America’s Car-Mart (CRMT) Q2 2026 earnings summary

Executive summary

• Closed a $300 million term loan, repaid revolving credit, and increased total cash to $251 million from $124.5 million at fiscal year start, improving capital flexibility.

• Reported a net loss of $22.5 million for the quarter and $28.2 million for the six months, driven by non-cash and one-time charges, including $20 million in reserve adjustments and strategic repositioning.

• Credit applications rose 14.6% year-over-year, with strong demand across all credit ranks despite lower inventory levels.

• Five underperforming stores closed post-quarter, consolidating customers and inventory into higher-performing locations.

• Interest expense decreased 13.1% year-over-year due to securitization improvements and favorable rates.

Financial highlights

• Total revenue increased 0.8% to $350.2 million for the quarter; adjusted revenue up 4.8% year-over-year, excluding prior year’s one-time benefit.

• Gross margin percentage decreased by 190 bps to 37.5% due to last year’s one-time benefit; adjusted margin improved by 100 bps year-over-year.

• SG&A expenses totaled $57.2 million for the quarter, including $3.5 million in one-time charges; adjusted SG&A as a percentage of sales was 18.8%.

• Net charge-offs as a percentage of average finance receivables increased to 7.0% from 6.6% year-over-year.

• Loss per share was $2.71 for the quarter, or $0.79 adjusted, and $(3.41) for the six months.

Outlook and guidance

• Plans to execute additional ABS transactions and add a revolving warehouse facility in the second half of the year.

• SG&A cost control initiatives target reducing SG&A to approximately 16.5% of sales over time, with $31.4 million in expected savings from multi-phase plans.

• Inventory rebuild targeted for Q3 to capitalize on expected elevated tax refunds in Q4.

• Management expects inventory normalization and ongoing cost initiatives to support a return to positive GAAP earnings.

• Liquidity is expected to be sufficient for growth and capital needs, with access to securitized borrowings and other financing.