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.
However, net earnings per diluted share for Q3 2025 decreased to $0.43, down from $0.81 in the same quarter last year.
The decrease was partly due to a $0.08 impact from restructuring charges.
As part of ongoing efforts to optimize capital, CarMax repurchased $201.6 million in shares of common stock during the quarter.
In addition, CarMax announced significant leadership changes.
David McCreight, a member of the board, has been named Interim President and CEO, effective December 1, 2025.
Tom Folliard, the Chair of the Board, will assume the role of Interim Executive Chair of the Board.
The company has begun the search for a permanent CEO.