America's Car-Mart Swings to $76.8M Net Loss in Q3 as Revenue Falls 12%

America's Car-Mart, Inc. (NASDAQ: CRMT), a buy-here-pay-here automotive retailer, swung to a net loss of $76.8 million in the third quarter of fiscal 2026, compared to net income of $3.1 million in the same period a year earlier. The loss translated to $9.25 per diluted share, down from earnings of $0.37 per share in the prior-year quarter. Read more earnings reports.

Total revenue for the three months ending January 31, 2026 fell 12% to $286.8 million from $325.7 million in the year-ago quarter. For the nine-month period, total revenue declined 4.1% to $978.7 million from $1.02 billion.

Net revenue — which excludes interest income and other adjustments — dropped 15.5% to $222.6 million in the quarter from $263.5 million a year earlier. Interest income from finance receivables, the company's core business line, declined 20.4% to $181.8 million from $228.5 million.

Cost of goods sold fell to $142.9 million from $169.4 million in the prior-year quarter, a 15.7% decline. Selling, general and administrative expenses rose 10.9% to $51.5 million from $46.5 million.

The company reported an income tax expense of $40.0 million for the quarter, a sharp increase from $1.2 million in the year-ago period. For the nine-month period, income tax expense totaled $33.3 million compared to $3.0 million in the prior year.

Total assets stood at $1.63 billion as of January 31, 2026, up slightly from $1.61 billion at the end of fiscal 2025. Cash and cash equivalents surged to $117.9 million from $9.8 million at the prior fiscal year-end, while inventory declined to $101.2 million from $112.2 million.

Total liabilities increased to $1.15 billion from $1.04 billion at the fiscal year-end. Stockholders' equity fell to $479.3 million from $569.4 million, driven by retained earnings declining to $567.3 million from $672.3 million.

For the nine-month period, cash used in operations totaled $2.8 million, an improvement from $68.0 million used in the prior-year period. Cash from financing activities contributed $116.6 million, compared to $110.5 million a year earlier.

The company had 8.3 million shares outstanding as of January 31, 2026, compared to 8.3 million at the end of fiscal 2025.