Locate Technologies Posts NZD 7.09 Million Revenue and NZD 3.53 Million Loss in FY2026

Revenue Growth Masks Widening Losses

Locate Technologies Limited (NZX:LOC) reported a net loss of NZD 3.53 million for the year ended 30 June 2026, almost doubling the prior year’s NZD 1.99 million loss. This came despite group revenue climbing 7.8% to NZD 7.09 million, highlighting ongoing challenges in controlling costs amid business expansion and corporate restructuring.

The company’s AI-powered delivery platform Locate2u led growth with revenue rising 33.7% to nearly NZD 4 million, driven by subscription gains across its customer base. However, this segment still recorded a loss of NZD 133,000, albeit a significant improvement from the prior year’s NZD 1.17 million loss. Meanwhile, the Zoom2u marketplace segment, which includes on-demand courier services and related businesses, saw revenue decline to NZD 3.09 million and segment profit slip to NZD 1.27 million from NZD 1.56 million previously.

Refinancing Deadline Casts Shadow Over Financial Position

Locate Technologies’ financial position is under pressure due to a senior secured debt facility with Pure Asset Management, carrying a principal of A$4 million at a fixed 9.95% interest rate. The facility matures on 7 November 2026 and is classified as a current liability, contributing to a net current asset deficiency of NZD 3.45 million at year-end.

Pure has expressed a non-binding intention to convert A$1 million of the principal into a convertible note, with the remaining A$3 million expected to be refinanced. However, no binding agreements have been reached, and the company is actively negotiating with financial institutions and credit funds. The directors acknowledge a material uncertainty regarding the refinancing, which is critical to the company’s ongoing viability.

Cash Flow and Treasury Assets Provide Some Cushion

Operating cash flows improved markedly, generating a net inflow of NZD 335,449 compared to a net outflow the prior year. At balance date, cash and cash equivalents stood at NZD 1.17 million, alongside Bitcoin treasury assets valued at NZD 1.27 million, held with Zodia Custody. The company’s covenants require minimum cash and Bitcoin balances, both of which were met throughout the year.

The directors’ going concern assessment, supported by a cash flow forecast to June 2027, assumes successful refinancing or restructuring of the Pure facility. They also highlight ongoing cost control measures and the potential to raise capital through an established At the Market equity facility, though these remain subject to market conditions and approvals.

Enterprise Customer Growth Underpins Strategy

Central to Locate Technologies’ growth plan is scaling Locate2u’s recurring subscription revenues by onboarding enterprise customers. The company has secured a notable three-year services agreement with FedEx Express Australia, providing last-mile logistics technology including driver onboarding and delivery management. Deployment is phased and subject to ongoing customer review, with revenue from such contracts variable and currently unquantified.

The company’s focus for the year ahead is to continue subscription growth, expand enterprise deployments, optimise the Zoom2u business, and manage capital with discipline amid refinancing pressures.