Core Viewpoint - America's Car-Mart, Inc. is a significant player in the used car dealership industry, focusing on selling and financing used cars to customers with limited credit options, while facing challenges from potential legal investigations and market volatility [1][2]. Financial Performance - As of March 17, 2026, the current trading price of CRMT is $12.15, with a price target set at $14 by John Hecht from Jefferies, indicating a potential price increase of approximately 15.23% [1][5]. - The stock has experienced significant fluctuations over the past year, reaching a high of $62.72 and a low of $12.05, with a current market capitalization of approximately $100.87 million [4][5]. - The stock price has recently declined by 4.48% or $0.57, reflecting market volatility, with trading volume at 400,764 shares on the NASDAQ exchange [3][4]. Legal Challenges - The Rosen Law Firm is investigating potential securities claims against America's Car-Mart, which may lead to a class action lawsuit due to allegations of misleading business information [2][5]. - This investigation follows a significant decline in CRMT's stock after disappointing sales figures reported on September 4, 2025 [2][3].

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of America's Car-Mart, Inc. due to allegations of materially misleading business information issued to the investing public [1]. Group 1: Legal Action and Investor Rights - Investors who purchased America's Car-Mart securities may be entitled to compensation through a class action lawsuit without any out-of-pocket fees, facilitated by a contingency fee arrangement [2]. - The Rosen Law Firm is preparing a class action to seek recovery of investor losses related to America's Car-Mart [2]. Group 2: Company Performance and Market Reaction - On September 4, 2025, America's Car-Mart's stock fell 18.2% after the company reported a first-quarter loss of 69 cents per share, compared to a net loss of 15 cents per share in the same period the previous year [3]. Group 3: Rosen Law Firm's Credentials - The Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company and being ranked No. 1 for securities class action settlements in 2017 [4]. - The firm has recovered hundreds of millions of dollars for investors, including over $438 million in 2019 alone, and has consistently ranked in the top 4 for securities class action settlements since 2013 [4].

Group 1 - The company is responsible for the development of transcript-related projects [1] - It publishes thousands of quarterly earnings calls per quarter and is expanding its coverage [1]

