Dj Cfo Collins Buys 197 Of America's Car-Mart Inc >Crmt

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at vehicle retailer stocks, starting with Camping World .

Buying a vehicle is a big decision and usually the second-largest purchase behind a home for many people, so retailers that sell new and used cars try to offer selection, convenience, and customer service to shoppers. While there is online competition, especially for research and discovery, the vehicle sales market is still very fragmented and localized given the magnitude of the purchase and the logistical costs associated with moving cars over long distances. At the end of the day, a large swath of the population relies on cars to get from point A to point B, and vehicle sellers are acutely aware of this need.

The 4 vehicle retailer stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.4%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.7% since the latest earnings results.

Best Q3: Camping World

Founded in 1966 as a single recreational vehicle (RV) dealership, Camping World still sells RVs along with boats and general merchandise for outdoor activities.

Camping World reported revenues of $1.81 billion, up 4.7% year on year. This print exceeded analysts’ expectations by 3.9%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The stock is down 38.2% since reporting and currently trades at $10.40.

Is now the time to buy Camping World? Access our full analysis of the earnings results here, it’s free for active Edge members.

Lithia

With a strong presence in the Western US, Lithia Motors sells a wide range of vehicles, including new and used cars, trucks, SUVs, and luxury vehicles from various manufacturers.

Lithia reported revenues of $9.68 billion, up 4.9% year on year, outperforming analysts’ expectations by 2.6%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

Lithia achieved the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 14.4% since reporting. It currently trades at $356.66.

Is now the time to buy Lithia? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: CarMax

Known for its transparent, customer-centric approach and wide selection of vehicles, Carmax is the largest automotive retailer in the United States.

CarMax reported revenues of $6.59 billion, down 6% year on year, falling short of analysts’ expectations by 6.7%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EBITDA estimates.

CarMax delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 27.4% since the results and currently trades at $41.40.

Read our full analysis of CarMax’s results here.

America's Car-Mart

With a strong presence in the Southern and Central US, America’s Car-Mart sells used cars to budget-conscious consumers.

America's Car-Mart reported revenues of $350.2 million, up 1.2% year on year. This number beat analysts’ expectations by 5.8%. Taking a step back, it was a slower quarter as it recorded a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.

America's Car-Mart pulled off the biggest analyst estimates beat among its peers. The stock is up 8.6% since reporting and currently trades at $25.33.

Read our full, actionable report on America's Car-Mart here, it’s free for active Edge members.

America’s Car-Mart saw a notable market rebound after its third quarter results, despite reporting a larger-than-expected non-GAAP loss. Management attributed the positive market response to the early progress of a multi-phase cost reduction initiative, new underwriting technology, and improved operational efficiency. CEO Douglas Campbell emphasized the significance of recently completed store consolidations and headcount reductions, which are expected to generate meaningful ongoing savings. The company also highlighted resilience in consumer demand for used vehicles and the value of its upgraded digital payment platform. Campbell noted, “We are prioritizing value over volume to build a portfolio that delivers stronger returns.”

Is now the time to buy CRMT? Find out in our full research report (it’s free for active Edge members).

America's Car-Mart (CRMT) Q3 CY2025 Highlights:

• Revenue: $350.2 million vs analyst estimates of $331 million (1.2% year-on-year growth, 5.8% beat)
• Adjusted EPS: -$0.79 vs analyst estimates of -$0.28 (significant miss)
• Adjusted EBITDA: $3.70 million vs analyst estimates of $13.48 million (1.1% margin, 72.5% miss)
• Operating Margin: -1.1%, down from 7.3% in the same quarter last year
• Locations: 154 at quarter end, in line with the same quarter last year
• Same-Store Sales were flat year on year (-8.4% in the same quarter last year)
• Market Capitalization: $222.6 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 Q3 Earnings Call

• John Hecht (Jefferies) asked about quantifying improvements in credit losses for newer loan vintages versus older ones. CFO Jonathan Collins explained that newer loans under LOS V2 are showing an 18% to 20% improvement in loss rates compared to pre-upgrade pools, but noted historical comparisons are complicated by changes in vehicle pricing and loan terms.
• John Hecht (Jefferies) inquired about the competitive landscape and whether smaller rivals were under increased pressure. CEO Douglas Campbell described a challenging environment for peers, with Car-Mart’s technology and capital access helping it to differentiate and benefit from less competition in some markets.
• John Hecht (Jefferies) sought management’s view on signals for a more constructive environment. Campbell stressed the need to control costs and pursue higher-quality customers, adding that flexibility and operational discipline are key as timing on external improvements remains uncertain.
• Kyle Joseph (Stephens) asked about the timing for rebuilding inventory given strong application flow and new capital. Campbell responded that Q3 will focus on inventory normalization to position the company for increased activity during the tax season in Q4.
• Vincent Caintic (BTIG) questioned the expected impact of store closures on sales and revenue retention. Campbell clarified that while about 10% of the store footprint is consolidating, early results suggest over 80% of sales from closed locations are being retained through nearby stores.

