BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces an investigation on behalf of America's Car-Mart, Inc. ("Car-Mart†or the "Company†) (NASDAQ: CRMT) investors concerning the Company's possible violations of federal securities laws. IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN AMERICA'S CAR-MART, INC. (CRMT), CONTACT THE LAW OFFICES OF HOWARD G. SMITH ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS. Contact the Law Offices of Howard G. Smith to discuss your legal. ...

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces an investigation of America's Car-Mart, Inc. ("Car-Mart†or the "Company†) (NASDAQ: CRMT) on behalf of investors concerning the Company's possible violations of federal securities laws. IF YOU ARE AN INVESTOR WHO LOST MONEY ON AMERICA'S CAR-MART, INC. (CRMT), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING A CLAIM TO RECOVER YOUR LOSS. What Is The Investigation About? On July 15, 2025, Car-Mart disclosed it would delay fi. ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis for the quarter [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents America's Car-Mart, Inc.'s unaudited condensed consolidated financial statements and related notes for the specified periods [Condensed Consolidated Balance Sheets (Unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)%20%E2%80%93%20July%2031%2C%202025%20and%20April%2030%2C%202025) This section provides the unaudited condensed consolidated balance sheets as of July 31, 2025, and April 30, 2025 | (Dollars in thousands) | July 31, 2025 | April 30, 2025 | | :--------------------- | :------------ | :------------- | | **Assets:** | | | | Cash and cash equivalents | $9,666 | $9,808 | | Restricted cash | $111,761 | $114,729 | | Finance receivables, net | $1,183,452 | $1,180,673 | | Inventory | $112,451 | $112,229 | | Total Assets | $1,607,974 | $1,606,474 | | **Liabilities & Equity:** | | | | Total liabilities | $1,042,643 | $1,036,552 | | Total equity | $564,931 | $569,522 | - Total assets increased slightly by **$1,500 thousand** from April 30, 2025, to July 31, 2025, reaching **$1,607,974 thousand**. Total liabilities also increased by **$6,100 thousand**, while total equity decreased by **$4,600 thousand**[12](index=12&type=chunk) [Condensed Consolidated Statements of Operations (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(Unaudited)%20%E2%80%93%20Three%20Months%20Ended%20July%2031%2C%202025%20and%202024) This section presents the unaudited condensed consolidated statements of operations for the three months ended July 31, 2025 and 2024 | (Dollars in thousands except share and per share amounts) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | | :-------------------------------------------------------- | :------------------------------- | :------------------------------- | | Total revenues | $341,312 | $347,763 | | Total costs and expenses | $348,714 | $348,946 | | Loss before taxes | $(7,402) | $(1,183) | | Net loss | $(5,736) | $(964) | | Net loss attributable to common stockholders | $(5,746) | $(974) | | Basic loss per share | $(0.69) | $(0.15) | | Diluted loss per share | $(0.69) | $(0.15) | - The company reported a significant increase in net loss, from **$(964) thousand** in Q1 2024 to **$(5,736) thousand** in Q1 2025. Total revenues decreased by **1.9% YoY**, while total costs and expenses remained relatively flat[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)%20%E2%80%93%20Three%20Months%20Ended%20July%2031%2C%202025%20and%202024) This section provides the unaudited condensed consolidated statements of cash flows for the three months ended July 31, 2025 and 2024 | (In thousands) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | | :------------- | :------------------------------- | :------------------------------- | | Net cash used in operating activities | $(5,918) | $(14,972) | | Net cash used in investing activities | $(439) | $(8,513) | | Net cash provided by financing activities | $3,247 | $27,659 | | (Decrease) increase in cash, cash equivalents, and restricted cash | $(3,110) | $4,174 | | Cash, cash equivalents, and restricted cash end of period | $121,427 | $98,621 | - Net cash used in operating activities decreased significantly from **$(14,972) thousand** in Q1 2024 to **$(5,918) thousand** in Q1 2025. However, net cash provided by financing activities also saw a substantial decrease from **$27,659 thousand** to **$3,247 thousand**[17](index=17&type=chunk) [Condensed Consolidated Statements of Equity (Unaudited) – Three Months Ended July 31, 2025](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity%20(Unaudited)%20%E2%80%93%20Three%20Months%20Ended%20July%2031%2C%202025) This section presents the unaudited condensed consolidated statements of equity for the three months ended July 31, 2025 | (In thousands, except share data) | Balance at April 30, 2025 | Issuance of common stock | Purchase of treasury shares | Stock based compensation | Dividends on subsidiary preferred stock | Net loss | Balance at July 31, 2025 | | :-------------------------------- | :------------------------ | :----------------------- | :-------------------------- | :----------------------- | :------------------------------------- | :------- | :----------------------- | | Total Equity | $569,522 | $69 | $(71) | $1,157 | $(10) | $(5,736) | $564,931 | - Total equity decreased from **$569,522 thousand** at April 30, 2025, to **$564,931 thousand** at July 31, 2025, primarily due to a net loss of **$(5,736) thousand**[20](index=20&type=chunk) [Condensed Consolidated Statements of Equity (Unaudited) – Three Months Ended July 31, 2024](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity%20(Unaudited)%20%E2%80%93%20Three%20Months%20Ended%20July%2031%2C%202024) This section presents the unaudited condensed consolidated statements of equity for the three months ended July 31, 2024 | (In thousands, except share data) | Balance at April 30, 2024 | Issuance of common stock | Purchase of treasury shares | Stock based compensation | Dividends on subsidiary preferred stock | Net loss | Balance at July 31, 2024 | | :-------------------------------- | :------------------------ | :----------------------- | :-------------------------- | :----------------------- | :------------------------------------- | :------- | :----------------------- | | Total Equity | $470,750 | $76 | $(24) | $1,325 | $(10) | $(964) | $471,153 | - Total equity increased slightly from **$470,750 thousand** at April 30, 2024, to **$471,153 thousand** at July 31, 2024, despite a net loss of **$(964) thousand**, primarily supported by stock-based compensation and common stock issuance[23](index=23&type=chunk) [Notes to Consolidated Financial Statements (Unaudited)](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) This section provides detailed notes to the unaudited condensed consolidated financial statements, explaining key accounting policies and financial details [A – Organization and Business](index=11&type=section&id=A%20%E2%80%93%20Organization%20and%20Business) America's Car-Mart, Inc. is an automotive retailer specializing in integrated auto sales and finance for used cars - America's Car-Mart, Inc. operates **154 dealerships** as of July 31, 2025, focusing on integrated auto sales and financing for customers with limited credit histories[25](index=25&type=chunk) [B – Summary of Significant Accounting Policies](index=11&type=section&id=B%20%E2%80%93%20Summary%20of%20Significant%20Accounting%20Policies) This section outlines the company's key accounting policies, including consolidation, estimates, cash, revenue recognition, and other financial items - The company operates in a single reportable segment focused on integrated automotive sales and financing solutions for subprime customers[28](index=28&type=chunk) - Restricted cash, totaling **$111,761 thousand** at July 31, 2025, is primarily from collections on auto finance receivables and reserve accounts for non-recourse notes payable, not available to the company or its creditors[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) - The allowance for credit losses at July 31, 2025, was **$326,100 thousand**, representing **23.35%** of the principal balance in finance receivables, reflecting management's estimate of expected credit losses[55](index=55&type=chunk) - Total revenues for the three months ended July 31, 2025, were **$341,312 thousand**, primarily from used auto sales (**$234,985 thousand**) and interest and other income (**$65,072 thousand**)[15](index=15&type=chunk)[74](index=74&type=chunk) [C – Finance Receivables, Net](index=19&type=section&id=C%20%E2%80%93%20Finance%20Receivables%2C%20Net) This section details finance receivables, including components, credit loss allowance, delinquency rates, and contract modifications | (In thousands) | July 31, 2025 | April 30, 2025 | | :------------- | :------------ | :------------- | | Gross contract amount | $1,952,693 | $1,946,042 | | Principal balance | $1,515,681 | $1,509,155 | | Allowance for credit losses | $(326,070) | $(323,100) | | Finance receivables, net | $1,183,452 | $1,180,673 | - The allowance for credit losses increased by **$3,000 thousand** in Q1 2026, reaching **23.35%** of finance receivables, up from **23.25%** at April 30, 2025[85](index=85&type=chunk) | Delinquency Status | July 31, 2025 Principal Balance | July 31, 2025 % of Portfolio | April 30, 2025 Principal Balance | April 30, 2025 % of Portfolio | July 31, 2024 Principal Balance | July 31, 2024 % of Portfolio | | :----------------- | :-------------------------------- | :--------------------------- | :------------------------------- | :---------------------------- | :-------------------------------- | :--------------------------- | | Current | $1,206,214 | 79.58% | $1,208,330 | 80.06% | $1,155,006 | 78.82% | | 30-60 days past due | $42,080 | 2.78% | $34,407 | 2.28% | $38,035 | 2.60% | | > 90 days past due | $7,831 | 0.52% | $5,694 | 0.38% | $5,610 | 0.38% | - The percentage of finance receivables **30 days or more past due** increased to **3.8%** at July 31, 2025, from **3.4%** at April 30, 2025. The company implemented a new **seven-rank scorecard** in May 2025 to improve risk assessment[44](index=44&type=chunk)[89](index=89&type=chunk) | Metric | July 31, 2025 | July 31, 2024 | | :------------------------------------------ | :------------ | :------------ | | Average total collected per active customer per month | $585 | $562 | | Principal collected as a percent of average finance receivables | 7.9% | 7.8% | | Average down-payment percentage | 4.9% | 5.2% | | Average originating contract term (in months) | 44.9 | 44.3 | - Contract modifications, primarily term extensions, affected **12.9%** of the total gross finance receivables portfolio at July 31, 2025, down from **13.8%** at July 31, 2024. These modifications aim to support customers and mitigate credit losses[97](index=97&type=chunk) [D – Property and Equipment, Net](index=24&type=section&id=D%20%E2%80%93%20Property%20and%20Equipment%2C%20Net) This section summarizes the company's property and equipment, net, including various asset categories and accumulated depreciation | (In thousands) | July 31, 2025 | April 30, 2025 | | :------------- | :------------ | :------------- | | Land | $11,998 | $11,998 | | Buildings and improvements | $23,604 | $23,575 | | Furniture, fixtures and equipment | $26,140 | $26,139 | | Leasehold improvements | $51,586 | $51,466 | | Construction in progress | $1,115 | $1,028 | | Less accumulated depreciation and amortization | $(59,240) | $(57,312) | | Total | $55,203 | $56,894 | - Property and equipment, net, decreased by **$1,700 thousand** from April 30, 2025, to July 31, 2025, primarily due to depreciation exceeding new expenditures[100](index=100&type=chunk)[172](index=172&type=chunk) [E – Accrued Liabilities](index=24&type=section&id=E%20%E2%80%93%20Accrued%20Liabilities) This section summarizes the company's accrued liabilities, including cash overdraft, employee compensation, and deferred sales tax | (In thousands) | July 31, 2025 | April 30, 2025 | | :------------- | :------------ | :------------- | | Cash overdraft | $7,452 | $1,289 | | Employee compensation | $9,704 | $7,983 | | Deferred sales tax | $11,412 | $10,326 | | Total | $46,607 | $35,949 | - Total accrued liabilities increased by **$10,658 thousand** from April 30, 2025, to July 31, 2025, primarily driven by a significant increase in cash overdraft and employee compensation[101](index=101&type=chunk)[173](index=173&type=chunk) [F – Debt Facilities](index=25&type=section&id=F%20%E2%80%93%20Debt%20Facilities) This section details the company's debt facilities, including revolving credit and non-recourse notes, outlining terms and recent activities | (In thousands) | July 31, 2025 | April 30, 2025 | | :------------- | :------------ | :------------- | | Revolving line of credit, net | $164,394 | $204,769 | | Non-recourse notes payable, net | $610,750 | $572,010 | | Total debt | $775,144 | $776,779 | - The company's revolving line of credit decreased by **$40,375 thousand**, while non-recourse notes payable increased by **$38,740 thousand**, reflecting a shift in funding strategy. Total debt remained relatively stable[102](index=102&type=chunk) - On May 29, 2025, the company completed a securitization transaction (2025-2 Issuance) of **$216,000 thousand** aggregate principal amount of asset-backed notes with an overall weighted average life adjusted coupon of **6.27%**[105](index=105&type=chunk)[107](index=107&type=chunk) - The 2023-1 Issuance of non-recourse notes was fully paid off in July 2025. No debt was outstanding under the warehouse loan facility as of July 31, 2025[107](index=107&type=chunk) [G – Fair Value Measurements](index=27&type=section&id=G%20%E2%80%93%20Fair%20Value%20Measurements) This section defines fair value measurements, outlining valuation methodologies and estimated fair values for various financial instruments | Financial Instrument and Other Assets | July 31, 2025 Carrying Value | July 31, 2025 Fair Value | April 30, 2025 Carrying Value | April 30, 2025 Fair Value | | :------------------------------------ | :----------------------------- | :----------------------- | :------------------------------ | :------------------------ | | Cash and cash equivalents | $9,666 | $9,666 | $9,808 | $9,808 | | Restricted cash | $111,761 | $111,761 | $114,729 | $114,729 | | Finance receivables, net | $1,183,452 | $932,144 | $1,180,673 | $928,130 | | Non-recourse notes payable, net | $610,750 | $619,380 | $572,010 | $581,029 | - The fair value of finance receivables, net, was **$932,144 thousand** at July 31, 2025, significantly lower than its carrying value of **$1,183,452 thousand**, reflecting an estimated **34% to 39% discount** a third-party purchaser might apply[112](index=112&type=chunk) [H – Capital Stock](index=29&type=section&id=H%20%E2%80%93%20Capital%20Stock) This section outlines the company's authorized capital stock, including common and preferred shares, and details a public offering - The company completed a public offering of **1,700,000 common shares** in September 2024, generating **$73,800 thousand** in net proceeds, with an additional **$5,600 thousand** from the partial exercise of an over-allotment option[115](index=115&type=chunk) - As of July 31, 2025, there were **8,277,613 shares** of common stock outstanding, an increase from **8,263,280 shares** at April 30, 2025[116](index=116&type=chunk) [I – Weighted Average Shares Outstanding](index=29&type=section&id=I%20%E2%80%93%20Weighted%20Average%20Shares%20Outstanding) This section provides weighted average common shares outstanding for basic and diluted earnings per share calculations | | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | | Weighted average shares outstanding-basic | 8,274,054 | 6,396,757 | | Weighted average shares outstanding-diluted | 8,274,054 | 6,396,757 | - Weighted average basic and diluted shares outstanding increased significantly from **6,396,757** in Q1 2024 to **8,274,054** in Q1 2025[117](index=117&type=chunk) [J – Stock-Based Compensation](index=29&type=section&id=J%20%E2%80%93%20Stock-Based%20Compensation) This section details the company's stock-based compensation plans, including award types, expense, and valuation assumptions - Total stock-based compensation