CarMax Reports Mixed Financial Results for Q2 2025, Despite Slight Decline in Revenues

CarMax, Inc., the largest retailer of used vehicles in the U.S., reported its financial results for the three and six months ended August 31, 2024, revealing a mixed performance compared to the previous fiscal period.

For the three months ended August 31, 2024, CarMax generated net sales and operating revenues of $7,013.5 million, a slight decrease of 0.9% from $7,073.8 million in the same period of 2023. Used vehicle sales increased by 1.5% to $5,677.1 million, while wholesale vehicle sales fell by 12.7% to $1,154.5 million. Extended protection plan revenues rose significantly by 19.3% to $121.4 million. Gross profit for the quarter was $760.5 million, reflecting a 9.1% increase from $696.8 million in the prior year, driven by higher used vehicle gross profit, which rose to $478.8 million.

Net earnings for the three months ended August 31, 2024, were $132.8 million, an increase of 11.9% from $118.6 million in the same period last year. Basic and diluted net earnings per share improved to $0.85, up from $0.75 in the prior year.

For the six months ended August 31, 2024, total net sales and operating revenues decreased by 4.3% to $14,126.9 million, compared to $14,760.9 million in the same period of 2023. Used vehicle sales for the six months also declined by 2.1% to $11,354.6 million. Net earnings for this period were $285.2 million, down 17.8% from $346.9 million in the previous year, with basic and diluted earnings per share at $1.82, down from $2.19.

The company’s total current assets decreased to $4.86 billion as of August 31, 2024, from $5.23 billion at the end of February 2024. Cash and cash equivalents also fell to $524.7 million from $574.1 million. However, total assets increased slightly to $27.30 billion, and total shareholders’ equity rose to $6.18 billion.

CarMax has continued to focus on enhancing its customer experience, with significant investments in technology and digital capabilities. The company completed a nationwide rollout of a new order processing system and is testing customer shopping accounts to streamline the buying journey. Additionally, CarMax has launched an electric vehicle hub on its website to assist consumers.

In terms of strategic developments, CarMax opened two new stores in existing markets during the first half of fiscal 2025 and plans to open additional locations. The company also reported a significant increase in vehicle purchases, with approximately 300,000 vehicles acquired in Q2 of fiscal 2025, a 2.9% increase from the prior year quarter.

Overall, while CarMax experienced a decline in total revenues and net earnings for the six-month period, it showed resilience in gross profit and continued to invest in growth initiatives and technology enhancements.