Full Year 2026 CAR Group Ltd Earnings Call

August 9, 2026

Speaker #1: The car groups, FY26 results presentation, over the next 30 minutes I'll provide a summary of our results and strategic progress, car groups new CFO Jeff Trumbull will take you through our financial highlights, and then we'll finish with a Q&A session where.

Speaker #1: Enjoyed by members of our global leadership team, and joining Jeff and me in the room here today in Melbourne are Craig Fraser, Managing Director of Car Sales Australia; Eduardo Jusevic, CEO of our newly established region, the Americas, which I'll talk to shortly; SB Kim, the Chief Executive Officer of NCAR and South Korea; and Rachel Scully, our Executive General Manager of Investor Relations.

Speaker #1: Turning first to slide 5, from a financial perspective, the group delivered another excellent year with 12% growth in both pro forma revenue and EBITDA and constant currency.

Speaker #1: Adjusted net profit after tax increased 11%, which was also in constant currency, margins were strong at 56%, and EBITDA to operating cash conversion was also excellent at 100%.

Speaker #1: The next chart reflects the consistency of our financial performance. Across the last 5 years, we've delivered compound double-digit growth in pro forma revenue, pro forma EBITDA, adjusted net profit after tax, and adjusted EPS, and that consistency comes from our strong market positions as well as continued reinvestment in new product development and our brands.

Speaker #1: And that track record extends well and truly beyond 5 years. Car Group has an incredible history of delivering growth through multiple economic cycles. And this reflects our history of sustained innovation as well as the strength of our business model, as well as our M&A strategy of moving into high-growth markets.

Speaker #1: On to our strategy, which remains consistent and at all centers around delivering exceptional experiences for the buyers and sellers who are on our platforms.

Speaker #1: We have strengthened the core of our business. We're extending it into new products and experiences, and we're investing in future growth. And underpinning everything is our relentless focus on operational excellence, with AI increasingly becoming the enabler of this.

Speaker #1: Turning to our operational highlights, the core of our business is consumer engagement, and all of these metrics remain exceptionally strong. We've seen healthy levels of vehicle inventory across our key markets, which provides great choice for our buyers, our dealer base has grown nicely, which proves that our value proposition is resonating with our customer base, and our audience metrics are also very strong, particularly in the US market.

Speaker #1: Our diversified portfolio continues to be a key strength of our business, and this year we brought together North America and Latin America into a single Americas operating region.

Speaker #1: Eduardo Jusevic is leading this new region with the leaders in each country now reporting into him. And as we grow our role in the ecosystem across Brazil, the US, and Chile, bringing these markets under common leadership makes sense.

Speaker #1: We're in similar time zones, and they face common challenges, and it also allows us to carry product and technology innovation from Brazil into the non-auto vehicle segments in the US, where the market is less digitally mature and the opportunity is massive.

Speaker #1: Congrats to Eduardo. On his new role, which is thoroughly deserved and reflects the incredible growth that he's delivered in Brazil over many years, and I'm sure he'll deliver into the Americas over the coming years.

Speaker #1: On to our outlook statement, and based on the momentum we've seen through FY26 and our performance over the first 5 weeks of FY27, we expect another year of excellent growth.

Speaker #1: We are guiding to revenue growth of 11% to 14%, adjusted EBITDA growth of 10% to 13%, and adjusted NPAC growth of 9% to 12%, and all growth metrics are in constant currency, and we remain confident in both the quality of our business as well as the multiple growth opportunities we have in front of us.

Speaker #1: Turning now to some of the strategic highlights from the year. There are 4 key areas that underpin our market leadership. First, it's our number 1 brands, and this significant audience advantage, that we have in every market.

Speaker #1: Second, we are deeply embedded in the vehicle ecosystem. Across dealers, consumers, OEMs, and other commercial partners. We've also strengthened that ecosystem through organic product development as well as targeted acquisitions, and we're going to keep doing this.

Speaker #1: Third, those market positions and integrations give us our proprietary data at significant scale. We're already using this data to create better outcomes for customers, whether that's simplifying payments and financing, helping dealers manage and convert leads through CRM tools and lead nurturing, we're creating safer transactions, through verified buyers and sellers, and we're delivering more personalized solutions for customers, including recommendations.

Speaker #1: And this leads to the fourth advantage, AI is accelerating our ability to turn our data into better products, better tools, and customer experiences. And taken together, these strengths are incredibly hard to replicate.

Speaker #1: They've been built over many, many years, and they are tied directly to the scale and depth of our marketplaces. In terms of our audience, every month more than 52 million people use our platforms, and we hold clear leadership positions in every major market that we operate in.

Speaker #1: That scale creates real value for our dealers, for our OEM partners, and for our consumers, and it generates the data that we use to keep making that experience better.

Speaker #1: Our advantage is built on the depth of our marketplaces, and the infrastructure that sits beneath them, which you can see on this slide here.

Speaker #1: Over many years, we've built deep integrations across CRMs, dealer management systems, finance providers, and other platforms for vehicle industry runs on, and our recent acquisitions in Brazil and the US extend that capability, giving dealers better operational tools and market insight, and making our ecosystems even harder to replicate.

Speaker #1: And for dealers, that means sharper decisions on inventory, pricing, and lead conversion, and for consumers, it means more accurate inventory, more relevant recommendations, easier finance solutions, and more confidence in the transaction.

Speaker #1: And every one of the interactions that people and dealers have on our marketplaces creates richer proprietary data across our ecosystem, and that data is what now powers CG Engine, which is our own AI built on data that no competitor can replicate, which I'm going to talk to on the next slide.

Speaker #1: CG Engine is a key part of our AI strategy. It brings together proprietary marketplace data together with AI models and it runs on our own infrastructure.

Speaker #1: That matters because it puts us in control of how we develop and deploy AI across the group, rather than depending on any single external model or provider.

Speaker #1: And it also protects our intellectual property; it improves cost efficiency, and it also gives us the flexibility to move quickly between models as technology changes.

Speaker #1: It also means the products we build are shaped by how buyers, sellers, and dealers behave within our marketplaces, and it uses data and insights that no one else has.

Speaker #1: I'm going to move now to some of the products that we've launched across our business over the last year. The way consumers research and explore is changing, and it's absolutely broadening the role that we play in the journey.

Speaker #1: We're deepening our role at the top of the funnel in the research and discovery phase, and we're pairing that with our strength at the bottom of the funnel in the transaction.

Speaker #1: So we are with the buyer across the whole journey. When someone's looking for a vehicle, they'll be able to search however they want across our sites.

Speaker #1: They can use filters, they can type in plain language, or just have a conversation. And for consumers using these experiences, we're already seeing higher conversion rates across the board, which you can see on this slide.

Speaker #1: Conversion is up 26% on car sales, we've got 4 times greater lead submission on web motors, and we have 20% higher engagement on NCAR.

Speaker #1: And what that really means is that buyers are finding the right car for them faster. We're also using AI across merchandising and sourcing, to help our dealer customers be more successful.

Speaker #1: Our tools help them find the right stock faster, price it better, and present every listing at its absolute best. And each one of these tools does 1 of 2 things.

Speaker #1: It grows the dealer's profit, or it takes out costs from their business. Smart inquiry qualification is now live across all of our markets. This keeps dealers engaged with buyers through the whole journey, from the first inquiry through to the purchase.

Speaker #1: And it gives faster answers for buyers, and higher quality leads for dealers. And the results are strong. More inquiries converting to sales, and the stock is turning over faster.

Speaker #1: For the next slide, CG Lab is our dedicated AI hub based in Brazil, and it's building the next wave of opportunities across the group.

Speaker #1: The focus is absolutely simple. For CG Lab, it's to solve real customer problems and make transactions easier. And what's in development includes things you see on this slide, which are buyer and seller agents, one-touch listings, and video listings, which we want to see as ubiquitous across our platforms.

Speaker #1: Over time, these will make a real difference to our customers' experience on their platforms. Turning now to some segment highlights from the year, and onto Australia first.

Speaker #1: Australia delivered another very impressive result with revenue up 7%, and EBITDA up 8%. Growth was broad-based and was across all segments of dealer, private, media, and data.

Speaker #1: And as we've all observed, the shift to alternative drivetrains is certainly well and truly underway. As you can see on the chart on this slide, with EV and hybrids gaining real traction in markets.

Speaker #1: This is playing out well for us in 2 ways. First, the used car market for EVs and hybrids is starting to form nicely, and these vehicles are trading through our platforms very similar to internal combustion engine vehicles as they always have.

Speaker #1: Second, we're seeing strong media spend from new OEM entrants, coming to market, and we're building a very sharp go-to-market approach to win them as advertising customers.

Speaker #1: Net growth in media revenue from new entrants is what you can see on this next slide, which is very impressive growth. And on the right-hand side of the page, C2C payments continues to scale very well.

Speaker #1: It's now live across all our verticals, and it's processed over 440 million in transactions since launch. C2C payments gives buyers and sellers a secure way to pay with funds protected until the deal is complete.

Speaker #1: And because the buyers and sellers verify their identity to use the payments platform, and we show that on their listings, trust goes up across the whole platform.

Speaker #1: Over the last 2 years, we've been transforming our dealer software, and that work has come together in a new platform, AutoGate is now known as NextGate.

Speaker #1: It's a next-generation operating system for dealers, built with AI and real-time market insights, drawn from live pricing demand and inventory data from all across the country.

Speaker #1: NextGate brings all our tools into one place, sourcing AI pricing in time to sell insights, conversational decision support, and AI-powered lead management, all together in one platform.

Speaker #1: For dealers, it means smarter buying, faster inventory turnover, and better lead outcomes. Earlier I talked about our ecosystem at the group level, and this is what it looks like on the ground in Australia.

Speaker #1: You're going to see the same model in each of our markets, although it is nuanced and looks a little different in every one because it's shaped by the intricacies of each local market.

Speaker #1: For dealers, we're there through sourcing, pricing, inventory, and lead management, and for consumers, we're alongside them from discovery all the way through to payments and ownerships.

Speaker #1: And every one of those interactions generates proprietary data. And because we sit on both sides of the transaction, each interaction feeds the next, with dealer and consumer data compounding into a better experience for everyone that uses our platform.

Speaker #1: Now onto North America, which delivered another strong result with revenue and EBITDA both up 12% in constant currency, which is a great result. Growth was driven by product improvements.

Speaker #1: In our dealer business, which resulted in yield uplifts, excellent growth in media, also delivered excellent growth in our market lead data business, SSI, as well as growth in our marine segment.

Speaker #1: And pleasingly, our continued investment in advertising and marketing together with a significantly improved user experience has driven material growth in both audience and leads, particularly in Q4 of FY26.

Speaker #1: And what this does is position us well as we begin FY27. Our media business has excellent momentum in the US, which is powered by both a growing customer base and as an ARA media agency business.

Speaker #1: Marine is also performing very well with leads per dealer and audience engagement, both growing nicely and we're also being very targeted with our advertising investment as we're focused on key markets like Florida, which is the largest US voting market.

