America's Car-Mart, Inc.

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. For example, under our legacy structure, certain covenants limited actions tied to optimizing our store footprint and organizational structure. Now, with more flexibility, we're moving more decisively on a multi-phase plan to optimize our footprint, cost structure, and strengthen capital efficiency. These aren't hypothetical savings. We've already executed on phase one in early November, which included the consolidation of five underperforming stores and the elimination of approximately 10% of our headcount as a company. The second phase will be completed in Q3. And when combined, the results generate more than $20 million in annualized SG&A savings. Between these two initial phases, we estimate a 10% reduction in our store footprint. More details here can be found on page seven in the presentation. I'll let Jonathan elaborate on additional efforts of the term loan and additional actions which will enhance our capital structure. But at a high level, this represents a fundamental step in removing constraints, unlocking flexibility, and aligning our funding model with the needs of a more modern, scalable platform. Our enhanced underwriting platform, LOSv2, which launched in May, continues to deliver measurably better results. During the quarter, we continue to see a shift of our mix towards booking higher quality customers. We are prioritizing value over volume to build a portfolio that delivers stronger returns. More importantly, this higher quality underwriting is needed to navigate uncertain environments. As we continue to see customer behavior shift with our Pay Your Way platform, which we relaunched late last quarter, customers continue to migrate from making payments in-store to online, which is an important trend as we look to leverage our new collection CRM. We're also seeing an increase in the accounts with auto-recurring payments, which reduces the effort needed to collect. Lastly, customers are utilizing new payment channels like Apple Pay and PayPal While these do add a level of convenience for our customers, it's also driving more consistent payment behavior, reducing in-store payment related traffic, and associated costs while improving the overall collection efficiency. As adoption continues to grow, we expect these benefits to compound when combined with our collection CRM powered by Salesforce. Jamie will expand more on this in a minute. With this infrastructure now in place or nearing completion, is creating competitive advantages that will translate into better unit economics and stronger returns. The work we've done positions us to execute from a position of strength, clarity, and discipline. And while there's more to do, the building blocks are in place. These efforts are creating a platform that will enable higher quality growth and improve our financial performance. And with that context, I'd like to turn the call over to Jamie to review our operational performance for the quarter. Jamie?

Thanks, Doug. Good morning, everyone. Historically, when the macro environment softens on consumers, our business gets more robust. This quarter was another proof point of that with credit application volume up 14.6% from prior year. This is notable for two reasons. The first of which is that the company continued to navigate lower than normal inventory levels throughout the quarter. This is particularly evident and reflected on the balance sheet when observing the 6.8% variance between the periods. The second is the fact that this has a knock-on effect of reducing website traffic when less vehicles are advertised. Despite those headwinds, the team was able to deliver a sales volume result within approximately 1% of prior year. This performance reflects the resilience of the team and a vote of confidence from consumers in our offering. The launch of LOS v2 at the start of Q1 gave our store teams the ability to take advantage of the increased customer applications by prioritizing the highest ranked customers more effectively. Customers in these higher ranks demonstrate lower loss frequency and severity, faster time to break even, and stronger returns on invested capital. In fact, as highlighted in our supplemental presentation on page 10, you can see that 76.5% of our volume came from our highest ranked customers, ranks four through seven, a 12% improvement in higher quality bookings compared to prior years since the system went live in May. Revenue increased 0.8% year over year, primarily driven by higher interest income and a nominal increase in the average retail sales price. It's important to note that the company had a one-time benefit of $13.2 million related to a change in service contract revenue recognition in the prior year. Absent that benefit, revenues would have been up 4.8%, primarily driven by an increase in vehicle price due to increased procurement costs related to tariffs outlined in the prior quarter. Growth profit margin was 37.5% compared to 39.4% in the prior year. Adjusting for the aforementioned one-time benefit, margins improved by approximately 100 basis points year over year, and 90 basis points sequentially, driven by reduced repair frequency and severity, and improved wholesale retention values. Turning to the operational progress from our enhanced payment infrastructure, the benefits of Pay Your Way program are becoming increasingly clear. We're seeing measurable improvements in both the customer experience and payment behavior across the portfolio. Over the past four months, we've shown significant momentum in customers enrolled in and utilizing our updated digital payment options. These trends are driving improved collections efficiency, reducing in-store payment traffic, and increasing overall payment consistency. During the second quarter, we also exceeded 5% of our portfolio on auto-pay recurring payments, which represents a 3x improvement to when compared to our legacy platform. This is partially driven by our customers opting to utilize our incremental payment types for recurring payments, like debit card, Venmo, and PayPal, as compared to our previous offering of only ACH. We are encouraged by the early success of the pay-your-way strategy and expect adoption and efficiency gains to continue as the program matures. As Doug mentioned, we're advancing efforts to enhance collections performance through the rollout of a new Salesforce-based collections CRM. Development is complete, and the tool has begun testing in a live environment in one of our stores. We expect to begin piloting in the second half of the fiscal year. This next-generation platform will deliver immediate benefits, including streamlined workflows, improved account management tools, enhanced data collection, virtual payment modification capabilities, and a better customer contact experience. Looking ahead, we plan to introduce additional features such as advanced account routing, AI-driven customer engagement strategies, and self-service options. These enhancements will create a scalable solution capable of supporting a larger portfolio without a proportional increase in headcount. With the investments we are making to support our Pay Your Way program and the upgrade of our collections CRM, we believe this data-driven collections platform will generate meaningful results. In Doug's remarks, he mentioned a multi-phase plan to optimize operations and reduce SG&A. The process for this plan included an exhaustive review of our footprint and talent to ensure our resources are generating the appropriate returns. We evaluated underperforming stores, mapped customer concentrations and geographical overlapping, and assessed market coverage and service levels. From this, we established a phased approach to improve operational efficiency and performance. In November, we executed on phase one by consolidating five locations into nearby better performing stores. The intention with this first phase of consolidations was to specifically solve for underperforming locations that were sharing the same geographical footprint as that of a better performing store. Early results confirmed that this approach was sound. Our existing and new customers continue to be served seamlessly from one location in the same geographical area with a larger staff, more inventory selection, and the same great service they have become accustomed to at CarMart. We also conducted a comprehensive review of both field and corporate headcount. Where technology, automation, and process improvements have eliminated manual tasks, we made targeted reductions. These changes were implemented smoothly and operational continuity has been fully maintained. Importantly, these initiatives provide valuable insights that will inform decisions for future phases as we continue to optimize our footprint, cost structure, and enhance scalability over the next several phases. As you can see, we are taking meaningful steps to improve the efficiency of our operations with urgency. With this overview, I'll now turn it to Jonathan to cover our financial results.