Transport technology company EROAD has reported a net loss after tax of $161.1 million for the year ending March 31 as it continues a major transformation programme aimed at restoring performance.
The result included a non-cash impairment to North American assets of $134.7m previously announced in October 2025, contributing to EBIT of negative $155.9m for the year.
Revenue rose slightly to $195.2m, up 0.4% year-on-year, supported by growth in Australia and steady performance in New Zealand, while North America declined following previously disclosed customer non-renewals.
Annualised recurring revenue slipped 0.5% to $174.3m.
EROAD executive chair John Scott says the result reflects legacy operational and product challenges the company has been working through.
“Although our performance remained strong in our core markets of New Zealand and Australia with year-on-year ARR growing 5% and 73%, respectively, the group results reflect the legacy issues and challenges we have been managing,” Scott says.
“We have taken decisive action to reset the business and position it for sustainable growth over the medium to long-term.”
The company says its transformation programme is focused on operational excellence, product development, customer service, artificial intelligence integration and expanding electronic road user charges capability.
Scott says recruitment for a new chief executive is well advanced.
The company completed its three-year 4G hardware upgrade programme in New Zealand during FY26, replacing 73,000 units. EROAD says the completion of the programme is expected to free up cash flow and operational capacity.
Australia continued to show strong momentum for the business, with revenue in the region increasing 40% and annualised recurring revenue climbing 73%.
EROAD says its major deal with Cleanaway Waste Management across more than 3000 heavy vehicles in Australia remains on track for completion in November 2026 and is expected to add A$5m in annualised recurring revenue once fully deployed.
North America remains a challenge for the company following customer losses and weaker freight market conditions in the United States.
Despite this, the region still generated $74.4m in revenue during FY26 with an 80% asset retention rate. EROAD says the business is now being repositioned under a more focused operating model.
Liquidity remained at $49m at year-end, with the company holding a $65m credit facility against net debt of $16m.
“We are continuing to actively address legacy issues and have a clear plan to regain momentum and strengthen the trust of our customers and shareholders alike,” Scott says.
“In the first half of FY27, we are focused on addressing the core fundamentals of our business, improving the platform experience for customers, lifting service levels and laying the groundwork for AI-enabled operations.
“From that base, we intend to scale our core New Zealand business, continue building on enterprise momentum in Australia, and reposition North America.
“While we expect the next six months to be challenging and we have more work to do, I’m also excited about the opportunities ahead of us,” he says.
