Revenue growth remains unstable, fluctuating from a 6.2% expansion in 2027Q1 to a 1.0% contraction in 2026Q4, while gross margins remain compressed near the 9.8% level.
| Metric | TTM | Feb'26 | Feb'25 | Feb'24 | Feb'23 | Feb'22 | Feb'21 | Feb'20 | Feb'19 | Feb'18 | Feb'17 | Feb'16 | Feb'15 | Feb'14 | Feb'13 | Feb'12 | Feb'11 | Feb'10 | Apr'09 | Feb'08 | Feb'07 | Feb'06 | Feb'05 | Feb'04 | Feb'03 | Feb'02 | Feb'01 | Feb'00 | Feb'99 | Feb'98 | Feb'97 |
|---|
| Sales/Revenue | 26.35B | 25.88B | 26.35B | 26.54B | 29.68B | 31.9B | 18.95B | 20.32B | 18.17B | 17.12B | 15.88B | 15.15B | 14.27B | 12.57B | 10.96B | 10B | 8.98B | 7.47B | 6.97B | 8.2B | 7.47B | 6.26B | 5.26B | 4.6B | 3.97B | 3.53B | 2.76B | 2.01B | 1.47B | 874.21M | 510.2M |
| Revenue Growth % | -1.64% | -1.79% | -0.69% | -10.61% | -6.95% | 68.34% | -6.74% | 11.81% | 6.15% | 7.84% | 4.79% | 6.17% | 13.48% | 14.7% | 9.59% | 11.45% | 20.15% | 7.12% | -14.95% | 9.83% | 19.26% | 19% | 14.41% | 15.81% | 12.34% | 28.1% | 36.9% | 37.42% | 67.73% | 71.35% | - |
| Cost of Goods Sold | 23.65B | 23.07B | 23.46B | 23.82B | 26.88B | 28.61B | 16.57B | 17.6B | 15.69B | 14.79B | 13.69B | 13.13B | 12.38B | 10.93B | 9.5B | 8.62B | 7.67B | 6.37B | 6.01B | 7.13B | 6.49B | 5.47B | 4.61B | 4.03B | 3.5B | 3.11B | 2.42B | 1.76B | 1.28B | 796.1M | 465.1M |
| COGS % of Revenue | - | 89.16% | 89% | 89.78% | 90.57% | 89.69% | 87.45% | 86.6% | 86.35% | 86.4% | 86.25% | 86.67% | 86.77% | 86.89% | 86.64% | 86.22% | 85.5% | 85.29% | 86.12% | 86.92% | 86.99% | 87.37% | 87.64% | 87.58% | 88.21% | 88.13% | 87.63% | 87.31% | 87.57% | 91.07% | 91.16% |
| Gross Profit | 2.7B | 2.81B | 2.9B | 2.71B | 2.8B | 3.29B | 2.38B | 2.72B | 2.48B | 2.33B | 2.18B | 2.02B | 1.89B | 1.65B | 1.46B | 1.38B | 1.3B | 1.1B | 968.17M | 1.07B | 971.06M | 790.71M | 650.2M | 570.89M | 468.24M | 419.39M | 341.22M | 255.61M | 182.3M | 78.11M | 45.1M |
| Gross Margin % | 10.24% | 10.84% | 11% | 10.22% | 9.43% | 10.31% | 12.55% | 13.4% | 13.65% | 13.6% | 13.75% | 13.33% | 13.23% | 13.11% | 13.36% | 13.78% | 14.5% | 14.71% | 13.88% | 13.08% | 13.01% | 12.63% | 12.36% | 12.42% | 11.79% | 11.87% | 12.37% | 12.69% | 12.43% | 8.93% | 8.84% |
| Gross Profit Growth % | - | -3.15% | 6.81% | -3.11% | -14.82% | 38.18% | -12.61% | 9.75% | 6.52% | 6.67% | 8.15% | 6.95% | 14.49% | 12.59% | 6.21% | 5.96% | 18.42% | 13.5% | -9.72% | 10.44% | 22.81% | 21.61% | 13.89% | 21.92% | 11.65% | 22.91% | 33.49% | 40.21% | 133.4% | 73.18% | - |
| Operating Expenses | 3.19B | 3.22B | 3.12B | 2.92B | 3.11B | 2.74B | 2.11B | 2.17B | 1.92B | 1.62B | 1.49B | 1.35B | 1.26B | 1.16B | 1.03B | 940.8K | 878.8M | 818.69M | 901.22M | 858.37M | 776.17M | 651.99M | 546.58M | 468.37M | 392.42M | 334.46M | 298.78M | 243.44M | 214.4M | 132.4M | 54.8M |
| OpEx % of Revenue | - | 12.43% | 11.83% | 11% | 10.48% | 8.58% | 11.11% | 10.67% | 10.58% | 9.45% | 9.38% | 8.92% | 8.81% | 9.19% | 9.4% | 0.01% | 9.79% | 10.96% | 12.92% | 10.47% | 10.4% | 10.42% | 10.39% | 10.19% | 9.88% | 9.46% | 10.83% | 12.08% | 14.62% | 15.15% | 10.74% |
