WiseTech (ASX:WTC) Rises After Richard White Cleared of Misconduct – Should You Buy the Dip?

WiseTech Global (ASX: WTC) climbed 3 per cent to A$70.18 on Friday after founder and Executive Chairman Richard White was cleared of all misconduct allegations following a year-long external review. For a stock now down more than 50 per cent from its A$140 highs, this news marks a turning point. But with an ASIC investigation still ongoing, the key question is simple: is now the right time to buy?

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What Richard White Was Cleared Of

The allegations against Richard were serious. Media reports claimed he misused company funds on overseas travel, personal relationships, and payments related to a rental property and plastic surgery for individuals connected to him.

WiseTech appointed external law firms Herbert Smith Freehills and Seyfarth Shaw to investigate. In March, they cleared White on five matters. Today’s announcement confirms all remaining allegations have been dismissed. The external advisors concluded that claims of inappropriate use of company funds “are not supported by evidence.”

In our view, this is a significant outcome. Governance concerns have weighed heavily on WiseTech’s share price. With this cloud lifting, investors can now focus more clearly on the underlying business.

The Risk That Remains – ASIC Is Still Investigating

Before investors rush in, there is one important risk. Richard White and three employees remain under investigation by ASIC and the Australian Federal Police over alleged insider trading and share sales during a prohibited blackout period.

The probe relates to trading between late 2024 and early 2025, when senior executives are typically banned from selling shares ahead of results. Reports suggest White sold approximately A$229 million worth of shares during this window. AFP officers raided WiseTech’s Sydney offices in late October.

No charges have been laid, and WiseTech has stated it will cooperate fully. However, if charges follow, it could reignite concerns and create fresh selling pressure. Conservative investors should be aware that this risk has not disappeared.

The Business Behind the Headlines

Strip away the controversy, and WiseTech remains one of Australia’s highest-quality software businesses. Its flagship product, CargoWise, is the dominant logistics platform globally. It serves more than 17,000 customers across 193 countries, including 24 of the largest 25 global freight forwarders and 47 of the top 50 global third-party logistics providers.

What makes CargoWise special is its stickiness. The platform takes years to roll out, and once embedded, customers rarely leave. WiseTech has reported annual churn below one per cent for 13 consecutive years, with 98 per cent recurring revenue.

In FY25, revenue reached approximately US$779 million with EBITDA margins of about 53 per cent. This is not a broken business. The recent acquisition of e2open in August 2025 further expands WiseTech’s reach, though its integration remains a key focus for new CEO Zubin Appoo.

The Investor’s Takeaway

At around A$70.18, WiseTech has fallen a long way from its A$140 highs. The stock still trades at a premium multiple of around 75 times forward earnings, but that is significantly cheaper than before the scandals erupted.

For long-term investors, WiseTech presents a compelling opportunity if the ASIC investigation resolves favourably. The business fundamentals are strong, governance issues are being addressed, and the share price already reflects much of the bad news.

However, buying now carries risk. Until ASIC concludes its probe, further negative headlines are possible. Investors comfortable with this uncertainty may see today’s clearance as a signal to start building a position. More cautious investors may prefer to wait for clarity.

Our take: WiseTech looks attractive at current levels for patient investors, but the ASIC investigation means it is not yet an all-clear.