America’s Car-Mart (CRMT) Q3 2026 earnings summary

Executive summary

• Retail sales volumes declined 22.1% year-over-year to 10,275 units, primarily due to capital structure constraints and severe weather disruptions, not demand.

• Store consolidations reduced the active dealership count to 136 after closing 18 locations as part of operational improvements.

• Total revenue for the quarter was $286.8 million, down 12% year-over-year, with gross profit per unit up 8.8% to $7,762 and gross margin stable at 35.8%.

• Net loss attributable to common shareholders was $76.7 million for the quarter ($9.25 per share GAAP; $1.53 adjusted), with a $47 million non-cash tax charge.

• Digital payment adoption and collections performance remained strong, with 65% of transactions processed remotely.

Financial highlights

• Interest income rose 3.1% to $64.2 million; interest expense increased 28.7% to $21.8 million.

• SG&A expenses were $51.5 million, including $2.8 million in non-recurring charges; adjusted SG&A was $48.7 million (21.9% of sales).

• Provision for credit losses increased 21.4% to $105.2 million.

• Total cash, including restricted, was $237 million at quarter-end; total debt was $892.2 million.

• Collections totaled $179 million, up 1.5% year-over-year, with improved cash collected per account.

Outlook and guidance

• Inventory build began in January for tax season, with a 44% increase from December lows.

• Management expects sales volumes to recover as origination capacity is restored through new financing sources, with cost savings from consolidations to be realized in Q4.

• Securing a revolving warehouse facility or additional ABS transactions remains a top priority for restoring origination capacity.

• Forward-looking statements highlight risks from economic conditions, vehicle supply, credit availability, regulatory changes, and operational challenges.