America’s Car-Mart, Inc. reported financial results for the first quarter ended July 31, 2026, revealing a significant decline in sales volume driven by capital constraints. Retail units sold decreased 81.9% to 2,450 units compared to the prior year's quarter. Total revenue for the quarter was $145.8 million, a decrease of 57.3% year-over-year. The company attributes this drop to a decision to manage capital and inventory at minimal levels, which declined 68.7% to $35.2 million at July 31, 2026, from $112.5 million a year earlier.
Despite the volume decline, the average retail sales price of vehicles increased 7.0% to $18,530, as the company prioritized sales of select inventory to higher credit quality customers. Additionally, third-party wholesale sales rose to $21.0 million from $10.8 million, reflecting a change in disposition strategy to accelerate cash conversion.
Gross profit margin as a percentage of sales was 21.8%, compared to 36.6% in the prior year quarter. The decline was driven by lower margins on wholesale sales and fixed costs spread over a reduced retail sales base. Selling, general, and administrative (SG&A) expenses totaled $51.6 million, or 57.3% of sales, which included approximately $13.7 million in non-recurring charges related to a capital structure strategic review.
Credit performance also weakened during the quarter. Net charge-offs were 9.5% of average finance receivables against 6.6% a year ago. Accounts over 30 days past due were 4.6% compared to 4.1% a year ago. The company attributes the increase in charge-offs to the contraction of the portfolio, continued fuel and cost-of-living pressure on customers, and the transition of a small portion of the book to centralized collections.
The company’s leverage and liquidity metrics show a reduction in total debt to $623.9 million, a decrease of $151.3 million from the prior year. However, unrestricted cash, available to fund operations, was $27.5 million at July 31, 2026. The company entered into an amendment to its Credit and Guaranty Agreement on June 19, 2026, providing covenant relief and a defined runway to evaluate financing and strategic alternatives. The scheduled termination date of this amendment was extended through September 11, 2026, to allow for additional time to evaluate options.
