Loading...
•
Jul 31, 2025
Car-Mart Q1 2026 Earnings Report
Car-Mart reported a net loss in Q1 2026 amid a revenue decline and lower vehicle sales, though credit quality and underwriting improved.
Key Takeaways
America’s Car-Mart posted a net loss in Q1 FY26 due to lower sales volume and higher SG&A expenses, despite improved gross margin and strong credit application volume.
Forward Guidance
Management is optimistic about improved portfolio quality and underwriting capabilities, but continues to face challenges in inventory availability and collection metrics.
Positive Outlook
- LOS V2 deployment has enhanced risk-based underwriting.
- Higher credit application volume, especially in top credit tiers.
- 72% of portfolio now under enhanced underwriting standards.
- Increased use of online payment platforms improving efficiency.
- Improved leverage metrics and reduced interest expense.
Challenges Ahead
- Sales volumes declined due to inventory constraints.
- SG&A expenses rose 10.1% driven by tech investments.
- Net charge-offs increased slightly due to frequency/severity.
- Inventory procurement costs were elevated.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...