CarMax Delivers Record-Breaking Q4 2025 Results with Strong Execution and Market Share Gains
CarMax, the largest used car retailer in the United States, has reported a record-breaking fourth quarter (Q4) for fiscal year 2025. The company's diversified business model continues to drive growth, solidifying its position as a leader in the used car market.
During the Q4 earnings conference call, Bill Nash, President and CEO of CarMax, expressed satisfaction with the momentum across the company's businesses. 'We're very pleased with the continuing momentum across our diversified business during the fourth quarter,' he said. 'Our results reflect solid execution and the strength of our business model.'
One key highlight from the quarter was the delivery of robust year-over-year earnings per share (EPS) growth, driven by unit volume increases in sales and buys, material gross profit growth, and increased cost efficiencies. The company's associates, stores, technology, and digital capabilities work seamlessly together to provide a customer-centric car buying and selling experience.
CarMax's ability to deliver this unique experience has enabled the company to drive sales, gain market share, and achieve significant year-over-year earnings growth. In Q4 2025, CarMax grew retail and wholesale unit volume on a year-over-year basis, delivering strong gross profit per used unit and material service gross profit improvements.
The company's CarMax Auto Finance (CAF) business also saw growth, with net interest margin expansion and the advancement of its full credit spectrum underwriting model. Additionally, CarMax leveraged selling, general, and administrative expenses as a percentage of gross profit, achieving double-digit EPS growth for the third consecutive quarter.
In terms of specific metrics, CarMax reported total sales of $6 billion in Q4 2025, up 7% compared to last year, driven primarily by higher volume. Retail business unit sales increased 6.2%, while used unit comps were up 5.1% despite inclement weather and the delayed start to this year's tax season.
The company's market share data indicates that its nationwide share of 0- to 10-year-old used vehicles was 3.7% in calendar 2024, consistent with 2023. External title data shows year-over-year gains, particularly in aged 0 to 4 vehicles, which grew for the entire year.
Looking forward, CarMax remains confident in its ability to achieve further market share gains and drive sales growth in 2025 and beyond. With a strong business model and execution capabilities, the company is well-positioned to continue delivering record-breaking results.
