- America's Car-Mart (CRMT, Financial) reported a Q4 diluted EPS increase to $1.26 from $0.06 year-over-year.
- For the full fiscal year 2025, gross margin percentage rose by 200 basis points to 36.7%.
- Despite improved credit metrics, total revenue slightly decreased by 0.2% to $1.4 billion.
America's Car-Mart, Inc. (CRMT) released its Q4 and fiscal year 2025 financial results, showcasing mixed performance. The company posted a remarkable improvement in diluted earnings per share (EPS) for Q4, which rose to $1.26 compared to $0.06 in the same period last year.
In Q4, total revenue increased by 1.5% to $370.2 million, driven in part by a 2.6% increase in sales volumes, totaling 15,649 units. However, for the full fiscal year, total revenue showed a slight decline of 0.2%, amounting to $1.4 billion, with sales volumes decreasing by 1.7% to 57,022 units.
The company's gross margin percentage saw a significant increase, moving up by 200 basis points to 36.7% for the entire year, indicating improved operational efficiencies through optimized vehicle pricing and procurement strategies. Moreover, the active customer count grew by 2.4%, reaching 104,682.
On the financial front, Car-Mart successfully completed a $216 million securitization with a weighted average coupon of 6.27%, reflecting enhanced confidence in its business model. Despite these achievements, the company faced challenges, including a 0.2% dip in overall annual revenue and an increase in delinquencies by 30 basis points to 3.4%.
CEO Doug Campbell highlighted fiscal year 2025 as a pivotal transformation period, emphasizing the expansion of loan origination capabilities and the strengthening of the leadership team as key accomplishments during the year. Car-Mart remains focused on its growth strategy, aiming to expand its differentiated model for long-term success.