| Selling, General & Admin | 2.53B | 2.53B | 2.51B | 2.35B | 2.55B | 2.38B | 1.75B | 1.79B | 1.77B | 1.62B | 1.49B | 1.35B | 1.26B | 1.16B | 1.03B | 940.8K | 878.8M | 818.69M | 882.36M | 858.37M | 776.17M | 651.99M | 546.58M | 468.37M | 392.42M | 334.46M | 298.78M | 228.2M | 204.4M | 127.8M | 53.1M |
| SG&A % of Revenue | - | 9.79% | 9.53% | 8.87% | 8.59% | 7.45% | 9.24% | 8.82% | 9.73% | 9.45% | 9.38% | 8.92% | 8.81% | 9.19% | 9.4% | 0.01% | 9.79% | 10.96% | 12.65% | 10.47% | 10.4% | 10.42% | 10.39% | 10.19% | 9.88% | 9.46% | 10.83% | 11.33% | 13.94% | 14.62% | 10.41% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 682.55M | 607.12M | 566.03M | 560.95M | 360.26M | 355.86M | 376.3M | 153.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 18.86M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 15.24M | 10M | 4.6M | 1.7M |
| Operating Income | -487.67M | -409.76M | -220.52M | -205.72M | -310.95M | 551.59M | 272.87M | 553.54M | 558.19M | 711.76M | 694.79M | 666.83M | 629.83M | 493.5M | 433.36M | 1.38B | 422.43M | 280.18M | 66.95M | 214.05M | 194.89M | 138.73M | 103.62M | 102.51M | 75.82M | 84.93M | 42.44M | 12.16M | -32.1M | -54.29M | -9.7M |
| Operating Margin % | -1.85% | -1.58% | -0.84% | -0.78% | -1.05% | 1.73% | 1.44% | 2.72% | 3.07% | 4.16% | 4.38% | 4.4% | 4.41% | 3.92% | 3.95% | 13.77% | 4.71% | 3.75% | 0.96% | 2.61% | 2.61% | 2.22% | 1.97% | 2.23% | 1.91% | 2.4% | 1.54% | 0.6% | -2.19% | -6.21% | -1.9% |
| Operating Income Growth % | - | -85.81% | -7.19% | 33.84% | -156.37% | 102.14% | -50.7% | -0.83% | -21.58% | 2.44% | 4.19% | 5.87% | 27.62% | 13.88% | -68.55% | 226.17% | 50.77% | 318.46% | -68.72% | 9.83% | 40.49% | 33.88% | 1.08% | 35.2% | -10.72% | 100.12% | 248.86% | 137.89% | 40.87% | -459.73% | - |
| EBITDA | -128.6M | -63.8M | 74.28M | 54.7M | -45.72M | 824.77M | 515.02M | 769.35M | 740.44M | 891.7M | 863.67M | 804.18M | 745M | 595.41M | 528.64M | 1.46B | 498.75M | 338.51M | 121.69M | 260.67M | 229.44M | 165.42M | 123.76M | 118.82M | 90.77M | 101.37M | 60.71M | 27.41M | -22.1M | -49.69M | -8M |
| EBITDA Margin % | -0.49% | -0.25% | 0.28% | 0.21% | -0.15% | 2.59% | 2.72% | 3.79% | 4.07% | 5.21% | 5.44% | 5.31% | 5.22% | 4.74% | 4.82% | 14.6% | 5.56% | 4.53% | 1.75% | 3.18% | 3.07% | 2.64% | 2.35% | 2.58% | 2.29% | 2.87% | 2.2% | 1.36% | -1.51% | -5.68% | -1.57% |
| EBITDA Growth % | -178.95% | -185.88% | 35.81% | 219.63% | -105.54% | 60.14% | -33.06% | 3.91% | -16.96% | 3.25% | 7.4% | 7.94% | 25.12% | 12.63% | -63.81% | 192.86% | 47.34% | 178.16% | -53.31% | 13.61% | 38.71% | 33.66% | 4.16% | 30.9% | -10.45% | 66.98% | 121.52% | 224% | 55.52% | -521.18% | - |
| D&A (Non-Cash Add-back) | 359.07M | 345.96M | 294.8M | 260.41M | 265.22M | 273.19M | 242.16M | 215.81M | 182.25M | 179.94M | 168.88M | 137.36M | 115.17M | 101.91M | 95.28M | 82.81M | 76.32M | 58.33M | 54.74M | 46.62M | 34.55M | 26.69M | 20.14M | 16.3M | 14.95M | 16.44M | 18.27M | 15.24M | 10M | 4.6M | 1.7M |
