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Earnings Score 45 Bearish

CarMax Reports Q4 Net Loss Amid Significant Goodwill Impairment

Apr 14, 2026 11:18 UTC
KMX
Immediate term

CarMax shifted from profit to a net loss in the fourth quarter, primarily driven by a non-cash impairment charge. Despite a slight uptick in unit sales, the company's stock declined sharply in pre-market trading.

  • Net loss of $120.7 million vs prior year profit of $89.9 million
  • Non-cash goodwill impairment charge of $141.3 million
  • Revenue slightly down to $5.95 billion
  • Unit sales increased 0.7% to 303,969
  • KMX shares dropped 6.85% in pre-market trading

CarMax, Inc. (KMX) reported a net loss of $120.7 million for its fourth quarter, marking a significant reversal from the $89.9 million net income recorded during the same period last year. On a per-share basis, the company posted a loss of $0.85, compared to a profit of $0.58 in the prior year. The bottom-line result was heavily influenced by a non-cash goodwill impairment charge of $141.3 million recorded during the fiscal 2026 fourth quarter. This accounting adjustment indicates a write-down in the value of the company's acquired assets. Financial performance remained largely stagnant in terms of revenue. Net sales and operating revenues were reported at $5.95 billion, a slight decrease from the $6.00 billion generated in the previous year. However, the company managed a marginal increase in volume, with combined retail and wholesale used vehicle unit sales rising 0.7% to 303,969 units. Equity markets reacted negatively to the earnings results and the impairment charge. In pre-market trading on the New York Stock Exchange, CarMax shares fell 6.85%, trading at $45.70.

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