WiseTech Global Limited

For 1H FY26, WiseTech reported revenue of $672 million, up 76% year over year on a reported basis and 7% organically. CargoWise revenue increased 12% to $372.4 million, with 9% organic growth and 99% recurring revenue. EBITDA was $252.1 million, up 31%, with an EBITDA margin of 38%; organic EBITDA margin was 51%. Gross profit was up 61%, but gross margin fell to 79%, down 7 percentage points, mainly because of e2open; excluding e2open, gross margin was 87%. Underlying NPAT was $114.5 million, up 2%, underlying EPS was $0.343, free cash flow was $153.6 million, up 24%, and the interim dividend was $0.068 per share. Looking ahead, management reaffirmed FY26 guidance excluding the restructuring announced today, and said CargoWise revenue growth for FY26 remains expected to be 14% to 21%. It also said it now expects CargoWise revenue in 1H versus 2H for FY26 to be in line with FY25, while second-half performance should accelerate subject to timing and take-up of initiatives.

Zubin Appoo framed the quarter as disciplined execution and a transition to an AI-led business model. He emphasized that WiseTech is moving away from seat-based pricing toward transaction/value-based monetization, arguing that AI will strengthen, not weaken, the company’s moat because its software sits inside regulated logistics workflows. His tone was confident and forceful, especially on AI and the belief that customers will increasingly need CargoWise Next and the Value Packs to capture labor savings and automation benefits.

Caroline Pham focused on the mechanics of the reported numbers and the effects of e2open. She highlighted that e2open contributed $249.4 million of revenue, gross margin was 79% because of e2open’s lower-margin services mix, and EBITDA margin was 38% after restructuring and M&A costs; excluding those items and FX, organic EBITDA margin was 51%, consistent with 1H FY25. She also noted free cash flow of $153.6 million, operating cash flow of $231.7 million, cash of $358.4 million at 31 December 2025, net leverage of 3.2x, and a plan to delever to about 3x by end-FY26 and about 2.5x by end-FY27. On capital allocation and investment, she pointed to $78.1 million reinvested primarily in product development and data center capacity, and said the company continues to manage debt exposure with interest rate swaps.

Analysts pressed on whether CargoWise guidance was conservative, why revenue growth only implies modest second-half sequential growth, and whether higher margins above 50% are still achievable after the new restructuring. Management said there was no conservatism, noted 1H was slightly ahead of expectations, reaffirmed FY26 CargoWise growth of 14% to 21%, and said the path back above 50% EBITDA margins remains intact, with restructuring as an additional lever rather than a requirement. Questions also focused on large customers and potential churn, with management saying conversations with the remaining 5% of customers are positive and proactive, that some larger contracts may convert before expiry, and that the AI workflow engine and Value Packs should drive customer productivity and retention. On AI cost inflation, Caroline said token-related technology spend is expected but not material in FY26 and is already reflected in guidance.