Key Highlights

  • FY26 Revenue increased 59% to AUD 113.8mn.
  • Total vehicle deliveries rose 86% to 5,416 units.
  • Retail Gross Profit per unit increased 22% to AUD 2,500.
  • Management targets positive EBITDA before the end of 2027.

Carma (ASX:CMA) closed 8% higher on Friday, 4 September 2026, as investors assessed recent developments across an online used-car retailer that buys, reconditions and sells vehicles. The company is scaling a direct-to-consumer model - buying, reconditioning and selling used vehicles online - and its FY26 numbers showed sharply higher sales and a narrowing loss.

Latest Developments

The driver has been Carma's FY26 result, which combined higher top-line growth with clear progress on the metrics that matter for an online car retailer: units delivered, gross profit per unit and the path to positive earnings. The company runs a "Sell-to-Carma" network alongside reconditioning and wholesale operations, and a record quarter - with revenue jumping 84% to AUD 34.2mn and retail sales topping 1,000 units - underscored the pace of expansion. Improving unit Economics have reinforced the idea that the model can eventually scale profitably. For FY26, Carma reported total revenue of AUD 113.8mn, up 59%, with gross profit doubling to AUD 10.5mn. Total vehicles delivered rose 86% to 5,416 units, of which retail deliveries climbed 50% to 3,156 units.

Business and Investment Context

Online used-car retail is a large market, and Carma's rapid growth in units and revenue, combined with rising gross profit per car, suggests the model is gaining traction. The improvement in EBITDA Margin points to Operating Leverage as volumes scale. For investors willing to back a growth company before profitability, the combination of higher momentum, better unit economics and a defined path to breakeven is the attraction.

Risks to Consider

Carma is still lossmaking, with pro forma EBITDA at negative AUD 30.2mn, so execution and funding are central risks - the company must keep scaling while managing cash of AUD 16mn and drawing on its available funding. The used-car market is competitive and exposed to consumer spending, vehicle pricing and financing conditions. Reaching the 45-60 units-per-day breakeven threshold before the end of 2027 is a clear but demanding target, and any slowdown in growth or unit economics could delay profitability and pressure the shares.

What to Watch Next

Key catalysts include quarterly updates on units delivered, gross profit per unit and reconditioning throughput, progress toward the 45-60 units-per-day breakeven run-rate, and any expansion of the Sell-to-Carma network or geographic footprint. Updates on cash and funding will also matter given the current burn. Evidence that rising volumes are translating into a narrowing loss on schedule would be the strongest signal that the growth story is shifting up a gear.

Outlook and Key Considerations

Carma's move reflects a FY26 result featuring 59% revenue growth to AUD 113.8mn, doubled gross profit and improving unit economics, alongside a clear path to breakeven by late 2027. The scaling story is notable, but the company remains lossmaking and reliant on continued growth and funding.