WiseTech delivers 76% revenue growth as AI transformation reshapes the business
WiseTech Global (ASX: WTC) has reported total revenue of $672.0 million for the six months ended 31 December 2025 (1H26), up 76% on the prior corresponding period. The result reflects five months of contribution from the e2open acquisition, completed on 4 August 2025, combined with continued organic CargoWise growth of 7%. Management has reaffirmed full-year FY26 guidance, signalling confidence in the business trajectory despite announcing a major workforce restructuring as part of its WiseTech Global AI transformation programme.
Organic CargoWise revenue grew 12% to $372.4 million (9% organically), driven by existing customer growth and Large Global Freight Forwarder (LGFF) rollouts. Reported EBITDA increased 31% to $252.1 million, though the reported EBITDA margin declined 13 percentage points to 38% due to e2open consolidation and restructuring costs. Excluding these factors, organic EBITDA grew 7% to $208.4 million with the organic margin holding flat at 51%, demonstrating the underlying health of the core business.
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What AI transformation means for WiseTech’s future
WiseTech is embedding artificial intelligence across two fronts: customer-facing software automation and internal operational efficiency. The logistics industry is particularly suited to AI deployment due to its complex, regulated workflows and high-volume repetitive processes. By automating these tasks, WiseTech aims to deliver significantly more value to customers while simultaneously reducing its own cost base.
This strategy underpins a fundamental shift in the company’s commercial model. WiseTech has transitioned approximately 95% of CargoWise customers away from seat-based pricing to transaction-based pricing through the CargoWise Value Packs launched in December 2025. This new model aligns revenue to throughput and automation value rather than headcount, positioning the company to benefit as AI increases customer productivity without cannibalising its own revenue streams. As customers process more transactions with fewer staff, WiseTech captures revenue growth tied to volume rather than user count.
The company expects its AI transformation journey to deliver four key outcomes:
- A leaner, more efficient AI-led organisation supporting a structurally lower cost base and improved scalability
- A stronger, more deeply embedded platform as AI-driven automation, labour efficiency and risk reduction become more critical to customers
- The ability to leverage the transaction-based commercial model, deliberately aligned to value rather than number of users
- Significantly higher productivity and efficiency in software development, turning investment into customer value faster
Headcount reduction signals structural cost base reset
WiseTech has announced a phased reduction of up to 50% in product and development and customer service teams, expected to impact approximately 2,000 roles through FY26 and into FY27. The programme starts in the second half of FY26 and continues into the following financial year, with other functions potentially in scope from FY27 onwards.
CEO Zubin Appoo stated bluntly that the nature of software development has fundamentally changed.
Zubin Appoo, CEO
“Software development has experienced its most significant shift in decades. I am prepared to say this clearly: the era of manually writing code as the core act of engineering is over.”
The company expects the financial impact in FY26 to be neutral, with restructuring costs likely offsetting immediate savings. Material benefits are expected to flow into FY27 as the programme takes full effect. This represents a structural margin lever rather than a short-term cost cut, reflecting management’s conviction that AI productivity gains are measurable and sustainable. A leaner cost base improves scalability for future growth while maintaining or enhancing product development velocity.
e2open integration ahead of schedule
The integration of e2open, acquired for approximately $2.4 billion, is progressing ahead of expectations. WiseTech achieved the $50 million annualised run rate cost synergy target in January 2026, nearly 18 months earlier than the original FY27 target. The company continues to align e2open with “the WiseTech Way,” transitioning the business from a sales-led model to a product-led approach consistent with WiseTech’s operational philosophy.
Early synergy capture de-risks the acquisition thesis and demonstrates disciplined integration execution. The e2open platform significantly expands WiseTech’s addressable market, encompassing over 500,000 connected enterprises across manufacturing, logistics, channels and distribution.
