CarMax (NYSE:KMX) reported mixed third-quarter results for the period ending November 30, 2025.
Retail used unit sales decreased by 8%, and comparable store used unit sales dropped 9%.
Despite these declines, CarMax’s gross profit per retail used unit remained strong at $2,235, although it was down by $71 compared to last year’s record.
Wholesale units fell 6.2%, with gross profit per wholesale unit decreasing by $116 to $899.
Both margin and volume were affected by market depreciation.
In terms of inventory, CarMax purchased 238,000 vehicles from consumers and dealers, reflecting an 11.7% decline.
The company also reported a decrease in vehicles purchased from consumers (down 12.1%) and dealers (down 8.6%).
On the cost side, SG&A expenses rose by 1% to $581.4 million, driven primarily by increased advertising spend for the launch of a new brand positioning campaign and restructuring charges related to CEO changes and workforce reductions in the Customer Experience Center (CEC).
Despite these increases, CarMax remains on track to achieve SG&A reductions of at least $150 million in exit-rate savings by the end of fiscal 2027.
CarMax also posted a 9.3% increase in CarMax Auto Finance (CAF) income, reaching $174.7 million.