Their main issue is the high level of corporate and development...

Their main issue is the high level of corporate and development costs which had a negative impact of 45.1 m NZD on their free cash flow.
It has absorbed a large part of their free cash flow from NZ (53.3 m NZD).
As North America and Australia have a small contribution to free cash flow (respectively 10.6 m NZD and - 2.9 m NZD), it explains why the company has still a low level of free cash flow.

The corporate and development costs are basically a fixed cost, even if there were some one off due to 4G transition.
So, the main question for ERD is to better absorb these fixed costs, by increasing the size of their business.
It is probably what they tried to do, via doing their acquisition in the US (but it turned out that this acquisition did not deliver the expected results).

It is clear that the existing level of revenue growth* (+10 % in FY 24, + 6.8 % in FY 25 and + 5.7 %e in FY 26) was not enough to expect a rapid scaling effect for E Road.
Even if their domestic market was doing well (+ 12.9 % in NZ in FY 25), it was offset by the poor performance of North America (+ 1.5 % in FY 25).

We have to recognise that their growth out of NZ has been rather disappointing so far, while they have been in Australia and the US since 2014 (date of their IPO). Even if Australia had a rather good FY 25 (+ 28 % for the revenues, from a low basis).

In NZ, they have a strong track record, as the annual collection of RUC went from 219 m NZD in 2014 to over 900 m NZD in FY 25.
The best evidence of their success in NZ : E Road share of total heavy vehicle RUC went from 22 % in 2014 to 56 % in 2025.

The new regulation to come in NZ is probably the less risky way for ERD to scale its business.
As it significantly increase the market size in NZ, where ERD is by far the leader.

The question I have is the pricing and cost structure for this new market (passenger vehicles), as it will probably attract lower average price per customer (less road usage than their traditional customers, the commercial vehicles) and could require additional costs ? (managing passenger vehicles will require a new organization ?).

According to the NZ government, the new system will not be implemented before 2027 or 2028.
So, I do not know if the stock market will rapidly discount such a change (in 2 to 3 years).
Unless perhaps E Road gives some guidance regarding to the expected effect for the company.

* limited unit count growth of around 1 % hoh during the last 2 half years.