America's Car-Mart Reports First Quarter Fiscal Year 2027 Results

Capital constraints drove steep volume, revenue and margin declines as America’s Car-Mart seeks financing and strategic solutions under an amended credit agreement.

Rhea-AI Summary

America's Car-Mart (CRMT) reported first quarter FY27 results marked by severe capital-driven contraction, with retail units sold down 81.9% to 2,450 and total revenue down 57.3% to $145.8 million versus a year earlier.

Inventory fell 68.7% to $35.2 million, average dealerships in operation declined 39.0% to 94 after prior-year consolidations, and same-dealership revenue dropped 47.5%. Gross margin compressed to 21.8% from 36.6%, including a $4.7 million aggregate loss on third-party wholesale sales as the company shifted to wholesaling substantially all repossessed vehicles to accelerate cash. Net charge-offs rose to 9.5% of average finance receivables and accounts over 30 days past due increased to 4.6%. Total debt decreased 19.5% year-over-year to $623.9 million, while unrestricted cash was $27.5 million. A June 19, 2026 credit agreement amendment provided covenant relief and a short-term runway; its termination date was extended to September 11, 2026 as the Special Committee evaluates financing and strategic alternatives.

Positive

• Total revenue $145.8 million, helped by 7.0% higher average retail sales price
• Gross profit per retail unit up 7.5% year-over-year to $8,015
• Total debt reduced 19.5% year-over-year to $623.9 million
• Unrestricted cash $27.5 million, up from $9.7 million a year earlier
• Third-party wholesale sales nearly doubled to $21.0 million from $10.8 million
• Covenant relief amendment in place and all covenants met as of July 31, 2026

Negative

• Retail units sold down 81.9% year-over-year to 2,450
• Total revenue down 57.3% year-over-year to $145.8 million
• Gross margin compressed to 21.8% from 36.6%, including a $4.7 million wholesale loss
• Dealership count down 39.0% to 94 locations after consolidations
• Net charge-offs ratio increased to 9.5% from 6.6% of average finance receivables
• Interest expense rose 12.8% year-over-year to $19.2 million

News Explained

Car-Mart remains covenant-compliant, but no financing solution is committed before the September 11 amendment deadline.

Car-Mart’s capital-structure process remains at the evaluation stage: the June credit-agreement amendment was extended through September 11, 2026, and the company says it remained in compliance with applicable covenants as of the release.

The company says the review may produce no transaction favorable to the company or stockholders, and that additional financing may not be available on acceptable terms or at all.

The amendment provides covenant relief and a defined runway; the release describes alternatives and discussions rather than a completed transaction, so it does not establish a new financing or ownership change for existing common holders.

The stated resolution path is the expected September 9, 2026 Form 10-Q, which the company says will include Note B—Liquidity and Going Concern and its liquidity discussion.

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Details

Market reaction after 1Q27 earnings report: CRMT -22.09%

-11.8% Trough in 14 min

$1.88 $2.31 Day Range

$16.81M Market Cap

Following this news, CRMT has declined 22.09%, reflecting a significant negative market reaction. Argus tracked a trough of -11.8% from its starting point during tracking. Our momentum scanner has triggered 8 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $1.94.

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Market Context

The 41.72% 24-hour reaction to the July 14 earnings release diverged from its negative operating and...

Analysis

The 41.72% 24-hour reaction to the July 14 earnings release diverged from its negative operating and liquidity disclosures; the current quarter reported further declines in volume, revenue, and credit performance.

Key Figures

Total Revenue: $145.8 million (-57.3% year-over-year) Retail Units Sold: 2,450 units (-81.9% year-over-year) Inventory: $35.2 million +5 more

Total Revenue

$145.8 million (-57.3% year-over-year)

First quarter fiscal 2027

Retail Units Sold

2,450 units (-81.9% year-over-year)

First quarter fiscal 2027

Inventory

$35.2 million

July 31, 2026, versus $112.5 million a year earlier

Net Charge-Offs

9.5% of average finance receivables

Versus 6.6% in the prior-year quarter

Net Loss

$68.98 million

First quarter fiscal 2027

Gross Profit Margin

21.8%

Versus 36.6% in the prior-year quarter

Unrestricted Cash

$27.5 million

July 31, 2026, versus $47.0 million at April 30, 2026

Amendment Extension

Through September 11, 2026

Extension of the scheduled termination date under the credit agreement amendment

Previous Earnings Reports

4 past events · Latest: Jul 14

Same Type 4 events

1. Jul 14

   4Q26 earnings

   24h Move

   +41.7%

   Revenue and retail volume declined while management disclosed going-concern financing risks.

