.5% | $109.2M |
| Free Cash Flow | -$85.7M+87.5% | -$687.3M-161.7% | $1.1B+70.2% | $654.0M+301.7% | $162.8M+767.8% | $18.8M+112.5% | -$150.6M-129.5% | $509.9M |
| Investing Cash Flow | -$99.6M+22.6% | -$128.8M+7.2% | -$138.8M-5.7% | -$131.3M+7.0% | -$141.2M-24.9% | -$113.1M+14.6% | -$132.5M-20.9% | -$109.6M |
| Financing Cash Flow | $90.5M-85.7% | $633.1M+142.0% | -$1.5B-345.4% | -$338.3M-161.4% | -$129.4M-165.1% | -$48.8M+59.9% | -$121.6M+28.7% | -$170.7M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $2.3M-95.8% | $54.3M-73.3% | $203.6M+12.6% | $180.8M-11.4% | $204.0M+106.4% | $98.9M-15.0% | $116.3M+9.2% | $106.5M |
KMX Financial Ratios
| Metric | Q1'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 10.7%+0.5pp | 10.2%0.0pp | 10.2%-0.7pp | 10.9%-1.0pp | 11.8%+0.7pp | 11.1%+0.2pp | 10.9%+0.1pp | 10.8% |
| Operating Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Net Margin | 2.3%+4.3pp | -2.0%-3.1pp | 1.1%-0.4pp | 1.5%-1.3pp | 2.8%+1.3pp | 1.5%-0.5pp | 2.0%+0.1pp | 1.9% |
| Return on Equity | 3.0%+5.1pp | -2.1%-3.1pp | 1.0%-0.5pp | 1.5%-1.8pp | 3.4%+1.9pp | 1.5%-0.6pp | 2.0%-0.1pp | 2.1% |
| Return on Assets | 0.7%+1.2pp | -0.5%-0.7pp | 0.2%-0.1pp | 0.4%-0.4pp | 0.8%+0.4pp | 0.3%-0.1pp | 0.5%-0.0pp | 0.5% |
| Current Ratio | 2.70+0.5 | 2.20+0.2 | 1.99-0.5 | 2.46+0.1 | 2.39+0.1 | 2.31+0.0 | 2.30+0.0 | 2.25 |
| Debt-to-Equity | 2.87-0.1 | 2.93+0.2 | 2.73-0.1 | 2.870.0 | 2.86-0.0 | 2.91-0.0 | 2.920.0 | 2.93 |
| FCF Margin | -1.1%+10.5pp | -11.6%-30.8pp | 19.2%+9.3pp | 9.9%+7.8pp | 2.2%+1.9pp | 0.3%+2.7pp | -2.4%-9.7pp | 7.3% |
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Frequently Asked Questions
What is Carmax's annual revenue?
Carmax (KMX) reported $25.9B in total revenue for fiscal year 2026. This represents a -1.8% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Carmax's revenue growing?
Carmax (KMX) revenue declined by 1.8% year-over-year, from $26.4B to $25.9B in fiscal year 2026.
Is Carmax profitable?
Yes, Carmax (KMX) reported a net income of $247.0M in fiscal year 2026, with a net profit margin of 0.9%.
How much debt does Carmax have?
As of fiscal year 2026, Carmax (KMX) had $122.8M in cash and equivalents against $17.3B in long-term debt.
What is Carmax's gross margin?
Carmax (KMX) had a gross margin of 10.8% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.
What is Carmax's net profit margin?
Carmax (KMX) had a net profit margin of 0.9% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.
What is Carmax's return on equity (ROE)?
Carmax (KMX) has a return on equity of 4.2% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.
What is Carmax's free cash flow?
Carmax (KMX) generated $1.2B in free cash flow during fiscal year 2026. This represents a 694.2% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Carmax's operating cash flow?
Carmax (KMX) generated $1.8B in operating cash flow during fiscal year 2026, representing cash generated from core business activities.
What are Carmax's total assets?
Carmax (KMX) had $26.4B in total assets as of fiscal year 2026, including both current and long-term assets.
What are Carmax's capital expenditures?
Carmax (KMX) invested $541.0M in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.
What is Carmax's current ratio?
Carmax (KMX) had a current ratio of 2.20 as of fiscal year 2026, which is generally considered healthy.
What is Carmax's debt-to-equity ratio?
Carmax (KMX) had a debt-to-equity ratio of 2.93 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Carmax's return on assets (ROA)?
Carmax (KMX) had a return on assets of 0.9% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.
What is Carmax's Piotroski F-Score?
Carmax (KMX) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Carmax's earnings high quality?
Carmax (KMX) has an earnings quality ratio of 7.22x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Carmax?
Carmax (KMX) scores 25 out of 100 on our Financial Health Score, indicating weak standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.