Morning everyone, and thanks for joining us this morning for the CAR Group FY2025 results conference call. This morning, we're going to walk you through the presentation over the next 30 minutes like we usually do, and we'll read out the slide numbers as we go along. After the presentation, we'll do a Q&A session like we always do as well, and I'll introduce you to the rest of the team that are here to answer your questions as well in the room today. With us, we've got Craig Fraser, Craig the MD of our Australian business. We've got Sangbeom Kim, the CEO of our South Korean business, NCAR. David McMinn, CEO of Trader Interactive in the United States, as well as Eduardo, CEO of our business in Brazil, and we've got Rachel Scully here, Head of Investor Relations. We'll start with slide five.
As you can see, it's been another excellent year for the group. These results really continue our track record of long-term growth and demonstrate the strength of our global diversified business model and the commitment that we have to our customers. The pro forma results on the left side of the page are generally the best reflection of our underlying performance, as they really normalize for our Australian buyer business that we've recently exited. In constant currency, on the right-hand side, the group delivered 12% growth in pro forma revenue, 12% growth in pro forma EBITDA, and that was both an excellent outcome. We've maintained strong EBITDA margin performance at 56%. The jump to then have a double-digit in our constant currency, and that was also an excellent outcome. A great year overall. Let's go to slide six.
That constant track record of excellent financial performance is really demonstrated year to year, and it just reflects the, I guess, the disciplined delivery of our strategy that we have to make the transaction processes far easier and more seamless for our buyers and sellers alike. This slide also reflects the diversification of our business across geography, our product verticals, and our ability to grow in all market conditions across time. Onto slide seven. Like we normally do here, just some operational highlights that show our global marketplace environment remains strong, underscoring our leadership and the resilience of our diversified business model. I'm looking at inventory, and inventory level is probably slightly lower than over the course of the year. That's just reflecting the robust used car market environment that we're in in Australia, Brazil, Korea, and in Chile at the moment.
Looking at the yield numbers, in the middle of the page, if you're up to 1230, they remain stable around 49,000. That yield proposition continues to be strong across all regions, reflecting our solid results here despite some more challenging consumer environments in part. Onto slide eight. Slide eight shows that our strong and diverse retail brand here, as you can see, across our regions and key market segments. We've exited our tires business. As I mentioned a minute ago, we've taken tire sales out of this slide, and we've excluded our small data businesses in Lithuania and South Korea that you can possibly see there as well. For many years, our strategy's centred around investing in large, high-growth markets where we can leverage our intellectual property and our effects to deliver long-term sustainable value to our shareholders.
Our international investments, those that have delivered outstanding financial returns, and we remain highly confident that they're going to continue to grow nicely into the future. Onto slide nine. This provides us with an overview of our group strategy, which we've been working toward as a leadership team over the last six months and have roadshowed it with the board of business. It really is our focus over the next three years. What's inside this slide is really the outline of the agenda around that strategy. We see this very much as an evolution of our previous strategy, which you'll all be very familiar with on the call. I quite like about our teams, they continue to excel in delivering on our purpose. Our purpose is about making buying and selling interests serious.
Our vision, you know, also very bold and clear here, to become a global leader in online vehicle marketplaces. As you can see, our strategic priorities or pillars on that slide there are really just to strengthen our core, which is to enhance the scale and the strengths of the buyers today. The second one there is to extend our marketplaces, which is really to create new experiences for consumers, our products, and to deepen our value proposition for dealer to product sales and OEMs. The third one is around diversification and growth and when issuing your strategic M&A, where we're investing in innovative offerings, while also developing products and technologies that are going to drive sustainable long-term growth for the company. The fourth one there is finally around delivering operational excellence.
That's about driving growth through collaboration, high performance, and cutting-edge technologies, including AI that you see through the deck. Above all, our strategy is really underpinned by the great culture that we have in this organization, which guides how we operate, collaborate, and innovate across the globe, and ensuring consistency in our values and excellence in our execution as an organization. Onto slide ten. This slide here outlines a change in how we present our outlook, which since moving, to provide outlook at a group level across revenue, earnings, and impact. You can see here by executing against our strategic pillars at the top of the slide that we expect to deliver another excellent year of growth in FY2026.
We expect to see pro forma revenue growth of between 12% and 14% in constant currency, pro forma EBITDA growth of between 10% and 13% in constant currency, and adjusted impact growth of between 9% and 13% in constant currency. This outlook reflects our confidence in our strategy and the momentum that we're building across our global operations. We'll take you through some more content and detail on that in the financial slides coming up very shortly. Onto slide 11. I think most of you guys will recognize this slide, and it really just highlights the breadth and growth leaders across each of our businesses. Our core growth drivers, they're all in great shape, and newer initiatives are gaining traction and contributing more significantly, I guess, over time. As you can see from the bottom of the slide, we do operate in large, attractive markets with substantial TAMs.
