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 market update, released 30 January 2025:

FINANCIAL PERFORMANCE

Our recurring revenue momentum remains intact with ARR of $9.3 million, calculated using subscription revenue for December 2025 plus the monthly average of Q3 transaction revenue annualised. That ARR growth is driven by a healthy mix of new sales and price increases, demonstrating both successful customer acquisition and improved monetisation of our solutions across both the shipper and freight forwarder segments.

Trading revenue of $7.0m (up 22% YTD) represents steady underlying activity, although Q3 was softer than expected driven by weaker volumes from major primary industry exporters and a later export season for many customers. Consequently, we are revising FY26 trading revenue guidance: the previous range of NZ$10 million to NZ$11 million is updated to NZ$9.6 million to NZ$9.9 million, representing a 7% shift on the midpoint of the prior range.

Over the quarter we continued to deliver strong monthly ARPC momentum, with shippers up 20% and freight forwarders up 23%, driven by both product adoption and customer mix. Shipper ARPC gains were largely the result of improved customer mix including higher value contracts. The freight forwarder uplift was led by our targeted focus on mid‑market operators. These customers, which accounted for the majority of ARPC growth, are higher‑quality, valuing transparent pricing and therefore offer greater revenue growth opportunities to the company. The balance of the uplift came from price revisions as we re-contracted customers on to our new pricing plans.

Gross margin was 59%, down 2 percentage points on FY25. The decline is marginal and largely reflects customer mix effects and the cost of deliberate migrating the remaining on‑premise TW Freight customers to a cloud‑hosted solution. That migration increases near‑term implementation effort and cost, but will deliver a more streamlined update path, stronger security and lower operating complexity over time.

R&D and commercialisation remained at 33% of total expenses. On a like‑for‑like basis this is down 3 percentage points on FY25, but the ratio was effectively static this quarter because we incurred one‑off ASX listing costs. We are also capitalising Freight.AI development costs with NZ$450k of development costs recorded on the balance sheet as at 31 December 2025. This investment enhances freight forwarder capabilities and provides a future global growth pathway through a highly scalable solution.