Company: KMX
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001170010-25-000024
Chunk: 55

Company: CARMAX INC
Filing Date: 2025-04-11
Form: 10-K
Item: Item 7
Chunk 55
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 a 3-day payoff option.

As of February 28, 2025, we operated 250 used car stores in 109 U.S. television markets.

CarMax Auto Finance

In addition to third-party finance providers, we provide vehicle financing through CAF, which offers financing solely to customers buying retail vehicles from CarMax.  CAF allows us to manage our reliance on third-party finance providers and to leverage knowledge of our business to provide qualifying customers a competitive financing option.  As a result, we believe CAF enables us to capture additional profits, cash flows and sales.  CAF income primarily reflects the interest and fee income generated by the auto loans receivable less the interest expense associated with the debt issued to fund these receivables, a provision for estimated loan losses and direct expenses.  CAF income does not include any allocation of indirect costs.  After the effect of 3-day payoffs and vehicle returns, CAF financed 42.7% of our retail used vehicle unit sales in fiscal 2025.  As of February 28, 2025, CAF serviced approximately 1.1 million customer accounts in its $17.59 billion portfolio of managed receivables.

Management regularly analyzes CAF’s operating results by assessing the competitiveness of our consumer offer, profitability, the performance of the auto loans receivable, including trends in credit losses and delinquencies, and CAF direct expenses.

26

Revenues and Profitability

The sources of revenue and gross profit from the CarMax Sales Operations segment for fiscal 2025 are as follows:

Net Sales andOperating Revenues   Gross Profit

A high-level summary of our financial results for fiscal 2025 as compared to fiscal 2024 is as follows (1):

(Dollars in millions except per share or per unit data)2025Change from 2024Income statement information  Net sales and operating revenues$26,353.4 (0.7)%  Gross profit$2,897.9 6.8 %  CAF income$581.7 2.4 %  Selling, general and administrative expenses$2,435.4 6.5 %  Net earnings$500.6 4.5 %Unit sales information  Used unit sales789,050 3.1 %  Change in used unit sales in comparable stores2.2 %N/A  Wholesale unit sales