Gumtree Markets Australia, which operates the country’s leading horizontal marketplace, reported a sharp improvement in full-year earnings from its core classifieds business after selling its Capital Markets unit.
The company posted group revenue of AUD74.4 million ($48.5 million U.S.) for the 12 months to June (FY2025), down 8% year on year (y-o-y). Group EBITDA nearly doubled year-on-year to AUD6.0 million ($3.9 million U.S.), with growth in its motors segment more than offsetting weaker demand for display ads.
In June, Gumtree sold its Capital Markets division, which included the stock-trading forums HotCopper and StockHouse and financial news site the Market Online, for AUD6.8 million in cash, allowing it to sharpen its focus on classifieds. Following the sale, Gumtree closed its Perth office, with all staff now based in Sydney.
Chief executive Tommy Logtenberg said that focusing on the classifieds marketplace, alongside cost savings from systems migration, would support higher profitability. “The simplification of the investment story and the focus on the exciting online marketplace sector, with higher profitability levels, are expected to deliver superior results,” he told shareholders.
The company’s core classifieds business delivered EBITDA of AUD9.3 million, up 32% y-o-y, while net profit more than doubled to AUD3.4 million from AUD1.5 million in FY2024. That improvement, led by listings growth at the motors business and new transactional products, helped narrow the group’s net loss to around AUD100,000 in FY2025 from AUD2.4 million in FY2024.
Motors revenue — which includes the AutoTrader Australia and CarsGuide verticals — climbed 6% on higher listings and product rollouts, partly offset by softer advertising markets. It is also trialling a joint venture in New Zealand’s auto classified market with media company NZME.
The company expects EBITDA to grow by 20% y-o-y to AUD7.2 million in FY2026 as lower office expenses and the completion of a systems migration reduce costs.
