First Quarter Fiscal Year 2027
Filed Sep 9, 2026America's Car-Mart Reports First Quarter Fiscal Year 2027 Results
Revenue declined 57.3%, retail units sold declined 81.9%, gross profit percentage fell to 21.8%, and net loss widened to $ (68,980 ). Liquidity constraints restricted inventory purchases and originations while credit losses and capital-structure uncertainty remained elevated.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $ 145,751 | – | (57.3 ) % |
| SalesGAAP | $ 89,902 | – | (67.5 ) % |
| Interest incomeGAAP | $ 55,849 | – | (14.2 ) % |
| Cost of salesGAAP | $ 70,266 | – | (59.9 ) % |
| Total gross profit percentageGAAP | 21.8 % | – | (1,480 ) bps |
| Total gross profit per retail unit soldother | $ 8,015 | – | 7.5 % |
| Selling, general and administrativeGAAP | $ 51,551 | – | 0.3 % |
| Adjusted selling, general and administrativenon-GAAP | 37,890 | – | – |
| Provision for credit lossesGAAP | $ 71,559 | – | (30.5 ) % |
| Interest expenseGAAP | $ 19,226 | – | 12.8 % |
| Depreciation and amortizationGAAP | $ 1,802 | – | (15.8 ) % |
| Loss on disposal of property and equipmentGAAP | $ 178 | – | 1,877.8 |
| Loss before taxesGAAP | $ (68,831 ) | – | (76.6 ) |
| Provision for (benefit of) income taxesGAAP | 149 | – | – |
| Net lossGAAP | $ (68,980 ) | – | (76.7 ) |
| Net loss attributable to common shareholdersGAAP | $ (68,990 ) | – | – |
| Basic loss per shareGAAP | $ (8.28 ) | – | – |
| Diluted loss per shareGAAP | $ (8.28 ) | – | – |
| Adjusted loss per sharenon-GAAP | $ (6.65 ) | – | – |
| Retail units soldother | 2,450 | – | (81.9 ) % |
| Average number of dealerships in operationother | 94 | – | (39.0 ) % |
| Average retail units sold per dealership per monthother | 8.7 | – | (70.4 ) % |
| Average retail sales price, excluding ancillary productsother | $ 18,530 | – | 7.0 % |
| Same dealership revenue growthother | (47.5 ) % | – | – |
| Net charge-offs as a percent of average finance receivablesother | 9.5 % | – | 290 bps |
| Total collected (principal, interest and late fees), in thousandsother | $ 164,377 | – | (10.5 ) % |
| Average total collected per active customer per monthother | $ 594 | – | 1.5 % |
| Average percentage of finance receivables-current (excl. 1-2 day)other | 69.0 % | – | (1,180 ) bps |
| Average down-payment percentageother | 5.4 % | – | 50 bps |
| Accounts over 30 days past dueother | 4.6 % | – | 50 bps |
| Active customer countother | 85,753 | – | (18.1 ) % |
| Principal balance of finance receivables (in thousands)other | $ 1,190,950 | – | (21.4 ) % |
| Weighted average total contract termother | 49.3 | – | 2.0 % |
| Net cash provided by (used in) operating activitiesGAAP | 80,069 | – | – |
| Net cash provided by (used in) investing activitiesGAAP | 791 | – | – |
| Net cash provided by (used in) financing activitiesGAAP | (102,529 ) | – | – |
| Decrease in cash, cash equivalents, and restricted cashGAAP | $ (21,669 ) | – | – |
Capital returns
- Purchase of common stock: (25 ) compared to (71 ) in the prior year period.
- Dividend payments: (10 ) compared to (10 ) in the prior year period.
- Dividends on subsidiary preferred stock: (10 ) compared to (10 ) in the prior year period.
What drove it
- The Company limited inventory purchases and finance receivable originations because of liquidity constraints.