expense for all plans was approximately **$1,200 thousand** (**$905 thousand** after tax) for Q1 2025, a decrease from **$1,300 thousand** (**$1,100 thousand** after tax) in Q1 2024[119](index=119&type=chunk) | Black-Scholes Option Pricing Model Assumptions | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | | :--------------------------------------------- | :------------------------------- | :------------------------------- | | Expected terms (years) | 1.9 | 4.9 | | Risk-free interest rate | 3.93% | 5.13% | | Volatility | 54% | 60% | - The company granted **61,318 options** in Q1 2025 (2024 Equity Incentive Plan) with a grant-date fair value of **$875 thousand**, and **29,363 restricted shares**. Unrecognized compensation cost for unvested options is **$1,600 thousand** and for restricted stock is **$4,900 thousand**[125](index=125&type=chunk)[126](index=126&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk) [K – Commitments and Contingencies](index=32&type=section&id=K%20%E2%80%93%20Commitments%20and%20Contingencies) This section details the company's commitments and contingencies, including standby letters of credit, lease obligations, and legal proceedings - The company has standby letters of credit totaling **$4,700 thousand** at July 31, 2025, related to insurance policies[132](index=132&type=chunk) | Maturity of lease liabilities | Amount (in thousands) | | :---------------------------- | :-------------------- | | Total undiscounted operating lease payments | $86,144 | | Present value of operating lease liabilities | $66,948 | - The company does not expect the final outcome of its legal proceedings to have a material adverse effect on its financial position, results of operations, or cash flows[134](index=134&type=chunk) [L - Supplemental Cash Flow Information](index=33&type=section&id=L%20-%20Supplemental%20Cash%20Flow%20Information) This section provides supplemental cash flow disclosures, including interest paid, income taxes paid, and non-cash transactions | (In thousands) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | | :------------- | :------------------------------- | :------------------------------- | | Interest paid | $16,850 | $17,062 | | Income taxes paid, net | $85 | $1,297 | | Inventory acquired in repossession and accident protection plan claims | $29,616 | $26,975 | - Income taxes paid, net, decreased significantly from **$1,297 thousand** in Q1 2024 to **$85 thousand** in Q1 2025[136](index=136&type=chunk) [M – Acquisitions](index=33&type=section&id=M%20%E2%80%93%20Acquisitions) This section details the company's acquisition of Texas Auto Center (TAC), including purchase price and asset allocation - On June 3, 2024, the company acquired Texas Auto Center (TAC) for a total purchase price of **$13,500 thousand**, including **$3,500 thousand** in contingent consideration[137](index=137&type=chunk)[138](index=138&type=chunk) - The acquisition resulted in the recognition of **$8,500 thousand** in goodwill, **$5,000 thousand** in inventory, and **$7,400 thousand** in gross right-of-use assets and lease liabilities[139](index=139&type=chunk) [N - Segment Reporting](index=33&type=section&id=N%20-%20Segment%20Reporting) This section confirms the company operates as a single reportable segment and provides a breakdown of significant expenses - The company operates as a single reportable segment, with the CEO managing on a consolidated basis using sales, provision for credit losses, and net income (loss) as primary financial measures[140](index=140&type=chunk) | (Dollars in thousands) | Three Months Ended July 31, 2025 | Change (%) | Three Months Ended July 31, 2024 | | :--------------------- | :------------------------------- | :--------- | :------------------------------- | | Total compensation and benefits | $33,188 | 11.3% | $29,807 | | Store occupancy costs | $5,495 | 13.3% | $4,850 | | Advertising costs | $1,344 | 33.3% | $1,008 | | Other overhead costs | $11,381 | 3.0% | $11,046 | | Total selling, general and administrative expenses | $51,408 | 10.1% | $46,711 | [O – Subsequent Events](index=34&type=section&id=O%20%E2%80%93%20Subsequent%20Events) This section discloses a subsequent securitization transaction completed on August 28, 2025, involving asset-backed notes - On August 28, 2025, the company completed a securitization transaction (ACM Auto Trust 2025-3) issuing **$133,300 thousand Class A Notes** (**5.01%**) and **$38,600 thousand Class B Notes** (**6.08%**), collateralized by **$291,500 thousand** of accounts receivables[143](index=143&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance, condition, liquidity, and critical accounting estimates [Forward-Looking Information](index=35&type=section&id=Forward-Looking%20Information) This subsection highlights the company's forward-looking statements regarding future objectives, plans, and goals, and lists various risks - Forward-looking statements cover areas such as operational infrastructure investments, same dealership sales and revenue growth, customer growth, gross profit margins, business acquisitions, technological investments, future credit losses, collection results, supply and demand of used vehicles, interest rates, and seasonality[148](index=148&type=chunk) - Key risk factors include general economic conditions, availability of quality used vehicles, access to capital, effectiveness of underwriting and collections, competition, changes in consumer finance laws, technological advances, security breaches, and the ability to integrate acquisitions[147](index=147&type=chunk)[148](index=148&type=chunk) [Overview](index=36&type=section&id=Overview) This overview reiterates the company's business model and discusses recent financial performance, including revenue decline and credit loss challenges - Revenue for the first three months of fiscal 2026 declined **1.9% YoY**, primarily due to a **5.7% decrease** in retail units sold, partially offset by a **7.5% increase** in interest income[151](index=151&type=chunk) - Provision for credit losses as a percentage of sales increased to **37.3%** in Q1 2026, up from **33.2%** in Q1 2025, driven by increased frequency and severity of losses and lower sales[153](index=153&type=chunk) - The company is improving vehicle quality, aiming to reduce repair costs and enhance recovery values, and has upgraded its loan origination system (LOS) with a new scorecard and risk-based pricing to improve underwriting and collections[152](index=152&type=chunk)[155](index=155&type=chunk) [Three Months Ended July 31, 2025 vs. Three Months Ended July 31, 2024](index=38&type=section&id=Three%20Months%20Ended%20July%2031%2C%202025%20vs.%20Three%20Months%20Ended%20July%2031%2C%202024) This section provides a detailed comparison of consolidated operations for the three months ended July 31, 2025, and 2024 | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | % Change (2025 vs 2024) | | :---------------------------------- | :------------------------------- | :------------------------------- | :---------------------- | | Total revenues | $341,312 | $347,763 | (1.9)% | | Sales | $276,240 | $287,248 | (3.8)% | | Interest income | $65,072 | $60,515 | 7.5% | | Cost of sales | $175,080 | $186,570 | (6.2)% | | Selling, general and administrative | $51,408 | $46,711 | 10.1% | | Provision for credit losses | $103,036 | $95,423 | 8.0% | | Pretax loss | $(7,402) | $(1,183) | (525.7)% | | Retail units sold | 13,568 | 14,391 | (5.7)% | | Gross profit per retail unit sold | $7,456 | $6,996 | 6.6% | - Total revenues decreased by **$6,500 thousand** (**1.9%**) due to a **5.7% decrease** in retail units sold, partially offset by a **7.5% increase** in interest income from higher average finance receivables and interest rates[162](index=162&type=chunk)[163](index=163&type=chunk) - Gross margin as a percentage of sales improved to **36.6%** in Q1 2026 from **35.0%** in Q1 2025, driven by vehicle sales pricing improvements, reduced repair costs, and improved wholesale retention rates[164](index=164&type=chunk) - SG&A expenses increased by **$4,700 thousand** (**10.1%**) due to technology investments and higher compensation, while provision for credit