5 Insightful Analyst Questions From America's Car-Mart’s Q2 Earnings Call

September 11, 2025 at 01:32 AM EDT

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America’s Car-Mart delivered second-quarter results that fell short of Wall Street’s expectations, prompting a significant negative market reaction. Management attributed the underperformance primarily to lower unit sales driven by deliberate volume pacing, as tariffs and higher wholesale vehicle prices pressured inventory procurement. CEO Douglas Campbell acknowledged that the company faced a $500 per vehicle increase in procurement costs, compounding capital constraints under its current financing facility. He described the quarter as one of "steady progress on the fundamentals we control," though he was clear about the challenges created by external cost pressures and limited inventory capacity.

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America's Car-Mart (CRMT) Q2 CY2025 Highlights:

Revenue: $341.3 million vs analyst estimates of $359.2 million (1.5% year-on-year decline, 5% miss)
Adjusted EPS: -$0.69 vs analyst estimates of $0.90 (significant miss)
Adjusted EBITDA: $11.79 million vs analyst estimates of $28.19 million (3.5% margin, 58.2% miss)
Operating Margin: 2.8%, down from 5% in the same quarter last year
Locations: 154 at quarter end, down from 155 in the same quarter last year
Same-Store Sales fell 4.1% year on year (-8.6% in the same quarter last year)
Market Capitalization: $284.6 million

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From America's Car-Mart’s Q2 Earnings Call

Kyle Joseph (Stephens) asked about the persistence of increased procurement costs and whether recent trends have moderated. CEO Douglas Campbell indicated pricing had stabilized but remained elevated, and demand trends stayed strong.
Kyle Joseph (Stephens) questioned how quickly credit metrics would stabilize with the new LOS V2 system. Campbell replied that seasonal fluctuations are expected but performance is now within the normal operating range.
Kyle Joseph (Stephens) sought clarity on SG&A expense cadence. CFO Jonathan Collins confirmed that about half of the recent growth should unwind in the second half as technology investments deliver savings.
John Hecht (Jefferies) inquired if tariff-driven cost increases would be temporary or persistent. Campbell anticipated some seasonal price relief later in the year but noted industry-wide pressures remain.
John Hecht (Jefferies) asked what signs would indicate an easing of current headwinds. Campbell pointed to continued high-quality application flow and the need for inventory financing flexibility to fully capitalize on demand.

Catalysts in Upcoming Quarters

In the quarters ahead, the StockStory team will be monitoring (1) progress in expanding inventory financing capacity and its impact on sales volumes, (2) the pace of SG&A reductions as digital platforms scale, and (3) the continued shift in customer mix toward higher credit quality. The evolution of procurement costs and the competitive environment for used vehicles will also be important markers of future performance.

America's Car-Mart currently trades at $34.77, down from $44.52 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).

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5 Insightful Analyst Questions From America's Car-Mart’s Q2 Earnings Call

America's Car-Mart (CRMT) Q2 CY2025 Highlights:

Our Top 5 Analyst Questions From America's Car-Mart’s Q2 Earnings Call

Catalysts in Upcoming Quarters

High-Quality Stocks for All Market Conditions

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