America's Car-Mart Reports 8.7% Revenue Growth and Net Income Recovery in Q3 2025

America’s Car-Mart, Inc. reported its financial results for the third quarter and nine months ended January 31, 2025, revealing a revenue increase of 8.7% to $325.7 million for the quarter, compared to $299.6 million in the same period last year. The company’s net income for the quarter was $3.2 million, a significant recovery from a net loss of $8.5 million in the prior year. For the nine-month period, total revenues decreased slightly by 0.8% to $1.02 billion, with net income rising to $7.3 million from a loss of $31.8 million in the previous year.

The company experienced a 13.2% increase in retail units sold during the quarter, attributed to operational improvements and a recovery from prior underperformance. The average retail sales price for vehicles sold was $19,275, reflecting a decrease from $19,455 in the previous year. Interest income also rose by 5.1% to $62.2 million, driven by an increase in average finance receivables and a higher weighted average interest rate of 17.5%. The cost of sales as a percentage of revenue improved to 64.3%, contributing to a gross margin of 35.7%.

In terms of strategic developments, America’s Car-Mart completed the acquisition of Texas Auto Center in June 2024, which added two dealership locations and increased goodwill by $8.5 million. The company has also focused on enhancing vehicle quality and operational efficiencies through a partnership with an automotive services provider, which is expected to improve inventory supply chain processes. As of January 31, 2025, the company operated 154 dealerships, maintaining its presence primarily in small cities across the South-Central United States.

Operationally, the company reported a decrease in accounts over 30 days past due to improved collection efforts, with 3.7% of finance receivables in this category compared to 3.3% a year earlier. The allowance for credit losses was 24.31% of finance receivables, reflecting a slight improvement from 25.74% in the previous year. The company’s employee headcount has increased as it continues to invest in training and development to support its growth strategy.

Looking ahead, America’s Car-Mart anticipates continued revenue growth driven by its focus on improving vehicle quality and customer experience. The company plans to leverage its new loan origination system to enhance credit decision-making and collection processes. However, it remains cautious about macroeconomic factors, including inflation and customer affordability, which could impact future performance. The company has also extended its revolving credit facility to March 2027, providing additional liquidity to support its operations and growth initiatives.