With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

This year's 100 Best Companies to Work For are rebuilding the social contract at work so people feel supported, trusted, and future-ready as they undergo that transition.

100 Best Places to Work 2026_CarMax

Employees say:"I love working for CarMax and I will retire with CarMax. CarMax truly cares about the individual, whether customer, associate or community. CarMax is more than a place to work and make money, it completely changed my life. I feel like my personal values align with the CarMax core values and CarMax truly embraces each associate for their own authentic self. I have grown my career from an hourly associate to a Senior Manager and I have felt so much support. I have built financial success in my life through CarMax valuing me as an individual, having honest conversations on where I can improve as well as recognizing me for the strengths I bring to the table. CarMax is the best place to work!"

Fortune 100 Best Companies to Work For

See which workplaces made this year's list.

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Employees say:"CarMax truly cares about innovation and allows employees the opportunity to present ideas and solutions as well as the time to prove out those ideas. Everyday I see people coming together to improve and develop new solutions that make this a great place to work for associates, and provide a better shopping experience for our customers."

Best Large Workplaces in Retail

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The top companies on our list have one thing in common: Staff largely trust leadership to see them as well-rounded people and reward them for a job well done.

GPTW_100BestCompaniesToWorkFor_2025-CarMax_US1__20241210214006_5

Employees say: "CarMax is very much driven to create a welcoming and associate-first culture. I am confident that company leadership wants to create a company and business model that is ethical and respects customers and employees, instead of chasing short-term profitability."

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

America's Most Innovative Companies

2025 Best Large Workplaces for Parents_CarMax_US1__68b9ad8e7757c3af0ca2bb8e_1

Employees say:"CarMax is, hands down, the best place I have worked in my long career. I truly feel valued here, and I believe my work makes a difference. My colleagues and managers are smart, competent, kind, and enjoyable to work with. Twice a year, we provide company feedback via a survey, and the company has made meaningful changes based on that feedback."

Best Large Workplaces for Parents

GPTW Retail Large 2024-CarMax_US1__20240712204823_5

Employees say:"CarMax is very much driven to create a welcoming and associate-first culture. I am confident that company leadership wants to create a company and business model that is ethical and respects customers and employees, instead of chasing short term profitability."

Industries included in the sector are automotive retail, general merchandisers, internet retail, and specialty retail.

Fortune Sector Leaders: Retailing

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

Creating a more empathetic workplace looks like staying loyal to workers, emphasizing D&I initiatives, and paying well.

100 Best Companies 2024-CarMax

This is the 20th year that CarMax, a used autos retailer, has appeared on the list.&nbsp;The company has started using AI to support business processes and consumer-facing content, such as car reviews, to help free up employees' time. In addition, CarMax is using AI to power multiple customer experiences, such as giving online offers to customers to sell their car to CarMax in minutes, and providing personalized car recommendations to help customers buy their next car from CarMax quickly. CarMax also invests in its virtual AI assistant, Skye, to help streamline its customer experience centers and support customers as they are shopping, through steps like vehicle shipping and appointment preparation and management. &nbsp;For CarMax, community involvement is big. One of its longest-lasting key relationships is with <a href="https://kaboom.org/">KABOOM!</a>, an accredited charity that builds playgrounds in underfunded and underinvested communities. Since the partnership formed in 2011, more than 11,000 employees have come together to build 206 play spaces.

The 200 companies on this list are transforming industries from the inside out.

Building a culture of trust and transparency is essential to help everyone thrive, especially in rocky economic times.

100 BEST COMPANIES 2023-CarMax

The no-haggle retailer of used autos is appearing on the Best Companies to Work For list for the 19th time this year. 
<ul> 
 	<li>New hires receive a warm welcome even before their first day. As soon as someone accepts a job offer, the team leader calls to welcome them, and a mentor calls to answer any questions they might have before they start.</li> 
 	<li>Elaborate onboarding includes making sure new hires have clear direction about their schedule and are provided with smaller details, such as where they should park and what restaurants are nearby, before their first day.</li> 
 	<li>Workers can utilize the CarMax Connect web platform to get personalized information, aggregated news, and useful company resources.</li> 
 	<li>“It's the first company that I've worked for that makes you feel the company puts its employees first, and truly understands that it's the sum of its parts that make up the whole,” said one employee. “They're also very understanding when it comes to personal issues getting in the way of work and allowing you to take time off to address them, and not make you feel like you're letting the whole company down for doing so.”</li> 
</ul>

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

Fortune Global 500

GPTW 2023 Best Workplaces Retail Large CarMax_6

Employees say: 
 
"I truly feel I am an equal employee. This is the first place that I have worked at where all of management makes you feel equal to them. There are no favorites here, which makes it a very relaxed, amazing place to work."

