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. 

Key Financials (last Fiscal Year)

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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.

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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 Fourth Quarter Fiscal Year twenty twenty five 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 of Investor Relations. Please go ahead.

Thank you, Madison. Good morning, everyone, and thank you for joining our fiscal twenty twenty five fourth quarter earnings conference call. I'm here today with Bill Nash, our President and CEO Enrique Mayer Mora, our Executive Vice President and CFO and John Daniels, our Executive Vice President, CarMax Auto Finance Operations. Let me remind you our statements today that are not statements of historical fact, including, but not limited to, 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 eight ks filed with the SEC this morning, our annual report on Form 10 ks for fiscal year twenty twenty four 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 extension 700865. Lastly, let me thank you in advance for asking only one question and getting back in the queue for more follow

Great. Thank you, David. Good morning, everyone, and thanks for joining us. We're very pleased with the continuing momentum across our diversified business during the fourth quarter. Our results reflect solid execution and the strength of our business model.

We delivered robust year over year EPS growth as we drove unit volume increases in sales and buys, materially increased gross profit, grew CAF income and realized additional cost efficiencies. Our associates, stores, technology and digital capabilities all seamlessly tied together enable us to provide the most customer centric car buying and selling experience. This is a key differentiator that gives us the right to win and access to the largest total addressable market in the used car space. This also positions us to drive sales, gain market share and deliver significant year over year earnings growth for years to come. In the fourth quarter, on a year over year basis, we grew retail and wholesale unit volume.

We delivered strong retail, wholesale and EPP GPUs and materially improved service gross profit. We bought more vehicles from both consumers and dealers achieving an all time record with dealers. We grew CAF's net interest margin and continued to advance our full credit spectrum underwriting model. We materially leveraged SG and A as a percent of gross profit and we also achieved double digit EPS growth for the third consecutive quarter. For the fourth quarter of FY twenty twenty five, we delivered total sales of $6,000,000,000 up 7% compared to last year, primarily driven by higher volume.

In our retail business, total unit sales increased 6.2% and used unit comps were up 5.1% despite having one less selling day, inclement weather and a delayed start to this year's tax season. Average selling price was in line with last year's fourth quarter. For the full year, total retail unit sales increased 3.1% and used unit comps were up 2.2%, with a decline in the first quarter more than offset by gains across the second, third and fourth quarters. Our market share data indicates that our nationwide share of age zero to 10 year old used vehicles was 3.7% in calendar twenty twenty four consistent with 2023. External title data shows year over year, while our share came under pressure during the first half of twenty twenty four, it then recovered as we achieved accelerating gains through the second half with particular strength in age zero to four vehicles, which grew for the entire year.

The data indicates that our market share continued to grow year over year during January 2025, the latest period for which information is available. While I do not intend to provide another update until this time next year, we remain confident in our ability to achieve further market share gains and across 2025 and beyond. Fourth quarter retail gross profit per used unit was $2,322 a fourth quarter record up from last year's 2,251 Wholesale unit sales were up 3.1% versus the fourth quarter last year. Average selling price was flat year over year. Fourth quarter wholesale gross profit per unit was $10.45 dollars which is historically strong, though down from the $11.20 dollars a year ago.

We bought approximately 269,000 vehicles during the quarter, up 15% from last year. We purchased approximately 223,000 vehicles from consumers with more than half of those buys coming through our online instant appraisal experience. With the support of our Edmond sales team, we sourced the remaining approximately 46,000 vehicles through dealers, is up 114% from last year. For the fourth quarter, approximately 15% of retail unit sales were online, up from 14% last year. Total revenue from online transactions was approximately 29% compared with 30% last year.

