Key Highlights

• Carma's used-car volumes roughly doubled in the September quarter.

• Profit per sale slipped compared with a year earlier.

• The Business is still burning cash.

• The online model is the key growth driver.

Carma's (ASX:CMA) September-quarter figures show that its online used-car model is selling far more vehicles, but each sale is earning less profit than a year earlier. For a business still burning cash, that balance between Volume and unit Economics is the whole story.

An online retailer of used cars

Carma Limited sells quality used cars to Australian consumers online. It sourced 89 per cent of its FY26 purchases through its Sell-to Carma channel, reconditions vehicles at its St Peters Facility in Sydney and delivers them to buyers. Wholesale sales help clear surplus stock.

The network had nine locations in New South Wales at 30 June 2026, including Kotara near Newcastle and Albion Park near Wollongong, its first outside Sydney.

The company listed on the ASX on 5 November 2025 after raising A$70.0 million of new equity. The ASX classifies it as Consumer Discretionary, within distribution and retail, and lists it in the S&P/ASX Emerging Companies Index.

FY26: growth with deep losses

For the year to 30 June 2026, Revenue rose 59 per cent to A$113.8 million. Gross Profit doubled to A$10.5 million, a Margin of 9.2 per cent, and total units sold reached 5,416, up 86 per cent.

The losses remain large. The statutory loss after tax was A$49.6 million, including A$13.3 million of non-recurring items. Pro forma EBITDA, an unaudited non-IFRS measure, was a loss of A$30.2 million. Operating cash outflow was A$46.7 million.

Cash stood at A$16.0 million at year end, and net Assets were A$52.2 million, against net liabilities of A$10.3 million a year earlier.

The September quarter

Carma's (ASX:CMA) quarterly report, dated 29 October 2026 and unaudited, showed 2,100 total units sold in the quarter ended 30 September 2026, up 105 per cent. Retail units were 1,354, up 114 per cent on the prior year and 35 per cent on the June quarter.

Revenue rose 88 per cent to A$44.3 million, while gross profit rose 57 per cent to A$3.5 million.

Net cash used in Operating Activities was A$10.2 million. Cash and funds on deposit were A$13.1 million, and Carma estimated 2.9 quarters of funding, or 4.1 quarters excluding timing and inventory items.

What the evidence suggests

Volume is clearly building. Carma delivered a record 470 retail units in September 2026, and online inventory days fell to 45 from 52 in the June quarter. Faster stock turnover reduces the cash tied up in vehicles.

Profitability is the harder test. Management has said it expects positive EBITDA at an average of 45 to 60 retail units per operating day, a range it expects to reach before the end of calendar 2027. Its FY27 outlook called for revenue growth above 80 per cent and an exit rate above 35 retail units per operating day, with a second reconditioning shift planned for the March 2027 quarter.

The company launched an Apollo unit-economics programme in July 2026 to address margins.

Risks and dates ahead

The main risk is funding. A bailment facility with a A$30.0 million limit had A$10.4 million drawn at a weighted average rate of 8.19 per cent a year, and spending from the prospectus allocation for operating cash flows, A$12 million of A$13 million, is tracking above plan because gross profit per unit is lower. Further Capital may be needed if margins do not improve.

Used-car pricing, consumer demand, wholesale conditions and execution on added reconditioning capacity are further key variables. Carma gave no numerical guidance in the quarterly report, although management said it was well placed for the rest of FY27.

Carma's (ASX:CMA) Annual General Meeting is on 13 November 2026 at 11.00am AEDT in Strawberry Hills, Sydney.