CarMax targets $200M in savings exiting fiscal 2027
The framework pairs approximately $500 million of annual capital expenditures from fiscal 2028 with a long-term leverage target range of 1.5x to 2.0x.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
CarMax, Inc. (KMX) outlined its “Shift into GEAR” strategy, built around Great Offering, Easy Experience, Add Value and Run Lean. Initiatives include competitive pricing and broader inventory selection, a connected digital-to-store buying experience, staged expansion of CarMax Auto Finance (CAF) into Tier 2 lending, and lower reconditioning, logistics and SG&A costs.
For fiscal 2030, CarMax targets a mid-single-digit compound annual growth rate (CAGR) in used retail units and a mid-teens CAGR in adjusted earnings per share (EPS), using fiscal 2026 as the base; these targets assume a stable operating environment. The fiscal 2026 adjusted EPS base is $2.91. CarMax targets $200 million in run-rate savings exiting fiscal 2027 and a 40% CAF share of Tier 2 by fiscal 2030, compared with 10% in Q2 FY26. It expects hundreds of dollars per car in reconditioning and logistics savings by fiscal 2030, with savings reinvested in pricing and growth.
Filing Explained
CarMax plans about $500 million in annual capital spending from fiscal 2028; Tier 2 growth is expected to bring near-term loan-loss provisions.
This Form 8-K furnishes CarMax’s strategic-update release and presentation; the materials describe forward-looking plans and targets, not completed outcomes. The capital framework plans about
For CarMax Auto Finance, Tier 2 expansion remains staged: the presentation says upfront loss provisions are expected to weigh on near-term income, with expansion paced as loan performance aligns with expectations. It describes held-for-sale loans as capturing value while avoiding provision, while held-for-investment loans generate income over the loan’s life.
8-K Event Classification
2 items: 7.01, 9.01
2 items
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Used retail unit CAGR: Mid-single-digit CAGR
Adjusted EPS CAGR: Mid-teens CAGR
Adjusted EPS base: $2.91 per share
+3 more
6 metrics
Used retail unit CAGR
Mid-single-digit CAGR
Fiscal 2026–fiscal 2030 target; stable operating environment assumed.
Adjusted EPS CAGR
Mid-teens CAGR
Fiscal 2026–fiscal 2030 target; fiscal 2026 is the base.
Adjusted EPS base
$2.91 per share
Fiscal 2026 base for the adjusted EPS CAGR.
Run-rate savings
$200 million
Target exiting fiscal 2027.
CAF share of Tier 2
40%
Target by fiscal 2030, compared with 10% in Q2 FY26.
Capital expenditures
Approximately $500 million per year
Planned starting in fiscal 2028.
Key Terms
CAGR, Adjusted EPS, Tier 2, run-rate savings, +1 more
5 terms
CAGR financial
"mid-single-digit CAGR in used retail units"
Compound Annual Growth Rate (CAGR) measures the average yearly growth of an investment, revenue, or other metric over a multi-year period as if it had grown at a steady rate each year. Think of it like the constant speed that would take you from the starting value to the ending value over the same time—useful because it smooths out ups and downs and lets investors compare different assets or performance periods on an even footing.
Adjusted EPS financial
"mid-teens CAGR in adjusted EPS"
Adjusted earnings per share (adjusted eps) is a measure of a company's profit per share that has been modified to exclude certain one-time or unusual items, such as costs from restructuring or asset sales. It provides a clearer picture of the company’s core performance by removing events that may distort the usual earnings. Investors use adjusted eps to better understand a company's ongoing profitability and compare it more accurately over time.
Tier 2 financial
"expanding into Tier 2 in disciplined stages"
Tier 2 refers to a class of supplementary regulatory capital that financial firms hold in addition to their core, highest-quality capital. It acts like a secondary cushion that can absorb losses in bad times but is considered lower quality than primary capital because it may be repaid later or only used after stronger buffers are gone. Investors care because the size and mix of tier 2 capital affect a firm’s resilience, borrowing costs and perceived risk—similar to having a second savings account that offers extra protection but is less reliable than your emergency fund.
run-rate savings financial
"$200M run-rate savings exiting FY27"
Run-rate savings are the annualized amount of cost reduction a company expects to sustain going forward after a one-time change, measured by taking recent monthly or quarterly savings and projecting them over a year. Investors care because this shows how permanent and scalable expense cuts or efficiency gains will improve future profit trends, like checking the steady speed a car will hold after you stop braking.