All of our wholesale auctions in sales were virtual and are considered online transactions, which represented 17% of the total revenue for the quarter. Approximately 58% of retail unit sales were omni sales for this quarter, up from 55% in the prior year. As a reminder, our omni channel sales definition incorporates customers who complete some, but not all of the following transactional activities online: reserving the vehicle, financing the vehicle if needed, trading in or opting out of a trade in and creating a sales order. To better reflect the ways customers are utilizing our digital capabilities to buy a car, Going forward, we are updating our definition of an omni channel sale to also include customers who complete any of the following steps online: prequalifying for financing, setting appointments and signing up for notification on cars coming soon. Based on this updated definition, approximately 67% of our retail unit sales were omni this quarter, up from 64% last year.

Of note, this does not impact how we calculate online sales since the steps to complete an online retail transaction remain the same. Across omni and online, our digital capabilities supported over 80% of our sales during the fourth quarter. We expect that our mix of digitally supported sales will continue to grow over time we add further enhancements to our online tools, customers become more accustomed to leveraging them and as we improve our ability to track their use. Turning to finance, CarMax Auto Finance or CAF delivered income of $159,000,000 up 8% from the same quarter last year. In a few moments, John will provide more detail on customer financing, the loan loss provision and CAF contribution as well as our progress on full credit spectrum lending and increasing CAF's penetration.

At this point, I'd like to turn the call over to Enrique, who will share more information on our fourth quarter financial performance. Enrique?

Thanks, Bill, and good morning, everyone. The momentum we built over the last few quarters continued into the fourth quarter. We achieved positive growth in retail and wholesale units, increased per unit and total dollar margin, grew CAF income and had strong flow through to our bottom line. Fourth quarter net earnings per diluted share was $0.58 up 81% versus a year ago. Adjusted for a $12,000,000 noncash impairment within other expense related to an Edmunds lease, EPS was $0.64 which is doubled from a year ago.

Total gross profit was $668,000,000 up 14% from last year's fourth quarter. Used retail margin of $424,000,000 increased by 9% with higher volume and per unit margins. Wholesale vehicle margin of $125,000,000 declined by 4% with an increase in volume offset by a reduction in per unit margins.

up 72% from a year ago. This was driven primarily by a combination of EPP and service. EPP increased by $8,000,000 or $10 per retail unit as we lapped over the initial rollout of margin increases that took place in last year's fourth quarter. Service recorded a $1,000,000 loss, which was a $44,000,000 improvement over last year's fourth quarter. We achieved this performance improvement through successful cost coverage, efficiency measures and growth in sales.

On the SG and A front, expenses for the fourth quarter were $611,000,000 up 5% or $30,000,000 from the prior year. SG and A leveraged by seven seventy basis points, driven by growth in gross profit and our ongoing actions to improve expense efficiency. SG and A dollars for the fourth quarter versus last year were mainly impacted by two factors. First, total compensation and benefits increased by $22,000,000 Over half of this increase was due to our corporate bonus accrual with the majority of the balance driven by unit volume growth. Second, advertising was up by $9,000,000 due to timing.

This was in line with the guidance we provided last quarter. In respect to capital allocation, during the fourth quarter, we repurchased approximately 1,200,000.0 shares for a total spend of $99,000,000 As of the end of the quarter, we had approximately 1,940,000,000 of repurchase authorization remaining. As we look ahead, I'll highlight a few key areas which support our earnings model that Bill will speak to shortly. We are testing EPP product enhancements that will focus on increasing penetration and per unit margins. These enhancements are expected to drive a small year over year increase in per unit EPP margin in FY 2026 with the potential for more expansion in fiscal twenty twenty seven.

We expect service margin in FY 2026 to grow year over year, predominantly in the first half of the year and to deliver a slight positive profit contribution for the full year as governed by sales performance given the leverage deleverage nature of service. Additionally, we expect service to continue to serve as a slight profit lever beyond FY 2026. In respect to SG and A, in the near term, we expect to require low single digit gross profit growth to lever on an annual basis, including in FY 2026. This will be supported by our goal of hitting full year omni cost neutrality in FY 2026 for the first time with continued improvement thereafter. We expect all three metrics per used unit, per total unit and as a percent of gross profit to be more efficient than pre omni for the full year.

