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Here are 1-3 brief analogies for CarMax (KMX):

• Best Buy for used cars
• Home Depot for used cars

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• Used Vehicle Sales: Retails a diverse selection of used vehicles to customers.
• Wholesale Vehicle Sales: Sells older, high-mileage vehicles through wholesale auctions.
• Auto Financing: Offers financing options for retail customers purchasing vehicles.
• Extended Protection Plans: Provides optional service plans for vehicles sold to customers.
• Vehicle Reconditioning and Repair Services: Delivers reconditioning and repair services for vehicles.

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CarMax (KMX) primarily sells to individuals, not other companies. Based on the company description, here are up to three categories of customers it serves:

1. Everyday Car Buyers: Individuals and households seeking to purchase a used vehicle, valuing CarMax's extensive inventory of domestic, imported, luxury, hybrid, and electric vehicles, as well as its transparent, no-haggle pricing model.
2. Financially-Assisted Buyers: Customers who require financing solutions to acquire a vehicle. CarMax caters to a broad credit spectrum through its CarMax Auto Finance division and partnerships with various financial institutions, making vehicle ownership accessible to a wide range of individuals.
3. Value-Added Service Seekers: Individuals who not only purchase a vehicle but also opt for additional protection and peace of mind. This category includes customers who choose to purchase extended protection plans (EPPs) offered at the time of sale, alongside their vehicle purchase.

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Keith Barr President and Chief Executive Officer

Keith Barr was appointed President and Chief Executive Officer of CarMax, effective March 16, 2026. Prior to joining CarMax, Mr. Barr served as the Chief Executive Officer of InterContinental Hotels Group (IHG) from July 2017 to July 2023. At IHG, he was responsible for leading global brand, loyalty, sales, and marketing functions, and oversaw a digital transformation and significant growth. Before becoming CEO, he served as Chief Commercial Officer for four years and as CEO of IHG's Greater China business for four years. Earlier in his career, he held senior positions at Bristol Hotels and Resorts, which was acquired by IHG in 2000. Mr. Barr is also a non-executive director of Yum! Brands.

Enrique Mayor-Mora Executive Vice President and Chief Financial Officer

As Executive Vice President and Chief Financial Officer, Enrique Mayor-Mora is responsible for CarMax's financial planning, accounting, treasury, internal audit, investor relations, tax, real estate, procurement, and facilities functions. He played a key role in CarMax's capital allocation strategy, including the $404 million acquisition of Edmunds in June 2021. He also led the company's store expansion strategy since 2012 and expanded funding programs for CarMax Auto Finance. Prior to joining CarMax in 2011, Mr. Mayor-Mora served as Vice President of Financial Planning and Analysis and Investor Relations at Denny's Corporation from 2005 to 2011, where he designed and advanced a re-franchising program that led to the sale of over 300 franchise units. He also held various financial positions of increasing responsibility at Gap, Inc. from 2001 to 2005, and previously worked at Deloitte Consulting Group.

Joe Wilson Executive Vice President, Chief Operating Officer

Joe Wilson serves as Executive Vice President, Chief Operating Officer, overseeing field strategy and store execution for CarMax's more than 230 stores nationwide, auction business, customer experience centers, and logistics services. He leads the company's pricing and inventory strategies and has been instrumental in improving the efficiency of sourcing and managing CarMax's inventory over the past two decades. Mr. Wilson began his career at CarMax in 1995 as a buyer-in-training and has since held a variety of leadership roles, including senior vice president of store strategy and logistics, and vice president of merchandising operations.

Jon Daniels Executive Vice President, CarMax Auto Finance

As Executive Vice President of CarMax Auto Finance (CAF), Jon Daniels is responsible for all strategic and managerial aspects of the finance experience at CarMax, encompassing the captive finance company and relationships with lending and ancillary product partners. He was crucial in guiding CarMax through the 2008 credit crisis and the 2020 economic volatility, ensuring strong credit offers and maintaining a highly regarded asset-backed securities funding program. Mr. Daniels also spearheaded the development of Finance Based Shopping, a digital, multi-lender pre-qualification product. With over 25 years of experience in credit and lending, he previously worked for major financial institutions such as AT&T Universal Card, Citibank, and HSBC. He also spent seven years with Metris and supported its successful merger with HSBC in 2005.

Shamim Mohammad Executive Vice President, Chief Information and Technology Officer

Shamim Mohammad is the Executive Vice President and Chief Information and Technology Officer at CarMax. In this role, he oversees the strategic use of technology across the company, including digital innovations and product engineering, to deliver revenue-generating products and solutions that provide competitive advantages. He leads an entrepreneurial technology team and is recognized for cultivating digital talent and fostering a culture of learning and innovation. Mr. Mohammad is passionate about building organizational agility through the innovative application of technology.

