America’s Car-Mart (NASDA:CRMT) saw its sales volumes tumble in the third quarter, a result the company attributed to a deliberate "moderation of capital" as it transitions its financial structure and navigates a difficult credit environment.
The Rogers, Arkansas-based retailer reported total revenue of $286.8 million for the period ended Jan. 31, a 12% decline from the prior year.
Retail units sold plunged 22.1% to 10,275.
Management noted that the drop was not a reflection of cooling demand—which remains high—but rather a strategic choice to limit inventory investment while finalizing a major overhaul of its funding model.
The quarter was defined by significant balance sheet activity aimed at securing long-term liquidity.
The company completed a $300 million term loan and issued $161.3 million in asset-backed notes through the ACM Auto Trust 2025-4.
These moves helped bolster total cash and restricted cash to $237 million.
However, the bottom line was pressured by a $47 million non-cash valuation allowance against deferred tax assets, leading to a widened GAAP loss.
Operationally, Car-Mart is leaning into a leaner footprint.
The company completed its "Phase 2" store consolidations in January, reducing its active dealership count to 136 from 154 a year ago.
While volumes were down, the quality of individual sales showed resilience; gross profit per unit improved to $7,762.
Net charge-offs as a percentage of average receivables stood at 6.5%, reflecting the continued pressure on subprime auto consumers.