APR financial
"Typical APR 14–22%"
Annual Percentage Rate (APR) is the yearly cost of borrowing money expressed as a percentage, combining interest and most fees into a single rate so borrowers can compare loans like comparing price tags. For investors, APR matters because it affects how much companies pay to raise capital, influences consumer demand for credit, and helps compare returns or costs across loans, bonds, and financial products — all of which can change profits and valuations.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What are KMX’s targets through fiscal 2030?
CarMax targets a mid-single-digit CAGR in used retail units and a mid-teens CAGR in adjusted EPS through fiscal 2030, using fiscal 2026 as the base. The targets assume a stable operating environment; fiscal 2026 adjusted EPS of $2.91 is the base for the EPS CAGR.
How much cost savings does KMX expect from Shift into GEAR?
CarMax targets $200 million in run-rate savings exiting fiscal 2027 and expects hundreds of dollars per car in reconditioning and logistics savings by fiscal 2030.
What APR does CAF list for Tier 2 loans?
CarMax lists a typical Tier 2 APR of 14%–22%. The presentation says APRs reflect the 25th–75th percentiles by tier.
How much does CarMax plan to spend on capital projects?
The capital allocation plan lists approximately $500 million per year starting in fiscal 2028 for physical locations, technology modernization and AI capabilities.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (date of earliest event reported)
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | |||||||||
(Address of Principal Executive Offices) | (Zip Code) | ||||||||||
(804 ) 747-0422
Registrant's telephone number, including area code
Not applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
| Item 7.01. | Regulation FD Disclosure. | ||||
| On November 3, 2026, CarMax, Inc. (the “Company”) issued a press release in connection with its previously announced virtual Strategic Update, to be held on November 3, 2026, at 8:00 a.m. Eastern Time (ET). A copy of this press release is being furnished as Exhibit 99.1 hereto. A copy of the presentation to be used during the Strategic Update is being furnished as Exhibit 99.2 hereto. The information in this Item 7.01, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section and shall not be deemed incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing. | |||||
| Item 9.01. | Financial Statements and Exhibits. | ||||
| (d) Exhibits | The following exhibits are being furnished pursuant to Item 7.01 above. | ||||
99.1 | Press release, dated November 3, 2026, issued by CarMax, Inc., entitled “CarMax Outlines Strategy to Strengthen Core Operations and Deliver Robust Growth.” | ||||
99.2 | Strategic Update presentation, dated November 3, 2026. | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CARMAX, INC. | ||||||||
| (Registrant) | ||||||||
| Dated: November 3, 2026 | By: /s/ John M. Stuckey, III | |||||||
| John M. Stuckey, III | ||||||||
| Senior Vice President, General Counsel | ||||||||
| and Corporate Secretary | ||||||||
CarMax Outlines Strategy to Strengthen Core Operations and Deliver Robust Growth
Highlights plan to improve the customer offering and experience, increase value per transaction, and lower costs
Targets mid-single-digit used retail unit CAGR and mid-teens adjusted EPS CAGR through fiscal 2030
RICHMOND, Va., November 3, 2026 – CarMax, Inc. (NYSE: KMX) will host its Strategic Update webcast today beginning at 8:00 a.m. ET and concluding at approximately 9:30 a.m. ET.
Keith Barr, President and CEO, Enrique Mayor-Mora, Executive Vice President, CFO and Jon Daniels, Executive Vice President, CarMax Auto Finance will detail the Company’s Shift into GEAR growth strategy and multi-year financial framework.
During the presentation, management will discuss:
•Shift into GEAR growth initiatives designed to deliver highly competitive pricing, greater selection, faster vehicle availability, and a more connected digital-to-store customer experience
•CAF’s disciplined expansion into Tier 2 lending, more flexible funding capabilities, and enhanced protection plan offerings that increase value per transaction
•Actions lowering reconditioning and logistics costs to support CarMax’s competitive offering and driving efficiencies in SG&A to self-fund investments and deliver strong operating leverage
•Multi-year financial framework linking Shift into GEAR execution to key targets that generate durable shareholder value creation
“CarMax has a unique foundation: an iconic and trusted brand, unmatched physical and digital scale, an integrated business model, and an award-winning culture,” said Keith Barr, President and CEO. “Shift into GEAR is about strengthening our core operations and getting the most from these advantages. Built around four connected pillars: Great Offering, Easy Experience, Add Value and Run Lean, our plan is designed to win more customers, increase value per transaction and lower costs to support competitive pricing and drive operating leverage. We expect these initiatives to drive sustained market share gains and earnings growth while positioning CarMax to realize its significant longer-term potential.”