2. Mar 12

   3Q26 earnings

   24h Move

   -20.0%

   Retail volume and revenue declined amid financing activity and elevated credit-loss concerns.

3. Dec 04

   2Q26 earnings

   24h Move

   +10.7%

   Revenue was stable while sales volume declined and credit-loss metrics remained elevated.

4. Sep 04

   1Q26 earnings

   24h Move

   -18.2%

   Revenue and sales volume declined amid inventory constraints and higher procurement costs.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

net charge-offs, finance receivables, allowance for credit losses, non-gaap, +1 more

5 terms

net charge-offs financial

"Net charge-offs were 9.5% of average finance receivables"

Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.

finance receivables financial

"9.5% of average finance receivables against 6.6% a year ago"

Finance receivables are amounts a company expects to collect from customers or borrowers after providing goods, services, leases, or loans on credit—essentially the IOUs recorded on its balance sheet. They matter to investors because they represent future cash inflows but carry the risk of nonpayment; rising receivables can signal growing sales or cash strain, and changes in their quality affect a company’s liquidity, profit forecasts, and overall financial health.

allowance for credit losses financial

"The allowance for credit losses was $277.0 million"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

non-gaap financial

"adjusted SG&A (non-GAAP¹) was $37.9 million"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

senior secured term loan financial

"the larger balance outstanding under the senior secured term loan"

A senior secured term loan is a type of borrowing where a company borrows money and promises to pay it back over a fixed period, with the loan secured by the company's assets as collateral. Because it is "senior," it has priority over other debts if the company faces financial trouble, and being "secured" means lenders have a claim on specific assets. For investors, this makes the loan a safer and more predictable investment compared to unsecured or subordinate debts.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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ROGERS, Ark., Sept. 09, 2026 (GLOBE NEWSWIRE) -- America’s Car-Mart, Inc. (NASDAQ: CRMT) (“we,” “Car-Mart” or the “Company”), today reported financial results for the first quarter ended July 31, 2026.

President and CEO Doug Campbell commentary: 

Our first quarter results reflect the capital constraints that have defined our results over the last several quarters. With limited capacity to purchase inventory and fund originations, retail units were down 81.9% and revenue was down 57.3%. Inventory ended the quarter at $35.2 million against $112.5 million a year ago. This is a capital structure story, not a demand story. Application volume was limited by the vehicles we had available to sell.

Credit performance was also weaker. Net charge-offs were 9.5% of average finance receivables against 6.6% a year ago, and accounts over 30 days past due were 4.6% against 4.1%. Three things drive that: the contraction of the portfolio, continued fuel and cost-of-living pressure on our customers, and the transition of a small portion of the book to centralized collections, which we completed this quarter alongside the dealership consolidations. The transition work is now behind us.

Resolving our capital structure remains our first priority. The Special Committee, together with its advisors and management, continues to evaluate the range of financing and strategic alternatives available, including discussions with third parties. We do not intend to comment further on that process.

First Quarter Business Review

_{Note: Discussions in each section provide information for the first quarter of fiscal year 2027, compared to the first quarter of fiscal year 2026, unless otherwise noted.}

SALES VOLUME – Retail units sold decreased 81.9% to 2,450 units compared to the prior year's quarter, reflecting the Company's decision to manage capital and inventory at minimal levels, which declined 68.7% to $35.2 million at July 31, 2026 from $112.5 million a year earlier, and from $54.1 million at April 30, 2026. The decline in retail units sold exceeded the decline in ending inventory because inventory was drawn down over the course of the quarter, resulting in an average balance well below historical levels. These results were also impacted by the consolidation of 60 dealership locations during fiscal 2026, which reduced the Company's dealership count from 154 to 94.

