Under the Spotlight: WiseTech Global ($WTC)

ICYMI: Do your own research and make your own decisions. This article drills down on a specific company, however, it is not a recommendation to invest in the company and should not be taken as financial advice. Got a stock you want covered? Tell us here.

For years, WiseTech Global ($WTC) was the quiet achiever of Australian tech – a $20 billion logistics software giant that kept on delivering. But in 2025, the company helping move the world’s freight has found itself in rough waters.

Allegations involving its co-founder and executive chair, Richard White, have thrown WiseTech into the spotlight for all the wrong reasons, from insider trading claims to undisclosed staff relationships. 

These culminated in an AFP and ASIC raid on the company’s Sydney headquarters two weeks ago, sending WiseTech shares tumbling 17% in a day. They’re now down more than 40% year-to-date.

It’s a rare blow to confidence for one of the ASX’s most reliable growth stories. The question now: is this just market overreaction or a sign of something deeper?

Inside the engine room

WiseTech builds cloud-based logistics software, best known for its flagship platform, CargoWise. It’s the kind of back-end software you never see, but global trade doesn’t move without it.

CargoWise helps freight companies manage every part of moving goods across borders, from customs paperwork, shipment tracking, warehouse coordination and compliance.

It powers operations for 24 of the world’s 25 largest freight forwarders and 46 of the top 50 third-party logistics providers, including names like DHL and Nippon Express.

In short, if you’ve ordered something online, driven a car assembled overseas or even picked up imported groceries at the supermarket, there’s a good chance CargoWise helped it get to you.

Profits hold firm

This may be WiseTech’s biggest PR test yet, but the fundamentals haven’t missed a beat.

In FY25, revenue rose 14% to US$778.7M and net profit climbed 16% to US$200.7M,  continuing a five-year run that’s seen sales more than double.

Even so, the stock dropped more than 12% after the results were delivered in August. A sign the bar’s high for one of the ASX’s tech heavyweights.

Look past the headline numbers and the core metrics stand out. Underlying EBITDA margins held steady at 53%, while core EBITDA jumped 26% to US$409.5M.

Underlying profits can be particularly telling in growth companies because they exclude one-off events like acquisitions. Here, they highlight the strength of WiseTech’s core operations.

Earnings per share rose 16% to 60.4c, and unlike many growth stocks, WiseTech is returning cash to investors. Its final dividend was lifted 24% year-on-year to 7.7c, or around 20% of earnings.

Compared to peers like Atlassian and Xero, which still chase scale over profit, WiseTech’s ability to grow and stay profitable puts it in rare company.

How's it growin'

WiseTech’s story has always revolved around scaling CargoWise globally. To keep that edge, it pours billions into R&D and acquisition-led expansion.

In FY25, R&D corresponded to 34% of total revenue – way above average, even by tech company standards. For comparison, Microsoft ($MSFT) spends about 12%.

It also continues buying up logistics and customs software players to expand its reach. In May, it snapped up E2open Parent Holdings ($ETWO), a U.S. supply-chain planning provider. At US$2.1B, it was Wisetech’s biggest acquisition yet.

E2open reported US$607.7M in revenue last year, nearly matching WiseTech’s topline in one move.

The strategy is clear: grow scale, deepen integration and make CargoWise indispensable to every major freight player.

Buy calls linger

Despite the controversy, analysts aren’t turning away. 

Of 16 covering the stock, four rate it a ‘strong buy’, six a ‘buy’ and six a ‘hold’. The average price target? $116.70 – around 66% above where $WTC is currently trading (as of 5 November).

That suggests markets still see long-term potential, particularly given WiseTech’s sticky customer base and mission-critical software. 

Macquarie called the dip an ‘opportunity’, reiterating its confidence with a target of $108.50. Morgan Stanley echoed the sentiment, naming $WTC a top pick post-earnings with a $130 target (down from $140).

Still, the stock is trading below its historical price-to-sales ratio, suggesting the market’s applying a discount – driven by governance concerns and questions about future growth momentum.

Trust on trial

The challenge now is proving that WiseTech’s operations and culture can run as smoothly as its code.

Reports of boardroom upheaval and Richard White’s ongoing influence have shaken investor confidence. ASIC and AFP investigations only add to the uncertainty, with at least one major investor, AustralianSuper, exiting its position.

No charges have been laid following the raid, but these cases can drag on for months,  even years.

Then there’s White’s exit as CEO. Morningstar flagged his role as pivotal to WiseTech’s global rise. While his move to executive chair brings some continuity, it still opens the door to the usual leadership transition risks.

So, is $WTC a buy?

WiseTech remains a profitable, globally recognised software leader in a niche but vital sector. The numbers are strong, valuation more attractive, and analyst sentiment cautiously bullish.

But with governance questions still hanging over the company and growth needing to re-accelerate, volatility could stick around.

For long-term investors, WiseTech may prove a fantastic comeback story. But for now, it’s a stock as much under scrutiny as it is under the spotlight.

This is not financial advice nor a recommendation to invest in the securities listed. The information presented is intended to be of a factual nature only. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking financial, legal and taxation advice before investing.