Speaker #1: Both represent strong growth opportunities for us in FY27 and beyond. The same ecosystem that works in Australia we're building in North America, and we're extending our role across more of the vehicle transaction journey.

Speaker #1: For dealers, we provide the tools that help run their businesses, including CRM, lead management, inventory management, digital retailing, and financing solutions. And then for consumers, we're with them through the whole journey, from research and comparison through to a completed and financed transaction, which is really difficult in these non-auto verticals.

Speaker #1: Now onto Latin America, and once again, we've delivered outstanding growth in FY26. Revenue up 19% and EBITDA up 23% in constant currency. And that growth is even more impressive, given we exited some very low-margin payment factoring revenue in our car-ten business during the second half of the year.

Speaker #1: Our very strong underlying growth was underpinned by audience expansion, our enhanced media business, premium dealer products, and continued yield growth across all parts of our business.

Speaker #1: Wallet, our loyalty product with Santander, is scaling incredibly quickly, we've got more than 11,600 dealers participating, and it's a very powerful loop. Our dealers financing through Santander earn credits, and then those credits are spent on web motors and the dealers become even more engaged with our services.

Speaker #1: And as you can see on the right-hand side, OEM media revenue is growing very strongly, which is being driven by the rollout of our Australian media strategy and products, and also by the success that we're getting with Chinese OEMs that are advertising with us.

Speaker #1: Each year, web motors is covering more of the buying and selling journey. For dealers, that now extends to sophisticated tools across their whole business.

Speaker #1: This results in better inventory decisions and more qualified leads. And for consumers, we're making it easier for them to list and transact. What we're building in Brazil is an incredibly powerful ecosystem.

Speaker #1: For dealers, OEMs, and consumers. Now onto Asia, which delivered another strong result with revenue up 15% and EBITDA up 14% in constant currency. Growth was driven by our 3 flagship products, which are guaranteed NCAR Home and Dealer Direct.

Speaker #1: And we continue to evolve and improve all these 3 products for both dealers and consumers, and that's what's driving the growth in the business.

Speaker #1: Onto the next slide, adoption of our guarantee++ Dealer Direct and NCAR Home products as mentioned before, all continue to accelerate. And these products certainly strengthening NCAR's role throughout the transaction journey, and they create significant future runway for growth for this business for many years.

Speaker #1: Now onto the NCAR ecosystem. NCAR is clearly the number 1 vehicle marketplace in South Korea, and it's evolved from a listings business into a transaction platform for a continued product evolution.

Speaker #1: And for dealers, we help them sell faster, and with more profit through our trusted inspections. And for consumers, we deliver an end-to-end transaction, which includes finance and warranties.

Speaker #1: Now that's the end of the segment section. I'll hand over to Jeff to take you through the financials.

Speaker #2: Thanks, Will. And good morning, everyone. I'll take you to slide 36 and the summary financials. As Will highlighted, the group delivered another year of excellent performance in FY26 with 12% growth in pro forma revenue and EBITDA, and 11% growth in adjusted net profit after tax on a constant currency basis.

Speaker #2: In line with our FY26 guidance. Low EBITDA, all items were within our previously guided ranges for the year. Depreciation and amortization primarily relates to software development, leases, and building fit-outs.

Speaker #2: The increase in FY26 reflects our continued investment across all key markets to support future growth. Net finance costs were lower than the prior year, with lower interest rates, more than offsetting the increase in borrowings.

Speaker #2: The effective tax rate in FY26 was 20%, marginally higher than FY25, due to the growth in higher tax regions and the timing of US tax loss utilization.

Speaker #2: Though we did receive some incremental tax benefits in the US as a result of the one big beautiful bill act. The board has declared a final dividend of 43.5 cents per share, taking full-year dividends to 86 cents per share, representing an 8% increase on FY25 dividends in line with adjusted NPAC growth in Australian dollars.

Speaker #2: Full-year dividends equate to an 80% payout of adjusted NPAC. Turning now to the segments and as discussed earlier, revenue and earnings increased across every major segment.

Speaker #2: In line with our guidance at the start of the year, Australia delivered high single-digit growth in revenue and EBITDA, and North America Latin America and Asia all delivered another year of double-digit growth across both of these metrics.

Speaker #2: These results demonstrate the strength and diversity of our global portfolio. Turning now to EBITDA margins. Group EBITDA margins remain strong at 56%, consistent with FY25, but we continued investing in future growth.

Speaker #2: We have strong operating leverage within our business model, and we continue to maintain our disciplined approach to capital allocation and cost management. We did see efficiencies in the business during FY26, particularly within our development teams.

Speaker #2: Which allowed us to accelerate product delivery and invest in our brands and other initiatives to drive future growth. On a segment basis, we saw margin improvements in Australia and Latin America.

Speaker #2: North American margins remained stable at 60% as we invest in marine expansion, and Asia declined slightly to 45% as we opened new inspection centers and scaled Dealer Direct.

Speaker #2: Overall, we're very pleased with the balance between growth and profitability. Turning now to the cash flow and balance sheet. Cash generation remains a major strength of CAR Group, and our cash conversion for FY26 finished at 100%, which was an excellent outcome.

Speaker #2: Our balance sheet remains in a strong position, with leverage steady at 1.7 times net debt to EBITDA. Providing flexibility for future investment. After the end of the financial year, we completed a refinancing of our bank debt facilities, which extended tenor and added some additional capacity for future growth.

Speaker #2: Growth capex associated with internal software development remained stable at 10% of revenue. We did see a small increase in other capital expenditure, associated with new leases in the US, Brazil, and Korea.

Speaker #2: Turning finally to Outlook and a bit more detail, we expect another year of excellent growth in FY27. On a constant currency basis, we're guarding to revenue growth of 11 to 14%, adjusted EBITDA growth of 10 to 13%, and adjusted NPAC growth of 9 to 12%.

Speaker #2: A market we expect Australia to deliver high single-digit revenue growth, and we expect continued double-digit revenue growth in North America, Latin America, and Asia.

Speaker #2: On margins, we expect operating leverage in Australia and Latin America offset by slight margin contraction in North America and Asia as we continue to focus on building out our investment in marine in the US and Dealer Direct and NCAR Home in Korea.

Speaker #2: Below EBITDA, we expect net finance costs to be between 66 and 72 million, depreciation and amortization is expected to grow at between 16 and 19%, and the group effective tax rate is expected to be between 20 and 21%.

Speaker #2: On capex, AI is helping us develop software more efficiently. We're currently reinvesting those benefits into accelerating our product roadmap. And whilst that creates flexibility over time, we continue to expect software development capex to be around 10% of revenue for FY27.

Speaker #2: I'll now hand you back to Will to wrap up.

Speaker #1: Thanks, Jeff. FY26 was another excellent year for CAR Group. We delivered strong financial results, expanded our market leadership positions, and more importantly, continued investing for future growth.

Speaker #1: AI is increasingly improving customer experiences on our platforms, and it's also helping us to operate more effectively across the group. We enter FY27 with strong momentum and confidence in the opportunities ahead.

Speaker #1: And now I'm happy to open up to Q&A.

Speaker #3: Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2.

Speaker #3: If you're on a speakerphone, please pick up the handset to ask your question. We ask today that you please keep to three questions per person, after which you may then rejoin the queue.

Speaker #3: Your first question today comes from Enzo Rakowski, with E&P. Please go ahead.

Speaker #4: Morning, Will. Morning, Jeff. So my first question. All right, guys. So my first question is just looking at TI, and there was a slight revenue deceleration in the second half.

Speaker #4: So I think it was 11% or 10 to 11% in 2H, given rounding versus over 13% in the first half. I guess, can you talk to some of the reasons behind that deceleration?

Speaker #4: I don't know if it was the market which drove it, whether it was other factors. And then your comfort level around delivery of double-digit growth into FY27, especially given that you won't have the acquisition benefit.

Speaker #4: And I've got a couple of others, but do you want me to give them to you now, or wait for the answer?

Speaker #1: No, no worries. Why don't we take that one first, Enzo, and I'll get Eduardo to answer that, given his new role looking after the Americas?

Speaker #2: Hi, Enzo. Just to summarize here, in terms of the difference between the second half and first half, it's a small difference. We are talking about media campaigns, mostly this.

Speaker #2: That's an impact. So no other reasons. And the other question it was? Oh, and the sorry. And the confidence, I'm very confident, to be honest.

Speaker #2: I just assumed the role, but I'm very excited with the US. And all the opportunities that we can have there, in terms of the market, in terms of the company that I face it.

Speaker #2: So I'm very confident to deliver this double-digit growth.

Speaker #4: And Eduardo, I may be asking the question slightly differently. Is there I mean, do you see any specific changes in what might happen between second half 26 and into 27, or is it, from your perspective, I don't know, is it more of the same?

Speaker #2: No, we are probably doing expanding a little bit more in terms of the ecosystem. The strategy over there in US, I think the plan is very good, to be honest.

Speaker #2: But the ecosystem is the main strategy. And right now, we have the DP360, the CRM, all this connected in the marketplace, all the things that we are doing in terms of AI connecting the marketplace with the DP360.

Speaker #2: So to be honest, I think TI is going to be the same playbook that we did in the web motors. With a lot of things in terms of products that we can develop.

Speaker #2: But for sure, the main strategy is going to create and build and to get stronger in terms of the ecosystem.

Speaker #4: Okay, great. And then my second question, probably for you as well, Eduardo. Are you able to quantify the impact of the sale of the car 10 business on web motors?

Speaker #4: It probably would help us just understand how much it's impacted revenues and can you talk about the rationale for the sale?

Speaker #2: Oh, we want to give a specific number. We didn't disclose this, but in terms of the rationale, it's very clear. It's a business. When we acquired car 10, came with the credit card machine business.

Speaker #2: And it's a business that has low margin. So it doesn't make any sense to keep with a business with this low margin. So that's the decision why we changed it.

Speaker #2: It's not going to impact anything the rest of the company. And all the strategy with the products for the ownership of the car. But of course, considering that it's a low margin product and I'm not seeing in Brazil looking ahead that the market's going to change in terms of spreads of this market and this kind of things, that's the reason that we our decision it was to close.

Speaker #4: Okay, thank you. And my final question is just another one on the second half trajectory. Sort of private in the domestic operations also slowed down a little bit in the second half.

Speaker #4: I suppose I'm just conscious that inventory also on the site has come back quite a bit over the past 6 to 12 months. So can you talk about the reasons for that private deceleration and similarly to my first question, around TI, how do you think about the private trajectory into FY27?

Speaker #1: Yeah, no worries, Enzo. I assume that's talking about Australia. So I'll give that one to Craig.

Speaker #4: Correct. That's right.

Speaker #1: Yeah, good morning. So just to quickly cover off on inventory, we're definitely seeing a shift now into the dealer ecosystem in terms of total inventory.