Sales Performance - For the first nine months of fiscal 2026, sales decreased by 6.1% compared to the prior-year period, driven by a 9.4% decline in retail units sold (37,480 units vs. 41,373 units), partially offset by a 2.6% increase in the average retail sales price to $20,041[164] - Total revenues decreased by $38.9 million, or 12%, for the three months ended January 31, 2026, primarily due to lower retail sales volumes[176] - Retail units sold decreased by 9.4% to 37,480 units for the nine months ended January 31, 2026, compared to 41,373 units in the prior-year period[184] Financial Performance - The Company reported a net loss of $104.9 million for the nine months ended January 31, 2026, compared to a net income of $7.3 million for the same period in 2025[200] - Total revenues decreased by $42.1 million, or 4.1%, for the nine months ended January 31, 2026, primarily due to a 6.1% decline in sales revenue[184] - The Company's gross profit margin as a percentage of sales for the first nine months of fiscal 2026 was 36.7%, consistent with the prior year period[170] Credit Losses and Allowances - The provision for credit losses as a percentage of sales increased to 41.7% for the first nine months of fiscal 2026, compared to 33.7% for the same period in fiscal 2025, resulting in a $24.5 million increase to the allowance for credit losses[166] - Provision for credit losses increased to 41.7% of sales for the nine months ended January 31, 2026, compared to 33.7% in the prior year, with an increase of $45.7 million to $327.3 million[188] - Provision for credit losses as a percentage of sales rose to 47.3% for the three months ended January 31, 2026, compared to 32.9% in the prior year, with an absolute increase of $18.5 million to $105.2 million[181] Interest Income and Expense - Interest income rose by 5.0% for the first nine months of fiscal 2026[164] - Interest expense increased to 9.8% of sales for the three months ended January 31, 2026, up from 6.4% in the prior year, with a dollar increase of $4.9 million to $21.8 million[182] - The Company’s earnings are impacted by net interest income, which is the difference between income earned on interest-bearing assets and interest paid on notes payable[226] Inventory and Finance Receivables - Finance receivables, net decreased by 5.6% to $1,114.7 million as of January 31, 2026, reflecting lower originations due to reduced retail unit sales[190] - Inventory decreased by $11.0 million, or 9.8%, compared to April 30, 2025, due to disciplined inventory management and moderated purchasing activity[191] - The allowance for credit losses increased to $347.6 million, representing 25.53% of the principal balance in finance receivables of $1.5 billion as of January 31, 2026, up from 24.31% a year earlier[213] Operational Changes - The Company operated 136 dealerships as of January 31, 2026, after consolidating eighteen locations as part of a footprint optimization strategy[163] - The Company implemented a new loan origination system in 127 of its 136 dealerships, enhancing credit application processes and decision-making[173] - The Company has implemented process improvements to mitigate credit loss risks, including an upgraded payments platform to facilitate online payments[205] Future Expectations and Strategies - The Company expects to maintain efficient operations and selectively grow its finance receivables portfolio using cash from operations and other financing sources[207] - The Company expects to adopt ASU 2023-09 related to income tax disclosures in its Annual Report for the fiscal year ending April 30, 2026, with no material effect anticipated on consolidated financial statements[220] - The Company is evaluating the impact of ASU 2024-03, which requires enhanced disclosures of natural expense categories, effective for annual periods beginning after December 15, 2026[221] Market and Economic Factors - The allowance for credit losses is influenced by external factors such as industry trends, geopolitical events, and economic conditions, requiring management to project future loan performance[222] - The Company’s exposure to market risk is primarily related to changes in interest rates, particularly the federal primary credit rate and the prime interest rate of its lender[224] - Historically, the Company's third fiscal quarter (November through January) has been the slowest for vehicle sales, while the first and fourth quarters (May through July and February through April) are the busiest[222]

Core Viewpoint - America's Car-Mart, Inc. is experiencing significant operational and financial challenges, reflected in its recent fiscal third quarter results, which missed analyst expectations and showed a decline in vehicle sales volumes and revenue [2][5]. Financial Performance - The company reported a non-GAAP adjusted EPS of -$1.53, missing consensus estimates of around -$0.26 to -$0.28 [2] - Revenue totaled $286.8 million, down 12.0% year-over-year, and below analyst expectations of $329–$332 million [2] - Vehicle sales volumes declined by 22.1%, with 10,275 retail units sold, attributed to origination capacity constraints and adverse weather conditions [3] - Interest income increased by 3.1% to $64.2 million, while gross profit per retail unit sold improved by 8.8% to $7,762, with a gross margin percentage of 35.8% [6] - The total revenue decline was driven entirely by lower unit volume, partially offset by a 7.1% increase in average retail sales price to $20,634 [6] - The company reported a net loss (GAAP) in the range of approximately $76–$105 million, with around $64 million in special items contributing heavily [6] Operational Challenges - The company is facing ongoing operational and funding challenges in a competitive subprime auto finance market [5] - There are constraints on origination capacity due to the ongoing capital structure transition, including the absence of a revolving warehouse facility [3] - The company noted improving unit economics through disciplined pricing and began rebuilding inventory, which is up approximately 44% from December lows [4]

