t42 IoT Tracking Solutions Returns to Profit as Margins and SaaS Sales Improve

t42 IoT Tracking Solutions (LSE:TRAC), a provider of tracking and monitoring technology for global shipping containers, reported improved financial performance for 2025 as stronger margins and growth in subscription-based services supported profitability.

The company, known for its Lokies secure tracking padlocks and broader Internet of Things (IoT) logistics solutions, said unaudited revenue for the year increased to more than $6.1m, up from $4.16m in the previous year. Gross margins also strengthened to around 45%, while software-as-a-service (SaaS) revenue rose by roughly 10%.

Improved product mix and expanding recurring revenue helped the group move into profitability, delivering an operating profit of approximately $0.4m and EBITDA of about $1.05m. Management indicated that a growing order pipeline and long-term contracts should support continued commercial momentum, adding that the ongoing instability in the Middle East has so far had minimal impact on operations. The company expects to publish its audited results in April 2026.

Despite the improved operational results, the company’s broader outlook remains constrained by historically weak financial performance, including periods of declining revenue, negative margins and a leveraged balance sheet. From a technical standpoint, the shares appear overbought in the short term while maintaining an overall bearish trend. Valuation metrics remain challenging to interpret due to a negative price-to-earnings ratio and the absence of a dividend yield.

More about t42 IoT Tracking Solutions PLC

t42 IoT Tracking Solutions plc, formerly known as Starcom Systems plc, develops real-time tracking, monitoring and analytics systems for the global container and freight industry. Its cloud-connected, multi-sensor devices provide visibility and security across supply chains, serving ports, shipping companies, cargo owners, freight forwarders, insurers, customs authorities and security agencies. The company operates through a global network of distributors and partners and currently supports customers in more than 55 countries.