Application volume processed through credit decisioning was constrained by the inventory available for sale, which was limited by the Company’s reduced ability to purchase vehicles during the period, and not by a decline in customer demand.

TOTAL REVENUE – Total revenue for the quarter was $145.8 million, a decrease of 57.3% year-over-year. The decline was primarily driven by lower retail unit volume — consistent with the reduction in inventory purchases and the store consolidations discussed above — partially offset by a 7.0% increase in the average retail sales price of the vehicle, excluding ancillary products, from $17,319 to $18,530, as the Company prioritized sales of select inventory to higher credit quality customers. The decline in retail volume was partially offset by an increase in third-party wholesale sales, which rose to $21.0 million from $10.8 million. The increase primarily reflects a change in disposition strategy rather than a change in repossession activity. With limited capital available to fund new originations, the Company began wholesaling substantially all repossessed vehicles in late May to accelerate cash conversion, rather than retaining a portion of those units for retail sale, as it had historically. Interest income decreased 14.2% to $55.8 million, primarily due to the $325 million decrease in the portfolio size.

GROSS PROFIT – Gross profit margin as a percentage of sales was 21.8%, compared to 36.6% in the prior year quarter. Total gross profit per retail unit sold increased by 7.5% to $8,015. The decline in gross profit margin reflects two primary factors. First, third-party wholesale sales, which carry lower margins, represented 23.4% of total sales compared to 3.9% in the prior year quarter, resulting in an aggregate loss of $4.7 million as the Company made a decision to sell more repossessed vehicles through wholesale channels, rather than re-retailing them, as part of its capital management strategy. Second, the fixed and semi-fixed components of cost of sales were spread over a substantially reduced retail sales base. Total gross profit per retail unit sold is calculated based on total gross profit, which includes the loss on third-party wholesale sales, divided by a retail unit count that declined 81.9%.

SG&A EXPENSE – SG&A expenses totaled $51.6 million for the quarter, or 57.3% of sales, compared to $51.4 million and 18.6% of sales in the prior year quarter. The current quarter included approximately $13.7 million in non-recurring charges, consisting of $9.6 million of professional fees related primarily to our capital structure strategic review and $4.1 million of retention award expense. Excluding these items, adjusted SG&A (non-GAAP¹) was $37.9 million.

CREDIT AND UNDERWRITING PERFORMANCE – Net charge-offs as a percentage of average finance receivables were 9.5%, compared to 6.6% in the prior year quarter. The increase in the ratio mostly reflects the contraction in the receivables base — the principal balance of finance receivables declined 21.4% compared to the prior year quarter as originations were limited due to liquidity constraints.

Net charge-offs increased $24.4 million compared to the prior year quarter, reflecting a combination of operational and macroeconomic factors. First, the Company began rolling out a centralized collections function in the fourth quarter of fiscal year 2026, consolidating account servicing that had previously been performed at the dealership level, and completed implementation during the first quarter of fiscal year 2027 in connection with the transition of the consolidated dealerships. The ramp-up spanned both periods and included the migration of active accounts to the centralized platform, the hiring and training of collections staff, and the implementation of standardized contact and workflow procedures. Collections activity during this ramp-up period reflected the operational demands of the transition, and delinquency and charge-off performance on the affected accounts was elevated relative to the Company’s historical experience. Separately, continued fuel and cost-of-living pressure weighed on the Company’s customers throughout the quarter.   

Total collections were $164.4 million, down 10.5% from the prior year quarter, reflecting the smaller receivables base; average collected per active customer per month improved to $594 from $585.

Accounts over 30 days past due were 4.6% at quarter end, compared to 4.1% a year ago and 4.1% at April 30, 2026. In addition to the smaller receivables base against which delinquency is calculated, the year-over-year increase primarily reflects the transition of certain accounts in connection with the Company's dealership consolidation, either to nearby dealerships or to the Company's centralized collections model, as described above.

ALLOWANCE FOR CREDIT LOSSES – The allowance for credit losses was $277.0 million at July 31, 2026, or 24.74% of finance receivables, net of deferred revenue and pending accident protection plan claims, compared to 23.35% at July 31, 2025 and 25.15% at April 30, 2026.

