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Side-by-side financial comparison of CarMax (KMX) and WATSCO INC (WSO). Click either name above to swap in a different company.
CarMax is the larger business by last-quarter revenue ($5.8B vs $1.6B, roughly 3.7× WATSCO INC). WATSCO INC runs the higher net margin — 4.5% vs 1.1%, a 3.5% gap on every dollar of revenue. On growth, CarMax posted the faster year-over-year revenue change (-6.9% vs -10.0%). CarMax produced more free cash flow last quarter ($1.1B vs $388.5M). Over the past eight quarters, CarMax's revenue compounded faster (1.5% CAGR vs 0.4%).
CarMax, Inc. is a used vehicle retailer based in the United States. It operates two business segments: CarMax Sales Operations and CarMax Auto Finance. The company began as a side business of Circuit City Corporation, Inc., opening its first location in September 1993 in Richmond, Virginia. As of January 2025, CarMax operates 253 locations.
Watsco, Inc. is a distributor of air conditioning, heating and refrigeration equipment, and related parts and supplies (HVAC/R) in the United States. Watsco was founded more than 60 years ago as a manufacturer of parts, components, and tools used in the HVAC/R industry. In 1989, the company shifted from manufacturing to distribution, by acquiring Gemaire Distributors Inc., a South Florida-based Rheem distributor.
KMX vs WSO — Head-to-Head
Income Statement — Q3 2026 vs Q4 2025
| Metric | | |
|---|---|---|
| Revenue | $5.8B | $1.6B |
| Net Profit | $62.2M | $71.7M |
| Gross Margin | 10.2% | 27.1% |
| Operating Margin | — | 6.4% |
| Net Margin | 1.1% | 4.5% |
| Revenue YoY | -6.9% | -10.0% |
| Net Profit YoY | -50.4% | -25.9% |
| EPS (diluted) | $0.43 | $1.82 |
Green = leading value per metric. Periods may differ when fiscal calendars don't align.
8-Quarter Revenue & Profit Trend
Side-by-side quarterly history. Quarters aligned by calendar period so offset fiscal years line up.
| Q4 25 | $5.8B | $1.6B | ||
| Q3 25 | $6.6B | $2.1B | ||
| Q2 25 | $7.5B | $2.1B | ||
| Q1 25 | $6.0B | $1.5B | ||
| Q4 24 | $6.2B | $1.8B | ||
| Q3 24 | $7.0B | $2.2B | ||
| Q2 24 | $7.1B | $2.1B | ||
| Q1 24 | $5.6B | $1.6B |
| Q4 25 | $62.2M | $71.7M | ||
| Q3 25 | $95.4M | $161.6M | ||
| Q2 25 | $210.4M | $183.6M | ||
| Q1 25 | $89.9M | $80.1M | ||
| Q4 24 | $125.4M | $96.8M | ||
| Q3 24 | $132.8M | $171.0M | ||
| Q2 24 | $152.4M | $181.4M | ||
| Q1 24 | $50.3M | $87.0M |
| Q4 25 | 10.2% | 27.1% | ||
| Q3 25 | 10.9% | 27.5% | ||
| Q2 25 | 11.8% | 29.3% | ||
| Q1 25 | 11.1% | 28.1% | ||
| Q4 24 | 10.9% | 26.7% | ||
| Q3 24 | 10.8% | 26.2% | ||
| Q2 24 | 11.1% | 27.1% | ||
| Q1 24 | 10.4% | 27.5% |
| Q4 25 | — | 6.4% | ||
| Q3 25 | — | 11.4% | ||
| Q2 25 | — | 13.2% | ||
| Q1 25 | 2.0% | 7.3% | ||
| Q4 24 | 2.7% | 7.8% | ||
| Q3 24 | 2.5% | 11.6% | ||
| Q2 24 | 2.9% | 12.6% | ||
| Q1 24 | 1.2% | 8.1% |
| Q4 25 | 1.1% | 4.5% | ||
| Q3 25 | 1.4% | 7.8% | ||
| Q2 25 | 2.8% | 8.9% | ||
| Q1 25 | 1.5% | 5.2% | ||
| Q4 24 | 2.0% | 5.5% | ||
| Q3 24 | 1.9% | 7.9% | ||
| Q2 24 | 2.1% | 8.5% | ||
| Q1 24 | 0.9% | 5.6% |
| Q4 25 | $0.43 | $1.82 | ||
| Q3 25 | $0.64 | $3.98 | ||
| Q2 25 | $1.38 | $4.52 | ||
| Q1 25 | $0.58 | $1.93 | ||
| Q4 24 | $0.81 | $2.42 | ||
| Q3 24 | $0.85 | $4.22 | ||
| Q2 24 | $0.97 | $4.49 | ||
| Q1 24 | $0.31 | $2.17 |
Balance Sheet & Financial Strength
Snapshot of each company's liquidity, leverage and book value from the latest quarter.
| Metric | | |
|---|---|---|
| Cash + ST InvestmentsLiquidity on hand | $204.9M | $733.3M |
| Total DebtLower is stronger | $16.6B | $361.6M |
| Stockholders' EquityBook value | $6.1B | $2.8B |
| Total Assets | $25.6B | $4.4B |
| Debt / EquityLower = less leverage | 2.74× | 0.13× |
8-quarter trend — quarters aligned by calendar period.
