2 Cheap Cars Group (2CC) H2 2025 earnings summary

Executive summary

• FY25 was challenging due to recessionary conditions in New Zealand, resulting in a 6% revenue decline to $82.0M and a 47% drop in NPAT to $3.3M compared to FY24.

• Profitability was maintained but below expectations, with margin compression and rising external costs, especially from third-party digital advertising.

• The company responded by focusing on direct-to-consumer digital channels and operational efficiencies.

Financial highlights

• Revenue: $82.0M, down 6% year-over-year.

• NPAT: $3.3M, down 47% from $6.2M in FY24.

• Underlying EBITDA: $8.0M, down 32% from $11.8M.

• Contribution margin: $17.8M, down 14% from $20.7M.

• Gross dividend: 6.03 cps, down from 11.56 cps.

• Operating cash inflow: $6.7M, slightly down from $6.9M.

Outlook and guidance

• FY26 priorities include improving execution, enhancing control over marketing, and safeguarding margins.

• Continued focus on cost management, operational efficiency, and digital engagement.

• Plans to diversify vehicle sourcing to mitigate regulatory risks related to carbon credits.