Filing Flows › CarMax (KMX) › Q1 FY26
CarMax (KMX) Q1 FY26 earnings results (first quarter fiscal 2026)
10-Q filed Jun 26, 2025
CarMax (KMX) reported revenue of $7.5B for the first quarter fiscal 2026 (Q1 FY26), +6% from a year earlier and +26% from the quarter before. Operating margin was 3.8%, net earnings $210M (2.8% of revenue).
CarMax, Q1 FY26: revenue $7.5B (+6% year over year), operating margin 3.8%, net earnings $210M, operating cash flow $300M. The chart follows the revenue to costs, profit and cash.
| Q1 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $7.5B | +26% | +6% |
| Gross profit | $894M | +34% | +13% |
| Operating profit | $283M | +139% | +37% |
| Net earnings | $210M | +134% | +38% |
| Operating cash flow | $300M | +105% | — |
| Free cash flow | $163M | +768% | — |
What changed
Revenue was $7.5B in Q1 FY26, up 6% year over year and up 26% from the previous quarter. Used vehicle sales was the largest line at 81% of revenue. Used vehicle sales added $0.43B year over year (up 8%), 98% of the total change. Other declined 32%.
Gross margin was 11.8%, up 0.7 points from a year earlier. Operating profit was $0.28B, a 3.8% margin (up 0.8 points year over year). Of the extra revenue versus a year earlier, 18% reached operating profit, above the 3% margin then. Operating expenses grew 4% against revenue growth of 6%. Net earnings were $0.21B, up 38% year over year. The effective tax rate was 25.7%.
Operating cash flow was $0.30B, 142% of net earnings. Non-cash charges added back $0.08B of depreciation and amortization and $0.05B of share-based compensation. Working capital and other items used $0.04B. Capital expenditures of $0.14B left free cash flow of $0.16B.
Questions
What was CarMax's revenue in the first quarter fiscal 2026?
CarMax (KMX) reported revenue of $7.5B for the first quarter fiscal 2026 (Q1 FY26), +6% from a year earlier and +26% from the quarter before.
Was CarMax profitable in the first quarter fiscal 2026?
Operating profit was $283M (3.8% of revenue) and net earnings $210M.
Source: CarMax 10-Q on SEC EDGAR.