Key Highlights

  • Carma (ASX:CMA) shares traded at $0.65, up 8.33%, during the 26 October 2026 session.
  • The 31 August 2026 release reported FY26 revenue of $113.8m, up 59%, and gross profit of $10.5m, up 102%.
  • Pro Forma EBITDA was a loss of $30.2m, and available funding stood at $41.3m at year end.

Carma Ltd (ASX:CMA) shares traded at $0.65, up 8.33%, during the trading session on 26 October 2026, while the S&P/ASX 200 index (XJO) stood at 8,768.80, down 0.30% or 26.40 points, at 12:10 pm. Separately, the company's latest announcement on file is dated 31 August 2026 and covers its FY26 full year results and trading update.

Carma is an online used car retailer that sources vehicles through its Sell-to Carma channel, and the results cover units, revenue, losses, funding and FY27 priorities. The release is dated earlier than the session, so the share price movement and the announcement are reported as separate items.

FY26 results (31 August 2026)

Carma delivered 5,416 units in FY26, up 86%, comprising 3,156 retail units (up 50%) and 2,260 wholesale units (up 180%). Revenue rose 59% to $113.8 million and gross profit rose 102% to $10.5 million, with gross margin up 196 basis points to 9.2% and gross profit per retail unit up 35% to $3,300. Retail average selling price fell 6% to $28,900 as more older vehicles were sold.

Pro Forma EBITDA was a loss of $30.2 million compared with a loss of $27.8 million, while the Pro Forma EBITDA margin improved by 1,248 basis points to negative 26.5%. The statutory loss after tax was $49.6 million, including $13.3 million of non-recurring items, and Pro Forma loss after tax was $36.7 million.

Operations

Sell-to Carma accounted for 89% of vehicles purchased, with 6,235 vehicles purchased overall, and the network reached nine locations in New South Wales after openings in Newcastle and Wollongong. Reconditioning throughput at the St Peters facility averaged 15.1 retail units per shift for the year and 21.7 in the June quarter. A second shift is planned for the March 2027 quarter, taking capacity to about 60 retail units per operating day. Online inventory days improved four days to 36.

Market conditions, balance sheet and FY27 priorities

Carma said the used car market softened from March 2026 as fuel prices rose and cars took longer to move, though the June quarter was a record for deliveries. Net assets were $52.2 million, cash $16.0 million and available funding $41.3 million, including undrawn capacity of $25.3 million on a $30.0 million bailment finance facility. Net cash used in operating activities was $46.7 million, including a $17.8 million increase in vehicle inventory. FY27 priorities include the Apollo program to improve unit economics and an AI and platform reinvention program.

Quarterly and cost detail

The June quarter was a record for retail and wholesale deliveries, with total units up 38% on the March quarter, although gross profit per unit was lower than in the first three quarters. Underlying operating expenses fell to 35.4% of revenue from 42.9%, and marketing cost was $1,500 per retail unit delivered and $600 per retail unit delivered through Sell-to Carma.

Vehicle inventory was $32.1 million at year end, with 625 vehicles available for sale online. Gross profit per retail unit was $3,500 before vehicle write-downs, retail gross profit per unit rose 22% to $2,500, and wholesale gross profit per unit rose 95% to $400 as auctions became larger and more frequent. Finance and extended coverage income also increased after changes to fee structures.

About Carma

Carma Limited (ASX:CMA) sells used cars online and buys vehicles from consumers and trade-ins through Sell-to Carma, with reconditioning at St Peters in Sydney. It listed on the ASX on 5 November 2025, raising $70.0 million in new equity.

Related sector context

Used car retailers are affected by fuel prices, vehicle supply, dealer demand for wholesale vehicles and listings traffic on classifieds sites. Carma said fuel prices, softer wholesale demand and lower leads per car affected the market from March 2026, and that it adjusted pricing, kept reconditioning output and moved marketing spend to direct channels.

The XJO was down 0.30% at 12:10 pm on the day.

Risks to weigh in

The company remains loss-making, with Pro Forma EBITDA of negative $30.2 million and operating cash outflow of $46.7 million. Gross profit per unit was lower in the June quarter, and a higher share of older vehicles lowers selling prices. Inventory financing depends on a bailment facility limited to 80% of inventory value. The release is dated 31 August 2026, so later trading is not covered.

Catalysts on watch

Items to follow include the second reconditioning shift in the March 2027 quarter, unit economics under the Apollo program, expansion of Sell-to Carma beyond NSW and trading updates.

Wrapping up

Carma (ASX:CMA) traded 8.33% higher during the 26 October 2026 session, while its latest release, dated 31 August 2026, covered FY26 results and the trading update.