Speaker #1: And as of today, we're about 147,000 listings. For dealer inventory, so there has been a shift and other things to call out there is we had a very strong year with our instant offer business, which is bringing private listings and flowing that through to our dealer ecosystem.

Speaker #1: We think about total inventory. One of the key areas that we've been heavily focused on over the last six months is really making sure we're delivering optimal consumer experience.

Speaker #1: And what that means is we've tied it up a lot of listings. So if the ads weren't updated within a 30-day period, we will removing those from the site.

Speaker #1: And so we've had a lot of focus on that. And while we've done that, it's to make sure that sellers are returning buyer inquiries.

Speaker #1: And we've made sure that we've improved the overall consumer experience with making sure that inventory is updated every 30 days.

Speaker #4: Okay, got it. And sorry, that's I mean, that's quite useful to understand the dynamic. Are you finding a sort of a weak underlying market as well, contributing?

Speaker #4: Or is it mainly that initiative?

Speaker #1: Yeah, I would say that the market conditions overall have improved. We had a period there in the second half where consumer experience and sentiment and we've now seen that rebound.

Speaker #1: So lead volumes have been strong in the start of 27. Site traffic's been really quite buoyant. So overall, we have a very healthy marketplace currently.

Speaker #4: Okay, great. Thank you.

Speaker #3: Your next question comes from Eric Choi with Baron Joey. Please go ahead.

Speaker #1: Hey, morning team. Could I do three as well? Might double up a bit with Enzo, but sort of just try to do some math around some of it.

Speaker #1: So yeah, if I could step you through some of it. Maybe on the US, you guys are guiding to double-digit US revenue growth in FY27.

Speaker #1: But if you think about what you guys did in FY26, I think you guys did 12%, maybe there would have been a couple of percent in there from M&A.

Speaker #1: Maybe a percent from pull forward of price increases as well. I guess what that means is, from an organic standpoint, are you guiding to an acceleration in the US business in FY27 versus 26?

Speaker #1: And you sort of talked around it earlier, but can you comment specifically? Is there a new product that's helping the 27 growth rates? Media marine and data, are they all getting bigger and kind of bigger percentages on a bigger base?

Speaker #1: You could help us with that, please. I'll let Eduardo answer that one.

Speaker #2: Of course. Hi, Eric. In terms of growth, and of course, we have the price increase that contributes, of course, marine, media grew very strongly.

Speaker #2: And I really believe that we can keep this growth for the financial year 27. So it was a combination between price increase and, of course, the other segments that I mentioned before, media and marine, softer business.

Speaker #2: It's growing in a very good level. So that was the reasons the in terms of the segments for 26. And talking about 27, I think we can keep growing because we have a lot of things to develop in terms of products.

Speaker #2: I'm going just to give some of them. For example, we have a lot of things to do in terms of website in terms of iMotors that we are going to implement at 360 with AI, a lot of things that we are doing in terms of improvement in the platform, lead nurturing that we can still keep growing.

Speaker #2: Video 360 that we are going to develop for the next year. All the AI search improvements CRM, light version, SSI. So I have a list of products we are going to stop here.

Speaker #2: But I have a lot of levers to keep growing the business in financial year 27.

Speaker #1: I know.

Speaker #4: That's great, Eduardo. I noticed you didn't mention M&A at all. So do we just assume M&A isn't a contributor in 27 for the US?

Speaker #2: We are not considering this. We are very open all the time to see opportunities, for sure. But I'm considering I'm just focused right now in the development products and the organic growth.

Speaker #4: Gotcha. Sorry. That wasn't actually my second. Sorry. But just can I just follow up on Catherine? I know you said you wouldn't. Comment on a specific number.

Speaker #4: It was just kind of trolling through your historic disclosures and we know Cartan and Loop together were probably about 15% of WebMotor revenues. And I know you're not divesting all the Cartan, just the factoring or sort of exiting the factoring bit within that.

Speaker #4: But I don't know if we assume Cartan's half of that 15% and maybe factoring a portion of that. Maybe it's worth low single-digit to mid-single-digit?

Speaker #4: So the point is, would that second half WebMotors growth rate? I think you guys probably about 15%. Would that have been closer to kind of 20% if you didn't factor?

Speaker #4: If there wasn't that exit of the factoring business?

Speaker #1: No, I think that's right, Eric. I'll take that one. So I think the best way to describe it would be the growth rate in the first half, underlying growth rate was pretty similar in the second half if you exclude the exit of the Cartan factoring revenues.

Speaker #4: Nice one. Can I just take a step back, final question? Sorry. For all the minutia. But if I were to good result and if I were to pick at anything, sort of like Enzo was flagging, people kind of looking at the second half growth rates versus first half growth rates.

Speaker #4: But if I just look at everything that you've mentioned, they all appear non-structural, like kind of Cartan volumes in AU, bit of media in US.

Speaker #4: Is that right? Do you think the broadly the differences in the second half versus first half rates all pertain to macro? And have you sorry to make you comment again.

Speaker #4: Is this what gives you confidence in that 27 re-acceleration?

Speaker #1: No, I think that's a fair comment, Eric. I mean, obviously, the overall performance for the year, we think, was strong. Second half was marginally lower than first half.

Speaker #1: And the main difference was the exit of Cartan, which was intentional. And then in the last quarter of the financial year, we saw the impact of the around more somewhat mainly in Australia and South Korea.

Speaker #1: And these were relatively small, but things have certainly improved since then. And that's clearly giving us the confidence to go out with the outlook statement that we've got.

Speaker #1: And then outside of that, the product development, the initiatives, and all of the growth development we have in the business is all giving us the confidence.

Eduardo Jurcevic: For list of products, we are going to stop here, but I have a lot of levers to keep growing the business in financial year 2027.

Speaker #1: We are not going to stop here, but I have a lot of levers to keep growing the business in financial year 27.

Speaker #2: I know. That's great, Eduardo. I noticed you didn't mention M&A at all, so do we just assume M&A isn't a contributor in 27 for the U.S.?

[Analyst]: I know. That's great, Eduardo. I noticed you didn't mention M&A at all. Do we just assume M&A isn't a contributor in 2027 for the US?

Speaker #1: So we feel good about 27.

Speaker #4: Good one. Thanks, Will.

Speaker #1: Thanks, Eric.

Speaker #3: Your next question comes from Surhash Singh with Bank of America. Please go ahead.

Speaker #1: No. We are not considering this. We are very open all the time to see opportunities, for sure, but I'm considering I'm just focused right now in the development products and the organic growth.

Eduardo Jurcevic: No. We are not considering this. We are very open all the time to see opportunities for sure. I'm just focused right now in the development products and the organic growth.

Speaker #5: Hey, Will. And team, a couple of questions from my side. One on private listings. Very steady performance, 4% growth for the full year. In context of concerns around declining private listings in Australia.

Speaker #2: Gotcha. Sorry, that wasn't actually my second. Sorry. But just—can I just follow up on CAR team? I know you said you wouldn't. Comment on a specific number.

[Analyst]: Got you. Sorry, that wasn't actually my second. Sorry. Can I just follow up on Car 10? I know you said you wouldn't comment on a specific number. I was just trawling through your historic disclosures and, we know Car 10 and Loop together were probably about 15% of Webmotors revenues.

Speaker #5: My question is, when we think about FY27 growth rate for private listings, to what extent is should the growth rate be driven by pricing versus volumes?

Speaker #2: It was just kind of trolling through your historic disclosures and, like, we know CAR 10 and Loop together. We're probably about 15% of WebMotor revenues, and I know you're not divesting all the CAR 10 just the factoring or sort of exiting the factoring bit within that.

Speaker #5: And then instant offer adoption into FY27? And then are you pricing different can you talk a little bit about your pricing strategy as well?

[Analyst]: I know you're not divesting all the Car 10, just the factoring or exiting the factoring bit within that. I don't know, if we assume Car 10's half of that 15% and maybe factoring a portion of that, maybe it's worth low single digit to mid single digit.

Speaker #2: But I don't know if we assume, like, CAR 10's half of that 15% and maybe factoring a portion of that. Maybe it's worth low single-digit to mid-single-digit?

Speaker #5: Are you pricing more expensive cars differently than high cheaper cars on the private side? Second, on just second one on Brazil, given that you have now exited Cartan's low margin business, how should we think about the margin profile of the LATAM business?

Speaker #2: So the point is, would that second half WebMotor's growth rate—I think you guys probably about 15%—would that have been closer to kind of 20% if you didn't factor?

[Analyst]: The point is, would that H2 Webmotors' growth rate, I think you guys probably about 15%, would that have been closer to kind of 20% if you didn't factor, if there wasn't that exit of the factoring business?

Speaker #2: If there wasn't that exit of the factoring business?

Speaker #1: No, I think that's right, Eric. I'll take that one. So I think the best way to describe it would be, you know, the growth rate in the first half underlying growth rate was pretty similar in the second half if you exclude the exit of the CAR 10 factoring revenues.

Will Elliott: No, I think that's right, Eric. I'll take that one. I think the best way to describe it would be, the growth rate in the H1, underlying growth rate was pretty similar in the H2 if you exclude the exit of the Car10 factoring revenues.

Speaker #5: It's around 38% this year. You've got it for margin expansion in that geography. Should we expect closer to 40% margins? At the LATAM level?

Speaker #5: Thank you.

Speaker #1: No worries. Thanks, Surhash for your questions. I'll let Craig say the first one, then Eduardo, you can do the second one.

Speaker #2: Nice one. Can I just take a step back? Final question. Sorry. For all the minutia. But if I were to, you know, good result and if I were to pick at anything, sort of like Ancho was flagging, people kind of looking at the second half growth rates versus first half growth rates.

[Analyst]: Nice one. Can I just take a step back? Final question, sorry for all the minutiae. Good result and if I were to pick at anything, like Andrew was flagging, people looking at the H2 growth rates versus H1 growth rates. If I just look at everything that you've mentioned, they all appear non-structural, like Car10, volumes in AU, Bitamedia in US. Is that right? Do you think broadly the differences in the H2 versus H1 rates all pertain to macro? Have you, sorry to make you comment again, is this what gives you confidence in that 2027 re-acceleration?

Speaker #6: Yeah, thanks for your question. So in terms of dynamic pricing and we're constantly looking at our pricing structures for private sell, and to answer your question, based on the asset value, we'll adjust pricing accordingly.

Speaker #6: If we think about average yield, I mean, we are over $200 on average yield in private sell at the moment. So which is very healthy.

Speaker #2: But if I just look at everything that you've mentioned, they all appear non-structural, like kind of CAR 10 volumes in AU, bit of media in U.S.

Speaker #6: And if we think about momentum as we're going into 27, IO is performing well for us. And overall volume on marketplace is performing quite well as we head into 27.

Speaker #2: Is that right? Like, do you think the broadly the differences in the second half versus first half rates all pertain to macro? And have you—sorry to make you comment again—is this what gives you confidence in that 27 re-acceleration?