Core Viewpoint - America's Car-Mart, Inc. faced a challenging quarter due to weather disruptions, weaker sales volume, and transition-related pressures, despite improvements in unit economics and flexibility from recent capital structure changes [1] Financial Performance - The company reported a third-quarter adjusted earnings per share loss of $1.53, missing the expected loss of 28 cents, with quarterly sales of $286.792 million, down 12% year-over-year, also missing the analyst consensus estimate of $331.927 million [1] - Sales volumes declined by 22.1% to 10,275 units, attributed to constraints on origination capacity from the ongoing capital structure transition [2] - Gross profit per unit improved by 8.8% to $7,762, with a gross margin percentage of 35.8% compared to 35.7% in the previous year [4] - Total collections increased by 1.5% year-over-year to $179.0 million, while net charge-offs as a percentage of average finance receivables rose to 6.5% from 6.1% in the prior year quarter [4] Operational Challenges - Severe weather in the South-Central U.S. led to significant store closures and impacted sales, alongside operating with a 12% smaller store footprint year-over-year [3] - The allowance for credit losses as a percentage of finance receivables increased to 25.53% as of January 31, 2026, from 23.25% at April 30, 2025 [3] Capital Structure Changes - The company closed a $300 million term loan prior to the end of the second quarter, which eliminated its revolving line of credit and removed restrictive income statement covenants, enhancing operational flexibility [5] - As of January 31, 2026, total cash, including restricted cash, was reported at $237 million [5] Stock Performance - America's Car-Mart shares experienced a decline of 18.35%, trading at $15.57 at the time of publication [5]

Core Viewpoint - Johnson Fistel, PLLP is investigating potential claims on behalf of investors of America's Car-Mart, Inc. due to significant financial losses reported by the company [1][5]. Financial Performance - America's Car-Mart reported revenue of approximately $286.8 million for the third quarter of fiscal 2026 [3]. - The company experienced a GAAP loss per share of approximately –$9.25 and a net loss of approximately $76.7 million [4]. - Non-GAAP earnings per share were reported at approximately –$1.53 [3]. - Vehicle sales volumes declined by 22.1%, falling to 10,275 units, attributed to constraints on origination capacity due to the company's ongoing capital structure transition [4]. Legal Investigation - Johnson Fistel is examining whether America's Car-Mart complied with federal securities laws in light of the financial disclosures [5]. - Investors who suffered losses from their investment in America's Car-Mart stock are encouraged to contact Johnson Fistel for potential recovery [2][5]. Company Background - Johnson Fistel, PLLP is a nationally recognized shareholder-rights law firm with multiple offices across the United States, specializing in securities class action lawsuits [6]. - The firm has a track record of recovering approximately $90.7 million for clients in cases where it served as lead or co-lead counsel, reflecting its effectiveness in advocating for investors [7].

ROGERS, Ark., March 12, 2026 (GLOBE NEWSWIRE) -- America's Car-Mart, Inc. (NASDAQ: CRMT) ("we," "Car-Mart" or the "Company"), today reported financial results for the third quarter ended January 31, 2026. Third Quarter Key Highlights (FY'26 Q3 vs. FY'25 Q3, unless otherwise noted) President and CEO Doug Campbell commentary: "Our third quarter results reflect the impact of our ongoing capital structure transition on origination volumes. The sales volume decline this quarter is a direct result of the moderati ...

Core Viewpoint - America's Car-Mart faced significant operational challenges in the third quarter of fiscal 2026 due to funding constraints and the impact of Winter Storm Fern, leading to a 22.1% year-over-year decline in retail units sold and a 12% decrease in total revenue to $286.8 million [2][5][4]. Operational Impact - Winter Storm Fern affected the company's entire South Central operating footprint, causing dealership closures for three days and ongoing operational disruptions due to cold temperatures and supply chain issues [1][4]. - The storm created an "8- or 9-day event" of disruption, significantly impacting inventory availability, which was identified as the "single biggest driving force" behind the sales decline [2][3]. Financial Performance - Retail units sold decreased to 10,275, with total revenue declining to $286.8 million, reflecting a 12% year-over-year drop [5]. - Average retail sales price increased by 7.1% to $20,634, while gross profit per retail unit sold rose by 8.8%, indicating improved unit economics despite lower sales volumes [5][6]. Inventory and Financing - Inventory levels "bottomed in December" and increased by 44% in January ahead of tax season, but the company faced constraints in purchasing inventory due to a transition in its financing platform [6][19]. - The company completed a $300 million term loan and a $161.3 million asset-backed securities transaction, but emphasized the need for a revolving warehouse facility to bridge originations to securitizations [17][19]. Cost Management - The company completed phases one and two of its SG&A cost control plan, resulting in the rationalization of 18 store locations, bringing the active store count to 136 [7][8]. - SG&A expenses totaled $51.5 million, or 23.1% of sales, with expectations for savings to materialize in the fourth quarter as a result of the store consolidations [8]. Credit and Collections - Underlying credit performance remained stable, with net charge-offs at 6.5% of average finance receivables, slightly up from 6.1% in the prior quarter [9][10]. - Delinquencies increased due to the storm's timing, with accounts over 30 days past due rising to 4.4%, but began normalizing by mid-February [11][12]. Future Outlook - Early indicators for the tax season are favorable, with improved deal structures and a high rate of collections on scheduled payments [22]. - The company's priorities include closing the warehouse facility, continuing volume recovery, maintaining a cost structure aligned with revenue, and sustaining credit quality amid macroeconomic challenges [23].

