EROAD's financial performance in H1 FY25

EROAD (ASX:ERD) has announced its financial results for the first half of fiscal year 2025. The transportation technology company reported a positive free cash flow of NZ$0.1 million, reversing a negative cash flow from the previous year. Revenue grew by 8% to NZ$95.9 million across all markets. Annualized recurring revenue also increased by 5% to NZ$177.9 million. EROAD is on track to meet its FY25 financial guidance.

EROAD's strategic outlook and guidance

EROAD (ASX:ERD) has shown significant financial improvement in H1 FY25, with a shift to positive free cash flow and an 8% rise in revenue. The company maintains high customer retention and has secured important contracts in both Australasia and North America. With a strategic partnership with Geotab and innovative product launches, EROAD is focusing on expanding its market presence. The company expects to meet its FY25 revenue guidance of NZ$190 to NZ$195 million and aims for an EBIT of NZ$5 to NZ$10 million. EROAD is committed to disciplined growth, improving operational efficiency, and capitalizing on emerging market opportunities.

Executive insights on EROAD's performance

The positive free cash flow and revenue growth highlight our successful strategy execution. Our focus on customer retention and securing key enterprise customers has been pivotal. We are confident in achieving our full-year guidance and continue to innovate and expand our market reach,' said the company.