Freightos Limited ((CRGO)) has held its Q3 earnings call. Read on for the main highlights of the call.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Freightos Limited’s recent earnings call conveyed a sentiment of cautious optimism, reflecting a positive outlook despite some challenges. The company highlighted significant transaction growth, strategic partnerships, and new product launches, while also acknowledging macroeconomic uncertainties, slower-than-expected solutions revenue growth, and foreign exchange headwinds. The focus remains on long-term strategic growth, balancing optimism with awareness of the external economic environment.
Record Transaction Growth
In the third quarter of 2025, Freightos processed an impressive 429,000 transactions, marking a 27% increase compared to the previous year. This achievement signifies the 23rd consecutive quarter of record transactions, underscoring the company’s consistent growth trajectory and its ability to capture market demand effectively.
Strategic Partnership with Visa
Freightos announced a strategic partnership with Visa, aimed at enhancing the payment experience for freight forwarders and importers/exporters. This collaboration is set to provide modern financing solutions, which is expected to streamline operations and offer greater financial flexibility to users of the Freightos platform.
Launch of Multimodal Rate Management Product
The company successfully launched its new multimodal rate management and quoting SaaS product, WebCargo Rate & Quote Ocean. Early adoption by Nippon Express indicates a positive reception, suggesting that this product could become a significant contributor to Freightos’ service offerings and revenue streams.
Revenue Growth
Freightos reported a revenue of $7.7 million for Q3 2025, representing a 24% year-over-year increase. This growth reflects the company’s expanding market presence and its ability to capitalize on increasing demand for digital freight solutions.
Gross Margin Improvement
The company achieved an improvement in its non-IFRS gross margin, which rose from 72.7% to 74.8% year-on-year in Q3 2025. This improvement highlights Freightos’ operational efficiencies and its focus on optimizing profitability.
Impact of Tariffs and Macro Uncertainty
Freightos acknowledged the impact of tariffs and macroeconomic uncertainty, which have introduced volatility in the freight market. These factors have particularly affected transpacific e-commerce volumes, posing challenges to market stability.
Slower Solutions Revenue Growth
Despite a 30% year-on-year growth in solutions revenue, the increase was lower than anticipated. This was attributed to longer sales cycles influenced by prevailing market conditions, indicating a need for strategic adjustments to accelerate growth.
Foreign Exchange Headwinds
The company’s adjusted EBITDA was negatively impacted by foreign exchange fluctuations, particularly due to a stronger euro against the U.S. dollar. This challenge underscores the importance of managing currency risks in global operations.
Delayed Revenue from Ocean Booking
Freightos does not expect meaningful revenue contribution from ocean booking transactions until 2028, as the industry undergoes a slow digital transformation. This delay highlights the challenges in transitioning traditional sectors to digital platforms.
Forward-Looking Guidance
CFO Pablo Pinillos provided guidance for the upcoming quarters, forecasting continued year-on-year growth in transactions, gross booking volume, and revenue for Q4 2025. Despite foreign exchange headwinds, Freightos aims to reach breakeven adjusted EBITDA by Q4 2026. The company expects to end 2025 with approximately $27 million in cash, with a shift in revenue composition towards platform revenue affecting profitability but reducing overall cash burn.
In conclusion, Freightos Limited’s earnings call reflects a cautiously optimistic outlook, with significant achievements in transaction growth and strategic initiatives. While challenges such as macroeconomic uncertainties and foreign exchange headwinds persist, the company’s focus on strategic growth and operational efficiencies positions it well for future success.