America's Car-Mart announced financial results for the fourth quarter and full year ended April 30, 2026. Full-year total revenue was $1.2815 billion, down 7.9% from the previous year. Interest income increased 3.7% to $253.7 million. Sales volume decreased 14.3% to 48,891 units, while average retail price increased 3.4% to $20,064. Gross margin was 35.4%, while gross profit increased 1% to $7,442 per unit.
In the fourth quarter, retail sales fell 27.1% to 11,411 units. Total revenue decreased 18.2% to $302.8 million. Gross profit margin decreased to 31.2%. SG&A expenses amounted to $47.6 million, of which $4 million consisted of restructuring expenses. The company reduced the number of dealerships from 154 to 94 and recorded a non-cash impairment of $11 million accordingly.
Looking at credit performance, the net charge-off rate increased to 7.5% (6.9% in the prior year). This increase was partly due to the shrinkage in financing receivables. Collections decreased by 2.8% to $185.7 million. While the rate of accounts 30 days past due was 4.1% (3.4% in the previous year), 66.6% of customers were in the highest credit bracket. The loan provision was at 25.15% of financing receivables.
The company reduced its total debt by $54.4 million to $722.4 million. The net debt-financing receivables ratio was at the lowest level in three years at 41.8%. Cash and cash equivalents were $131.6 million, while unrestricted cash increased to $47 million.
On June 19, 2026, the company obtained a privileged period by amending the loan agreement. However, there are serious doubts about the continuity of the company if additional financing cannot be provided. An independent committee is evaluating strategic and financing alternatives. CEO Doug Campbell emphasized that this is a liquidity and capital structure issue, not a credit quality issue.
The company recorded a 15.1% increase in interest expenses and $31.1 million in taxes. The tax provision occurred due to impairment of deferred tax assets. The company aims to improve its financing structure through a warehouse facility or recapitalization in the coming period.