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Freightos Limited (CRGO)
NASDAQ:CRGO
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Freightos Limited
(NASDAQ:CRGO)
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Rating:40Underperform
Price Target:
$2.50
▲(6.84% Upside)
Freightos Limited faces significant challenges in profitability and cash flow, which are major concerns. The technical analysis indicates a bearish trend, and the valuation suggests the stock is overvalued. Despite some positive outlook from the earnings call, the financial and technical weaknesses weigh heavily on the overall score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term business expansion.
Strategic Partnerships
Partnerships with major firms like Visa enhance service offerings and market reach, strengthening competitive positioning over time.
Product Innovation
Innovative products like the multimodal rate management tool can drive customer adoption and revenue, supporting long-term growth.
Negative Factors
Profitability Challenges
Ongoing profitability issues may hinder reinvestment and growth, posing risks to long-term financial health and shareholder returns.
Cash Flow Concerns
Negative cash flow limits the company's ability to fund operations and invest in growth, impacting long-term sustainability.
Leadership Transition
Leadership changes can create uncertainty and disrupt strategic direction, potentially affecting long-term company performance.
Freightos Limited (CRGO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$120.01M
Dividend YieldN/A
Average Volume (3M)98.85K
Price to Earnings (P/E)―
Beta (1Y)1.58
Revenue Growth27.55%
EPS Growth-42.84%
CountryUS
Employees378
SectorIndustrials
Sector Strength72
IndustryIntegrated Freight & Logistics
Share Statistics
EPS (TTM)-0.10
Shares Outstanding51,285,847
10 Day Avg. Volume102,169
30 Day Avg. Volume98,852
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)2.70
Price to Sales (P/S)6.23
P/FCF Ratio-12.20
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue5.25
Enterprise Value/Gross Profit7.75
Enterprise Value/Ebitda-7.87
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Freightos Limited Business Overview & Revenue Model
Company DescriptionFreightos Ltd., owns and operates an online freight marketplace. It connects importers and exporters, providing instant comparison, booking, and management of air, ocean, and land shipments from forwarders. Further, the company offers freight software solutions, such as Freightos AcceleRate that offers freight rate management, instant freight quotes, and business intelligence; Enterprise Shipper that offers freight tariff control, real-time landed pricing, routing, and spend analytics; Freightos WebCargo; and Freightos Shipping Calculator which integrates with the e-commerce platform, providing instant international air or ocean pricing for oversized goods and e-commerce. Additionally, the company offers freight shipping tools, including HS Code lookup, an interactive airport and seaport directory; and a freight density calculator. The company caters to forwarders, carriers, enterprise shippers, logistics providers, and e-commerce retailers for automating freight and sales. The company was formerly known as Tradeos Limited and changed its name to Freightos Ltd. in March 2016. The company was founded in 2011 and is based in North Point, Hong Kong with operations in Hong Kong, China, Germany, Israel, and Palestine.
How the Company Makes MoneyFreightos generates revenue through various key streams, primarily by charging transaction fees on bookings made through its platform. Each time a shipper books a shipment via the Freightos system, the company earns a commission from the freight forwarders or carriers involved in the transaction. Additionally, Freightos offers subscription services for advanced features and analytics tools, which cater to businesses seeking to optimize their shipping logistics. The company has formed strategic partnerships with numerous freight forwarders and logistics providers, enhancing its service offerings and expanding its market reach, which contributes significantly to its overall earnings.
Freightos Limited Earnings Call Summary
Earnings Call Date:Nov 17, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 02, 2026
Earnings Call Sentiment Neutral
The earnings call presented a generally positive outlook with significant transaction growth, strategic partnerships, and product launches. However, challenges such as macroeconomic uncertainties, slower-than-expected solutions revenue growth, and foreign exchange headwinds were noted. Overall, the sentiment reflects cautious optimism, with a focus on long-term strategic growth.Q3-2025 Updates
Positive Updates
Record Transaction Growth
In Q3 2025, Freightos processed 429,000 transactions, marking a 27% year-on-year increase. This is the 23rd consecutive quarter of record transactions.
Strategic Partnership with Visa
Freightos announced a partnership with Visa to provide freight forwarders and importers/exporters access to modern financing solutions, enhancing the payment experience on their platform.
Launch of Multimodal Rate Management Product
Freightos successfully launched and validated its new multimodal rate management and quoting SaaS product, WebCargo Rate & Quote Ocean, with early adoption by Nippon Express.
Revenue Growth
Freightos reported a revenue of $7.7 million for Q3 2025, representing a 24% year-over-year increase.
Gross Margin Improvement
Non-IFRS gross margin improved from 72.7% to 74.8% year-on-year in Q3 2025, reflecting operational efficiencies.
Negative Updates
Impact of Tariffs and Macro Uncertainty
Tariffs and macroeconomic uncertainty have created volatility in the freight market, particularly affecting transpacific e-commerce volumes.
Slower Solutions Revenue Growth
Despite a 30% year-on-year growth in solutions revenue, the increase was lower than anticipated due to longer sales cycles influenced by market conditions.
