Analogy 1: 'Best Buy for used cars'

Analogy 2: 'Home Depot for used cars'

• Used Vehicle Sales: Selling a diverse selection of pre-owned cars, trucks, and SUVs to retail customers.
• Vehicle Financing: Providing automotive financing options through CarMax Auto Finance for customer vehicle purchases.
• Vehicle Service Plans (VSP): Offering extended service and protection plans to cover vehicle repairs and maintenance beyond the manufacturer's warranty.
• Used Vehicle Acquisition: Purchasing used vehicles directly from consumers, regardless of whether they buy a car from CarMax.
• Wholesale Vehicle Sales: Selling vehicles that do not meet their retail standards to other automotive dealers through auctions.

CarMax (symbol: KMX) primarily sells used vehicles directly to individual consumers rather than other businesses. Therefore, its major customers are individual car buyers. Below are up to three categories of customers that it serves:

1. Convenience-Oriented Buyers: These customers prioritize a straightforward, no-haggle purchasing experience. They value CarMax's transparent pricing, extensive inventory, vehicle history reports, and streamlined online and in-store process, which eliminates the traditional dealership negotiation and perceived pressure. They are willing to pay a slight premium for this ease, transparency, and peace of mind.
2. Value-Conscious & Budget-Minded Buyers: While not a discount seller, CarMax offers a wide range of reliable used vehicles across various price points. These customers are looking for good value, often backed by CarMax's inspection standards and optional extended service plans. This category includes first-time car buyers, individuals with specific budget constraints, and those seeking reliable transportation without the significant depreciation hit of a new car.
3. Sellers and Trade-in Customers: A substantial portion of CarMax's customer base consists of individuals who are looking to sell their current vehicle, often as a trade-in towards another purchase. CarMax is well-known for its efficient and competitive appraisal process, offering to buy vehicles outright even if the customer does not purchase a car from them. This attracts customers seeking a hassle-free way to dispose of their old car while potentially acquiring a new one from the same convenient source.

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David McCreight, Interim President and Chief Executive Officer

Mr. McCreight was named Interim President and Chief Executive Officer of CarMax, effective December 1, 2025. He has served on the CarMax Board of Directors for seven years. His prior leadership experience includes serving as Executive Chair of Lulu's Fashion Lounge Holdings, Inc. from 2023 to 2024 and Chief Executive Officer of Lulu's from 2021 to 2023. He also served as President of Urban Outfitters, Inc. from 2016 to 2018 and Chief Executive Officer of Anthropologie from 2011 to 2018. Earlier in his career, Mr. McCreight was President of Under Armour from 2008 to 2010 and held President and Senior Vice President roles at Lands' End from 2003 to 2008.

Enrique Mayor-Mora, Executive Vice President, Chief Financial Officer

Mr. Mayor-Mora is responsible for CarMax's financial planning, accounting, treasury, internal audit, investor relations, tax, real estate, procurement, and facilities functions. He joined CarMax in 2011 as Vice President of Finance, became Treasurer in 2016, and was promoted to Chief Financial Officer in 2019. Mr. Mayor-Mora has been instrumental in CarMax's capital allocation strategy, including the $404 million acquisition of Edmunds in June 2021. Before joining CarMax, he served as Vice President of Financial Planning and Analysis and Investor Relations at Denny's Corporation from 2005 to 2011, where he led a re-franchising program that resulted in the sale of over 300 franchise units. He also held financial positions at Gap, Inc. from 2001 to 2005.

Diane Cafritz, Executive Vice President, Chief Innovation & People Officer

Ms. Cafritz is responsible for driving company performance, innovation, and sustainable growth, as well as creating an iconic experience for both customers and associates. She joined CarMax in February 2003 as head of litigation.

Jon Daniels, Executive Vice President, CarMax Auto Finance

Mr. Daniels oversees all strategic and managerial aspects of the finance experience at CarMax, including the approximately $18 billion captive finance company and relationships with lending partners. He joined CarMax Auto Finance (CAF) in 2008 as Vice President, Risk and Analytics, and has over 25 years of experience in the credit and lending sector. His career includes roles at major financial institutions such as AT&T Universal Card, Citibank, and HSBC. Prior to CarMax, he spent seven years with Metris and supported its successful merger with HSBC in 2005.

Joe Wilson, Executive Vice President, Chief Operating Officer

Mr. Wilson leads field strategy and store execution for CarMax's more than 230 stores nationwide, its auction business, customer experience centers, and logistics services. He also leads the company's pricing and inventory strategies. Mr. Wilson began his career at CarMax in 1995 as a buyer-in-training and has held progressively senior roles within the company, including senior vice president, store strategy and logistics, and regional vice president of merchandising.

The clear emerging threat to CarMax is the rise of digitally native, online-only used car retailers such as Carvana, Vroom, and Shift. These companies offer a full e-commerce experience, including virtual vehicle tours, online financing, and home delivery, directly competing with CarMax's established omnichannel model. While some of these online competitors have faced recent financial challenges, their business model represents a significant disruption by providing an alternative purchasing experience that can capture market share from consumers prioritizing a purely digital transaction and maximum convenience.

• Used Car Sales: The addressable market size for used car sales in the U.S. was approximately USD 322.01 billion in 2024. This market is projected to grow to nearly USD 539.70 billion by 2034. In terms of units, the U.S. used car market reached 38.6 million units in 2025 and is estimated to reach 51.4 million units by 2034.
• Used Car Financing: The addressable market size for used car financing in North America, with the United States being a significant component, is valued at USD 259.71 billion. This market is expected to reach USD 413.23 billion over the next five years.
• Car Maintenance and Repair Services: null
• Wholesale Used Car Auctions: null

1. Enhancing the Omni-channel Customer Experience and Digital Capabilities: CarMax is focusing on seamlessly integrating its online and in-store experiences, including continuous improvements to its digital platform for remote browsing, financing, and personalized recommendations. This strategy aims to expand its market reach and enhance customer convenience, driving sales growth.
2. Expanding CarMax Auto Finance (CAF) Penetration: The company plans to increase its CarMax Auto Finance (CAF) penetration from the current 42-43% to 50%. This expansion of its financing arm is a direct driver of finance income, contributing to overall revenue.
3. Growth in Extended Protection Plans (EPP) and Service Revenue: CarMax anticipates increased revenue from its Extended Protection Plans (EPP) and service offerings. Both EPP and service margins have shown growth, and the company expects continued improvements in service margins.
4. Increasing Market Share in Used Vehicle Sales: CarMax aims to grow its market share of 0-10 year-old vehicles in the U.S. from approximately 3.7% to over 5%. Achieving this goal would result in a significant increase in used vehicle unit sales and, consequently, revenue.

Share Repurchases

• CarMax repurchased $576.478 million in shares during fiscal year 2022.
• Share repurchases amounted to $333.932 million in fiscal year 2023 and $94.086 million in fiscal year 2024.
• For fiscal year 2025, total repurchases were approximately $519.09 million, and CarMax had $2.26 billion remaining under its share repurchase authorization as of May 31, 2024.

Outbound Investments

• CarMax reported $0 in annual net acquisitions/divestitures for fiscal years 2023, 2024, and 2025, indicating no significant outbound investments.

Capital Expenditures

• Capital expenditures for the first quarter of fiscal year 2026 (ended May 31, 2025) were $136.7 million.
• A primary focus of capital expenditures in fiscal year 2025 was targeting the opening of five new stores.