| EBIT | 768.89M | 1.26B | 1.54B | 1.41B | 1.07B | 1.82B | 1.37B | 1.6B | 1.48B | 1.13B | 1.06B | 1.05B | 993.8M | 828.16M | 733.71M | 700.62M | 642.89M | 455.96M | 102.88M | 302.02M | 194.89M | 138.73M | 103.62M | 102.51M | 75.82M | 84.93M | 42.44M | 12.16M | -32.1M | -54.29M | -9.7M |
| Net Interest Income | 966.66M | 984.61M | 982.76M | 913.95M | 1.01B | 973.9M | -86.18M | -83.01M | -75.79M | 350.44M | 312.57M | 355.68M | 342.82M | 305.33M | 266.91M | 228.47M | 185.3M | -2.9M | -4.3M | -3.59M | -4.17M | -3.07M | -2.38M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 1.84B | 1.86B | 1.85B | 1.68B | 1.44B | 1.3B | 0 | 0 | 0 | 421.18M | 368.98M | 392.04M | 367.29M | 336.17M | 299.27M | 262.19M | 219.98M | 560K | 1.79M | 1.37M | 1.2M | 1.02M | 421K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 873.03M | 879.59M | 871.14M | 763.45M | 430.7M | 322.89M | 86.18M | 83.01M | 75.79M | 70.75M | 56.42M | 36.36M | 24.47M | 30.83M | 32.36M | 33.71M | 34.68M | 3.46M | 6.09M | 4.96M | 5.37M | 4.09M | 2.81M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 846.53M | 793.19M | 889.88M | 847.31M | 947.75M | 940.76M | 692.39M | 607.45M | 554.62M | 351.85M | 311.61M | 343.12M | 339.5M | 303.82M | 267.99M | -710.91M | 185.78M | 172.32M | 29.84M | 83.02M | 128.46M | 101.26M | 80.9M | 86.84M | 80.88M | 61.53M | 31.04M | -10.36M | -6.4M | -1.81M | -6.2M |
| Pretax Income | 358.86M | 383.43M | 669.36M | 641.6M | 636.8M | 1.49B | 965.26M | 1.16B | 1.11B | 1.06B | 1.01B | 1.01B | 969.33M | 797.32M | 701.35M | 666.91M | 608.21M | 452.5M | 96.8M | 297.07M | 323.35M | 239.98M | 184.52M | 189.35M | 156.7M | 146.46M | 73.48M | 1.8M | -38.5M | -56.1M | -15.9M |
| Pretax Margin % | 1.36% | 1.48% | 2.54% | 2.42% | 2.15% | 4.68% | 5.09% | 5.71% | 6.12% | 6.21% | 6.34% | 6.67% | 6.79% | 6.34% | 6.4% | 6.67% | 6.78% | 6.06% | 1.39% | 3.62% | 4.33% | 3.83% | 3.51% | 4.12% | 3.95% | 4.14% | 2.66% | 0.09% | -2.63% | -6.42% | -3.12% |
| Income Tax | 136.32M | 136.14M | 168.8M | 162.39M | 152.04M | 341.05M | 218.34M | 272.55M | 270.39M | 399.5M | 379.44M | 386.52M | 371.97M | 304.74M | 267.07M | 253.12M | 230.71M | 170.83M | 37.59M | 115.04M | 124.75M | 91.93M | 71.59M | 72.9M | 61.9M | 55.65M | 27.92M | 685K | -15M | -21.9M | -6.6M |
| Effective Tax Rate % | 37.99% | 35.51% | 25.22% | 25.31% | 23.88% | 22.85% | 22.62% | 23.48% | 24.3% | 37.56% | 37.7% | 38.27% | 38.37% | 38.22% | 38.08% | 37.95% | 37.93% | 37.75% | 38.83% | 38.73% | 38.58% | 38.31% | 38.8% | 38.5% | 39.5% | 38% | 37.99% | 37.99% | 38.96% | 39.04% | 41.51% |
| Net Income | 222.54M | 247.29M | 500.56M | 479.2M | 484.76M | 1.15B | 746.92M | 888.43M | 842.41M | 664.11M | 626.97M | 623.43M | 597.36M | 492.59M | 434.28M | 413.8M | 377.5M | 281.67M | 59.21M | 182.03M | 198.6M | 148.06M | 112.93M | 116.45M | 94.8M | 90.8M | 45.56M | 1.12M | -23.5M | -34.2M | -9.3M |
| Net Margin % | 0.84% | 0.96% | 1.9% | 1.81% | 1.63% | 3.61% | 3.94% | 4.37% | 4.64% | 3.88% | 3.95% | 4.12% | 4.19% | 3.92% | 3.96% | 4.14% | 4.21% | 3.77% | 0.85% | 2.22% | 2.66% | 2.37% | 2.15% | 2.53% | 2.39% | 2.57% | 1.65% | 0.06% | -1.6% | -3.91% | -1.82% |
