WeBuyCars goes from hero to zero

WeBuyCars’ latest financial results painted a picture of a company struggling to maintain its momentum and adapt to a changing environment.

On Monday, 18 May 2026, WeBuyCars released its consolidated interim results for the six months ended 31 March 2026.

Group revenue increased 7.8% to R14.2 billion, and buying and selling volumes were up 3.2% and 2.3%, respectively.

The company increased parking bays by 31% to 15,614, employees by 15% to 3,772, Supermarkets from 17 to 20, and buying pods from 93 to 109.

This is where the growth story ends. Nearly all the company’s bottom-line figures were down compared to a year earlier.

Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) declined 1.3% to R789.5 million, and operating profit was down 4% to R701 million.

Headline earnings were 1.6% lower at R500 million, and headline earnings per share declined 1.7% to 120 cents per share.

A particularly concerning figure for investors was net cash generated from operating activities, which declined 77% to R65 million.

Equally concerning was the company’s net interest-bearing liabilities, which increased 56% to R2.1 billion.

This represents a rapid and significant escalation in debt compared to R1.3 billion in 2025 and R1.2 billion in 2024.

Over the last year, WeBuyCars’ Return on Invested Capital (ROIC) declined by 21%, while Return on Equity (ROE) declined by 30%.

The company’s ROE has declined significantly over the last three years. The ROE of 30.1% in 2026 was down from 47.6% in 2025 and 52.2% in 2024.

Another concern is that vehicles are sitting on the floor for longer before being sold. Inventory days increased to 33.2 in 2026 from 28.9 in 2025.

Investors did not like what they saw in WeBuyCars’ latest results, and the share price declined after the results were released. However, it has recovered since then and is up for the day.

WeBuyCars loses its shine

WeBuyCars CEO Faan van der Walt put on a brave face amidst the sea of red, calling the results “a resilient performance in a challenging and deflationary trading environment”.

“I am very pleased with the progress made in growing the supermarket footprint. We are on track to deliver on our market share growth ambitions,” he said.

However, analysts have predicted that the company would start struggling and that investors should be cautious about the share.

Over the last four months, the WeBuyCars share price declined by 35%, which means shareholders lost approximately R8 billion in value.

This decline is in stark contrast to the first year after the company was listed on the Johannesburg Stock Exchange (JSE).

After WeBuyCars started trading at R20 per share on 11 April 2024, it quickly became the darling of the JSE.

The share price increased by nearly 200% over the first 15 months, as investors believed in the strong growth story.

However, cracks began to show last year amid increased competition from affordable Chinese cars, shareholder dilution, and rising shareholder expectations.

Another thing which affected investors is the sale of R866 million in WeBuyCars shares by Faan and Dirk van der Walt on 2 February 2026.

The company announced the sale, saying it was part of their personal investment diversification and estate planning.

This led many investors to question the short-term upside potential, which put pressure on the stock downwards. These investors were proven right by the latest results.

Rob Pietropaolo, trading co-head at Unum Capital, said that WeBuyCars may have been a victim of being overhyped.

He explained that WeBuyCars is a good and profitable company, but that the initial spike in the share price was driven by hype.

The chart below shows the WeBuyCars share price since it was listed on the JSE, showing a company which went from hero to zero in two years.