EROAD Limited (ERD) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Apologies for those who are joining us now. We'll just kick off, so I've been a bit late. And good afternoon, everyone, and thank you for joining us today for FY26 annual half year results. I'm Mark Varner, CEO of Aeroad. I'm delighted to be introducing Keir McGuigan, Aeroad's new CFO who commenced at Aeroad in September. I'll start by outlining our performance for the half. Then Keir will take you through the financials. We'll then finish with outlook and guidance before opening up for questions. Turning to the key numbers for the half, free cash remains a real strength for ERO, coming at $6.2 million. We've delivered consistent cash generation over multiple periods based on operational discipline that's been built into the business. Reported revenue was just over $99 million, with 3.3% of the steady performance across the installed base and contributions from ongoing rollouts. Annualised recurring revenue increased to over $178 million, up 6.9% or 3% in constant currency. Growth continues to come from higher value subscriptions and enterprise expansion. Normalised EBIT was $2.5 million, lower than the prior period due to some higher costs and lower R&D capitalisation. Keira will step through these movements in more detail in the finance update. The results show a business that remains strong and resilient across its core fundamentals. First, our cash generation continues to be a standout. Free cash flow was over 6 million, or almost 17 million on a normalised basis, once the one-off 4G upgrade costs are removed. With that programme finishing this year, the underlying cash profile becomes much clearer and provides greater flexibility in how we allocate our investments. Liquidity remains strong at over $62 million, giving us confidence in the pace and focus of our in...