With our current shares still well below 10%, we'd see significant long-term growth potential across every region that we serve. I'll also now spend a little bit of time, and there's probably about some of the new newer products and technology investments that are really driving better customer experience and engagement through the business. If we turn to slide 12, one of the ones that I'm particularly passionate about is the Australian C2C payments product. It's a solution we've been developing to offer consumers a safer and more seamless way to transfer funds between private buyers and sellers. Since launching this late last year, the late last calendar year, the product's really gained great traction with significant uptake in both buyers and sellers. Look at it, and it's probably a very short period of time. We've already facilitated over $130 million of payments or transactions.
Beyond C2C, we've talked a lot about this over time. Payments really unlocks to me slide and future opportunities across the transaction ownership phases of the car buying journey. If you can execute this well here, the financial upside longer term could be substantial. The technology is also built in such a way that it's globally scalable, and we see strong potential to roll this out in other markets that we have across time as well. Looking at slide 13, during FY2025, we have successfully completed what we refer to internally as Project Merlin. Merlin brings together our previously separate desktop and mobile experiences into a single responsive platform across web, iOS, and Android platforms. This not only simplifies our tech stack of the business, but it also enables fast and more consistent delivery across all devices and lays the groundwork for a more personalised consumer experience.
At its core, I guess Merlin really introduced a multitasking design system and just steered or enhanced delivery speed and really improved SEO. That was a key objective for us as well. It creates a more intuitive and engaging user experience, too. On the right side of the page there, there's another program we've been working on for some time. It's called Bello. That's about making it easier for dealers, private buyers, and sellers to connect via car sales. With this update, users of the car sales app can now see the dealership name and the specific car of interest when receiving a call, making them more likely to answer the call and less likely to mistake a scam call, which you can see on the slide. There's a pretty good example of how that appears to the consumer. Onto slide 14.
Our previously less performance in North America with increases in both the average number of dealers utilizing the product and the number of transactions. The growth spend is driven by product that delivers a lot of value, particularly in a more challenging market environment. Media has been a strong growth area for Trader Interactive, with direct media revenue up 167% year- on- year, reflecting really the strong advertising engagement and investment we're making there, and also the launch of our media agency, Zanara. On the right-hand side of the slide, you can see the SSI continues to gain momentum. It's doing really well. It's accelerating growth since we completed the Trader Interactive acquisition. SSI provides dealers and OEMs with a valuable set of market insights and overview to benchmark performance and make really good informed decisions. Just looking at slide 18 and talking about Latin America.
The national expansion in Brazil has continued apace, with a gap really between Webmotors and the number two player there in vehicle marketplace continuing to grow significantly in trust. Our strong partnership with our major shareholder partner Stellantis has been excellent and has enabled that product that you've heard us talk about before, called Wallet. That product's really thriving with around 9,000 dealers now on it, and the accelerated adoption of that feeds around premium Webmotors products, including depth, CRM inspections, things like Vision 360 and other enhancements that have really helped build dealer engagement and platform value for Webmotors has been very valuable to our standard too. Onto slide 16 and just talking about Asia. The Guarantee 2.0 product continues to go really well for us. It's going from strength to strength with AI utilization now unlocking additional efficiency and accuracy for the NCAR business.
Guaranteed inspections are up 20% year- on- year, driven by the opening of new centers that enhance efficiency in our existing ones through the use of AI. On the right side of the slide there, you can see that we continue to improve our home delivery experience for our Korean car buyers with the introduction of a 24/7 AI agent now facilitating an improved customer journey, particularly to those customers that are inquiring on cars outside of an hour's. Going to slide 18 now. We'll just jump over to Will to talk about the financial performance.
Thanks, Cam. And good morning, everyone. The group's delivered another great result in FY2025 and a marginal year of double-digit revenue and earnings growth. Before we go into the segment revenue and EBITDA performance in detail, I'll talk through the items below EBITDA, which you can see here on slide 18. Depreciation and amortization primarily relates to software development, leases, and building fit-outs. The increase you see here reflects the continued investment in software development, which supports our long-term growth. Some of the key initiatives that we've worked on over the last 12 months are C2C payments in Australia, the Wallet product in Brazil, and our new marine website in the U.S. Finance costs declined marginally year- on- year. This reflects stable debt levels and a largely unchanged interest rate environment. Our effective tax rate in FY2025 was about 18%, which was consistent with last year.
This reflects the applicable tax rates in each of our markets, except in the U.S. where we pay income tax due to the amortization of purchase price intangibles as well as us utilizing our prior period tax losses. Adjusted net profit was $377 million, which was up 11% on a constant currency basis, which was an excellent result. The strength of our financial performance, as well as our cash generation, had underpinned the board's decision to declare a final dividend of $0.415 per share, which is up 8% on PCP, representing a payout ratio of about 80%. To provide a clearer view of underlying performance, our adjusted results exclude some one-off and non-cash items, which we show on the slide here. In FY2025, this is narrowly related to non-cash amortization of intangibles and one-off costs related to the exit of our tires business. We provided all reconciliation in the appendix.
