Trade Window Holdings Limited Analysis

Overview

TradeWindow is a software company serving organisations working on the front line of global trade. TradeWindow provides digital solutions for exporters, importers, freight forwarders, and customs brokers to drive productivity, increase connectivity, and enhance visibility.

Performance

The following information was extracted from Trade Window Holdings Limited's Half year results, released 28 November 2025

Trade Window Holdings Limited (NZX: TWL) (“TradeWindow” or the “Company”), a global trade software company, today reports strong revenue growth as its digital trade solutions continue to resonate with Australasian freight forwarders and shippers.

Trading revenue for the half year to 30 September 2025 (1H FY26) increased 25% to $4.6 million. The result, which was underpinned by strong recurring revenue growth and higher monthly average revenue from its customers, is in line with the Company’s FY26 trading revenue guidance.

TradeWindow has achieved this growth while continuing to invest in innovation, by advancing the development of its next-generation Freight AI operating system. The Company had provided guidance for annual EBITDA breakeven in FY26, however has opted to accelerate the development of Freight AI to meet growing customer demand and changes in the competitive landscape. This prioritisation on growth has TradeWindow targeting annual EBITDA breakeven for FY27.

1H FY26 HIGHLIGHTS (UNAUDITED)

• Trading Revenue - rises 25% to $4.6 million from $3.7 million.

• Annualised Recurring Revenue (ARR) - increases 21% to $8.8 million from $7.2 million.

• Average Revenue Per Customer (ARPC) - up 20% on FY25 for both key segments: shippers to $2,484 per month and freight forwarders to $1,097 per month.

• Gross margin - 58%, temporarily lower than FY25 as TradeWindow progresses the migration of TW Freight customers to a TradeWindow-managed cloud environment.

• EBITDA loss - $0.65 million narrows from loss of $1.3 million.

• Net loss after tax - $1.3 million narrows from a loss of $2.4 million.

• Cash and cash equivalents at 30 September - $1.1 million but set to be increased with the settlement of the $5.8 million conditional placement on 15 December 2025.

FINANCIAL RESULTS

Trading revenue for the half year to 30 September 2025 increased 25% over the prior corresponding period to $4.6 million. Growth was driven by both new customer acquisition and deeper engagement with existing customers, with higher ARPC reflecting increased adoption of modules such as Origin, Cube and our Freight e-commerce solution.

ARR rose 21% to $8.8 million, continuing to run ahead of trading revenue as the Company onboards new customers and expands usage within its base. As at 30 September 2025, TradeWindow served 534 customers, with ARPC up 20% on FY25 for both shippers and freight forwarders to $2,484 per month and $1,097 per month respectively.

Customer retention improved to 92%, up five percentage points on FY25, as TradeWindow sharpened its focus on customers with multi-module usage and recurring revenue streams. The small reduction in total customer numbers reflects the Company’s strategy to refine its customer mix towards higher-value accounts.

Gross margin for the half year was 58%, compared with 61% for FY25. The temporary reduction reflects additional costs associated with the migration of TW Freight customers to a TradeWindow-managed cloud environment. This project enhances stability, security and customer experience and is expected to support margin expansion once complete.

EBITDA narrowed to $0.65 million from a loss of $1.3 million, down 49% year-on-year, while the net loss after tax narrowed to $1.3 million from a loss of $2.4 million, down 30% year-on-year.

(Additional information on EBITDA, net loss after tax, cash flows and the balance sheet is provided in the interim financial statements and investor presentation released to the NZX today).