America’s Car-Mart Reports Fourth Quarter and Fiscal Year 2025 Results

Rhea-AI Summary

America's Car-Mart (NASDAQ: CRMT) reported mixed Q4 and FY2025 results. In Q4, total revenue increased 1.5% to $370.2M with sales volumes up 2.6% to 15,649 units. Q4 diluted EPS improved significantly to $1.26 vs $0.06 year-over-year. For FY2025, total revenue slightly decreased 0.2% to $1.4B, while sales volumes declined 1.7% to 57,022 units. The company saw improvements in credit metrics, with net charge-offs improving to 25.9% vs 27.2% and allowance for credit losses improving to 23.25%. Gross margin percentage increased 200 basis points to 36.7% for the full year. The company completed a $216M securitization with a 6.27% weighted average coupon. Active customer count grew 2.4% to 104,682, and the company maintained its store count at 154 locations.

Positive

• Q4 diluted EPS significantly improved to $1.26 from $0.06 year-over-year
• Gross margin percentage increased 200 basis points to 36.7% for full year
• Credit metrics improved with net charge-offs decreasing to 25.9% from 27.2%
• Active customer count grew 2.4% to 104,682
• Successfully completed $216M securitization with improved coupon rate
• Total collections increased 3.7% to $714.1M for the full year

Negative

• Full year revenue declined 0.2% to $1.4B
• Sales volumes decreased 1.7% to 57,022 units for the full year
• SG&A expenses increased 8.6% to $48.3M in Q4
• Same store revenue declined 5.0% for the full year
• Delinquencies (30+ days) increased by 30 basis points to 3.4%

Insights

Financial Analyst

Car-Mart shows significant earnings improvement and credit quality gains despite modest revenue growth, indicating successful business transformation.

America's Car-Mart has delivered a notable turnaround in Q4 and fiscal year 2025, with diluted EPS improving to $1.26 from just $0.06 in the same quarter last year. For the full year, the company swung from a loss of $4.92 per share to earnings of $2.33 per share, demonstrating substantial operational improvement despite essentially flat revenue.

The credit quality metrics show particularly encouraging trends. The allowance for credit losses improved to 23.25% from 25.32% a year ago, while net charge-offs decreased to 6.9% from 7.3% in Q4. This indicates their enhanced loan origination system and underwriting standards are delivering results, with approximately 65.7% of the portfolio now originated under their improved LOS.

Gross margin expansion stands out as a key achievement, increasing by 90 basis points to 36.4% for Q4 and by 200 basis points to 36.7% for the full year. This margin improvement, driven by optimized vehicle pricing and procurement strategies, has been crucial in offsetting the 1.1% decrease in average retail sales price to $17,240, which reflects the company's deliberate focus on improving affordability.

The company's deleveraging efforts are also bearing fruit, with debt to finance receivables improving to 51.5% from 52.6% a year ago. Their recent securitization transaction of $216 million at a 6.27% weighted average coupon—an improvement of 117 basis points from their October 2024 transaction—demonstrates increasing capital market confidence in their business model.

While SG&A expenses increased by 8.6% to $48.3 million, this appears to be a strategic investment in technology and talent as part of their transformation plan. The 2.4% growth in active customers to 104,682 suggests these investments may be starting to drive customer acquisition, though same-store revenue declined by 3.9%, indicating some operational challenges remain.

The company's collections increased by 2.1% to $191.1 million for Q4 and by 3.7% to $714.1 million for the full year, further supporting the narrative of improving operational efficiency and credit quality. With sales volumes increasing 2.6% in Q4 despite a challenging industry environment, Car-Mart appears to be gaining momentum after successfully implementing much of its transformation strategy.

ROGERS, Ark, June 12, 2025 (GLOBE NEWSWIRE) -- America’s Car-Mart, Inc. (NASDAQ: CRMT) (“we,” “Car-Mart” or the “Company”), today reported financial results for the fourth quarter and full year ended April 30, 2025.