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

When it comes to supporting employees, flexibility, diversity, and a few extra paid days off go a long way.

100-Best-2022-CarMax

CarMax, the nation’s leading used-car retailer, believes that good customer service begins with treating employees right. At the peak of the pandemic, every CarMax manager met with their associates to help them balance work and family life. As a result, some employees were able to modify their schedules or take a leave of absence that enabled them to continue receiving benefits. And CarMax aims to hold itself to a high standard; associates with concerns over safety or ethics are encouraged to speak up via an open door policy. “The most amazing thing about working here is our managers genuinely care about us,” says one employee. “They will put in extra time and effort to help us with anything we need, even if it’s something in our personal life.”

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

Great Places to Work in Retail Large- 2022-CarMax_1000333-1

Employees say: 
 
“I feel that everyone here is welcoming and accepting of everyone. We are encouraged to develop relationships within our department as well as others. We are empowered to make decisions we feel are necessary in the moment whether it is business or customer related. I can be myself at work and that is a great feeling. I feel people have the best interests of everyone on a personal as well as professional level.”

This year’s Fortune 500 marks the 68th running of the list.

Our 2021 list of the 100 best companies to work for, as ranked by their employees. See which companies made the list.

100-best-companies-2021-37-Carmax

When closures led to furloughs of some employees, it wasn’t just hourly workers who felt the squeeze. “I appreciated that executives took a pay cut and that the board of trustees did not receive any compensation,” one employee writes. (Indeed, CEO William Nash took a 50% cut.) The company covered health insurance premiums for furloughed workers, and an associate disaster relief fund enabled employees to apply for help if they became ill or experienced a qualifying hardship. By the end of July 2020, CarMax no longer had any associates on furlough, and positions had been made available for approximately 99% of impacted employees.

See which retailers made this year's list.

Best-Workplaces-Retail-2021-CarMax

Employees say: 
 
“The culture at CarMax is by far the best out of all the companies I have worked for. I truly feel CarMax appreciates their associates and will go above and beyond to demonstrate that to them. I am proud to say CarMax when people ask where I work!”

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-136-CarMax

As the largest used car retailer in the United States, CarMax generates revenue from both the retail business and its wholesale auction house.

Our 2020 list of the 100 best companies as ranked by their employees. See which companies made the list.

Best-Workplaces-Retail-2020-CarMax

Employees say: 
 
"Carmax is the first company I've worked for that 'walks the walk.' Being a female in a male-dominated industry was difficult, but here I'm treated as an equal, and have had the opportunity to learn in stretch roles, and am now managing my own store!"

This year's Fortune 500 marks the 66th running of the list.

F500-2020-173-CarMax

Founded in 1993, the auto retailer buys and sells used vehicles in its more than 200 store locations across the U.S.

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

World's Most Admired Companies

Our 2019 list of the 100 best companies as ranked by their employees. See which companies made the list.

From groceries to apparel to home decor, see which companies made the list.

CarMax-Best Workplaces in Retail 2019

Employees say: 
“I believe the people that are hired here are not just hired by credentials, but also integrity, which plays a big part in creating the Carmax atmosphere. There is plenty of room for growth and opportunity for many people.”

This year's Fortune 500 marks the 65th running of the list.

We surveyed tens of thousands of young employees to create this list of millennials’ favorite workplaces.

Carmax-best workplaces millennials 2019

Employees say: 
“At CarMax everyone cares for each other and is there for each other. We make friends and have a wonderful time at work. We share and help each other through any situation work related or not.”

100 Best Large Workplaces for Millennials

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

Our 2018 list of the 100 best companies as ranked by their employees. See which companies made the list.