The year-over-year increase primarily reflects changes in the broader macroeconomic environment, rather than a change in underlying credit behavior, and the reduction in finance receivable originations undertaken to preserve liquidity. The reduction compared to April 30 reflects the smaller portfolio size and the improvement in qualitative factors, such as inflation.

LEVERAGE & LIQUIDITY – Total debt declined to $623.9 million, a reduction of $151.3 million, or 19.5%, from $775.1 million at July 31, 2025. Debt to finance receivables was 52.4% at July 31, 2026, compared to 51.1% at July 31, 2025. Net debt to finance receivables (non-GAAP¹) was 43.1% at July 31, 2026.

Total cash, including restricted cash, decreased to $110.0 million at July 31, 2026, compared to $121.4 million at July 31, 2025 and $131.6 million at April 30, 2026. Unrestricted cash, which is available to fund operations and capital needs, was $27.5 million at July 31, 2026, up from $9.7 million a year earlier, but down from $47.0 million at April 30, 2026. Absent a revolving credit facility, preserving unrestricted liquidity remains a primary focus. The Company has taken deliberate steps to align its cost structure with available capital, including the store footprint rationalization discussed earlier.

CAPITAL STRUCTURE – On June 19, 2026, we entered into an amendment to our Credit and Guaranty Agreement with our lending group, which provides covenant relief and a defined runway that will give the Company – with the guidance of the Special Committee – time to evaluate a full range of financing and strategic options available. As of the July 31, 2026 testing date under the amendment, the Company was in compliance with all applicable covenants, and it remains in compliance as of the date of this release.

On September 4, 2026, the scheduled termination date of this amendment was extended through September 11, 2026. The purpose of this extension is to allow the Company additional time to evaluate the alternatives available and continue discussions with prospective counterparties. The Company remains focused on the interests of its lenders, stockholders, associates, customers, and vendors as this process continues. The Company cannot assure, however, that the review of strategic and financing alternatives will result in any transaction or other outcome favorable to the Company or its stockholders or that the Company will be able to secure additional financing on acceptable terms, or at all.

INTEREST EXPENSE – Interest expense for the quarter was $19.2 million, an increase of $2.2 million, or 12.8%, compared to $17.0 million in the prior year quarter. The increase reflects the larger balance outstanding under the senior secured term loan, and its higher interest rate, compared to the revolving line of credit in place in the prior year quarter. During the quarter, $1.1 million of interest due on the senior secured loan was paid in kind and added to the outstanding principal balance of the loan. These effects were partly offset by lower interest on the Company’s asset-backed non-recourse notes payable, whose balance fell from $610.8 million to $357.7 million, and by the absence of revolver interest following repayment and retirement of the Company’s revolver in October 2025.

Form 10-Q

The Company expects to file its Quarterly Report on Form 10-Q for the quarter ended July 31, 2026 on September 9, 2026. This release should be read together with that report, including Note B — Liquidity and Going Concern — to the condensed consolidated financial statements and the discussion of liquidity and capital resources in Management’s Discussion and Analysis of Financial Condition and Results of Operations.

_{¹ The calculation of this non-GAAP financial measure and a reconciliation to the most directly comparable GAAP measure are included in the tables accompanying this release.}

Key Operating Results
		Three Months Ended
		July 31,
			2026					2025				Change
	Operating Data:
	Retail units sold		2,450					13,568				(81.9	)	%
	Average number of dealerships in operation		94					154				(39.0	)	%
	Average retail units sold per dealership per month		8.7					29.4				(70.4	)	%
	Average retail sales price, excluding ancillary products	$	18,530				$	17,319				7.0		%
	Total gross profit per retail unit sold	$	8,015				$	7,456				7.5		%
	Total gross profit percentage		21.8		%			36.6		%		(1,480	)	bps
	Same dealership revenue growth		(47.5	)	%			(4.1	)	%
	Net charge-offs as a percent of average finance receivables		9.5		%			6.6		%		290		bps
	Total collected (principal, interest and late fees),in thousands	$	164,377				$	183,571				(10.5	)	%
	Average total collected per active customer per month	$	594				$	585				1.5		%
	Average percentage of finance receivables-current (excl. 1-2 day)		69.0		%			80.8		%		(1,180	)	bps
	Average down-payment percentage		5.4		%			4.9		%		50		bps
	Period End Data:
	Dealerships open		94					154				(39.0	)	%
	Accounts over 30 days past due		4.6		%			4.1		%		50		bps
	Active customer count		85,753					104,691				(18.1	)	%
	Principal balance of finance receivables(in thousands)	$	1,190,950				$	1,515,681				(21.4	)	%
	Weighted average total contract term		49.3					48.3				2.0		%

