America‘s Car-Mart: F4Q Recap & Model Update

Research evidence excerpt

America‘s Car-Mart: F4Q Recap & Model Update

y reduced originations and

inventory to protect liquidity. In June, it entered into an agreement providing covenant relief,

providing time to review strategic and financing alternatives. Currently, the company's primary

funding mechanism is from collections on unsecuritized receivables and cash, with mgmt noting

~60% of receivables are currently securitized and a significant portion of collateral held in trust

will be released in the next 15 months. CRMT's origination vols will be limited until add'l financing

capacity is in place, whether that is a warehouse facility, recapitalization, or another transaction.

Store optimization progress - In FY26, CRMT completed 60 consolidations, reducing store count

to 94 with remaining stores being stronger performers. In addition, tighter underwriting and staff /

cost reductions support better store efficiency; cash collection as a % of avg receivables improved

+12 bps Y/Y and gross profit / unit rose +1%.

CFO transition - Current CFO Jonathan Collins will leave CRMT on July 31 and will be succeeded

by Marie Porchetti on Aug. 1. Marie is currently SVP of Capital Markets at CRMT.

John Hecht * | Equity Analyst

Thoughts on the stock - CRMT's future is somewhat reliant on funding restructure; will likely +1 (415) 229-1569 | jhecht@jefferies.com

continue to face limits until then. Capital structure constraints persist as CRMT undergoes

Alexander Villalobos-Morsink * | Equity

strategic actions to consolidate until a sustainable restructure is complete - whether through Associate

a warehouse facility, recapitalization, or another financing transaction. The recent amendment +1 (415) 229-1479 | avillalobos@jefferies.com