Car-Mart Q4 earnings soar over 2,400%, revenue up 1%

Rogers-based America’s Car-Mart Inc. posted gains in revenue and earnings, beating analyst expectations in the fourth quarter of fiscal 2025 and for the year.

Before the markets opened Thursday (June 12), the buy here, pay here used car dealer reported net income rose by 2,454% to $10.62 million, or $1.26 per share, in the quarter that ended April 30 from $416,000, or 6 cents per share, in the same period last year. Revenue rose by 1.5% to $370.17 million from $364.67 million.

Car-Mart beat expectations of earnings of 86 cents per share in the fourth quarter, based on a consensus of four analysts. The company also beat expectations of revenue falling by 5.81% to $343.5 million.

For fiscal 2025, the company reported net income of $17.89 million, or $2.33 per share, up from a loss of $31.43 million, or a loss of $4.92 per share, in fiscal 2024. Revenue declined by 0.2% to $1.390 billion from $1.393 billion.

For the fiscal year, Car-Mart beat analyst projections for earnings of $1.80 per share. The company also beat analyst expectations of revenue falling by 0.94% to $1.38 billion.

In a fourth-quarter earnings report, equity analysts John Hecht and Matthew Hurwit, and equity associates Alexander Villalobos, Ibrahim Kargbo, Yuna Sohn, and Jonathan Weitz, all of Jefferies LLC, attributed the beat to “lower provision, margin expansion and credit improvement… Results show stabilizing conditions and positive impacts of (management’s) strategic actions.”

According to the report, the provision of $92.7 million was 5.4% lower than estimates. Net charge-offs declined by 0.4 percentage points to 6.9% in the fourth quarter from the same period last year, while delinquencies were becoming more stable. Also, 65.7% of the company’s loan portfolio is originated on its new loan origination system. Unit sales per dealership rose, and gross margins of 36.4% were up 0.9 percentage points.
Following are other metrics in the fourth quarter compared to the same period last year.
• Vehicle sales rose by 2.6% to 15,649 from 15,251.
• Stores open was flat at 154.
• Average retail sales price rose by 2.7% to $19,049 from $19,256.
• Active loans rose by 2.4% to 104,682 from 102,252.
• Average loan term rose to 48.3 months from 47.9 months.
• Net finance receivables rose to $1.18 billion from $1.09 billion.
• For fiscal 2025, vehicle sales fell by 1.7% to 57,022 from 57,989 in fiscal 2024.

“Fiscal year 2025 marked a pivotal period of transformation for our business as we successfully laid much of the groundwork for growth,” said Doug Campbell, president and CEO of Car-Mart. “Key accomplishments include expanded capabilities of our loan origination system (LOS), strengthening of our leadership team, and the expansion of gross margins. Our work related to our capital structure is notable and will continue into the new fiscal year. I’m incredibly proud of our team’s dedication and execution.”

Shares of Car-Mart (NASDAQ: CRMT) were trading Thursday at $51.44, down $6.30 or 10.91%. In the past 52 weeks, the stock has ranged between $36.40 and $72.26.