Highlights:

  • First positive Group EBITDA of NZ$167k, marking a major profitability milestone
  • Revenue grew 15% YoY to NZ$1.80m, led by strong Locate2u performance (+42%)
  • AI integration across operations accelerated product development and growth

Overview:

Locate Technologies Limited (NZX:LOC) delivered a milestone performance in Q3 FY26, reporting its first positive Group EBITDA of NZ$167k, a significant turnaround from a loss in the prior year. Revenue rose 15% year-on-year to NZ$1.80 million, supported by strong growth in its Locate2u platform, which increased 42% and now contributes 60% of total revenue. The quarter reflected a structural shift in the company’s operating model, with artificial intelligence embedded across engineering, sales, and product development.

This transformation enabled faster innovation, including a move from weekly to daily product releases. Cash remained stable at NZ$1.1 million, while the company also announced a share buyback programme, signalling confidence in its valuation. Overall, the results highlight improving operating leverage, growing customer demand, and the increasing role of AI in driving efficiency and scalability.

AI-Driven Growth and Product Innovation:

AI is becoming central to Locate Technologies Limited’s growth strategy, transforming how products are developed and delivered. The company embedded AI across its engineering workflows, enabling faster testing, iteration, and deployment of features. This shift allowed release cycles to accelerate from weekly to daily. AI capabilities are also being integrated into customer-facing solutions, including route optimisation trials and automated address processing. These innovations are enhancing product value and positioning the company at the forefront of next-generation logistics technology.

Locate2u Momentum and Financial Progress:

Locate2u continued to be the primary growth engine, delivering record revenue and strong customer traction. Growth was driven by both expansion within existing clients and new customer acquisitions, particularly as businesses seek efficiency amid rising fuel costs. The platform’s increasing contribution to total revenue highlights its scalability and market relevance. Financially, the company demonstrated improved operating leverage, with revenue growth achieved on a relatively stable cost base. Sequential monthly EBITDA improvement through the quarter further reflects strengthening underlying business performance.