[Analyst]: Is that right? Do you think broadly the differences in the H2 versus H1 rates all pertain to macro? Have you, sorry to make you comment again, is this what gives you confidence in that 2027 re-acceleration?

Speaker #2: And the second question is about the margin expansion. What I can say about this is that it's the main goal that I have in terms of WebMotors to keep, of course, increasing the margin expansion.

Speaker #1: No, I think that's a fair comment, Eric. I mean, obviously the overall performance for the year we think was strong, second half was marginally lower than first half, and the main difference was the exit of CAR 10, which was intentional.

Will Elliott: No, I think that's a fair comment, Eric. Obviously the overall performance for the year we think was strong. H2 was marginally lower than H1, and the main difference was the exit of Car10, which was intentional. In the last quarter of the financial year, we saw the impact of the Iran war, somewhat, mainly in Australia and South Korea. These were relatively small, but things have certainly improved since then, and that's clearly giving us the confidence to go out with the outlook statement that we've got. Outside of that, the product development, the initiatives and all of the growth development we have in the business is all giving us the confidence. We feel good about 2027.

Speaker #2: Things that we have been doing in the last few years. But of course, we have opportunities. We still have opportunities in Brazil to keep investment, to keep reinvesting the money.

Speaker #1: And then in the last quarter of the financial year, we saw the impact of the around more somewhat mainly in Australia and South Korea, and these were relatively small but things have certainly improved since then, and that's clearly giving us the confidence to go out with the outlook statement that we've got.

Speaker #2: So my short answer is yes, we can expect to keep expanding the margin. But of course, I'm not going to accelerate in a way that we are going to lose opportunities in terms of market investments and all this.

Will Elliott: These were relatively small, but things have certainly improved since then, and that's clearly giving us the confidence to go out with the outlook statement that we've got. Outside of that, the product development, the initiatives and all of the growth development we have in the business is all giving us the confidence. We feel good about 2027.

Speaker #5: Understood. Eduardo, one last question on Brazil. Santander is talking a little bit about their change in strategy with respect to Brazilian loan growth. They seem to be prioritizing credit quality of loan growth based on the investor day.

Speaker #1: And then outside of that, you know, the product development, the initiatives, and all of the growth development we have in the business is all giving us the confidence, so we feel good about 27.

Speaker #2: Good one. Thanks, Will.

[Analyst]: Good one. Thanks, Will.

Speaker #1: Thanks, Eric.

Will Elliott: Thanks, Eric.

Speaker #3: Your next question comes from Sreehash Singh with Bank of America. Please go ahead.

Speaker #5: Any color on that? Are you seeing what kind of finance income growth in Brazil should we expect into FY27 to the extent you can talk about it?

Operator: Your next question comes from Suresh Singh with Bank of America. Please go ahead.

Operator: Your next question comes from Sriharsh Singh with Bank of America. Please go ahead.

Speaker #4: Hey, Will. And team, a couple of questions from my side. One on private listings. Very steady performance, 4% growth for the full year. In context of concerns around declining private listings in Australia.

Suresh Singh: Hey, Will, and team. A couple of questions from my side. One on private listings. A very steady performance, 4% growth for the full year, in context of concerns around declining private listings in Australia. My question is, when we think about FY27 growth rate for private listings, to what extent should the growth rate be driven by pricing versus volumes? Instant Offer adoption, into FY27. Can you talk a little bit about your pricing strategy as well? Are you pricing more expensive cars differently than cheaper cars on the private side? Just second one on Brazil. Given that you've now exited Car10's low margin business, how should we think about the margin profile of the LatAm business? It's around 38% this year. You've guided for margin expansion in that geography.

Sriharsh Singh: Hey, Will, and team. A couple of questions from my side. One on private listings. A very steady performance, 4% growth for the full year, in context of concerns around declining private listings in Australia. My question is, when we think about FY27 growth rate for private listings, to what extent should the growth rate be driven by pricing versus volumes? Instant Offer adoption, into FY27.

Speaker #5: Thank you.

Speaker #2: Thanks for the question. In terms of credits and financing markets in Brazil, of course, we mentioned this in the last meetings about this. We expect with this increase of interest rates that have been doing the last years, could impact in the markets.

Speaker #4: My question is, when we think about FY 27 growth rate for private listings, to what extent is—should the growth rate be driven by pricing versus volumes?

Speaker #2: But we didn't see this. The market is very resilient in Brazil. The credit market still strong in my view. And now we are in a completely different mood.

Speaker #4: And then, instead, offer adoption into FY 27? And then, are you pricing different—like, can you talk a little bit about your pricing strategy as well?

Speaker #2: As you know, we decreased the interest rate for 14% in the last central bank meeting. Which opens an opportunity looking ahead in terms of keep growing the financing and the market.

Sriharsh Singh: Can you talk a little bit about your pricing strategy as well? Are you pricing more expensive cars differently than cheaper cars on the private side? Just second one on Brazil. Given that you've now exited Car10's low margin business, how should we think about the margin profile of the LatAm business? It's around 38% this year. You've guided for margin expansion in that geography. Should we expect closer to 40% margins at the LatAm level? Thank you.

Speaker #4: Like, are you pricing more expensive cars differently than high—than cheaper cars on the private side? Second, on just second one on Brazil, given that you have now exited CAR 10's low margin business, how should we think about the margin profile of the LATAM business?

Speaker #2: So when I look all the last 12 months for sure that the tough period stayed behind. And looking ahead, I see more opportunities in terms of financing than and in terms of keep growing the business.

Speaker #4: It's around 38% this year. You've guided for margin expansion in that geography. Should we expect closer to 40% margins? At the LATAM level? Thank you.

Speaker #2: So no issues in my side. It's normal volatility. We have been seeing this in Brazil for a long period of time. And this interest rate coming up and down.

Suresh Singh: Should we expect closer to 40% margins at the LatAm level? Thank you.

Speaker #2: And I still believe that could be a huge lever for the future.

Speaker #1: No worries. Thanks, Sreehash for your questions. I'll let Craig take the first one, and then then Eduardo, you can do the second one.

Will Elliott: No worries. Thanks, Sriharsh, for your questions. I'll let Craig take the first one, then Eduardo you can do the second one. Yeah. Thanks for your question. In terms of dynamic pricing, we're constantly looking at our pricing structures for private sale. To answer your question, based on the asset value, we'll adjust pricing accordingly. If we think about average yield, we are over AUD 200 on average yield in private sale at the moment, which is very healthy. If we think about momentum as we're going into 2027, IO is performing well for us and overall volume on marketplace is performing quite well as we head into 2027.

Will Elliott: No worries. Thanks, Sriharsh, for your questions. I'll let Craig take the first one, then Eduardo you can do the second one.

Speaker #5: That's super clear. Thank you. Thank you.

Speaker #5: Yeah, thanks for your question. So in terms of dynamic pricing, and we're constantly looking at our pricing structures for private sell, and to answer your question, based on the asset value, we'll adjust pricing accordingly.

Craig Fraser: Yeah. Thanks for your question. In terms of dynamic pricing, we're constantly looking at our pricing structures for private sale. To answer your question, based on the asset value, we'll adjust pricing accordingly. If we think about average yield, we are over AUD 200 on average yield in private sale at the moment, which is very healthy. If we think about momentum as we're going into 2027, IO is performing well for us and overall volume on marketplace is performing quite well as we head into 2027.

Speaker #3: Your next question comes from Surhash Ahmed with Citi. Please go ahead.

Speaker #4: Thanks. Maybe at first, just on Australia. I mean, Deela did slow down in the second half. Could you just break down the growth between lead volumes and, I guess, depth in the second half?

Speaker #5: If we think about average yield, I mean, we are over $200 on average yield in private sell at the moment, so which is very healthy.

Speaker #4: And just in terms of looking at 27, given you're seeing improving trends, are you pushing through similar price increases for next year? And just clarifying as well, your guidance does say private volumes are expected to grow next year.

Speaker #5: And if we think about momentum as we're going into 27, IO is performing well for us, and overall volume on marketplace is performing quite well as we head into 27.

Speaker #4: Just confirming that as well.

Speaker #6: And the second question is about the margin expansion. What I can say about this is that it's the main goal that I have in terms of WebMotors to keep, of course, increasing the margin expansion.

Will Elliott: The second question is about the margin expansion. What I can say about this is that, it's the main goal that I have in terms of Webmotors should keep, of course, increasing the margin expansion. Things that we have been doing in the last few years. Of course, we still have opportunities in Brazil to keep investment, to keep reinvesting the money. My short answer is yes, we can expect to keep expanding the margin, but of course, I'm not going to accelerate, in a way that we are going to lose opportunities in terms of market investments and all this.

Eduardo Jurcevic: The second question is about the margin expansion. What I can say about this is that, it's the main goal that I have in terms of Webmotors should keep, of course, increasing the margin expansion. Things that we have been doing in the last few years.

Speaker #1: I'll jump in. I'll say that.

Speaker #6: Yeah. So it's Craig here. So I'll cover that off. So if we think about the second half, we did see lead volumes come off for a short period of time off the back of the RR war.

Speaker #6: Things that we have been doing in the last few years. But of course, we have opportunities. We still have opportunities in Brazil to keep investment, to keep reinvesting the money.

Speaker #6: But we've seen that rebound nicely as we head into 27. If we think about price potential price change for 27, there's a number of factors that we take into consideration.

Eduardo Jurcevic: Of course, we still have opportunities in Brazil to keep investment, to keep reinvesting the money. My short answer is yes, we can expect to keep expanding the margin, but of course, I'm not going to accelerate, in a way that we are going to lose opportunities in terms of market investments and all this.

Speaker #6: So my short answer is yes, we can expect to keep expanding the margin. But of course, I'm not going to accelerate in a way that we are going to lose opportunities in terms of market investments and all this.

Speaker #6: Deela Health, general market conditions, product innovation, etc. We haven't finalized any position in terms of price change for 27 at this stage. We'll work through that in the coming months.

Speaker #6: So in the second part of your question was around private sell.

Speaker #4: Understood. Eduardo, one last question on Brazil. Santander is talking a little bit about their change in strategy with respect to Brazilian loan growth. They say to be prioritizing credit quality over loan growth based on the investor day.

Speaker #1: Just around private volumes and expectations into next year.

Suresh Singh: Understood. Eduardo, one last question on Brazil. Santander is talking a little bit about their change in strategy with respect to Brazilian loan growth. They seem to be prioritizing credit quality over loan growth based on the investor day. Any color on that? Are you seeing what kind of finance income growth in Brazil should we expect into FY27, to the extent you can talk about it? Thank you.

Sriharsh Singh: Understood. Eduardo, one last question on Brazil. Santander is talking a little bit about their change in strategy with respect to Brazilian loan growth. They seem to be prioritizing credit quality over loan growth based on the investor day. Any color on that? Are you seeing what kind of finance income growth in Brazil should we expect into FY27, to the extent you can talk about it? Thank you.

