v3.26.1
Fair Value Measurements
 3 Months Ended
Jul. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
ASC Topic 820, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements.
ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance also establishes a fair value hierarchy that requires the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Topic 820 describes three levels of inputs that may be used to measure fair value:
•Level 1 Inputs – Quoted prices in active markets for identical assets or liabilities.
•Level 2 Inputs – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities in active markets; quoted prices for similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
•Level 3 Inputs – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
Because no market exists for certain of the Company’s financial instruments, fair value estimates are based on judgments and estimates regarding yield expectations of investors, credit risk and other risk characteristics, including interest rate and prepayment risk. These estimates are subjective in nature and involve uncertainties and matters of judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect these estimates.
The methodology and assumptions utilized to estimate the fair value of the Company’s financial instruments and other assets are as follows:
Financial Instruments and Other AssetsValuation Methodology
Cash, cash equivalents, and restricted cashThe carrying amount is considered to be a reasonable estimate of fair value due to the short-term nature of the financial instruments (Level 1).
Repossessed inventoryThe fair value approximates wholesale value (Level 1).
Finance receivables, net
The Company estimated the fair value of its receivables at what a third-party purchaser might be willing to pay. The Company has had discussions with third parties and has bought and sold portfolios and has had a third-party appraisal in 2025 that indicates a 40.5% discount to face would be a reasonable fair value in a negotiated third-party transaction. The sale of finance receivables from Car-Mart of Arkansas to Colonial is made at a 40.5% discount. For financial reporting purposes these sale transactions are eliminated (Level 2).
Accounts payableThe carrying amount is considered to be a reasonable estimate of fair value due to the short-term nature of the financial instruments (Level 2).
Contingent considerationThe fair value was based upon inputs from the earn-out projection (Level 2).
Senior secured note payableThe fair value approximates carrying value due to the variable interest rates charged on the borrowings, which reprice frequently (Level 2).
Non-recourse notes payableThe fair value was based upon inputs derived from prices for similar instruments at period end (Level 2).
The estimated fair values, and related carrying amounts, of the financial instruments and other assets included in the Company’s financial statements at July 31, 2026 and April 30, 2026 are as follows:
July 31, 2026April 30, 2026
(In thousands)
Carrying
Value
Fair
Value
Carrying
Value
Fair
Value
Cash and cash equivalents$27,532 $27,532 $46,962 $46,962 
Restricted cash82,445 82,445 84,684 84,684 
Inventory - Repossessions15,778 15,778 20,263 20,263 
Finance receivables, net909,797 708,615 1,079,167 840,770 
Accounts payable22,173 22,173 32,063 32,063 
Contingent consideration5,768 5,768 5,768 5,768 
Senior secured note payable, net266,205 266,205 263,681 263,681 
Non-recourse notes payable, net357,655 351,052 458,685 462,975