“We are introducing a multi-year financial framework that connects Shift into GEAR to stronger financial performance and shareholder value creation,” said Enrique Mayor-Mora, Executive Vice President, CFO. “Our framework targets mid-single-digit used retail unit CAGR and mid-teens adjusted EPS CAGR through fiscal 2030 using fiscal 2026 as a base while maintaining a strong balance sheet and returning excess capital to shareholders in a disciplined manner.”
Webcast Details
A link to the live webcast and presentation materials will be available today at approximately 8:00 a.m. ET at https://join.eventcastplus.com/eventcastplus/carmax-strategic-update. Registration is required. An archived replay of the webcast will be available shortly after it concludes.
About CarMax
CarMax, the nation’s largest retailer of used autos, has earned customers’ trust for more than 30 years by leading with integrity, transparency and honesty. CarMax continues to redefine car buying and selling for millions of customers, delivering the easy and confident experience they love. CarMax has more than 255 store
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CarMax, Inc.
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locations, approximately 28,000 associates, and is proud to have been recognized for 22 consecutive years as one of the Fortune 100 Best Companies to Work For®. During the fiscal year that ended February 28, 2026, CarMax sold approximately 780,000 used vehicles and 540,000 wholesale vehicles at its auctions. In addition, CarMax Auto Finance originated $8 billion in auto loans during fiscal 2026, adding to its $16 billion portfolio. CarMax is committed to helping its communities thrive and reducing the environmental footprint of its operations. Learn more in the 2026 Responsibility Report. For more information, visit www.carmax.com.
Forward-Looking Statements
We caution readers that the statements contained in this release that are not statements of historical fact, including statements about our future business plans, operations, challenges, opportunities or prospects, including without limitation any statements or factors regarding our recent leadership transition, strategy for growth, operating capacity, sales, inventory, market share, financial and operational targets and goals, revenue, margins, expenses, liquidity, loan originations, capital expenditures, share repurchase plans, debt obligations or earnings, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by the use of words such as “anticipate,” “believe,” “commit,” “could,” “enable,” “encourage,” “estimate,” “expect,” “focus on,” “intend,” “may,” “on track,” “outlook,” “plan,” “position,” “predict,” “should,” “target,” “will” and other variations of these words or similar expressions, whether in the negative or affirmative. Such forward-looking statements are based upon management’s current knowledge, expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially from anticipated results. Among the factors that could cause actual results and outcomes to differ materially from those contained in the forward-looking statements are the following:
•Changes in the competitive landscape and/or our failure to successfully adjust to such changes.
•Changes in general or regional U.S. economic conditions, including economic downturns, inflationary pressures, fluctuating interest rates, tariffs, the effect of trade policies or related uncertainties, and the potential impact of international events (including the conflict in the Middle East).
•Changes in the availability or cost of capital and working capital financing, including changes related to the asset-backed securitization market.
•Events that damage our reputation or harm the perception of the quality of our brand.
•Significant changes in prices of new and used vehicles.
•A reduction in the availability of or access to sources of inventory or a failure to expeditiously liquidate inventory.
•The failure or inability to realize the expected benefits and objectives associated with our strategy for growth.
•Our inability to realize the benefits associated with our sales platform or initiatives designed to leverage evolving technologies, including AI.
•Our ability to repurchase shares of common stock at planned levels.
•Factors related to geographic and sales growth, including the inability to effectively manage our growth.
•Our inability to recruit, develop and retain associates and maintain positive associate relations.
•The loss of key associates from our store, regional or corporate management teams, the failure to effectively execute key executive succession plans, disruptions associated with leadership transitions, or a significant increase in labor costs.
•Changes in economic conditions or other factors that result in greater credit losses for CAF’s portfolio of auto loans than anticipated.
