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Lithia Motors vs CarMax: LAD and KMX compared
Lithia Motors is the larger company: $9.9B of revenue in its latest quarter (Q3 2026) against $7.9B for CarMax (Q2 FY27). CarMax is growing faster (+20% against +3% a year earlier). Lithia Motors is more profitable, with an operating margin of 4.2% against 2.8%.
Where the money goes: LAD and KMX
Lithia Motors (LAD) · Q3 2026
Lithia Motors, Q3 2026: revenue $9.9B (+3% year over year), operating margin 4.2%, net earnings $293M, operating cash flow −$30.8M. The chart follows the revenue to costs, profit and cash.
CarMax (KMX) · Q2 FY27
CarMax, Q2 FY27: revenue $7.9B (+20% year over year), operating margin 2.8%, net earnings $165M, operating cash flow $883M. The chart follows the revenue to costs, profit and cash.
| Lithia Motors (LAD) | CarMax (KMX) | |
|---|---|---|
| Latest quarter | Q3 2026 | Q2 FY27 |
| Revenue | $9.9B | $7.9B |
| Revenue growth, Y/Y | +3% | +20% |
| Gross margin | 15.0% | 10.1% |
| Operating margin | 4.2% | 2.8% |
| Net earnings | $293M | $165M |
| Net margin | 2.9% | 2.1% |
| Operating cash flow | −$30.8M | $883M |
| Free cash flow | — | $806M |
| Market value | $6.8B | $7.5B |
| P/E | 8.8× | 24.7× |
| Analysts’ mean target | $391.20 | $61.31 |
Where the revenue comes from
Lithia Motors
- New vehicle: $4.9B (49%)
- Used vehicles: $3.6B (36%)
- Aftersales: $1.1B (11%)
- Finance and insurance: $361M (4%)
CarMax
- Used vehicle sales: $6.3B (80%)
- Wholesale vehicle sales: $1.4B (17%)
- Extended protection plan revenues: $142M (2%)
- Advertising & subscription revenues: $36.3M (0%)
Questions
Which is bigger, Lithia Motors or CarMax?
Lithia Motors is the larger company: $9.9B of revenue in its latest quarter (Q3 2026) against $7.9B for CarMax (Q2 FY27).
Is Lithia Motors or CarMax growing faster?
CarMax is growing faster (+20% against +3% a year earlier).
Which is more profitable, Lithia Motors or CarMax?
Lithia Motors is more profitable, with an operating margin of 4.2% against 2.8%.
More: Lithia Motors earnings · how Lithia Motors makes money · CarMax earnings · how CarMax makes money
From the companies' latest 10-Q, 10-K or earnings release (10-Q filed Oct 28, 2026; 10-Q filed Sep 30, 2026). Fiscal quarters can end on different dates. Not investment advice.