Auto Trader Rides the Car‑Market Wave but Flags a Slower Slope Ahead
UK’s biggest online car marketplace, Auto Trader, just dropped its 2025 earnings report. The numbers are solid—total group revenue and the average revenue per retailer nixed a neat 5 % uptick. Operating profit jumped 8 %, and basic earnings per share climbed a healthy 12 %. The big takeaway? Auto Trader plans a slight lift in revenue growth next year, but the optimism is tempered.
What the Numbers Mean (and What They Hide)
- Revenue growth slowed to 5 % this fiscal year, mainly because fewer retailers are buying Auto Trader’s “paid stock” slots.
- That dip is surprisingly linked to a booming used‑car market—demand is so high that cars are selling like hot cakes, making retailers loosen their advertising budgets.
- Looking ahead, Auto Trader forecasts retailer revenue to tick up by 5-7 % in FY26, a pace that sits below what analysts were betting on.
Charlie Huggins on the Market Pulse
We chatted with Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club, who put the curve in context.
“The buoys are still lifting the used‑car barge, but the tide has ebbed a bit for retailers,” he chuckles. “With supply outstripping demand, buyers are hurrying to close deals, and that means they’re slashing ad spend on Auto Trader. Hence the 5 % growth instead of a rocket launch.”
What’s Next? A Gradual Speed‑up?
Or A Calm After the Storm?
Auto Trader stands at a strong foothold in the market, but it’s clear the used‑car frenzy isn’t limitless. When demand moderates and supply starts easing, the company could see a rebound in revenue growth—think of it as the hairline crack that grows back into a dent in the road.
In the meantime, investors might want to dial back their ambitious growth forecasts for FY26. The market’s not yet in full‑blown “buy‑now” mode, so patience may pay off.
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