This reinforces our pathway back to a lower SG and A leverage ratio with the initial goal of returning to the mid-seventy percent range over time as we see healthier consumer demand. In FY 2026, we expect that marketing spend will be approximately the same as in FY 2025 on a total unit basis. With regard to capital expenditures, we anticipate approximately $575,000,000 in FY 2026. The increase is primarily driven by the timing of land purchases as we experienced favorability to our FY 2025 outlook due to the timing of certain deal closures. Similar to FY 2024 and FY 2025, the largest portion of our CapEx investment is related to the land and build out of facilities for long term growth capacity in off-site reconditioning and auctions.

In FY twenty twenty six, we plan to open six new store locations, up from five in FY 2025 and four stand alone reconditioning and auction centers, up from two in FY 2025. Our extensive nationwide footprint and logistics network continue to be a competitive advantage for CarMax. Now I'd like to turn the call over to John.

Thanks, Enrique, and good morning, everyone. During the fourth quarter, CarMax Auto Finance originated approximately $1,900,000,000 resulting in sales penetration of 42.3% net of three day payoffs, which was in line with last year's fourth quarter.

The weighted average contract rate charged to new customers was 11.1%, a decrease of 40 basis points from a year ago, which was reflective of credit tightening and APR reductions executed prior to Q4. Third party Tier two penetration in the quarter was 17.6% of sales, down 110 basis points from last year, while third party Tier three volume accounted for 7.9% of sales, down 30 basis points from last year. GAAP income for the quarter was $159,000,000 which was up $12,000,000 from FY 2024. This increase was driven by net interest margin, which remained steady from the third quarter at 6.2%, but is up 30 basis points from last year's fourth quarter. Provision for loan losses was $68,000,000 and results in a total reserve balance of $459,000,000 or 2.61% of managed receivables.

This sequential improvement in the reserve to receivable ratio reflects an additional quarter with a more normalized provision along with the continuation of previous credit tightening. Regarding our full spectrum lending initiative, we remain excited about CAF's continued efforts in this space as well as the tremendous growth potential unlocked by the broadening of our securitization program. During the month of March, CAF began measured expansion by recapturing profitable portions of Tier one originations that we had shifted to our Tier two lenders as we tightened lending standards. This adjustment is targeted to grow our penetration by 100 to 150 basis points in the near term and is enabled by our non prime securitization program, which allows us to efficiently fund these non prime receivables while retaining the full economic value of the contracts. We were also pleased to successfully execute our second non prime ABS transaction, which closed in late March and was well received in the market.

We continue to learn from our new underwriting models and corresponding tests currently in place and anticipate capturing additional volume across Tier two and Tier three during the back half of the fiscal year. But as always, we will carefully monitor the consumer and the broader economy and will adjust our origination strategy as needed. It is worth noting that in the first quarter, we are forecasted to have a larger provision sequentially and year over year driven by new origination volume. This stems from seasonally higher sales and a lower credit quality period plus the need for additional reserve given the profitable but higher loss nature of the recaptured receivables that I mentioned a few moments ago. As a reminder, we expect this initial impact from building the loss reserve as we grow cap penetration to be materially offset by future income over time.

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 momentum we are seeing across our business. The associate and customer facing tools we launched during fiscal twenty twenty five are contributing to our results and to providing the most customer centric car buying and selling experience. I'm proud of the steps we took during the year to further differentiate our offering and drive incremental operational efficiencies. Some examples include: for retail, we rolled out a number of new systems that enhance consumer shopping experiences, support conversion and enable our associates to be more efficient.

