Car-Mart Q2 2025 Earnings Report
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.
Car-Mart
Car-Mart
Forward Guidance
Car-Mart is well positioned for future growth and profitability.