SAN FRANCISCO, Nov. 25, 2025 /PRNewswire/ — On November 6, 2025, investors in CarMax, Inc. (NYSE: KMX) saw shares plummet $9.93 (-24%) after the company announced that it fired CEO Bill Nash and issued its new Q3 2026 preliminary outlook on comparable store used unit sales, calling for a decline of 8%-12% from a year ago.
The developments are the latest following CarMax’s dismal Q2 2026 results, which drove the share price down $11.45 (-20%) on September 25, 2025.
National shareholders rights firm Hagens Berman continues to investigate the legal claims alleged in the pending securities class action.
The firm urges investors in CarMax who suffered significant losses during the Class Period to submit your losses now.
Class Period: June 20, 2025 – Nov. 5, 2025
Lead Plaintiff Deadline: Jan. 2, 2026
Visit: www.hbsslaw.com/investor-fraud/kmx
Contact the Firm Now: [email protected]
844-916-0895
CarMax, Inc. (KMX) Securities Class Action Litigation:
The litigation is focused on the propriety of CarMax’s disclosures about the strength of its business model and growth prospects.
More specifically, on June 20, 2025, CarMax touted double digit Q1 2026 EPS growth and assured investors that “a fragmented market that positions us to continue to drive sales, gain market share, and deliver year-over-year earnings growth for years to come.”
The complaint alleges that CarMax misled investors about its prospects, was in no position to assure investors of earnings growth for years to come, and failed to disclose that its Q1 2026 results were positive because of consumers’ pulling forward their car purchases to avoid tariffs.
Investors allegedly began to learn the truth on September 25, 2025. That day, CarMax reported dismal Q2 2026 financial results. Year-over-year, the company’s net EPS fell a whopping 24%, retail used unit sales fell 5.4%, and comparable store used unit sales fell 6.3%.
In addition, questions arose about the quality of the company’s CarMax Auto Finance (CAF) loan portfolio. The company reported that CAF’s revenue declined 11.02% year-over-year due to a $142 million loan loss provision even though management had previously assured investors that “we feel good about our reserve[.]” This figure represents a sequential increase of nearly 40% and a year-over-year jump of approximately 24%.
Then, on November 6, 2025, CarMax announced the termination of its CEO and said that it expects Q3 comparable store used unit sales to decline 8% to 12% from a year ago. The news prompted one analyst to say, “[t]he story has quickly shifted to what we viewed as a value play to what’s now looking like a falling knife []” and the situation “appears to reflect deeper issues at KMX[.]”
“We’re focused on investors’ losses and whether CarMax may have intentionally misled investors about the strength of its business model, actual growth prospects, and the quality of the CAF portfolio,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation.
If you invested in CarMax and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the CarMax case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding CarMax should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
SOURCE Hagens Berman Sobol Shapiro LLP
