Key Highlights

  • Revenue increased 59% to $113.8 million in FY26, with total unit deliveries up 86% to 5,416 vehicles
  • Gross profit rose 102% to $10.5 million, with Gross Profit per retail unit up 35% to $3,300
  • Pro Forma EBITDA loss narrowed to $30.2 million, a 1,248 basis point Margin improvement
  • Sell-to Carma network expanded to nine locations, supplying 89% of vehicles purchased during the year

Carma Limited (ASX:CMA) reported Revenue of $113.8 million for the year ended 30 June 2026, an increase of 59% on the prior corresponding period. The improvement was recorded across both the company's retail and wholesale channels, with total unit deliveries reaching 5,416, comprised of 3,156 retail units and 2,260 wholesale units, up 86% year-on-year.

Gross profit for the period increased 102% to $10.5 million, with Gross Profit Margin expanding by 196 basis points to 9.2%. Gross profit per retail unit rose 35% to $3,300. Retail gross profit per unit increased 22% to $2,500, while wholesale gross profit per unit rose 95% to $400 as auction volumes and frequency increased. Despite the gains in gross profit, retail average selling price declined 6% to $28,900, reflecting a higher proportion of older vehicles sourced through the company's Sell-to Carma channel.

Pro Forma EBITDA for FY26 was a loss of $30.2 million, representing a margin of negative 26.5%, an improvement of 1,248 basis points compared to the prior year. Underlying operating expenses fell to 35.4% of revenue from 42.9% in FY25 as revenue growth outpaced cost growth.

Statutory Result and Balance Sheet

The statutory loss after tax for the year was $49.6 million, which included $13.3 million of non-recurring items comprising $10.0 million of convertible note costs and $3.2 million of IPO transaction costs. Adjusting for these items, the Pro Forma loss after tax was $36.7 million, with the Pro Forma loss after tax margin improving 1,652 basis points to negative 32.3%.

Net cash used in Operating Activities was $46.7 million, which included the IPO Transaction Costs and a $17.8 million increase in vehicle inventory. The company held vehicle inventory of $32.1 million at year end, with 625 vehicles listed online for sale. Net Assets stood at $52.2 million at 30 June 2026, a Reversal from net liabilities of $10.3 million a year earlier, following the company's ASX listing in November 2025, which raised $70.0 million in new Equity and converted all outstanding convertible notes to ordinary shares.

Available funding, including cash, funds on deposit and undrawn facilities, totalled $41.3 million at year end. Cash and cash equivalents were $16.0 million, and the company's Bailment Finance Facility had undrawn capacity of $25.3 million against a total limit of $30.0 million.

Sell-to Carma and Reconditioning Operations

Sell-to Carma, the company's primary vehicle sourcing channel, purchased 5,577 vehicles including trade-ins during the year, an increase of 255% on the prior period, and accounted for 89% of total vehicle purchases. The network expanded to nine locations across New South Wales, with Kotara in Newcastle and Albion Park in Wollongong opened as the company's first sites outside Sydney.

The upgraded St Peters reconditioning facility, completed in August 2025, consolidated three sites into a single 35,000 square metre facility. Retail units reconditioned increased 99% to 3,743, with average throughput per shift rising from 7.5 to 15.1 units, reaching 21.7 units per shift in the fourth quarter. Online inventory days improved by four days to 36 days over the year.

Market Conditions and Trading Update

Market conditions shifted in the fourth quarter as fuel prices rose from March 2026, contributing to reduced dealer Demand for wholesale vehicles and slower vehicle turnover. Despite these conditions, the fourth quarter was the company's largest for combined retail and wholesale deliveries, representing 38% unit growth over the third quarter, although gross profit per unit declined relative to the first three quarters.

In its trading update for the two months to 31 August 2026, Carma reported retail deliveries up 120% on the same period last year, with July reconditioning output exceeding the fourth-quarter record. For FY27, the company said it expects revenue growth of over 80%, plans to commence a second reconditioning shift at St Peters in the March 2027 quarter, and anticipates reconditioning between 45 and 60 retail units per operating day before positive EBITDA is achieved, a range it expects to reach before the end of calendar 2027.

Conclusion

Carma's FY26 results reflect a first full year as a listed company marked by expansion of its Sell-to Carma vehicle sourcing network and gains in reconditioning throughput at its upgraded St Peters facility. Revenue and gross profit both increased at a faster rate than operating expenses, narrowing the company's Pro Forma EBITDA loss, though the Business remained loss-making on both a Pro Forma and statutory basis for the year. Market conditions softened in the final quarter amid rising fuel prices, which affected gross profit per unit, though the company reported that trading conditions stabilised into the first quarter of FY27, with retail deliveries and reconditioning volumes both exceeding prior-year and prior-quarter levels in July and August.