Catalysts in Upcoming Quarters

Going forward, our team will watch for (1) the pace and effectiveness of further SG&A and store consolidation actions, (2) measurable improvements from the new digital collections and payment infrastructure, and (3) successful rebuilding of vehicle inventory to support higher sales during tax refund season. Additionally, we will monitor credit quality trends and any changes in the competitive landscape, as these will determine if Car-Mart’s operational changes yield sustainable margin recovery and growth.

America's Car-Mart currently trades at $26.83, up from $23.32 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).

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Used-car retailer America’s Car-Mart reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 1.2% year on year to $350.2 million. Its non-GAAP loss of $0.79 per share was significantly below analysts’ consensus estimates.

Is now the time to buy CRMT? Find out in our full research report (it’s free for active Edge members).

America's Car-Mart (CRMT) Q3 CY2025 Highlights:

• Revenue: $350.2 million vs analyst estimates of $331 million (1.2% year-on-year growth, 5.8% beat)
• Adjusted EPS: -$0.79 vs analyst estimates of -$0.28 (significant miss)
• Adjusted EBITDA: -$1.60 million vs analyst estimates of $13.48 million (-0.5% margin, significant miss)
• Operating Margin: -1.1%, down from 7.3% in the same quarter last year
• Locations: 154 at quarter end, in line with the same quarter last year
• Same-Store Sales were flat year on year (-8.4% in the same quarter last year)
• Market Capitalization: $214.5 million

StockStory’s Take

America’s Car-Mart saw a notable market rebound after its third quarter results, despite reporting a larger-than-expected non-GAAP loss. Management attributed the positive market response to the early progress of a multi-phase cost reduction initiative, new underwriting technology, and improved operational efficiency. CEO Douglas Campbell emphasized the significance of recently completed store consolidations and headcount reductions, which are expected to generate meaningful ongoing savings. The company also highlighted resilience in consumer demand for used vehicles and the value of its upgraded digital payment platform. Campbell noted, “We are prioritizing value over volume to build a portfolio that delivers stronger returns.”

Looking ahead, America’s Car-Mart leadership is focused on executing the next phase of its cost optimization plan, rebuilding inventory to capture strong demand, and completing further capital structure enhancements. Management expects the rollout of its new Salesforce-based collection system and continued adoption of digital payment channels to improve collections and reduce costs. Campbell outlined that the company’s top priorities are achieving positive GAAP earnings, leveraging operational flexibility to serve a wider credit spectrum, and capitalizing on its strengthened capital base. He stated, “As these initiatives progress, we expect to return to positive GAAP earnings and demonstrate the earnings power of this improved model.”

Key Insights from Management’s Remarks

Management explained that the quarter’s performance was shaped by deliberate investments in technology and operational restructuring, with cost-saving actions offsetting macroeconomic challenges and industry-wide pressures.

• Cost optimization underway: The company began a multiphase plan to reduce SG&A (selling, general, and administrative expenses), including consolidating five underperforming stores and eliminating about 10% of total headcount. These steps are projected to save over $20 million annually once both phases are complete.
• Capital structure transformation: America’s Car-Mart secured a $300 million term loan, replacing legacy credit facilities and enabling greater flexibility in its operational decisions. CFO Jonathan Collins described this as a fundamental shift that removes previous constraints and supports growth initiatives.
• Underwriting technology upgrades: The launch of LOS V2, a new loan origination system, has shifted the customer mix toward higher-quality borrowers. Management reported a 12% improvement in high-quality bookings year over year, which they believe will enhance credit performance and lower loss frequency.
• Digital payments and collections: The updated Pay Your Way platform, supporting options like Apple Pay and PayPal, has driven increased adoption of auto-pay and reduced in-store payment volume. The rollout of a Salesforce-based collection CRM is expected to further boost efficiency and payment consistency.
• Resilient demand amid supply pressure: Despite inventory challenges, credit application volume grew nearly 15% from the prior year. Management attributed this to steady demand for affordable transportation and noted that operational changes have enabled sales volumes to remain nearly flat even as inventory declined.

Drivers of Future Performance

Management expects future performance to be driven by further execution on cost reductions, inventory rebuilding, and continued technology adoption—while monitoring macroeconomic and industry risks.

• Next phase of cost reductions: The company is finalizing the second wave of store consolidations and SG&A cuts, aiming to realize the full $31 million in targeted annualized savings. These actions are intended to restore profitability and support margin recovery.
• Inventory normalization and demand capture: With improved capital flexibility, management plans to rebuild inventory in the next quarter to meet strong consumer demand, especially ahead of the high-activity tax refund season. Achieving this is seen as critical for sales growth and operational leverage.
• Credit quality and macro headwinds: While leading indicators like delinquencies have improved, management remains alert to ongoing macro pressures and evolving consumer affordability. The credit allowance will be maintained at a historically prudent range until sustained stabilization is observed.

Catalysts in Upcoming Quarters

Going forward, our team will watch for (1) the pace and effectiveness of further SG&A and store consolidation actions, (2) measurable improvements from the new digital collections and payment infrastructure, and (3) successful rebuilding of vehicle inventory to support higher sales during tax refund season. Additionally, we will monitor credit quality trends and any changes in the competitive landscape, as these will determine if Car-Mart’s operational changes yield sustainable margin recovery and growth.

America's Car-Mart currently trades at $25.70, up from $23.32 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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