| Q4 25 | $204.9M | $733.3M | ||
| Q3 25 | $540.4M | $524.3M | ||
| Q2 25 | $262.8M | $293.0M | ||
| Q1 25 | $247.0M | $431.8M | ||
| Q4 24 | $271.9M | $781.9M | ||
| Q3 24 | $524.7M | $550.0M | ||
| Q2 24 | $218.9M | $424.9M | ||
| Q1 24 | $574.1M | $478.9M |
| Q4 25 | $16.6B | $361.6M | ||
| Q3 25 | $17.8B | $340.8M | ||
| Q2 25 | $18.0B | $338.7M | ||
| Q1 25 | $18.1B | $346.4M | ||
| Q4 24 | $18.1B | $337.2M | ||
| Q3 24 | $18.1B | $321.0M | ||
| Q2 24 | $18.2B | $307.1M | ||
| Q1 24 | $18.0B | $306.3M |
| Q4 25 | $6.1B | $2.8B | ||
| Q3 25 | $6.2B | $2.8B | ||
| Q2 25 | $6.3B | $2.8B | ||
| Q1 25 | $6.2B | $2.7B | ||
| Q4 24 | $6.2B | $2.7B | ||
| Q3 24 | $6.2B | $2.7B | ||
| Q2 24 | $6.2B | $2.6B | ||
| Q1 24 | $6.1B | $2.5B |
| Q4 25 | $25.6B | $4.4B | ||
| Q3 25 | $27.1B | $4.6B | ||
| Q2 25 | $27.4B | $4.7B | ||
| Q1 25 | $27.4B | $4.5B | ||
| Q4 24 | $27.3B | $4.5B | ||
| Q3 24 | $27.3B | $4.5B | ||
| Q2 24 | $27.2B | $4.4B | ||
| Q1 24 | $27.2B | $4.4B |
| Q4 25 | 2.74× | 0.13× | ||
| Q3 25 | 2.87× | 0.12× | ||
| Q2 25 | 2.86× | 0.12× | ||
| Q1 25 | 2.91× | 0.13× | ||
| Q4 24 | 2.92× | 0.13× | ||
| Q3 24 | 2.93× | 0.12× | ||
| Q2 24 | 2.95× | 0.12× | ||
| Q1 24 | 2.96× | 0.12× |
Cash Flow & Capital Efficiency
How much cash each business actually produces after reinvestment. Cash flow is harder to manipulate than net income.
| Metric | | |
|---|---|---|
| Operating Cash FlowLast quarter | $1.3B | $399.8M |
| Free Cash FlowOCF − Capex | $1.1B | $388.5M |
| FCF MarginFCF / Revenue | 19.2% | 24.6% |
| Capex IntensityCapex / Revenue | 2.4% | 0.7% |
| Cash ConversionOCF / Net Profit | 20.14× | 5.57× |
| TTM Free Cash FlowTrailing 4 quarters | $1.9B | $535.1M |
8-quarter trend — quarters aligned by calendar period.
| Q4 25 | $1.3B | $399.8M | ||
| Q3 25 | $785.5M | $354.9M | ||
| Q2 25 | $299.5M | $-7.4M | ||
| Q1 25 | $146.4M | $-177.6M | ||
| Q4 24 | $-23.4M | $378.9M | ||
| Q3 24 | $619.1M | $232.8M | ||
| Q2 24 | $-117.7M | $57.7M | ||
| Q1 24 | $309.6M | $103.7M |
| Q4 25 | $1.1B | $388.5M | ||
| Q3 25 | $654.0M | $346.1M | ||
| Q2 25 | $162.8M | $-14.3M | ||
| Q1 25 | $18.8M | $-185.2M | ||
| Q4 24 | $-150.6M | $370.9M | ||
| Q3 24 | $509.9M | $223.0M | ||
| Q2 24 | $-221.6M | $51.3M | ||
| Q1 24 | $199.8M | $97.9M |
| Q4 25 | 19.2% | 24.6% | ||
| Q3 25 | 9.9% | 16.7% | ||
| Q2 25 | 2.2% | -0.7% | ||
| Q1 25 | 0.3% | -12.1% | ||
| Q4 24 | -2.4% | 21.1% | ||
| Q3 24 | 7.3% | 10.3% | ||
| Q2 24 | -3.1% | 2.4% | ||
| Q1 24 | 3.6% | 6.3% |
| Q4 25 | 2.4% | 0.7% | ||
| Q3 25 | 2.0% | 0.4% | ||
| Q2 25 | 1.8% | 0.3% | ||
| Q1 25 | 2.1% | 0.5% | ||
| Q4 24 | 2.0% | 0.5% | ||
| Q3 24 | 1.6% | 0.5% | ||
| Q2 24 | 1.5% | 0.3% | ||
| Q1 24 | 2.0% | 0.4% |
| Q4 25 | 20.14× | 5.57× | ||
| Q3 25 | 8.24× | 2.20× | ||
| Q2 25 | 1.42× | -0.04× | ||
| Q1 25 | 1.63× | -2.22× | ||
| Q4 24 | -0.19× | 3.91× | ||
| Q3 24 | 4.66× | 1.36× | ||
| Q2 24 | -0.77× | 0.32× | ||
| Q1 24 | 6.16× | 1.19× |
Financial Flow Comparison
Revenue → gross profit → operating profit → net profit for each company.
Revenue Breakdown by Segment
KMX
| Used Vehicles | $4.5B | 78% |
| Wholesale Vehicles | $1.1B | 19% |
| Other | $150.6M | 3% |
| Extendedprotectionplan Domain | $96.6M | 2% |
| Advertising Subscription Revenues Domain | $35.1M | 1% |
| Service Domain | $18.5M | 0% |
| Thirdpartyfinancefees Domain | $3.0M | 0% |
WSO
Segment breakdown not available.
