FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGEACT OF 1934 For the Quarterly Period EndedMay 31, 2025OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGEACT OF 1934 Commission File Number: 1-31420 CARMAX, INC.(Exact name of registrant as specified in its charter) 54-1821055 (I.R.S. Employer Identification No.) 23238 (Zip Code) Securities registered pursuant to Section 12(b) of the Act: Name of each exchange on which registered New York Stock Exchange Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) ofthe Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrantwas required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.Yes☒No☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to besubmitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period thatthe registrant was required to submit such files).Yes☒No☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer,a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,”“accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the ExchangeAct. Large accelerated filer☒Accelerated filer☐Non-accelerated filer☐Smaller reporting company☐Emerging growth company☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extendedtransition period for complying with any new or revised financial accounting standards provided pursuant to Section13(a) of the Exchange Act.☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes☐No☒ Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latestpracticable date. Outstanding as of June 24, 2025 Class Common Stock, par value $0.50Page 1 CARMAX, INC. AND SUBSIDIARIES TABLE OF CONTENTS PageNo. FINANCIAL INFORMATION Item 1.Financial Statements:Consolidated Statements of Earnings (Unaudited) –Three Months Ended May 31, 2025 and 20243Consolidated Statements of Comprehensive Income (Unaudited) –Three Months Ended May 31, 2025 and 20244Consolidated Balance Sheets (Unaudited) –May 31, 2025 and February 28, 20255Consolidated Statements of Cash Flows (Unaudited) –Three Months Ended May 31, 2025 and 20246Consolidated Statements of Shareholders’ Equity (Unaudited) –Three Months Ended May 31, 2025 and 20247Notes to Consolidated Financial Statements (Unaudited)8Item 2.Management’s Discussion and Analysis of Financial Condition andResults of Operations29Item 3.Quantitative and Qualitative Disclosures About Market Risk43Item 4.Controls and Procedures44 Item 1.Legal Proceedings45Item 1A.Risk Factors45Item 2.Unregistered Sales of Equity Securities and Use of Proceeds45Item 6.Exhibits46 SIGNATURES PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS CARMAX, INC. AND SUBSIDIARIESConsolidated Statements of Earnings(Unaudited) Three Months Ended May 31(In thousands except per share data)2025%(1)2024%(1)SALES AND OPERATING REVENUES:Used vehicle sales$6,103,44080.9$5,677,47679.8Wholesale vehicle sales1,252,73816.61,256,43917.7Other sales and revenues190,3632.5179,4822.5NET SALES AND OPERATING REVENUES7,546,541100.07,113,397100.0COST OF SALES:Used vehicle cost of sales5,549,25773.55,181,97972.8Wholesale vehicle cost of sales1,096,16714.51,099,31115.5Other cost of sales7,4940.140,2120.6TOTAL COST OF SALES6,652,91888.26,321,50288.9GROSS PROFIT893,62311.8791,89511.1CARMAX AUTO FINANCE INCOME141,6501.9146,9702.1Selling, general and administrative expenses659,6438.7638,5789.0Depreciation and amortization65,7390.961,8690.9Interest expense27,0700.431,3620.4Other (income) expense(309)—416—Earnings before income taxes283,1303.8206,6402.9Income tax provision72,7491.054,2000.8NET EARNINGS$210,3812.8$152,4402.1 CARMAX, INC. AND SUBSIDIARIESConsolidated Statements of Comprehensive Income(Unaudited) OPERATING ACTIVITIES: CARMAX, INC. AND SUBSIDIARIESNotes to Consolidated Financial Statements(Unaudited) 1.Background Business.CarMax, Inc. (“we,” “our,” “us,” “CarMax” and “the company”), including its wholly owned subsidiaries,is the nation’s largest retailer of used vehicles. We operate in two reportable segments: CarMax Sales Operationsand CarMax Auto Finance (“CAF”). Our CarMax Sales Operations segment consists of all aspects of our automerchandising and service operations, excluding financing provided by CAF. Our CAF segment consists solely ofour own finance operation that provides financing to customers buying retail vehicles from CarMax. The company operates in two operating segments, Ca