Moving on to slide 19. This slide highlights the excellent growth achieved across all our operating segments. Latin America and Asia are again standouts with the highest growth rates, reflecting our excellent execution in one of our very high potential markets. Performance in Australia and the U.S. is also really impressive, particularly given the ongoing pressure of higher interest rates in these markets. Cam is going to talk in more detail about each of the segments later in the presentation. Onto slide 20 now, our pro forma EBITDA margin summary just highlights another really strong result from a margin perspective. We've proved EBITDA margins being similar to last year at about 56%. Our business model continues to demonstrate operating leverage, which is supported by our disciplined approach to capital allocation as well as cost control.
We're strategically reinvesting some of this leverage back into product development growth initiatives, which we're going to cover later in the presentation. On a segment basis, it's great to see margins increase across all of Australia, Lithuania, and North America. In Asia, as we've called out previously, there's been a small decline in margins due to the opening of new branches as well as the increased investment we're making into our dealer-directed products. Now, onto slide 21. This slide highlights another strong year of free cash flow generation at 98%. This underscores the strength of our capital-efficient operating model. Our balance sheet remains robust with leverage at 1.7 net debt to EBITDA. On the right-hand side with our CapEx, we also continue to reinvest in product innovation and technology, with CapEx as a percentage of revenue holding steady over the years, as shown on the right-hand side. Onto slide 22.
As Cam noted, we've updated our approach to the outlook statement, and we're now providing specific growth ranges at a group level across revenue, EBITDA, and impact on a constant currency basis. These considerations that are outlined on the slide here are intended to provide context around the outlook. They highlight the key factors and the directional inputs that inform our view without being entirely prescriptive or exhaustive. While the growth may vary across individual markets, as you see on the slide here, it's the breadth and diversification of our portfolio which positions us well to deliver against the overall group level of expectations. That's it from a financial section perspective. I'll hand back to Cam to talk further about performance in each market.
Thanks, Will. That was great. Okay. Onto slide 24, just focusing on the Australian market. The automotive industry, I guess, as I mentioned before, has remained robust, and that reflects the strong audience engagement that we've seen and the sustained demand for cars over the CAR Group platform. Over the past 12, 24 months, we have observed a shift, as you can see on the top right-hand side there, in customer behavior with buyers becoming a little bit more price sensitive, as you'd expect, due to elevated interest rates. That trend is illustrated in purchasing intent on the top right-hand side of the slide, where there is a growing preference for used cars over new cars over the last couple of years. That has seen lead volumes continue to grow nicely for us through the year.
Pricing for used cars on the bottom right-hand side of the slide remains below the peak levels that we saw, but still up well above pre-COVID level benchmarks, as shown on that slide on the bottom right-hand side of the page. Importantly, because the client's been starting to steady, dealers have been able to maintain healthy gross margins, which is supporting the confidence in the used car market we've seen continue. Time to sell has returned to pre-COVID levels, driven largely by the slowing in the private market after what's been a very buoyant few years. Just a couple of other things there. Clearly, very happy with the Australian revenue performance growth at 8% and EBITDA growth at 9%, just looking at each of those segments.
Dealer growth at 10% was driven by strong demand for used cars, resulting in increased lead volumes, improved yield, and we've had a penetration of our depth product. It was also particularly pleasing to see our depth penetration delivering excellent value in market with more inventory reinforcing control and helping dealers promote effectively. Private seller, we continue to deliver strong outcomes for private sellers, maintaining a robust market share in what's been a slightly softer private seller market. At the same time, we've continued to grow private deal through pricing optimization and by scaling out and selling the product. Media revenue grew by 10%, reflecting the competitive new car market and strong advertiser demand.
This growth is being supported by a significant investment that we've talked about for some time in our media business, enabling us to deliver more innovative and personalized advertising solutions that resonate with the audience that we have. The CRS is our data business, and that reflects the continued demand for trusted vehicle data and insights, and reinforcing revenue rolling is a key contributor to the broader data service that we offer. Moving to slide 25, it's been an excellent year for Trader Interactive with revenue growth at 10% and earnings growth at 11% in constant currency. This is a very good result given the North American market for lease vehicles remains a little bit challenging with our lease and out of sports registrations, but both new and used units showing small declines in 2025 and 2024, which is on the right-hand side of the slide there.
There has been some recent uptick in transaction volumes, but still early days. We remain focused on delivering growth regardless of market conditions. Meanwhile, the truck and equipment markets have been very robust, highlighting the benefits of our certified portfolio across multiple industries. Our customer numbers have remained similar year- on- year, which demonstrates the strength of our value proposition. Growth continues to come from multiple sources, including an uplift in premium select transactions, yield increases, for instance, the recent dealer price rise that went very well, growth in media, data and insights, and the small but growing contribution from our marine business. Our ongoing investment in our dealer value proposition puts the business in a good spot to capture further growth as the market conditions continue to improve in the U.S. Onto slide 26.
Lithuania continues to deliver outstanding performance with revenue growth at 26% and EBITDA growth at 28% in constant currency, largely driven by our Webmotors. In Brazil, while interest rates don't increase there, we've seen no material impact on vehicle trading. There's been some softening in credit availability, but it's been quite marginal, and that's affected our clients' revenue. The Brazilian auto market remains strong, with 14.6 million new and used car transactions over the past 12 months, presenting a significant growth opportunity for us. Our national expansion strategy continues to build up, adding new deals and growing our audience. The digital advertising market in Brazil is still a much less mature market than Australia, and that positions us well for growth longer term.
