America’s CAR-MART Inc (NASDAQ:CRMT) stock rose 0.14% (As on June 13, 11:22:23 AM UTC-4, Source: Google Finance) after the company reported better-than-expected fourth quarter results. Gross profit margin as a percentage of sales reached 36.4% vs. 35.5%, reflecting a 90-basis point improvement year-over-year. This increase was primarily driven by continued optimization in vehicle pricing, procurement, and disposal strategies. Net charge-offs as a percentage of average finance receivables improved to 6.9%, compared to 7.3%. The allowance for credit losses as a percentage of finance receivables, net of deferred revenue and pending accident protection plan claims, improved to 23.25% at April 30, 2025, from 24.31% at January 31, 2025. Debt to finance receivables and debt, net of cash, to finance receivables (non-GAAP)¹ were 51.5% and 43.2%, compared to 52.6% and 46.0%, respectively, at April 30, 2024. During the fiscal year ended April 30, 2025, the Company grew finance receivables by $73.8 million, increased inventory by $4.8 million, and invested in acquisition and fixed assets of $11.4 million, with a $7.8 million decrease in debt, net of cash.

Moreover, for the quarter ending April 30, 2025, the average down payment was 6.2% of the average retail sales price, a slight decrease from 6.5% in the same quarter of 2024. The average loan term was 44.4 months, representing an increase of 0.4 months compared to the prior year’s quarter, but a decrease of 0.2 months from the previous quarter.

CRMT in the fourth quarter of FY25 has reported the adjusted earnings per share of $1.26, beating the analysts’ estimates for the adjusted earnings per share of 99 cents. The company had reported the adjusted revenue growth of 1.5 percent to $370.2 million in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $360.02 million. This is driven by an increase in retail units sold, and a 4.2% increase in interest income. Sales volumes increased by 2.6%, to 15,649 units vs. 15,251 units. The average vehicle sales price decreased $316 year-over-year and $70 sequentially to $17,240, reflecting the Company’s continued efforts to increase affordability.

Additionally, on May 29, 2025, Car-Mart completed a term securitization transaction involving the issuance of $216 million of asset-backed notes with an overall weighted average life adjusted coupon of 6.27%. The weighted average life adjusted coupon improved by 22 basis points compared to the Company’s January 2025 issuance and by 117 basis points from the October 2024 securitization transaction. Net proceeds were used to pay down the outstanding balance on the Company’s revolving line of credit.