Fourth Quarter Key Highlights (FY’25 Q4 vs. FY’24 Q4, unless otherwise noted) Total revenue was $370.2 million, up 1.5% Sales volumes increased 2.6% to 15,649 units Interest income increased $2.4 million, or 4.2% Total collections increased 2.1% to $191.1 million Gross margin percentage increased 90 basis points to 36.4% Allowance for credit loss improved to 23.25%, compared to 24.31% at January 31, 2025, and 25.32% at April 30, 2024 Net charge-offs as a % of average finance receivables improved to 6.9% vs. 7.3% Interest expense decreased 2.2% Diluted earnings per share of $1.26 vs. $0.06   Full Year Key Highlights (FY’25 vs. FY’24, unless otherwise noted) Total revenue was $1.4 billion, down 0.2% or $3.0 million Sales volumes decreased 1.7% to 57,022 units Interest income increased $11.6 million, or 5.0% Total collections increased 3.7% to $714.1 million Gross margin percentage increased 200 basis points to 36.7% Net charge-offs as a % of average finance receivables improved to 25.9% vs. 27.2% Active customer count increased by 2.4% to 104,682 Diluted earnings per share of $2.33 vs. a loss per share of $4.92

President and CEO Doug Campbell commentary:
“Fiscal year 2025 marked a pivotal period of transformation for our business as we successfully laid much of the groundwork for growth. Key accomplishments include expanded capabilities of our loan origination system (LOS), strengthening of our leadership team, and the expansion of gross margins. Our work related to our capital structure is notable and will continue into the new fiscal year. I’m incredibly proud of our team’s dedication and execution.”

“Despite a dynamic industry environment, we remain agile and focused on positioning the Company for profitable, long-term success. We are excited to turn our attention to expanding our differentiated model and help more consumers stay on the road.”

Fourth Quarter Fiscal Year 2025 Key Operating Metrics

Dollars in thousands, except per share data. Dollar and percentage changes may not recalculate due to rounding. Charts may not be to scale.

Fiscal Year 2025 Key Operating Metrics

Dollars in thousands, except per share data. Dollar and percentage changes may not recalculate due to rounding. Charts may not be to scale.

Fourth Quarter Business Review

Note: Discussions in each section provide information for the fourth quarter of fiscal year 2025, compared to the fourth quarter of fiscal year 2024, unless otherwise noted.

TOTAL REVENUE – A 1.5% increase in revenue to $370.2 million was driven by an increase in retail units sold, and a 4.2% increase in interest income. Sales volumes increased by 2.6%, to 15,649 units vs. 15,251 units. The average vehicle sales price decreased $316 year-over-year and $70 sequentially to $17,240, reflecting the Company’s continued efforts to increase affordability.

GROSS PROFIT – Gross profit margin as a percentage of sales reached 36.4% vs. 35.5%, reflecting a 90-basis point improvement year-over-year. This increase was primarily driven by continued optimization in vehicle pricing, procurement, and disposal strategies.

NET CHARGE-OFFS – Net charge-offs as a percentage of average finance receivables improved to 6.9%, compared to 7.3%. On a relative basis, we saw improvements in both the frequency and severity of losses. Delinquencies (30+ days) increased by 30 basis points to 3.4% of average finance receivables but improved by 30 basis points sequentially.

ALLOWANCE FOR CREDIT LOSSES – The allowance for credit losses as a percentage of finance receivables, net of deferred revenue and pending accident protection plan claims, improved to 23.25% at April 30, 2025, from 24.31% at January 31, 2025. The primary drivers of this change were continued favorable performance in contracts originated under the Company’s enhanced underwriting standards as well as an increase in the outstanding portfolio balance (excluding acquisitions) originated under the Company’s LOS to approximately 65.7%.

UNDERWRITING – As a result of offering more attractive deal terms to appeal to higher-rated customers, the Company experienced a modest shift in financing metrics. For the quarter ending April 30, 2025, the average down payment was 6.2% of the average retail sales price, a slight decrease from 6.5% in the same quarter of 2024. The average loan term was 44.4 months, representing an increase of 0.4 months compared to the prior year’s quarter, but a decrease of 0.2 months from the previous quarter.

SG&A EXPENSE – SG&A expenses were $48.3 million compared to $44.5 million, up 8.6%, primarily due to recent investments in technology and talent. Due to the Company’s most recent acquisitions still building out their base of accounts, SG&A per average customer was $462, compared to $435, a 6.1% increase.

LEVERAGE & LIQUIDITY – Debt to finance receivables and debt, net of cash, to finance receivables (non-GAAP)¹ were 51.5% and 43.2%, compared to 52.6% and 46.0%, respectively, at April 30, 2024. During the fiscal year ended April 30, 2025, the Company grew finance receivables by $73.8 million, increased inventory by $4.8 million, and invested in acquisition and fixed assets of $11.4 million, with a $7.8 million decrease in debt, net of cash.

