Key Highlights

  • Shares traded at $0.695, up 13.93%, during the Trading session on 30 October 2026.
  • The company sold 2,100 total units in the September 2026 quarter, up 105% on the prior corresponding period, with Revenue of $44.3 million.
  • Net cash used in Operating Activities was $10.2 million, or $7.2 million excluding certain timing and inventory items.

Carma Ltd (ASX:CMA) shares traded at $0.695 during the trading session on 30 October 2026, rising 13.93%. The S&P/ASX 200 (ASX:XJO) was at 8,973.00, up 0.91% or 81.20 points at 11:15 am. Carma is a fully digital used car platform based in Sydney, which buys vehicles through its Sell-to Carma network and sells them online with fixed pricing. Its quarterly activity report and Appendix 4C for the quarter ended 30 September 2026 was released on 29 October 2026, the day before the share move, so the two are discussed separately.

Latest Development: Quarterly Sales and Gross Profit (29 October 2026)

Total units sold reached 2,100, including 1,354 retail units and 746 wholesale units. Retail units rose 114 per cent on the prior corresponding period, and wholesale units rose 90 per cent. Total revenue was $44.3 million, up 88 per cent, while gross profit was $3.5 million, up 57 per cent.

The retail average selling price was $27,600, down 11 per cent, which the company attributed to a mix shift toward older cars sourced through Sell-to Carma. Gross profit per retail unit, including other income, was $2,900, in line with the prior year, while total gross profit per retail unit was $2,500, down 27 per cent because of lower wholesale margins and higher vehicle write-downs.

Reconditioning, Inventory and Funding

The company reconditioned a record 1,443 retail units, up 100 per cent, at an average of 21.9 units per shift. Vehicles purchased totalled 2,121, up 86 per cent, with Sell-to Carma and trade-ins accounting for 93 per cent. Online inventory days improved to 45 from 52 in the previous quarter.

Cash and funds on deposit were $13.1 million at quarter end, with $16.0 million of undrawn finance facilities, giving total available funding of $29.1 million. Vehicle inventory was $33.0 million, and $10.4 million of the bailment Facility was drawn.

Sector Context

Used car retail in Australia is shaped by vehicle Supply from trade-ins and private sellers, wholesale auction prices and the cost of financing inventory. Wholesale prices were affected by market conditions earlier in the year, and the company describes a stabilisation in used car prices during the quarter as a Factor in its Margin recovery.

Risks

Net cash used in operating activities was $10.2 million for the quarter, including a $1.4 million increase in inventory and $1.7 million of Payroll and Superannuation timing differences. The company's estimated quarters of funding fell to 2.9. Wholesale margins were under pressure in the early part of the quarter, and write-downs on vehicles affected total gross profit per unit. The company's funding depends on its bailment facility, which carries a weighted average Interest Rate of 8.19 per cent.

What Lies Ahead

The company said its Apollo program of operational improvements is designed to change unit economics, including the migration of core systems onto a proprietary technology stack. It also said it is well placed for the rest of FY2027 and will continue to manage wholesale purchases in a measured way.

Summary View

Carma's shares rose 13.93% during the 30 October 2026 session, following a Quarterly Report that showed higher unit sales, revenue and gross profit alongside lower gross profit per unit and a reduced funding runway. The next quarterly report will show whether these trends continue through FY2027.