Talked about it before, but the new loyalty program has been extremely successful for us, and that's accelerating the adoption of premium products such as depth, CRM inspections, and Vision 360. Average revenue per deal has been predicted too, so it's driven by a greater premium product penetration and pricing crisis. We're also seeing revenue diversification with strong growth in finance volumes and media, which should emerge as key growth drivers over the next 12- 24 months. These results include contributions from Webmotors, Change the Market Styles, which are Cars Can and Look, both of which have grown nicely over the past year. Additionally, Kia Lion's done an excellent performance as well with strong growth in both revenue and earnings. Onto slide 27. Looking at South Korea, you can see there on the right-hand side, top right-hand side, consumer confidence has increased recently.
Used car transactions remain stable over the last year, year- on- year, underscoring the real strength in the stability of the Korean car market. That was supported by the macro backdrop. NCAR has had another excellent year with revenue up 16% and EBITDA up 11% on a constant currency basis. We've added four new branches that extend our operating hours in our select inspection centers, which, as we mentioned before, are beginning to leverage AI for efficiency improvements. These initiatives have driven an increase in penetration of guaranteed inspection products, reinforcing its value in market. Revenue growth was further supported by a 10% price rise in Gareth V Apps, and we introduced that gradually from August last year. NCAR also continues to make really great progress on their initiative to facilitate online buying, which is reflected in the growth of NCAR Home and Dealer Direct.
Also continues to scale with further investments in advertising and marketing. I'll just talk a little bit more now about some of our FY2026 focus areas. We'll jump to slide 29. Coming soon in Australia, on the left side of the slide there, we're unveiling a refreshed suite of car sales consumer brands, featuring updated logos, imagery, and advertising campaigns. This brand evolution is designed to elevate the user experience while harnessing the strength of our brand portfolio. By doing so, we will be forced out competitive advantage and have new avenues to grow and solidify our position as a forward-thinking and customer-first leader in the market. On the right-hand side there, we're also expanding our private seller offering with the launch of trade-in with car sales, giving customers greater flexibility to control or choose how they want to sell their vehicle or upgrade their vehicles.
This new option enhances choice and convenience, reinforcing our commitment to a seamless digital experience that can provide our sales side. Go to slide 30. I just want to talk about AutoGuide's evolution. This particular slide marks a really transformative leap for our dealers, in particular evolving from what has been a publishing-only tool in AutoGuide to a powerful omnichannel SaaS platform. With the integration of AI capabilities, dealers gain access to predictive insights like time-of-sale pricing and inventory optimisation tools like slide market and promote type products. AutoGuide now includes a marketplace scouting feature that helps dealers identify high-value vehicles, natural language interfaces for actionable guidance, and automatic transcription of buyer conversation service intent signals in those conversations, such as budget and finance eligibility. All these innovations really streamline operations for our customers. They reduce reputation through third-party information.
They really help empower our dealers to move stuff faster while delivering average customer experience, which is what we're really pushing for. This is certainly one of the larger investments that we've made in enhancing our dealer capabilities for this core part of our business for a certain time now. Onto slide 31. Just looking at TR, we're enhancing our dealer experience in North America as well. Through Zanara, which I mentioned before, our new in-house media agency, we manage end-to-end digital advertising now from sessions in marketing to social and location-based campaigns for our dealers to really drive traffic back to the TR network. We've strengthened lead inventory management by implementing car sales telephony systems, fraud filtering, and our new CRM tools within TradeFast, which is the equivalent of AutoGuide. That's all bolstered by the acquisition of DP360.
On a data front, we're improving attribution and audience distribution via zip codes, matching our post-inquiry surveys, and search algorithm upgrades. Just looking at slide 32, we're also enhancing our private seller experience by launching a new concierge service. That's enabled by the acquisition of a small business called PopSells, which provides services in that area. Cash offering too often gives our sellers a fast way to achieve a deal of that fast sell maturity. The concierge service provides a formative solution handling everything from listing and photography to negotiation and paperwork. These additions offer sellers more choice, convenience, and confidence while helping dealers access quality inventory and improve conversions, especially against leads.
Looking at slide 33, sticking with North America, we're also targeting the billion-dollar marine market opportunity that we have through the launch of marine leads that many of you are aware of and the rollout of a pay-per-lead model, which we're very happy with how that's going. This approach really aligns dealer spend with performance and authority, driving really strong early traction through dealer participation and lead volumes that we're seeing. With these enhanced tools and the redesigned marketplace experience, marine leads is really well positioned now as a key growth driver for Trader Interactive and their portfolio. We'll be investing more money into marketing here in FY2026 to continue that, to grow value for our dealer customers. Just onto slide 34 now, looking at Latin America and Brazil and Webmotors. They've introduced a product called Elotron, which is a generative AI solution that automates daily buyer interactions.