losses increased by **$7,600 thousand** (**8.0%**) due to higher loss frequency and severity[166](index=166&type=chunk)[167](index=167&type=chunk) [Financial Condition](index=39&type=section&id=Financial%20Condition) This section analyzes the company's major balance sheet accounts, including finance receivables, inventory, property and equipment, and liabilities | (In thousands) | July 31, 2025 | April 30, 2025 | | :------------- | :------------ | :------------- | | Finance receivables, net | $1,183,452 | $1,180,673 | | Inventory | $112,451 | $112,229 | | Property and equipment, net | $55,203 | $56,894 | | Accounts payable and accrued liabilities | $80,584 | $70,929 | | Notes payable, net | $610,750 | $572,010 | | Revolving line of credit, net | $164,394 | $204,769 | - Finance receivables, net, increased by **0.2%** since April 30, 2025, and **5.1%** since July 31, 2024. The company anticipates finance receivables growth to be slightly higher than overall revenue growth due to longer contract terms[170](index=170&type=chunk) - Inventory increased by **$200 thousand** (**0.2%**) during Q1 2026, with annualized inventory turns decreasing to **6.2** from **6.7** in the prior year[171](index=171&type=chunk) - Notes payable, net, increased by **$38,740 thousand** to **$610,750 thousand**, while the revolving line of credit, net, decreased by **$40,375 thousand** to **$164,394 thousand**, reflecting recent securitization activities[169](index=169&type=chunk)[175](index=175&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash flows, operating profit drivers, liquidity sources, and future capital needs | (In thousands) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | | :------------- | :------------------------------- | :------------------------------- | | Net cash used in operating activities | $(5,918) | $(14,972) | | Net cash used in investing activities | $(439) | $(8,513) | | Net cash provided by financing activities | $3,247 | $27,659 | | (Decrease) increase in cash | $(3,110) | $4,174 | - Cash flows used in operating activities decreased from **$(14,972) thousand** in Q1 2024 to **$(5,918) thousand** in Q1 2025, primarily due to increased finance receivable collections and decreased originations[179](index=179&type=chunk) - The company's liquidity is impacted by vehicle acquisition costs, which have risen due to tight used vehicle supply and tariffs, and macroeconomic pressures affecting customer payment ability[180](index=180&type=chunk)[181](index=181&type=chunk)[183](index=183&type=chunk) - Primary liquidity sources include income from operations, proceeds from non-recourse notes payable, warehouse facilities, and revolving credit facilities. As of July 31, 2025, the company had **$9,700 thousand** cash on hand and **$20,800 thousand** available under its revolving credit facilities[185](index=185&type=chunk) [Off-Balance Sheet Arrangements](index=43&type=section&id=Off-Balance%20Sheet%20Arrangements) This section discloses the company's off-balance sheet arrangements, specifically standby letters of credit related to insurance policies - The company has three standby letters of credit totaling **$4,700 thousand** at July 31, 2025, related to insurance policies[190](index=190&type=chunk) [Related Finance Company Contingency](index=43&type=section&id=Related%20Finance%20Company%20Contingency) This section explains the tax implications of intercompany sales of finance receivables between subsidiaries and potential risks - Car-Mart of Arkansas sells finance receivables to Colonial Auto Finance, Inc., allowing a tax deduction for the difference between tax basis and sales price, which also reduces the overall effective state income tax rate[191](index=191&type=chunk) - Failure to satisfy the material provisions of tax regulations could result in the loss of tax deductions and an increase in the company's effective income tax rate[191](index=191&type=chunk) [Critical Accounting Estimates](index=43&type=section&id=Critical%20Accounting%20Estimates) This section identifies the allowance for credit losses as a critical accounting estimate, emphasizing qualitative judgment - The allowance for credit losses is identified as a critical accounting estimate, requiring management to project future loan performance, including cash flows, prepayments, and charge-offs[196](index=196&type=chunk) - At July 31, 2025, the allowance for credit losses was **$326,100 thousand**, representing **23.35%** of the principal balance in finance receivables, a slight increase from **23.25%** at April 30, 2025[194](index=194&type=chunk) [Recent Accounting Pronouncements](index=44&type=section&id=Recent%20Accounting%20Pronouncements) This section discusses recently issued FASB accounting pronouncements and their expected impact on the company - The company is evaluating ASU 2024-03, which requires enhanced disclosures of certain natural expense categories, effective for annual periods beginning after December 15, 2026[200](index=200&type=chunk)[201](index=201&type=chunk) - ASU 2023-09, related to income tax disclosures, will be adopted in the Annual Report on Form 10-K for fiscal year ending April 30, 2026, with no expected material effect[199](index=199&type=chunk) [Seasonality](index=45&type=section&id=Seasonality) This section describes the seasonal patterns in the company's vehicle sales and operating profit, with varying activity levels - The company's third fiscal quarter (November-January) is historically the slowest for vehicle sales, while the first and fourth fiscal quarters (May-July and February-April) are the busiest, leading to a higher proportion of revenue and operating profit during these periods[202](index=202&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section addresses the company's exposure to market risk, primarily from changes in interest rates affecting debt obligations - The company's primary market risk exposure is to changes in interest rates, particularly on its revolving credit facilities, which have variable interest rates[204](index=204&type=chunk)[205](index=205&type=chunk) - A **1% increase** in interest rates would result in an approximate **$1,600 thousand** increase in annual interest expense and a corresponding decrease in net income before income tax, based on the **$168,600 thousand** outstanding balance on the revolving line of credit at July 31, 2025[205](index=205&type=chunk) - Finance receivables carry fixed annual interest rates ranging from **12.99% to 23.00%**, while revolving credit facilities accrue interest at **SOFR plus 3.50%** (or base rate plus **1.0%** for non-SOFR amounts)[206](index=206&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) This section discusses the evaluation of the company's disclosure controls and procedures, identifying a material weakness and remediation efforts [Evaluation of Disclosure Controls and Procedures](index=45&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were not effective due to a material weakness in loan modification disclosures - The company's disclosure controls and procedures were deemed ineffective as of July 31, 2025, due to a material weakness in internal control over financial reporting related to omitted loan modification disclosures[207](index=207&type=chunk)[208](index=208&type=chunk) - Despite the material weakness, management concluded that the condensed consolidated financial statements fairly present the financial position, results of operations, and cash flows[208](index=208&type=chunk) [Remediation Efforts to Address Material Weakness](index=46&type=section&id=Remediation%20Efforts%20to%20Address%20Material%20Weakness) Management has initiated remediation efforts to address the material weakness, including process enhancements, resource increases, and training - Enhancing internal processes for compliance with ASC 310-10-50-42 through 50-44 disclosure requirements for loan modifications - Increasing accounting and financial reporting resources by adding experienced personnel - Providing targeted training to accounting and financial reporting personnel to strengthen understanding and review procedures[212](index=212&type=chunk) [Changes in Internal Control