America’s Car-Mart reports Q1 EPS (69c) vs. (15c) last year

Reports revenue $341.3M, consensus $359.21M. President and CEO Doug Campbell said, “Our strategic investments are delivering measurable results. From a consumer demand standpoint, application volume was up over 10%. We deployed and implemented LOS V2 in the beginning of the quarter, which has a more advanced underwriting scorecard, and the enablement of risk-based pricing embedded within the tool. This functionality is now live across our entire footprint, excluding our acquisitions. Additionally, we have started to see the rapid adoption of new functionality within Pay Your Way, our upgraded consumer-facing collections platform. Since the upgrade of Pay Your Way in late June 2025, we have driven a shift from customers paying in-store to paying online, which improves customer convenience and builds the foundation for more consistent payment behavior. Additionally, we have nearly doubled the number of customers enrolled in recurring payments, creating more predictable cash flows, and reducing collection costs. Within the current market environment, we are prudently managing sales to balance affordability, profit margins, and portfolio quality. During the quarter wholesale prices rose resulting in each unit of inventory consuming more of our borrowing capacity, which places some limits on how much inventory we can carry. We are actively working to improve these capacity constraints to better serve the customer demand we are experiencing. We are successfully executing on our focus to improve the quality of our portfolio. During the quarter credit applications from our customers that fall within on our top three customer credit rankings grew by 790 basis points, or 15% during the quarter when compared against fiscal year 2025 average. Nearly 72% of our portfolio is now operating under enhanced underwriting standards. With the recent launch of LOS V2, we continue to sharpen our underwriting capability and are very optimistic about the opportunity to sell more cars to better customers creating a stronger foundation for sustainable returns.”