This year's Fortune 500 marks the 64th running of the list.

best-workplaces-millennials-2018-CarMax

Employees say: 
 
&nbsp; 
 
"CarMax really focuses on building skill levels vs. driving numbers. We all know that numbers are the bottom line, but here they focus more on behavior. From my sales experience, if you have the behaviors, and they're strong, the numbers always come." 
 
&nbsp; 
 
"I was hired as a detailer, I couldn't even drive as stick shift. An entry level mechanic position opened and I was afforded the opportunity. I went on to become a master mechanic. After 8 years with the company, I've just accepted an offer for an analyst position at home office. The room for advancement is incredible." 
 
&nbsp;

Our 2017 list of the 100 best companies as ranked by their employees. See which companies made the list.

This year's Fortune 500 marks the 63rd running of the list.

best workplaces for millennials 2017 CarMax

Employees say: 
 
&nbsp; 
 
"Although I perform the same business functions every day, no two days are the same at CarMax. The employees are a diverse group of people, which makes it especially enjoyable to work here. I have worked at CarMax for over 5 years and plan on working here for many more years to come!" 
 
&nbsp; 
 
"[The company] will not only teach you what you need to or want to know, but will also give you the opportunity to advance yourself by helping pay for schooling. CarMax teaches you a lot about yourself as a person by helping you work on your skills ... They inspire me to be a better person every day." 
 
&nbsp;

Google/Alphabet is the No. 1 place to work for the seventh time in 10 years. Six newcomers include Veterans United at No. 30, Hilton Hotels at No. 56, and Slalom Consulting at No. 100. IKEA’s U.S. arm returns to the list, along with GoDaddy and Sheetz.

This year's Fortune 500 marks the 62nd running of the list.

The second annual ranking of the best employers for workers 35 and under.

best workplaces for millennials 2016- CarMax

"I always enjoy the camaraderie and family feel. CarMax allows me to grow knowing mistakes will happen, making the environment a positive one to work in. The exposure and trainings I have received have given me valuable skill sets that will stick with me for the rest of my life. I also feel that I am a person and not a number!" says one millennial worker. 
 
&nbsp; 
 
"Management really cares about employee development. My manager works closely to help me improve in preparation for a promotion. I am also encouraged to focus on projects and types of work that interest me," explains another millennial. 
 
&nbsp; 
 
Read the .

This year’s list marks Fortune's 18th year of partnering with Great Place to Work. Google ranks No.1 for the sixth time, and 16 new companies make impressive debuts, including Acuity (No. 3), Twitter (No. 24), and Riot Games (No. 13).

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Google tops the list once again, marking its eighth appearance and fifth time as No. 1.

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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Best Workplaces For Parents

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Best Workplaces In Retail

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CarMax started as a solution for consumers who dreaded a trip to the car dealer. Emphasizing a stress-free experience, it introduced the concept of “no-haggle” purchasing through slogans like “You shouldn’t have to argue to get a fair price.” Now CarMax is the largest U.S. retailer for used cars with 250 stores nationwide and a portfolio of assets worth nearly $18 billion. In its fiscal year ended February 2025, the company sold roughly 790,000 pre-owned vehicles and another 540,000 wholesale vehicles at auctions.

Q1 2027

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Q3 2026

Q2 2026

Q1 2026

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Q3 2025

CarMax (KMX): Company Profile, Stock Price, News, Rankings

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CarMax

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Ladies and gentlemen, thank you for standing by. Welcome to the Q3 Fiscal Year 2025 CarMax Earnings Release Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, David Lowenstein, VP, Investor Relations. Please go ahead.

Thank you, Todd. Good morning, everyone. Thank you for joining our fiscal 2025 Q3 earnings conference call. I'm here today with Bill Nash, our President and CEO Enrique Mayermor, our Executive Vice President and CFO and John Daniels, our Senior Vice President, CarMax Auto Finance Operations. Let me remind you, our statements today that are not statements of historical fact, including statements regarding the company's future business plans, prospects and financial performance, are forward looking statements we make pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

These statements are based on our current knowledge, expectations and assumptions and are subject to substantial risks and uncertainties that could cause actual results to differ materially from our expectations. In providing projections and other forward looking statements, we disclaim any intent or obligation to update them. For additional information on important factors and risks that could affect these expectations, please see our Form 8 ks filed with the SEC this morning, our annual report on Form 10 ks for fiscal year 2024 and our quarterly reports on Form 10 Q previously filed with the SEC. Should you have any follow-up questions after the call, please feel free to contact our Investor Relations department at 804 747-0422

Lastly, let me thank you in advance for asking only one question and getting back in the queue for more follow ups. Bill?

