WiseTech Global Limited

WiseTech reported first-half FY26 total revenue of $672 million, up 76% reported and 7% organically. CargoWise revenue was $372.4 million, up 12% reported and 9% organically, with recurring revenue at 99%. EBITDA was $252.1 million, up 31%, and reported EBITDA margin was 38%; organic EBITDA margin was 51%, in line with 1H25. Gross profit was up 61% year over year and gross margin was 79%, down 7 percentage points, largely because of e2open; excluding e2open, gross margin was 87%. Underlying NPAT was $114.5 million, up 2%, underlying EPS was $0.343, up 2%, and free cash flow was $153.6 million, up 24%. Management reiterated FY26 guidance, including CargoWise revenue growth of 14% to 21%, and said the restructuring announced today is not expected to materially affect FY26 outcomes because execution costs are likely to offset savings this year. They also said second-half growth should accelerate subject to timing and take-up of revenue initiatives, and that the 1H/2H CargoWise revenue mix for FY26 is expected to be in line with FY25.

Zubin Appoo’s message was that WiseTech is entering a new phase built around AI, transaction-based monetization, and a leaner operating model. He emphasized that the new commercial model has already been rolled out to about 95% of CargoWise customers and that AI is strengthening WiseTech’s moat by embedding automation deeper into workflows. He also framed the planned headcount reductions as necessary to create a structurally lower cost base and improve scalability, while stressing that the company is executing with discipline and confidence.

Caroline Pham focused on the mechanics of the quarter and the mix effects from e2open. She said e2open contributed $249.4 million to revenue, gross margin was 79% versus 87% excluding e2open, and reported EBITDA margin was 38% versus organic EBITDA margin of 51%; she also noted $30.6 million of restructuring and break costs within e2open EBITDA. She highlighted a strong cash position of $358.4 million, operating cash flow of $231.7 million, free cash flow of $153.6 million, and net leverage of 3.2x, with a plan to delever to about 3x by FY26-end and about 2.5x by FY27-end. She said the FY26 guidance already includes some technology investment for AI token costs and that these costs are not expected to be material this year.

Analysts focused on whether CargoWise guidance was conservative, whether large customers could churn or delay moving to CargoWise Value Packs, and whether the margin reset implied by AI-driven headcount cuts changes the path back to 50% EBITDA margins. Management said the guidance was not conservative, but that 1H was slightly ahead of expectations and the 1H/2H split is meant to be more balanced; they reaffirmed FY26 CargoWise revenue growth of 14% to 21%. On margins, Caroline said the goal to get back above 50% EBITDA margin is unchanged and the restructuring is an additional lever, not a prerequisite. On customer migration, Zubin said conversations with the large commitment customers are positive, proactive, and may convert before contract expiry, but that FY26 guidance does not depend on those customers converting.