Conference Call and Webcast

The Company will not host a conference call to discuss its first quarter fiscal 2027 results. Given the ongoing review of strategic and financing alternatives, the Company does not intend to discuss that review beyond the information contained in this release and in its Quarterly Report on Form 10-Q for the quarter ended July 31, 2026. Investors and analysts with questions may contact the Company using the investor relations contact information below; the Company will respond only with information that has been publicly disclosed.

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.

Non-GAAP Financial Measures

This news release contains financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP). Specifically, we present as non-GAAP financial measures in this news release adjusted SG&A; adjusted earnings (loss) per share; total debt, net of total cash; and the ratio of debt, net of cash, to finance receivables. These non-GAAP measures are provided as supplemental measures to evaluate operating performance, cost structure, and leverage, and portfolio economics and to facilitate period-to-period comparisons that may be impacted by non-recurring or non-cash items. We believe investors benefit from referring to these non-GAAP measures and ratios in assessing our leverage, balance sheet risk, operating results and related trends, and when planning and forecasting future periods.

These measures should not be considered in isolation or as substitutes for reported GAAP results, as they may include or exclude certain items relative to similar GAAP-based measures and may not be comparable to similarly titled measures reported by other companies. We strongly encourage investors to review our consolidated financial statements included in our publicly filed reports in their entirety and not rely solely on any one financial measure or communication. The most directly comparable GAAP financial measures, as well as reconciliations to those measures, are presented in the tables accompanying this release.

Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements address the Company’s future events, objectives, plans and goals, as well as the Company’s intent, beliefs and current expectations and projections regarding future financial and operating performance and can generally be identified by words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “project,” “foresee,” and other similar words or phrases. Specific events addressed by these forward-looking statements may include, but are not limited to:

• the Company's ability to continue as a going concern;
• the Company's review of strategic and financing alternatives and the potential outcomes of that review and its ability to execute and consummate any potential transaction;
• the covenant relief and waivers under, and the Company's ability to satisfy the milestones and other conditions of, the June 19, 2026 amendment to the Company’s Credit and Guaranty Agreement;
• the Company's liquidity and its efforts to preserve liquidity, including the curtailment of inventory purchases and finance receivable originations;
• future earnings performance;
• the availability of capital, including through income from operations and securing additional financing to sustain and supplement operating cash flows through additional securitization transactions, warehouse credit facilities, or other sources, and the Company's ability to consummate such financing transactions;
• the benefits of recent or future changes to the Company’s capital structure;
• operational infrastructure investments;
• technological investments and initiatives;
• the impact of cost reduction and dealership footprint optimization initiatives on operating performance and customer service levels;
• the Company's ability to execute its business plan; and
• the Company’s business and operating strategies and expectations.
  
  

These forward-looking statements are based on the Company’s current estimates and assumptions and involve various risks and uncertainties. As a result, you are cautioned that these forward-looking statements are not guarantees of future performance, and that actual results and events could differ materially from those projected in these forward-looking statements. Factors that may cause actual results or events to differ materially from the Company’s projections include, but are not limited to:

