Car-Mart Reports 2% Revenue Drop in Q1

America's Car-Mart (NASDAQ:CRMT), a leading used vehicle retailer and finance company focused on smaller U.S. cities, announced its Q1 FY2026 results on September 4, 2025. The company reported GAAP revenue of $341.3 million, which fell 1.9% year over year and came in below analyst expectations. Retail unit sales dropped 5.7%, and net loss per diluted share (GAAP) widened to ($0.69) from ($0.15) in the prior-year period. Despite better gross profit margins, the quarter marked a setback compared to last quarter’s optimism, reflecting ongoing challenges in inventory, credit losses, and operating costs.America's Car-Mart operates 154 dealerships across the southern and central U.S, specializing in selling older model used cars with in-house financing geared toward customers who often have limited access to traditional credit. Its business depends on vehicle sales volume, margins on each unit, and successful collection of loan payments. It also manages all aspects of dealership operations, including inventory procurement, sales, underwriting, and collections.Recently, the company's strategy has focused on tight cost control, enhancing technology tools, and improving portfolio quality. Key success factors include optimizing collections, increasing credit quality, managing inventory given supply and price constraints, and upgrading digital infrastructure to drive collections and efficiency.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool