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How CarMax (KMX) makes money
CarMax (KMX) made $7.9B of revenue in the second quarter fiscal 2027 (Q2 FY27), +19% from a year earlier. Used vehicle sales brought in $6.3B (80%); Wholesale vehicle sales brought in $1.4B (17%); Extended protection plan revenues brought in $142M (2%). Of every dollar of revenue, 10¢ was left as gross profit, 3¢ was left as operating profit, 2¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q2 FY27
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Used vehicle sales | $6.3B | 80.1% | -1% | +20% |
| Wholesale vehicle sales | $1.4B | 17.2% | -5% | +18% |
| Extended protection plan revenues | $142M | 1.8% | +6% | +23% |
| Advertising & subscription revenues | $36.3M | 0.5% | -1% | -4% |
| Service revenues | $26.8M | 0.3% | +11% | +40% |
| Other | $5.5M | 0.1% | +17% | +83% |
Where each dollar of revenue goes
| Line | Q2 FY27 | % of revenue |
|---|---|---|
| Revenue | $7.9B | 100.0% |
| Cost of revenue | $7.1B | 89.8% |
| Gross profit | $799M | 10.1% |
| Operating expenses | $576M | 7.3% |
| Operating profit | $223M | 2.8% |
| Income tax | $57.8M | 0.7% |
| Net earnings | $165M | 2.1% |
| Operating cash flow | $883M | 11.2% |
| Free cash flow | $806M | 10.2% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q2 FY27 | $7.9B | +20% |
| Q1 FY27 | $8.0B | +6% |
| Q4 FY26 | $5.9B | -1% |
| Q3 FY26 | $5.8B | -7% |
| Q2 FY26 | $6.6B | -6% |
| Q1 FY26 | $7.5B | +6% |
| Q4 FY25 | $6.0B | +7% |
From CarMax's 10-Q filed Sep 30, 2026 (on EDGAR).
Questions
How does CarMax make money?
CarMax (KMX) made $7.9B of revenue in the second quarter fiscal 2027 (Q2 FY27), +19% from a year earlier. Used vehicle sales brought in $6.3B (80%); Wholesale vehicle sales brought in $1.4B (17%); Extended protection plan revenues brought in $142M (2%). Of every dollar of revenue, 10¢ was left as gross profit, 3¢ was left as operating profit, 2¢ was left as net earnings.
What is CarMax's biggest business?
Used vehicle sales: $6.3B in the second quarter fiscal 2027, 80% of revenue, +20% from a year earlier.
What is CarMax's profit margin?
Net earnings were $165M, 2.1% of revenue, in the second quarter fiscal 2027; the operating margin was 2.8%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.