AMERICAS CARMART (CRMT) Company Report

America's Car-Mart, Inc. (CRMT) has completed a term securitization transaction, issuing $161.3 million in principal amount of asset-backed notes with a weighted average coupon of 7.02%.
This 2025-4 transaction introduces a more efficient deal structure designed to generate increased cash flow for the business and is projected to reduce the company's long-term cost of capital by minimizing the need for frequent future transactions and associated fees.
The 7.02% weighted average coupon for the 2025-4 issuance compares to 5.46% on the prior 2025-3 issuance, primarily reflecting a strategic shift from an accelerated amortization structure to a residual cash flow structure that retains more value for Car-Mart over the life of the deal.
This move is part of multi-year strategies to improve the capital structure and operating platform, aiming to provide Car-Mart with improved liquidity, better capital efficiency, and more stable funding capacity for long-term success and value creation.

17 hours ago

Press Release

America's Car-Mart Reports Q2 FY26 Results and Capital Structure Transformation

CRMT

Earnings

Debt Issuance

New Projects/Investments

America's Car-Mart reported a loss per share of $2.71 for the second quarter of fiscal year 2026, with total revenue increasing 0.8% to $350.2 million.
The company completed a significant capital structure transformation by closing a $300.0 million term loan and repaying its revolving line of credit, which increased total cash, including restricted cash, to $251.0 million as of October 31, 2025.
Sales volumes decreased 1.1% to 13,637 units, and the gross margin percentage was 37.5%, compared to 39.4% in the prior year quarter.
Net charge-offs as a percentage of average finance receivables increased to 7.0% from 6.6% in the prior year, and the allowance for credit loss increased sequentially to 24.19% as of October 31, 2025.
Subsequent to quarter-end, the company closed five underperforming stores, projected to save $1 million in fiscal 2026 and $2 million annually.

Dec 4, 2025, 7:00 PM

8-K

CRMT Reports Q2 2026 Net Loss Amid Strategic Restructuring and Capital Transformation

CRMT

Earnings

Debt Issuance

Layoffs

America's Car-Mart reported a net loss of $22.5 million for Q2 2026, which included approximately $20 million in non-cash reserve adjustments and one-time charges related to strategic actions. The adjusted EPS loss, excluding these items, was $0.79 per share.
Revenue for Q2 2026 increased 0.8% year over year, or 4.8% when excluding a prior-year one-time benefit. Gross profit margin was 37.5%, but improved by approximately 100 basis points year over year and 90 basis points sequentially when adjusted.
The company closed a new $300 million term loan facility in October 2025, which removed capital constraints and enabled strategic operational optimization.
Phase one of a multi-phase plan was executed in early November, involving the consolidation of five underperforming stores and the elimination of approximately 10% of headcount. These initial phases are projected to generate more than $20 million in annualized SG&A savings and a 10% reduction in the store footprint, with total annualized savings from all planned initiatives expected to reach $31.4 million.
Credit application volume increased 14.6% year over year. Net charge-offs rose to 7.0% from 6.6% in the prior year, while delinquencies over 30 days improved by 62 basis points to 3.14%. The company is prioritizing higher-quality customers, with 76.5% of volume coming from top-ranked customers since the LOS V2 launch in May.

Dec 4, 2025, 2:00 PM

Transcript

CRMT Reports Q2 2026 Net Loss Amid Capital Structure Transformation and Cost Optimization

CRMT

Earnings

Debt Issuance

Layoffs

America's Car-Mart (CRMT) reported a net loss of $22.5 million for Q2 2026, which included approximately $20 million in non-cash reserve adjustments and one-time charges, resulting in an adjusted EPS loss of $0.79 per share.
The company completed a $300 million term loan in October, allowing it to repay and retire its revolving line of credit and a $150 million uncommitted amortizing warehouse facility, significantly transforming its capital structure.
Strategic actions in Q2 2026 included the consolidation of five underperforming stores and an approximate 10% headcount reduction, with these initial phases expected to generate over $20 million in annualized SG&A savings and an estimated 10% reduction in store footprint.
CRMT is prioritizing value over volume with its enhanced underwriting platform (LOS V2) to build a portfolio that delivers stronger returns, and is focused on rebuilding inventory in Q3 to meet strong consumer demand for the upcoming tax season.
The company aims to complete its capital structure transformation with another ABS transaction and a revolving warehouse facility, execute Phase II of cost reduction initiatives, and expects to return to positive GAAP earnings.

