CarMax Reports Q4 Net Loss of $120.7 Million

CarMax, the largest used-car retailer in the United States, reported a fourth-quarter net loss of $120.7 million, or 85 cents per diluted share, on Tuesday, marking a shift from a profit of $89.9 million, or 58 cents per share, in the same period a year earlier. The Richmond, Virginia-based company attributed the loss primarily to a noncash goodwill impairment charge of $141.3 million, stemming from a decline in its market capitalization and weaker financial performance during fiscal 2026. Despite the headline loss, adjusted earnings per share came in at 34 cents, surpassing Wall Street's consensus estimate of 18 cents, while quarterly revenue totaled $5.95 billion, a 1 percent decrease from the prior year but above the forecasted $5.65 billion.

The results reflect ongoing challenges in the used-vehicle market, where softening consumer demand and pricing pressures have squeezed profitability. CarMax's retail gross profit per used vehicle fell to $2,115, down from $2,322 a year ago, as the company reduced prices by about $110 per unit to encourage sales. Retail used-vehicle units sold decreased 0.8 percent to 181,188, with comparable-store sales dropping 1.9 percent. Wholesale...