Car-Mart Q2 2025 Earnings Report

America's Car-Mart reported results for the second quarter of fiscal year 2025, navigating industry and economic pressures through strategic decisions and improvements in underwriting and expense management.

Key Takeaways

America's Car-Mart reported a revenue decline of 3.5% primarily driven by a decrease in retail units sold, partially offset by an increase in interest income and a benefit in service contract revenue. The company saw improvements in gross margins and net charge-offs, and made strategic decisions to strengthen its position for future growth.

Revenue declined by 3.5% due to lower retail units sold, but was partially offset by increased interest income and a service contract revenue benefit.

Gross profit margin improved to 39.4%, including a 290 bps benefit from a service contract accounting change.

Net charge-offs improved to 6.6% of average finance receivables.

SG&A expense increased by 5.7% to $47.4 million, driven by acquisitions and stock compensation increases.