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Freightos Limited (CRGO)
NASDAQ:CRGO
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Freightos Limited (CRGO) AI Stock Analysis

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CRGO

Freightos Limited

(NASDAQ:CRGO)

Rating:61Neutral
Price Target:
$4.00
▲(16.28% Upside)
Freightos Limited's stock score is driven by strong technical momentum and positive earnings call sentiment, despite financial challenges and valuation concerns. The company's growth prospects are promising, but profitability and cash flow issues need addressing.

Freightos Limited (CRGO) vs. SPDR S&P 500 ETF (SPY)

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 Limited generates revenue primarily through transaction fees charged on bookings made via its platform. The company earns money by taking a percentage of the freight costs for each booking processed through its marketplace. Additionally, Freightos may earn from providing premium services or software solutions to logistics companies and shippers, enhancing their operational efficiency and data analytics capabilities. Strategic partnerships with major freight companies and carriers also contribute to its revenue by expanding its network and service offerings.

Freightos Limited Earnings Call Summary

Earnings Call Date:Aug 18, 2025
(Q2-2025)
|
% Change Since: 5.85%|
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Freightos' strong growth in transactions and revenue, as well as strategic expansions in both air and ocean freight. However, challenges such as currency fluctuations, market rate pressures, and tariff impacts were noted. Despite these challenges, the overall business trajectory remains positive with continued growth and strategic developments.
Q2-2025 Updates
Positive Updates
Record Transactions
Freightos facilitated 397,000 transactions in Q2, marking a 26% increase compared to the same period last year and the 22nd consecutive quarter of record transactions.
Revenue Growth
Freightos reported a revenue of $7.4 million, marking a 31% increase year-over-year.
Platform Expansion
The platform's reach expanded with new buyers and notable carriers, including China Airlines and Air Europa, bringing the total to 75 carriers.
Solutions Segment Growth
Solutions revenue increased by 36% year-over-year, reflecting a proactive approach in product expansion and client relationship deepening.
Strategic Expansion in Ocean Freight
Freightos completed a comprehensive integration with a major ocean container carrier, enhancing rate and booking management.
Strong Buyer and Seller Engagement
Unique buyer users increased by 6% year-over-year to a total of 20,200, with growth in transactions per user.
Negative Updates
Currency Fluctuation Impact
Currency fluctuations negatively impacted profitability, with adjusted EBITDA affected by dollar depreciation against the euro and shekel.
Market Rate Pressure
The Freightos Air Index (FAX) global benchmark average for Q2 decreased 15% year-on-year despite volume gains.
Tariff Impact
High tariffs, such as the 145% China-U.S. tariff, led to a dip in platform transactions on certain lanes.
Extended Sales Cycles
Some deals with big shippers are taking longer to close due to current economic conditions.
Company Guidance
During the Freightos Q2 2025 earnings call, the company provided guidance for Q3 and the full year 2025. For the third quarter, Freightos expects transactions to range between 419,000 and 425,000, indicating a year-over-year growth of 24% to 25%. The gross booking value (GBV) is anticipated to be between $329 million and $333 million, reflecting a growth rate of 51% to 53% year-over-year. Revenue for Q3 is projected to be between $7.6 million and $7.7 million, representing a 23% to 25% increase compared to the previous year. For the full year 2025, Freightos has raised its transactions guidance, while revenue is now expected to be in the range of $29.5 million to $30 million. The company also aims to achieve a breakeven adjusted EBITDA by the end of 2026, despite foreign exchange headwinds impacting profitability.

Freightos Limited Financial Statement Overview

Summary
Freightos Limited shows strong revenue growth but struggles with profitability and cash flow management. Despite a strong equity base, the company faces significant operational and financial challenges, impacting its overall financial health.
Income Statement
42
Neutral
Freightos Limited shows a consistent revenue growth trend, with a 17.28% increase from 2023 to 2024. However, the company faces challenges in profitability, reflected in negative EBIT and EBITDA margins. Despite a positive gross profit margin of 65.17% in 2024, the net profit margin remains negative at -94.57%, indicating significant operational and financial difficulties.
Balance Sheet
55
Neutral
The company maintains a strong equity base with a debt-to-equity ratio of 0.02, suggesting modest leverage. The equity ratio is high at 74.38%, indicating financial stability. However, the return on equity is negative due to persistent losses, highlighting the need for effective cost management to enhance shareholder value.
Cash Flow
38
Negative
Freightos Limited faces negative free cash flow, although there is an improvement in operating cash flow from -27.1 million in 2023 to -12.1 million in 2024. The free cash flow to net income ratio remains unfavorable, indicating challenges in converting revenues into cash. The company must enhance cash flow management to support its growth and operational needs.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue23.79M20.28M19.09M11.12M8.51M
Gross Profit15.50M11.80M11.23M6.52M4.24M
EBITDA-19.86M-62.38M-20.56M-15.25M-12.47M
Net Income-22.49M-65.47M-24.70M-16.36M-14.17M
Balance Sheet
Total Assets73.78M87.69M41.81M54.08M31.17M
Cash, Cash Equivalents and Short-Term Investments37.27M51.69M6.69M25.08M21.89M
Total Debt954.00K1.30M3.51M1.74M2.35M
Total Liabilities18.89M15.64M20.15M19.16M12.70M
Stockholders Equity54.89M72.04M21.66M34.92M18.47M
Cash Flow
Free Cash Flow-12.15M-27.18M-15.16M-17.50M-8.33M
Operating Cash Flow-12.10M-27.10M-14.91M-17.32M-8.27M
Investing Cash Flow2.08M-32.16M-4.97M-4.55M66.00K
Financing Cash Flow85.00K73.18M1.89M25.23M-273.00K

Freightos Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.44
Price Trends
50DMA
2.70
Positive
100DMA
2.45
Positive
200DMA
2.62
Positive
Market Momentum
MACD
0.20
Positive
RSI
62.53
Neutral
STOCH
38.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRGO, the sentiment is Positive. The current price of 3.44 is above the 20-day moving average (MA) of 3.18, above the 50-day MA of 2.70, and above the 200-day MA of 2.62, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 62.53 is Neutral, neither overbought nor oversold. The STOCH value of 38.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRGO.

Freightos Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$85.77M7.819.67%24.75%5.52%
64
Neutral
$10.71B16.037.42%2.02%2.57%-16.39%
61
Neutral
$161.14M-23.18%49.48%80.17%
51
Neutral
$65.54M-790.22%5.14%-17.39%
51
Neutral
$5.68M75.9544.81%-11.88%11.17%
49
Neutral
$216.36M124.65-43.30%-10.97%-696.45%
$13.01M
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CRGO
Freightos Limited
3.44
1.78
107.23%
AIRT
Air T
24.25
1.51
6.64%
SFWL
Shengfeng Development Limited Class A
1.03
-0.24
-18.90%
GVH
Globavend Holdings Ltd.
4.61
-121.41
-96.34%
FLX
BingEx Ltd. ADR
3.38
-13.11
-79.50%
NCEW
New Century Logistics (BVI) Ltd.
0.62
-1.98
-76.15%
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.Date of analysis: Aug 19, 2025