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CarMax, Inc.
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•The failure or inability to realize the benefits associated with our strategic investments.
•Changes in consumer credit availability provided by our third-party finance providers.
•Changes in the availability of extended protection plan products from third-party providers.
•The performance of the third-party vendors we rely on for key components of our business.
•Adverse conditions affecting one or more automotive manufacturers.
•The inaccuracy of estimates and assumptions used in the preparation of our financial statements, or the effect of new accounting requirements or changes to U.S. generally accepted accounting principles.
•The failure or inability to adequately protect our intellectual property.
•The occurrence of severe weather events.
•The failure or inability to meet our environmental goals or satisfy related disclosure requirements.
•Factors related to the geographic concentration of our stores.
•Security breaches or other events that result in the misappropriation, loss or other unauthorized disclosure of confidential customer, associate or corporate information.
•The failure of or inability to sufficiently enhance key information systems.
•Factors related to the regulatory and legislative environment in which we operate.
•The effect of evolving regulations, disclosure requirements, standards and expectations relating to environmental, social and governance matters.
•The effect of various litigation matters.
•The volatility in the market price for our common stock.
•The impact of shareholder activism.
For more details on factors that could affect expectations, see our Annual Report on Form 10-K for the fiscal year ended February 28, 2026, and our quarterly or current reports as filed with or furnished to the U.S. Securities and Exchange Commission. Our filings are publicly available on our investor information home page at investors.carmax.com. Requests for information may also be made to the Investor Relations Department by email to investor_relations@carmax.com or by calling (804) 747-0422 x7865. We undertake no obligation to update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
Contacts:
Investors:
David Lowenstein, Vice President, Investor Relations
investor_relations@carmax.com, (804) 747-0422 x7865
Media:
pr@carmax.com, (855) 887-2915
# # #
CarMax Strategic Update November 2026
2 Safe Harbor Statement and Non-GAAP Measures We caution readers that the statements contained in this presentation that are not statements of historical fact, including statements about our future business plans, operations, challenges, opportunities or prospects, including without limitation any statements or factors regarding our recent leadership transition, strategy for growth, operating capacity, sales, inventory, market share, financial and operational targets and goals including our Shift into GEAR financial targets, revenue, margins, expenses, liquidity, loan originations, capital expenditures, share repurchase plans, debt obligations or earnings, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by the use of words such as “anticipate,” “believe,” “commit,” “could,” “enable,” “encourage,” “estimate,” “expect,” “focus on,” “intend,” “may,” “on track,” “outlook,” “plan,” “position,” “predict,” “should,” “target,” “will”, “what it looks like” and other variations of these words or similar expressions, whether in the negative or affirmative. Such forward-looking statements are based upon management’s current knowledge, expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially from anticipated results. Among the factors that could cause actual results and outcomes to differ materially from those contained in the forward- looking statements are the following: changes in the competitive landscape and/or our failure to successfully adjust to such changes including changes in customer preferences or shopping behavior; changes in general or regional U.S. economic conditions, including economic downturns, inflationary pressures, fluctuating interest rates, tariffs, the effect of trade policies or related uncertainties, and the potential impact of international events (including the conflict in the Middle East); changes in the availability or cost of capital and working capital financing, including changes related to the asset-backed securitization market; events that damage our reputation or harm the perception of the quality of our brand; significant changes in prices of new and used vehicles; a reduction in the availability of or access to sources of inventory or a failure to expeditiously liquidate inventory; the failure or inability to realize the