CarMax, Inc. is the largest retailer of used cars in the United States, operating through an omni-channel platform that allows customers to purchase vehicles online, in-store, or through an integrated combination of both. The company also operates wholesale vehicle auctions and provides financing through CarMax Auto Finance (CAF). CarMax's core business model focuses on offering a broad selection of quality used vehicles at competitive, no-haggle prices. The company's competitive advantages include its customer-friendly sales process, broad selection of vehicles, proprietary information systems, and financing options. CarMax operates in 109 U.S. television markets.

• Employees: 29,836 full- and part-time associates (as of February 29, 2024)
• Geographic Footprint: 109 U.S. television markets
• Headquarters: Richmond, Virginia
• Founded: 1993 (first store opening)
• Number of locations/facilities: 245 used car stores (as of February 29, 2024)
• Revenue: $26.54 billion (FY2024)
• Key Subsidiaries/Brands: CarMax Auto Finance, Edmunds

• CEO: William D. Nash
• CFO: Enrique N. Mayor-Mora
• Executive Vice President, Human Resources, General Counsel and Chief Compliance Officer: Diane L. Cafritz
• Executive Vice President, Chief Innovation and Strategy Officer: James Lyski
• Executive Vice President, Chief Information and Technology Officer: Shamim Mohammad
• Executive Vice President, Chief Operating Officer: C. Joseph Wilson
• Senior Vice President, CarMax Auto Finance: Jon G. Daniels
• Senior Vice President, Store and CEC Execution: Darren C. Newberry

Key leaders have extensive experience in their respective fields, with Mr. Nash having been with CarMax since 1997 and Ms. Cafritz since 2003. Mr. Lyski joined CarMax in 2014, Mr. Mayor-Mora in 2011, Mr. Mohammad in 2012, Mr. Wilson in 1995, Mr. Daniels in 2008 and Mr. Newberry in 2004.

• Annual Revenue: $26.54 billion (FY2024)
• Net Income: $479.2 million
• Total Assets: $27.2 billion
• Employees: 29,836 (as of February 29, 2024)
• Key Financial Highlights: Used unit sales decreased by 5.2% and wholesale unit sales decreased by 6.6% compared to the prior year. CAF financed 42.9% of retail used vehicle unit sales in fiscal 2024.

CarMax offers a variety of products and services related to used vehicles:

• Used Vehicle Sales: Sells a wide selection of used vehicles at no-haggle prices through online, in-store, and integrated channels.
• Wholesale Auctions: Operates wholesale vehicle auctions for licensed dealers.
• Extended Protection Plans (EPP): Offers extended service plans (ESPs) and guaranteed asset protection (GAP) products.
• Vehicle Repair Service: Provides vehicle repair service at CarMax stores and through partnerships with third-party providers.
• Financing: Provides financing options through CAF and third-party providers.

CarMax operates through two reportable segments:

• CarMax Sales Operations: Encompasses all aspects of auto merchandising and service operations, excluding financing.
• CarMax Auto Finance (CAF): Focuses solely on providing financing to customers buying retail vehicles from CarMax.

The financial results related to the Edmunds business are included in the consolidated financial statements but do not meet the definition of a reportable segment.

CarMax's strategy focuses on enhancing its omni-channel platform, opening new stores, and growing sales. Key initiatives include:

• Leveraging data science and AI to improve customer experience.
• Expanding capabilities of virtual assistant, Skye.
• Modernizing the wholesale auction platform.
• Adding lenders to the finance-based shopping platform.
• Enhancing research and buying tools for electric vehicles through Edmunds.

The company aims to drive profitable market share gains and create shareholder value through its diversified business model and omni-channel experience. CarMax is also focused on improving operational efficiencies and aligning expenses with sales.

CarMax operates in the highly competitive U.S. used car market, facing competition from franchised dealers, online platforms, independent dealers, and private parties. The company estimates it sold approximately 3.7% of the age 0- to 10-year old vehicles sold on a nationwide basis in calendar 2023. Key market trends include the increasing adoption of online platforms and the growing consumer preference for digital car shopping experiences. The company's competitive advantages include its no-haggle pricing, customer-friendly sales process, broad selection of vehicles, and proprietary information systems.

• Competitive Risks: Failure to adapt to the increasing use of digital tools and online platforms could adversely affect the business.
• Economic Risks: Sensitivity to economic conditions, including recession, inflation, interest rates, and consumer credit availability, could impact sales and results of operations.
• Capital and Credit Risks: Changes in the availability or cost of capital and working capital financing, including long-term financing to support the expansion of the store base and sales growth, could adversely affect the business.
• Reputational Risks: Failure to maintain a reputation of integrity and to otherwise maintain and enhance our brand could adversely affect the business.
• Operational Risks: Failure to realize the benefits associated with our omni-channel platform could have a material adverse effect on our business.