This article first appeared on GuruFocus .
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Total Revenue:Record growth of 79% to $1,395.9 million, within guidance.
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CargoWise Revenue:Grew 11% to $756.9 million.
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e2open Revenue:Contributed $541.2 million, in line with expectations.
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Underlying EBITDA:$644.5 million, up 56%, with a margin of 46%.
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Reported EBITDA:$558.4 million, up 46%, with a margin of 40%.
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Underlying NPAT:$313.5 million, up 29%.
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Statutory NPAT:$178.7 million, down 11%.
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Underlying EPS:Up 28% to $0.94 per share.
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Gross Profit Margin:79%, down 9 percentage points, largely from consolidating e2open.
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Operating Cash Flow:Increased 29% to $564 million.
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Free Cash Flow:Up 43% to $410.7 million.
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Net Leverage:2.7 times as at June 30, 2026, beating the target of approximately 3 times.
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Efficiency Savings:Approximately $115 million in total annualized run rate savings, including $64 million from e2open cost synergies and $34 million from AI transformation.
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Final Dividend:$0.088 per share, fully franked, a payout ratio of 17% of underlying NPAT.
Release Date: August 26, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Record revenue growth of 79% to $1,395.9 million, within guidance, with underlying EBITDA of $644.5 million (46% margin), exceeding guidance.
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Delivered approximately $115 million in annualized run-rate savings, including $64 million from e2open cost synergies, 18 months ahead of the $50 million target.
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Accelerated deleveraging to 2.7x net leverage, ahead of the ~3x target, with plans to reach ~2.2x by FY27 and below 2x in FY28.
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Strong adoption of the new CargoWise Value Packs (CVP) with over 95% of customers on the model, driving a 55% increase in new SME signings and 30% overall increase in new signings.
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AI transformation delivered $34 million in annualized EBITDA savings, with over 90% of code AI-assisted and engineering productivity up 45%.
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Expanded into five strategic markets (logistics, supply chain, trade finance, government, and VerifyWise) with the FRDM.ai acquisition and New Zealand BorderWise launch, creating new growth avenues.
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Underlying free cash flow up 67% to $489.6 million, with a strong cash conversion of 100%.
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FY27 guidance implies continued margin expansion to 49%-51% underlying EBITDA margin, with CargoWise revenue growth of 12%-20%.
Negative Points
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CargoWise organic revenue growth slowed to 8% in FY26, below the prior guidance of 14%-21%, due to refinements in the new commercial model.
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Statutory NPAT declined 11% to $178.7 million, impacted by restructuring costs and the Expedient divestment loss.
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e2open subscription revenue attrition continued during FY26, reflecting integration challenges and a shift away from legacy revenue.
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FY27 guidance implies a slower first half with CargoWise growth at ~9%, dependent on second-half adoption of new initiatives like VerifyWise and AI agents.
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Significant workforce reductions of over 1,700 roles globally, including 1,200 in product development and customer service, which may impact morale and operational continuity.
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Underlying EBITDA margin declined 7 percentage points to 46% due to e2open consolidation, with gross margin down 9 points.
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Net financing costs increased to $133.6 million due to debt from the e2open acquisition, though partially hedged with interest rate swaps.
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The company faces ongoing legal and advisory costs, including a shareholder class action defense, which are not fully detailed.
Q & A Highlights
Q: Can you provide more color on the refinements made to the CargoWise Value Packs (CVP) commercial model in the second half, and would you have hit your previous CargoWise guidance range without them? A: Zubin Appoo (CEO) confirmed that the refinements, based on customer usage and feedback, were the primary reason CargoWise growth landed at 11% rather than the guided 14%-21%. He clarified these were not rebates or incentives but changes to the mechanics of billing and operationalizing the model. He emphasized these changes are permanent and critical for the medium and long-term success of CVP, noting that such adjustments are expected during a major commercial model transition.