What it does is it delivers instant context-aware responses, scored leads for the dealers based on engagement, summarized conversations as well. This should increase conversion rates for dealers over time, which will significantly add to Webmotors' value prop. Webmotors is also accelerating media growth in Brazil, targeting the $1.5 billion media market, which, like Australia, has over 60 OEMs. Onto slide 35, looking at South Korea. Guarantee 2.0 is an evolution of our original inspection-based guarantee product designed to deepen consumer trust and drive dealer performance. We're introducing Guarantee Plus Plus listings, which provide differentiated listings, more detailed inspections, things like underbody photos, extended warranties, and a seven-day money-back guarantee. This strategy really builds on the success of the original guarantee product, which now reaches 59% penetration of new listings on the NCAR site.
Looking at NCAR Home, the focus is going to be on scaling adoption, expanding inventory, enhancing automation through AI, and visiting integration across the NCAR ecosystem to really drive trust, efficiency, and growth. Lastly, on the right-hand side there, just looking at DealerDirect. We've increased our advertising spend there, as many of you would be familiar with over the last couple of years. That has been to really accelerate awareness and adoption of the DealerDirect product, supporting our goal to grow market share in the country's largest and underpenetrated online trade-in system. Onto the final slide.
As I wrap up my final results conference call, I'm proud to reflect on the group's excellent performance and growth in revenue and earnings, driven by multiple growth levers that continue to build on our market leadership positions, strengthening our core competitive advantage, and removing those friction points in buying and selling, unlocking new monetization opportunities along the way. Our international markets present a giddy upside with new products driving customer acquisition and take rates across the board. We're also leveraging our bipedal technology across our regions of place, with much more to come. We've got an experienced and focused team who are really energised by the potential growth in our business. This gives me great confidence in the future that we have. Importantly, we remain a strong generator of cash flow with a robust balance sheet, enabling us to invest for the future while delivering attractive returns to shareholders.
The last thing I'll say is a big thanks to all of you on this call for all your support and friendship over many years. It's been a massive privilege for me to lead this incredible company. I'm proud of the value that we've delivered to shareholders and really the fun that we've had and personal growth too, I guess, that we've had along the way. I'm also really extremely confident in the business that we have. It's in great hands with an incredible leadership team being exceptionally well led by Will. It's really well positioned for the continued success that we've seen into the future. With that, I will hand over to questions.
Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speaker phone, please pick up the handset to ask your question. Your first question comes from Eric Choi Barrenjoey . Please go ahead.
Awesome. Thanks for the questions. Rachel, do you want me to ask them all at once or one by one?
Just ask them all at once, Mike.
Thanks, Cam. All right. Maybe first one for you, Cam. I don't know if you remember at the August 17 conference call, which was your first as CEO, but at that time, you said it was your job to plant acorns that grow into oak trees. If I reflect on some of the oak trees you've helped grow, obviously, CAR Group is more than half international, a double-digit earnings grower. There's a culture of cross-pollination. My first question is, what are some of the acorns that you and Will and the rest of the team are only just starting to plant and investors will benefit from in the next, say, 5- 10 years? Second question is for David, just on the U.S. I think even if we exclude M&A, you're guiding to double-digit revenue and double-digit EBITDA growth.
There are some in the market who are questioning if you can actually achieve that. That's not us. My question is, can you give us some color on how subscribing dealers and initiatives like marine leads, Zanara, SSI, all of those things are tracking in early FY2026? That gives you the confidence to guide in a reacceleration. Then just the third question for Eduardo. For CAR Group guidance to work, I think it implies Latin America grows revenues in the 20s again, probably similar to FY2025. This is better than consensus, which has it falling to the teens. Just wondering, Eduardo, can you comment if any of the key drivers in FY2025, and there's too many to name, you know, media, wallet, finance, etc., etc., are any of them actually materially slowing in FY2026? Thanks.
Thanks, Eric. I'll do the first one. Thanks for reflecting on acorns, towed trees, and motor motors. Plenty of oak trees around this table sitting with me today. I think 10 years out is a long way to project. If I think about what we've got on the deck in terms of the things that we're working on around 2026 and beyond, there's an incredible amount of innovation going on throughout the business at the moment. The product pipeline is the best I've seen it in a long, long time. You hit the nail on the head, mate. The collaboration across the group in terms of sharing IP and technology is a leap at the moment, as well. I think that's going to set us up nicely.
I think it was slide seven or eight where we talk about the markets that we're in and the TAMs that we have available to us. If I reflect on our TAM penetration, we're only single digit across the globe. If we keep executing the way we are and we project over 2026 and beyond, this business is going to continue to grow very, very nicely, Michelle. I think for me, there's many, many different opportunities that we've got. The team that we've got here, I think, will continue to execute for many years to come. David, if you want to talk next one.
Sure, Cam. Yeah, look, Eric, good question. If I think about the way we finished the FY2025 year, traffic and connections have really ticked up. It's been nice. The price rise that we did at Q4 went very, very well. That was really pleasing. A premium select product continued to outperform. Our private volume notably lifted, which was nice because we hadn't seen that for a while. That, coupled with the yield work that we've done, is really beneficial. From a media standpoint, we had an exceptional sort of finish to the year, and we take that into FY2026. Our data business went from strength to strength as well as laying down a really strong foundation as it related to marine. As you know, we've worked really hard to diversify our business. I just think we're well set.
