CarMax Inc

Ladies and gentlemen, thank you for standing by. Welcome to the third quarter fiscal year 2025 CarMax earnings release conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, David Lowenstein, VP, Investor Relations. Please go ahead.

Thank you, Todd. Good morning, everyone. Thank you for joining our fiscal 2025 third quarter earnings conference call. And John Daniels, our Senior Vice President, CarMax Auto Finance Operations. Let me remind you, our statements today that are not statements of historical fact, including statements regarding the company's future business plans, prospects, and financial performance, are forward-looking statements we make pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on our current knowledge, expectations, and assumptions, and are subject to substantial risks and uncertainties that could cause actual results to differ materially from our expectations. In providing projections and other forward-looking statements, we disclaim any intent or obligation to update them. For additional information on important factors and risks that could affect these expectations, please see our Form 8-K filed with the SEC this morning, our annual report on Form 10-K for fiscal year 2024, and our quarterly reports on Form 10-Q previously filed with the SEC. Should you have any follow-up questions after the call, please feel free to contact our Investor Relations Department at 804-747-0422, extension 7865. Lastly, let me thank you in advance for asking only one question and getting back in the queue for more follow-ups. Bill?

Great. Thank you, David. Good morning, everyone, and thanks for joining us. We're very pleased with the continued positive trends across our diversified business during the third quarter. with retail, wholesale, and calf all posting year-over-year gains. Our solid execution in a more stable environment for vehicle valuations enabled us to deliver robust EPS growth as we drove unit volume increases in sales and buys, maintained strong margins, stabilized the provision for loan losses, and realized cost efficiencies. Our results reflect the strength of our business model, and we're excited about the opportunities that lie ahead. Our best-in-class omni-channel experience is and will continue to be a key differentiator that gives us access to the largest total addressable market in the used car space and provides a strong runway for future growth. In the third quarter, we grew retail and wholesale unit volume year over year. We delivered strong retail and wholesale GPUs, expanded EPP gross profit, and improved service gross profit year over year. We bought more vehicles from both consumers and dealers year over year, achieving a third quarter record with dealers. We grew cap income year-over-year and continued to advance our full credit spectrum underwriting model. We materially leveraged SG&A as a percent of gross profit, and we achieved double-digit EPS growth. For the third quarter of FY25, our diversified business model delivered total sales of $6.2 billion, up 1% compared to last year, reflecting higher volume, partially offset by lower prices. In our retail business, total unit sales increased 5.4%, and used unit comps were up 4.3%. Average selling price declined approximately $1,100 per unit or 4% year-over-year. Third quarter retail gross profit per used unit was $2,306 in line with last year's $2,277. Also, unit sales were up 6.3% versus the third quarter last year. Average selling price declined approximately $500 per unit or 6% year-over-year. Third quarter wholesale gross profit per unit was $1,015, up from $961 a year ago. We bought approximately 270,000 vehicles during the quarter, up 8% from last year. We purchased approximately 237,000 vehicles from consumers, with more than half of those buyers coming through our online instant appraisal experience. With the support of our Edmund sales teams, we sourced the remaining approximately 33,000 vehicles through dealers, which is up 47% from last year. We continue to see increased adoption of our omni-channel retail experience. For the third quarter, approximately 15% of retail unit sales were online, up from 14% last year. Approximately 56% of retail unit sales were omni-sales this quarter, up from 55% in the prior year. Total revenue from online transactions was approximately 32%, up from 31% last year. All of our third quarter wholesale auctions and sales were virtual and are considered online transactions, which represents 19% of total revenue for the quarter. CarMax Auto Finance, or CAF, delivered income of $160 million, up 8% from the same quarter last year. In a few minutes, John will provide more detail on customer financing, the loan loss provision, CAF contribution, and our progress on full credit spectrum lending. At this point, I'd like to turn the call over to Enrique, who will share more information on our third quarter financial performance. Enrique?