What is CarMax's net margin?

CarMax (KMX) reported net margin of 1.8% in Q3 2025.

How has CarMax's net margin changed year-over-year?

CarMax's net margin decreased by 0.5% year-over-year, from 1.8% to 1.8%.

What is the long-term trend for CarMax's net margin?

Over 4 years (2021 to 2025), CarMax's net margin has grown at a -16.7% compound annual growth rate (CAGR), from 3.9% to 1.9%.

What does net margin mean?

Net income as a percentage of revenue (trailing twelve months). The bottom-line profitability measure after all costs, interest, and taxes.

CarMax KMX Net margin

Net margin at other companies

AutoNationAN

2.5%0.0pp

LAD

Lithia MotorsLAD

1.9%-0.4pp

Group 1 AutomotiveGPI

1.5%-0.8pp

Asbury Automotive GroupABG

3%+0.6pp

CarvanaCVNA

6.4%+3.7pp

Credit AcceptanceCACC

19.5%+6.5pp

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

FCF margin7.5%—

Returns & leverage

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Current ratio2.7×+0.3×

Where this comes from

Calculated from CarMax’s reported figures.

net income/total revenue=1.8%

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 net margin?: CarMax (KMX) reported net margin of 1.8% in Q3 2025.
How has CarMax's net margin changed year-over-year?: CarMax's net margin decreased by 0.5% year-over-year, from 1.8% to 1.8%.
What is the long-term trend for CarMax's net margin?: Over 4 years (2021 to 2025), CarMax's net margin has grown at a -16.7% compound annual growth rate (CAGR), from 3.9% to 1.9%.
What does net margin mean?: Net income as a percentage of revenue (trailing twelve months). The bottom-line profitability measure after all costs, interest, and taxes.