Trading Update
T42 IoT Tracking Solutions plc reported a strong trading update for the year ended 31 December 2025, with revenue increasing significantly to over $6.1 million from $4.16 million in 2024, driven by a 10% rise in SaaS revenues and strong sales of higher-margin products like Lokies. Gross margins improved to approximately 45% from 38%, and the company achieved an operating profit of around $0.4 million, a substantial turnaround from a $0.9 million operating loss in the prior year, alongside positive EBITDA of approximately $1.05 million compared to a $0.2 million loss. The company anticipates minimal impact from Middle East turmoil and remains confident in its pipeline and ability to service customers, expecting continued momentum and increased commercialisation in the current year.
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Continued progression towards sustained profitability
T42 IoT Tracking Solutions plc (AIM: TRAC) ("t42" or the "Company"), a leading provider of global shipping container tracking solutions, announces a trading update for the year ended 31 December 2025 (the "Period").
Financial Highlights (unaudited)
Revenue for the Period increased significantly to over $6.1m (2024: $4.16m), including a c.10% increase in SaaS revenues, highlighting strong trading across all parts of the business. Gross margins grew to c.45% (2024: 38%), reflecting the continued reduction of production costs and increased sales from higher margin products, notably Lokies. The Company is pleased to report an operating profit for the period of c.$0.4m, a substantial improvement on the prior year (2024: operating loss of $0.9m), with the Company achieving positive EBITDA of c.$1.05m (2024: EBITDA loss of $0.2m), reflecting the Board's focus on progressing towards sustained profitability.
Operational Highlights
The Company's products and technology continue to attract interest worldwide, with particular emphasis on the range of Lokies secure padlocks. Furthermore, the Company's innovative technology and solutions continue to underpin growing demand from a range of geographies and end customers, providing increasing levels of visibility. Importantly the Company is well placed to benefit from growing levels of pipeline conversion, SaaS revenues and long-term orders, underpinning management's confidence in delivering significant shareholder value.
Outlook
The Company is seeing the benefits of establishing long-term relationships with customers globally. Given the global nature of the customer base and location of manufacturing facilities, the Company foresees minimal impact from the current turmoil in the Middle East and remains confident that its pipeline and ability to service customers remain unaffected.
The strong momentum generated during the Period is expected to be reflected further during the current year. Increased levels of commercialisation are expected as the Company further develops both existing and new client relationships.
Notice of Results
Audited accounts for the Period are expected to be published during April 2026, with the notice of Annual General Meeting expected shortly thereafter.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.