- Retail unit volume was affected by the consolidation of 60 dealership locations during fiscal 2026, reducing dealership count from 154 to 94.
- Average retail sales price, excluding ancillary products, increased to $ 18,530 as the Company prioritized select inventory sales to higher credit quality customers.
- Third-party wholesale sales rose to $21.0 million from $10.8 million after the Company began wholesaling substantially all repossessed vehicles in late May to accelerate cash conversion.
- The centralized collections implementation was completed during the quarter alongside dealership consolidations.
- Finance receivable collections were 108,810, while finance receivable originations were (40,976 ).
Concerns
- The Company disclosed substantial doubt about its ability to continue as a going concern among its forward-looking risk factors.
- The amendment to the Credit and Guaranty Agreement was extended through September 11, 2026.
- The Company cannot assure that its strategic and financing review will produce a favorable transaction or that it can secure additional financing on acceptable terms, or at all.
- Net charge-offs as a percent of average finance receivables increased to 9.5 % from 6.6 %.
- Accounts over 30 days past due increased to 4.6 % from 4.1 %.
- Third-party wholesale sales represented 23.4% of total sales and generated an aggregate loss of $4.7 million.
- Current-quarter SG&A included $9.6 million of professional fees related primarily to the capital structure strategic review and $4.1 million of retention award expense.
What to watch
- Whether the Company obtains financing, further covenant relief, forbearance, or another strategic outcome after the September 11, 2026 extension date.
- Unrestricted cash, which was $27.5 million at July 31, 2026, compared to $47.0 million at April 30, 2026.
- Inventory availability and the Company’s capacity to resume vehicle purchases and finance receivable originations.
- Credit performance following completion of the centralized collections transition, including net charge-offs and accounts over 30 days past due.
- The effect of wholesaling substantially all repossessed vehicles on sales mix, gross profit percentage, and cash conversion.
Balance sheet and cash flow
- Cash and cash equivalents: $ 27,532 at July 31, 2026, compared to $ 46,962 at April 30, 2026 and $ 9,666 at July 31, 2025.
- Restricted cash: $ 82,445 at July 31, 2026, compared to $ 84,684 at April 30, 2026 and $ 111,761 at July 31, 2025.
- Total cash, cash equivalents, and restricted cash: $ 109,977 at July 31, 2026, compared to $ 121,427 at July 31, 2025.
- Finance receivables, net: $ 909,797 at July 31, 2026, compared to $ 1,079,167 at April 30, 2026 and $ 1,183,452 at July 31, 2025.
- Inventory: $ 35,194 at July 31, 2026, compared to $ 54,074 at April 30, 2026 and $ 112,451 at July 31, 2025.
- Senior Secured Notes Payable, net: $ 266,205 at July 31, 2026, compared to $ 263,681 at April 30, 2026.
- Non-recourse notes payable, net: $ 357,655 at July 31, 2026, compared to $ 458,685 at April 30, 2026 and $ 610,750 at July 31, 2025.
- Total debt: $ 623,860 at July 31, 2026, compared to $ 775,144 at July 31, 2025.
- Debt, net of total cash: $ 513,883 at July 31, 2026, compared to $ 653,717 at July 31, 2025.
- Ratio of debt to finance receivables: 52.4 % at July 31, 2026, compared to 51.1 % at July 31, 2025.
- Ratio of debt, net of total cash, to finance receivables: 43.1 % at July 31, 2026, compared to 43.1 % at July 31, 2025.
- Allowance for credit losses: (276,952 ) at July 31, 2026, compared to (329,901 ) at April 30, 2026 and (326,070 ) at July 31, 2025.
- Allowance as % of principal balance net of deferred revenue: 24.74 % at July 31, 2026, compared to 25.15 % at April 30, 2026 and 23.35 % at July 31, 2025.
- Total assets: $ 1,206,139 at July 31, 2026, compared to $ 1,416,840 at April 30, 2026 and $ 1,607,974 at July 31, 2025.
