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CarMax cash flow, quarter by quarter

Latest: Q2 FY27 · from the cash-flow statements filed with the SEC

Free cash flow$806M in Q2 FY27 · $1.1B over twelve months

Operating cash flow$883M
Capital spending−$77.1M
Free cash flow+$806M
Cash / net income5.3×
Cash conversion cycle41 days

Analysis

In Q2 FY27, CarMax generated $883M of operating cash flow and spent $77.1M on capital projects, leaving free cash flow of $806M. That is $152M more than in Q2 FY26 ($654M).

Over the twelve months to Aug 31, 2026, operating cash flow was $1.6B; the largest uses were other financing ($1.3B), capital spending ($453M), buybacks ($261M); besides operations, cash came from other investing ($15.1M), asset & business sales ($323K); the cash balance fell by $389M.

Operating cash flow was $883M against net income of $165M — 5.3× profit, cash ran ahead of reported earnings. The largest differences: inventory +$208M, depreciation & amortization +$95.2M, receivables +$40.0M.

Its cash conversion cycle was 41 days (receivables 3 + inventory 51 − payables 13).

Free cash flow

CarMax: free cash flow by quarterCarMax: free cash flow by quarter−$151MQ3 FY25$18.8MQ4 FY25$163MQ1 FY26$654MQ2 FY26$1.1BQ3 FY26−$687MQ4 FY26−$85.7MQ1 FY27$806MQ2 FY27
Operating cash flow less capital spending.
CarMax: operating cash flow against capital spendingCarMax: operating cash flow against capital spendingOperating cash flowCapital spending−$23.4M$127MQ3 FY25$146M$128MQ4 FY25$300M$137MQ1 FY26$785M$131MQ2 FY26$1.3B$140MQ3 FY26−$554M$133MQ4 FY26$17.6M$103MQ1 FY27$883M$77.1MQ2 FY27
Latest (Q2 FY27): Operating cash flow $883M, Capital spending $77.1M.

Capital allocation, year by year

CarMax: where the cash came from (up) and went (down), by fiscal yearCarMax: where the cash came from (up) and went (down), by fiscal yearOperating cash flowNet borrowingShares issuedAsset salesCapital spendingAcquisitionsBuybacksFY22: Operating cash flow −$2.5BFY22: Net borrowing −$11.9MFY22: Shares issued $79.8MFY22: Asset sales $12.3MFY22: Capital spending −$309MFY22: Acquisitions $242MFY22: Buybacks −$576M$334MFY22FY23: Operating cash flow $1.3BFY23: Net borrowing −$12.2MFY23: Shares issued $17.1MFY23: Capital spending −$423MFY23: Buybacks −$334M$1.3BFY23FY24: Operating cash flow $459MFY24: Net borrowing −$16.7MFY24: Shares issued $44.8MFY24: Capital spending −$465MFY24: Buybacks −$94.1M$503MFY24FY25: Operating cash flow $624MFY25: Net borrowing −$16.5MFY25: Shares issued $73.7MFY25: Asset sales $333KFY25: Capital spending −$468MFY25: Buybacks −$428M$699MFY25FY26: Operating cash flow $1.8BFY26: Net borrowing −$15.0MFY26: Shares issued $8.3MFY26: Asset sales $418KFY26: Capital spending −$541MFY26: Buybacks −$643M$1.8BFY26
Over these 5 years operating cash flow totalled $1.6B; the largest uses were operating cash flow ($2.5B) and capital spending ($2.2B). Cash-flow statements as filed.

Cash runway and the debt wall

Cash & investments$171M
Debt$16.8B
Net debt$16.6B
Due within a year$17.7M

CarMax funds itself: free cash flow was $1.1B over the last twelve months, and $171M of cash and investments stands against $16.8B of debt ($17.7M due within a year, 9.6× covered by cash).

Where the cash came from and went

CarMax: sources (+) and uses (−) of cash, Q2 FY27CarMax: sources (+) and uses (−) of cash, Q2 FY27Operating cash flow$883MOther financing−$763MCapital spending−$77.1MCash drawn (+) / kept (−)−$44.5MOther investing$6.3MNet borrowing (+) / repaid (−)−$4.4MBuybacks−$313KAsset & business sales$190KShares issued$83K
CarMax: sources (+) and uses (−) of cash, TTM to Q2 FY27CarMax: sources (+) and uses (−) of cash, TTM to Q2 FY27Operating cash flow$1.6BOther financing−$1.3BCapital spending−$453MCash drawn (+) / kept (−)$389MBuybacks−$261MNet borrowing (+) / repaid (−)−$16.4MOther investing$15.1MAsset & business sales$323KShares issued$82K

From profit to cash

CarMax: net income to operating cash flow, Q2 FY27CarMax: net income to operating cash flow, Q2 FY27Net income$165MDepreciation & amortization$95.2MStock-based pay$32.4MDeferred taxes−$11.6MGains on disposals−$36.6MReceivables$40.0MInventory$208MPayables$6.7MPrepaid and other assets−$9.2MOther liabilities−$30.6MOperating cash flow$883M
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.
QuarterReceivable daysInventory daysPayable daysCash conversion cycle
Q2 FY273511341
Q1 FY273531441
Q4 FY263611747
Q3 FY263551642
Q2 FY263531541
Q1 FY262521441
Q4 FY253641751
Q3 FY253581645

Every quarter

QuarterOperating cash flowCapital spendingBuybacksNet borrowing (+) / repaid (−)Shares issuedCash drawn (+) / kept (−)Free cash flow
Q2 FY27$883M−$77.1M−$313K−$4.4M$83K−$44.5M$806M
Q1 FY27$17.6M−$103M−$2.3M−$4.1M—−$8.5M−$85.7M
Q4 FY26−$554M−$133M−$54.3M−$4.0M−$1K$50.0M−$687M
Q3 FY26$1.3B−$140M−$204M−$3.9M—$392M$1.1B
Q2 FY26$785M−$131M−$181M−$3.7M$20K−$316M$654M
Q1 FY26$300M−$137M−$204M−$3.4M$8.3M−$28.9M$163M
Q4 FY25$146M−$128M−$98.9M−$3.4M$38.4M$15.5M$18.8M
Q3 FY25−$23.4M−$127M−$116M−$4.1M$5.1M$277M−$151M

CarMax: income statement and cash flow

CarMax, Q2 FY27: revenue $7.9B (+20% year over year), operating margin 2.8%. The chart follows the revenue to costs, profit and cash.

CarMax: every quarter, Q/Q and Y/Y → Open in the app

Read automatically from the company’s XBRL cash-flow statements; quarterly figures for the fourth quarter are the year less the first three. Errors are possible. Not investment advice.