| Net Income Growth % | -60.15% | -50.6% | 4.46% | -1.15% | -57.89% | 54.14% | -15.93% | 5.46% | 26.85% | 5.92% | 0.57% | 4.36% | 21.27% | 13.42% | 4.95% | 9.62% | 34.02% | 375.69% | -67.47% | -8.34% | 34.14% | 31.11% | -3.02% | 22.84% | 4.41% | 99.28% | 3975.49% | 104.76% | 31.29% | -267.74% | - |
| Net Income (Continuing) | 222.54M | 247.29M | 500.56M | 479.2M | 484.76M | 1.15B | 746.92M | 888.43M | 842.41M | 664.11M | 626.97M | 623.43M | 597.36M | 492.59M | 434.28M | 413.8M | 377.5M | 281.67M | 59.21M | 182.03M | 198.6M | 148.06M | 112.93M | 116.45M | 94.8M | 90.8M | 45.56M | 1.12M | -23.5M | -34.2M | -9.3M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.57 | 1.68 | 3.21 | 3.02 | 3.03 | 6.97 | 4.52 | 5.33 | 4.79 | 3.60 | 3.26 | 3.03 | 2.73 | 2.16 | 1.87 | 1.79 | 1.65 | 1.26 | 0.27 | 0.83 | 0.92 | 0.63 | 0.48 | 0.55 | 0.46 | 0.44 | 0.23 | 0.01 | -0.50 | -0.77 | -0.21 |
| EPS Growth % | -55.52% | -47.66% | 6.29% | -0.33% | -56.53% | 54.2% | -15.2% | 11.27% | 33.06% | 10.43% | 7.59% | 10.99% | 26.39% | 15.51% | 4.47% | 8.48% | 30.95% | 366.67% | -67.47% | -9.78% | 46.03% | 31.25% | -12.73% | 19.57% | 4.55% | 91.3% | - | 101% | 35.06% | -266.67% | - |
| EPS (Basic) | - | 1.68 | 3.22 | 3.03 | 3.05 | 7.09 | 4.58 | 5.39 | 4.83 | 3.60 | 3.29 | 3.07 | 2.77 | 2.20 | 1.90 | 1.83 | 1.68 | 1.27 | 0.27 | 0.84 | 0.93 | 0.64 | 0.49 | 0.56 | 0.46 | 0.45 | 0.23 | 0.01 | -0.50 | -0.77 | -0.21 |
| Diluted Shares Outstanding | 142.15M | 147.61M | 156.06M | 158.71M | 159.77M | 165.18M | 165.13M | 166.82M | 175.88M | 184.47M | 192.22M | 205.54M | 218.69M | 227.58M | 231.82M | 230.72M | 227.6M | 222.23M | 219.36M | 220.52M | 216.74M | 212.85M | 211.3M | 211.26M | 209.14M | 208.04M | 53.93M | 51.58M | 46.65M | 44.41M | 43.72M |
| Basic Shares Outstanding | 141.85M | 147.26M | 155.33M | 158.22M | 158.8M | 162.41M | 163.18M | 164.84M | 174.46M | 182.66M | 190.34M | 203.28M | 215.62M | 223.59M | 228.09M | 226.28M | 223.45M | 219.53M | 217.54M | 216.04M | 212.45M | 209.27M | 208.1M | 207.01M | 205.97M | 204.08M | 51.09M | 47.56M | 46.65M | 44.41M | 43.72M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 29.96% | - | - | - | - | - | - |
Operating margin volatility
As reported in recent financial statements, KMX revenue growth has fluctuated significantly, moving from a 6.2% expansion in 2027Q1 to a 1.0% contraction in 2026Q4, highlighting the company's sensitivity to broader consumer demand shifts and the inherent volatility of the used-vehicle retail market cycle.
The inconsistent top-line performance suggests that the company's reliance on transactional volume leaves it vulnerable to macroeconomic headwinds. Investors should monitor whether the recent return to growth in 2027Q1 represents a sustainable recovery or merely a temporary rebound from the prior period's contraction.
Based on the provided income statement data, gross margins have remained compressed near 10% levels, with the 2027Q1 figure of 9.8% indicating that the company's high-volume intermediary model faces ongoing pressure from competitive pricing and the rising costs of acquiring retail-grade inventory from consumers.
