Filing Flows › CarMax (KMX) › Q2 FY26
CarMax (KMX) Q2 FY26 earnings results (second quarter fiscal 2026)
10-Q filed Sep 26, 2025
CarMax (KMX) reported revenue of $6.6B for the second quarter fiscal 2026 (Q2 FY26), -6% from a year earlier and -13% from the quarter before. Operating margin was 1.9%, net earnings $95.4M (1.4% of revenue).
CarMax, Q2 FY26: revenue $6.6B (-6% year over year), operating margin 1.9%, net earnings $95.4M, operating cash flow $785M. The chart follows the revenue to costs, profit and cash.
| Q2 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $6.6B | -13% | -6% |
| Gross profit | $718M | -20% | -6% |
| Operating profit | $127M | -55% | -29% |
| Net earnings | $95.4M | -55% | -28% |
| Operating cash flow | $785M | +162% | +27% |
| Free cash flow | $654M | +302% | +28% |
What changed
Revenue was $6.6B in Q2 FY26, down 6% year over year and down 13% from the previous quarter. Used vehicle sales was the largest line at 80% of revenue. Used vehicle sales lost $0.41B year over year (down 7%), 97% of the total change.
Gross margin was 10.9%, unchanged from a year earlier. Operating profit was $0.13B, a 1.9% margin (down 0.6 points year over year). Operating expenses grew 1% against a revenue fall of 6%. Net earnings were $0.10B, down 28% year over year. The effective tax rate was 25.0%.
Operating cash flow was $0.79B (up 27% year over year), 824% of net earnings. Non-cash charges added back $0.08B of depreciation and amortization and $0.02B of share-based compensation. Working capital and other items added $0.58B. Capital expenditures of $0.13B left free cash flow of $0.65B.
Questions
What was CarMax's revenue in the second quarter fiscal 2026?
CarMax (KMX) reported revenue of $6.6B for the second quarter fiscal 2026 (Q2 FY26), -6% from a year earlier and -13% from the quarter before.
Was CarMax profitable in the second quarter fiscal 2026?
Operating profit was $127M (1.9% of revenue) and net earnings $95.4M.
Source: CarMax 10-Q on SEC EDGAR.