America’s Car-Mart, Inc. reported financial results for the second quarter, ending October 31, 2025. Key highlights include a total revenue of $350.2 million, up 0.8% from the previous year. Interest income increased by 3.9%, and credit applications were up by 14.6%. Gross margin percentage decreased to 37.5%, and net charge-offs were at 7.0%.

The company successfully closed a $300 million term loan and repaid its revolving line of credit balance, enhancing capital structure. Additional strategic actions include closing underperforming stores, transitioning customers to higher-performing locations, and implementing a new underwriting platform. Early results show improved credit losses from contracts originated under the new system.

Recent actions taken by the company led to a decrease in inventory dollars, despite fewer units being available for sale. Gross profit margin as a percentage of sales was at 37.5%, down from 39.4% the previous year. SG&A expenses totaled $57.2 million, with plans to reduce SG&A as a percentage of sales to approximately 16.5%.

The company continues to focus on optimizing cost structures, strengthening credit performance, and completing the capital structure transformation. Recent store consolidations and ongoing cost initiatives are expected to drive improvement and position the company for a return to positive GAAP earnings. The company remains committed to maximizing long-term shareholder value through strategic opportunities.

Read more at GlobeNewswire.: America’s Car-Mart Reports Second Quarter Fiscal Year 2026