America's Car-Mart, Inc.

Quarterly revenue was $302.8 million, down 18.2% year over year. Unit sales fell 27.1% to 11,411. Gross profit margin was 31.2% versus 36.4% a year ago. SG&A was $47.6 million, or 19.6% of sales, versus $48.3 million and 15.6% a year ago; adjusted SG&A was $43.6 million, or 18% of sales. Net charge-offs were 7.5% of average finance receivables versus 6.9% in the prior-year quarter. Accounts over 30 days past due were 4.1% versus 3.4% a year ago. Fourth-quarter collections were $185.7 million, down 2.8% year over year, and average collected per active customer per month improved to $617 from $612. Loss per share was $3.56 on a GAAP basis, while adjusted EPS was a profit of $0.48. For the full year, gross margin was 35.4%, gross profit per unit rose 1% to $7,442, collections grew 2.2% to $730 million, and full-year loss per share was $16.79 with adjusted loss per share of $3.71. Balance sheet metrics included total cash of $131.6 million, unrestricted cash of $47 million, total debt of $722.4 million, debt net of cash to finance receivables of 41.8%, and a $329.9 million allowance for credit losses, or 25.15% of finance receivables. The company did not provide next-quarter or full-year quantitative guidance; instead, management said originations will remain limited until additional financing capacity is secured, while the special committee continues its strategic and financing review under the June amendment.

Doug Campbell framed fiscal 2026 as a transitional year centered on liquidity preservation, capital structure repair, and store footprint optimization. He said the company completed 60 consolidations, taking active stores from 154 to 94, and emphasized that these were deliberate moves to create a more productive network and protect the servicing platform. His tone was defensive but optimistic on the business model, repeatedly stressing that the demand for reliable transportation and fair financing remains durable and that the issue is financing capacity, not customer demand or underwriting quality.

Jonathan Collins focused on the financial effects of the contraction and the improved balance sheet. He highlighted SG&A of $47.6 million, adjusted SG&A of $43.6 million, $6.4 million of non-cash impairment in the quarter, and $11 million for the full year on closed locations. He also pointed to stronger liquidity and leverage metrics: total cash of $131.6 million, unrestricted cash of $47 million, total debt of $722.4 million, and net debt to finance receivables at 41.8%, which he said was the lowest in three years. He added that the company remained in compliance with the June amendment covenants as of June 30 and today.

There was no live Q&A because the strategic review is still ongoing, so management declined to take analyst questions. Instead, the call focused on answering likely concerns preemptively: whether rising charge-offs reflected underwriting trouble, whether going concern language signaled a credit issue, and how the company will fund originations. Management said the higher charge-off ratio was mainly a smaller-book effect plus fuel and cost-of-living pressure, not an underwriting failure, and said collections and servicing remain intact. They also explained that the amendment provides temporary covenant relief while the special committee evaluates financing alternatives, including a warehouse facility, recapitalization, or another transaction.