Car-Mart to see Q2 loss, revenue to decline, analysts say

Rogers-based America’s Car-Mart Inc. is expected to post a loss and revenue decline in the second quarter of fiscal 2026 as it works to become profitable through a strategy that looks to include dealership consolidation. At least six dealerships have closed, according to the company’s website.

Before the markets open Dec. 4, the buy here, pay here used car dealer is expected to report a loss of 57 cents per share in the period that ended Oct. 31 compared to earnings of 61 cents per share in the same period last year, based on a consensus of two analysts. Revenue is expected to fall by 4.68% to $331.02 million from $347.26 million.

In an earnings preview, equity analyst John Hecht and equity associates Alexander Villalobos, Yuna Sohn, Jonathan Wetiz and Aleksander Labosky, all of Jefferies, expect the average retail sales price to peak in the second quarter of fiscal 2026, which is “consistent with normal seasonality.”

Analysts said Car-Mart’s gross margin has been improving toward its target range of 37%-38%. Analysts expect “gradual expansion boosted by the impact of tariffs and an increase in car values.” Retail sales are expected to rise moderately year over year, and vehicle sales are projected to increase by 0.5% to about 13,900.

According to internet searches and Car-Mart’s social media sites, Car-Mart has recently closed multiple dealerships.

While the company declined to confirm the closures, Car-Mart’s website is redirecting customers of at least six dealerships to other locations. The Chattanooga, Tenn., dealership is serving customers of the Dalton, Ga., and Hixson, Tenn., dealerships. The Grove, Okla., dealership is serving customers of the Miami, Okla., dealership. The Broken Arrow, Okla., dealership is serving customers of the Tulsa (Okla.) North dealership. The Evansville, Ind., dealership is serving customers of the Henderson, Ky., dealership. The Athens, Ala., dealership is serving customers of the Decatur, Ala., dealership.

Following is a statement from Vickie Judy, chief accounting officer of Car-Mart.

“Car-Mart is in the midst of a multiyear transformation to modernize its underwriting and collections infrastructure, enhance the customer experience, and position the company for long-term, profitable growth. As part of this strategy, we have made operational adjustments over the past two years and continue to evaluate our footprint, cost structure and team alignment. We look forward to discussing our progress in more detail on our second-quarter earnings call in December.”

Jefferies analysts maintained a hold rating on Car-Mart shares and a 12-month target price of $34.00.

Shares of Car-Mart (NASDAQ: CRMT) were trading Wednesday (Nov. 26) at $22.93, down 59 cents or 2.51%. In the past 52 weeks, the stock has ranged between $17.78 and $62.72.