We've got a great product roadmap as it relates to our dealer business with Premium AI, as I said, as well as Zanara for digital agency. The media business is growing from strength to strength. We launched Zanara, so we've not only built a media business, but we've also got a new in-house agency, which is going to be really strong for us moving forward. Our OEM relationships continue to improve. That's been what we've been doing over the last 18 months. I feel really confident moving into FY2026. The other thing is that our biggest segment, RV, has really started to show signs of improvement in Q4 and into FY2026, which is pleasing for us. Retail sales have grown for the first time in a long time.
Dealers are looking for inventory now, which is the first time they want to adapt to a long-time used inventory via our cash-off product. Our OEMs are very active. The tariff impact for RV is also a lot less because a lot of it's locally sourced and produced. From a customer perspective, big customers and smaller customers are starting to do well. All in all, that's why we're looking for double-digit growth in revenue and why we're targeting double-digit growth for profit, even with the marine investment.
Can I ask a quick follow-up, David, just because there's a lot of, I guess, chatter around margins? Obviously, you've made some U.S. M&A. Can you comment on whether the revenue contributions are greater than the EBITDA contributions from that M&A? Therefore, would you have seen margin accretion if not for that M&A? Sorry.
Yeah. Look, without the investment in marine, we would have seen margin improvement, okay? In terms of the investments, yes, we've got some revenue coming from that, but only small and margin profit.
Okay. Thanks, thanks, Eric, for the question. What I can say, look, of course, as the base growth is going to become harder and harder to keep the 25% level of growth. I think that we have several levers to keep growing strongly, and I'm very confident of that. Asking your question about slowing down, I'm not seeing right now any slowing down in this segment. I still believe that we have opportunities in terms of premium products and the integration with wallets. It's working very well. We had a lot of things to evolve. Media also, we developed a lot of products that we shared, the knowledge with Craig's team in Australia. It's working very well, and it's a great opportunity looking ahead. Financing, of course, we have the highest points in terms of interest rates.
We are seeing the market, some impact, but not, Santander is really, really resilient in terms of that because they are more focused on high-end clients, and we are not seeing a relevant impact of that. Lupi, Carten, still a lot of things to do and to grow. That's my expectation and the reason that I'm bullish, looking ahead.
Thanks, team. Cracking 18 years, Cam. You'll be missed. Thank you.
Yeah, thanks, Eric.
Thank you. The next question comes from Entcho Raykovski from E&P . Please go ahead.
Morning, Cam, Will, and team. Just before I start, Cam, well done on a great tenure. Onto my questions. Can I just focus on the acquisitions at TI? I mean, obviously, you sort of responded to this to some extent in response to Eric's question, but are you able to give us the expected contribution from acquisitions to revenue growth in 2026? I wonder if you can disclose what you've acquired and whether those acquisitions will be a positive contributor to EBITDA. It seems from the guidance that they're not, so if you can clarify, that would be great. Secondly, in the guidance for TI in 2026, what are you assuming for the pricing contribution? If you can, in particular, talk about whether it's likely to be a smaller contribution, greater contribution than FY2025.
I'm conscious that the ultimate impact may be dependent on the macro environment next year when you decide to increase price again. Do you now expect to move to an April price increase cycle? Is that sort of the new normal? The final question, question on private yield. I know you've mentioned it as one of the drivers for Australia growth, but specifically, our track is picking up some decreases in prices in some regions, particularly in Queensland. I'm just interested in how you think about yield as a growth driver at the aggregate level in private and whether you expect it to slow down. Thank you.
Yeah, mate, I'll start. Just on the acquisitions, they're small businesses. They're strategic, okay? If I think about the PopSells business, it really provides our private sellers and buyers with concierge service to RV as well as the boat market, which is nice for us. We'll spend a good part of this year integrating that into our private selling experience, okay? We'll also introduce a thing called closing services. In the U.S., actually, closing a sale and transferring title registration, making sure there's no lien on the asset, is a very complicated process. We'll introduce that to our private sellers, which we think will be a good benefit, but will take us time to execute. From a DP360 perspective, and finally, sorry, not sellers, I mean, this gives us a great point of difference versus Facebook and our competition as well.
As it relates to the DP360 CRM business, there's a massive cut across our recreation verticals, which is really good. We expect to drive synergies from their business and our business together in terms of customers and customer penetration. We're going to be really focused on lead nurturing, really taking marketplace leads, warming them up with AI, and then ultimately helping the dealer to get the consumer further down the path. Not really huge revenue-generating things, but things that absolutely help our marketplace business reinforce the value that we've hired there and help the business and help dealers with a pain point. In terms of revenue, revenue will be a small amount, and profit will be marginal in this year for those two businesses. As it relates to price, the way we're thinking about it as we do revenue, it's obviously August. We'll assess the market.
We'll assess value, but we're really happy with how the year started out. June was really strong. July and August really started off well in terms of visits and connections. That's obviously a key driver of value. We'll continue to look at that, consider that over the next few months, and then ultimately make a call probably just after Christmas. I don't expect it to be any less than last year.
