TradeWindow Posts 20% Revenue Growth and Narrows Losses in FY26

Robust Revenue Growth Amid Narrowing Losses

TradeWindow Holdings Limited (NZX:TWL) posted a solid FY26 performance, with trading revenue climbing 20% to $9.6 million and annual recurring revenue (ARR) surpassing the $10 million mark for the first time, reaching $10.1 million, a 17% increase on the prior year. Despite remaining loss-making, the company trimmed its EBITDA loss by 20% to $1.2 million and reduced its net loss after tax by 26% to $2.6 million.

The company attributes revenue growth to a combination of customer acquisitions from the prior year, new customer additions, and price increases, alongside operational efficiencies that boosted gross margins to 60% for the full year, peaking at 63% in Q4 as cloud migration efforts neared completion. TradeWindow closed FY26 with a healthy cash balance of $4.2 million and no bank debt, supported by a $7 million capital raise and a December 2025 ASX listing that broadened its investor base across Australasia.

Customer Quality and Market Focus

TradeWindow’s customer base remains engaged and valuable despite a slight decline in total customers to 547, reflecting a deliberate pruning of lower-value legacy accounts. Average revenue per customer (ARPC) jumped notably, shippers’ ARPC rose 22% to $30,352 annually, while freight forwarders’ ARPC surged 27% to $13,907, underscoring the company’s focus on mid-market and large enterprises with high transaction volumes.

Customer retention improved to 89%, up 2 percentage points from FY25, reinforcing the stickiness of TradeWindow’s platform. Geographically, Australia is now the largest growth engine, accounting for over half the customer base and 43% of revenues, primarily from freight forwarders. New Zealand remains the largest market by revenue, contributing 54% from 247 mostly shipper customers. The company signals a clear commercial priority for FY27: expanding its footprint in the Australian freight forwarder segment.

FreightAI Development on Track for 2027 Launch

TradeWindow is advancing its next-generation FreightAI platform, a scalable freight and logistics operating system embedding AI and workflow automation to reduce manual effort and boost processing accuracy across trade operations. Capitalised development costs rose 47% quarter-on-quarter to $661,000 as at 31 March 2026, reflecting disciplined investment in product innovation.

The company targets an initial commercial release of FreightAI in September 2027, with no revenue contribution assumed within the current going concern assessment period. The platform’s design focuses on automating document ingestion, job creation, customs preparation, exception handling, and integrated workflows, positioning TradeWindow for long-term scalability and ecosystem expansion.

Governance, ESG, and Financial Discipline

TradeWindow emphasizes strong corporate governance and environmental, social, and governance (ESG) initiatives. The company operates under a robust governance framework aligned with NZX and ASX standards, with independent directors and clear board committees overseeing audit, risk, nomination, and remuneration. ESG efforts include hybrid working to reduce commuting emissions, digital-first operations to minimize paper use, and partnerships with carbon-neutral cloud providers.

Financially, the company maintains a disciplined cost structure, holding operating expenses steady despite revenue growth. Cash burn has stabilised, and the company is approaching EBITDA breakeven, with FY27 guidance targeting 13-18% revenue growth and EBITDA nearing break-even. Stress tests on financial forecasts suggest sufficient liquidity for at least 12 months, though execution risks remain, particularly around FreightAI development timelines and market conditions.

Leadership Transition and Outlook

FY26 saw a leadership transition with founding CEO AJ Smith resigning due to illness, and Dewald van Rensburg stepping up as CEO. The board expresses confidence in van Rensburg’s leadership and the company’s strategic clarity going forward.

Looking ahead, TradeWindow plans to capitalise $1.5 million in FreightAI development costs in FY27 and continue its Land and Grow strategy, blending cost-effective customer acquisition with cross-selling existing solutions. The company’s priorities are clear: execute revenue growth plans, deepen Australian market penetration, and deliver FreightAI as a transformative platform.

TradeWindow’s FY26 results reflect a company in transition, narrowing losses while investing in innovation and expanding its market reach. The balance between disciplined financial management and ambitious product development will be critical to watch as the company approaches its first profitable year.