Great. Thank you, David. Good morning, everyone, and thanks for joining us. We're very pleased with the continued positive trends across our diversified business during the Q3 with retail, wholesale and cap all posting year over year gains. Our solid execution in a more stable environment for vehicle valuations enabled us to deliver robust EPS growth as we drove unit volume increases in sales and buys, maintain strong margins, stabilize the provision for loan losses and realize cost efficiencies.

Our results reflect the strength of our business model and we're excited about the opportunities that lie ahead. Our best in class omni channel experience is and will continue to be a key differentiator that gives us access to the largest total addressable market in the used car space and provides a strong runway for future growth. In the Q3, we grew retail and wholesale unit volume year over year. We delivered strong retail and wholesale GPUs, expanded EPP gross profit and improved service gross profit year over year. We bought more vehicles from both consumers and dealers year over year, achieving a 3rd quarter record with dealers.

We grew cap income year over year and continued to advance our full credit spectrum underwriting model. We materially levered SG and A as a percent of gross profit and we achieved double digit EPS growth. For the Q3 of FY 2025, our diversified business model delivered total sales of $6,200,000,000 up 1% compared to last year, reflecting higher volume partially offset by lower prices. In our retail business, total unit sales increased 5.4% and used unit comps were up 4.3%. Average selling price declined approximately $1100 per unit or 4% year over year.

3rd quarter retail gross profit per used unit was $2,306 in line with last year's $2,277 Wholesale unit sales were up 6.3% versus the Q3 last year. Average selling price declined approximately $500 per unit or 6% year over year. 3rd quarter wholesale gross profit per unit was $10.15 up from $9.61 a year ago. Bought approximately 270,000 vehicles during the quarter, up 8% from last year. We purchased approximately 237,000 vehicles from consumers with more than half of those buys coming through our online instant appraisal experience.

With the support of our Edmund sales teams, we source the remaining approximately 33,000 vehicles through dealers, which is up 47% from last year. We continue to see increased adoption of our omni channel retail experience. For the Q3, approximately 15% of retail unit sales were online, up from 14% last year. Approximately 56% of retail unit sales were omni sales this quarter, up from 55% in the prior year. Total revenue from online transactions was approximately 32%, up from 31% last year.

All of our Q3 wholesale auctions and sales were virtual and are considered online transactions, which represents 19% of total revenue for the quarter. CarMax Auto Financer CAF delivered income of $160,000,000 up 8% from the same quarter last year. In a few minutes, John will provide more detail on customer financing, the loan loss provision, CAF contribution and our progress on full credit spectrum lending. At this point, I'd like to turn the call over to Enrique, who will share more information on our Q3 financial performance. Enrique?

Thanks, Bill, and good morning, everyone. The momentum that we have been building over the last several quarters carried into the Q3 as we delivered on all key financial fronts: positive retail unit comps, growth in wholesale unit volumes, robust vehicle margins, material growth and other gross profit per retail unit, growth in cap income and strong flow through to the bottom line. 3rd quarter net earnings per diluted share was $0.81 up 56% versus a year ago. Total gross profit was $678,000,000 up 11% from last year's Q3. Used retail margin of $425,000,000 increased by 7% with higher volume and relatively flat per unit margins.

Wholesale vehicle margin of $138,000,000 grew by 12% due to increases in both volume and unit margins. Other gross profit was $115,000,000 up 25% from a year ago. This was driven primarily by a combination of EPP and service. EPP increased by $15,000,000 as we continue to benefit from higher MaxCare margins per contract. We expect margins per unit to be up slightly year over year in Q4, not by as much as we have experienced year to date as we will be lapping over the initial rollout of margin increases that took place in last year's Q4.

Service margin improved by $10,000,000 over last year's Q3, recording an $11,000,000 loss. We achieved this performance improvement through successful cost coverage and efficiency measures and positive sales growth. We expect continued year over year improvement in the Q4 as governed by sales performance given the leverage deleveraged nature of service. On the SG and A front, expenses for the 3rd quarter were $576,000,000 up 3 percent or $16,000,000 from the prior year. SG and A leveraged by 6.40 basis points, driven by the growth in gross profit and our continued expense efficiency actions.