• the existence of substantial doubt about the Company's ability to continue as a going concern, and the effects of that disclosure on the Company's relationships with customers, associates, suppliers, lenders and other stakeholders;
• the Company's ability to satisfy the milestones and other conditions of the June 19, 2026 amendment to its Credit and Guaranty Agreement, to further extend the related covenant relief and waiver period beyond September 11, 2026, if needed, and to obtain further waivers, covenant relief, forbearance or financing from its lenders on acceptable terms, or at all;
• the outcome of the Company's review of strategic and financing alternatives, including the risk that the review does not result in any transaction, results in a transaction on unfavorable terms, or is not completed in a timely manner, and the costs, timing and uncertainties associated with the review and related advisory engagements;
• the Company's substantial level of indebtedness and its ability to service that indebtedness, and the risk that its indebtedness could be accelerated (including under cross-default or cross-acceleration provisions) and that the Company would not have sufficient liquidity to repay it;
• the Company's ability to fund finance receivable originations, vehicle inventory purchases, debt service and operating expenses, including its ability to establish a warehouse credit facility and to continue to complete asset-backed securitization transactions;
• the curtailment of the Company's vehicle inventory purchases and finance receivable originations and the effect of that curtailment on the Company's sales, revenues and collections;
• the Company's changes to customer collection practices, including the transition to a centralized collections model and the transfer of customer accounts to dealerships located farther from customers' prior collection locations and the effect of the change on collections, revenues, and customer relationships;
• the potential need for the Company to seek protection under applicable bankruptcy or insolvency laws;
• the possibility that holders of the Company's common stock could experience a significant or complete loss of their investment, including as a result of any restructuring, recapitalization, or dilutive issuance of equity or equity-linked securities;
• the Company's ability to maintain compliance with the continued listing requirements of, and the continued listing of its common stock on, the Nasdaq Stock Market;
• the diversion of management's attention from ordinary-course operations as a result of the strategic review and the Company's liquidity and capital-structure matters;
• 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, inflationary pressure on operating costs and customers’ ability to make vehicle payments;
• the availability of quality used vehicles at prices that will be affordable to the Company’s customers, including the impacts of changes in new vehicle production and sales, tariffs and trade restrictions on the automotive industry, and elevated wholesale vehicle costs;
• the availability of and access to capital through warehouse credit facilities, securitization financings or other debt or equity financing sources on terms acceptable to the Company, and any increase in the cost of capital, to support the Company’s business;
• the Company’s ability to consummate debt or equity financing transactions on terms acceptable to the Company;
• the Company’s compliance with financial covenants and other terms of its senior secured term loan, non-recourse notes payable, and any future debt facilities;
• the Company’s ability to underwrite and collect its contracts effectively, including whether anticipated benefits from the Company’s recently implemented loan origination system 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 occurrence and impact of any adverse weather events or other natural disasters affecting the Company’s dealerships or customers;
• the Company's ability to maintain effective internal control over financial reporting following the remediation of its previously identified material weakness, and to design, implement, and maintain effective disclosure controls and procedures;
• the potential dilutive impact of outstanding warrants to purchase the Company's common stock, if exercised, and of any other future issuances of the Company's equity securities; and
• potential business and economic disruptions and uncertainty that may result from any future public health crises and any efforts to mitigate the financial impact and health risks associated with such developments.
  
  

Additionally, risks and uncertainties that may affect future results include those described from time to time in the Company’s SEC filings. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.

Marie Persichetti
Chief Financial Officer
(479) 464-9944
InvestorRelations@car-mart.com

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

Media Contact
Rachel Chesley / Misha Ross
Car-MartComms@fticonsulting.com

	America’s Car-Mart Consolidated Results of Operations
	(Amounts in thousands, except per share data)
													As a % of Sales
		Three Months Ended											Three Months Ended
		July 31,											July 31,
			2026				2025			% Change			2026			2025
	Statements of Operations:
	Revenues:
	Sales	$	89,902			$	276,240			(67.5	)	%	100.0		%	100.0		%
	Interest income		55,849				65,072			(14.2	)		62.1			23.6
	Total		145,751				341,312			(57.3	)		162.1			123.6
	Costs and expenses:
	Cost of sales		70,266				175,080			(59.9	)		78.2			63.4
	Selling, general and administrative		51,551				51,408			0.3			57.3			18.6
	Provision for credit losses		71,559				103,036			(30.5	)		79.6			37.3
	Interest expense		19,226				17,042			12.8			21.4			6.2
	Depreciation and amortization		1,802				2,139			(15.8	)		2.0			0.8
	Loss on disposal of property and equipment		178				9			1,877.8			0.2			-
	Total		214,582				348,714			(38.5	)		238.7			126.3
	Loss before taxes		(68,831	)			(7,402	)					(76.6	)		(2.7	)
	Provision for (benefit of) income taxes		149				(1,666	)					0.2			(0.6	)
	Net loss	$	(68,980	)		$	(5,736	)					(76.7	)		(2.1	)
	Dividends on subsidiary preferred stock		(10	)			(10	)
	Net loss attributable to common shareholders	$	(68,990	)		$	(5,746	)
	Loss per share:
	Basic	$	(8.28	)		$	(0.69	)
	Diluted	$	(8.28	)		$	(0.69	)
	Weighted average number of shares used in calculation:
	Basic		8,329,512				8,274,054
	Diluted		8,329,512				8,274,054

America’s Car-Mart
Condensed Consolidated Balance Sheet and Other Data
(Amounts in thousands, except per share data)
	July 31,				April 30,				July 31,
		2026				2026				2025
Cash and cash equivalents	$	27,532			$	46,962			$	9,666
Restricted cash	$	82,445			$	84,684			$	111,761
Finance receivables, net	$	909,797			$	1,079,167			$	1,183,452
Inventory	$	35,194			$	54,074			$	112,451
Total assets	$	1,206,139			$	1,416,840			$	1,607,974
Senior Secured Notes Payable, net	$	266,205			$	263,681			$	-
Revolving lines of credit, net	$	-			$	-			$	164,394
Non-recourse notes payable, net	$	357,655			$	458,685			$	610,750
Treasury stock	$	298,542			$	298,517			$	298,291
Total equity	$	376,480			$	445,656			$	564,931
Shares outstanding		8,338,478				8,305,520				8,277,613
Book value per outstanding share	$	45.20			$	53.71			$	68.30
Allowance for credit losses		(276,952	)			(329,901	)			(326,070	)
Allowance as % of principal balance net of deferred revenue		24.74	%			25.15	%			23.35	%
Changes in allowance for credit losses:
	Three Months Ended
	July 31,
		2026				2025
Balance at beginning of period	$	329,901			$	323,100
Provision for credit losses		71,559				103,036
Charge-offs, net of collateral recovered		(124,508	)			(100,066	)
Balance at end of period	$	276,952			$	326,070

America’s Car-Mart
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)
	Three Months Ended
	July 31,
		2026				2025
Operating activities:
Net loss	$	(68,980	)		$	(5,736	)
Provision for credit losses		71,559				103,036
Losses on claims for accident protection plan		7,132				8,595
Depreciation and amortization		1,802				2,139
Finance receivable originations		(40,976	)			(262,746	)
Finance receivable collections		108,810				118,720
Inventory		41,514				28,618
Deferred accident protection plan revenue		(10,970	)			(578	)
Deferred service contract revenue		(18,633	)			(455	)
Income taxes, net		(76	)			(2,255	)
Deferred income taxes		-				608
Other		(11,113	)			4,136
Net cash provided by (used in) operating activities		80,069				(5,918	)
Investing activities:
Purchase of property and equipment and other		(90	)			(459	)
Proceeds from sale of property and equipment		881				20
Net cash provided by (used in) investing activities		791				(439	)
Financing activities:
Issuance of common stock		29				69
Purchase of common stock		(25	)			(71	)
Dividend payments		(10	)			(10	)
Change in cash overdrafts		-				6,162
Debt issuance costs		(662	)			(1,708	)
Non-recourse notes payable, net		(101,861	)			38,501
Revolving line of credit, net		-				(39,696	)
Net cash provided by (used in) financing activities		(102,529	)			3,247
Decrease in cash, cash equivalents, and restricted cash	$	(21,669	)		$	(3,110	)

