For years, Southeast Asia’s online used-car platforms were judged mainly by how fast they could expand: more inspection centres, more listings, more buyers, more cities. Carsome’s latest numbers suggest the sector has entered a different phase, one where scale still matters, but profitability is becoming the sharper test.
The Malaysia-headquartered used-car e-commerce group reported record quarterly EBITDA of US$8.3 million for the second quarter of 2026, up 38 per cent from a year earlier. It marks the company’s tenth consecutive profitable quarter on an EBITDA basis, a milestone that matters in a market where digital automotive players have often struggled with high operating costs, thin margins and uneven consumer trust.
Also Read: Carsome hits US$5M EBITDA in most profitable quarter yet
The firm sold 35,903 vehicles during the quarter ended June 30, up 11 per cent year-on-year. Gross profit rose faster, climbing 15 per cent to about US$43.8 million. The company said the improvement was driven by a larger share of retail transactions and financing services, rather than simply higher vehicle volumes.
That distinction is important. Wholesale used-car transactions can drive scale, but retail sales, financing, warranties and related services typically create stronger unit economics. In plain terms, Carsome is trying to earn more from each car it touches, not just sell more cars.
“Q2 delivered what we set out at the start of the year. We sold 11 per cent more cars, grew gross profit by 15 per cent, and grew EBITDA by 38 per cent,” said Eric Cheng, co-founder and Group CEO of Carsome. “Each line growing faster than the one before is what operating leverage looks like in practice.”
From volume chase to operating leverage
EBITDA (earnings before interest, taxes, depreciation and amortisation) is not the same as net profit. But for high-growth companies, it is often used as a measure of whether the core business can generate cash-like earnings before accounting and financing costs.
In Carsome’s case, the latest quarter indicates that its cost base is not rising as quickly as gross profit. That is the operating leverage Cheng referred to: once inspection infrastructure, showrooms, logistics networks and technology systems are in place, every additional transaction should ideally contribute more to earnings.
This is a notable shift for a company that, like many venture-backed platforms, spent its earlier years building density across markets. Southeast Asia’s used-car trade remains fragmented, with many purchases still happening through small dealers, informal networks or offline classifieds. Platforms such as Carsome have tried to bring more structure to the process by offering inspections, fixed-price retail experiences, trade-ins, financing and after-sales support.
The challenge has always been execution. Cars are expensive physical assets. Unlike purely digital marketplaces, used-car platforms carry inventory risk, require refurbishment capacity, need large inspection networks, and must win trust from both sellers and buyers. Expansion can become costly if volumes do not rise quickly enough to absorb fixed expenses.
Carsome’s tenth straight EBITDA-positive quarter suggests the company is finding a more sustainable balance between growth and cost control, at least at the operating level.
Malaysia deepens, Indonesia expands
During the quarter, Carsome continued to add physical locations in its core markets. In Malaysia, it opened three new sites in Sungai Petani, Bukit Tinggi in Klang, and Sungai Buloh, bringing its network to 55 inspection centres and showrooms nationwide.
Also Read: Carsome turns profitable in FY2024 with US$10.5M EBITDA
Malaysia remains a strategically important market for the group, not only because it is Carsome’s home base, but also because vehicle ownership is high by regional standards. The country has a mature used-car ecosystem, but it remains highly fragmented, leaving room for players that can offer standardised inspections, transparent pricing and financing options.
Carsome also expanded in Indonesia, opening four new locations in Greater Jakarta. The company now has 10 inspection centres and showrooms in the area. Indonesia is a more complex prize: it is Southeast Asia’s largest economy and has a vast population, but car ownership remains lower than in Malaysia or Thailand. That creates long-term upside, though the market can be difficult to serve because of geography, financing gaps and varying consumer behaviour across cities.
The group’s partnership with Suzuki Cars Malaysia as the carmaker’s exclusive official trade-in partner also points to a wider industry trend. Automakers and distributors are increasingly looking for structured trade-in channels to support new-car sales, while digital platforms want access to higher-quality used-car supply. In markets where affordability is under pressure, the line between new and used-car ecosystems is becoming more intertwined.
Why used cars matter in Southeast Asia
Used cars occupy a practical space in Southeast Asia’s transport economy. New vehicles have become more expensive for many households, while public transport access remains uneven outside major urban centres. At the same time, motorcycles dominate in several markets, but as incomes rise, many families still aspire to own a car for safety, comfort and mobility.
Financing is central to that transition. A platform that can combine vehicle discovery, inspection, credit assessment and loan facilitation has a better chance of capturing more value across the transaction. It may also reduce friction for consumers who are wary of hidden defects, unclear pricing or unreliable dealers, long-standing pain points in the used-car market.
For Carsome, the shift toward financing and retail is therefore not just a margin story. It is also a way to become more deeply embedded in the buying journey, rather than acting only as a marketplace or sourcing channel.
Still, risks remain. Higher interest rates can dampen demand for vehicle financing. Inventory-heavy models can suffer if prices move suddenly. Consumer confidence, fuel prices and regulatory changes can all affect car purchases. In Indonesia especially, competition for reliable supply and affordable credit can be intense.
A crowded road ahead
Carsome’s closest regional rival remains Singapore-headquartered Carro, another major integrated used-car platform with operations across Southeast Asia. In Indonesia, players such as Moladin have also targeted the used-car and auto-financing chain, while traditional dealers, bank-backed financing networks, and classified platforms continue to compete for consumer attention. Globally, companies such as CarMax in the US have shown how large used-car retailers can scale, but they have also demonstrated how exposed the model can be to credit cycles, inventory costs and shifts in vehicle prices.
That competitive backdrop makes Carsome’s profitability streak more relevant. The company is not operating in a winner-takes-all software market; it is competing in a capital-intensive, operationally messy industry where local execution often matters more than brand alone.
Cheng said Carsome’s priorities for the rest of the year remain “growing transactions, expanding unit economics, and demonstrating operating leverage”. The phrasing may sound like standard corporate discipline, but in the context of Southeast Asia’s startup ecosystem, it reflects a broader reset.
Investors are no longer rewarding growth at any cost as freely as they did during the low-interest-rate years. Startups across the region, from fintech to logistics to commerce, have been pushed to prove that their models can generate durable margins. Carsome’s latest quarter fits that wider narrative: the company is still expanding, but the bigger story is that each layer of growth appears to be contributing more to earnings.
The next test will be whether it can maintain that trajectory as it adds more sites, pushes deeper into Indonesia, and grows financing-led transactions without taking on excessive risk. For now, its second-quarter results give the used-car platform something many scaleups in Southeast Asia are still trying to secure: evidence that growth and profitability can move in the same direction.
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