America’s Car-Mart, Inc. Completes $161.3 Million Term Securitization

Rhea-AI Summary

America’s Car-Mart (NASDAQ: CRMT) completed a term securitization, issuing $161.3 million of asset-backed notes on Dec. 18, 2025 with a weighted average coupon of 7.02%. The 2025-4 deal introduces a residual cash flow structure delivering monthly funds to the company and is intended to improve capital efficiency versus prior deals.

Management says the structure shifts from accelerated amortization (2025-3 coupon 5.46%) to retain more cash flow, reduce the need for frequent transactions and lower long-term cost of capital while improving liquidity and funding stability.

Positive

• $161.3 million asset-backed notes issued
• Residual cash flow delivers funds monthly to the company
• Structure intended to reduce long-term cost of capital
• Management cites improved liquidity and funding stability

Negative

• 7.02% weighted average coupon is higher than prior 5.46%
• Notes not registered under the Securities Act, limiting resale options

News Market Reaction

-2.86%

1 alert

-2.86% News Effect

On the day this news was published, CRMT declined 2.86%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Term securitization size: $161.3 million Weighted average coupon: 7.02% Prior ABS coupon: 5.46%

3 metrics

Term securitization size $161.3 million Principal amount of asset-backed notes in ACM Auto Trust 2025-4

Weighted average coupon 7.02% Coupon on 2025-4 asset-backed notes

Prior ABS coupon 5.46% Weighted average coupon on 2025-3 issuance referenced in release

Market Reality Check

Price: $22.22 Vol: Volume 157,930 is below t...

normal vol

$22.22 Last Close

Volume Volume 157,930 is below the 20-day average of 191,630, indicating no outsized trading ahead of this financing news. normal

Technical Shares at $26.97 are trading below the 200-day MA of $40.73 and about 57% under the 52-week high.

Peers on Argus

CRMT was up 3.81% while key peers showed mixed moves: RMBL up 38.96%, SDA up 1.0...

1 Up 1 Down

CRMT was up 3.81% while key peers showed mixed moves: RMBL up 38.96%, SDA up 1.01%, VRM up 2.41%, and JZXN/KFS down. Momentum scanner also showed AZI down 4.44% and UXIN up 5.65%, supporting a stock-specific rather than broad sector move.

Historical Context

5 past events · Latest: Dec 04 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 04	Quarterly earnings	Positive	+9.4%	Q2 FY2026 results with higher cash and modest revenue growth.
Nov 20	Earnings scheduling	Neutral	+1.0%	Announcement of Q2 results date and conference call details.
Oct 30	Term loan financing	Mixed	-3.0%	$300M secured term loan with warrants and revolver repayment.
Sep 04	Quarterly earnings	Negative	-18.2%	Q1 FY2026 loss with lower revenue and unit sales despite margin gains.
Aug 29	ABS securitization	Positive	-3.6%	Eighth ABS deal with $172M notes and improved 5.46% coupon.

Pattern Detected

Financing and securitization updates have produced mixed reactions, with some capital-structure actions selling off while recent earnings paired with balance sheet moves saw a strong positive response.

Recent Company History

Over the last few months, America’s Car-Mart has focused heavily on capital structure and funding. On Aug 29, 2025, it completed a $172 million securitization at a 5.46% coupon, followed by a new $300 million term loan closed on Oct 30, 2025. Earnings on Sep 4 and Dec 4, 2025 highlighted mixed operating trends but improving liquidity and gross margin. Today’s $161.3 million ABS deal continues this progression toward more efficient, diversified funding.

Market Pulse Summary

This announcement details a $161.3 million term securitization with a 7.02% weighted average coupon ...

Analysis

This announcement details a $161.3 million term securitization with a 7.02% weighted average coupon and a new residual cash flow structure intended to improve liquidity and capital efficiency. It follows earlier ABS deals and a large term loan, underscoring management’s focus on reshaping funding. Investors should monitor future disclosures on cash flow impacts, overall leverage, and credit performance to see how this financing strategy affects long-term cost of capital and balance sheet flexibility.