Speaker #6: Yeah. So if we think about private volumes as we start in 27, average daily has been really quite strong. And we see that momentum continuing as we accelerate the value we're providing to private sellers.

Speaker #4: Got it. Second one, maybe for Will. Will, just in the high level, I mean, interesting that you are upside the debt facility. Just keen to understand how you think about M&A on the back of that, or whether that's signaling something.

Speaker #4: Any color on that? Are you seeing, like, what kind of finance income growth in Brazil should we expect into FY 27 to the extent you can talk about it?

Speaker #4: Thank you.

Speaker #4: And in terms of M&A, it's interesting that you are buying some of these dealers or the CRMs, right, in the US and also, I think, it looks like you bought something in Brazil as well.

Speaker #6: Thanks for the question. In terms of credits and financing markets in Brazil, of course, we mentioned it in the last meetings about this. You know, we expect with this increase of interest rates that have been doing the last years, it could impact the markets, but we didn't see this.

Eduardo Jurcevic: Thanks for the question. In terms of credits and financing markets in Brazil, of course, we mentioned it in the last meetings about this. We expect with this increase of interest rates that had been doing the last years could impact in the markets. If we didn't see this, the market is very resilient in Brazil. The credit market is still strong, in my view. Now we are in a completely different mood. As you know, we decreased the interest rate for 14% in the last central bank meeting, which opens an opportunity looking ahead in terms of keep growing the financing in the market. When I look all the last 12 months, for sure that the tougher period stayed behind. Looking ahead, I see more opportunities in terms of financing than in terms of to keep growing the business. No issues in my side.

Speaker #4: Just keen to understand how you think about the ecosystem. Is that dealer side something you want to strengthen, especially given AI?

Speaker #1: Yeah. No, thanks for the question, Surhash. I think, I mean, definitely from an M&A perspective, over the last two years, we have had a more concerted focus thinking about our role in the ecosystem and how we embed ourselves even closer with our dealer customers and our OEM customers.

Speaker #6: You know, the market's various. In Brazil, the credit market still strong in my view. And now we are in a completely different mood. As you know, we decreased the interest rate for 14% in the last central bank meeting.

Eduardo Jurcevic: Now we are in a completely different mood. As you know, we decreased the interest rate for 14% in the last central bank meeting, which opens an opportunity looking ahead in terms of keep growing the financing in the market. When I look all the last 12 months, for sure that the tougher period stayed behind. Looking ahead, I see more opportunities in terms of financing than in terms of to keep growing the business. No issues in my side.

Speaker #6: Which opens an opportunity looking ahead in terms of keep growing the financing and the market. So when I look at all the last 12 months, for sure that the toughest period stayed behind.

Speaker #1: And part of that is reflected in some of those small acquisitions of the CRM businesses because we can provide services, not just as a marketplace, as an advertising source, but through the whole lifecycle of the transaction for a dealer.

Speaker #6: And looking ahead, I see more opportunities in terms of financing than in terms of keep growing the business. So no issues in my side.

Speaker #1: And the other thing is it's not just an M&A strategy. It's also an organic strategy. So if you think about what Craig is doing with Nexgate, that's really extending our dealer operating system into more parts of the dealer's business to essentially help them take cost out and maximize profitability.

Speaker #6: You know, it's normal volatility. We have been seeing this in Brazil for a long period of time. And you know, these interest rates coming up and down.

Eduardo Jurcevic: It's normal volatility. We have been seeing this in Brazil for a long period of time, and these interest rates coming up and down. I still believe that could be a huge lever for the future.

Speaker #6: And I still believe that could be a huge lever for the future.

Speaker #4: That's so clear. Thank you. Thank you.

Speaker #1: So that's the focus for us. In terms of our overall M&A strategy, no signaling from the debt refinance. That's just business as usual. And our overall M&A strategy hasn't changed.

Suresh Singh: That's super clear. Thank you.

Sriharsh Singh: That's super clear. Thank you.

Speaker #3: Your next question comes from Sreehash Ahmed with Citi. Please go ahead.

Operator: Your next question comes from Siraj Ahmed with Citi. Please go ahead.

Speaker #4: Thanks. Maybe at first, just on Australia. I mean, Dealer did slow down in the second half. Could you just break down the growth between lead volumes and, I guess, depth in the second half?

Siraj Ahmed: Thanks. Maybe the first one just on Australia. Dealer did slow down in the H2. Could you just break down the growth between lead volumes and, I guess, depth in the H2? Just in terms of looking at 2027, given you're seeing improving trends, are you pushing through similar price increases for next year? Just clarifying as well, your guidance does say private volumes are expected to grow next year, just confirming that as well.

Speaker #4: Got it. And last one, just on TA for Eduardo. So that traffic growth in fourth quarter, that's extremely strong. What's driving that? And do you reckon I mean, market conditions seem quite soft, right, especially in our recent right now.

Speaker #4: But given the traffic growth, does that give you more confidence in the price increases for next year, or is that something else that actually helps with?

Speaker #4: Just confirming that as well.

Speaker #5: I'll jump in. I'll try that. Yeah. So it's Craig here. So I'll cover that off. So if we think about the second half, we did see lead volumes come off for a short period of time off the back of the RRM war.

Will Elliott: I'll jump in. I'll take that. It's Craig here. I'll cover that off. If we think about the H2, we did see lead volumes come off for a short period of time off the back of the RM war. We've seen that rebound nicely as we head into 2027. If we think about potential price change for 2027, there's a number of factors that we take into consideration, dealer health, general market conditions, product innovation, etc. We haven't finalized any position in terms of price change for 2027 at this stage. We'll work through that in the coming months. Sorry, the second part of your question was around private sale? Just around private volumes and expectations into next year. If we think about private volumes as we start in 2027, average daily's been really quite strong.

Speaker #4: Thanks.

Speaker #2: Thanks, Surhash. In terms of the markets, what I'm very happy to see is the last half, the last quarter, sorry, that we are seeing improvements in terms of lead volumes, audience visits.

Speaker #5: But we've seen that rebound nicely as we head into 27. If we think about price, potential price change for 27, there's a number of factors that we take into consideration.

Speaker #2: So that's the reason that I'm feeling that we are very close probably to the bottom. And we can expect that is going to start a recovery.

Speaker #5: Dealer health, general market conditions, product innovation, et cetera. We haven't finalized any position in terms of price change for 27 at this stage. We'll work through that in the coming months.

Speaker #2: Of course, a lot of things going on in this moment. But my first feeling, what we are seeing in terms of audience, leads, and all this, is positive.

Speaker #5: So in the second part of your question was around private sell.

Speaker #2: So that's the reason that I can believe that we can deliver a very good financial year 27.

Speaker #1: Just around private volumes and expectations into next year.

Speaker #5: Yeah. So if we think about private volumes, as we started 27, average daily has been really quite strong. And we see that momentum continuing as we accelerate the value we're providing to private sellers.

Speaker #4: Thanks, Eduardo. But can you just touch on what's driving that? I mean, this is not just Marine, right? What's driving the traffic growing? Is it just you're doing better marketing or something like that or targeting?

Will Elliott: We see that momentum continuing as we accelerate the value we're providing to private sellers.

Speaker #4: Thanks.

Siraj Ahmed: Got it. Second one, maybe for Will. Will, just at a high level, interesting that you are upsized the debt facility. Just keen to understand how you're thinking about M&A on the back of that or whether that's signaling something. In terms of M&A, it's interesting that you are buying some of these dealer sort of CRMs, right, in the US, and also, I think it looks like you bought something in Brazil as well. Just keen to understand how you're thinking of the ecosystem. Is that dealer side something you want to strengthen, especially given AI?

Speaker #1: No, I think that's I'm happy to take that one, Surhash. I mean, one of the focuses for us as a business is we're trying to find operational efficiency.

Speaker #1: And you would see that appeared in our strategy. And we're trying to find operational efficiency in all of our markets. And one of the things we're doing is reinvesting that back into brand and advertising and clearly, that's been a focus in the US for a while.

Speaker #4: And in terms of M&A, it's interesting that you are buying some of these dealer sort of CRMs, right, in the US and also, I think, it looks like you bought something in Brazil as well.

Speaker #4: Just keen to understand how you think about the ecosystem. Is that dealer side something you want to strengthen, especially given AI?

Speaker #1: So I think that's generating part of the strong outcomes you're seeing in Q4 there, as well as consumer experiences that we're making to the site, which is driving higher lead volumes and better outcomes for dealers.

Speaker #1: Yeah, no, thanks for the question, Sreehash. I think, I mean, definitely from an M&A perspective, over the last two years, we have had a more concerted focus thinking about our role in the ecosystem and how we embed ourselves even closer with our dealer customers and our OEM customers.

Will Elliott: No, thanks for the question, Siraj. I think, definitely from an M&A perspective, over the last two years, we have had a more concerted focus thinking about our role in the ecosystem and how we embed ourselves even closer with our dealer customers and our OEM customers. Part of that is reflected in some of those small acquisitions of the CRM businesses, because we can provide services not just as a marketplace, as an advertising source, but through the whole life cycle of the transaction for a dealer. The other thing is, it's not just an M&A strategy, it's also an organic strategy. If you think about what Craig is doing with Nextgate, that's really extending our dealer operating system into more parts of the dealer's business to essentially help them take cost out and maximize profitability. That's the focus for us.

Speaker #4: Thanks.

Speaker #3: Thanks. This comes from Roger Samuel with Jefferies, Australia. Please go ahead.

Speaker #5: Oh, hi, Martin. I've got three questions as well, please. First one, just on the margin, I think you previously got it to margin to tick down slightly in FY26, given the investments in Marine and the new products.

Speaker #1: And the other thing is, it's not just an M&A strategy. It's also an organic strategy. So if you think about what Craig is doing with Nexgate, that's really extending our dealer operating system into more parts of the dealer's business to essentially help them take cost out and maximize profitability.

Speaker #5: And given that you managed to maintain your margin at 56%, I'm just wondering what's the driver of that. Is it because of some of the benefits that you're getting from AI lab in Brazil?

Speaker #5: Or is it general cost controls?

Speaker #2: Thanks, Roger. It's Jeff here. I'll take that one. So you're quite right. I mean, we guided at the start of the year slight margin contraction in Korea and the US.

Speaker #1: So that's the focus for us. In terms of our overall M&A strategy, you know, no signaling from the debt refinance. That's just business as usual.

Will Elliott: In terms of our overall M&A strategy, no signaling from the debt refinance. That's just business as usual, and our overall M&A strategy hasn't changed.

Speaker #2: I think US holding margins pretty consistent was a great outcome. And yeah, so a good chunk of that was cost efficiencies. As Will said, we've been able to reinvest a portion of that into brand and other initiatives.

Speaker #1: And our overall M&A strategy hasn't changed.

Speaker #4: Got it. And last one, just on TA, for Eduardo. So that traffic growth in fourth quarter, that's extremely strong. What's driving that? And do you reckon, I mean, market conditions seem quite soft, right, especially in RVs right now.

