America's Car-Mart, Inc. (CRMT) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

the fiscal year ended April 30, 2025, and our current and quarterly reports furnished to or filed with the Securities Exchange Commission on Forms 8K and 10Q. As a note, the comparisons that we will make today will be the second quarter of fiscal 2026 versus the second quarter of fiscal 2025, unless otherwise stated, and we will make several references to our supplemental materials posted on our website. Doug, I'll turn it over to you now. Thank you, Jonathan. And thank you, everyone, for your interest in America's Car Mart and for joining to hear more about our quarterly results. Let me start by addressing what's in the numbers and what the numbers don't fully capture. Our reported results reflect a net loss of $22.5 million, which includes approximately $20 million in non-cash reserve adjustments and one-time charges related to the strategic actions we're taking to reposition this business. More details are on page four in the supplemental presentation on this. These are deliberate investments in our future, and the underlying trends in our business are moving in the right direction. Let me highlight several developments from the quarter that are notable. First, consumer demand remains strong. Credit applications grew substantially year over year, clear evidence that despite economic uncertainty, the need for affordable, reliable transportation is robust, and CarMart remains a trusted solution for working families. The effects in the broader wholesale market have subsided since the update in Q1, and while elevated relative to prior year, continue to decline in alignment with what we would see seasonally. In October, we closed a transformative $300 million term loan that removes the capital constraints that have limited our flexibility we referenced last quarter. Fo...