Prnewswireยท2025-09-15 20:26Core Viewpoint - America's Car-Mart, Inc. experienced a significant decline in share price following the release of its Q1 2026 financial results, which were adversely affected by tariff impacts and other operational challenges [1][6]. Financial Performance - For Q1 2026, Car-Mart reported a sales volume decline of 5.7%, with units sold decreasing from 14,391 to 13,568 compared to the previous year [6]. - The company's share price fell by over 18%, dropping $8.14 on September 4, 2025, following the financial results announcement [1][6]. Investor Concerns - Hagens Berman, a national shareholders rights firm, has initiated an investigation into whether Car-Mart misled investors regarding its receivables and customer risks, particularly in relation to tariff impacts [2][3]. - The investigation is focused on the accuracy of Car-Mart's disclosures about the risks posed by tariffs, especially after the company previously assured investors of manageable impacts [4][7]. Disclosure Issues - In mid-June 2025, Car-Mart claimed to have effectively managed tariff impacts, stating an increase of only $300 per vehicle unit [4]. - However, subsequent disclosures revealed the need to enhance transparency regarding loan modifications for financially distressed borrowers, leading to a stock price drop of $3.12 (5.2%) on July 15, 2025, and a further decline of $3.70 (7.5%) on July 30, 2025, when the company stated that prior financial statements should no longer be relied upon [5][6]. Legal and Regulatory Actions - The investigation by Hagens Berman is seeking information from investors who may have suffered losses and from individuals with knowledge that could assist in the inquiry [2][7]. - Whistleblowers with non-public information regarding Car-Mart are encouraged to come forward, with potential rewards for information leading to successful recovery by the SEC [7].