Okay, Craig Fraser here, mate. I'll cover off on the private question. We are always adjusting our pricing with value-based pricing and expect to see a little bit more of that into the future. We're always testing certain price brackets in different markets. A couple of things. We have seen a slight improvement in private yield in the back half in H2 in the 2025 financial year, and we expect that to carry into the 2026 financial year with a pretty strong start in July-August. There's also a number of other things that we've got happening behind the scenes in terms of private, with some new brand activations to really drive greater awareness of C2C, which is really exciting. That'll go live on the 20th of August, which again will drive greater value to private sellers, and we should also see a slight improvement in yield.
Okay. Great. Thank you.
Thank you. Your next question comes from Kane Hannan from Goldman. Please go ahead.
Morning, guys. Three from me as well. Maybe one for you, Will, to start with, just reflecting on the transition to being the CEO, how CAR Group strategy might evolve. Is there any sort of early comments you can make here around, you know, at the margin where we might see things start to evolve, whether that's your appetite for M&A, you know, monetizing your current market positions, just any comments there would be helpful. Secondly, the Trader Interactive margin outlook next year, that is, I think, the first time since acquisition that you're expecting margin declines. Do you think it's still possible for Trader Interactive to do double-digit EBITDA growth next year with the investment and then that M&A? Or do you think that investment is more about maintaining the double-digit revenue growth going forward?
Lastly, just the product pipeline, Cam, I think you said it's as good as you've seen it. Talk about how we think about the monetization timeline of these products, when they might be commercialized. I suppose what's captured within the 2026 outlook versus, say, more of a 2027 story would be helpful. Cheers.
All right. Thanks, Cam. I'll kick off with strategy. First, I just wanted to acknowledge Cam's contribution. He said some nice things about me on the call, and I didn't get an opportunity to respond, but he's done an amazing job with the business. The best present that he can leave is obviously a legacy of an amazing leadership team, and as he said, a business that's poised for continued growth. It is unsurprising given I've been here for 10 years and the last five as CFO that it's going to be a strategy of continuity and evolution. We have so many growth levers in front of us. Your second question was about product pipeline. As you can see in the FY2026 focus areas, we're just scratching the surface in terms of our involvement in the full transaction journey.
The strategy going forward is going to be to continue to get more heavily involved in that full transaction journey. We're going to be using AI more and more to accelerate that experience, the consumer experience. That's certainly going to be a part of our strategy going forward, but it is certainly going to be one of continuity. M&A strategy unchanged where, you know, an acquisitive business, we've delivered a lot of shareholder growth through M&A, and we think we can continue to do that going forward, but we have a very high bar for our investments. That's probably a good summary. Maybe I'll hand over now to David to talk about U.S.
Yeah. Mate, look, as I said earlier, we're targeting double-digit growth. You know, is it possible? It's absolutely possible. If you heard what I was speaking about before, mate, a lot of those products are very, very high margins. That's nice. The second thing is the team's done some really great work as it relates to our cost base over the course of FY2025 as well, in particular around software, obviously, the utilization of AI inside our technology environment. Ultimately, working with Will and Jason and the team around group deals to drive costs down. It's absolutely possible, and that's what we're targeting.
On the monetization timeline, Cam, with all the focus areas that we've got in 2026, there will be some of those products and innovations that will go into things like price and other things that will just continue to evolve. Like BOKE Mart and the investment that we're making in BOKE Mart in both product and commercial models, the traction that the team's getting there, there will be continuation of ongoing monetization, those sorts of things. I think you'll see a combination of 2026 monetization, and then you look out a little bit further with things like C2C and how the business will monetize that over time as we continue to get traction there. I guess it's probably more a 2027 plus story, but expect to see certainly some cool things coming through in 2026 that will be monetizing.
Awesome. Thanks, guys.
Thank you. Your next question comes from Roger Samuel from Jefferies. Please go ahead.
Oh, hi. Morning, team. I've got three questions as well, please. First one, just looking at your FY2026 guidance, if I look at the range for revenue and EBITDA growth, it implies a 1% point decline in the margin. Is that how we should be thinking going forward as the proportion of your earnings from offshore is growing relative to the domestic business? Second question is more around long-term threat to the business. We've seen that Amazon is starting to sell used cars in the U.S. It's only for Hyundai at the moment, but do you see any potential disruption to the business in the horizon? The third question is on South Korea. It seems like the penetration of guaranteed inspection is still stuck at 59% of Newlings' things. That's consistent with the last result.
Is that the core focus of the business now, or you're sort of leaning more towards dealer-direct home delivery in Korea? Thanks.
Yeah. I'll take the first one, Roger, just in terms of the margin performance. You're right. We are calling out the range of revenue growth to be a little bit higher than EBITDA growth. There are three things there. One is investment in marine. Next year, we're going to step up a little bit because we see huge opportunity there. The second one is we're continuing to invest in marketing, in Dealer Direct, in NCAR, and also the small deals in the U.S. that we've acquired. We'll add some revenue, but minimal EBITDA. All of those mean that there will be a slight gap between revenue and EBITDA growth likely. The thing that is pleasing is you're seeing the top end of the revenue growth range being higher than what we delivered in FY2025. That reflects us targeting growth. We are a growth business.
