CarMax Inc

Ladies and gentlemen, thank you for standing by. Welcome to the third quarter fiscal year 2026 Cormac's 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, Vice President, Investor Relations. Please go ahead.

Thank you, Nikki. Good morning, everyone. Thank you for joining our fiscal 2026 third quarter earnings conference call. I'm here today with Tom Folliard, Interim Executive Chair of the Board, David McCreight, Interim President and CEO, Enrique Mayor Mora, Executive Vice President and CFO, and John Daniels, Executive Vice President, CarMax Auto Finance. Let me remind you, our statements today that are not statements of historical fact, including but not limited to 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 8K filed with the SEC this morning, our annual report on Form 10K for fiscal year 2025, and our quarterly reports on Form 10Q previously filed with the SEC. Please note, in addition to our earnings release, we have also prepared a quarterly investor presentation, and both documents are available on the investor relations section of our website. 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.

Tom. Thank you, David, and good morning, everyone. Thanks for joining us. Today, I'm going to provide some perspective on our leadership changes and CEO search. I'll then turn the call over to David, who will review our initial observations and the actions we are taking in response. After that, Enrique and John will speak to our third quarter results before we open the line for your questions. As many of you know, I've been part of CarMax for more than 30 years. Over that time, we've developed a beloved brand with national scale, unmatched physical and digital infrastructure, and an award-winning culture. However, recent results have been unacceptable and did not reflect the company's potential. As a result, even though the board was already working on a succession plan, we determined that more immediate change was required and that direct involvement from David and myself was the best approach to strengthen the business in the near term. The board has been searching for a permanent CEO with urgency. We are seeking a proven leader who can drive sales, maximize the benefits of our omni-channel experience, strengthen our brand, improve operations, and champion our culture. Conversations are underway and we have some promising candidates. What is most important is that the next CEO captures the tremendous opportunity that we have in front of us. As interim executive chair of the board, I'm focused on supporting David and the leadership team. David is in Richmond five days a week, and I'm spending a significant amount of time here myself. We are operating with a renewed sense of urgency to drive the business forward. I want to thank David for stepping into the interim president and CEO role. As you know, he has served on our board since 2018. David has more than 20 years of executive leadership experience at prominent retail brands in highly competitive and fast-paced markets. He has led several successful brand transformations, new omnichannel strategies, and growth initiatives for digitally native brands. What made him a great addition to our board has also been a tremendous asset in this transition. And before I turn it over to David, I also want to thank Bill Nash for his more than 30 years of service with CarMax.