over Financial Reporting](index=46&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) No material changes in internal control over financial reporting occurred during the quarter, apart from ongoing remediation efforts - No material changes in internal control over financial reporting occurred during the quarter, apart from ongoing remediation efforts for the identified material weakness[210](index=210&type=chunk) [Inherent Limitations on Effectiveness of Controls](index=46&type=section&id=Inherent%20Limitations%20on%20Effectiveness%20of%20Controls) Management acknowledges that control systems provide only reasonable assurance and have inherent limitations due to resource constraints - Management recognizes that control systems provide only reasonable assurance and cannot prevent or detect all errors or instances of fraud due to inherent limitations and resource constraints[211](index=211&type=chunk) [PART II. OTHER INFORMATION](index=47&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides other required information, including legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) This section states that the company is involved in various legal proceedings but does not expect a material adverse effect - The company is a defendant in various legal proceedings but does not anticipate a material adverse effect on its financial position, results of operations, or cash flows from their outcomes[214](index=214&type=chunk) [Item 1A. Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) This section indicates no material changes to the company's risk factors since the last annual report on Form 10-K - No material changes to the company's risk factors have occurred since the Form 10-K for the fiscal year ended April 30, 2025[215](index=215&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports no share repurchases during the quarter and reiterates the company's dividend policy and restrictions - No shares were repurchased under the company's stock repurchase program during the first quarter of fiscal year 2026[216](index=216&type=chunk) - The company has not historically issued dividends and does not expect to in the foreseeable future, and is currently restricted from paying dividends or repurchasing shares without lender consent[217](index=217&type=chunk)[218](index=218&type=chunk) [Item 3. Defaults Upon Senior Securities](index=47&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is marked as not applicable, indicating no defaults upon senior securities [Item 4. Mine Safety Disclosure](index=47&type=section&id=Item%204.%20Mine%20Safety%20Disclosure) This item is marked as not applicable, indicating no mine safety disclosures [Item 5. Other Information](index=47&type=section&id=Item%205.%20Other%20Information) This section states that no Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by directors or officers - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by directors or officers during the three months ended July 31, 2025[221](index=221&type=chunk) [Item 6. Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, debt agreements, and certifications - Exhibits include corporate governance documents (Articles of Incorporation, Bylaws), debt agreements (Indenture, Purchase Agreement, Sale and Servicing Agreement related to ACM Auto Trust 2025-2), and certifications (CEO/CFO certifications under Exchange Act Rules 13a-14(a) and 13a-14(b))[222](index=222&type=chunk) [SIGNATURES](index=49&type=section&id=SIGNATURES) This section contains the signatures of the company's President and Chief Executive Officer and Chief Financial Officer, certifying the report - The report is signed by Douglas W. Campbell, President and Chief Executive Officer, and Jonathan M. Collins, Chief Financial Officer, on September 9, 2025[226](index=226&type=chunk)

Financial Data and Key Metrics Changes - Total revenue for the quarter was $341.3 million, a decrease of 1.9% from the prior year, primarily due to fewer retail units sold [12] - Gross margin expanded to 36.6%, a 160 basis point increase over the prior year quarter [14] - Interest income increased by 7.5%, supported by a larger portfolio and more payments collected year over year [12] - Total collections rose by 6.2% to $183.6 million, highlighting the effectiveness of the Pay Your Way platform [19] - Operating expenses for SG&A totaled $51.4 million, a 10.1% increase from $46.7 million in the prior year [18] Business Line Data and Key Metrics Changes - Volumes declined by 5.7% to 13,568 units compared to 14,391 units a year ago [13] - The average selling price of vehicles decreased by $144 year over year [13] - The company saw a 10% year-over-year increase in credit applications, indicating strong customer demand [15] Market Data and Key Metrics Changes - The procurement costs rose by an incremental $500 per unit during the quarter, impacting inventory capacity [7] - Delinquencies greater than thirty days increased to 3.8%, representing a 30 basis point increase [20] - The average FICO score for new contracts improved by approximately 20 points year over year [50] Company Strategy and Development Direction - The company is focused on quality, growth with affordability, and protecting returns while modernizing payment and collections processes [29] - The rollout of LOS V2 and risk-based pricing is expected to drive improvements in deal quality and cash flow predictability [27] - The company is actively exploring alternative financing solutions to address capital constraints impacting working capital and inventory management [26] Management's Comments on Operating Environment and Future Outlook - Management noted that demand remained solid, with a significant increase in credit applications, particularly in July and August [15][33] - The company expects to see a positive effect on revenue from average selling prices, excluding ancillary products, while remaining disciplined on gross margin [14] - Management expressed confidence in the company's ability to navigate current challenges and position for long-term growth [27] Other Important Information - The company completed a $216 million term securitization at a weighted average interest rate of 6.27% [22] - The recent securitization transaction was nearly eight times oversubscribed for Class A notes and nearly 16 times for Class B notes, indicating strong market interest [22] - The company has taken significant steps to remediate material weaknesses in financial reporting and enhance transparency [25] Q&A Session Summary Question: What has been observed regarding procurement costs subsequent to the quarter end? - Management indicated that pricing has smoothed out and has come down slightly, with demand remaining strong [33] Question: How quickly can delinquencies stabilize with the new LOS systems? - Management expects normal seasonal fluctuations in net charge-offs and believes the portfolio is now weighted with mostly new underwriting in place [36] Question: What are the expectations for SG&A expenses moving forward? - Management anticipates that roughly half of the SG&A increase from this quarter will unwind in the second half of the year as technology implementations are completed [38] Question: What is the outlook for used car pricing and the duration of impacts from tariffs? - Management expects some seasonality and pricing decline in the back half of the year, as the effects of tariffs become known [45] Question: How is the health of the consumer characterized given the increase in delinquencies? - Management noted that while the consumer base is generally strained, the structures in place today are much better than a year ago, with a significant portion of the portfolio under enhanced underwriting standards [60]

America's Car-Mart (CRMT) came out with a quarterly loss of $0.69 per share versus the Zacks Consensus Estimate of $0.69. This compares to a loss of $0.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -200.00%. A quarter ago, it was expected that this auto retailer would post earnings of $0.87 per share when it actually produced earnings of $1.26, delivering a surprise of +44.83%.Over the last four quarters, the company has ...