SG and A dollars in the Q3 versus last year were mainly impacted by 2 factors. First, total compensation and benefits increased by $28,000,000 This was primarily driven by our corporate bonus accrual, which had been reduced in the last year's Q3. 2nd, advertising was favorable by $9,000,000 due to timing. Regarding advertising, we expect that our spend in the Q4 on a total unit basis will be higher than our year to date rate and last year's Q4, which was $2.19 per total unit. This aligns with the previous guidance we have given on advertising that we expect full year spend to be approximately $200 on a total unit basis.

I also want to point out one noteworthy item. As discussed last quarter, as part of our focus on efficiency, we have been evaluating our logistics operations. This quarter, we incurred a one time charge of $5,000,000 related to equipment and leasing arrangements that hit the other expense line. This is more than offset by efficiencies gained in our logistics operations. Regarding capital allocation, during the Q3, we repurchased approximately 1,500,000 shares for a total spend of $115,000,000 As of the end of the quarter, we had approximately $2,040,000,000 of repurchase authorization remaining.

Now I'd like to turn the call over to John.

Thanks, Enrique, and good morning, everyone. During the Q3, CarMax Auto Finance originated approximately $1,900,000,000 resulting in sales penetration of 43.1 percent net of 3 day payoffs as compared to 44% during last year's Q3. The weighted average contract rate charged to new customers was 11.2%, a decrease of 10 basis points from a year ago. 3rd party Tier 2 penetration in the quarter was 17.9%, in line with a year ago, while third party Tier 3 volume accounted for 6.5% sales compared to the 6.9% seen in last year's Q3.

Cap income for the quarter was $160,000,000 which was up $11,000,000 from the same period last year and was predominantly impacted by our net interest margin, which increased 35 basis points year over year to 6.2%. The provision for loan losses was $73,000,000 versus last year's provision of $68,000,000 and results in a reserve balance of $479,000,000 While the $113,000,000 provision for losses in the Q2 of this year was outsized and included a significant adjustment for the pre existing receivable base, this quarter's $73,000,000 provision represents our belief that based on observed performance within the quarter, our adjustment in Q2 adequately accounted for future lifetime losses. The $479,000,000 reserve balance results in reserve to receivables ratio of 2.70% as compared to 2.82% at the end of Q2. This 12 basis point reduction is due to the combined effect of the more normalized provision within the quarter and the previous credit tightening still in place. As a normal course of business, we are continuously exploring opportunities to help our customers through adjustments in our account servicing strategies.

One such example is with payment extensions, which have historically impacted less than 1% of our portfolio in any given month and have been below industry levels. This tool has proven successful in helping customers navigate temporary challenges. During the quarter, we began testing an enhancement to our policy that further empowers delinquent customers to take advantage of a payment extension and more aligns with industry levels. While early performance results are encouraging and similar to those witnessed under the existing policy, we recognize that some customers will eventually return to delinquency and result in a charge off. And for this, we have reserved accordingly.

Regarding our full spectrum lending initiative, during Q3, we continued to test our new credit scoring models and corresponding strategies across the entirety of both the Tier 1 and Tier 2 spaces. And in November, we began initial testing of our new Tier 3 model. During the quarter, we also successfully executed our 2nd higher prime ABS deal. In the next several quarters, we will remain disciplined in our testing plan, but we are excited for the significant growth opportunity that lies ahead for CAF. Now I'll turn the call back over to Bill.

Thank you, John and Enrique. As I mentioned at the start of the call, I'm pleased with the continued momentum we're seeing across our business. The differentiated omnichannel capabilities we've built over the past few years have strengthened our business model and are key to our performance. With these core capabilities in place, we are focused on refining the experience for associates and customers and are well positioned to leverage what we have built to support future top and bottom line growth across our diversified business. Some examples include, this quarter we completed the nationwide rollout of our customer shopping accounts.

