WiseTech Global Limited (ASX: WTC)
WiseTech Global Limited has executed a major expansion move with the acquisition of U.S.-based E2open Parent Holdings, Inc., positioning itself to further scale across the global logistics and supply chain ecosystem. The $2.1 billion enterprise value transaction adds a vast network of over 500,000 connected enterprises and approximately 5,600 customers, including more than 250 blue-chip clients. The acquisition broadens WiseTech’s solutions by adding features related to domestic logistics, international trade compliance, supply chain planning, and collaborative operations. The transaction is expected to be earnings per share accretive in its first year and is being funded through a newly arranged $3.0 billion syndicated debt facility from a consortium of international banks.
WiseTech delivered strong performance in H1 FY25, driven by its strategic emphasis on expanding its product suite, increasing market reach, and leveraging operational efficiencies. Total revenue rose to $381.0 million, with CargoWise revenue reaching $331.7 million, supported by 20 percent organic growth. The company reported an EBITDA of $192.3 million, achieving a 50% margin, alongside a rise in free cash flow to $124.1 million. Operating cash flow was up 24 percent to $202.7 million. The company invested $137.0 million in research and development during the period, delivering 612 product enhancements to its CargoWise suite. With a clear integration plan in place, a highly cash-generative model, and significant liquidity to support future growth, WiseTech is accelerating its roadmap to become a fully connected, digital-first global logistics platform, enabling end-to-end visibility, productivity, and compliance for the world's supply chain operators.
Xero Limited (ASX: XRO)
Xero Limited, a global small business platform, has delivered a strong set of results for FY25, showcasing disciplined growth, product innovation, and continued expansion across key markets. Operating revenue for the year ended 31 March 2025 rose by 23% to $2.1 billion, underpinned by growth across all regions and business segments. Core accounting revenues increased by 23%, while platform revenue surged 29%, largely driven by strong payments performance. Average revenue per user grew 15% to $45.08, and total global subscribers reached 4.41 million, supported by the removal of 160,000 long idle subscriptions earlier in the year. Adjusted EBITDA increased by 22% to $640.6 million, and net profit after tax rose 30% to $227.8 million. Free cash flow jumped 48% to $506.7 million, resulting in a Rule of 40 outcome of 44.3%.
In FY25, Xero continued executing its 3x3 strategy—focusing on accounting, payroll, and payments in Australia, New Zealand, and international markets. Product developments included the rollout of Xero Simple to support Making Tax Digital in the UK, deeper bank integrations in the US, and expanded payroll features in Australia and the UK. The company also launched Tap to Pay capabilities in its mobile app and introduced Just Ask Xero (JAX), its generative AI business companion, globally to Business Edition users. With a net cash position of $682.9 million and total liquid resources of approximately $2.3 billion, Xero enters FY26 well-positioned to accelerate innovation, expand customer value, and strengthen its leadership in the global SaaS landscape.
(Source: Company Announcements)
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