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CarMax KMX Impairment Charges

Impairment Charges at other companies

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Group 1 AutomotiveGPI
$2.5M+66.7%
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Sonic AutomotiveSAH
-$400K+71.4%
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Asbury Automotive GroupABG
$0-100%
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Penske Automotive GroupPAG
$0
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$69.06M
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CarGurus, Inc.CARG
$450K-98.6%

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$8.24B-2.3%
Enterprise value$10.89B+3.8%
P/E14.9×-19.2×
P/S0.3×0.0×

Profitability

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Gross margin10.5%-0.7pp
Net margin1.8%0.0pp
FCF margin7.5%

Returns & leverage

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Current ratio2.7×+0.3×

Where this comes from

Reported directly by CarMax in its filing.

Tagged under the XBRL concept us-gaap:GoodwillImpairmentLoss.

The source filing: CarMax’s 10-K, filed April 15, 2026.

Filed
Apr 15, 2026, 12:12 PM EDT
Fiscal year
FY2026
Accession
0001170010-26-000021

As a result of our annual impairment test, we recorded a non-cash goodwill impairment charge of $141.3 million during the fourth quarter of fiscal 2026, all of which related to our CarMax Sales Operations reporting unit. This non-cash charge is reflected as goodwill impairment in the accompanying consolidated statements of earnings. The impairment was driven by a combination of a significant decline in market capitalization resulting from the decrease in our share price, pressured financial performance during fiscal 2026 and downward revisions to our forecasted financial outlook relative to the prior year’s outlook. The decline in market capitalization accelerated late in the third quarter of fiscal 2026 and carried forward into the fourth quarter, creating significant pressure on the results of our market capitalization reconciliation procedures described above.

Item 8. Consolidated Financial Statements and Supplementary Data.

FAQ

What is CarMax's impairment charges?
CarMax (KMX) reported impairment charges of $141.3M in Q4 2025.
What does impairment charges mean?
Non-cash asset impairment charges added back in the operating cash flow reconciliation since they don't represent cash outflows.

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