Key Terms

term securitization, asset-backed notes, weighted average coupon, residual cash flow structure, +2 more

6 terms

term securitization financial

"it has completed a term securitization transaction involving the issuance"

Term securitization is the process of pooling similar loans or receivables (like mortgages, car loans, or credit-card debt) and converting them into tradable securities with a defined maturity date. Think of it as bundling many small IOUs into a single bond that investors can buy or sell; it matters because it changes how cash flows, risk, and return are packaged, affecting yield, credit exposure, and liquidity for investors.

asset-backed notes financial

"issuance of $161.3 million in principal amount of asset-backed notes"

Asset-backed notes are investment papers that pay investors from the income produced by a pooled set of assets, such as loans, leases, or receivables. Think of buying a slice of a fruit basket where your returns come from sales of the fruit; the value and safety of the notes depend on how healthy the underlying assets are and how the payments are prioritized, so investors watch expected returns, default risk and liquidity closely.

weighted average coupon financial

"asset-backed notes with a weighted average coupon of 7.02%"

The weighted average coupon is the average interest rate of a group of loans or mortgage-backed securities, calculated by giving more weight to loans with larger remaining balances so the bigger pieces affect the average more. Think of it like a classroom average where students with more credits count more toward the grade. Investors use it to estimate expected cash interest, compare yields, and assess sensitivity to interest-rate changes and prepayments, which affect valuation and income stability.

residual cash flow structure financial

"incorporating a residual cash flow structure that delivers funds"

A residual cash flow structure describes how a company or deal allocates the money that remains after it pays required expenses like operating costs, taxes, interest and scheduled debt repayments. Investors care because this ‘leftover’ cash determines how much can be returned to shareholders, reinvested for growth, or used to pay special partners; like deciding who gets slices of the pie after everyone’s basic needs are met, it affects potential returns, timing of payments and risk.

cost of capital financial

"projected to reduce Car-Mart’s long-term cost of capital by minimizing"

The cost of capital is the average price a company pays to get money, whether by borrowing or selling shares, to run the business and fund projects. It matters to investors because it acts like a minimum hurdle: investments must deliver returns higher than this price to create value for shareholders, so comparing expected returns to the cost of capital helps judge whether growth plans will likely boost or reduce share value.

ABS market financial

"Since entering the ABS market in 2022, we’ve made progress"

The ABS market is where asset-backed securities — financial instruments backed by pools of loans like car loans, mortgages, or credit-card debt — are bought and sold. Think of it as a way for lenders to bundle many small loans into a package that investors can buy, which spreads risk like a mixed fruit basket; investors care because ABS offer a way to earn income tied to consumer and business lending and signal credit conditions in the economy.

AI-generated analysis. Not financial advice.

New Residual Structure Improves Capital Efficiency

ROGERS, Ark., Dec. 18, 2025 (GLOBE NEWSWIRE) -- America’s Car-Mart, Inc. (NASDAQ: CRMT) (“we,” “Car-Mart,” or the “Company”) announced today that it has completed a term securitization transaction involving the issuance of $161.3 million in principal amount of asset-backed notes with a weighted average coupon of 7.02%.

The 2025-4 transaction marks another significant milestone for Car-Mart, as it introduces a more efficient deal structure that generates increased cash flow for the business compared to previous securitizations. Additionally, by incorporating a residual cash flow structure that delivers funds to the Company on a monthly basis, this transaction is projected to reduce Car-Mart’s long-term cost of capital by minimizing the need for frequent future transactions and the associated fees.

“Multi-year strategies to improve our capital structure and operating platform are essential to repositioning Car-Mart for long-term success,” said Douglas Campbell, Chief Executive Officer of America’s Car-Mart. “Since entering the ABS market in 2022, we’ve made progress improving spreads and the weighted average coupon within legacy deal structures. With the 2025-4 transaction, we are now improving the structure to retain more cash flow in our business and make our ABS program more efficient. This is an important milestone reflecting Car-Mart’s continued evolution as we align our operating improvements with a stronger, more flexible capital structure.”

"Our transition to a residual cash flow structure is an important step forward in improving our securitization program. While the 7.02% weighted average coupon compares to 5.46% on our 2025-3 issuance, the difference primarily reflects our shift from an accelerated amortization structure to a residual cash flow structure that retains more value for Car-Mart over the life of the deal. We expect the long-term benefits to drive meaningful reductions in our cost of capital. The improvements we are making across our capital structure are providing Car-Mart with improved liquidity, better capital efficiency, and more stable funding capacity. We believe these efforts position the business for long-term success and value creation," said Jonathan Collins, Chief Financial Officer.