Foreign Exchange Headwinds
Adjusted EBITDA was negatively impacted by foreign exchange fluctuations, specifically a stronger euro against the U.S. dollar.
Delayed Revenue from Ocean Booking
Meaningful revenue contribution from ocean booking transactions is not expected until 2028, as the industry undergoes a slow digital transformation.
Company Guidance
During the Freightos Q3 2025 earnings call, CFO Pablo Pinillos provided guidance for the upcoming quarters, highlighting that the company anticipates continued year-on-year growth in transactions, gross booking volume (GBV), and revenue for Q4 2025. Despite foreign exchange headwinds impacting adjusted EBITDA, Freightos expects to reach breakeven adjusted EBITDA by Q4 2026. Revenue for Q3 was $7.7 million, a 24% increase year-on-year, with platform revenue at $2.6 million and solutions revenue at $5.1 million. The company closed the quarter with $30.6 million in cash and expects to end 2025 with approximately $27 million. While a shift in revenue composition towards platform revenue, which typically has a lower take rate than solutions revenue, affected profitability, overall cash burn is expected to decrease from $15 million in 2024 to $10 million in 2025.Freightos Limited Financial Statement Overview
Summary
Freightos Limited shows revenue growth and a strong gross profit margin, but faces significant profitability and cash flow challenges. The low leverage is a positive aspect, providing financial flexibility, yet the negative return on equity and cash flow issues indicate ongoing operational and liquidity risks.Income Statement
Freightos Limited shows a consistent increase in revenue, with a TTM revenue growth rate of 5.48%. However, profitability remains a challenge as indicated by negative net profit margins and EBIT margins, reflecting ongoing operational inefficiencies. The gross profit margin is relatively strong at 67.69% TTM, suggesting effective cost management at the gross level, but this is overshadowed by substantial operating losses.Balance Sheet
The company maintains a low debt-to-equity ratio of 0.04, indicating conservative leverage. However, the return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. The equity ratio is stable, suggesting a solid capital structure, but the negative ROE highlights profitability issues.Cash Flow
Freightos Limited's cash flow situation is concerning, with negative operating cash flow and free cash flow. The free cash flow to net income ratio is slightly above 1, indicating that cash flow is closely aligned with net income, albeit both are negative. The free cash flow growth rate shows some improvement, but cash flow coverage ratios remain negative, highlighting liquidity challenges.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 28.64M | 23.79M | 20.28M | 19.09M | 11.12M | 8.51M |
| Gross Profit | 19.39M | 15.50M | 11.80M | 11.23M | 6.52M | 4.24M |
| EBITDA | -19.10M | -17.29M | -62.38M | -20.56M | -15.25M | -12.47M |
| Net Income | -23.58M | -22.49M | -65.47M | -24.70M | -16.36M | -14.17M |
Balance Sheet | ||||||
| Total Assets | 67.12M | 73.78M | 87.69M | 41.81M | 54.08M | 31.17M |
| Cash, Cash Equivalents and Short-Term Investments | 33.72M | 37.27M | 51.69M | 6.69M | 25.08M | 21.89M |
| Total Debt | 1.77M | 954.00K | 1.30M | 3.51M | 1.74M | 2.35M |
| Total Liabilities | 22.40M | 18.89M | 15.64M | 20.15M | 19.16M | 12.70M |
| Stockholders Equity | 44.72M | 54.89M | 72.04M | 21.66M | 34.92M | 18.47M |
Cash Flow | ||||||
| Free Cash Flow | -11.13M | -12.15M | -27.18M | -15.16M | -17.50M | -8.33M |
| Operating Cash Flow | -10.99M | -12.10M | -27.10M | -14.91M | -17.32M | -8.27M |
| Investing Cash Flow | 12.13M | 2.08M | -32.16M | -4.97M | -4.55M | 66.00K |
| Financing Cash Flow | 260.64K | 85.00K | 73.18M | 1.89M | 25.23M | -273.00K |
Freightos Limited Technical Analysis
Negative
2.34
Price Trends
2.98
Negative
3.17
Negative
2.80
Negative
Market Momentum
-0.21
Negative
33.03
Neutral
52.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRGO, the sentiment is Negative. The current price of 2.34 is below the 20-day moving average (MA) of 2.44, below the 50-day MA of 2.98, and below the 200-day MA of 2.80, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 33.03 is Neutral, neither overbought nor oversold. The STOCH value of 52.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRGO.
Freightos Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $311.86M | 21.41 | 6.94% | ― | 16.42% | 79.46% | |
68 Neutral | $2.88B | 26.92 | 6.31% | 1.14% | -5.79% | -1.57% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $274.13M | -24.35 | -3.26% | ― | ― | ― | |
51 Neutral | $1.70B | 24.49 | ― | 2.82% | -35.52% | ― | |
49 Neutral | $217.73M | -7.45 | -32.30% | ― | -13.66% | -746.83% | |
40 Underperform | $120.01M | -4.56 | -43.54% | ― | 27.55% | -42.84% |
* Industrials Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.