• Substantial improvement in Free Cash Flow to $16.0m
• Revenue climbed to $194.4m, a 6.8% increase
• Annualised Recurring Revenue increased by $10.1m (6.1%) to $175.1m

EROAD Limited (NZX/ASX: ERD), a leading transportation technology services company, released its financial results for the 12 months ended 31 March 2025 (FY25). The company reported substantial improvements in free cash flow, which rose to $16.0m from $1.3m in the prior year. This was driven by the expansion of existing customer contracts, new customer wins, price increases, and continued cost management. Revenue climbed to $194.4m, a 6.8% increase from the prior year, with growth across all markets. Annualised Recurring Revenue (ARR) increased by $10.1m (6.1%) to $175.1m, reflecting growth and favourable foreign exchange rates. EBIT climbed to $5.9m, and when normalised for one-off costs, EBIT increased to $9.9m. NPAT increased by $2.2m to $1.4m. The company maintained high asset retention rates and secured key enterprise customer wins and expansions during the period. EROAD's strategy of focusing on enterprise fleets and maintaining cost discipline has delivered sustainable, profitable growth, and the company is well-positioned to continue this momentum in the future.

• FY26 Revenue guidance of a minimum $205m
• FY26 ARR guidance of a minimum $188m, equating to 7.5% growth
• FY26 free cash flow yield of 8% - 10%, normalised for the 4G hardware upgrade program
• Medium-term ARR growth CAGR of 11% - 13%

Despite facing sustained macroeconomic headwinds in the freight and transport sectors, EROAD is confident in its ability to deliver strong financial results in FY26, driven by its strategy of sustainable, profitable growth. The company will continue to focus on enterprise fleets and maintain cost discipline to drive further value for shareholders.