ACM Auto Trust 2025-4 is an indirect subsidiary of the Company. The notes have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This news release does not and will not constitute an offer to sell or the solicitation of an offer to buy the notes. This news release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.

About America’s Car-Mart, Inc.

America’s Car-Mart, Inc. (the “Company”) operates automotive dealerships in 12 states and is one of the largest publicly held automotive retailers in the United States focused exclusively on the “Integrated Auto Sales and Finance” segment of the used car market. The Company emphasizes superior customer service and the building of strong personal relationships with its customers. The Company operates its dealerships primarily in smaller cities throughout the South-Central United States, selling quality used vehicles and providing financing for substantially all of its customers. For more information about America’s Car-Mart, including investor presentations, please visit our website at www.car-mart.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements. Words such as “expects,” “believes,” “will,” “would,” “plans,” “intends,” and other similar words and expressions are intended to signify forward-looking statements. These forward-looking statements include, without limitation, statements regarding the Company’s capital structure, the potential benefits current and future securitizations will have on its business, future financing transactions, and expectations regarding the Company’s future business and operations. Actual events and the timing of such events could materially differ from those anticipated in such forward-looking statements as a result of certain risks and uncertainties, including general economic conditions in the markets in which the Company operates, including but not limited to fluctuations in gas prices, grocery prices and employment levels and inflationary pressure on operating costs; the availability of quality used vehicles at prices that will be affordable to our customers, including the impacts of changes in new vehicle production and sales; the ability to leverage the Cox Automotive services agreement to perform reconditioning and improve vehicle quality to reduce the average vehicle cost, improve gross margins, reduce credit loss, and enhance cash flow; the availability of credit facilities and access to capital through securitization financings or other sources on terms acceptable to us, and any increase in the cost of capital, to support the Company’s business; the Company’s ability to underwrite and collect its contracts effectively, including whether anticipated benefits from recent upgrades to the Company’s loan origination system, recently implemented digital payment platform and anticipated upgrades to the Company’s collections management software are achieved as expected or at all; competition; dependence on existing management; ability to attract, develop, and retain qualified general managers; changes in consumer finance laws or regulations, including but not limited to rules and regulations that have recently been enacted or could be enacted by federal and state governments; future shutdowns of the federal government or changes to federal or state government assistance programs impacting the Company’s customers; the ability to keep pace with technological advances and changes in consumer behavior affecting our business; security breaches, cyber-attacks, or fraudulent activity; the ability to identify and obtain favorable locations for new or relocated dealerships at reasonable cost; the ability to successfully transition customers and inventory from underperforming dealerships to nearby more productive dealerships; the ability to successfully identify, complete and integrate new acquisitions; the occurrence and impact of any adverse weather events or other natural disasters affecting the Company’s dealerships or customers; and additional risks described in more detail in the Company’s Annual Report on Form 10-K for the fiscal year ended April 30, 2025 and other documents on file with the Securities and Exchange Commission, each of which can be found on the SEC’s website, www.sec.gov, or the investor relations section of the Company’s website. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.

Contact:

SM Berger & Company
Andrew Berger, Managing Director
andrew@smberger.com
(216) 464-6400

FAQ

What did America’s Car-Mart (CRMT) announce on December 18, 2025?

Car-Mart completed a $161.3 million term securitization (ACM Auto Trust 2025-4) with a 7.02% weighted average coupon.

How does the 2025-4 securitization structure affect CRMT cash flow?

The deal uses a residual cash flow structure that delivers funds monthly, retaining more cash flow in the business.

Why is the 7.02% coupon higher than the prior CRMT ABS deal?

Management says the increase versus 5.46% on 2025-3 reflects a shift from accelerated amortization to a residual cash flow structure.

Will the 2025-4 securitization reduce CRMT's cost of capital?

Car-Mart projects the structure will reduce long-term cost of capital by minimizing frequent transactions and associated fees.

Are the ACM Auto Trust 2025-4 notes registered for public resale?

No; the notes have not been and will not be registered under the Securities Act, restricting offers and sales in the U.S. absent an exemption.