expected benefits and objectives associated with our strategy for growth; our inability to realize the benefits associated with our sales platform or initiatives designed to leverage evolving technologies, including AI; our ability to repurchase shares of common stock at planned levels; factors related to geographic and sales growth, including the inability to effectively manage our growth; our inability to recruit, develop and retain associates and maintain positive associate relations; the loss of key associates from our store, regional or corporate management teams, the failure to effectively execute key executive succession plans, disruptions associated with leadership transitions, or a significant increase in labor costs; changes in economic conditions or other factors that result in greater credit losses for CAF’s portfolio of auto loans than anticipated; the failure or inability to realize the benefits associated with our strategic investments; changes in consumer credit availability provided by our third-party finance providers; changes in the availability of extended protection plan products from third- party providers; the performance of the third-party vendors we rely on for key components of our business; adverse conditions affecting one or more automotive manufacturers; the inaccuracy of estimates and assumptions used in the preparation of our financial statements, or the effect of new accounting requirements or changes to U.S. generally accepted accounting principles; the failure or inability to adequately protect our intellectual property; the occurrence of severe weather events; the failure or inability to meet our environmental goals or satisfy related disclosure requirements; factors related to the geographic concentration of our stores; security breaches or other events that result in the misappropriation, loss or other unauthorized disclosure of confidential customer, associate or corporate information; the failure of or inability to sufficiently enhance key information systems; factors related to the regulatory and legislative environment in which we operate; the effect of evolving regulations, disclosure requirements, standards and expectations relating to environmental, social and governance matters; the effect of various litigation matters; the volatility in the market price for our common stock; and the impact of shareholder activism. For more details on factors that could affect expectations, see our Annual Report on Form 10-K for the fiscal year ended February 28, 2026, and our quarterly or current reports as filed with or furnished to the U.S. Securities and Exchange Commission. Our filings are publicly available on our investor information home page at investors.carmax.com. Requests for information may also be made to the Investor Relations Department by email to investor_relations@carmax.com or by calling (804) 747-0422 x7865. We undertake no obligation to update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise. This presentation includes non-GAAP financial measures. Reconciliations of these measures to the comparable GAAP measures are available in the appendix to this presentation.
3 Today’s Presenters Keith Barr President & Chief Executive Officer Enrique Mayor-Mora Executive Vice President & Chief Financial Officer Jon Daniels Executive Vice President, CarMax Auto Finance
1. Market Opportunity & Position 2. Shift into GEAR Strategy 3. Power of CarMax Auto Finance 4. Financial Algorithm 5. Closing Remarks and Q&A Agenda
5 Keith Barr | President & CEO A little more than 7 months in, I’m more confident than ever in our ability to capture the tremendous opportunity ahead of us. “ ”
6 Market Opportunity & Position Keith Barr | President & CEO
7 Used auto is a large, fragmented market providing significant growth runway (1) Assumes 39M sales at ASP cited by Cox Automotive · (2) Cox Automotive · (3) Automotive News Top 100 dealership groups Even the largest retailers hold only a small share of the $1T market… …creating growth opportunity for a player with the right model LARGE MARKET HIGHLY FRAGMENTED ~$1T ~39M ~10% Annual Used Car Sales1 Total Used Vehicles Sold2 Combined share of the top 10 used auto Retailers3
8 Most buyers want the best of both worlds: online and in-person 28% 63% 9% 8% 38% 54% All online Online & offline All in-person Purchase Channel: Intent vs. Actual Hybrid is what customers want, and what CarMax delivers 60%+ of customers plan to combine online and in-person steps in their used car- buying journey 90%+ still complete some part of the purchase in-store Shopper Intent Actual Used Source: Cox Automotive 2025 Car Buyer Journey Study
