Freightos Limited Reports Record Growth and Expansion

Freightos Limited ((CRGO)) has held its Q1 earnings call. Read on for the main highlights of the call.

Freightos Limited’s recent earnings call conveyed a generally positive sentiment, highlighting record transactions, revenue growth, and platform expansion. The company demonstrated strong financial performance, although it acknowledged challenges related to trade tariffs and macroeconomic sensitivities. Despite these hurdles, Freightos appears well-positioned for continued growth.

Record Transactions and Revenue Growth

Freightos Limited reported record revenues for Q1 2025, marking the 21st consecutive quarter of record transactions. The company facilitated 370,000 transactions, a 25% increase compared to Q1 of the previous year. This growth underscores the company’s robust market presence and operational efficiency.

Platform Expansion with New Carriers

The addition of four new carriers to Freightos’ platform, bringing the total to 71, enhances the platform’s value proposition. This expansion is expected to attract more customers and increase the platform’s competitiveness in the logistics industry.

Strong Performance in Solutions Segment

The Solutions segment saw a 33% year-on-year revenue growth, driven by new enterprise customer wins and a remarkable 100% customer retention rate in data solutions. This segment’s performance highlights Freightos’ ability to deliver value to its enterprise clients.

Enterprise Suite Launch

Freightos launched a comprehensive Freightos Enterprise Suite, designed to meet the complex needs of multinational shippers. This new offering is expected to strengthen the company’s position in the market by catering to the specific requirements of large-scale clients.

Financial Performance Exceeding Guidance

The company reported a revenue of $6.9 million, representing a 30% growth year-on-year, with an improved gross margin of 66.8%, up from 62.6% in Q1 last year. This financial performance exceeded the company’s guidance, showcasing its operational strength.

Impact of Tariffs on China-U.S. Trade Lane

Significant tariffs on China-U.S. trade lanes led to a dip in transactions. However, this lane accounts for less than 2% of total transactions, minimizing the overall impact on Freightos’ operations.

Macroeconomic Sensitivity

Freightos’ platform is sensitive to fluctuations in trade volumes, and the Solutions segment is particularly vulnerable to macroeconomic uncertainties, which could potentially impact revenue. The company remains vigilant in navigating these challenges.

Forward-Looking Guidance

For Q2 2025, Freightos expects to process 380,000 to 385,000 transactions, reflecting a 20% to 22% year-over-year growth, and anticipates generating $7.0 million to $7.1 million in revenue. The company projects a gross booking value (GBV) of $278 million to $285 million, representing a 37% to 40% increase year-on-year. Despite market uncertainties, Freightos reiterated its full-year guidance, emphasizing resilience in its business model and focusing on growth opportunities. The company aims to achieve breakeven adjusted EBITDA by the end of 2026, with a strong balance sheet, ending Q1 with $36.4 million in cash and cash equivalents.

In summary, Freightos Limited’s earnings call highlighted a positive outlook with record-breaking transactions and revenue growth. The company’s strategic platform expansion and strong performance in the Solutions segment underscore its market strength. Despite challenges from tariffs and macroeconomic factors, Freightos remains optimistic about its future growth prospects, as reflected in its forward-looking guidance.