Key Highlights

  • FY26 Revenue rose 79% to US$1,395.9 million, largely because of e2open, and CargoWise revenue was US$756.9 million, up 11%.
  • More than 95% of CargoWise customers had moved to the new commercial model, with about 5% of large customers still to migrate.
  • WiseTech held US$343.5 million of cash and had drawn US$2.2 billion of a US$3.0 billion Debt facility.
  • Net Leverage was 2.7 times, below the roughly 3.0 times previously indicated.

Why does a change in how WiseTech Global (ASX:WTC) charges for CargoWise matter so much to its outlook? Because the company's FY27 guidance explicitly depends on how quickly customers adopt the new commercial model, and the range it set is wide enough to show the uncertainty. WiseTech reported its FY26 results on 26 August 2026 for the year ended 30 June 2026, with all figures in US dollars.

A Business built around freight software

WiseTech develops CargoWise, a cloud platform used by freight forwarders and logistics providers to run customs, shipping and Warehouse processes. It is used by 23 of the world's top 25 freight forwarders. Revenue has historically come from software fees linked to transaction volumes and users.

In FY26 the group also absorbed e2open, a Supply chain software business acquired during the year. e2open contributed US$541.2 million of revenue over 11 months and now sits alongside CargoWise as a second revenue engine, with a lower margin.

What the FY26 result showed

Reported revenue rose 79% to US$1,395.9 million from US$778.7 million, largely because of e2open. CargoWise revenue was US$756.9 million, up 11%, including US$14.2 million from acquisitions and a US$9.3 million currency tailwind. Growth was partly offset by refinements to the new commercial model in the second half.

Underlying EBITDA rose 56% to US$644.5 million, a 46% margin, which the company said was seven percentage points lower than a year earlier. Reported EBITDA was US$558.4 million. Underlying net profit after tax rose 29% to US$313.5 million, while statutory net profit fell 11% to US$178.7 million.

The gap between those two profit measures reflects acquisition-related costs. Net financing costs were US$133.6 million, up from US$3.5 million, and Depreciation and Amortisation was US$205.1 million. WiseTech also recorded restructuring costs of US$67.1 million.

Underlying Earnings Per Share were 94.0 US cents. Investors comparing the two profit measures should note that underlying figures are the company's own adjusted measures, so statutory results remain the more complete record of what the Acquisition has cost so far. The Margin decline is largely a mix effect: e2open earns lower margins than CargoWise, so a larger share of group revenue from e2open pulls the blended figure down even when both businesses improve, a reading consistent with the company's own comment on dilution.

Pricing model and FY27 guidance

The new model replaces some of the older pricing arrangements for CargoWise with value packs. WiseTech said more than 95% of CargoWise customers had moved to the model, though about 5% of large customers with commitments still need to migrate.

For FY27, WiseTech guided to revenue of US$1.48 billion to US$1.54 billion (6% to 10% growth) and underlying EBITDA of US$725 million to US$780 million (12% to 21% growth), implying an underlying margin of 49% to 51%. The company said the lower end assumes growth in line with FY26 and modest adoption of new initiatives, while the upper end assumes faster adoption. That is guidance, not a result, and the width of the range is itself informative.

e2open's underlying EBITDA for the 11 months was US$197.4 million, a 36% margin. Management also cited annualised cost savings of about US$115 million, as part of the integration and restructuring work. Operating Cash Flow was US$564.0 million, up 29%.

Balance sheet and dividend

At 30 June 2026 WiseTech held US$343.5 million of cash and had drawn US$2.2 billion from a US$3.0 billion debt facility. Net leverage was 2.7 times, below the roughly 3.0 times previously indicated. The company is targeting about 2.2 times by the end of FY27 and under 2.0 times in FY28.

Free cash flow was US$410.7 million, up 43%, with underlying free cash flow of US$489.6 million. A final fully franked Dividend of 8.8 US cents per share, about 17% of underlying profit, was payable on 9 October 2026 to holders on the register at 14 September.

Customer concentration and governance

On 10 July 2026 WiseTech responded to media speculation about its relationship with logistics group DSV. It said CargoWise transaction volumes with DSV had risen about 20% over six months after DSV integrated DB Schenker, that the contract runs until September 2028, and that talks about the period beyond were continuing. The company also said customer attrition had been under 1% for 14 years.

Governance has been a separate issue. Readers should consult company announcements for the facts of any legal or board matters, which this article does not attempt to assess.

Risks and things to monitor

Several points stand out. First, adoption of the new commercial model is the swing Factor in guidance, and second-half CargoWise growth was affected by refinements to it. Second, integration of e2open is ongoing, and its lower margin dilutes the group figure, although e2open's underlying EBITDA margin of 36% was reported as eight percentage points above its pro forma FY25 level.

Third, leverage and interest costs matter for statutory profit. Fourth, the DSV relationship and the post-2028 outcome are worth following. Finally, macroeconomic conditions, including industrial production and trade flows, affect transaction volumes. The company cites global economic conditions and geopolitical developments as risks to its guidance.