America’s Car‑Mart, Inc. (CRMT) reported second‑quarter fiscal 2026 results on December 4, 2025, showing revenue of $350.2 million, a 0.8% year‑over‑year increase, and sales volume of 13,637 units, down 1.1% from the prior quarter. Gross profit margin fell to 37.5% from 39.4% in the prior year quarter, a decline that reflects the absence of a 290‑basis‑point one‑time service‑contract accounting benefit that inflated the previous year’s margin.
The company’s adjusted loss per share was $0.79, a miss of $1.08 per share against the consensus estimate of a $0.14 profit and a miss of $0.30 against the consensus loss estimate of $0.49. GAAP loss per share was $2.71. The earnings miss is driven by higher operating costs, modest revenue growth, and the removal of the prior year’s one‑time benefit, which together eroded profitability despite a modest rise in average retail sales price to $457 per unit.
CRMT closed a $300 million term loan on October 30, 2025, and fully repaid its revolving line of credit. The debt restructuring eliminated restrictive covenants, lowered interest expense, and gave the company greater flexibility to invest in technology and operational initiatives, a move that investors view as a positive step toward long‑term financial health.
Operational highlights include the closure of five underperforming dealerships and consolidation of those customers into six higher‑performing locations, projected to save $1 million in fiscal 2026 and $2 million annually. The upgraded Loan Origination System (LOS V2) continues to outperform legacy contracts, with credit losses from new originations tracking better than those under the older platform, supporting the company’s focus on improving profitability in the sub‑prime used‑car market.
Management noted that the quarter’s results reflect progress in transforming the business, while acknowledging the challenges posed by macroeconomic headwinds and potential changes to SNAP benefits. CEO Doug Campbell said, “Our second‑quarter financial results reflect the continued progress we are making to transform our business for the future, even as we navigate a fluid operating backdrop. We are proactively repositioning America’s Car‑Mart by investing in our infrastructure, optimizing our platform, and improving our capital structure.”
Market reaction was largely negative, driven by the significant adjusted loss per share that missed analyst expectations. Some investors highlighted the debt restructuring as a positive development, but the earnings miss dominated sentiment, underscoring the company’s ongoing profitability challenges amid a sensitive sub‑prime market.
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