Mark Heine
CEO, Executive VP & Company Secretary
Apologies for those who are joining us now. We’ll just kick off, sorry, we’re a bit late. And good afternoon, everyone, and thank you for joining us today for FY ’26 annual half year results. I’m Mark Heine, CEO of EROAD. I’m delighted to be introducing Ciara McGuigan, EROAD’s new CFO, who commenced at EROAD in September.
I’ll start by outlining our performance for the half, and Ciara 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 flow remains a real strength for EROAD coming at $6.2 million. We’ve delivered consistent cash generation over multiple periods, thanks to the operational discipline that’s been built into the business.
Reported revenue was just over $99 million, a 3.3% with steady performance across the installed base and contributions from ongoing rollouts. Annualized 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.
Normalized EBIT was $2.5 million, lower than the prior period due to some higher costs and lower R&D capitalization. Ciara will step through these movements in more detail in the finance update.
The results show our business 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 normalized basis once the one-off 4G upgrade costs are removed. With that program finishing this year, the underlying cash profile becomes much clearer and provides greater visibility in how