Trade Window Holdings Limited Analysis

Overview

TradeWindow is a software company serving organisations working on the front line of global trade. TradeWindow provides digital solutions for exporters, importers, freight forwarders, and customs brokers to drive productivity, increase connectivity, and enhance visibility.

Performance

The following information was extracted from Trade Window Holdings Limited's announcement, released 30 July 2025

Our unaudited financial and operational metrics for Q1 FY26 (1 April 2025 to 30 June 2025) highlight our commitment to sustainable, cost-efficient growth:

• Trading revenue: $2.3 million, up 30% on the prior year.
• Annual Recurring Revenue (ARR): $8.7 million, up 28% on 30 June 2024.
• Average Revenue Per Customer (ARPC) (per month): up for both shippers ($2,209) and freight forwarders ($1,215) by 7% and 33% respectively.
• Gross Margin: 57%, down four percentage points on FY25 (detail provided below).
• Customer Retention Rate: 95%, up eight percentage points on FY25.

We reaffirm our trading revenue guidance for FY26 in the range of $10 million to $11 million which represents a 25% to 37.5% uplift on FY25.

REVENUE GROWTH

Our Q1 FY26 trading revenue reached $2.3 million, a 30% increase from the prior year’s first quarter, driven by expansion in Australia, effective cross-selling of solutions to existing clients, and selective price increases for TW Freight customers. Annual Recurring Revenue (ARR) grew 28% year-over-year, remaining stable compared to the end of FY25, despite Q1 typically being a slower period for new customer acquisition.

We have strategically focused on mid-market freight forwarders with operations spanning air, ocean, land transport, customs brokerage, and warehousing. These businesses are increasingly adopting the next generation of efficiency tools to achieve competitive pricing, operational efficiency, and economies of scale, as evidenced by a 33% increase in Average Revenue Per Customer (ARPC) in the freight forwarder segment to $1,215 per month. This focus has resulted in the discontinuation of services to micro-sized freight forwarders (single user companies) as a strategy moving forward. By prioritising clients with higher revenue potential, we ensure our cost-to-serve aligns with financial sustainability, supporting our goal of delivering full-year EBITDA profitability this financial year.