AUTO1 Group (LON:0A9L) reported its most profitable quarter to date in the third quarter of 2026, as higher gross profit per unit and controlled operating expenses lifted adjusted EBITDA and margins despite supply constraints tied to the macroeconomic environment.
The company sold 243,000 vehicles at the group level, an 11% increase from a year earlier. Revenue rose 10% to €2.3 billion, while gross profit increased 16% to €298 million. Gross profit per unit, or GPU, reached a record €1,234, up 5% year over year.
Adjusted EBITDA rose 46% to €76 million from €52 million in the prior-year quarter. The adjusted EBITDA margin expanded by 80 basis points to 3.2%, also a company record. Management attributed the performance primarily to the rollout of a new trading system across its Merchant and Retail businesses, as well as disciplined selling, general and administrative spending.
Merchant business exceeds €1,000 GPU milestone
In the Merchant segment, AUTO1 sold 211,500 cars to partner dealers, up 10% year over year. Merchant gross profit increased 15% to €212 million, while GPU climbed to a record €1,005, exceeding €1,000 for the first time.
Management said the Merchant trading-system rollout is complete and has improved transaction speeds, helping reduce holding costs and replenish available vehicle selection more quickly. Merchant adjusted EBITDA increased 30% year over year to €80 million, while the segment’s adjusted EBITDA margin rose 80 basis points to 4.5%.
The number of dealers buying through AUTO1.com increased 18% to 36,500. Average purchases per dealer declined to 5.8 vehicles from 6.2 a year earlier, which management said partly reflected an influx of new dealers that begin with smaller baskets.
The company’s Merchant financing portfolio reached €330 million at the end of the quarter, up 16% year over year. AUTO1 said it plans to speed up financing expansion through a Buy Now, Pay Later product, beginning with Italy and followed by Romania, Hungary, Greece, the Czech Republic and Portugal in coming quarters. Under the product, dealers can choose to repay for vehicles after 60, 90 or 120 days with a fee added to the vehicle price.
Retail losses narrow as Autohero grows
Autohero, the company’s retail unit, sold 31,400 vehicles to consumers during the quarter, up 16% year over year. Retail gross profit grew 18% to €86 million, and retail GPU rose to €2,777, including a €274 sequential increase.
The Retail segment’s adjusted EBITDA loss narrowed to €4.3 million from a loss of €9.6 million a year earlier. Its adjusted EBITDA margin improved by 1.3 percentage points to negative 0.8%.
Management said Autohero was supply constrained, particularly late in the quarter, but noted that previous production-capacity constraints were improving after the company accessed new hiring pools. Average delivery time fell to 8.9 days, down 13% from the prior quarter, while aided brand awareness reached 39% across its markets, up seven percentage points year over year.
AUTO1 also began piloting cross-border Retail listings, offering selected German inventory to customers in Poland and Italy. The company described the initiative as an asset-light option because vehicles move only after being sold. Management said it is initially focused on faster inventory turns and filling selection gaps in individual markets, while profitability optimization may become a larger focus as volumes develop.
Supply constraints expected to be temporary
Management said rising fuel prices since February created wider gaps between buyer and seller price expectations after reaching what it described as a critical threshold around August. The resulting supply pressure reduced the number of vehicles available for sale on AUTO1.com to an average of 44,000 in September, from 47,000 in June.
While demand remained strong, the company estimated that Merchant unit growth would have been 21% year over year rather than 10% without supply constraints. Retail unit growth would have been 33% rather than 16%, according to management.
The company expects buyer-seller pricing gaps to narrow over the next eight to 12 weeks if fuel prices remain near current levels, based on its experience with prior disruptions. Management said it believes the affected transactions are delayed rather than lost.
- Inventory ended the quarter at €878 million.
- Consumer finance portfolio balances reached €783 million, including €683 million externally funded.
- More than 80% of €2 billion in assets across inventory, consumer finance and Merchant finance pools was externally funded without recourse.
- The company reported no corporate debt and total cash of €707 million, up €32 million from the end of the second quarter.
AUTO1 reaffirmed its full-year 2026 guidance range issued in February. It expects unit sales and gross profit to land around the middle of the range, while adjusted EBITDA is expected at the lower end. Management also said it continues to support its medium- and long-term capital markets day targets, and expects to provide 2027 guidance with fourth-quarter results in February.
About AUTO1 Group (LON:0A9L)
AUTO1 Group SE operates a digital automotive platform for buying and selling used cars online in Europe. It operates AUTO1.com for the sale of used cars to professional car dealers; Autohero.com for sale of used cars to private customers; and wirkaufendeinauto.de, an online platform to sell their used cars to consumers. AUTO1 Group SE was founded in 2012 and is based in Berlin, Germany.