Siraj Ahmed: Got it. Last one, just on TI for Eduardo. That traffic growth in Q4, that's extremely strong. What's driving that? Do you reckon, market conditions seem quite soft, right, especially in RVs right now. Given the traffic growth, does that give you more confidence in terms of price increases for next year, or is that something else that actually helps with? Thanks.

Speaker #2: But yeah, certainly, good cost control over the years was a big part of that.

Speaker #5: Just not so much the benefit from AI investments. Like the CGR.

Speaker #4: But given the traffic growth, does that give you more confidence in the price increases for next year, or is that something else that actually helps with?

Speaker #2: Oh, no, that's. Well, no, that's a part of it. I mean, I think CG Lab more recently drives benefits across the group. But there's also AI investment in each of the regions as well.

Speaker #4: Thanks.

Speaker #6: Thanks, Sreehash. In terms of the markets, what I'm very happy to see is the last half, the last quarter, sorry, that we are seeing improvements in terms of lead volumes audience visits.

Eduardo Jurcevic: Thanks, Siraj. In terms of the markets, what I'm very happy to see is that the H2, the Q4, sorry, that we are seeing improvements in terms of lead volumes, audience visits. That's the reason that I'm feeling that we are very close probably to the bottom. We can expect that's going to start to recover. Of course, a lot of things going on in this moment, but my first feeling, what we are seeing in terms of audience leads and all this, is positive. That's the reason that I can believe that we can deliver a very good FY27.

Speaker #2: But just being more efficient across the board. But AI is definitely a part of it.

Speaker #5: Okay. Okay. Second question, maybe for you as well, Jeff, just in terms of the currency impact and obviously, his result, we've seen some headwinds from foreign currency.

Speaker #6: So that's the reason that I'm feeling that we are very close probably to the bottom. And we can expect, you know, that is going to start a recover, you know, of course, a lot of things going on in this moment.

Speaker #5: Is there any ways that you are thinking of to mitigate the currency headwind going forward?

Speaker #6: But my first feeling, what we are seeing in terms of audience, leads, and all this, is positive. So that's the reason that I can believe that we can deliver a very good financial year 27.

Speaker #2: Yeah, thanks for the question. So you're quite right. I mean, we saw about a 2% FX headwind for FY26. And about sort of a 5% headwind in the second half.

Siraj Ahmed: Thanks, Eduardo. Can you just touch on what's driving that? This is not just marine, right? What's driving the traffic growing? Is it just you're doing better marketing or something like that, or targeting? Thanks.

Speaker #2: We're probably seeing similar around a 2% headwind for next year. Mainly sort of first half driven. Again, our sort of US and Korea I mean, when we think about FX exposures, you'll see that we've got sort of cross-currency swaps in place for Korea, which sort of helps us on the interest rate side, but also is a net investment hedge for us.

Speaker #4: Thanks.

Speaker #1: No, I think that's I'm happy to take that one, Sreehash. I mean, one of the focuses for us as a business is, you know, we're trying to find operational efficiency.

Will Elliott: No, I think I'm happy to take that one, Siraj. One of the focuses for us as a business is we're trying to find operational efficiency, and you would see that appeared in our strategy, and we're trying to find operational efficiency in all of our markets. One of the things we're doing is reinvesting that back into brand and advertising, and clearly, that's been a focus in the US for a while. I think that's generating part of the strong outcomes you're seeing in Q4 there, as well as consumer experiences that we're making to the site, which is driving higher lead volumes and better outcomes for dealers.

Speaker #2: And also, the start of FY27, looking at USD cross-currency swaps as well. Now, that doesn't necessarily show up in the P&L, but certainly, we say that that is from a commercial perspective, helps us with that FX exposure.

Speaker #5: Excellent. My third question is on the Australian business. And do you have any feedback you can share with us in terms of the new product?

Speaker #4: Thanks.

Siraj Ahmed: Thanks.

Speaker #3: Thanks. This comes from Roger Samuel with Jeffries, Australia. Please go ahead.

Speaker #5: So next gate and also the trading products and how would you quantify the revenue or earnings impact from these two products?

Will Elliott: The next-

Will Elliott: Thank you, Shroz.

Will Elliott: Thank you, Siraj.

Operator: question comes from Roger Samuel with Jefferies Australia. Please go ahead.

Speaker #7: Oh, hey, Morning All. I've got three questions as well, please. First one, just on the margin, I think you previously got it to margin to tick down slightly in FY26, given the investments in Marine and the new products.

Roger Samuel: Well, hi, morning all. I've got three questions as well, please. First one, just on the margin. I think you previously guided to margin to tick down slightly in FY2026 given the investments in marine and the new products. Given that you managed to maintain your margin at 56%, I'm just wondering what's the driver of that? Is it because of some of the benefits that you're getting from AI Lab in Brazil? Or is it general cost controls?

Speaker #1: Yeah, it's Craig here. I'll answer that one. So we launched Nextgate to the industry at the double ADA convention last Tuesday evening. And it's been well received.

Speaker #1: Nextgate goes live to all of our dealer customers on the 1st of September. So we will only be starting to roll that out at the back end of this month.

Speaker #7: And given that you managed to maintain your margin at 56%, I'm just wondering what's the driver of that. Is it because of some of the benefits that you're getting from AI lab in Brazil?

Speaker #1: But one thing to really call out about Nextgate is it's really been an outside-in design and development. And what I mean by that is we've worked with our dealer partners to develop the solutions to help them today.

Speaker #7: Or is it general cost control?

Speaker #6: Thanks, Roger. It's Jeff here. I'll take that one. So you're quite right. I mean, we guided at the start of the year slight margin contraction in Korea and the US.

Speaker #1: And into the future. So we're very confident it's going to actually really help dealers and create efficiency in their business. There's a lot we're doing in terms of AI integration to help them with pricing, sourcing, as well as lead nurturing to help manage conversions.

Geoff Trumbull: Thanks, Roger. It's Geoff here. I'll take that one. You're quite right. We guided at the start of the year slight margin contraction in Korea and the US. I think US holding margins pretty consistent was a great outcome. Yeah, a good chunk of that was cost efficiencies. As Will said, we've been able to reinvest a portion of that into brand and other initiatives. Yeah, certainly, good cost control over the years was a big part of that.

Speaker #6: I think US holding margins pretty consistent was a great outcome. And yeah, so a good chunk of that was cost efficiencies. As Will said, we've been able to reinvest a portion of that into brand and other initiatives.

Speaker #1: So there's a lot happening in that space. And yeah, we're very confident when that goes live in the coming weeks, it will deliver great results for our dealer partners.

Speaker #6: But yeah, certainly good cost control over the years was a big part of that.

Speaker #1: I'm sorry, mate. What was your the second question?

Speaker #5: Oh, just around the trade-in product that you launched a while ago now.

Speaker #7: Does not so much the benefit from AI investments? Like the CGI.

Roger Samuel: It's not so much the benefit from AI investments like a CG-

Speaker #6: Oh, no, that's. Well, no, that's a part of it. I mean, I think CG Lab more simply drives benefits across the group. But there's also AI investment in each of the regions as well.

Speaker #1: I think that was just the next gate. Sorry, was that a new car question, Roger?

Geoff Trumbull: Oh, no. Well, no, that's a part of it.

Roger Samuel: Okay

Geoff Trumbull: CG Lab ultimately drives benefits across the group. There's also AI investment in each of the regions as well. Just being more efficient across the board. AI is definitely a part of it.

Speaker #5: Yeah, I think you launched the trade-in product, right?

Speaker #1: A trade-in product.

Speaker #6: But just being more efficient across the board. But AI is definitely a part of it.

Speaker #5: Yeah, trade-in, yeah.

Speaker #1: Yeah, so trade-ins performing well for us. And it was really to complement and drive greater value for new car buyers and their path to purchase.

Speaker #7: Okay, okay. Second question, maybe for you as well, Jeff, just in terms of the currency impact and obviously his result, we've seen some headwinds from foreign currency.

Roger Samuel: Okay. Second question, maybe for you as well, Geoff, just in terms of the currency impact and, obviously as a result, we've seen some headwinds from foreign currency. Is there any ways that you were thinking of to mitigate the currency headwind going forward?

Speaker #1: So we're working on a broad range of initiatives when it comes to new car, as we see a significant increase in buyer demand for new cars on platform, as well as, obviously, the Chinese entrance as they scale in Australia.

Speaker #7: Is there any ways that you are thinking of to mitigate the currency headwind going forward?

Speaker #1: And so there's a lot that we're doing in that space. And in terms of trade-in, it's driving greater value for our dealer partners and so far it's performing well.

Speaker #6: Yeah, thanks for the question. So you're quite right. I mean, we saw about a 2% FX headwind for FY26 and about sort of a 5% headwind in the second half.

Geoff Trumbull: Yeah, thanks for the question. You're quite right. We saw about a 2% FX headwind for FY26, and about a 5% headwind in the H2. We're probably seeing similar, around a 2% headwind for next year. Mainly H1-driven, again, our sort of US and Korea. When we think about FX exposures, you'll see that we've got cross-currency swaps in place for Korea, which sort of helps us on the interest rate side, but also is a net investment hedge for us. Also at the start of FY27, looking at USD cross-currency swaps as well. That doesn't necessarily show up in the P&L. Certainly, we see that as from a commercial perspective, helps us with that FX exposure.

Speaker #5: Got it. Thank you.

Speaker #3: Your next question comes from Lucy Huang with UBS. Please go ahead.

Speaker #6: We're probably seeing similar around a 2% headwind for next year. Mainly sort of first half driven, again, our sort of US and Korea I mean, when we think about FX exposures, you'll see that we've got sort of cross-currency swaps in place for Korea, which sort of helps us on the interest rate side, but also is a net investment hedge for us.

Speaker #4: Thanks, team. So I've got three questions as well. Just my first one. You made a comment on North America saying that you've seen dealer growth from new product launches.

Speaker #4: So I'm just wondering, kind of what sort of dealer growth numbers did we actually see in the second half? And would we expect dealer growth to continue into FY27 despite, I guess, potential weakening of macro sentiment?

Speaker #6: And also the start of FY27 looking at USD cross-currency swaps as well. Now, that doesn't necessarily show up in the P&L, but certainly we see that that is from a commercial perspective.

Speaker #2: Yeah, Lucy, it's Will. I'll have you to take that one. So I think the comment around dealers was more that we're seeing good growth in the dealer segment.

Speaker #2: In terms of the overall dealer base, that's been relatively stable in the second half. I think in terms of what gives us confidence into next year is, obviously, all of the product development that we're doing.

Speaker #6: Helps us with that FX exposure.

Speaker #7: Excellent. My third question is on the Australian business. And do you have any feedback you can share with us in terms of the new product?

Roger Samuel: Excellent. My third question is on the Australian business. Do you have any feedback you can share with us in terms of the new product, Nextgate and also the trade-in products, and how would you quantify the revenue or earnings impact from these two products?

