Road transport software company EROAD plans to focus its investment efforts on Australia and New Zealand due to underperformance in the North American market.
The company said that although North America continues to be a key market, it has not met their expectations.
“North American resources will remain focused on delivering for our customers and partners, deepening relationships, and exploring further growth opportunities in cold chain.”
For the year ending March 2026, the guidance has been revised compared to the earlier forecast. Revenue is now expected to be between $197 million and $203 million, down from a previous estimate of $205 million. Annualised Recurring Revenue (ARR) is projected to range from $175 million to $183 million, compared to the earlier forecast of $188 million.
The free cash flow margin is anticipated to be between 5% and 8%, lower than the prior forecast of 8% to 10%. Additionally, there may be an impairment of up to $150 million due to challenges faced in the North American market.
“With governments in both New Zealand and Australia moving toward usage-based and time-of-use charging, EROAD is uniquely positioned to lead,” the company said.
“As a consequence of the challenging US market that led to a change in guidance and consistent with the strategic change in focus, EROAD expects to record an impairment to the carrying value of intangible assets relating to the North American region of up to $150m.”
The company also revealed plans to restructure its governance and management. The board has appointed John Scott as executive chair, effective immediately.
Mark Heine will take the lead as chief executive, while David Kenneson, who was appointed 18 months ago to oversee the North American market, will step down as co-CEO at the end of the month.