Carma Limited has reported a surge in vehicle sales and revenue in its latest quarterly report, alongside a successful $100 million IPO that strengthens its growth trajectory.
- Record 1,199 units sold, up 66% year-on-year
- Total revenue climbs 48% to $27.4 million
- Gross profit rises 88% to $2.5 million
- Successful $100 million IPO completed
- Operational capacity expanded with new centres and facilities
Strong Sales Momentum
Carma Limited (ASX, CMA) has delivered a standout performance in the second quarter of fiscal 2026, posting record vehicle sales that surged 66% compared to the prior corresponding period. The company sold a total of 1,199 units, with retail sales up 29% and wholesale sales more than doubling, reflecting robust demand across its customer segments.
This sales growth translated into a 48% increase in total revenue, reaching $27.4 million. Gross profit also saw a significant jump, rising 88% to $2.5 million, with gross profit per unit improving by 45% to $3,400. These figures underscore Carma’s ability to scale its operations efficiently while maintaining healthy margins.
Operational Expansion and Efficiency
The company’s operational metrics highlight its rapid scaling capabilities, with the average number of vehicles reconditioned per shift nearly doubling to 12.4. This was supported by the expanded St Peters inspection and reconditioning facility, which came online in August and has provided the capacity needed to meet growing demand without compromising quality.
Carma’s innovative 'Sell-to Carma' offering continues to gain traction, with three new centres launched in Sydney during the quarter. This expansion enhances convenience for sellers and is driving growth in leads, inspections, and purchases, positioning Carma as a trusted and accessible platform in the pre-owned vehicle market.
Capital Raising and Financial Position
In a major milestone, Carma successfully completed its Initial Public Offering (IPO), raising $100 million in total proceeds. Of this, $70 million came from the issuance of new shares, bolstering the company’s balance sheet. At quarter-end, Carma held a strong cash position of $58.3 million and maintained access to a $30 million bailment finance facility, with $10 million drawn.
Despite cash used in operating activities amounting to $7.8 million (excluding IPO costs), the company remains well-capitalised to execute its growth plans. Expenditure on brand marketing, property, software development, and working capital is progressing on track, reflecting disciplined use of IPO funds.
Looking Ahead
CEO Lachlan MacGregor emphasised the company’s focus on delivering a seamless, transparent experience for buying and selling pre-owned cars. With a strong foundation in place, Carma is poised to capture increasing market demand from consumers seeking trusted, quality vehicles with speed and ease.
As Carma continues to expand its footprint and operational capacity, the coming quarters will be critical to sustaining momentum and translating its IPO capital into long-term market leadership.
Bottom Line?
Carma’s record quarter and strong capital position set the stage for accelerated growth, but execution will be key to maintaining its market edge.
Questions in the middle?
- How will Carma sustain its rapid sales growth amid increasing competition?
- What impact will ongoing operating cash outflows have on profitability?
- How effectively will the new IPO funds be deployed to scale operations and marketing?