Key Highlights

• On a proforma basis, North America contributed about 41% of FY26 revenue, Australia 26%, Latin America 20% and Asia 12%.

• In Australia, dealer Revenue was $270m (up 8%), private seller revenue $108m (up 4%), media $86m (up 8%) and data, research and services $54m (up 5%).

• Management reported about 50,000 subscribed dealers, 2.4 million vehicles online and a monthly unique audience of roughly 52 million across the group.

• Reported revenue rose 6% to $1,253.4m, while proforma revenue grew 10%, or 12% in constant currency.

What does CAR Group (ASX:CAR)'s FY26 result reveal about a classifieds Business that now earns most of its revenue outside Australia? In short, it shows a company holding a 56% proforma EBITDA Margin while spending on artificial intelligence and international growth, with the overseas arms increasingly setting the pace. The figures, reported on 10 August 2026, are for the year ended 30 June 2026 and are in Australian dollars.

The central development: a global group in transition

CAR Group, formerly Carsales.com, operates online vehicle marketplaces and related software and data services. Its Australian carsales operation remains highly profitable, but the group's centre of gravity has shifted. On a proforma basis, North America contributed about 41% of FY26 revenue, Australia 26%, Latin America 20% and Asia 12%.

That mix matters because the smaller regions are growing faster than the home market, while Australia supplies the margin and cash that fund Investment elsewhere.

What the company does and how it earns revenue

The group's revenue comes mainly from dealers, private sellers, advertisers and data customers. In Australia, dealer revenue was $270m (up 8%), private seller revenue $108m (up 4%), media $86m (up 8%) and data, research and services $54m (up 5%).

Internationally, the model is similar but varies by market. Trader Interactive serves recreational vehicle, powersports and related sellers in North America. Webmotors in Brazil and chileautos in Chile form the Latin American arm. In Asia, the group owns Encar in South Korea and Redbook Asia.

Management reported about 50,000 subscribed dealers, 2.4 million vehicles online and a monthly unique audience of roughly 52 million across the group. Classifieds businesses rely on that network effect: buyers go where the stock is, and sellers list where the buyers are.

Financial results

Reported revenue rose 6% to $1,253.4m, while proforma revenue grew 10%, or 12% in constant currency. Reported EBITDA was $667m, up 8%. Proforma EBITDA reached $700m, a 56% margin.

Reported net profit after tax attributable to shareholders was $313.7m, up 14%, and reported Earnings Per Share were 82.9 cents. Adjusted net profit after tax, which excludes certain items, was $407.2m, up 8% (11% in constant currency). Adjusted earnings per share were 107.6 cents.

The directors declared a final Dividend of 43.5 cents per share, partly franked, taking the full-year dividend to 86.0 cents from 80.0 cents. Conversion of EBITDA to Operating Cash Flow was 100%, and Leverage was 1.7 times net Debt to EBITDA, stable on the prior year.

Operating performance by region

Australia delivered proforma revenue of $519m, up 7%, and EBITDA of $345m, up 8%, at a 67% margin.

North America produced revenue of $327m and EBITDA of $197m. Growth was 6% as reported but 12% in constant currency, so exchange-rate translation had a substantial effect. Management cited marine expansion and growth in software and media.

Latin America was the standout, with revenue of $251m (up 22%, or 19% in constant currency) and EBITDA of $96m (up 27%). Asia generated revenue of $145m and EBITDA of $65m, up 15% and 14% respectively in constant currency.

Recent announcements and investment themes

Management highlighted a new dealer platform in Australia called Nexgate, along with AI tools for search, merchandising and lead nurturing. A global AI hub, CG/lab, was launched in Brazil during the year. In Latin America, a loyalty product developed with Santander was introduced, and in Asia the group is rolling out Guarantee 2.0 and scaling its Dealer Direct offering.

On governance, William Elliott became Managing Director and CEO on 15 August 2025, and Geoff Trumbull became chief financial officer on 2 March 2026. The 2026 Annual General Meeting was scheduled for 30 October 2026, according to the notice of meeting dated 28 September 2026. The final dividend was payable on 12 October 2026.

Outlook and guidance

For FY27, management guided to constant-currency revenue growth of 11% to 14%, adjusted EBITDA growth of 10% to 13% and adjusted net profit growth of 9% to 12%. By region, it expects high single-digit growth in Australia and double-digit growth in North America, Latin America and Asia.

Other guided items include net finance costs of roughly $66m to $72m, Depreciation and Amortisation growth of 16% to 19%, and an effective tax rate of 20% to 21%. This is company guidance, and outcomes could differ.

Sector conditions and competitive position

Online vehicle classifieds tend to be defined by audience scale and listing depth, which can make leading platforms difficult to dislodge. At the same time, the industry is contending with generative and agentic AI, which could change how consumers search for vehicles and how dealers market stock. The company's AI spending is aimed at staying ahead of that shift, though the commercial payoff is not yet established.

Material risks and uncertainties

Currency is a clear exposure. Reported growth in North America and Asia was well below constant-currency growth, and exchange-rate moves can continue to affect translated earnings.

Margin is another consideration.

Execution risk also applies. Guidance of double-digit growth in three regions relies on pricing, dealer retention and product adoption holding up. Higher depreciation and amortisation, as guided, will also weigh on reported profit.

What to watch next

The next checkpoint is the half-year result; this year's was released in February, so similar timing is plausible, though no date is confirmed here. Investors will likely focus on whether regional growth is tracking the guided ranges, how margins in North America and Asia behave, and what AI initiatives contribute.

Overall, the result describes a profitable, cash-generative business asking more of its international divisions. Whether that continues depends on execution, currency and the pace of technological change.