Locate Technologies (NZX: LOC) reported its first positive Group EBITDA quarter with NZ$167k profit, driven by a 42% revenue jump in its AI-powered Locate2u platform. The company also launched a NZ$500,000 on-market share buyback, signalling confidence in undervalued shares.
- First positive Group EBITDA quarter with NZ$167k profit
- Locate2u revenue up 42%, now 60% of Group revenue
- AI integration accelerates engineering releases from weekly to daily
- Zoom2u revenue declines 11% but remains profitable
- Announced NZ$500,000 on-market share buyback programme
Group EBITDA Turns Positive on Locate2u Growth
Locate Technologies has crossed a key milestone, posting its first positive reported EBITDA quarter at the Group level with NZ$167,000 in Q3 FY26. This marks a NZ$269,000 improvement year-on-year, underpinned by a 15% increase in total Group revenue to NZ$1.80 million. The standout driver was Locate2u, the company’s AI-powered logistics software platform, which grew revenues by 42% to NZ$1.08 million and now accounts for 60% of the Group’s top line.
While Zoom2u, the on-demand courier marketplace, saw an 11% revenue decline to NZ$720,000, it remains a profitable and cash-generating segment supporting Locate Technologies’ broader strategic ambitions.
AI Powers Daily Engineering Releases and Product Innovation
A notable operational shift has been the deep embedding of AI across engineering, sales, and product development. This has accelerated the company’s software release cadence from weekly to daily, a rare feat for a small team. AI is no longer an add-on but integral to the build process, enabling rapid prototyping and deployment of new features that previously languished on the backlog.
Locate2u’s product enhancements in Q3 included an AI-driven address cleaning service, a new interstate booking portal for Zoom2u, an advanced routing engine that reduces complex route calculations from hours to minutes, and a warehouse scanning app with basic management functions. These innovations build a foundation for AI-led customer functionality that the company expects will reshape last-mile logistics operations.
Bitcoin Holdings Steady as Treasury Strategy Continues
Locate Technologies maintained its Bitcoin treasury at 12.3 BTC throughout the quarter, valued at NZ$1.63 million as of 22 April 2026. The company did not acquire additional Bitcoin nor draw on its At-The-Market (ATM) equity facility during Q3. Bitcoin revaluations are recognised only at half-year and full-year audits, so quarterly EBITDA figures exclude interim valuation changes.
On-Market Share Buyback Signals Board Confidence
Following quarter-end, Locate Technologies announced an on-market share buyback programme of up to NZ$500,000, reflecting the board’s view that the current share price undervalues the company’s assets and growth prospects. Shares repurchased will be cancelled, reducing total issued capital and enhancing per-share metrics for remaining shareholders.
This move aligns with the recent on-market buyback up to NZ$500,000 announcement, underscoring a strategic capital management approach that balances growth investment with shareholder returns.
Strategic Priorities Focus on Scaling Locate2u and Maintaining Discipline
With the NZX listing transition costs behind it, Locate Technologies is focused on scaling Locate2u internationally, targeting enterprise customers across Australia, the UK, and beyond, while maintaining cost discipline to improve operating leverage. The company also plans to continue accumulating Bitcoin as a long-term treasury asset through its ATM equity facility, managing dilution carefully.
Locate2u’s AI-driven approach aims to differentiate it from legacy logistics software by embedding operational data and integrations accumulated over a decade, combined with rapid development cycles. This positions the company to deepen customer value and expand its footprint in a competitive market.
Bottom Line?
Locate Technologies’ shift to AI-powered software and disciplined capital management marks a turning point, but sustaining growth and navigating Bitcoin volatility remain key challenges.
Questions in the middle?
- Will Locate2u’s AI-driven growth sustain momentum amid competitive pressures?
- How will the share buyback impact liquidity and investor sentiment over the coming year?
- What risks does Bitcoin price volatility pose to the company’s treasury strategy?