CRMT Stock Rockets: America’s Car-Mart Q4 EPS Explodes 20x While Revenue Hits Speed Bump

Wall Street''s latest underdog story? America’s Car-Mart just pulled a rabbit—or rather, a 20x EPS grenade—out of its hat. But before popping champagne, let’s peek under the hood.

Earnings on Steroids

CRMT’s Q4 earnings per share didn’t just grow—they went full moonshot, multiplying over twentyfold. That’s the kind of number that makes growth investors drool… and short sellers sweat.

Revenue Reality Check

Meanwhile, top-line growth decelerated like a used sedan climbing a mountain pass. Because in today’s market, why settle for consistent performance when you can have chaotic volatility?

The Bottom Line

Another quarter proving that in finance, as in car sales, sometimes the flashiest numbers come with the finest print. Buyers—and shareholders—beware.

TLDR

• CRMT Q4 EPS Jumps to $1.26 as Margins Expand Despite Weak Revenue Growth
• Car-Mart Boosts Profits With Better Pricing and Credit Quality, Stock Dips 1.66%
• Vehicle Sales Decline for Year, But Strong Margins Lift CRMT Earnings to $2.33 EPS
• Improved Credit Standards, Securitization Deal Strengthen Car-Mart’s Liquidity Position
• Operational Efficiency and Lower Net Debt Help Offset Soft Same-Store Sales at CRMT

America’s Car-Mart Inc. (CRMT) shares closed at $49.17 on June 13, down 1.66% following its Q4 earnings release. Despite significant earnings per share growth, revenue growth remained limited during the quarter. The stock showed intraday volatility, peaking at $50.35 before retreating in afternoon trading.

America’s Car-Mart Inc. (CRMT)

Q4 EPS Strengthens as Margins Expand

CRMT posted diluted earnings per share of $1.26 in Q4, a sharp increase from $0.06 in the same quarter last year. This improvement came as the company reported higher interest income and an expanded gross profit margin of 36.4%. The average vehicle sales price fell slightly to $17,240, helping improve affordability and unit sales.

Total revenue grew by just 1.5% to $370.2 million, driven by a 2.6% increase in retail units sold. Meanwhile, interest income ROSE by 4.2% to support top-line gains. Despite the moderate revenue expansion, Car-Mart optimized its pricing and procurement strategies to boost profit margins.

Gross profit per unit increased by 1.1% to $7,209, aided by stronger operational efficiency. Charge-offs as a percentage of average finance receivables improved to 6.9%. However, delinquencies above 30 days rose to 3.4%, showing a slight uptick in credit risk.

Annual Results Mixed Amid Lower Sales

For the full year ending April 30, 2025, total revenue dropped slightly by 0.2% to $1.4 billion as unit sales declined. The company sold 57,022 vehicles, down 1.7% from the prior year, despite improving collections and finance performance. Interest income rose 5% while collections increased 3.7% to $714.1 million.

Full-year earnings per share reached $2.33, compared to a loss of $4.92 the year before. Gross margin improved to 36.7%, reflecting tighter vehicle acquisition and disposal management. Same-store revenue, however, fell 5%, highlighting challenges in demand across some locations.

The average gross profit per vehicle rose by 6.2% to $7,368. Average down payments decreased slightly, while loan terms extended modestly. Active customer count rose by 2.4%, bringing the total to 104,682 customers.

Credit Quality Improves as Liquidity Strengthens

Allowance for credit losses improved to 23.25%, reflecting higher-quality contracts under new underwriting standards and better portfolio performance. Net charge-offs also declined year-over-year, supported by improved severity and frequency metrics. Meanwhile, collections per customer increased slightly to $612 monthly.

Leverage improved with debt-to-finance receivables declining to 51.5% and debt net of cash falling to 43.2%. The company also reduced its total net debt by $7.8 million. Liquidity received a further boost from a $216 million securitization closed in May.

The company continues to enhance its capital structure by diversifying financing sources, including exploring long-term debt and warehouse credit options. Operational investments in technology and talent raised SG&A expenses to $48.3 million. However, CRMT remains focused on expanding its model and improving customer access to vehicle financing.