The inability to consistently expand gross margins suggests that the company's proprietary appraisal loop may be facing increased competitive friction. This margin profile appears structurally lower than traditional franchised dealership peers, which may limit the company's ability to absorb sudden spikes in operational expenses.
According to the latest quarterly filings, KMX experienced a negative operating margin of -1.58% on average across recent periods, demonstrating that the company's fixed-cost structure, including its extensive physical appraisal network, struggles to achieve positive operating leverage when unit throughput declines below critical thresholds.
The frequent oscillation between positive and negative operating income suggests that the company's cost base is not sufficiently variable to match revenue volatility. This lack of operating discipline may indicate that the current 'big box' footprint requires higher sales volumes than the current market environment provides.
As evidenced by the wide swings in net income, ranging from a $120.7M loss in 2026Q4 to a $210.4M profit in 2026Q1, the company's bottom-line performance appears heavily influenced by non-operating items and potential adjustments within the CarMax Auto Finance segment's provision for loan losses.
The disconnect between operating income and net income suggests that investors should exercise caution when relying on headline EPS figures. The reliance on subjective loan loss provisions warrants further investigation into whether current earnings are being artificially smoothed during periods of operational weakness.
Based on the reported figures, the company's struggle to maintain positive operating margins during revenue downturns suggests that the 'omnichannel' strategy may be less efficient than management claims, potentially validating concerns that the physical infrastructure creates a permanent drag on profitability during cyclical demand troughs.
Short-term observers may argue that the company's high fixed-cost base is a liability rather than a moat in a high-interest-rate environment. The persistent negative operating margins in several recent quarters imply that the company may need to fundamentally restructure its cost base to restore long-term profitability.
Quick answers to the most common questions about buying KMX stock.
For fiscal year 2026, CarMax, Inc. (KMX) reported total revenue of $25.88B. This represents a 4972.7% increase compared to $510.2M in 1997.
CarMax, Inc. (KMX) is profitable, generating $247.3M in net income for the fiscal year ending 2026 with a net profit margin of 1.0%.
CarMax, Inc. (KMX) reported an operating income of $-409.8M, resulting in an operating profit margin of -1.6%. This margin reflects the operational efficiency of the business before interest and taxes.
CarMax, Inc. (KMX) generated $2.81B in gross profit for the year, representing a gross profit margin of 10.8%. This demonstrates the company's core pricing power and production efficiency.