Nasdaq: CRMT Q1 FY'26 Supplemental Slides AMERICA'S CAR-MART, INC. September 4, 2025 Disclaimers This presentation has been prepared as a supplement to the Company's earnings announcement for the first quarter of fiscal year 2026 and does not purport to be all-inclusive or to contain all of the information regarding the Company. The information and data contained herein should be read in conjunction with, and not in lieu of, the Company's annual, quarterly and other reports filed with the Securities and Exc ...

[First Quarter Fiscal Year 2026 Results Overview](index=1&type=section&id=First%20Quarter%20Fiscal%20Year%202026%20Results%20Overview) America's Car-Mart reported its first-quarter fiscal year 2026 results, highlighting strategic investments, operational performance, and financial position [Key Highlights & CEO Commentary](index=1&type=section&id=Key%20Highlights%20%26%20CEO%20Commentary) America's Car-Mart's Q1 FY26 results show positive impacts from tech investments on demand, underwriting, and collections, improving portfolio quality - Application volume increased over **10% year-over-year**, indicating elevated consumer demand[3](index=3&type=chunk)[12](index=12&type=chunk) - Deployed and implemented LOS V2 with an advanced underwriting scorecard and risk-based pricing across the entire footprint (excluding acquisitions)[3](index=3&type=chunk)[7](index=7&type=chunk) - Upgraded 'Pay Your Way' consumer-facing collections platform, driving a shift to online payments and nearly doubling recurring payment enrollments, improving convenience and predictability[3](index=3&type=chunk)[7](index=7&type=chunk) - Credit applications from top three customer credit rankings grew by **790 basis points, or 15%**, compared to FY25 average, with **nearly 72%** of the portfolio now under enhanced underwriting standards[5](index=5&type=chunk) [First Quarter Fiscal Year 2026 Key Operating Metrics Summary](index=1&type=section&id=First%20Quarter%20Fiscal%20Year%202026%20Key%20Operating%20Metrics%20Summary) The company saw slight revenue and sales volume decrease, but improved gross margin and credit loss allowance, with wider net loss | Metric | FY'26 Q1 | FY'25 Q1 | Change | % Change | | :------------------------------------------ | :------- | :------- | :----- | :------- | | Total revenue | $341.3M | $347.8M | ($6.5M) | (1.9)% | | Sales volumes (units) | 13,568 | 14,391 | (823) | (5.7)% | | Interest income | $65.1M | $60.5M | $4.6M | 7.5% | | Total collections | $183.6M | $172.9M | $10.7M | 6.2% | | Gross margin percentage | 36.6% | 35.0% | 1.6 pp | 160 bps | | Allowance for credit loss | 23.35% | 25.00% | (1.65 pp) | - | | Net charge-offs as % of avg. finance receivables | 6.6% | 6.4% | 0.2 pp | - | | Interest expense | $17.0M | $18.3M | ($1.3M) | (6.9)% | | Loss per share | ($0.69) | ($0.15) | ($0.54) | - | [Business Review and Operational Performance](index=2&type=section&id=Business%20Review%20and%20Operational%20Performance) This section details the company's operational performance, including technology implementations, revenue trends, expense management, credit quality, and financing activities [LOS V2 Implementation and Underwriting Enhancements](index=2&type=section&id=LOS%20V2%20Implementation%20and%20Underwriting%20Enhancements) LOS V2 deployment shifted applications to higher-ranked customers for enhanced portfolio quality and sustainable returns - LOS V2 features an updated, more predictive scorecard and risk-based pricing, enabling more accurate risk identification and granular customer ranking[9](index=9&type=chunk) - A dramatic shift occurred with **15% more customers** booked in ranks 5-7 (higher-ranked) compared to FY25, indicating improved customer quality[10](index=10&type=chunk) [Revenue and Sales Performance](index=3&type=section&id=Revenue%20and%20Sales%20Performance) Total revenue decreased by 1.9% to $341.3M due to 5.7% decline in retail units, partially offset by gross margin and 7.5% interest income increase | Metric | FY'26 Q1 | FY'25 Q1 | Change | % Change | | :-------------------- | :------- | :------- | :----- | :------- | | Total Revenue | $341.3M | $347.7M | ($6.4M) | (1.9)% | | Retail units sold | 13,568 | 14,391 | (823) | (5.7)% | | Interest income | $65.1M | $60.5M | $4.6M | 7.5% | - Customer demand was elevated, with a **10% year-over-year** increase in credit applications, but sales volumes declined due to fewer units available for sale[12](index=12&type=chunk) - **Cost of procurement increased by 5.2%**, pressuring inventory capacity and leading the company to prioritize vehicle quality and higher credit quality customers[12](index=12&type=chunk) [Gross Profit Analysis](index=3&type=section&id=Gross%20Profit%20Analysis) Gross profit margin improved by 160 basis points to 36.6% year-over-year, driven by pricing, ancillary products, reduced repairs, and improved wholesale retention | Metric | FY'26 Q1 | FY'25 Q1 | Change | | :---------------------- | :------- | :------- | :----- | | Gross profit margin | 36.6% | 35.0% | +1.6 pp | - Improvements were attributed to vehicle pricing, strong ancillary product attachment rates, reduced repairs, and improved wholesale retention[13](index=13&type=chunk) [SG&A Expense and Efficiency Initiatives](index=3&type=section&id=SG%26A%20Expense%20and%20Efficiency%20Initiatives) SG&A expenses rose 10.1% to $51.4M due to investments, with Q2 completion expected to yield future annual 5% reductions | Metric | FY'26 Q1 | FY'25 Q1 | Change | % Change | | :---------------- | :------- | :------- | :----- | :------- | | SG&A expenses | $51.4M | $46.7M | $4.7M | 10.1% | - Investments in people and technology initiatives drove the increase, with technology initiatives expected to complete in Q2 and lead to future SG&A reductions of **approximately 5% annually**[14](index=14&type=chunk) [Credit Quality and Portfolio Management](index=3&type=section&id=Credit%20Quality%20and%20Portfolio%20Management) This section reviews the company's credit quality, including net charge-offs and allowance for credit losses [Net Charge-Offs (NCOs)](index=3&type=section&id=Net%20Charge-Offs%20(NCOs)) Net charge-offs increased slightly to 6.6% from 6.4%, driven by softer sales and higher frequency/severity of losses, with modest delinquency rise | Metric | FY'26 Q1 | FY'25 Q1 | Change | | :------------------------------------------ | :------- | :------- | :----- | | NCOs as % of avg. finance receivables | 6.6% | 6.4% | +0.2 pp | | Delinquencies (30+ days) | 3.8% | 3.5% | +0.3 pp | - The increase in NCOs was attributed to softer sales (**50%**) and higher frequency (**three-quarters of the remaining 50%**) and severity (**one-quarter of the remaining 50%**) of losses[15](index=15&type=chunk) [Allowance for Credit Losses](index=3&type=section&id=Allowance%20for%20Credit%20Losses) Allowance for credit losses improved to 23.35% at July 31, 2025, from 25.00% year-over-year, with slight sequential increase | Metric | July 