In the third quarter of fiscal year 2025, America's Car-Mart demonstrated significant financial growth and strategic advancements. The company reported a notable increase in total revenue and sales volumes while enhancing its operational efficiency and customer service.

The company's performance was highlighted by an 8.7% increase in total revenue to $325.7 million, driven primarily by a 13.2% rise in sales volumes to 13,198 units. Interest income also saw a favorable increase of 5.1%, contributing positively to the overall financial results. Additionally, gross profit margins improved by 150 basis points to 35.7%, reflecting better vehicle procurement and disposal practices. These improvements were partially offset by increased claims for accident protection plans due to recent weather events.

A key factor in Car-Mart's success has been its enhanced underwriting standards and loan origination system (LOS). The allowance for credit losses improved to 24.31%, down from 24.72% sequentially, indicating stronger contract performance. Net charge-offs as a percentage of average finance receivables also decreased to 6.1% from 6.8%, showcasing improved credit quality. The company successfully completed a $200 million term securitization transaction, which further strengthened its capital position and provided a competitive funding structure.

Beyond financial metrics, Car-Mart made significant strides in liquidity and leverage management. On February 28, 2025, the company amended its asset-based lending revolving credit facility, increasing the total commitment to $350 million and extending the maturity to March 2027. This move enhances the company's financial flexibility and supports future development initiatives. President and CEO Doug Campbell emphasized the importance of these enhancements, noting that they provide a solid foundation for continued growth and innovation.

Car-Mart's achievements underscore its commitment to delivering value to customers and stakeholders. By focusing on improving operational and technological capabilities, the company is well-positioned to navigate current market challenges and capitalize on emerging opportunities. The positive trends in sales, profitability, and credit performance highlight the effectiveness of Car-Mart's strategies and set the stage for sustained success in the coming quarters. The company's dedication to superior customer service and building strong personal relationships remains a cornerstone of its business model, fostering trust and loyalty in the communities it serves.