9 CarMax delivers digital and physical – at a scale no one can match 258 Stores nationwide1 86% Aided brand awareness1 1.1M Consumer & dealer buys 2M+ Vehicles moved $16B CAF Loan portfolio1,2 83% Retail sales supported by digital capabilities 30M+ CarMax web visits (monthly)1 1.3M Retail & wholesale cars sold (1) YTD FY2027 (2) Held for investment 33+ Years of proprietary data FY26 unless otherwise noted
10 Why CarMax is positioned for sustained growth A brand that customers know and trust The best of both worlds: Online convenience and a great in-store experience Structural advantages built over decades that are hard to replicate A leadership team and culture focused on execution Large opportunities within our control so growth doesn’t depend on the market Clear plan to strengthen the core of our operations 1 2 3 4 5 6 10
11 Keith Barr | President & CEO Shift into GEAR Strategy
12 Shift into GEAR A stronger core and the foundation for growth G GREAT OFFERING Give customers every reason to choose CarMax EASY EXPERIENCE Make it easy to do business with us ADD VALUE Maximize the value on each transaction RUN LEAN Unlock efficiencies to enable a great offering E A R
13 GREAT OFFERING Give customers every reason to choose CarMax Price Levels1 2 Deliver highly competitive prices to power growth that outpaces the market PRICE SELECTION 3 4 5 Price Allocation Price every car to its local demand with real-time market signals, to win the sale and earn the right margin Volume Acquire and produce the inventory necessary to grow saleable inventory – one of our most reliable drivers of sales Access Put more of our inventory within reach, sooner: fewer cars idle in holds, transit and reconditioning, and faster, more predictable transfers Mix Shape our inventory around what customers want to buy, so the right cars are available and turning faster Run Lean savings, reinvested in price Prices that move with the market, not behind it W H A T I T L O O K S L I K E More of the right cars to choose from, delivered faster
14 EASY EXPERIENCE Make it easy to do business with us Upper Funnel1 2 Get shoppers to the right car faster with simpler browsing, smarter search & improved car pages DIGITAL EXPERIENCE 3 4 Reservation Make every shopper count – with an improved flow that drives higher quality reservations & fewer cars sitting on hold Post-Reservation Help customers know what to expect with improved contact strategy owned by our stores In-Store Deliver on our online promise – with cars ready on arrival enabling a faster, more seamless experience STORE EXPERIENCE From first click to the keys: • Fewer steps to find the right car • Higher converting reservations, fewer idle holds • One store contact from reservation to arrival • A car ready and waiting at the door Leverage AI to enhance customer & associate experience & drive conversion W H A T I T L O O K S L I K E
15 ADD VALUE Maximize the value on each transaction Full Spectrum1 2 FINANCE ANCILLARY PRODUCTS 3 Flexible Funding Extended Protection Plans Extend CAF’s proven platform to more customers – expanding into Tier 2 in disciplined stages to capture more finance income over time Diversify CAF’s funding capabilities, providing options to balance income and risk as we grow Leverage our reinvented MaxCare and GAP product suite to earn more on every plan sold and put protection in more customers’ hands Additional detail on CarMax Auto Finance in later section Higher CAF share of Tier 2: 40% by FY30, up from 10% in Q2 FY26 Continue to diversify funding channels Example: ~$600M of receivables sold in Q2FY27 Grow EPP profit per retail unit 20%+ by FY30 W H A T I T L O O K S L I K E
16 RUN LEAN Unlock efficiencies to enable a great offering Reconditioning1 2 Digitize reconditioning end to end: more throughput, more cars fixed in-house, less cost in every car COST PER CAR SOLD SMARTER OPERATIONS 3 4 Logistics Re-engineer our network from point-to-point to hub- and-spoke, scaled nationwide: fewer, smarter moves and faster delivery Acquisition Buy more cars directly from customers, our lowest- cost source of inventory, with an instant, competitive online offer SG&A Leverage SG&A every year as we grow, with savings built into how we operate Hundreds of dollars per car in savings from reconditioning and logistics by FY30 A growing share of sellers get an instant offer $200M run-rate savings exiting FY27; strong leverage each year through FY30 W H A T I T L O O K S L I K E
17 What you can expect Four pillars, one system, driving sustained market share growth G Highly competitive prices and greater selection of cars, delivered faster, gives customers more reasons to choose CarMax for their purchase E A R A faster route to the right car, and a store that keeps our online promise to give customers the best of both worlds and turn more shoppers into buyers A proven platform, extended with discipline: more customers financed by CAF, more value per loan captured over time, increased profitability on every sale Delivering hundreds of dollars per car in savings across reconditioning and logistics and driving strong SG&A leverage funds sharper prices and increased returns