Key financial metrics at a glance
| Metric | 1H25 | 1H26 | Change |
|---|---|---|---|
| Total revenue | $381.0m | $672.0m | +76% |
| CargoWise revenue | $332.5m | $372.4m | +12% |
| EBITDA | $192.3m | $252.1m | +31% |
| EBITDA margin | 50% | 38% | -13pp |
| Organic EBITDA margin | 51% | 51% | Flat |
| Free cash flow | $124.1m | $153.6m | +24% |
| Underlying NPAT | $112.1m | $114.5m | +2% |
| Interim dividend | 6.7cps | 6.8cps | +1% |
The table allows investors to assess the growth versus margin trade-off from the e2open consolidation. While the reported EBITDA margin compressed due to the acquisition and associated costs, the organic margin remained stable at 51%, indicating the core CargoWise business maintained profitability. Free cash flow growth of 24% demonstrates the highly cash-generative nature of the operating model.
Balance sheet and deleveraging trajectory
WiseTech’s net leverage ratio stood at 3.2x as at 31 December 2025, following the drawdown of $2.4 billion from the company’s $3 billion debt facility to fund the e2open acquisition. Management has outlined a clear deleveraging path: approximately 3.0x by the end of FY26, approximately 2.5x by the end of FY27, progressing towards a long-term target of less than 2.0x by August 2028.
The deleveraging trajectory provides visibility on capital structure normalisation post-acquisition. Strong operating cash flow of $231.7 million (up 14% on 1H25) supports debt reduction while maintaining investment in product development and customer service.
Large Global Freight Forwarder rollouts continue
WiseTech has now secured 59 total LGFF rollouts, including 11 of the Top 25 global freight forwarders. In 1H26, the company added two new rollouts:
- Sankyu
- CJ Logistics
Since 31 December 2025, two further rollouts have been secured under the new commercial model:
- Blue Water Shipping
- XPD Global
Notably, 11 contracted LGFFs currently have less than 20% of their expected users live as at 31 December 2025. This contracted-but-not-yet-live pipeline represents embedded future revenue growth as rollouts progress and adoption scales within each customer organisation.
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FY26 guidance reaffirmed
WiseTech has reaffirmed its FY26 guidance ranges, excluding the impacts of the headcount reduction announced today. The guidance assumes no material change in market conditions and reflects current trends in supply chain volumes.
- Revenue: $1.39 billion to $1.44 billion (representing growth of 79% to 85%)
- EBITDA: $550 million to $585 million (representing growth of 44% to 53%)
- EBITDA margin: 40% to 41%
Reaffirmed guidance provides confidence that 1H26 results are tracking to plan and management sees no deterioration in the near-term outlook. The guidance excludes restructuring impacts, with financial effects expected to be neutral in FY26 as execution costs offset savings.
Dividend maintained
The Board has declared a fully franked interim dividend of 6.8 cents per share (USD), representing a 1% increase on 1H25 and a payout ratio of 20% of Underlying NPAT. The dividend is payable on 10 April 2026 to shareholders registered as at 16 March 2026.
Dividend continuity signals capital allocation discipline and confidence in cash generation despite the significant e2open acquisition and ongoing investment in product development and AI capabilities.
WiseTech’s 1H26 result demonstrates the company can integrate a major acquisition while maintaining core business momentum. The WiseTech Global AI transformation represents a strategic inflection point, with CEO Zubin Appoo framing the shift as one of the most important in the company’s 30+ year history.
Zubin Appoo, CEO
“This marks one of the most important inflection points in our 30+ year history. We are leading deliberately and executing with discipline, strengthening our moat, enhancing customer outcomes, reshaping our workforce and positioning WiseTech for sustained long-term growth.”
The company’s competitive position rests on its global network, domain expertise, curated data and regulatory alignment within complex logistics workflows. As AI adoption accelerates, these advantages are expected to strengthen rather than erode, reinforcing WiseTech’s position as a critical infrastructure provider in global trade and logistics.
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