FINANCINGS – On May 29, 2025, Car-Mart completed a term securitization transaction involving the issuance of $216 million of asset-backed notes with an overall weighted average life adjusted coupon of 6.27%. The weighted average life adjusted coupon improved by 22 basis points compared to the Company’s January 2025 issuance and by 117 basis points from the October 2024 securitization transaction. Net proceeds were used to pay down the outstanding balance on the Company’s revolving line of credit. The Company continues to explore options to diversify and expand its financing sources such as potential warehouse lines of credit and the issuance of longer-term debt securities.

⁽¹⁾ 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
	April 30,
	2025				2024				% Change
Operating Data:
Retail units sold	15,649				15,251				2.6		%
Average number of stores in operation	154				154				-
Average retail units sold per store per month	33.9				33.0				2.7
Average retail sales price	$	19,049			$	19,256			(1.1	)
Total gross profit per retail unit sold	$	7,209			$	7,132			1.1
Total gross profit percentage	36.4		%		35.5		%
Same store revenue growth	(3.9		)%		(5.3		)%
Net charge-offs as a percent of average finance receivables	6.9		%		7.3		%
Total collected (principal, interest and late fees), in thousands	$	191,114			$	187,214			2.1
Average total collected per active customer per month	$	612			$	607			0.8
Average percentage of finance receivables-current (excl. 1-2 day)	80.2		%		80.1		%
Average down-payment percentage	6.2		%		6.5		%
	Years Ended
	April 30,
	2025				2024				% Change
Operating Data:
Retail units sold	57,022				57,989				(1.7	)	%
Average number of stores in operation	154				154				-
Average retail units sold per store per month	30.9				31.4				(1.6	)
Average retail sales price	$	19,398			$	19,113			1.5
Total gross profit per retail unit sold	$	7,368			$	6,937			6.2
Total gross profit percentage	36.7		%		34.7		%
Same store revenue growth	(5.0		)%		(1.0		)%
Net charge-offs as a percent of average finance receivables	25.9		%		27.2		%
Total collected (principal, interest and late fees), in thousands	$	714,102			$	688,907			3.7
Average total collected per active customer per month	$	575			$	554			3.9
Average percentage of finance receivables-current (excl. 1-2 day)	81.4		%		80.3		%
Average down-payment percentage	5.5		%		5.4		%
Period End Data:
Stores open	154				154				-		%
Accounts over 30 days past due	3.4		%		3.1		%
Active customer count	104,682				102,252				2.4
Principal balance of finance receivables (in thousands)	$	1,509,154			$	1,435,388			5.1
Weighted average total contract term	48.3				47.9				0.9

Conference Call and Webcast

The Company will hold a conference call to discuss its quarterly results on June 12, at 9:00 a.m. ET. Participants may access the conference call via webcast using this link: Webcast Link. To participate via telephone, please register in advance using this Registration Link. Upon registration, all telephone participants will receive a one-time confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN that can be used to access the call. All participants are encouraged to dial in 10 minutes prior to the start time. A replay and transcript of the conference call and webcast and related supplemental information will be available on-demand via the Company’s investor relations webpage at ir.car-mart.com for 12 months.

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). We present total debt, net of total cash, to finance receivables, a non-GAAP measure, as a supplemental measure of our performance. We believe total debt, net of total cash, to finance receivables is a useful measure to monitor leverage and evaluate balance sheet risk. This measure should not be considered in isolation or as a substitute for reported GAAP results because it may include or exclude certain items as compared to similar GAAP-based measures, and such measures may not be comparable to similarly-titled measures reported by other companies. We strongly encourage investors to review our consolidated financial statements included in publicly filed reports in their entirety and not rely solely on any one, single financial measure or communication. The most directly comparable GAAP financial measure, as well as a reconciliation to the comparable GAAP financial measure, for non-GAAP financial measures are presented in the tables of 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 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:

• operational infrastructure investments;
• same dealership sales and revenue growth;
• customer growth and engagement;
• gross profit percentages;
• gross profit per retail unit sold;
• business acquisitions;
• inventory acquisition, reconditioning, transportation, and remarketing;
• technological investments and initiatives;
• future revenue growth;
• receivables growth as related to revenue growth;
• new dealership openings;
• performance of new dealerships;
• interest rates;
• future credit losses;
• the Company’s collection results, including but not limited to collections during income tax refund periods;
• cash-on-cash returns from the collection of contracts originated by the Company;
• seasonality; and
• the Company’s business, operating and growth 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 could differ materially from those projected in these forward-looking statements. Factors that may cause actual results to differ materially from the Company’s projections include, but are not limited to:

• 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 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;
• 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 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
• 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.

