America’s Car-Mart, Inc. ( (CRMT) ) has released its Q4 earnings. Here is a breakdown of the information America’s Car-Mart, Inc. presented to its investors.
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America’s Car-Mart, Inc. is a prominent automotive retailer in the United States, specializing in the ‘Integrated Auto Sales and Finance’ segment of the used car market, with a focus on superior customer service and strong personal relationships.
In its latest earnings report for the fourth quarter and fiscal year 2025, America’s Car-Mart announced a slight increase in total revenue for the quarter, reaching $370.2 million, alongside a notable improvement in diluted earnings per share from $0.06 to $1.26. The company also reported a full-year revenue of $1.4 billion, a marginal decrease compared to the previous year.
Key financial highlights include a 2.6% increase in sales volumes for the quarter, an improvement in gross margin percentage to 36.4%, and a reduction in net charge-offs as a percentage of average finance receivables to 6.9%. The company also saw an increase in interest income and a decrease in interest expense, reflecting strategic financial management. Additionally, the allowance for credit losses showed improvement, and the active customer count grew by 2.4%.
Despite facing a dynamic industry environment, America’s Car-Mart’s management remains optimistic about the future, focusing on expanding its differentiated model and enhancing its loan origination system. The company aims to position itself for profitable, long-term success, leveraging its strengthened leadership team and improved gross margins.
Looking ahead, America’s Car-Mart plans to continue its growth trajectory by exploring new financing options and expanding its capabilities to serve more consumers effectively. The company’s strategic initiatives and focus on customer engagement are expected to support its long-term objectives.