18 CarMax Flywheel Every turn of the flywheel adds to durable market share gains and EPS growth Improve Offering GEAR Grow Sales & Profit per Transaction GEAR Lower Vehicle Cost Base & Drive Operating Leverage GEAR Increase Scale & Throughput GEAR
19 Power of CarMax Auto Finance Jon Daniels | EVP, CarMax Auto Finance
20 CarMax Auto Finance A key contributor to growth Diversifies CarMax earnings: Provides additional profit engine Captive structure: Maximizes profitability; sales are a core part of the lending model 30 years of experience: Strong track record of lending, funding & servicing customers Disciplined approach: Balances growth, credit risk, and returns Scalable model: Significant volume runway and quickly growing funding capabilities 1 2 3 4 5 20
21 Extending CAF’s proven prime platform to more customers Prime Target FICO® 675+ Typical APR1 6–15% T I E R 1 T I E R 2 T I E R 3 Core of our book & historic focus Non-Prime Target FICO® ~550–675 Typical APR1 14–22% Balanced expansion to drive growth Subprime Target FICO® Below 550 Typical APR1 21–28% Not a near-term priority Significant potential within existing customer base Attractive lifetime and risk- adjusted economics Loyalty opportunity by retaining customer relationship W H A T ’ S C H A N G I N G (1) APRs reflect 25th – 75th percentiles by tier E X P E C T E D B E N E F I T S Full Spectrum is focused on expanding CAF platform further into Tier 2
22 Building lifetime earnings with disciplined credit expansion Illustrative Expected Cumulative CAF Net Income Impact Year 1 provision requirements more than offset income from Tier 2 Year 2+ income more than offsets provision and continues to grow over loan lifetime A proven approach, a deliberate pace, and funding that lets us grow with discipline Y1 Y2 Y3 Tier 1 HFI1 Tier 2 partner fees Tier 2 HFI1 C u m u la ti v e N e t In c o m e Business Challenge Near Term: Tier 2 expansion pressures CAF Income due to upfront loss provisioning How We Plan to Manage It Staged growth, expanding across Tier 2 as loan performance aligns to expectations Strategic Funding to balance risk and lifetime value capture Expected Payoff Held for Investment loans generate substantial income Held for Sale loans capture sizeable value while avoiding provision FY30 Target: 40% penetration of CarMax’s Tier 2 Tier 2 HFS2 (1) Reflects loans Held for Investment | (2) Reflects loans Held for Sale
23 Financial Algorithm Enrique Mayor-Mora | EVP, CFO
24 Shift into GEAR Financial Targets (FY26-FY30) Note: All targets assume a stable operating environment | (1) CAGR base period of FY26 (2) FY26 Adjusted EPS of $2.91 is the base for the CAGR; Adjusted EPS is a non-GAAP measure; reference appendix for reconciliation Mid-Teens CAGR1 ADJUSTED EPS2 ($) Executing on GEAR positions CarMax to grow market share and earnings on a sustainable basis Mid-single- digit CAGR1 Retail Used (units) Mid-teens CAGR1 Adjusted EPS2 ($)
25 Shift into GEAR Financial Targets (FY26-FY30) Retail Units • Great Offering + Easy Experience + greater industry price transparency drive market share gains • Retail GPU consistent from FY27; several hundred dollars per unit of reconditioning & logistics savings reinvested in price MSD EPP LDD CAF Income Down LSD Flattish HSD FY27 FY281 FY29–FY302 Adjusted SG&A Expenses3 LSD Adjusted EPS Mid-teens Notes: All targets assume a stable operating environment | CAGR base period of FY26 unless otherwise noted | (1) Represents FY28 growth off FY27 base| (2) CAGR base period of FY28 | (3) FY26 adjusted SG&A of $2.40B is base for the CAGR. Adjusted SG&A is a non-GAAP measure; reference appendix for reconciliation • Leveraging enhanced products to drive growth • Renegotiation with providers • Acceleration of Tier 2 penetration drives loss provision in the near-term • Strong payoff in the medium and long-term • FY27 exit rate savings of $200M • Re-allocate savings to self-fund growth • Strong operating leverage • Share repurchases contribute low single-digits to EPS growth FY26 – FY30 CAGR DRIVERS
26 Capital allocation underpinned by strong balance sheet and cash flow generation Maintain Financial Strength Preserve a strong balance sheet and disciplined leverage1 profile within long-term target range of 1.5x to 2.0x to enable operational flexibility Grow the Core Business CapEx investment of ~$500M per year starting in FY28 • Physical locations • Technology modernization • AI capabilities CAF expansion Return Excess Capital to Shareholders Disciplined share repurchase program As Shift into GEAR improves operating and financial performance, we plan to continue to allocate capital in a disciplined and balanced manner to create long-term shareholder value (1) Leverage is a non-GAAP measure, see appendix for reconciliation
