America’s Car-Mart (CRMT) Q1 2026 Financial Results Summary

# America’s Car-Mart (CRMT) Q1 2026 Financial Results Summary

On September 4, 2025, America’s Car-Mart, Inc. (NASDAQ: CRMT) reported its financial results for the first quarter ended July 31, 2025. Below is a summary of the key financial highlights and metrics.

## Key Financial Highlights (Q1 FY’26 vs. Q1 FY’25)

– **Total Revenue:**
– $341.3 million, a decrease of **1.9%** from $347.8 million in the prior year.

– **Sales Volumes:**
– Decreased by **5.7%** to 13,568 units compared to 14,391 units in the prior year.

– **Interest Income:**
– Increased by $4.6 million, or **7.5%**, reaching $65.1 million.

– **Total Collections:**
– Increased by **6.2%** to $183.6 million.

– **Gross Margin Percentage:**
– Increased by **160 basis points** to **36.6%** compared to **35.0%** from the previous year.

– **Allowance for Credit Loss:**
– Improved to **23.35%**, down from **25.00%** at July 31, 2024.

– **Net Charge-Offs as a % of Average Finance Receivables:**
– Increased to **6.6%**, compared to **6.4%** from the prior year.

– **Interest Expense:**
– Decreased by **6.9%**, indicating more efficient debt management.

– **Loss Per Share:**
– Reported a loss of $0.69, compared to a loss of $0.15 in the same quarter last year.

## Business Developments

– The Company has successfully deployed and implemented its new LOS V2, which features a more advanced underwriting scorecard. This upgrade is expected to enhance risk assessment and improve sales and collections.

– There was a **10%** increase in credit application volume, which reflects heightened consumer demand.

– Over **72%** of the Company’s portfolio is now operating under enhanced underwriting standards, aiding in attracting better quality customers.

– The upgraded “Pay Your Way” platform has facilitated a shift towards online payments, enhancing convenience for customers. The number of customers enrolled in recurring payments has nearly doubled.

## Operating Metrics

– **Average Retail Sales Price:**
– Increased by **1.4%** to $19,564.

– **Total Gross Profit Per Retail Unit Sold:**
– Increased by **6.6%** to $7,456.

– **Same Store Revenue Growth:**
– Decreased by **4.1%** versus **8.6%** decrease in the previous year.

– **Accounts Over 30 Days Past Due:**
– Increased to **3.8%**, from **3.5%** in the prior year.

– **Active Customer Count:**
– Increased by **1.4%** to 104,691, compared to 103,231 last year.

## Balance Sheet and Financing

– **Total Assets:**
– Decreased to $610.8 million from $1.6 billion in the previous year.

– **Revolving Lines of Credit, Net:**
– Increased to $298.3 million compared to $204.8 million year over year.

– **Total Debt:**
– Recorded at $775.1 million, with improvements in debt leverage metrics showing a debt to finance receivables ratio of **51.1%**, down from **53.4%** the previous year.

– **Quarterly Dividend:**
– The Company declared dividends on subsidiary preferred stock of $10, consistent with the previous year.

## Conference Call

The Company will hold a conference call on September 4, 2025, at 9:00 a.m. ET to discuss its quarterly results. Participants may access the call via a provided registration link.

### Summary Overview

America’s Car-Mart is currently navigating a challenging market environment with some operational improvements noted through strategic investments. However, the decline in total revenue, sales volumes, and an increase in losses per share are concerning. Steps are being taken to mitigate risks through technology upgrades and a focus on quality customer engagement.

This summary outlines the key metrics and financial performance for America’s Car-Mart in the first quarter of fiscal year 2026, highlighting areas of growth and concern as the company continues to adapt to market conditions.

### America’s Car-Mart, Inc. Consolidated Statements of Operations (Amounts in thousands)

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### America’s Car-Mart, Inc. Condensed Consolidated Balance Sheet and Other Data (Amounts in thousands)