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SEC filingCarMax's Notes reveal a $1.74B buyback authorization remaining, CAF income grew to $141.7M, and total debt increased to $18.79B.
As of May 31, 2025, CarMax held $262.8M in cash and equivalents, with additional restricted cash of $584.3M from auto loan collections. Total debt stood at $18.79B, of which $17.20B was non-recourse notes payable secured by auto loans held for investment. The current portion of long-term debt increased to $217.3M due to the upcoming maturity of $200M senior notes in April 2026. Shareholders' equity was $6.29B, slightly up from $6.24B at year-end, supported by retained earnings despite $204.0M in share repurchases.
The Notes disclose lease commitments: total operating lease payments of $815.8M and finance lease payments of $422.1M, with a present value of $529.2M and $201.8M, respectively. No other purchase commitments (e.g., supply or capacity) were disclosed. The company has $2.0B in unused revolving credit facility capacity and $2.48B unused warehouse facility capacity. Derivative hedge notional amounts totaled $4.28B, with $26.3M expected to be reclassified to CAF income over the next 12 months.
CarMax repurchased 2.95M shares for $204.0M in Q1 at an average price of $67.66, leaving $1.74B available under the existing authorization. No dividends were paid. Net debt increased by $78.7M, driven by $4.08B in new debt issuances (including $3.99B in non-recourse notes) offset by $4.00B in repayments. Capital expenditures were $136.7M (1.8% of sales), up from $103.9M a year ago, reflecting investment in facilities.
The company operates two reportable segments: CarMax Sales Operations and CarMax Auto Finance (CAF). Sales Operations reported net sales of $7.55B (up 6.1% YoY) and gross profit of $893.6M (11.8% margin). CAF generated interest and fee income of $485.4M (up 7.3%) and segment income of $141.7M after a $101.7M provision for loan losses. The provision increased due to unfavorable loss performance on loans originated in 2022-2023. CAF's allowance for loan losses rose to 2.76% of loans held for investment. No geographic segment data is provided.