EROAD is back in the black, posting a net profit after tax (NPAT) of $1.4 million for the year to March 31–– reversing a $0.8m loss in the year prior.
The NZX- and ASX-listed transport technology firm saw revenue rise 6.8% to $194.4m, with gains across all markets.
The company also significantly improved its free cash flow position, reaching $16m compared to just $1.3m a year earlier.
When adjusted for the temporary impact of its 4G upgrade program, free cash flow reached $23.6m.
Earnings before interest and tax (EBIT) climbed to $5.9m from $0.2m in FY24, while normalised EBIT rose to $9.9m, reflecting continued cost discipline and improved customer performance.
Annualised recurring revenue (ARR) lifted 6.1% to $175.1m, with foreign exchange tailwinds supporting market growth. Enterprise customers—defined as those generating over $100k in ARR—now represent 54% of total ARR. The number of such customers rose by 7% during the year.
Asset retention remained strong at 92.5%, with New Zealand retention at 93.6%, Australia at 89%, and North America at 92%.
In New Zealand, customer expansions and upsells added $7.2m in ARR. One large customer extended its contract into Australia, contributing an additional $1.1m in ARR. North American expansion added $4.9m in ARR.
“FY25 has been a year of strong performance and strategic progress for EROAD,” Co-CEOs Mark Heine and David Kenneson say.
“We have delivered against our financial guidance, expanded our market opportunity, and strengthened our customer relationships.
“EROAD, under its current reset strategy, has gained real traction against its core growth metrics, with the potential to ignite further value for shareholders as momentum continues,” they say.
Looking ahead, the company has issued FY26 guidance of minimum revenue of $205m and ARR of at least $188m—representing 7.5% growth. Free cash flow yield is forecast between 8% and 10%, normalised for ongoing 4G upgrade costs. Medium-term ARR compound annual growth is expected to reach 11%–13%.
Heine and Kenneson add: “Despite facing sustained macroeconomic headwinds in the freight and transport sectors across all our operating regions, we have delivered strong financial results which is expected to continue in FY26 – our strategy is designed to deliver sustainable, profitable growth and that is exactly what we are doing here.”
Meanwhile, chief financial officer Rebecca Lineham will conclude her interim role in mid-June. Tracey Herman, previously CFO of Coretex and currently in a senior finance role at EROAD, will step in as interim CFO until a permanent appointment is announced.
An Investor Day is planned in the coming months to outline EROAD’s product roadmap and long-term strategic goals.
EROAD’s share price has climbed more than 20% over the past three trading days to $1.08 per share.