Financial Data and Key Metrics Changes - Retail volume declined by 22.1% year-over-year, attributed to capital structure constraints rather than demand [7][25] - Total revenue decreased to $286.8 million, down 12% year-over-year, while average retail sales price increased by 7.1% to $20,634 [26] - Interest income rose to $64.2 million, up 3.1% year-over-year, despite lower sales volume [27] - Loss per share for the quarter was $9.25 on a GAAP basis, with an adjusted loss per share of $1.53 [56] Business Line Data and Key Metrics Changes - Retail units sold decreased to 10,275 units, driven by lower inventory availability, a smaller footprint, and Winter Storm Fern [25][26] - Gross profit per retail unit sold increased by 8.8%, indicating improved cost discipline [27] - SG&A expenses totaled $51.5 million, or 23.1% of reported sales, with adjusted SG&A at $48.7 million or 21.9% of sales [36] Market Data and Key Metrics Changes - Website traffic increased by 4% year-over-year, indicating sustained customer interest [9] - The subprime auto capital markets have been operating in a more measured environment since last fall, following disruptions in the industry [10][11] Company Strategy and Development Direction - The company is focused on completing its capital structure transformation, including securing a revolving warehouse facility to enhance inventory purchasing capabilities [18][19] - Operational improvements include executing a cost control plan that resulted in the consolidation of 18 locations, aimed at concentrating resources in stronger performing areas [20][21] - The company is committed to maintaining a leaner cost structure and aligning expenses with revenue [38][64] Management's Comments on Operating Environment and Future Outlook - Management emphasized that the volume decline was due to capital structure issues, not a lack of demand, and expressed confidence in the recovery of sales as inventory levels improve [57][64] - The impact of Winter Storm Fern was significant, affecting operations and customer payment behaviors, but management noted a recovery in collections post-storm [22][44] - The company is preparing for tax season demand, with early indicators showing improved deal structures and collections [78][106] Other Important Information - The company completed a $161.3 million asset-backed securitization transaction, which was a significant milestone in a challenging market [12][15] - The allowance for credit losses increased to 25.53% of finance receivables, reflecting portfolio dynamics and macroeconomic pressures [47] Q&A Session Summary Question: What are the sticking points in the warehouse negotiations? - Management indicated that the timing is structural and requires alignment across multiple stakeholders, which is complicated by the current market environment [74][75] Question: Are you seeing effects from tax refunds this year? - Early indicators show improved deal structures and collections, with tax seasonal payments being collected at a high rate [78] Question: How would you allocate the 22% unit decline among the factors? - The inventory levels were the largest driver of the decline, followed by the impact of Winter Storm Fern [85][88] Question: How have delinquencies trended absent the storm? - By mid-February, delinquencies had significantly decreased, indicating a return to expected ranges [91] Question: What is the expected run rate for SG&A going forward? - The company expects to see savings from recent store consolidations reflected in the fourth quarter, with a target SG&A of around $45-$46 million [96]