Locate Technologies Reports 54% Locate2u Revenue Growth and Positive Normalised EBITDA

Locate2u Revenue Drives Group Growth and Profitability

Locate Technologies (NZX:LOC) delivered a robust Q4 FY26 performance, with its AI-powered logistics software platform Locate2u posting record revenue of NZ$1.20 million, a 54% increase year-on-year. This now accounts for 62% of Group revenue, up from 60% in the previous quarter, underscoring Locate2u’s growing dominance over the legacy Zoom2u courier business. The Group’s overall revenue rose 29% to NZ$1.95 million.

Normalised EBITDA, which excludes non-cash and one-off items, swung into positive territory at NZ$259k, while operating cash flow nearly tripled to NZ$493k. Despite a reported EBITDA loss of NZ$515k, this was heavily influenced by a non-cash NZ$712k Bitcoin revaluation loss recognised at the full-year reporting date, leaving the underlying business performance healthier than headline figures suggest.

AI Integration Accelerates Development and Efficiency Gains

AI is now embedded across Locate Technologies’ engineering, sales, product, and operations functions, dramatically speeding up software development and customer onboarding. The company rebuilt major parts of the Locate2u platform on newer technology, enabling multiple daily product releases without downtime, a significant leap from prior quarterly or weekly update cycles.

This AI-driven efficiency also allowed the business to streamline its workforce, with five roles made redundant as automation absorbed tasks previously requiring manual input. The company emphasises that AI is not just a cost-cutting tool but a means to deliver better customer outcomes and faster innovation, positioning Locate Technologies ahead of larger, legacy software competitors.

Enterprise Customer Wins Signal Growing Market Validation

Locate2u’s strategic focus on larger enterprise customers bore fruit this quarter with FedEx signing on as a customer, alongside a global appliance brand. These wins highlight the platform’s scalability and appeal to major logistics and retail operators seeking AI-powered route optimisation and delivery management solutions. The company’s ability to implement these contracts in weeks rather than months or quarters reflects the competitive advantage AI brings to its sales and delivery teams.

Capital Management Moves Enhance Financial Flexibility

Locate Technologies commenced an on-market share buyback programme, acquiring over 350,000 shares at prices between NZ$0.0417 and NZ$0.0480 per share. The buyback aims to reduce share count and enhance shareholder value amid the board’s view that the current share price undervalues the business.

Additionally, the company converted its Locate2u revenue-share royalty held by PURE Asset Management into equity by issuing 10 million shares at an implied price of approximately 6.8 cents each, a significant premium to recent trading levels. This move removes a 2.5% revenue royalty obligation, simplifies funding arrangements, and improves cash flow, while making PURE a substantial shareholder aligned with existing investors.

Bitcoin Treasury Maintained Amid Volatility

Locate Technologies continues to hold 12.3 Bitcoin, valued at roughly NZ$1.27 million at quarter-end. The Bitcoin position acts as a long-term store of value and is revalued only at formal reporting dates, explaining the non-cash revaluation loss this quarter. The company intends to accumulate Bitcoin opportunistically through its ATM facility and operating cash flow, viewing it as a better preservation asset than cash over extended periods.

Looking Ahead to Scaling and Operating Leverage

Strategically, Locate Technologies aims to scale Locate2u’s enterprise footprint across Australia, the UK, and other international markets, leveraging AI as a key differentiator. The company plans to maintain a lean operating model to convert AI-driven efficiencies into margin expansion. Bitcoin treasury accumulation remains a parallel priority, managed carefully to balance dilution and capital needs.

The near-term focus includes progressing the share buyback programme and releasing audited FY26 full-year results. The company’s investor webinar scheduled for 23 July 2026 will provide further insights into these developments.