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).
CarMax runs a thin-margin retail model backed by large long-term leverage, so cash and reported profit can diverge sharply.
In FY2026, cash generation detached from earnings: operating cash flow reached$1.8B and free cash flow$1.2B . That gap versus$247M of net income and a1.0% net margin suggests the year’s cash strength came more from operating balance-sheet movements than from stronger core profitability.
From FY2023 to FY2026, revenue fell by
The balance sheet remains structurally leveraged, with long-term debt of
Financial Health Signals
Based on FY2026 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). 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 31/100.
Carmax has a moderate D/E ratio of 2.93. This balance of debt and equity financing earns a leverage score of 42/100.
Carmax's current ratio of 2.20 indicates adequate short-term liquidity, earning a score of 40/100. 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 31/100. The company generates positive cash flow after capital investments, but with room for improvement.
Carmax generates a 4.2% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 25/100. This is down from 8.0% the prior year.
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 $7.21 in operating cash flow ($1.8B OCF vs $247.3M 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 $247.3M in net income in fiscal year 2026. This represents a decrease of 50.6% 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 1.0% 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 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $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-1.4% | $7.1B |
| Cost of Revenue | $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-1.1% | $6.3B |
| Gross Profit | $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-4.0% | $791.9M |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | $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-4.4% | $638.6M |
| Operating Income | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Interest Expense | $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-13.8% | $31.4M |
| Income Tax | $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-16.9% | $54.2M |
| Net Income | -$120.7M-294.0% | $62.2M-34.8% | $95.4M-54.7% | $210.4M+134.1% | $89.9M-28.4% | $125.4M-5.5% | $132.8M-12.9% | $152.4M |
| EPS (Diluted) | N/A | $0.43-32.8% | $0.64-53.6% | $1.38 | N/A | $0.81-4.7% | $0.85-12.4% | $0.97 |
KMX Balance Sheet
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $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+0.2% | $27.2B |
| Current Assets | $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-2.2% | $5.0B |
| Cash & Equivalents | $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+139.6% | $218.9M |
| Inventory | $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-9.9% | $3.8B |
| Accounts Receivable | $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+7.4% | $212.4M |
| Goodwill | $0-100.0% | $141.3M0.0% | $141.3M0.0% | $141.3M0.0% | $141.3M0.0% | $141.3M0.0% | $141.3M0.0% | $141.3M |
| Total Liabilities | $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+0.2% | $21.1B |
| Current Liabilities | $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+8.6% | $2.0B |
| Long-Term Debt | $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-0.6% | $18.2B |
| Total Equity | $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+0.2% | $6.2B |
| Retained Earnings | $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+1.0% | $4.2B |
KMX Cash Flow Statement
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$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+626.1% | -$117.7M |
| Capital Expenditures | $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+5.1% | $103.9M |
| Free Cash Flow | -$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+330.1% | -$221.6M |
| Investing Cash Flow | -$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-3.5% | -$105.9M |
| Financing Cash Flow | $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-51.9% | -$112.4M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $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-0.4% | $106.8M |
KMX Financial Ratios
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 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%-0.3pp | 11.1% |
| Operating Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Net Margin | -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%-0.2pp | 2.1% |
| Return on Equity | -2.0%-3.1pp | 1.0%-0.5pp | 1.5%-1.8pp | 3.4%+1.9pp | 1.4%-0.6pp | 2.0%-0.1pp | 2.1%-0.3pp | 2.5% |
| Return on Assets | -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%-0.1pp | 0.6% |
| Current Ratio | 2.20+0.2 | 1.99-0.5 | 2.46+0.1 | 2.39+0.1 | 2.31+0.0 | 2.30+0.0 | 2.25-0.2 | 2.50 |
| Debt-to-Equity | 2.93+0.2 | 2.73-0.1 | 2.870.0 | 2.86-0.0 | 2.91-0.0 | 2.920.0 | 2.93-0.0 | 2.95 |
| FCF Margin | -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%+10.4pp | -3.1% |
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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 $247.3M in fiscal year 2026, with a net profit margin of 1.0%.
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 1.0% 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 7.21x, 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 28 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.