EROAD Limited (ASX:ERD) Announces FY25 Financial Results
Financial Performance
EROAD Limited reported revenue of NZ$194.4 million for FY25, a 6.8% increase from NZ$182.0 million in FY24. Annualised Recurring Revenue rose by NZ$10.1 million (6.1%) to NZ$175.1 million. EBIT increased to NZ$5.9 million, up from NZ$0.2 million in FY24, while normalised EBIT reached NZ$9.9 million. Net Profit After Tax improved to NZ$1.4 million from a loss of NZ$0.8 million in the previous year. Free Cash Flow to the firm surged to NZ$16.0 million, compared to NZ$1.3 million in FY24, and was NZ$23.6 million when normalised for the 4G upgrade program.
Operational Highlights
Asset retention remained high at 92.5% in FY25. Key enterprise customer wins and expansions contributed NZ$1.1 million in ARR in Australia, NZ$7.2 million in NZ, and NZ$4.9 million in North America. Enterprise customers now represent 54% of ARR, with a 7% increase in the number of customers earning over NZ$100k ARR.
Executive Comments
Chair Susan Paterson stated, “EROAD once again increased revenue, delivered to the top end of financial guidance on all measures, and significantly exceeded free cash flow expectations with $16m free cash flow to the firm – a standout achievement compared to the negative $29.9m FCF reported just two years ago. EROAD’s advantage lies in the tangible value provided to customers. Through consistent delivery of measurable savings for fleet operations, EROAD is positioned as a long-term investment even in constrained markets.”
Co-CEOs Mark Heine and David Kenneson commented, “FY25 has been a year of strong performance and strategic progress for EROAD. We have delivered against our financial guidance, expanded our market opportunity, and strengthened our customer relationships. As we look ahead to FY26, EROAD, under its current reset strategy has gained real traction against its core growth metrics, has the potential to ignite further value for shareholders as momentum in what we are building here continues. We have the ambition and determination, grounded in the fact the EROAD technology stack really does deliver for our growing customer base. We will continue to seize market opportunities, leverage strategic partnerships and cutting-edge tech integrations to provide customers with innovative solutions for navigating the challenges of the transportation industry.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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