Delivery management software maker FarEye turned its first quarterly profit in the three months ended March 31, closing a fiscal year in which revenue from Europe, the Middle East and Africa rose 51.17%. The India-based company’s annual net loss narrowed to $1.07 million from $5.90 million.
Since its $100 million fundraising in 2021, FarEye has continued to expand its global business. Over the past five years, its North America and EMEA businesses together have added more than four times as much new revenue as its APAC business in FY26.
Many of FarEye’s larger customers operate across multiple geographies, so regional revenue attribution doesn’t always reflect the full geographic footprint of these relationships, the company told FreightWaves.
Americas revenue grew 13.25% to $7.97 million in fiscal 2026, while EMEA revenue reached $10.4 million, Nahata said in written responses to FreightWaves. Companywide revenue from operations rose 24.58% to $27.90 million. FarEye reports in Indian rupees and converted every year at 88.37 rupees per dollar, so currency swings do not affect the growth rates.
Nahata said the last mile is the only part of the supply chain that customers actually see.
“Delivery has shifted from being just the final step of an order to a crucial part of what customers expect,” he said. “Unfortunately, a lot of decision-makers still measure success by cost per delivery instead of focusing on customer retention.”
Enterprise customers and competition
FarEye ended the year serving 13 customers that are Fortune Global 500 companies or their group entities, four of them added in fiscal 2026. Customers with annual revenue of $500 million or more produced 70.86% of revenue from operations.
Nahata said Maersk uses FarEye to get more out of its Ground Freight capacity. In the U.S., he pointed to Tractor Supply, which uses FarEye’s AI tools to coordinate its fleet with third-party delivery networks across more than 2,400 stores.
U.S. online demand is still climbing. E-commerce made up 17.1% of U.S. retail sales in the second quarter and grew 12.2% from a year earlier, while total retail sales rose 6.7%, according to the Census Bureau’s second-quarter 2026 Quarterly Retail E-Commerce Sales report.
Competition for large retail accounts has also shifted. Illustrating the example, Ingka Group, Ikea’s largest retailer, bought AI-powered logistics platform Locus in October 2025 and kept it serving its existing enterprise clients.
How FarEye narrowed its loss
Revenue from operations rose $5.51 million in fiscal 2026 while total expenses rose $0.96 million.
“This means that for every extra dollar we earned, our costs increased by only about 17 cents,” Nahata said.
He credited AI tools in operations and product development, saying employee costs stayed almost the same year over year. The company did not say which tasks those tools took over or how its headcount changed.
Subscription gross margin rose to 79.42% from 73.44% in fiscal 2025 and 67.38% in fiscal 2024. Subscription revenue, generated under committed multiyear contracts, made up 83.25% of revenue from operations.
“While AI has played a role in this progress, especially in our operations and product development, I wouldn’t say it’s the only factor,” Nahata said. “The overall improvement comes from a combination of a better product, greater scale, and higher productivity.”
PILOT launched after the fiscal year
FarEye launched PILOT, an agentic AI dispatcher for last-mile hubs, in April, after the fiscal year closed, so the tool is not reflected in these results. It handles scheduling, routing, driver assignment and delivery exceptions, with dispatchers able to approve or override its decisions.
“A dispatch team needs to understand what the system is doing and step in when a situation requires judgment,” Nahata said.
The company has not disclosed how many customers run PILOT in production or quantified its financial impact.
No profit forecast for fiscal 2027
FarEye has not issued a profit forecast for fiscal 2027, and it did not disclose the size of its fourth-quarter profit or revenue.
Cash reserves stood at $30.63 million at year-end, and Nahata said FarEye can now serve more customers without costs rising at the same pace.
“While we’re not ready to give profit projections for FY27 yet, I believe FY26 was a crucial step in showing that kind of growth,” Nahata said.
Why it matters: U.S. retailers signing multiyear delivery software contracts are betting on a vendor’s staying power. FarEye now has a profitable quarter behind it and a growing list of clients
