WiseTech earnings: Record revenue growth meets a new set of risks for investors

WiseTech Global (ASX: WTC) has delivered a substantial increase in FY26 revenue, with the acquisition of e2open and stronger margins helping drive a sharp rise in earnings.

However, the logistics software company enters the new financial year under significantly greater scrutiny, with an Australian Competition and Consumer Commission investigation and an earlier Australian Securities and Investments Commission investigation adding another layer of uncertainty for investors.

WiseTech reported total revenue of US$1.396 billion for the year ended June 30, an increase of 79%. Reported EBITDA increased 46% to US$558.4 million, while underlying EBITDA rose 56% to US$644.5 million. The underlying EBITDA margin reached 46%.

Underlying net profit after tax increased 29% to US$313.5 million. Statutory NPAT moved in the opposite direction, falling 11% to US$178.7 million.

Free cash flow increased 43% to US$410.7 million, while underlying free cash flow climbed 67% to US$489.6 million.

The e2open acquisition was central to the headline growth, contributing US$541.2 million of revenue during the period.

Excluding e2open, WiseTech’s revenue still increased 10%, suggesting the underlying CargoWise business continued to expand despite the considerable change in the group’s structure.

The company has also been attempting to reshape its commercial model. More than 95% of CargoWise customers have moved onto Value Packs, which bundle software functionality into transaction based pricing rather than relying on separate user licences.

At the same time, the company has been undertaking a major efficiency program. WiseTech previously announced plans to reduce its workforce by about 2,000 positions over two years as it looks to capture productivity benefits from artificial intelligence. The company said it has already generated around US$115 million in annualised savings.

That cost cutting will be an important part of the investment case going forward because operating expenses increased 92% during FY26 to US$727.6 million.

Just one week before these results, the ACCC executed a search warrant at WiseTech’s offices as part of an investigation into alleged breaches of competition and consumer law.

That development followed an earlier ASIC search of WiseTech’s Sydney offices in October. That investigation relates to share transactions involving former chief executive and major shareholder Richard White and other individuals.

White remains a major shareholder, holding more than one third of the company, and ASIC is investigating trades made between late December 2024 and February 26, 2025.

The share price has suffered heavily over the past year, with the stock down more than 60%. WiseTech is nevertheless returning more capital to shareholders, with the company declaring a fully franked final dividend of 8.8 US cents per share, an increase of 14%.