Orcoda Limited reported a 26% reduction in net loss and a 23% rise in Annual Recurring Revenue, boosted by a new $8 million per annum multi-year contract with Wagner Corporation, setting the stage for SaaS expansion in FY27.
- 26% improvement in EBITDA loss to $0.38 million
- 23% increase in Annual Recurring Revenue to $6.2 million
- New $8 million per annum Wagner Corporation contract
- Positive operating cash flow of $0.28 million
- Focus on scaling Transport360 and Contractor360 platforms
Turning the Corner on Profitability Amid Revenue Dip
Orcoda Limited (ASX:ODA) has reported a modest 3% decline in total revenue to $16.57 million for FY26, yet delivered a marked 26% improvement in EBITDA loss, narrowing it to $0.38 million. The company also cut its net loss after tax by the same margin, to $1.84 million, signalling operational gains despite a challenging revenue environment.
Underlying these results is a strategic pivot towards recurring revenue, with Annual Recurring Revenue (ARR) climbing 23% to $6.2 million, driven largely by growth in the Transport Technology division and a transformative multi-year contract with Wagner Corporation in the Resource & Infrastructure division.
Wagner Contract Boosts ARR and Validates Contractor360
The newly inked workforce logistics and facilities management contract with Wagner Corporation at Wellcamp Business Park in Toowoomba is a game changer, expected to contribute approximately $8 million annually. Anchored by Orcoda's AI-powered Contractor360 platform, this three-year deal commenced on 1 July 2026 and significantly lifts the Group's ARR to an estimated $14.2 million entering FY27.
Beyond the headline figure, the Wagner contract serves as a powerful proof point for Contractor360’s capability to manage complex, multi-location workforce operations, positioning Orcoda to leverage this success into other large-scale enterprise opportunities.
Transport360 and Future Fleet Drive Software Recurring Revenue
Orcoda’s Transport Technology Division, centred on the Transport360 SaaS platform, generated segment EBITDA of $1.89 million with an improved margin of nearly 29%. Despite a 19% drop in total income for the division, largely due to the cessation of the Mt Buller contract and lower hardware sales from Future Fleet, the software and telematics business maintained strong recurring revenue momentum.
Transport360’s integrated transport management capabilities, including scheduling, dispatch, routing, and compliance, underpin the division’s growth strategy. The company sees significant runway to scale this platform beyond its current 40 customers, aiming to exceed 100 by building a more disciplined sales engine and leveraging operating leverage inherent in SaaS models.
Resource & Infrastructure Division Recovery and Diversification
The Resource & Infrastructure Division posted an 8% increase in total income to $9.8 million, with segment EBITDA slipping to a slim $65,000 due to slower-than-expected ramp-up of a major customer’s works program. Orcoda’s wholly owned subsidiary, TBG, continues to rebuild its pipeline, recently securing seven new contracts valued at approximately $3.7 million, diversifying its customer base beyond major clients.
While margin pressure remains, the division’s strategic focus is on expanding Contractor360’s AI capabilities to drive recurring revenue and reducing customer concentration risk, laying the groundwork for larger, more profitable projects ahead.
Stronger Cash Flow and Balance Sheet Position
Orcoda swung to positive operating cash flow of $275,637 in FY26, a significant turnaround from a $896,000 outflow in FY25. The company ended the year with $1.62 million in cash and reduced net debt to $609,025, reflecting disciplined cost control and improved operational leverage.
The balance sheet shows net assets of $14.6 million, down from $16.4 million the prior year, primarily due to the reduction in cash and trade receivables linked to TBG’s slower receipts and asset sales. The company maintains a conservative debt-to-equity ratio of 15%, with access to nearly $2 million in unused trade finance and credit facilities.
Leadership Driving Execution and SaaS Scale
Since his appointment in late 2025, Managing Director Patrick Bodegraven has focused on commercialising Orcoda’s two core software platforms; Transport360 and Contractor360. His vision is to industrialise sales processes, build a robust pipeline, and convert prospects into long-term customers, leveraging proven technology and reference clients like Wagner.
Non-Executive Chairman Brendan Mason brings extensive logistics and technology leadership, overseeing a refreshed five-year strategic plan that prioritises high-margin recurring software revenue growth, integrated transport management solutions, and customer diversification.
The Board’s confidence is buoyed by improved cash generation, a strengthened ARR profile, and clearer pathways to scalable profitability, setting Orcoda up for an aggressive SaaS growth phase in FY27.
Bottom Line?
Orcoda’s FY26 results mark a cautious but clear step towards profitable SaaS scale, with the Wagner contract serving as both a revenue and credibility catalyst; execution on sales and customer expansion will be pivotal in FY27.
Questions in the middle?
- Can Orcoda sustain ARR growth beyond the Wagner contract to drive profitability?
- How effectively will Orcoda convert its Transport360 and Contractor360 sales pipeline into long-term customers?
- Will TBG’s diversification efforts translate into improved margins and reduced customer concentration risk?