America’s Car-Mart, Inc. (NASDAQ:CRMT) reported a difficult quarter as weather disruptions, weaker sales volume and transition-related pressures hurt results.
Even so, the company highlighted improving unit economics and greater flexibility after recent changes to its capital structure.
• America’s Car-Mart stock is at significant support. Why did CRMT hit a new low?
Earnings Snapshot
The company reported third-quarter adjusted earnings per share of $1.53 loss, which missed the Street view of 28 cents loss. Quarterly sales of $286.792 million (down 12% year-over-year) missed the analyst consensus estimate of $331.927 million.
Sales volumes declined 22.1% to 10,275 units, reflecting constraints on origination capacity resulting from the company’s ongoing capital structure transition.
“The sales volume decline this quarter is a direct result of the moderation of capital deployed on inventory purchases and not a reflection of demand,” CEO Doug Campbell said.
In addition, sales were “challenged by severe weather in the South-Central U.S., which affected our entire footprint and resulted in significant store closures in the last week of January, as well as the impact of operating with a 12% smaller store footprint year-over-year,” added Campbell.
The allowance for credit losses as a percentage of finance receivables, net of deferred revenue and pending accident protection plan claims, increased to 25.53% at Jan. 31, 2026, from 23.25% at April 30, 2025.
In the quarter under review, gross profit per unit improved 8.8% to $7,762; gross margin percentage of 35.8% versus 35.7%. Total collections were $179.0 million, up 1.5% year-over-year.
Net charge-offs as a percentage of average finance receivables were 6.5%, compared to 6.1% in the prior year quarter.
“Just prior to the end of the second quarter, we closed a $300 million term loan, which eliminated our revolving line of credit and removed restrictive income statement covenants that had constrained our operational flexibility,” Campbell added.
The company reported total cash, including restricted cash, of $237 million as of Jan. 31, 2026.
CRMT Price Action: America’s Car-Mart shares are trading lower by 18.35% to $15.57 at publication on Thursday.
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