Dec 4, 2025, 2:00 PM

Transcript

America's Car-Mart Reports Q2 FY26 Results and Capital Structure Enhancements

CRMT

Earnings

Debt Issuance

Guidance Update

America's Car-Mart reported a GAAP loss per share of $2.71 and an adjusted loss per share of $0.79 for the second quarter of fiscal year 2026, with total revenue increasing 0.8% to $350.2 million.
The company significantly strengthened its capital structure by closing a $300.0 million term loan and repaying its revolving line of credit, which contributed to an increase in total cash, including restricted cash, to $251.0 million.
Credit applications were up 14.6% year-over-year, and accounts over 30 days past due improved 62 basis points sequentially to 3.14%. However, net charge-offs as a percentage of average finance receivables increased to 7.0% compared to 6.6% in the prior year quarter.
A multi-phase plan has been initiated to reduce Selling, General, and Administrative (SG&A) expenses, targeting approximately 16.5% of sales over time, with combined expected annualized savings of $31.4 million.

Dec 4, 2025, 2:00 PM

Presentation

America's Car-Mart closes $300 million term loan

CRMT

Debt Issuance

New Projects/Investments

America's Car-Mart (CRMT) closed a $300 million five-year term loan facility on October 30, 2025, provided by funds managed by Silver Point Capital, L.P..
The loan matures on October 30, 2030, and bears interest at SOFR plus 7.50% per annum.
In connection with this transaction, the company fully repaid its outstanding asset-backed line of credit and issued Silver Point Capital warrants to purchase up to 10% of its fully diluted outstanding shares.
The company stated that this new term loan strengthens its financial profile and provides flexibility for originations, operations, and long-term growth opportunities.

Nov 5, 2025, 10:15 PM

8-K

America's Car-Mart Faces Stockholder Rights Investigation

CRMT

Legal Proceedings

Financial Restatement

Demand Weakening

Bragar Eagel & Squire, P.C. is investigating America's Car-Mart (CRMT) for potential violations of federal securities laws and unlawful business practices on behalf of its stockholders.
The investigation follows Car-Mart's July 15, 2025, disclosure of a delay in filing its annual report and its July 30, 2025, announcement that previously issued financial statements should no longer be relied upon, both due to issues with loan modification disclosures.
Car-Mart's stock price fell significantly after these disclosures, including an 18.2% drop on September 4, 2025, following the release of Q1 FY2025 results which showed a 5.7% decline in sales volumes.

Nov 1, 2025, 2:21 PM

Press Release

Bragar Eagel & Squire, P.C. Investigates America's Car-Mart, Inc.

CRMT

Legal Proceedings

Financial Restatement

Demand Weakening

Bragar Eagel & Squire, P.C. is investigating America's Car-Mart, Inc. (CRMT) for potential violations of federal securities laws and/or other unlawful business practices on behalf of its stockholders.
The investigation follows Car-Mart's disclosure on July 15, 2025, of a delay in filing its annual report to enhance disclosures related to loan modifications, which caused its stock price to fall $3.12, or 5.2%.
On July 30, 2025, the Company further disclosed that certain previously issued financial statements should no longer be relied upon due to omissions in loan modification disclosures, leading to an additional stock price drop of $3.70, or 7.5%.
Car-Mart's stock price fell another $8.14, or 18.2%, on September 4, 2025, after releasing its first quarter fiscal 2025 financial results, which revealed a 5.7% decline in sales volumes to 13,568 units compared to the prior year.

Oct 1, 2025, 8:38 PM

Press Release

America's Car-Mart (CRMT) Under Securities Fraud Investigation Following Financial Disclosures and Sales Decline

CRMT

Financial Restatement

Legal Proceedings

Demand Weakening

Glancy Prongay & Murray LLP is continuing a securities fraud investigation into America's Car-Mart, Inc. (CRMT) for possible violations of federal securities laws.
The investigation follows Car-Mart's July 2025 disclosures of a delayed annual report and that previously issued financial statements should no longer be relied upon due to omitted loan modification disclosures.
These disclosures led to stock price declines of 5.2% on July 15, 2025, and 7.5% on July 30, 2025.
Further, on September 4, 2025, Car-Mart reported a 5.7% decline in Q1 fiscal 2025 sales volumes to 13,568 units, resulting in an 18.2% stock price drop.

Sep 30, 2025, 4:00 PM

Press Release

America's Car-Mart Faces Investor Scrutiny and Investigation

CRMT

Legal Proceedings

Financial Restatement

Demand Weakening

Hagens Berman has initiated an investigation into America's Car-Mart, Inc. (CRMT) following a more than 18% drop in share price on September 4, 2025, after the company reported its Q1 2026 financial results and disclosed significant adverse tariff impacts.
The investigation will examine whether Car-Mart misled investors about its receivables, customer risks, and the impact of tariffs, particularly after the company assured investors in mid-June 2025 that tariff impacts were "relatively muted" and "very manageable".
Car-Mart's stock previously fell on July 15, 2025, due to a delayed annual report to enhance loan modification disclosures, and again on July 30, 2025, after concluding that certain prior financial statements should no longer be relied upon due to omissions in loan modification disclosures.
The Q1 2026 results also indicated a 5.7% decline in sales volumes, totaling 13,568 units compared to the prior year, attributed to prioritizing stronger-performing and better credit quality customers.