As a reminder, these make it even easier for customers to see the steps they have taken on their shopping journey, whether on their own or with help from an associate. In addition, these accounts guide customers' next steps and create operational efficiencies by empowering associates to seamlessly search and update customer records regardless of where they originated. In addition to the customer shopping accounts, tools such as Sky, our AI powered virtual assistant, are creating operating efficiencies and providing help when consumers need it. Our data show that customers are completing more remote steps year over year, and this increase in remote steps is also improving conversion across all of our channels, online, in store and through our CECs. We continue to add helpful shopping information tools to our website.

For example, now we show vehicle specific battery health information on most EVs. We also highlight tax credit eligible vehicles and allow customers to filter searches by cars that are eligible for the used EV tax credit. For supply, we've enhanced our industry leading online appraisal experience. We are now able to give digital offers to approximately 99% of the customers who come to carmax.com for an appraisal. For finance, as John mentioned, we recently began testing our new Tier 3 origination model.

We're now testing new credit scoring models and the corresponding strategies across the full credit spectrum, which positions us to further grow cap income over time. And finally, we continue to focus on cost efficiencies. For example, we expanded our test of new transportation management process that leverages data science algorithms and AI to provide new planning and execution capabilities. The process essentially dispatches moves and automates communication between drivers and stores. We're pleased with the results and expect to see benefits to cost of goods sold over time.

In closing, we're excited about the future and our ability to grow sales and earnings. Our best in class omnichannel experience, which is enabled by our great associates, physical footprint, technology and digital capabilities all tied seamlessly together is a key differentiator that strengthens our competitive moat and we believe will be increasingly important to win consumers going forward. We're excited to be in a position to pivot from building capabilities to leveraging and enhancing them to drive growth through better execution, innovation efforts and experiences. With that, we'll be happy to take your questions. Todd?

The floor is now open for questions. Your first question comes from the line of Brian Nagel with Oppenheimer. Please go ahead. Your line is open.

First off, congratulations. Nice quarter.

So I'm going to I have 2 questions about merger to 1 just to comply with David's rules. But I get the first question. So look here now we have the 2nd consecutive quarter solid positive used car unit comps. The question I want to ask there is, I mean, as you're thinking about the model and recognizing you don't give you don't provide guidance, but as you look at the model flex now, I mean, what's an what should we consider to be like a normalized used car unit comp for CarMax? And then the second part of the question, look, we're seeing now starting to see really nice expense leverage as these comps have turned positive.

How should we think about the kind of the path forward in that assuming comps now are on a better trajectory?

Okay. On the first part of the question, Brian, as far as the normalized unit comp, I think it's a little hard to say at this point. What I would tell you is we're really pleased with the sales momentum. If we look at the comps during the quarter, and you go back to some of my commentary at the end of the second quarter where I said we were running a little bit lighter, we actually performed better throughout the quarter. And even if you normalized for the day of week adjustment that I talked about last quarter, sequentially each month got better.

And quite honestly, as we're going forward, obviously, December is a little early on, but December's performance month to date has accelerated and is beyond the comp of the Q3. So we feel good about that and we feel good about the trajectory of sales. And all else equal, I would tell you, as we think about the Q4, what I would tell you is, we think the Q4 will be stronger from a comp performance than the Q3. And that's despite having some headwinds of a day a week. We lose a Saturday in Q4.

We also lose a leap day, which we had last year. So again, we feel good about the momentum going forward. And what was the second part of your question?

I can talk then. So Brian, we continue to make progress on our goal of hitting a mid-seventy percent SG and A to gross profit. That's going to require continued improvement in sales volumes, and Bill has talked about our recent trends here. In addition to the cost management efforts that we have been undertaking now for a couple of years, and just to point you back to some of Bill's prepared remarks, we're past the heavy investment phase of our evolution.

We're at a point where pivoting from building capabilities to leveraging and enhancing them to drive growth and efficiencies, right? What this means is lower gross profit growth to leverage SG and A as compared to our heavy investment phase. So we feel really good about our ability to leverage. At the same time, we're going to take a look at investment opportunities. We're not going to leverage just for the sake of leveraging.

If there are opportunities to grow the top line and bottom line robustly, we will do that. But yes, we remain committed to our mid-seventy percent SG and A leverage ratio as well. So we're encouraged by the trends.

CarMax (KMX) Q3 2025 Earnings Call Transcript

Company Participants