31, 2025 | April 30, 2025 | July 31, 2024 | | :------------------------------------------ | :------------ | :------------- | :------------ | | Allowance as % of principal balance net of deferred revenue | 23.35% | 23.25% | 25.00% | - The sequential increase in allowance was driven **equally** by portfolio growth and the frequency and severity of loss[16](index=16&type=chunk) [Leverage, Liquidity, and Financing Activities](index=3&type=section&id=Leverage%2C%20Liquidity%2C%20and%20Financing%20Activities) Leverage ratios improved, with debt to finance receivables at 51.1% and net debt at 43.1%, completing a $172M securitization post-quarter | Metric | July 31, 2025 | July 31, 2024 | Change | | :------------------------------------------ | :------------ | :------------ | :----- | | Debt to finance receivables | 51.1% | 53.4% | -2.3 pp | | Debt, net of cash, to finance receivables | 43.1% | 46.7% | -3.6 pp | | Average down payment % | 4.9% | 5.2% | -0.3 pp | | Average originating term | 44.9 months | 44.3 months | +0.6 months | | Weighted average loan term (portfolio) | 48.3 months | 48.1 months | +0.2 months | - On August 28, 2025, the company completed a **$172 million term securitization** with a weighted average life-adjusted coupon of **5.46%**, an **81-basis point improvement** over the May 2025 issuance[18](index=18&type=chunk) - Net proceeds from the securitization were used to pay down the outstanding balance on the revolving line of credit, and the company continues to explore diversifying financing sources[18](index=18&type=chunk) [Detailed Key Operating Results](index=4&type=section&id=Detailed%20Key%20Operating%20Results) Comprehensive table of Q1 FY26 operating results shows declining sales volume but improved gross profit and collection efficiency | Operating Data | July 31, 2025 | July 31, 2024 | % Change | | :------------------------------------------ | :------------ | :------------ | :------- | | Retail units sold | 13,568 | 14,391 | (5.7)% | | Average number of stores in operation | 154 | 155 | (0.6)% | | Average retail units sold per store per month | 29.4 | 30.9 | (4.9)% | | Average retail sales price | $19,564 | $19,286 | 1.4% | | Total gross profit per retail unit sold | $7,456 | $6,996 | 6.6% | | Total gross profit percentage | 36.6% | 35.0% | - | | Same store revenue growth | (4.1)% | (8.6)% | - | | Net charge-offs as a percent of average finance receivables | 6.6% | 6.4% | - | | Total collected (principal, interest and late fees), in thousands | $183,571 | $172,872 | 6.2% | | Average total collected per active customer per month | $585 | $562 | 4.1% | | Average percentage of finance receivables current (excl. 1-2 day) | 80.8% | 82.3% | - | | Average down-payment percentage | 4.9% | 5.2% | - | | **Period End Data:** | | | | | Stores open | 154 | 156 | (1.3)% | | Accounts over 30 days past due | 3.8% | 3.5% | - | | Active customer count | 104,691 | 103,231 | 1.4% | | Principal balance of finance receivables (in thousands) | $1,515,680 | $1,465,259 | 3.4% | | Weighted average total contract term | 48.3 | 48.1 | 0.5% | [Financial Statements](index=7&type=section&id=Financial%20Statements) This section presents the company's consolidated financial statements, including results of operations, balance sheet, cash flows, and non-GAAP reconciliations [Consolidated Results of Operations](index=7&type=section&id=Consolidated%20Results%20of%20Operations) Consolidated statement shows a net loss of $5.7M for Q1 FY26, wider than Q1 FY25, driven by decreased sales, increased SG&A, and higher credit loss provision | Statements of Operations (Amounts in thousands) | July 31, 2025 | July 31, 2024 | % Change | | :------------------------------------------ | :------------ | :------------ | :------- | | Sales | $276,240 | $287,248 | (3.8)% | | Interest income | $65,072 | $60,515 | 7.5% | | Total Revenue | $341,312 | $347,763 | (1.9)% | | Cost of sales | $175,080 | $186,570 | (6.2)% | | Selling, general and administrative | $51,408 | $46,711 | 10.1% | | Provision for credit losses | $103,036 | $95,423 | 8.0% | | Interest expense | $17,042 | $18,312 | (6.9)% | | Net loss | ($5,736) | ($964) | - | | Net loss attributable to common shareholders | ($5,746) | ($974) | - | | Basic Earnings per share | ($0.69) | ($0.15) | - | | Diluted Earnings per share | ($0.69) | ($0.15) | - | [Condensed Consolidated Balance Sheet](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheet) Balance sheet shows increased total assets, net finance receivables, cash, and equity, with improved allowance for credit losses percentage | Balance Sheet Data (Amounts in thousands) | July 31, 2025 | April 30, 2025 | July 31, 2024 | | :------------------------------------------ | :------------ | :------------- | :------------ | | Cash and cash equivalents | $9,666 | $9,808 | $4,748 | | Restricted cash from collections on auto finance receivables | $111,761 | $114,729 | $93,873 | | Finance receivables, net | $1,183,452 | $1,180,673 | $1,126,271 | | Inventory | $112,451 | $112,229 | $114,548 | | Total assets | $1,607,974 | $1,606,474 | $1,531,270 | | Revolving lines of credit, net | $164,394 | $204,769 | $184,846 | | Notes payable, net | $610,750 | $572,010 | $597,494 | | Total equity | $564,931 | $569,522 | $471,153 | | Shares outstanding | 8,277,613 | 8,263,280 | 6,396,757 | | Book value per outstanding share | $68.30 | $68.97 | $73.72 | | Allowance as % of principal balance net of deferred revenue | 23.35% | 23.25% | 25.00% | | Changes in allowance for credit losses (Amounts in thousands) | July 31, 2025 | July 31, 2024 | | :------------------------------------------ | :------------ | :------------ | | Balance at beginning of period | $323,100 | $331,260 | | Provision for credit losses | $103,036 | $95,423 | | Charge-offs, net of collateral recovered | ($100,066) | ($92,259) | | Balance at end of period | $326,070 | $334,424 | [Condensed Consolidated Cash Flow Statement](index=9&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statement) Net cash used in operating activities decreased significantly to $5.9M, while net cash provided by financing activities substantially decreased | Cash Flow Data (Amounts in thousands) | July 31, 2025 | July 31, 2024 | | :------------------------------------------ | :------------ | :------------ | | Net cash used in operating activities | ($5,918) | ($14,972) | | Net cash used in investing activities | ($439) | ($8,513) | | Net cash provided by financing activities | $3,247 | $27,659 | | (Decrease) increase in cash, cash equivalents, and restricted cash | ($3,110) | $4,174 | [Reconciliation of Non-GAAP Financial Measures](index=9&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) Reconciliation of non-GAAP Debt, Net of Total Cash, to Finance Receivables improved to 43.1%, reflecting disciplined capital management | Calculation of Debt, Net of Total Cash, to Finance Receivables (Amounts in thousands) | July 31, 2025 | April 30, 2025 | | :------------------------------------------ | :------------ | :------------- | | Total debt | $775,144 | $776,779 | | Total cash, cash equivalents, and restricted cash | $121,427 | $124,537 | | Debt, net of total cash | $653,717 | $652,242 | | Principal balance of finance receivables | $1,515,680 | $1,509,154 | | Ratio of debt to finance receivables | 51.1% | 51.5% | | Ratio of debt, net of total cash, to finance receivables | 43.1% | 43.2% | - The ratio of debt, net of total cash, to finance receivables **improved to 43.1% at July 31, 2025, from 46.7% at July 31, 2024**, indicating improved leverage ratios and disciplined capital management[17](index=17&type=chunk)[37](index=37&type=chunk) [Additional Information](index=5&type=section&id=Additional%20Information) This section provides background on America's Car-Mart, explanations of non-GAAP measures, forward-looking statements, and investor relations information [About America's Car-Mart, Inc.](index=5&type=section&id=About%20America%27s%20Car-Mart%2C%20Inc.) America's Car-Mart operates dealerships in 12 states, specializing in integrated auto sales and finance, emphasizing customer service and financing - America's Car-Mart operates automotive dealerships in **12 states**, specializing in the 'Integrated Auto Sales and Finance' segment of the used car market[23](index=23&type=chunk) - The company focuses on superior customer service, building strong personal relationships, and providing financing for substantially all its customers in smaller cities[23](index=23&type=chunk) [Non-GAAP Financial Measures Explanation](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) Report includes 'total debt, net of total cash, to finance receivables' as a non-GAAP measure for leverage and risk, advising investors to review full GAAP - The company uses 'total debt, net of total cash, to finance receivables' as a non-GAAP measure to monitor leverage and evaluate balance sheet risk[24](index=24&type=chunk) - Investors are advised to review consolidated financial statements in their entirety and not solely rely on any single financial measure[24](index=24&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements about future objectives and performance, noting actual results may differ due to various risks - Forward-looking statements address future objectives, plans, and goals, as well as expectations regarding financial and operating performance[25](index=25&type=chunk) - Actual results could differ materially due to various risks and uncertainties, including general economic conditions, vehicle availability, credit facility access, underwriting effectiveness, competition, and changes in consumer finance laws[26](index=26&type=chunk)[27](index=27&type=chunk) [Conference Call & Investor Relations](index=5&type=section&id=Conference%20Call%20%26%20Investor%20Relations) America's Car-Mart held a conference call on Sept 4, 2025, to discuss quarterly results, with webcast replay and transcript available online - A conference call was held on September 4, 2025, to discuss quarterly results, with webcast and telephone access provided[22](index=22&type=chunk) - A replay and transcript of the conference call and webcast, along with supplemental information, are available on the company's investor relations webpage for 12 months[22](index=22&type=chunk)

Core Insights - America's Car-Mart, Inc. reported a total revenue of $341.3 million for the first quarter of fiscal year 2026, reflecting a decrease of 1.9% compared to the same period in the previous year, primarily due to a decline in sales volumes [7][13] - The company has implemented strategic investments, including the launch of LOS V2 and an upgraded collections platform, which have positively impacted consumer demand and operational efficiency [3][4] Financial Performance - Total revenue decreased by 1.9% to $341.3 million, driven by a 5.7% decline in sales volumes to 13,568 units [7][13] - Interest income increased by $4.6 million, or 7.5%, contributing to total collections rising by 6.2% to $183.6 million [7][13] - Gross margin percentage improved by 160 basis points to 36.6%, reflecting better vehicle pricing and reduced repair costs [7][15] - The net loss for the quarter was $5.7 million, resulting in a loss per share of $0.69, compared to a loss of $0.15 in the prior year [7][34] Operational Metrics - Customer demand remained strong, with a 10% year-over-year increase in credit applications, although sales volumes declined due to inventory constraints [3][14] - The average retail sales price increased by 1.4% to $19,564, while the total gross profit per retail unit sold rose by 6.6% to $7,456 [23][33] - The allowance for credit losses improved to 23.35% of finance receivables, down from 25.00% a year earlier, indicating better risk management [18][36] Strategic Initiatives - The deployment of LOS V2 has enhanced underwriting capabilities, leading to a 15% increase in credit applications from higher-ranking customers [5][12] - The upgraded Pay Your Way platform has shifted customer payments from in-store to online, improving convenience and payment consistency [3][4] - The company is focused on improving portfolio quality, with nearly 72% of its portfolio now operating under enhanced underwriting standards [5][20] Financing and Leverage - The company completed a term securitization transaction on August 28, 2025, issuing $172 million in asset-backed notes, which helped pay down the revolving line of credit [21] - Debt to finance receivables ratio improved to 51.1%, down from 53.4% a year earlier, indicating better leverage management [19][40]

Core Insights - America's Car-Mart, Inc. has successfully completed a term securitization transaction, issuing $172 million in asset-backed notes with a weighted average coupon of 5.46% [1] - The transaction includes $133.34 million of Class A Notes with a coupon rate of 5.01% and $38.62 million of Class B Notes with a coupon rate of 6.08% [2] - The Class A Notes were nearly 8 times oversubscribed, while the Class B Notes were almost 16 times oversubscribed, indicating strong market interest [3] Financial Performance - The company has achieved its fourth consecutive improvement in the overall weighted average coupon, reducing the weighted average spread by 308 basis points since the previous transaction in 2024-1 [3] - The favorable pricing of the notes is attributed to strong demand and improved operating performance within the company's portfolio [3] Company Overview - America's Car-Mart operates automotive dealerships in 12 states and is a leading publicly held automotive retailer focused on the integrated auto sales and finance segment of the used car market [5] - The company emphasizes superior customer service and strong personal relationships with customers, primarily operating in smaller cities throughout the South-Central United States [5]

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a v ...