Q: What are the specific building blocks driving the second-half FY27 revenue skew, and how will you monetize AI-driven efficiency gains for customers? A: Zubin Appoo (CEO) outlined three key levers for the second-half skew: converting the remaining 5% of STL customers to CVP, monetizing AI-driven efficiencies, and the adoption of VerifyWise. On AI, he explained that WiseTech will take a "small slice" of the significant value delivered to customers, citing that a 10% labor saving for some large customers could be worth $180 million to $300 million annually, making even a tiny share meaningful for WiseTech.
Q: Can you reconcile the FY27 margin guidance with the strong exit rate, and does the path to over 50% underlying EBITDA margin imply a weaker first half? A: Caroline Pham (Interim CFO) confirmed the group exited FY26 with an underlying EBITDA margin of 47%, which carries into the first half of FY27. The expected 7-8 percentage point pickup in the second half is dependent on the accelerated adoption of new initiatives like VerifyWise and AI features. She noted there is still ongoing cost restructuring, with net savings of approximately $10 million expected in FY27, but the primary driver of margin expansion is revenue growth from new initiatives.
Q: Are the AI-driven agentic capabilities delayed, and do you already have customers lined up for VerifyWise revenue in the second half of FY27? A: Zubin Appoo (CEO) denied any delay, stating the focus is on building robust, compliance-focused agents that are stress-tested against real data and shadowed by operators, rather than rushing to release a specific number. On VerifyWise, he confirmed they have all the building blocks and existing customers from FRDM.ai, CargoWise, and e2open ecosystems, but acknowledged the risk inherent in innovation, which is reflected in the wide FY27 guidance range.
Q: What is the status of the 2,000 role reductions previously announced, and are there more cost-out opportunities beyond the $10 million net savings guided for FY27? A: Zubin Appoo (CEO) clarified that 1,200 roles have been removed so far, primarily in product development and customer service. He noted the original 2,000 figure included a large number of e2open professional services roles, which they are evaluating transitioning to partner networks. Caroline Pham (Interim CFO) added that the AI-led mindset is being applied across the entire business, not just the initial focus areas, implying further efficiency opportunities exist.
Q: What is the exit rate for CargoWise revenue growth, and does the FY27 guidance of 12%-20% include contributions from FRDM.ai and Container Transport Optimization (CTO)? A: Caroline Pham (Interim CFO) stated the second-half exit rate was approximately 10%, and the first half of FY27 is expected to be around 9%, which includes FRDM.ai contributions. Zubin Appoo (CEO) clarified that CTO is not a material driver for FY27, but they already have revenue and customers in this space through Matchbox Exchange and Avantida, positioning it as a medium to long-term growth lever.
Q: How will the learnings from the CVP launch be applied to the e2open commercial model transition, and what is the timeline for that? A: Zubin Appoo (CEO) stated the value-based, transaction-based pricing approach will be applied to e2open, aligning with the "WiseTech way." Caroline Pham (Interim CFO) added that the initial focus for e2open is shifting from a sales-led to a product-led model and standardization, with commercial model changes coming later. They will move customers to value-based, monthly billing where it makes sense, but prioritize retention and product alignment first.
Q: What is the status of the TradeWise.net concept, and has the product strategy for e2open changed? A: Zubin Appoo (CEO) confirmed the strategy remains unchanged. TradeWise continues to be the vision for orchestrated supply chain solutions, bringing together e2open's assets. He noted the branding will be announced at the appropriate time, but the three-horizon plan of cost synergies, integration, and growth synergies is on track.
Q: How much labor savings are your most AI-enthusiastic customers currently seeing, and is the 50% target still realistic? A: Zubin Appoo (CEO) declined to disclose current percentage savings but reaffirmed the target of approximately 50% labor cost savings over the next 18 months to two years. He emphasized the focus is on building robust, compliance-focused agents that are well-tested and shadow real operators, rather than rushing to market, which is why specific numbers are not yet available.
Q: Can you explain the mechanics of the Transitional Pricing Protection (TPP) and its impact on the CargoWise growth guidance? A: Zubin Appoo (CEO) stated that TPP is entirely at WiseTech's discretion and is not a driver of growth. He noted that transitions to new commercial models typically take two to three years for all customers to move across, and TPP will be regularly evaluated, but it is not a significant factor in the CargoWise growth outlook.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
