Autotrader grew operating profits by 4% year-on-year to £392.7 million as the automotive marketplace strengthened its market position and expanded AI tools for retailers.
The FTSE 100-listed business reported group revenue growth of 4% to £624.3m for the year ended March 31, 2026, while operating profit also rose 4% from £376.8m to £392.7m. Its operating margin remained at 63%.
Autotrader’s core marketplace business generated operating profits of £408m on revenues of £585.3m, maintaining a 70% operating margin despite what the business described as “more difficult trading conditions” and some retailer concerns around the rollout of its Deal Builder product.
According to Autotrader’s results, that pushback on DealBuilder, which generated a lot of noise in November last year, resulted in the loss of approximately 70 dealers, with the company still working with around 14,000 retailers across the UK.
The company said its market position strengthened further during the year, with 11 times more time spent on Autotrader than its nearest competitor and six times more than all its main competitors combined. More than 80% of buyers now visit the platform directly.
Cazoo is now building up its own market position under one brand name in an attempt to challenge Autotrader’s market dominance.
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Average revenue per retailer up 5%
Average revenue per retailer increased 5% to £2,995 per month, which the company said was helped by pricing changes and new AI-powered retailer tools including Co-Driver, which automates vehicle descriptions, highlights and image optimisation.
Nathan Coe, chief executive of Autotrader Group, said the business had continued to grow revenue and profits despite challenging market conditions, while further strengthening its competitive position against rival automotive marketplaces.
He said: “Our competitive position has strengthened, with six times more time spent on Autotrader than all our main competitors combined.”
Coe said AI would play an increasingly important role in helping retailers improve efficiency and customer acquisition, with Autotrader investing in automotive-specific AI models and integrations designed around retailer operations rather than headline-driven launches.
He said: “Our approach to AI is pragmatic and focused on solving real operational challenges for retailers rather than launching products quickly to keep up with headlines.
“By combining our proprietary data with automotive-specific AI models and a flexible, plug-and-play infrastructure, we’re helping retailers make faster, more informed decisions and drive greater efficiency across their operations.”
On Deal Builder, Coe said Autotrader had spent recent months working closely with retailers to refine both the product and its rollout following dealer feedback.
He said the business had been supported by input from customers and members of its newly formed Customer Advisory Groups as it adapted the rollout approach.
Coe said: “We develop and test all our products with retailers and for those using Deal Builder the feedback was consistently positive.
“There’s always more we can do, but we’re confident retailers will value the higher quality, more qualified leads that Deal Builder delivers.”
Autotrader said AI tools were already helping retailers reduce time-to-list vehicles, improve pricing accuracy and identify high-intent buyers through its Buying Signals product.
Future proofing the car buying journey
Coe said: “As we continue to invest, our focus is on futureproofing the car buying journey, ensuring retailers can connect with buyers wherever they are and maximising the value of every vehicle listed on our platform.”
The business said Deal Builder enquiries convert into sales at double the rate of standard leads, with more than 6,700 retailers now using the product and 137,000 full reservations completed during the year.
Autotrader also announced plans to return around £600m to shareholders during the 2027 financial year through dividends and share buybacks, after already returning £463.2m during 2026.
Employee engagement fell sharply from 91% to 72% during the year, which the business attributed to restructures, external pressures and changes to office working arrangements.