- Total equity: $ 376,480 at July 31, 2026, compared to $ 445,656 at April 30, 2026 and $ 564,931 at July 31, 2025.
- Book value per outstanding share: $ 45.20 at July 31, 2026, compared to $ 53.71 at April 30, 2026 and $ 68.30 at July 31, 2025.
Analysis
America’s Car-Mart reported a sharply weaker first quarter of fiscal year 2027 as capital constraints reduced its ability to buy inventory and originate finance receivables. Total revenue was $ 145,751, down (57.3 ) %, as sales fell $ 89,902 from $ 276,240 and retail units sold declined to 2,450 from 13,568. The Company attributed the unit decline to minimal inventory levels, dealership consolidations, and reduced capacity to purchase vehicles, while stating that application volume was constrained by vehicles available for sale rather than declining customer demand.
Sales mix shifted materially toward wholesale disposition of repossessed vehicles. Third-party wholesale sales rose to $21.0 million from $10.8 million as the Company began wholesaling substantially all repossessed vehicles in late May to accelerate cash conversion. This channel carried lower margins and represented 23.4% of total sales, contributing an aggregate loss of $4.7 million. Total gross profit percentage fell to 21.8 % from 36.6 %, although total gross profit per retail unit sold increased to $ 8,015 from $ 7,456. The average retail sales price, excluding ancillary products, increased to $ 18,530 from $ 17,319.
Credit and earnings performance remained under pressure. Net charge-offs as a percent of average finance receivables rose to 9.5 % from 6.6 %, while accounts over 30 days past due were 4.6 % compared with 4.1 %. The Company cited portfolio contraction, fuel and cost-of-living pressure on customers, and disruption associated with the centralized collections transition. The provision for credit losses was $ 71,559, and net loss expanded to $ (68,980 ) from $ (5,736 ). SG&A was essentially unchanged at $ 51,551, but included retention bonus expense of 4,083 and professional fees related to capital restructuring of 9,578; adjusted selling, general and administrative was 37,890.
Cash generation reflected portfolio runoff and inventory reductions. Net cash provided by operating activities was 80,069, with finance receivable collections of 108,810 and inventory of 41,514 in the cash-flow statement. Financing activities used (102,529 ), including non-recourse notes payable, net of (101,861 ). Cash and cash equivalents were $ 27,532 and restricted cash was $ 82,445 at July 31, 2026. Total debt was $ 623,860, while debt, net of total cash, was $ 513,883.
The capital structure is the central issue. The Company was in compliance with applicable covenants as of the July 31, 2026 testing date and as of the release date, but the scheduled termination of the June 19 amendment was extended through September 11, 2026. Management continues to evaluate financing and strategic alternatives and expressly stated that it cannot assure an outcome favorable to the Company or its stockholders, or additional financing on acceptable terms. The release provided no financial outlook and the Company will not host a conference call.
Management, verbatim
Our first quarter results reflect the capital constraints that have defined our results over the last several quarters.
Doug Campbell, President and CEO
This is a capital structure story, not a demand story.
Doug Campbell, President and CEO
Resolving our capital structure remains our first priority.
Doug Campbell, President and CEO
Not in the filing
stated, not guessed- Forward financial guidance for revenue, gross margin, operating expenses, tax rate, earnings, capital expenditures, or cash flow was not provided.
- Previous-period outlook was not provided.
- GAAP gross profit dollars were not reported as a standalone line item.
- GAAP operating income or loss was not reported as a standalone line item.
- Non-GAAP operating income or loss was not reported.
- Free cash flow was not reported.
- GAAP tax rate was not reported.
- A quarter-over-quarter comparison was not reported for total revenue, sales, interest income, gross profit percentage, SG&A, provision for credit losses, interest expense, net loss, EPS, or operating cash flow.
- Reportable segment revenue was not provided; the Company describes its business as focused exclusively on the Integrated Auto Sales and Finance segment.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.