27 Closing Remarks Keith Barr | President & CEO
28 CarMax has the strategy and assets to take share and drive earnings growth Significant runway to take share CarMax operates in a ~$1 trillion market where even the largest players remain relatively small Scaled platform that is nearly impossible to replicate Our trusted brand, nationwide physical footprint and scaled digital capabilities took decades and significant capital to build, provide the model customers want, at a scale no one else has Built for how customers actually shop for and buy cars CarMax combines digital convenience with an in-store experience and can deliver both at national scale Shift into GEAR turns our advantages into growth Our strategy sharpens the offer, simplifies the experience, captures more value per sale and lowers costs to drive durable earnings growth Flywheel model designed to compound earnings More sales increase scale, lower unit costs and create earnings that we will reinvest to strengthen the offer and win the next customer 1 2 3 4 5 28
29 Q&A
APPENDIX
31 ADJUSTED NET LEVERAGE METRICS – NON-GAAP As of August 31 (In thousands) 2023 2024 2025 2026 2026 Total debt 18,382,111$ 18,783,149$ 18,707,207$ 18,051,313$ 17,402,502$ Less: Non-recourse notes payable (16,360,092) (16,866,972) (17,119,758) (15,827,609) (15,721,310) Add: Finance lease liability 183,923 219,636 204,231 192,327 199,073 Add: Term loan unamortized debt issuance costs 506 368 228 729 1,308 Total funded debt 2,206,448 2,136,181 1,791,908 2,416,760 1,881,573 Less: Unrestricted cash (1) (299,758) (559,142) (231,960) (107,826) (155,525) Add: 6x rent expense (2) (5) 620,886 625,296 647,982 720,815 712,726 Adjusted net debt 2,527,576$ 2,202,335$ 2,207,930$ 3,029,749$ 2,438,774$ Twelve months ended August 31 (In thousands except ratio) 2023 2024 2025 2026 2026 Net earnings 484,762$ 479,204$ 500,556$ 247,290$ 292,445$ Add: Interest expense 120,398 124,750 107,941 110,394 120,513 Add: Income tax provision 152,043 162,392 168,804 136,143 162,384 Add: Depreciation and amortization (3) 245,056 239,455 272,801 312,620 347,128 Add: Share-based compensation expense, excluding ESPP 85,592 119,720 134,709 99,018 102,068 Add: Net other (4) (32,522) 11,806 10,093 147,664 127,192 Adjusted EBITDA 1,055,329 1,137,327 1,194,904 1,053,129 1,151,730 Add: Rent expense (2) 103,481 104,216 107,997 136,010 130,521 Adjusted EBITDAR 1,158,810$ 1,241,543$ 1,302,901$ 1,189,139$ 1,282,251$ Net leverage ratio 2.2 1.8 1.7 2.5 1.9 (1) Unrestricted cash represents cash and cash equivalents in excess of $15 million. (2) Rent expense includes operating lease cost as well as expense related to certain non-lease components, such as executory costs and maintenance. (5) Rent expense for purposes of calculating adjusted net debt does not apply a multiple to the expense related to the lease abandonment recorded in fiscal 2026. (3) Includes amounts classified within depreciation and amortization, cost of sales and CAF income on the consolidated statements of earnings as well as software as a service amortization and amortization from AOCI related to retirement plans and cash flow hedges. (4) Includes the removal of income tax credits as well as the net impact of non-cash items on net earnings. Non-cash items primarily include fair value changes on our undesignated hedges, fair value changes on our investments in equity securities and impairment charges. Twelve months ended February 28 or 29 As of February 28 or 29
32 (Dollars in millions except per share data) 2026 SG&A expenses $ 2,453.4 Restructuring charges (1) (49.8) Adjusted SG&A expenses $ 2,403.6 Net earnings per diluted share $ 1.68 Impairment charges (2) 0.96 Restructuring charges (3) 0.35 Income tax impact of non-GAAP adjustments (4) (0.08) Adjusted net earnings per diluted share $ 2.91 (2) Includes the goodwill impairment charge recorded in fiscal 2026. (3) Includes all costs related to severance costs for our CEO change and workforce reductions as well as all costs related to the abandonment of our Edmunds lease. (4) Calculated using the blended statutory tax rate for each period. Year Ended February 28 (1) Includes the portion of costs related to severance costs for our CEO change and workforce reductions as well as costs related to the abandonment of our Edmunds lease that have been recorded in SG&A expenses. ADJUSTED SG&A AND ADJUSTED EPS – NON-GAAP