America's Car-Mart Reports Q1 Revenue, EPS Declines Amid Market Challenges

America's Car-Mart reported disappointing Q1 FY2026 results with a net loss of $0.69 per share, significantly worse than the loss of $0.15 per share in the prior year, and revenues of $341.3 million, falling about 1.9% year-over-year and below analysts' expectations. Retail unit sales declined 5.7% due to fewer vehicles available for sale and higher procurement costs, while credit applications rose 10%, indicating sustained demand constrained by capital limitations. The company's operating margin decreased to 3.5% from 5% the prior year, and free cash flow remained negative, though improved from the previous year. Despite these challenges, America's Car-Mart continues to operate 154 dealerships focused on budget-conscious consumers in smaller U.S. cities, maintaining a strategic emphasis on cost control, digital infrastructure upgrades, and improving credit quality. Over the long term, the company has seen solid revenue growth, but recent earnings misses and revenue declines highlight ongoing operational and market challenges. Analysts expect revenue growth to slow to about 7.3% over the next year, reflecting a cautious but positive outlook amid a difficult environment for used vehicle retailers.