How Did Connexion Mobility (ASX:CXZ) Stock Gain 4.17% Today?

Sonal Goyal

23 October 2026 01:22 PM AEDT

How Did Connexion Mobility (ASX:CXZ) Stock Gain 4.17% Today?

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Key Highlights

Connexion Mobility Ltd (ASX:CXZ) shares rose 4.17% to $0.025 at 12:04 pm during the trading session on 23 October 2026.
In its Q1 FY27 update dated 22 October 2026, the company reported revenue of US$3.8m and net profit before tax of US$1.2m.
The GM US agreement runs to 31 December 2026 with renewal underway, and Hyundai Motor America appointed Connexion for Dealer Lot Management.

Connexion Mobility Ltd (ASX:CXZ) shares rose 4.17% to $0.025 during the trading session on 23 October 2026, as at 12:04 pm, while the S&P/ASX 200 stood at 8,762.60, down 0.35% (30.60 points). The company is a diversified automotive software and services business whose platforms support courtesy transportation for vehicle manufacturers and dealerships in North America. In its Q1 FY27 quarterly update dated 22 October 2026, covering the quarter ended 30 September 2026, it reported record quarterly revenue, which the company said was lifted by a full quarter of its automotive repair business.

Q1 FY27 Revenue, Profit and Cash

In its update dated 22 October 2026, Connexion reported preliminary and unaudited figures in US dollars. Revenue was US$3.8m, up 14% on the prior quarter and 33% on the prior year. Gross profit was US$2.3m, up 12% quarter on quarter and 19% year on year, and net profit before tax was US$1.2m, up 9% and 63% respectively.

Net cash and investments were US$4.0m at 30 September 2026, compared with US$3.8m at 30 June. Diluted EPS was 0.117 cents, and operating cashflow was US$0.1m, down from US$0.9m in the previous quarter. Annualised monthly recurring revenue was US$11.8m, up 1%. Software contributed US$3.16m and automotive US$0.75m, and investment income of US$0.14m brought total revenue to US$4.05m.

GM, Hyundai and Software Developments

The 22 October 2026 update stated that the General Motors US agreement runs to 31 December 2026, with a contract renewal process underway.

After the quarter, Hyundai Motor America appointed Connexion as its exclusive supplier for Dealer Lot Management, announced on 7 October 2026. The company said the agreement has been executed and development is underway, with a scheduled national launch of the Hyundai US product in early 2027. Connexion also reported active discussions with several other North American OEMs about further programs.

Marketplace subscriptions rose by 27 to 297 at 30 September 2026, and e-signatures reached 25% of September loans.

Hallam Road Automotive and Capital Management

Connexion Automotive, which operates Hallam Road Automotive in Melbourne's south-east, contributed US$0.75m of revenue, or 19% of group revenue, in its first full quarter. Gross profit was US$0.39m, a 53% gross margin, and earnings were US$0.25m, a 33% net profit before tax margin. August and September workshop volumes eased, which the company attributed to seasonal patterns.

On capital, the company said it has repurchased approximately 352 million shares since June 2022 at an average of A$0.022 per share, with none repurchased in the quarter.

About the Company and Business Overview

Connexion Mobility Ltd (ASX: CXZ) operates three earnings streams. Connexion Software, described as its core, runs the OnTRAC and Connexion platforms that power courtesy transportation for OEMs and dealerships across North America. Connexion Automotive is Hallam Road Automotive, an automotive service and repair business in Melbourne. The third stream is net cash and investments, including managed funds and a minority stake in Covertrue Group.

Revenue by category in the quarter was US$2.43m from subscription-based SaaS, US$0.44m from fixed-dollar SaaS, US$0.29m from service and US$0.75m from automotive.

Related Sector Context

Connexion sits at the intersection of automotive retail and software-as-a-service, supplying dealer-facing tools to vehicle manufacturers. Revenue can depend on a small number of manufacturer programs alongside dealership subscriptions, while workshop services depend on local repair demand.

At 12:04 pm on 23 October 2026 the S&P/ASX 200 stood at 8,762.60, down 0.35%, while Connexion shares moved up 4.17% at $0.025. A company priced at $0.025 can move differently from the broader index.

Risks to Weigh In

The update identifies customer concentration as a relevant factor. The GM US agreement runs only to 31 December 2026, and the renewal process is still underway. Customer diversification AMRR was US$1.3m, down 5% on the prior quarter, against total AMRR of US$11.8m.

Operating cashflow fell to US$0.1m from US$0.9m, and the figures are preliminary and unaudited, so they may differ from later reports. Workshop volumes eased in August and September. Founder Elie Chakkour continues a 12-month handover at Hallam Road Automotive.

Catalysts on Watch

The update sets out dated milestones. License and insurance verification is scheduled to roll out across GM dealers in October to November 2026. The current GM US agreement term ends on 31 December 2026, with renewal underway. The scheduled national launch of the Hyundai US Dealer Lot Management product is set for early 2027.

The company's FY27 priorities include securing the GM US renewal, delivering the Hyundai product, growing SaaS revenue, improving automotive service standards and pursuing EPS-accretive acquisitions.

Where Things Stand

At 12:04 pm on 23 October 2026, Connexion shares were up 4.17% at $0.025, while the S&P/ASX 200 was down 0.35% at 8,762.60. The company's update dated 22 October 2026 reported quarterly revenue of US$3.8m, net profit before tax of US$1.2m and net cash and investments of US$4.0m.

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