carsales.com Ltd

CAR Group reported constant-currency revenue growth of 13%, EBITDA growth of 12%, EBITDA margin of 54%, and adjusted NPAT growth of 12%. Segment revenue growth was Latin America +23%, North America +13%, Asia +17%, and Australia +8%. The company also said it converted 95% of EBITDA to operating cash, held CapEx at 10% of revenue, and had net debt to EBITDA of 1.8x. For FY26, guidance remains unchanged at pro forma revenue growth of 12%-14%, pro forma EBITDA growth of 10%-13%, and adjusted NPAT growth of 9%-13%, all in constant currency. Management also flagged a 3%-4% FX headwind in the second half, implying about a 2% difference between constant-currency and AUD growth for FY26 if rates stay where they are.

William Elliot framed the half as proof of CAR Group’s resilient, diversified model and said the business is delivering consistent growth across geographies, products and verticals. He emphasized the strategy of strengthening core marketplaces, extending platforms with new products, and diversifying through disciplined investment, with AI increasingly used to improve engagement and efficiency. His tone was confident and constructive, repeatedly pointing to strong audience growth, market leadership and a “high degree of confidence” in FY26 delivery.

The financial commentary highlighted strong earnings quality and cash conversion, with 95% EBITDA-to-operating-cash conversion and leverage at 1.8x net debt to EBITDA. Management said CapEx held steady at 10% of revenue and that AI-related software development spend was partly capitalized, with $60 million of capitalized software development spend for the half and “close to double that” in P&L spend. The CFO-style remarks also noted a net finance decrease from stable debt and lower rates, a 20.5% effective tax rate, and an interim dividend of $0.425 per share, up 10% on pcp with an 82% payout ratio. Margin pressure was described as modest and tied mainly to investment in Marine in the U.S. and branding/Dealer Direct in South Korea, not to broad cost inflation.

Analysts focused on AI spend, FX, second-half momentum, the U.S. turnaround, and the economics of newer products like Guarantee++ and AI-enabled lead nurturing. Management said AI investment is embedded across the group, with about 30 people initially in the new Brazil-based CG/lab and costs allocated across the group, while CapEx as a percentage of revenue should not change because efficiencies are funding the work. On AI monetization, executives said conversion is improving and that premium AI-integrated CRM users in Brazil receive 20% more leads, while Encar said Guarantee++ is priced 30%-40% above Guarantee 1.0 with costs 10%-20% higher. On FX, they quantified a 3%-4% H2 headwind, and on the U.S. they pointed to improving revenue trends, better packages, and marine/RV seasonality as supports for H2.