Car-Mart fiscal 2026 loss exceeds $139 million, sees $29 million Q4 loss

Rogers-based America’s Car-Mart Inc. posted a loss of more than $139 million in fiscal 2026, including an over $29 million loss in the fourth quarter, as the company navigates options following the closure of 60 dealerships, an amendment to its lender agreement and the resignation of its chief financial officer.

The buy here, pay here used car dealer closed 60 dealerships in the second half of fiscal 2026, and its lenders recently agreed to an amendment that provides covenant relief as the company reviews its alternatives. Also, Chief Financial Officer Jonathan Collins will resign July 31 to take a CFO role with Nashville, Tenn.-based footwear retailer Genesco Inc. Car-Mart has promoted Marie Persichetti, senior vice president of capital markets, to chief financial officer. She starts in the role Aug. 1.

Before the markets opened Tuesday (July 14), Car-Mart reported a loss of $29.57 million, or a loss of $3.56 per share, in the quarter that ended April 30 compared to net income of $10.62 million, or earnings of $1.26 per share, in the same period last year. Revenue declined by 18.2% to $302.82 million from $370.17 million.

The company missed the estimate of a loss of 59 cents per share, based on one analyst. It also missed the revenue estimate of $339.99 million, based on a consensus of two analysts.

In a fourth-quarter earnings report, equity analyst John Hecht and equity associates Alexander Villalobos-Morsink, Yuna Sohn, Jonathan Weitz, Aleksander Labosky and Nick Henderson, all of Jefferies, said Car-Mart’s adjusted earnings per share of 48 cents beat expectations when accounting for expenses. The reported loss of $3.56 per share excludes one-time adjustments on restructuring charges, credit loss impact, impairment impacts due to store closures and tax factors.

Analysts said affordability remains a challenge for Car-Mart. They attributed the revenue decline to reduced inventory purchases and store closures. Lower sales volumes eroded margins, and expenses related to strategic actions weighed on earnings. Credit metrics rose year over year but showed signs of stabilizing.

“Our fourth quarter results reflect the actions we took to preserve liquidity, reduce risk, and operate within our capital structure — and you can see that in our financial performance,” President and CEO Doug Campbell said. “The year did not meet our expectations, but this is a liquidity and capital-structure story, not a credit-quality one.”

For the 2026 fiscal year, Car-Mart reported a loss of $139.15 million, or a loss of $16.79 per share, compared to net income of $17.89 million, or $2.33 per share, in the same period last year. Revenue fell by 7.9% to $1.28 billion from $1.39 billion.

As of the end of the 2026 fiscal year, the company has 94 dealerships, down 60 from 154 dealerships at the end of the 2025 fiscal year. Active loans declined by 6.7% to 97,696 from 104,682. Accounts over 30 days past due were 4.1%, up from 3.4%. Average contract term increased by 1.4 months to 49 months, from 48.3 months.

“The customer accounts from our closed stores moved to stronger nearby locations, or to a centralized collections team we built for the first time earlier this year — a way to serve accounts where the nearest store was no longer a practical fit,” Campbell said. “That was the right call for the business. It was also a hard one for the associates affected, and I don’t want that to get lost in the numbers. We’ve worked to handle it the right way, with severance pay and assistance in helping those associates find their next role.”

On June 19, Car-Mart amended its credit agreement with its lenders to allow the company time to review its alternatives.

“It also sets specific milestones we are required to satisfy and meeting them is central to the path forward,” Campbell said. “You’ll also see a going-concern disclosure in our form 10-K. It’s because we have not yet secured the additional financing or alternative transaction needed to resolve our liquidity constraint. An independent review is underway to assess a wide range of alternatives to get this right for the people who depend on us: our creditors, shareholders, customers, vendors and associates.”

Under terms of the amendment, the company must satisfy certain requirements, and the lenders have agreed to waive defaults and events of default under the credit agreement and to provide covenant relief through early September, with the ability to extend to November.

“The recent amendment provides a longer runway to complete a funding restructuring, which will be the key to alleviating volume-related pressures,” the Jefferies analysts said. “We remain on the sidelines given uncertainty in next steps.”

Jefferies analysts maintained a hold rating and a 12-month target price of $14 for Car-Mart shares.

Shares of Car-Mart (NASDAQ: CRMT) were trading Tuesday afternoon at $3.84, up 82 cents or 27.16%. In the past 52 weeks, the stock has ranged from $1.38 to $60.67 per share.

Following are fourth-quarter metrics for fiscal 2026 compared to the same period last year:
• Vehicle sales declined by 27.1% to 11,411 from 15,649.
• Average vehicle sales price increased by 5.7% to $20,138 from $19,049.
• Net charge-offs increased by 0.6 percentage points to 7.5% from 6.9%.
• Gross profit fell 5.2 percentage points to 31.2% from 36.4%.

Following are fiscal 2026 metrics compared to the same period last year:
• Vehicle sales declined by 14.3% to 48,891 from 57,022.
• Average number of vehicles sold per dealership each month fell by 9.7% to 27.9 from 30.9.
• Net finance receivables fell to $1.07 billion from $1.18 billion.