EROAD Limited Analysis

Overview

EROAD has created an electronic solution to manage and pay Road User Charges (RUC), support regulatory compliance and provide value-added commercial services to the heavy vehicle industry. In 2009, EROAD implemented the world's first network-wide GPS/cellular-based road user charging system, which modernised the existing paper-based RUC regime in New Zealand.

The EROAD system consists of a secure electronic distance recorder (Ehubo), combined with a bank-grade payment gateway and services portal. We undertake design and manufacture of our Ehubos, as well as software development, from our headquarters in Auckland.

EROAD's successful New Zealand reference site provided it with the opportunity to enter the international market. In 2014 we commercially launched in Oregon, becoming the first approved electronic Weight-Mile Tax (WMT) service provider in North America. We also entered the Australian market with a commercial services offering. For more information please visit www.eroad.com.

Performance

The following information was extracted from EROAD Limited Half year results, released 21 November 2025

Financial Highlights

• Continued improvement in Free Cash Flow position (to the firm) rose to $6.2m in H1 FY26 compared to $0.1m in H1 FY25. This improvement is the result of ongoing enterprise customer rollouts and price increases. When normalised for the temporary impact of the 4G upgrade program, free cash flow (to the firm) was $16.7m.
• Revenue climbed to $99.1m for H1 FY26 from reported revenue of $95.9m in H1 FY25. This represents a 3.3% increase against the prior comparable period. Growth in revenue was driven by a 6.7% increase in ANZ offset by negative 1.5% growth in North America. Subscription revenue, which excludes non-recurring hardware and service revenue, grew 5.4% against the prior comparable period.
• Annualised Recurring Revenue (restated)2 increased by $11.4m (6.9%) to $178.1m in H1 FY26 from $166.7m in H1 FY25, reflecting growth in ANZ offset by a decline in North America and favourable foreign exchange rates.
• EBIT declined to negative $133.9m in H1 FY26 compared to $2.4m in H1 FY25. Normalised3 EBIT, adjusted for a non-cash impairment to the North American assets, declined to $2.5m in H1 FY26 from $4.7m in H1 FY25 due to lower capitalisation of R&D and accelerated amortisation due to a large customer termination in North America.
• NPAT decreased to negative $144.2m in H1 FY26 from negative $1.5m in H1 FY25. The loss was primarily driven by an non-cash impairment to the North American assets of $134.7m.
• Liquidity remains strong at $62.3m with a $70m of credit facility limit against $7.7m of net debt to support growth and fund large enterprise deployments.