Contact for information

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

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
					April 30,												April 30,
					2025				2024				% Change				2025			2024
Statements of Operations:
	Revenues:
		Sales			$	309,702			$	306,628			1.0		%		100.0	%		100.0	%
		Interest income			60,472				58,045				4.2				19.5			18.9
				Total	370,174				364,673				1.5				119.5			118.9
.
	Costs and expenses:
		Cost of sales			196,896				197,854				(0.5	)			63.6			64.5
		Selling, general and administrative			48,343				44,526				8.6				15.6			14.5
		Provision for credit losses			92,962				102,106				(9.0	)			30.0			33.3
		Interest expense			17,373				17,761				(2.2	)			5.6			5.8
		Depreciation and amortization			1,947				1,770				10.0				0.6			0.6
		Loss on disposal of property and equipment			175				78				124.4				-			-
				Total	357,696				364,095				(1.8	)			115.4			118.7
				Income before taxes	12,478				578								4.1			0.2
	Provision for income taxes				1,843				152								0.7			0.0
				Net income	$	10,635			$	426							3.4			0.1
	Dividends on subsidiary preferred stock				$	(10	)		$	(10	)
				Net income attributable to common shareholders	$	10,625			$	416
	Earnings per share:
		Basic			$	1.29			$	0.07
		Diluted			$	1.26			$	0.06
	Weighted average number of shares used in calculation:
		Basic			8,260,468				6,393,258
		Diluted			8,428,197				6,533,758

    

America’s Car-Mart Consolidated Results of Operations
(Amounts in thousands, except per share data)
																	As a % of Sales
					Twelve Months Ended												Twelve Months Ended
					April 30,												April 30,
					2025				2024				% Change				2025			2024
Statements of Operations:
	Revenues:
		Sales			$	1,146,208			$	1,160,798			(1.3	)	%		100.0	%		100.0	%
		Interest income			244,724				233,096				5.0				21.4			20.1
				Total	1,390,932				1,393,894				(0.2	)			121.4			120.1
	Costs and expenses:
		Cost of sales			726,055				758,546				(4.3	)			63.3			65.3
		Selling, general and administrative			188,921				179,421				5.3				16.5			15.5
		Provision for credit losses			374,559				423,406				(11.5	)			32.7			36.5
		Interest expense			70,650				65,348				8.1				6.2			5.6
		Depreciation and amortization			7,647				6,871				11.3				0.7			0.6
		Loss on disposal of property and equipment			299				437				(31.6	)			-			-
				Total	1,368,131				1,434,029				(4.6	)			119.4			123.5
				Income (loss) before taxes	22,801				(40,135		)						2.0			(3.4	)
	Provision (benefit) for income taxes				4,869				(8,742		)						0.5			(0.8	)
				Net income (loss)	$	17,932			$	(31,393	)						1.5			(2.7	)
	Dividends on subsidiary preferred stock				$	(40	)		$	(40	)
				Net income (loss) attributable to common shareholders	$	17,892			$	(31,433	)
	Earnings per share:
		Basic			$	2.38			$	(4.92	)
		Diluted			$	2.33			$	(4.92	)
	Weighted average number of shares used in calculation:
		Basic			7,524,770				6,388,537
		Diluted			7,681,590				6,388,537

 

