America’s Car-Mart Drops 10% Despite Q4 Earnings Beat

America’s Car-Mart (NASDAQ:CRMT) delivered stronger-than-expected fourth-quarter results, but shares dropped over 10% intra-day today. The used car retailer reported earnings per share of $1.26 for the quarter, beating the consensus estimate of $0.99. Revenue rose 1.5% year-over-year to $370.2 million, surpassing analyst projections of $360.02 million.

President and CEO Doug Campbell described fiscal year 2025 as a “pivotal period of transformation,” highlighting foundational improvements aimed at supporting long-term growth.

In Q4, total retail units sold increased 2.6% to 15,649 vehicles. The average retail sales price declined by $316 year-over-year to $17,240, reflecting the company’s push to enhance vehicle affordability. Gross profit margin rose by 90 basis points to 36.4%.

Net charge-offs as a percentage of average finance receivables improved to 6.9%, down from 7.3% in the prior year, as both loss frequency and severity declined.

For the full year 2025, revenue totaled $1.4 billion, essentially flat year-over-year, while diluted EPS rebounded to $2.33 from a loss of $4.92 in fiscal 2024.