CRMT earnings analysis
What we found in CRMT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
America’s Car-Mart reported revenue of $145.751 million and diluted EPS of $(8.28), with gross margin falling to 21.8% from 36.6%. Retail units declined 81.9% to 2,450 and credit losses rose to 9.5% from 6.6%, indicating severe operating and credit deterioration. Liquidity and capital-structure risks remain elevated with $27.5 million of unrestricted cash, $304.1 million of secured debt, and covenant relief extending only through September 11, 2026.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and EPS reported
- Revenue was $145.751 million and diluted EPS was $(8.28); the filing did not provide a comparable consensus estimate or numeric outlook.
- Gross margin deteriorated
- Gross margin declined to 21.8% from 36.6%, a 14.8 percentage-point contraction, as wholesale activity pressured vehicle economics.
- Retail volume collapsed
- Retail units fell 81.9% to 2,450, indicating a substantial contraction in sales volume during the quarter.
- Liquidity remained constrained
- Management reported unrestricted cash of $27.5 million, while covenant relief was extended only through September 11, 2026.
- Controls remained effective
- Disclosure controls were concluded effective as of July 31, 2026, and management reported no material changes in internal control during the quarter.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Floating-rate debt sensitivity
- The company had $304.1 million outstanding under its secured note at July 31, 2026; a 1% increase in interest rates would raise annual interest expense by approximately $3 million.
- Covenant and financing risk
- Unrestricted cash was $27.5 million and covenant relief extended only through September 11, 2026, creating material near-term refinancing and liquidity risk.
- Credit losses increased
- Credit losses increased to 9.5% from 6.6%, signaling worsening portfolio performance and potential pressure on future cash generation.
- Volume and mix pressure
- Gross margin declined to 21.8% from 36.6% while retail units decreased 81.9% to 2,450, leaving profitability exposed to weak sales volume and unfavorable wholesale mix.
- Capital allocation restricted
- The company is restricted from paying dividends or repurchasing shares without lender consent, and no shares were repurchased during the first quarter of fiscal 2027.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-8.28
- Gross margin
- 21.8%
What they said about what is next.
No quantitative revenue or EPS guidance was provided in the 10-Q. The filing states that no material risk-factor changes occurred, and it does not provide a forward operating outlook.
The filing reads worse than the one before it.
What came before.
- 10-K · July 14, 2026
- America's Car-Mart faced significant challenges in fiscal 2026, reporting a total revenue decline of 7.9% to $1.28 billion, a major drop from the previous year partially driven by a significant reduction in dealership…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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