America’s Car-Mart
Reconciliation of Non-GAAP Financial Measures
(Amounts in thousands)
Calculation of Debt, Net of Total Cash, to Finance Receivables:
	July 31, 2026				July 31, 2025
Debt:
Senior Secured Notes Payable, net	$	266,205			$	-
Revolving lines of credit, net		-				164,394
Notes payable, net		357,655				610,750
Total debt	$	623,860			$	775,144
Cash:
Cash and cash equivalents	$	27,532			$	9,666
Restricted cash		82,445				111,761
Total cash, cash equivalents, and restricted cash	$	109,977			$	121,427
Debt, net of total cash	$	513,883			$	653,717
Principal balance of finance receivables	$	1,190,950			$	1,515,681
Ratio of debt to finance receivables		52.4	%			51.1	%
Ratio of debt, net of total cash, to finance receivables		43.1	%			43.1	%
America’s Car-Mart
Reconciliation of Non-GAAP Financial Measures
(Amounts in thousands)
Calculation of Adjusted SG&A:
	Three Months Ended				Three Months Ended
	July 31,				July 31,
		2026				2025
Sales		89,902				276,240
Selling, general and administrative		51,551				51,408
Retention bonus (1)		4,083				-
Professional fees related to capital restructuring (1)		9,578				-
Adjusted selling, general and administrative		37,890				51,408
America’s Car-Mart
Reconciliation of Non-GAAP Financial Measures
(Amounts in thousands)
Calculation of Adjusted Loss Per Share:
	Three Months Ended
	July 31,
		2026
Net loss attributable to common shareholders (A)	$	(68,990	)
Retention bonus (1)		4,083
Professional fees related to capital restructuring (1)		9,578
Pre-tax impact of adjustments (B)		13,661
Tax effect of adjustment [effective tax rate of (0.2)%] (C)		(27	)
Tax impact of deferred tax asset valuation allowance (D)		-
Post-tax impact of adjustments (B+C+D)		13,634
Adjusted net loss attributable to common shareholders (A+(B+C+D))		(55,356	)
Weighted average shares outstanding		8,330
Adjusted loss per share	$	(6.65	)
Diluted earnings (loss) per share (GAAP) (2)	$	(8.28	)
Diluted earnings (loss) per share impact of adjustments	$	1.64
(1) The Company recorded certain one-time items in each quarter that did not recur in the other period; as a result, the non-GAAP adjustments reflected in each reconciliation may differ between periods.
(2) Diluted earnings (loss) per share for the current quarter was the same as basic earnings (loss) per share because the net loss makes potential common stock equivalents anti-dilutive.

FAQ

How has America’s Car-Mart changed its approach to repossessed vehicles in the quarter?

The company began wholesaling substantially all repossessed vehicles to third parties in late May 2026 to accelerate cash conversion, rather than retaining a portion of those units for retail sale as it had historically. This change contributed to third-party wholesale sales increasing to $21.0 million from $10.8 million, but also produced an aggregate loss of $4.7 million on wholesale sales and pressured gross margin.

What is the status and purpose of the amended credit agreement?

On June 19, 2026, the company entered into an amendment to its Credit and Guaranty Agreement that provides covenant relief and a defined runway to evaluate financing and strategic options under the oversight of a Special Committee. As of the July 31, 2026 testing date, the company was in compliance with all covenants. The amendment’s scheduled termination date was extended on September 4, 2026 through September 11, 2026 to allow additional time to assess alternatives and continue discussions with prospective counterparties.

How have liquidity and leverage metrics evolved year-over-year?

Total debt declined to $623.9 million, down $151.3 million, or 19.5%, from July 31, 2025. Debt to finance receivables was 52.4%, and net debt to finance receivables (a non-GAAP measure) was 43.1% at July 31, 2026. Total cash, including restricted cash, was $110.0 million, with unrestricted cash at $27.5 million, up from $9.7 million a year earlier but down from $47.0 million at April 30, 2026. The company states that preserving unrestricted liquidity remains a primary focus in the absence of a revolving credit facility.

What changes did America’s Car-Mart make to its store footprint and collections operations?

During fiscal 2026, the company consolidated 60 dealership locations, reducing its dealership count from 154 to 94, which lowered average dealerships in operation by 39.0% year-over-year in the quarter. It also transitioned a portion of its portfolio to a centralized collections function, completing that rollout in the first quarter of fiscal 2027. The transition involved migrating accounts, hiring and training collections staff, and implementing standardized procedures, and the company reports that credit performance on affected accounts was weaker during this ramp-up period.

Will there be an earnings conference call for the first quarter of fiscal 2027?

No. The company will not host a conference call to discuss first quarter fiscal 2027 results. It states that, given the ongoing review of strategic and financing alternatives, it does not intend to discuss that review beyond the information in this release and its Form 10-Q. Investors and analysts with questions may contact the company using the investor relations contact information provided, and the company will respond only with information that has been publicly disclosed.