Through its various subsidiaries, America's Car-Mart, Inc. functions as an automotive retailer across the United States. The company's core business involves selling ...
America's Car-Mart, Inc. (NASDAQ: CRMT) is a leading player in the integrated auto sales and finance segment of the used car market. The company's core business model is 'buy here pay here', meaning it sells used vehicles and provides financing directly to consumers, often those with limited or poor credit ...America's Car-Mart, Inc. (NASDAQ: CRMT) is a leading player in the integrated auto sales and finance segment of the used car market. The company's core business model is 'buy here pay here', meaning it sells used vehicles and provides financing directly to consumers, often those with limited or poor credit history. This integrated approach allows Car-Mart to serve a niche market that traditional lenders may overlook, generating revenue from both vehicle sales and interest income from financing.
As of April 30, 2022, the company operated 154 dealership locations, predominantly in the South-Central United States, with a presence in 12 states. The company has expanded over the years, growing from its first dealership in Rogers, Arkansas, founded by Bill Fleeman in 1981, to a network of over 150 locations. In October 2023, Douglas W. Campbell became CEO and President, bringing over two decades of automotive leadership experience. Prior to that, he served as President for a year, and before joining Car-Mart, he held executive positions at other automotive retail companies.
Car-Mart's product offering focuses on quality pre-owned vehicles, typically older models, which are affordable for its target customer base. The company also provides vehicle service contracts and other ancillary products. Revenue is generated primarily through vehicle sales and finance charges. In the trailing twelve months (TTM), Car-Mart reported revenue per share of $147.04, but the company faced financial challenges, with a net loss per share of -$16.20, reflecting a net profit margin of -11%. Despite this, the company maintains a strong current ratio of 8.783, indicating high liquidity, largely due to its substantial receivables portfolio (average receivables TTM: $1.108 billion).
Car-Mart's financial performance has been impacted by higher interest rates and credit losses, but the company remains a significant player in the used car industry, with a market cap of approximately $26 million. The company is known for its community-oriented approach, serving customers who may have been turned away by traditional lenders, and it has been recognized as one of America's Best Midsize Employers. With over 1,500 employees, Car-Mart continues to focus on providing affordable transportation solutions and building long-term customer relationships.
Looking ahead, Car-Mart aims to navigate the current economic environment by managing credit risk and expanding its dealership network. The company's long-term strategy includes leveraging technology to enhance the customer experience and streamline operations, while maintaining its commitment to serving customers with flexible financing options.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$1.3B
-7.9%
-15.4%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-139.2M
-877.7%
+61.5%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+48.2%
+0.8%
-37.0%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-8.4%
-225.2%
+323.6%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-10.9%
-944.1%
+54.4%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$63.1M
+219.9%
+1185.7%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+4.9%
+230.2%
+1383.2%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
173.3%
+16.9%
-12.8%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
7.96x
+107.8%
+542.7%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Jonathan Collins: Welcome to America's Car-Mart's fourth quarter fiscal 2026 earnings call for the period ended April 30th, 2026. I'm Jonathan Collins, the company's CFO. Joining me today are Doug Campbell, our President and CEO, Jamie Fischer, our COO, and Marie Persichetti, our SVP of Capital Markets. We issued our earnings release earlier this morning, and a supplemental presentation is available on our website. Because our strategic review is still ongoing, we will not be able to host a question-and-answer session today. For any follow-up questions, our investor relations team can be reached through the contact information posted on our website at ir.car-mart.com. During today's call, certain statements we make may be considered forward-looking. These statements involve risks and uncertainties that could cause actual results to differ materially from management's current view. They are made under the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. The company cannot guarantee the accuracy of any forecast or estimate and does not undertake any obligation to update these statements. For more information, including important cautionary notes, please see Part One of our annual report on Form 10-K for the fiscal year ended April 30th, 2026, which will be filed later today. You can also refer to our current and quarterly reports on Forms 8-K and 10-Q filed with the Securities and Exchange Commission. Finally, unless otherwise stated, our comparisons are for the fourth quarter of fiscal 2026 versus the fourth quarter of fiscal 2025. Doug, I'll turn it over to you now.
Doug Campbell: Thank you, Jonathan. Good morning, everyone. Thank you for joining us. Fiscal year 2026 was a transitional year, defined by our work to strengthen liquidity and our capital structure. Throughout the year, we've been managing capital, which meant reduced originations, lower inventory levels, and tightened underwriting. Beginning in the third quarter, we started optimizing our dealership footprint, consolidating select locations into higher-performing nearby stores. These were complex decisions, but they were the right ones for the business. The fourth quarter reflected the same dynamic. Faced with limited origination capital and no revolving warehouse facility, we intentionally reduced originations and inventory to protect liquidity and avoided originating loans we lacked the capacity to carry. That flowed through to our top line and operating leverage as units sold declined 27.1% to 11,411 units. Jonathan will walk through the full financial picture shortly. I want to be direct on how to read this year's results, because the headline numbers invite the wrong conclusion. Our results were shaped by our capital structure, not by a change in what our customers need or how they pay us or how we underwrite. On credit, our charge-off ratio rose compared to last year. Part of that is simply a smaller book. With fewer new loans, our …