As we discussed before, we've got so many opportunities in front of us. That doesn't mean we don't have operating margin expansion potential going forward, which we certainly still have, but we reserve the right to continue to invest in things to drive growth going forward. In terms of the threat question around Amazon, look, we've encountered many competitors over the journey. We are a paranoid business at our core, and we're always looking to try and make sure that we avoid being disrupted. This is just another one of those competitors that we need to watch. We're not concerned about this versus any other competition that we have. We're very confident in our ability and our market position to keep growing. I might hand over to SB just for the third question around South Korea and the guarantee.
Sure. It's from Will. A partner, you have a question on Guarantee. I think I mean about a year ago, our penetration of Guarantee was—can you hear me?
I want to stop what Rachel just spoke about for a moment. She said that wasn't happening. Sorry, someone needs to go on mute there. I can hear someone on the line.
Considering.
All right. A part of the penetration of Guarantee, I remember there was a relatively early 50% about a year ago. Now it's at 59%. I still believe that, I mean, there's no reason why we cannot make it grow until 70% or above 70%. Of course, it would be harder to increase compared with when we are at the beginning stage to make it grow from 10%- 20% or 20%- 30%, but still we can grow that. At the same time, in addition to making the Guarantee to be more contributing to our revenue growth, there are two things that we have been focusing on. The first one is to launch the Guarantee 2.0, as you may be seeing in the tag, because there must be a customer who is willing to pay more in the Guarantee 1 customer segment.
We would like to provide better services for them to be able to pay more on that. The second one is, in order to increase 60% to the 70% penetration, we need to be a little more innovative to address the inventory that we're dealing with in the rural area with a lighter branch format. To make our branch format a bit more lighter and innovative is the second thing that we have been focusing on. By doing these two things, there's no reason why we cannot reach higher percentages rather than capturing more value out of the Guarantee in the future.
We have time for one more question.
Thank you. Your last question comes from Siraj Ahmed from Citi. Please go ahead.
Thanks. I'll ask you maybe first one, David, just in terms of the guidance for next year, can you just touch on boats specifically? I hear you're assuming much for boats. Maybe just in that, if you can just give an update as to how, you know, it's tracking as well after you turned on the leads pricing model. The second one, just maybe one on Australia, Craig. I mean, you're talking about the AutoGuide Revolution . Just keen to understand whether you assume much for that in terms of, you know, depth increase and price in the FY2026 guidance, or is that into 2027 and beyond? The second part on that, just in the private, I mean, it did slow to sort of 3% growth in the second half. You are saying it's a strong start, and I think your guidance assumes volume growth as well.
Can you just touch on, yeah, what the drivers for private into 2026 is? Thanks.
As it relates to boats, look, I'm really pleased with the guys and with the business in terms of the launch of CPLs. We launched that essentially in Q4. As you guys know, as a challenging brand and with a model that's different from the U.S., but the Australian leads model, we're really standing behind what we sell, which in that competitive landscape looked like a smart thing to do. Customer growth has been moving along really, really well. We signed MarineMax, the biggest marine dealer in the world. That's really pleasing and obviously helps other customers take note of the platform. Our traffic's growing rapidly. We're approaching 2 million visits a month, and the nice thing about that is that our organic traffic's really starting to accelerate now, which is pleasing based on a lot of the strong SEO work that the company has done.
With that, leads are at record highs. There's some real interest from the industry itself in terms of dealers really just craving an alternative. The nice thing is with both acquisitions, DP360 has a lot of really large overlap with our marine dealers. PopSells, the second part of their business is RV and then boats, so we'll introduce that into that environment as well. I feel really good about where we're at with boats and with the investment, really optimistic about what we can continue to achieve.
Yeah. Regarding AutoGuide Revolution, we co-created AutoGuide Revolution with our dealer council partners to make sure that we're really focusing on an outside-in and developing solutions for the future that really help our dealer customers with onboarding, acquiring of vehicles, and making sure that they're pricing them to market to turn stock in a timely manner. There are a number of additional features that have gone live within AutoGuide Revolution, which is essentially to create greater value for our existing customers. There will be some additional features into the future, which we will look to monetize. In terms of commercial upside in the 2026 financial year, we see that Revolution will very much be supporting our existing base in the 2026 financial year.
Got it. Yeah, there was a last question. I was surprised you asked about private selling. Can you repeat the question?
Yeah, it's just private. I mean, it's low to 3% in the second half. I think volumes are negative, but sounds like you're assuming volume growth in 2026. Is that what you're seeing in July and August? Thanks.
Yeah, we see volume remaining pretty steady. What we are seeing is, instant offer is performing well for us, and with all of our pricing adjustments in terms of value add and what we're about to kick off on the 20th, we see the volume remaining fairly steady in the 2026 financial year.
Excellent. That takes us to the end of the call. Thanks, everyone, for joining this morning. Really appreciate it. Best of luck with the rest of earnings season. For the team, that will be going around talking to everyone over the next couple of days, thanks for joining.
That does conclude our conference for today. Thank you for participating. You may now disconnect.