These include order processing in our stores, customer accounts online, AI driven knowledge management in our CECs and EV research and shopping tools on the Edmunds and CarMax websites. Our digital tools enhancements have made it easier for consumers to self progress in their shopping journey. Sky, our AI powered virtual assistant is now able to independently answer over half of the questions our customers ask it, reflecting more than a 20% year over year improvement. Additionally, the rate of fully self progressed online sales grew by 25% across fiscal twenty twenty five. For Supply, we enhanced both our consumer and dealer facing appraisal experiences.

We are now able to give digital offers to approximately 99% of the customers who come to CarMax.com for an appraisal and we made Max offer even easier to use. This has attracted more dealers to the offering and has driven strong record sourcing volume each quarter. For finance, we began testing new credit scoring models and corresponding strategies across the full credit spectrum, which positions us to further grow cap income modestly in the near term and more materially over time. We also released an update to our finance based shopping experience that seamlessly incorporates existing instant appraisal offers into our prequalification offering giving customers more precise credit terms. And finally, we continue to focus on driving down cost of goods sold by pursuing incremental efficiency opportunities across our logistics network and reconditioning operations.

We achieved savings of approximately $125 per unit this year and anticipate that we will achieve at least another $125 per unit in fiscal twenty twenty six. This exceeds the initial $200 target we set at the beginning of fiscal twenty twenty five. These efficiencies support affordability as we pass savings on to our customers and also support our margins. In fiscal twenty twenty six, we will leverage and enhance our capabilities to drive growth through better execution, innovative offers, innovative efforts and up leveled experiences. Some examples include, for retail, we will continue leveraging data science and AI to offer even better digital experiences for our associates and consumers driving conversion and efficiency.

We plan to improve our online vehicle transfer experience and to expand Sky's functionality with additional data and new architecture. In recognition of the breadth and seamlessness of our best in class offering, we will also launch a new marketing campaign over the summer that will bring our omni channel experience and our digital capabilities to the forefront for a broad set of consumers. For supply, we plan to streamline the online appraisal checkout process and expand appraisal pickup availability to new markets. We will also further enhance Mac's offer to attract new dealers expanding our access to directly sourced vehicles. For credit, as John mentioned, we plan to continue expanding CAF's participation across the credit spectrum to grow penetration and capture profitable returns.

Additionally, we plan to modernize the ownership experience on CAF's digital platform, which will enhance customer experience and drive operating efficiencies. Looking ahead, we've positioned the company to achieve ongoing growth in retail and wholesale unit sales and market share with double digit EPS growth for years to come. We're excited about the power of the earning model we have built. Our model is designed to deliver an earnings per share growth CAGR in the high teens when retail unit growth is in the mid single digits. In addition to retail and wholesale unit growth, other key inputs driving our model are strength in other gross profit, CAF's credit spectrum expansion, continued operating efficiencies, SG and A leverage and our share repurchase program.

Regarding our long term goals, we are focused on growing the business and we continue to make progress towards those goals. However, at this point, we are moving the timeframes associated with them given the potential impact of broader macro factors. Before turning to Q and A, I want to recognize two significant milestones. First, Fortune Magazine recently named CarMax as one of its 100 Best Companies to Work For for the twenty first year in a row. I'm incredibly proud of this recognition.

It's due to our associates' commitment to supporting each other, our customers and our communities every day. Second, we opened up our 200 store during the fourth quarter. Reaching two fifty stores across the country is a fantastic accomplishment. I want to thank and congratulate all of our associates for the work that they do. They are a differentiator and the key to our success.

In closing, we're excited about the strength of the business model and the opportunities that lie ahead to grow sales and earnings. We are proud to offer customers the ability to progress seamlessly through and across online and in store channels delivering what our research affirms is the most customer centric buying and selling experience. This competitive advantage gives us access to the largest total addressable market in the used car space and provides a strong runway for future growth. With that, we'll be happy to take your questions. Madison?

Thank And your first question comes from the line of Sharon Zackfia with William Blair. Your line is open. You may now ask your question.

CarMax (KMX) Q4 2025 Earnings Call Transcript

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