Investigation into Securities Violations Against CarMax, Inc.

Strategic Insights -

Investigations into potential securities violations have been initiated against CarMax, Inc., a leading used car retailer. This follows the company's release of its second-quarter fiscal 2026 financial results, which disclosed a significant decrease in CarMax Auto Finance's income. The results showed a $142.2 million provision for loan losses in the second quarter of fiscal 2026, compared to $112.6 million in the prior year's second quarter. This news led to a sharp decline in CarMax stock price, with a 20% drop to $45.60 per share on September 26, 2025. Investors who have suffered losses may be entitled to contact a law firm specializing in complex litigation.

Key Takeaways:

  • The investigation into potential securities violations against CarMax, Inc. was initiated following the company's release of its second-quarter fiscal 2026 financial results.
  • The results disclosed a significant decrease in CarMax Auto Finance's income, with a $142.2 million provision for loan losses in the second quarter of fiscal 2026.
  • The provision for loan losses included an increase of $71.3 million in the estimate of lifetime losses on existing loans, primarily due to worsening performance among the 2022 and 2023 vintages.
  • The remaining $70.9 million reflected the estimate of lifetime losses on current quarter originations.
  • The price of CarMax stock fell by 20% to $45.60 per share on September 26, 2025, following the release of the financial results.
  • CarMax investors who have suffered losses may be entitled to contact a law firm specializing in complex litigation, such as Kaplan Fox.
  • Kaplan Fox is a leading national law firm with over 50 years of experience in securities litigation, offering professional experience and a track record that clients demand.
  • The firm has successfully shaped the law through winning many important decisions on behalf of clients, both on federal and state levels.

Statistics:

  • $142.2 million: The provision for loan losses in the second quarter of fiscal 2026.
  • $112.6 million: The provision for loan losses in the prior year's second quarter.
  • $71.3 million: The increase in the estimate of lifetime losses on existing loans, primarily due to worsening performance among the 2022 and 2023 vintages.
  • $70.9 million: The estimate of lifetime losses on current quarter originations.
  • 20%: The decline in CarMax stock price to $45.60 per share on September 26, 2025.
  • September 25, 2025: The date on which CarMax released its second-quarter fiscal 2026 financial results.
  • September 26, 2025: The date on which CarMax stock price fell to $45.60 per share.

Sources:

  • [1] CarMax, Inc. (2025, September 25). CarMax Reports Second Quarter Fiscal 2026 Financial Results.
  • [2] Kaplan Fox & Kilsheimer LLP (2025, October 18). Investigation into Securities Violations Against CarMax, Inc.