Key Highlights

  • Half-year trading revenue was $5.3 million, up 16% on the first half of FY26.
  • Annual recurring revenue was $9.8 million, up 16% on a year earlier but below $10.4 million at the end of the first quarter.
  • Customer numbers fell by 17 to 530, while retention held at 90%.
  • A desktop version of the FreightAI platform is targeted for the end of this calendar year, ahead of a full roll-out in September 2027.

TradeWindow (ASX:TWL), a provider of trade and freight software, issued an investor update on 27 October 2026 with unaudited results for the half year ended 30 September 2026, covering revenue, customer metrics and development of its FreightAI platform.

Revenue, Recurring Revenue and Margin

Trading revenue for the half year was $5.3 million, up 16% on the first half of FY26, with $2.6 million earned in the second quarter. Annual recurring revenue was $9.8 million, also up 16% year on year. It was lower than the $10.4 million recorded at the end of the first quarter, which the company attributed to seasonal variation, mainly in the shipper segment, and said is consistent with prior years.

Gross margin was 64%, up one percentage point on the fourth quarter of FY26, after the TW Freight cloud migrations were completed. The company said the revenue base is diversified, with no single customer accounting for more than 5.1% of recurring revenue.

Customer Metrics and FreightAI

Freight forwarder average revenue per customer rose 30% to $17,167 a year, driven mainly by re-contracting, including the cloud migrations. Shipper revenue per customer rose 13% to $33,648, although growth in transactional revenue moderated as several large customers that ramped up last year settled into a steady run rate.

Customer numbers were 530, down 17, or about 3%, on FY26. The company linked this to small freight forwarder accounts exiting instead of re-contracting at new rates, customer closure and consolidation, and the decommissioning of its Assure+ and FreightLegend products. Customer retention was 90%, up one percentage point on FY26.

Capitalised research and development spending on FreightAI reached $1.1 million at 30 September 2026, including a further $470,000 during the half. The platform is designed to automate document ingestion, job creation, customs preparation and exception handling, with a first Freight Desktop AI release targeted for the end of this calendar year.

Why This Could Matter

The update shows revenue growth coming from higher spending per existing customer while the number of customers declined. The desktop release would add incremental revenue before the planned full commercial roll-out of FreightAI in September 2027.

Wrapping Up

TradeWindow reported 16% revenue and recurring revenue growth, a higher gross margin and steady retention, together with a smaller customer base and a moderation in shipper transaction growth. FreightAI milestones are scheduled for the end of this year and September 2027.