America’s Car-Mart Condensed Consolidated Balance Sheet and Other Data
(Amounts in thousands, except per share data)
	April 30,				April 30,
	2025				2024
Cash and cash equivalents	$	9,808			$	5,522
Restricted cash from collections on auto finance receivables	$	114,729			$	88,925
Finance receivables, net	$	1,180,673			$	1,098,591
Inventory	$	112,229			$	107,470
Total assets	$	1,606,474			$	1,477,644
Revolving lines of credit, net	$	204,769			$	200,819
Notes payable, net	$	572,010			$	553,629
Treasury stock	$	298,220			$	297,786
Total equity	$	569,522			$	470,750
Shares outstanding	8,263,280				6,394,675
Book value per outstanding share	$	68.97			$	73.68
Allowance as % of principal balance net of deferred revenue	23.25		%		25.32		%
Changes in allowance for credit losses:
	Years ended
	April 30,
	2025				2024
Balance at beginning of period	$	331,260			$	299,608
Provision for credit losses	374,559				423,406
Charge-offs, net of collateral recovered	(382,719		)		(391,754		)
Balance at end of period	$	323,100			$	331,260

 

America’s Car-Mart Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)
			Years Ended
			April 30,
			2025				2024
Operating activities:
	Net income (loss)		$	17,932			$	(31,393	)
	Provision for credit losses		374,559				423,406
	Losses on claims for accident protection plan		34,525				34,504
	Depreciation and amortization		7,647				6,871
	Finance receivable originations		(1,075,080		)		(1,079,946		)
	Finance receivable collections		469,379				455,828
	Inventory		114,573				139,186
	Deferred accident protection plan revenue		(378		)		(1,229		)
	Deferred service contract revenue		(7,158		)		1,540
	Income taxes, net		(6,253		)		(15,206		)
	Other		21,490				(7,459		)
		Net cash used in operating activities	(48,764		)		(73,898		)
Investing activities:
	Purchase of investments		(7,527		)		(4,815		)
	Purchase of property and equipment and other		(3,848		)		(5,830		)
		Net cash used in investing activities	(11,375		)		(10,645		)
Financing activities:
	Change in revolving credit facility, net		6,579				33,227
	Payments on notes payable		(631,331		)		(526,959		)
	Change in cash overdrafts		466				823
	Issuances of notes payable		649,889				610,340
	Debt issuance costs		(9,006		)		(5,897		)
	Purchase of common stock		(434		)		(365		)
	Dividend payments		(40		)		(40		)
	Exercise of stock options and issuance of common stock		74,106				(173		)
		Net cash provided by financing activities	90,229				110,956
Increase in cash, cash equivalents, and restricted cash			$	30,090			$	26,413

 

America’s Car-Mart Reconciliation of Non-GAAP Financial Measures
(Amounts in thousands)
Calculation of Debt, Net of Total Cash, to Finance Receivables:
			April 30, 2025				April 30, 2024
	Debt:
		Revolving lines of credit, net	$	204,769			$	200,819
		Notes payable, net	572,010				553,629
	Total debt		$	776,779			$	754,448
	Cash:
		Cash and cash equivalents	$	9,808			$	5,522
		Restricted cash from collections on auto finance receivables	114,729				88,925
	Total cash, cash equivalents, and restricted cash		$	124,537			$	94,447
	Debt, net of total cash		$	652,242			$	660,001
	Principal balance of finance receivables		$	1,509,154			$	1,435,388
	Ratio of debt to finance receivables		51.5		%		52.6		%
	Ratio of debt, net of total cash, to finance receivables		43.2		%		46.0		%

Charts accompanying this announcement are available at: 

https://www.globenewswire.com/NewsRoom/AttachmentNg/b5c9c774-9f8f-407c-a5b7-cd193d7a3f84

https://www.globenewswire.com/NewsRoom/AttachmentNg/13bfedbe-f6bd-43d2-b74a-edf9ab5f8fdc

FAQ

What were America's Car-Mart (CRMT) earnings per share for Q4 2025?

America's Car-Mart reported Q4 2025 diluted earnings per share of $1.26, compared to $0.06 in Q4 2024.

How did CRMT's revenue perform in fiscal year 2025?

CRMT's total revenue for FY2025 decreased 0.2% to $1.4 billion, down $3.0 million from the previous year.

What was America's Car-Mart's gross margin percentage in FY2025?

The company's gross margin percentage increased 200 basis points to 36.7% for the full fiscal year 2025.

How many active customers does America's Car-Mart have in 2025?

As of April 30, 2025, America's Car-Mart had 104,682 active customers, representing a 2.4% increase year-over-year.

What was the average retail sales price for CRMT vehicles in Q4 2025?

The average vehicle sales price in Q4 2025 was $17,240, decreasing $316 year-over-year and $70 sequentially.