Shares in WiseTech Global plunged 7% to A$31.48 on Thursday, extending a brutal slide that has erased nearly three-quarters of the stock's value in twelve months. The logistics software company's shares tumbled to their latest low, leaving the stock down almost 73% over the past year. The sell-off reflects an investor base that has lost patience with mounting governance chaos around founder Richard White — even as the underlying business keeps growing.
A Federal Police Probe Has Made the Stock Uninvestable for Many
White has "emphatically and unequivocally" denied involvement after reports that the AFP launched a human exploitation probe into allegations he coerced a woman by exploiting her immigration status. But denial hasn't stopped the damage. The company lost over $2 billion from its market value on the day the AFP reports first surfaced , and short interest — bets that the stock will fall further — surged from 1.2% last June to a record high above 8%. Separately, AFP and securities regulator ASIC previously raided WiseTech offices over alleged share trading violations by White and three other employees. For institutional investors with governance mandates, the accumulating legal risks are a dealbreaker.
The Business Itself Is Still Growing — But Slowing
FY25 revenue rose 14% to US$778.7 million and underlying net profit climbed 30% to US$241.8 million, but first-half FY26 organic growth in its core logistics platform slowed to about 9%.
A debt-funded, roughly US$2.1 billion acquisition lifted revenue sharply but pushed net leverage to about 3.2 times earnings — a heavier balance sheet at the worst possible time for a company under siege.
Analysts Still See Huge Upside — The Market Doesn't Care
The analyst consensus remains a "Strong Buy" with an average price target of A$65.36 — implying roughly 89% upside — and Jefferies maintained a Buy with a A$60 target.
Morningstar's analyst is sticking with a fair value of A$138 but has flagged a 15–20% haircut to that estimate if White were forced out. The yawning gap between analyst models and the market price tells a clear story: investors are pricing in outcomes models don't capture — regulatory penalties, leadership upheaval, or customer defection.
What Comes Next Decides Everything
WiseTech's full-year results land August 26, but governance changes could have more impact on the share price than any earnings update. Until the AFP matter resolves and White's role is clarified, WiseTech remains a high-quality software franchise trapped inside a governance crisis — and the market is charging a steep toll for the uncertainty.