Speaker #2: Eduardo talked about the ecosystem that we're building there with DP360, which is the new CRM tool. And we're going to launch that into market as part of our overall subscription package throughout the year.

Speaker #7: So next gate, and also the trading products, and how would you quantify the revenue or earnings impact from these two products?

Speaker #2: And then clearly, the investments we're making in brand and marketing is growing our audience and the value we're delivering to our customers. And so I think that's probably where we see the growth coming from next year alongside, obviously, the media and marines parts of the business.

Speaker #1: Yeah, it's Craig here. I'll answer that one. So we launched Nextgate to the industry at the double ADA convention last Tuesday evening. And it's been well received.

Craig Fraser: Yeah. It's Craig here. I'll answer that one. We launched Nextgate to the industry at the AADA convention last Tuesday evening. It's been well-received. Nextgate goes live to all of our dealer customers on the 1st of September. We will only be starting to roll that out at the back end of this month. One thing to really call out about Nextgate is it's really been an outside in design and development. What I mean by that is we've worked with our dealer partners to develop the solutions to help them today and into the future. We're very confident it's going to actually really help dealers and create efficiency in their business. There's a lot we're doing in terms of AI integration to help them with pricing, sourcing, as well as lead nurturing to help manage conversions.

Speaker #1: Nextgate goes live to all of our dealer customers on the 1st of September. So we will only be starting to roll that out at the back end of this month.

Speaker #4: Yeah, no, that makes sense. And then just getting on to Matthew's media second half, we did see a slight slowdown. But given the strength that you're seeing in new OEM spend, should we expect media revenue growth to re-accelerate into 27?

Speaker #1: No, no worries. So I think the media business in Australia performed very well in 27. 26, you would have seen the new entrant OEMs delivering outsized performance for us, which is great to see.

Speaker #1: So there's a lot happening in that space. And yeah, we're very confident when that goes live in the coming weeks, it will deliver great results for our dealer partners.

Craig Fraser: There's a lot happening in that space. Yeah, we're very confident when that goes live in the coming weeks it will deliver great results for our dealer partners. I'm sorry, mate, what was the second question?

Speaker #1: Sorry, mate, what was your the second question?

Speaker #1: We're sharpening the way we go to market with these new entrants. And we believe we've got clearly got a great playbook that we can roll out.

Speaker #7: Oh, it was just around the trade-in product that you launched a while ago now.

Roger Samuel: It's just around the trade-in product that you launched a while ago now.

Speaker #1: What's interesting for us is that we're actually seeing the ability for us to build a go-to-market approach across our global business for these OEMs because they are entering into Brazil, South Korea, and Australia all around the same time.

Speaker #1: I think that was just the Nextgate sorry, was that a new car question, Roger?

Will Elliott: I think that was just for Nextgate.

Craig Fraser: Sorry.

Craig Fraser: Sorry, was that a new car question, Roger?

Speaker #7: Yeah, I think you launched the trade-in product, right?

Roger Samuel: Yeah. I think you launched a trade-in product, right?

Speaker #1: A trade-in product.

Speaker #7: Yeah, trade-in, yeah.

Craig Fraser: A trade-in product.

Craig Fraser: A couple of months ago.

Speaker #1: Yeah, so trade-ins performing well for us. And it was really to complement and drive greater value for new car buyers and their path to purchase.

Will Elliott: Yeah.

Roger Samuel: Yeah, trade-in. Yeah.

Speaker #1: And so we're starting to build an approach across the whole group to go to these new OEMs entering the market. And in terms of product delivery and innovation, we've got some great things in the pipeline over the next 12 months.

Craig Fraser: Trade-in's performing well for us, and it was really to complement and drive greater value to new car buyers and their path to purchase. We're working on a broad range of initiatives when it comes to new car, as we see a significant increase in buyer demand for new cars on platform, as well as obviously the Chinese entrants as they scale in Australia. There's a lot that we're doing in that space. In terms of trade-in, it's driving greater value for our dealer partners. So far it's performing well.

Speaker #1: So we're working on a broad range of initiatives when it comes to new car. As we see a significant increase in buyer demand for new cars on platform, as well as obviously the Chinese entrance as they scale in Australia.

Speaker #1: For the media business, which gives us the continued confidence to grow.

Speaker #1: And so there's a lot that we're doing in that space. And in terms of trade-in, it's driving greater value for our dealer partners and so far it's performing well.

Speaker #4: Thanks, Will. And then just maybe one last one about the Australian business indeed. Can I just confirm the split is at 8% revenue growth between volume, yield, and price?

Speaker #7: Got it. Thank you.

Roger Samuel: Got it. Thank you.

Speaker #3: Your next question comes from Lucy Huang with UBS. Please go ahead.

Operator: Your next question comes from Lucy Huang with UBS. Please go ahead.

Speaker #4: I think you mentioned volume saw a little bit of a step down in the second half. So outside of that, would the debt drivers be relatively similar to the first half?

Speaker #8: Oh, thanks, team. So I've got three questions as well. Just my first one. You made a comment on North America saying that you've seen dealer growth from new product launches.

Lucy Huang: Thanks, team. I've got three questions as well. My first one, you made a comment on North America saying that you've seen dealer growth from new product launches. I'm just wondering, what sort of dealer growth numbers did we actually see in the H2, and would we expect dealer growth to continue into FY27 despite, I guess, potential weakening of macro sentiment?

Speaker #1: Yeah, so it was roughly 4% yield, 3% volume, and 1% debt.

Speaker #8: I'm just wondering, kind of what sort of dealer growth numbers did we actually see in the second half? And would we expect dealer growth to continue into FY27 despite, I guess, potential weakening of macro sentiment?

Speaker #4: Wonderful. Thank you so much. Thanks, Will.

Speaker #1: Thanks, Lucy.

Speaker #3: Your next question comes from David Fabris with Macquarie. Please go ahead.

Speaker #5: Oh, hi, i, Will. Hi, Jeff. Just my first question. Just wondering, with the revenue growth guidance across the regions, can you unpack the contribution or actual percent benefit of the price increases in any timing?

Speaker #6: Yeah, Lucy, it's Will. I'll have you to take that one. So I think the comment around dealers was more that we're seeing good growth in the dealer segment.

Will Elliott: Yeah. Lucy, it's Will. I'm happy to take that one. I think the comment around dealers was more that we're seeing good growth in the dealer segment. In terms of the overall dealer base, that's been relatively stable in the H2. I think in terms of what gives us confidence into next year is obviously all of the product development that we're doing. Eduardo talked about the ecosystem that we're building there with DP360, which is the new CRM tool, and we're going to launch that into market as part of our overall subscription package throughout the year. Clearly, the investments we're making in brand and marketing is growing our audience and the value we're delivering to our customers. I think that's probably where we see the growth coming from next year alongside obviously the media and marines parts of the business.

Speaker #6: In terms of the overall dealer base, that's been relatively stable in the second half. I think in terms of what gives us confidence into next year is obviously all of the product development that we're doing.

Speaker #5: And just to clarify, is it one price increase annually per region generally?

Speaker #1: No worries. I'll be happy to take that. I mean, we approach pricing differently in every market, David. So in Brazil, for example, the pricing tends to be ongoing throughout the year, region by region.

Speaker #6: Eduardo talked about the ecosystem that we're building there with DP360, which is the new CRM tool. And we're going to launch that into market.

Will Elliott: Eduardo talked about the ecosystem that we're building there with DP360, which is the new CRM tool, and we're going to launch that into market as part of our overall subscription package throughout the year. Clearly, the investments we're making in brand and marketing is growing our audience and the value we're delivering to our customers. I think that's probably where we see the growth coming from next year alongside obviously the media and marines parts of the business.

Speaker #6: It's part of our overall subscription package throughout the year. And then clearly, the investments we're making in brand and marketing is growing our audience and the value we're delivering to our customers.

Speaker #1: In the US, it's been more of an annual base, but the timing has varied. And then it varies across which products. So you get the price increases South Korea, similar in terms of we have done some price rises on some of our smaller products, but haven't done it on our flagship guaranteed product for a while.

Speaker #6: And so I think that's probably where we see the growth coming from next year alongside obviously the media and marines parts of the business.

Speaker #1: And we were always looking at that as an option. Then in Australia, clearly the main price rise we normally do is around October. And we look at that across all of our product portfolio.

Speaker #8: Yeah, that makes sense. And then just getting one domestic media second half, we did see a slight slowdown. But given the strength that you're seeing in new OEM spend, should we expect media revenue growth to re-accelerate into 27?

Lucy Huang: Yeah. That makes sense. Just in commercial media, H2, we did see a slight slowdown, but given the strength that you're seeing in the OEM spend, should we expect media revenue growth to re-accelerate into 2027?

Speaker #1: Dealer portfolio. So it is very localized region-specific in terms of our approach for pricing. And clearly, it'll be one of the contributors to our growth next year.

Speaker #1: No, no worries. So I think the media business. Australia performed very well in 27, 26. You would have seen the new entrant OEMs delivering outsized performance for us, which is great to see.

Will Elliott: No worries. I think the media business in Australia performed very well in 2026. You would've seen our new entrant OEMs are delivering outsized performance for us, which is great to see. We're sharpening the way we go to market with these new entrants, and we believe we've clearly got a great playbook that we can roll out. What's interesting for us is that we're actually seeing the ability for us to build a go-to-market approach across our global business for these OEMs because they are entering into Brazil, South Korea, and Australia all around the same time. We're starting to build an approach across the whole group to go to these new OEMs entering the market.

Speaker #1: It won't be the main contributor. The main contributors will be volume growth in dealers, volume growth in lead, new product development, penetration greater penetration of existing products, and then yield is another just another component on top of that.

Speaker #1: We're sharpening the way we go to market with these new entrants. And we believe we've got clearly got a great playbook that we can roll out.

Speaker #5: Yeah, got you. Thanks. And then I guess just looking at North America and Asia, you've still got revenue growth exceeding EBITDA growth. Can you provide any scaffolding or thoughts around an inflection point where that might cross over and we start to see benefits coming through from the investment?

Speaker #1: So yeah, look, I think the South Korea we've been very deliberate around investing in dealer direct and also in branding. Dealer direct, we have a competitor, Hey Dealer.

Will Elliott: In terms of product delivery and innovation, we have got some great things in the pipeline over the next 12 months for the media business, which gives us the continued confidence to grow.

Speaker #1: For the media business, which gives us the continued confidence to grow.

Speaker #1: It's quite formidable in that space. And that has been a decent investment that we've made over the last few years. And what we're seeing now is some good growth in that product which is great to see.

Speaker #8: Thanks, Will. And then just maybe one last one about the Australian business indeed. Can I just confirm the split of that 8% revenue growth between volume, yield, and price?

Lucy Huang: Thanks, Will. Just maybe one last one about the Australian business. Can I just confirm, the split of that 8% revenue growth between volume, yield, and price? I think you mentioned volume saw a little bit of a step down in the H2. Outside of that, would the depth drivers be relatively similar to the H1?

