SHAREHOLDER ACTION REMINDER: Faruqi & Faruqi, LLP Announces that CarMax Investors Have Opportunity to Lead Class Action Lawsuit

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In CarMax To Contact Him Directly To Discuss Their Options

If you purchased or acquired securities in CarMax between June 20, 2025 and September 24, 2025and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

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NEW YORK, Dec. 23, 2025 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against CarMax, Inc. ("CarMax" or the "Company") (NYSE: KMX) and reminds investors of the January 2, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Defendants recklessly overstated CarMax's growth prospects when, in reality, its earlier growth in the 2026 fiscal year was a temporary benefit from customers buying cars due to speculation regarding tariffs; and (2) as a result, defendants statements about CarMax's business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.

On September 25, 2025, the Company released its second quarter fiscal 2026 financial results, disclosing that "[CarMax Auto Finance, or CAF] income decreased 11.2%" due to 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. Further, the Company stated that "[t]he provision for loan losses in the second quarter of 2026 included an increase of $71.3 million in our estimate of lifetime losses on existing loans, primarily due to worsening performance among the 2022 and 2023 vintages" and that "[t]he remaining $70.9 million reflected our estimate of lifetime losses on current quarter originations."

Following this news, the price of CarMax stock fell $11.45 per share, approximately 20%, to close at $45.60 per share on September 26, 2025.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not. 

Faruqi & Faruqi, LLP also encourages anyone with information regarding CarMax's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

To learn more about the CarMax class action, go to www.faruqilaw.com­­/KMX    or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

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