Why Connexion Mobility (ASX:CXZ) Is Reporting Higher Quarterly Earnings and a New Hyundai Dealer-Lot Agreement

Sonal Goyal

23 October 2026 05:42 PM AEDT

Why Connexion Mobility (ASX:CXZ) Is Reporting Higher Quarterly Earnings and a New Hyundai Dealer-Lot Agreement

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Key Highlights

Connexion Mobility reported Q1 FY27 net profit before tax of US$1.2 million, 9 per cent above the June quarter and 63 per cent above a year earlier.
The company was appointed exclusive supplier of Dealer Lot Management to Hyundai Motor America, with a national launch scheduled for early 2027.
The General Motors relationship in the United States runs to 31 December 2026, and a renewal process is under way.

Connexion Mobility (ASX:CXZ) released its first-quarter report for the 2027 financial year on 22 October 2026, covering the three months to 30 September. The company, which sells dealership and manufacturer software in North America and owns a Melbourne vehicle workshop, reported net profit before tax of US$1.2 million, which it said was 9 per cent above the June quarter and 63 per cent above a year earlier. All figures are preliminary, unaudited and in US dollars, although the workshop earns its Revenue in Australian dollars.

Connexion headlined revenue at US$3.8 million, up 14 per cent on the prior quarter, with Gross Profit of US$2.3 million. Elsewhere the report gives Operating Revenue as US$3.9 million, comprising US$3.16 million from software and US$0.75 million from the workshop, plus US$0.14 million of Investment income. The two revenue figures are not identical, and the US$3.9 million matches the company's revenue-mix breakdown.

Diluted earnings per share were 0.117 cents. Operating Cash Flow was US$0.1 million, compared with US$0.9 million in the previous quarter. Net cash and investments were US$4.0 million, against US$3.8 million at 30 June. Annualised monthly recurring software revenue was US$11.8 million, up 1 per cent on the quarter.

Hyundai and General Motors

The company announced on 7 October 2026, after the quarter closed, its appointment as exclusive supplier of Dealer Lot Management to Hyundai Motor America. The company said the agreement has been executed, development is under way and a national launch is scheduled for early 2027. The report does not quantify the revenue it might generate.

Connexion's largest existing relationship, with General Motors in the United States, runs to 31 December 2026. The company said a renewal process is under way and listed securing it as the first software priority for the year; the report does not say a renewal has been agreed. Recurring Revenue unrelated to the General Motors programme was US$1.3 million, flat on the previous quarter, and the report labels the change as a 5 per cent fall without explanation.

In the quarter the company said it delivered nine reusable platform capabilities without production rollbacks, brought Stripe payments live and recorded electronic signatures on 25 per cent of September loans. Marketplace subscriptions rose by 27 to 297. General Motors dealers receive a free two-month trial of Express Check-in, including licence and insurance verification, from 1 October 2026, with that verification due to roll out across General Motors dealers in October and November.

Workshop and Capital management

The Hallam Road Automotive workshop generated US$0.75 million of revenue, US$0.39 million of gross profit at a 53 per cent Margin and US$0.25 million of pre-tax earnings. Connexion said volumes eased in August and September, which it attributed to seasonal weakness across the repair industry rather than a change in the underlying business.

Investment earnings rose 36 per cent on the quarter to US$0.14 million, driven by managed funds and a minority stake in Covertrue Group. No shares were repurchased in the quarter, and about 352 million have been bought back since June 2022 at an average of A$0.022. Management said it is assessing Acquisition targets and wants any deal to be accretive to earnings per share.

Caveats and milestones

The report contains inconsistencies: net cash growth is described as 7 per cent, while the figures given are US$3.8 million at 30 June and US$4.0 million at 30 September. The growth rates are the company's own preliminary calculations.

Connexion Mobility (ASX:CXZ) states that the General Motors United States term ends on 31 December 2026. Milestones in the report are the licence and insurance rollout in October and November 2026, the General Motors term end on 31 December 2026 and the Hyundai launch in early 2027.

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