WiseTech shares just crashed 18% on FY 2025 results! Here's why

WiseTech shares are getting hammered today. But why?

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WiseTech Global Ltd (ASX: WTC) shares are taking a beating today.

Shares in the S&P/ASX 200 Index (ASX: XJO) global logistics software solutions provider closed yesterday at $115.75. In earlier trade, shares crashed to $95.21 each, down 17.7%. After some likely bargain hunting, at the time of writing, shares are changing hands for $106.47 apiece, down 7.8%.

For some context, the ASX 200 is up 0.2% at this same time.

Here's what's got investors reaching for their sell buttons today.

(*Note all amounts below are in US dollars unless otherwise specified.)

WiseTech shares tumble despite strong growth

WiseTech shares have come under pressure following the release of the company's financial results for the 12 months ended 30 June (FY 2025).

Investor expectations were clearly high, with the 14% year on year increase in total revenue to $778.7 million falling just shy of consensus analyst forecasts.

The company's CargoWise platform performed particularly well, with revenue of $682.2 million, up 18% from FY 2024.

Reported earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 17% to $381.6 million. The EBITDA margin rate was up 1% to 49%.

Free cash flow also grew strongly, up 31% to $287.0 million.

On the bottom line, statutory net profit (NPAT) of $200.7 million was up 17% year on year.

This saw management boost the fully franked final WiseTech dividend by 24% from last year's payout to 7.7 cents per share. Eligible investors can expect to see that hit their bank accounts on 10 October.

Among the biggest happenings of the year was WiseTech's agreement to acquire e2open, a United States-based supply chain solutions company, for US$2.1 billion, which was completed on 4 August.

What did management say?

Commenting on the results that have failed to boost WiseTech shares today, CEO Zubin Appoo said:

WiseTech's FY25 results reflect a solid financial foundation and demonstrate the resilience and scalability of our business model and commitment to sustainable value creation – positioning us strongly for the opportunities ahead.

Our margin performance highlights the underlying operating strength of the business and continued momentum we're seeing with our new and existing Large Global Freight Forwarder customers, as they continue to consolidate and expand their use of the CargoWise application suite.

Appoo added that the company's "transformative" acquisition of e2open, "brings further deep domain expertise, expands our product offerings, and grows our total addressable market in the $11 trillion global trade and logistics industry".

What's ahead for WiseTech shares?

Looking at what could impact the ASX 200 tech stock in the year ahead, and what may be dragging on WiseTech shares today, the company flagged FY 2026 EBITDA margin rate dilution from the initial consolidation of e2open.

The company provided FY 2026 revenue guidance in the range of $1.39 billion to $1.44 billion, representing revenue growth of 79% to 85%.

Management expects FY 2026 EBITDA to be between $550 million and $585 million, representing EBITDA growth of 44% to 53%.

The FY 2026 EBITDA margin is forecast to be 40% to 41%, down from 49% in FY 2025.

With today's big intraday fall factored in, WiseTech shares are down 9% since this time last year, exclusive of dividends.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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