Connexion Mobility delivered record Q1 FY27 revenue and profit as Hallam Road Automotive contributed for a full quarter. The company also began developing Hyundai Motor America’s Dealer Lot Management platform, while renewal talks with its largest disclosed OEM relationship remain unresolved.
- US$4.05 million total revenue including investment income
- US$1.2 million net profit before tax, up 63% year on year
- Hallam Road Automotive contributed US$0.75 million revenue and US$0.25 million profit before tax
- Hyundai Dealer Lot Management development underway for an early 2027 launch
- GM US agreement expires 31 December 2026, with renewal discussions underway
Record quarter adds a second earnings engine
Connexion Mobility Ltd (ASX:CXZ) has reported its strongest quarterly result to date, with total revenue reaching US$4.05 million in the September quarter, including US$0.14 million of investment income. Operating revenue was US$3.9 million, up 14% from the previous quarter, while net profit before tax rose 9% quarter on quarter to US$1.2 million and 63% from a year earlier.
The quarter marked the first full contribution from Hallam Road Automotive, the Melbourne service and repair business acquired earlier this year. Automotive generated US$0.75 million of revenue and US$0.25 million of net profit before tax, representing 19% of group revenue and 21% of profit before tax. That gives the diversified model a more visible non-software earnings stream, although the automotive figures are earned in Australian dollars and translated into US dollars for reporting.
Hyundai platform moves from contract win to development
The software business remains the main contributor, producing US$0.78 million of the quarter’s profit before tax. Its recurring revenue base also edged higher, with annualised monthly recurring revenue reaching US$11.8 million and customer diversification AMRR holding at US$1.3 million. Marketplace subscriptions increased by 27 during the quarter to 297.
Connexion is now developing Dealer Lot Management for Hyundai Motor America after securing the exclusive Hyundai supplier role announced earlier this month. The company said a national launch is scheduled for early 2027, but the update does not disclose the contract’s financial value, minimum volumes or expected revenue contribution. That leaves the strategic significance clearer than the near-term earnings impact.
GM renewal remains the key software deadline
Connexion’s agreement with GM US runs to 31 December 2026, and the renewal process is underway. The company described GM Canada’s Enhanced Exposure Program as being in steady state, with its Departments Dashboard and Dealership Calendar well received, while new features including Express Check-in, payments and electronic signatures continue to be rolled out.
The result also carries a cash-flow qualification. Net cash and investments increased to US$4.0 million from US$3.8 million at 30 June, supported in part by investment income, but operating cash flow fell 89% quarter on quarter to US$0.1 million. Hallam Road workshop volumes softened in August and September, which Connexion characterised as seasonal industry weakness; margins and markups remained consistent with, or better than, prior months. The company has not repurchased shares during the quarter and says it is assessing potential acquisitions.
Execution now matters more than the headline growth
Connexion’s near-term agenda is unusually concentrated: secure the GM US renewal, deliver Hyundai’s platform for its planned launch, and improve Hallam Road’s operating performance. The September numbers show that the group can combine software, services and investment earnings in a profitable quarter, but the durability of that mix will depend on contract renewal, Hyundai dealer adoption and whether softer workshop activity proves temporary.
Bottom Line?
The next evidence point is not another record quarter, but whether GM renewal and Hyundai rollout convert today’s earnings momentum into recurring growth.
Questions in the middle?
- Will Connexion renew the GM US agreement before its 31 December expiry, and on what commercial terms?
- How quickly will Hyundai’s Dealer Lot Management platform translate from development into revenue and dealer uptake?
- Were the weaker August and September workshop volumes seasonal, or an early sign of pressure at Hallam Road Automotive?