What is CarMax's free cash flow margin?

CarMax (KMX) reported free cash flow margin of 7.5% in Q3 2025.

What does free cash flow margin mean?

Free cash flow (operating cash flow minus capital expenditures) as a percentage of revenue, trailing twelve months. Measures how efficiently revenue converts into discretionary cash.

CarMax KMX Free cash flow margin

Free cash flow margin at other companies

LAD

Lithia MotorsLAD

-0.8%-0.3pp

Group 1 AutomotiveGPI

1.5%—

CarvanaCVNA

3.3%-3.1pp

Credit AcceptanceCACC

45.3%-7.4pp

Penske Automotive GroupPAG

1.9%-0.3pp

General MotorsGM

8%+1.0pp

Other financials

Income statement

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Revenue$8.0B+6.2%

Gross profit$854.4M-4.4%

Net income$185.6M-11.8%

EPS (diluted)$1.31-5.1%

Balance sheet

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Cash & equivalents$132.2M-49.7%

Total debt$2.8B+20.0%

Total assets$26.6B-2.8%

Cash flow

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Operating cash flow$17.6M-94.1%

CapEx$103.3M-24.4%

Free cash flow-$85.7M-153%

Valuation

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Market cap$7.61B-34.0%

Enterprise value$10.26B-22.9%

P/E13.8×-17.7×

P/S0.3×-0.1×

Profitability

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Gross margin10.5%-0.7pp

Net margin1.8%0.0pp

Returns & leverage

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Current ratio2.7×+0.3×

Where this comes from

Calculated from CarMax’s reported figures.

free cash flow/total revenue=7.5%

Based on trailing twelve months.

The official record: CarMax’s 10-Q, filed December 23, 2025, on SEC EDGAR. View the filing →

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Questions, answered.

What is CarMax's free cash flow margin?: CarMax (KMX) reported free cash flow margin of 7.5% in Q3 2025.
What does free cash flow margin mean?: Free cash flow (operating cash flow minus capital expenditures) as a percentage of revenue, trailing twelve months. Measures how efficiently revenue converts into discretionary cash.