Speaker #8: I think you mentioned volumes saw a little bit of a step down in second half. So outside of that, would the depth drivers be relatively similar to the first half?

Speaker #1: And so we're very happy with both the product itself, but also that we're starting to market it. And that's delivering good returns. And then in North America, we've been investing in the marine business, which we've talked to before.

Speaker #1: Yeah, so it was roughly 4% yield, 3% volume, and 1% depth.

Geoff Trumbull: Yeah. It was roughly 4% yield, 3% volume, and 1% depth.

Speaker #8: Wonderful. Thank you so much. Thanks, Will.

Speaker #1: So marines are massive market. We've got a strong right to play in that market. It's not profitable currently. But it's got the potential to be nicely additive to our business going forward.

Lucy Huang: Wonderful. Thank you so much, Will.

Speaker #1: Thanks, Lucy.

Will Elliott: Thanks, Lucy.

Speaker #3: Your next question comes from David Fabris with Macquarie. Please go ahead.

Operator: Your next question comes from David Fabris with Macquarie. Please go ahead.

Speaker #7: Oh, hi, Will. Hi, Jeff. Just my first question. Just wondering, with the revenue growth guidance across the regions, can you unpack the contribution or actual percent benefit of the price increases in any timing?

David Fabris: Hi, Will. Hi, Geoff. Just my first question. Just wondering, with the revenue growth guidance across the regions.

Speaker #1: And we see some good signs in the last quarter on that.

Will Elliott: Yeah

David Fabris: Can you unpack the contribution or actual percent benefit of the price increases in any timing? Just to clarify, is it one price increase annually per region generally?

Speaker #5: Got you. And sorry, just one last question for me then. Just on the Australian business, I'm just curious whether you see any opportunities or new opportunities to move up or down the value chain, or you're pretty comfortable with the lanes you're sitting in.

Speaker #7: And just to clarify, is it one price increase annually per region generally?

Speaker #1: No worries. I'll happy to take that. I mean, we approach pricing differently in every market, David. So in Brazil, for example, the pricing tends to be ongoing throughout the year, region by region.

Will Elliott: No worries. I'm happy to take that. We approach pricing differently in every market, David. In Brazil for example, the pricing tends to be ongoing throughout the year, region by region. In the US, it's been more of an annual base, but the timing has varied. It varies across which products also get the price increases. South Korea, similar in terms of we have done some price rises on some of our smaller products, but haven't done it on our flagship guaranteed product for a while, and we were always looking at that as an option. In Australia, clearly the main price rise we normally do is around October, and we look at that across all of our product portfolio, and dealer portfolio. It is very localized region-specific in terms of our approach for pricing.

Speaker #5: I mean, there are options out there. I guess if you consider balance sheet intensity and channel risk. But yeah, your thoughts would be appreciated on whether you think there are ways to move up or down that value chain.

Speaker #1: No, I think, David, we're happy at the moment just in terms of our organic ecosystem play with Nexgate, which in some ways is moving into new areas of a dealer's business to help provide incremental value.

Will Elliott: South Korea, similar in terms of we have done some price rises on some of our smaller products, but haven't done it on our flagship guaranteed product for a while, and we were always looking at that as an option. In Australia, clearly the main price rise we normally do is around October, and we look at that across all of our product portfolio, and dealer portfolio. It is very localized region-specific in terms of our approach for pricing.

Speaker #1: Across sourcing and lead nurturing, those sorts of things. So it's a natural organic extension rather than any form of M&A. And we think that's the right approach at the moment, the one that's going to generate the best return on capital for us.

Speaker #5: Okay. Thank you.

Speaker #1: Thanks, David. Might have time for one. This might be the last one.

Speaker #1: Dealer portfolios. So it is very localized region-specific in terms of our approach for pricing. And clearly, it'll be one of the contributors to our growth next year.

Speaker #3: Your final question today comes from Wei Wengchen with RBC Capital Markets. Please go ahead.

Will Elliott: Clearly, it'll be one of the contributors to our growth next year. It won't be the main contributor. The main contributors will be volume growth in dealers, volume growth in lead, new product development, greater penetration of existing products, then yield is just another component on top of that.

Speaker #5: Hi, team. Thanks for sneaking in. And I literally only have one question. So I'll keep it quick. So just relating to kind of your EBITDA adjustments in FY26, you reported 15 mil in the first half, which included the exit of the tires business.

Speaker #1: It won't be the main contributor. The main contributors will be volume growth in dealers, volume growth in lead, new product development, penetration greater penetration of existing products and then yield is another just another component on top of that.

Speaker #5: In the second half, the adjustment was 18 mil. Can you maybe help me just reconcile what the 18 mil in the second half was?

Speaker #7: Yeah, got you. Thanks. And then I guess just looking at North America and Asia, you've still got revenue growth exceeding EBITDA growth. Can you provide any scaffolding or thoughts around an inflection point where that might cross over and we start to see benefits coming through from the investment?

Speaker #1: Yeah, thanks, Wei Weng. I'm happy to take that one. So I mean, as we always do, we look to present an adjusted number, which we believe sort of reflects underlying performance of the business.

David Fabris: Yeah. Got you. Thanks. Then, I guess just looking at North America and Asia, you still got revenue growth exceeding EBITDA growth. Can you provide any scaffolding or thoughts around an inflection point where that might cross over and we start to see benefits coming through from the investment?

Speaker #1: So the buckets haven't really changed. The main ones in the second half and the full year for that matter are M&A activity. So as we'll touch on, we've had several bolt-on acquisitions in the last 18 months.

Speaker #1: So yeah, look, I think the South Korea we've been very deliberate around investing in dealer direct and also in branding. Dealer direct, we have a competitor, Hey Dealer.

Will Elliott: Look, I think South Korea, we've been very deliberate around investing in Dealer Direct and also in branding. Dealer Direct, we have a competitor, iDEALER, it's quite formidable in that space, that has been a decent investment we've made over the last few years. What we're seeing now is some good growth in that product, which is great to see. So, we're very happy with both the product itself, but also that we're starting to market it and that's delivering good returns. Then, in North America, we've been investing in the marine business, which we've talked to before. Marine's a massive market. We've got a strong right to play in that market. It's not profitable currently, but it's got the potential to be nicely additive to our business going forward. We're seeing some good signs in the last quarter on that.

Speaker #1: A lot of those are about expanding the ecosystem. So the integration efforts on those are probably higher than they have been in the past.

Speaker #1: And that also includes some efforts on M&A that hasn't necessarily come to fruition. On the restructuring side, a lot of that was picked up in the first half in terms of things like leadership transition.

Speaker #1: But we've also had some other restructuring across the business as well.

Speaker #5: Okay. Cool.

Speaker #1: And we see some good signs in the last quarter on that.

Speaker #7: Got you. And sorry, just one last question for me then. Just on the Australian business, I'm just curious whether you see any opportunities or new opportunities to move up or down the value chain, or you're pretty comfortable with the lanes you sit in.

David Fabris: Sorry, just one last question for me then. Just on the Australian business, I am just curious whether you see any opportunities or new opportunities to move up or down the value chain, or you are pretty comfortable with the lanes you sit in. There are options out there, I guess if you consider balance sheet intensity and channel risk. Yeah, your thoughts would be appreciated on whether you think there are ways to move up or down that value chain.

Speaker #7: I mean, there are options out there. I guess if you consider balance sheet intensity and channel risk. But yeah, your thoughts would be appreciated on whether you think there are ways to move up or down that value chain.

Speaker #1: No, I think David, we're happy at the moment just in terms of our organic ecosystem play with Nexgate, which in some ways is moving into new areas of a dealer's business to help provide incremental value.

Will Elliott: No, I think, David, we're happy at the moment just in terms of our organic ecosystem play with Nextgate, which in some ways is moving into new areas of a dealer's business to help provide incremental value across sourcing and lead nurturing, those sorts of things. It's a natural organic extension rather than any form of M&A, we think that's the right approach at the moment, the one that's going to generate the best return on capital for us.

Speaker #1: Across sourcing and lead nurturing, those sorts of things. So it's a natural organic extension rather than any form of M&A. And we think that's the right approach at the moment and the one that's going to generate the best return on capital for us.

Speaker #7: Okay. Thank you.

Speaker #1: Thanks, David. Might have time for one. This might be the last one.

David Fabris: Okay. Thank you.

Will Elliott: Thanks, Dave.

Operator: Your next question.

Will Elliott: Might have time for one. This might be the last one.

Speaker #3: Your final question today comes from Weiweng Chen with RBC Capital Markets. Please go ahead.

Operator: Your final question today comes from Wei-Weng Chen with RBC Capital Markets. Please go ahead.

Speaker #7: Hey, team. Thanks for sneaking in. And I literally only have one question. So I'll keep it quick. So just relating to kind of your EBITDA adjustments in FY26, you reported 15 mil in the first half, which included the exit of the tires business.

Wei-Weng Chen: Hey, team. Thanks for sneaking me in, and I literally only have one question, so I'll keep it quick. Just relating to your EBITDA adjustments in FY26, you reported AUD 15 million in the H1, which included the exit of the Tyres business. In the H2, the adjustment was AUD 18 million. Can you maybe help me just reconcile what the AUD 18 million in the H2 was?

Speaker #7: In second half, the adjustment was 18 mil. Can you maybe help me just reconcile what the 18 mil in the second half was?

Speaker #1: Yeah, thanks, Weiweng. I'm happy to take that one. So I mean, as we always do, we look to present an adjusted number, which we believe sort of reflects underlying performance of the business.

Geoff Trumbull: Thanks, Wei-Weng. I'm happy to take that one. As we always do, we look to present an adjusted number, which we believe reflects underlying performance of the business. The buckets haven't really changed. The main ones in the H2 and the FY, for that matter, are M&A activity. I guess, as Will touched on, we've had several bolt-on acquisitions in the last 18 months. A lot of those are about expanding the ecosystem, so the integration efforts on those are probably higher than they have been in the past. That also includes some efforts on M&A that hasn't necessarily come to fruition. On the restructuring side, a lot of that was picked up in the H1 in terms of things like leadership transition. We've also had some other restructuring across the business as well.

Speaker #1: A lot of those are about expanding the ecosystem. So the integration efforts on those are probably higher than they have been in the past.

Speaker #1: But we've also had some other restructuring across the business as well.

Speaker #7: Okay. Cool.

Speaker #1: Thanks, Weiweng. Thanks, everyone, for your questions. And I look forward to catching up with many of you across the next few days.

Wei-Weng Chen: Okay, cool.

Will Elliott: Thanks, Wei-Weng. Thanks everyone for your questions, look forward to catching up with many of you across the next few days.

Operator: Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.

More CAR earnings call transcripts

Browse all earnings call transcripts

Full Year 2026 CAR Group Ltd Earnings Call

Request TrialDemo

CAR Group

Earnings