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Here are the key risks to CarMax's business:

1. Auto Loan Delinquencies and Credit Risk: CarMax faces significant risk from rising auto loan delinquencies, increased loan loss provisions, and tightening underwriting standards within its CarMax Auto Finance segment. The company's financial stability and profitability are directly impacted by the quality of its loan portfolio, and recent reports indicate increasing subprime auto loan delinquencies and higher provisions for loan losses.
2. Cyclical Nature of the Automotive Industry and Demand Fluctuations: As a retailer of used vehicles, CarMax is highly susceptible to the cyclical nature of the automotive industry and broader economic conditions. Downturns in the economy, shifts in consumer demand, and even factors like temporary demand surges (e.g., due to tariff speculation) followed by declines can significantly impact sales, revenue growth, and overall profitability.
3. Operational and Reputational Risks (Legal, Compliance, and Vehicle Quality): CarMax faces operational and reputational risks including legal and compliance challenges, such as a recent settlement with the Department of Justice (DOJ) for violating the Servicemembers Civil Relief Act (SCRA) regarding vehicle repossessions. The company has also been subject to securities fraud lawsuits alleging misleading statements and concealed risks. Additionally, inherent risks in the used car market related to unknown vehicle histories, potential mechanical issues, and customer satisfaction with vehicle reconditioning can lead to post-sale issues and impact the company's reputation.

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The emergence of online-only used car retailers, such as Carvana and Vroom, offering fully digital purchasing processes, home delivery, and simplified transactions, poses a clear emerging threat. These companies directly challenge CarMax's traditional model, which historically relies on physical store visits and an in-person sales experience, by providing an alternative that prioritizes convenience and digital-first customer interaction.

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Addressable Markets for CarMax (KMX) Main Products or Services (U.S. Region)

• Used Vehicle Retail Sales: Null
• Extended Protection Plans (Auto Extended Warranty): The U.S. auto extended warranty market size is projected to be $34.93 billion in 2025 and grow to $37.26 billion in 2026, exhibiting a compound annual growth rate (CAGR) of 6.7%.
• Reconditioning and Vehicle Repair Services (Automotive After-sales Services): The U.S. automotive after-sales services market size is estimated to be USD 211.14 billion in 2026. This market was valued at USD 183.4 billion in 2023 and is estimated to grow at a CAGR of 10.1% between 2024 and 2032.
• Financing Alternatives for Retail Customers (Used Vehicle Auto Loan Market): The U.S. auto loan market size is projected to be USD 676.20 billion in 2025. Within this, used vehicles are expected to capture 58.20% of the U.S. auto loan market share in 2025. This implies an addressable market of approximately USD 393.5 billion for used vehicle auto loans in 2025.

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CarMax (KMX) is expected to drive future revenue growth over the next two to three years through a combination of strategic initiatives focused on enhancing customer experience, expanding its financial services, and increasing its market presence.

• Enhanced Omni-Channel Customer Experience and Digital Capabilities: CarMax is focusing on its omni-channel retail experience, supported by a new brand positioning campaign. This strategy aims to empower customers to purchase vehicles on their terms, whether online, in-store, or through a combination of both. Digital capabilities already support a significant portion of retail unit sales, indicating a continued push to leverage technology for increased sales volume.

• Growth in CarMax Auto Finance (CAF) Income: The company plans to boost income from CarMax Auto Finance by executing programmatic off-balance sheet sales of financial interests in non-prime securitizations and by assessing additional off-balance sheet funding levers. These efforts are designed to accelerate CAF penetration and support a full spectrum financing strategy, contributing to overall profitability and revenue.

• Expansion of Extended Protection Plan (EPP) Revenues: CarMax anticipates continued revenue generation from its Extended Protection Plans (EPP). These plans are offered to customers at the time of sale and consistently contribute to the company's gross profit.

• Increasing Market Share in the Used Vehicle Segment: CarMax aims to increase its market share in the U.S. market for used vehicles aged 0-10 years. Despite its current position as a large used-vehicle retailer, the company holds a 3.7% market share and has ambitions to exceed 5%, indicating a focus on capturing a larger portion of the available market.

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Share Repurchases

• CarMax accelerated its share repurchases, buying back approximately $200 million worth of shares (3 million shares) in the first quarter of fiscal year 2026 (ending May 31, 2025).
• As of the first quarter of fiscal year 2026, $1.74 billion remained under CarMax's share repurchase authorization.
• In fiscal year 2025, CarMax executed approximately $428.45 million in share repurchases. The company also repurchased $94.09 million in fiscal year 2024 and $333.93 million in fiscal year 2023.

Share Issuance

• CarMax's shares outstanding have shown a declining trend over the last few fiscal years, indicating net share repurchases rather than significant share issuances. For example, shares outstanding declined by 1.67% in fiscal year 2025 (to 156 million from 159 million in 2024) and by 0.67% in fiscal year 2024 (to 159 million from 160 million in 2023).

Inbound Investments

• No information is available regarding large strategic inbound investments made by third-parties, such as a strategic partner or a private equity firm, over the last 3-5 years.

Outbound Investments

• CarMax completed the acquisition of Edmunds Holding Company on June 1, 2021, for an enterprise value of $404 million, which included CarMax's initial $50 million minority stake investment made in January 2020.

Capital Expenditures

• CarMax's capital expenditures were $467.9 million in fiscal year 2025 and $465.3 million in fiscal year 2024. The increase in fiscal year 2025 was primarily due to the timing of land purchases.
• Expected capital expenditures for fiscal year 2026 are approximately $561.8 million.
• The primary focus of capital expenditures includes supporting future long-term growth in offsite reconditioning and auction facilities, as well as opening new retail stores and investing in technology. In fiscal year 2025, CarMax opened five new retail stores and additional reconditioning and auction facilities.