Freightos NASDAQ: CRGO reported record second-quarter revenue of $7.7 million and narrowed its adjusted EBITDA loss to $2 million, as the digital freight platform reiterated its goal of reaching adjusted EBITDA breakeven during the fourth quarter of 2026.
Speaking at a Sidoti conference, recently appointed Chief Executive Officer Pablo Pinillos said platform revenue increased 90% year over year, while solutions revenue declined 4% to $4.8 million. Pinillos said improving sales execution, conversion and implementation speed in the solutions business will be a major focus in the second half of the year.
“The quarter showed continued progress on profitability alongside areas where we still need to execute better,” Pinillos said.
Transaction activity and network expansion
Freightos operates software and a marketplace for freight pricing, quoting, booking and procurement. Its platform connects carriers, freight forwarders, importers and exporters, with the company positioning its offering as digital infrastructure for an industry that continues to rely heavily on emails, spreadsheets, phone calls and disconnected systems.
During the second quarter, Freightos facilitated 458,000 transactions, up 15% from the prior-year period. Pinillos said that, excluding routes involving Middle East origins, destinations or airspace, transaction growth was within the company’s longer-term target range of 20% to 30%.
The Middle East conflict disrupted freight corridors, constrained capacity and kept second-quarter air freight rates roughly 25% above pre-conflict levels, according to Pinillos. He said the impact to Freightos was primarily on transaction volumes in affected corridors, while revenue distribution was not materially affected.
The company processed about 1.8 million transactions over the past 12 months, representing approximately $1.5 billion in aggregate gross booking value. Freightos said it had 75 active carriers as of the second quarter, including all of the top 20 air carriers. Those carriers represent about 80% of global air cargo capacity, though Pinillos noted that capacity is still being added to the platform over time.
Freightos also announced the addition of Korean Air to its network, which Pinillos described as an important step in expanding airline participation in Asia.
Software adoption and ocean opportunity
Pinillos said Freightos sees its software offerings as a driver of marketplace liquidity. Customers using its solutions book roughly three to five times more transactions than non-solution customers, according to the company.
The company is seeking to expand beyond air cargo spot bookings into ocean freight and procurement workflows for contracted freight. Pinillos said ocean freight is a larger market but remains earlier in its digitalization process. He also noted that spot freight represents less than half of international freight activity, while much of the remainder is handled through annual contracts.
In the second quarter, Freightos enhanced its Freightos Procure product to bring more stages of the tender process into a unified environment. Pinillos cited an example involving a major U.K. enterprise shipper whose regional teams had been consolidating logistics requirements through emails and spreadsheets. The company said those teams can now enter requirements directly into Freightos Procure, allowing tender collection, carrier ranking and awards to occur within one platform.
Freightos has also unified its products under a single brand and is migrating them to a common technology foundation. Pinillos said the effort is intended to make it easier for customers to move among market intelligence, procurement, booking and shipment management workflows.
Outlook and profitability target
Freightos modestly raised its full-year outlook for transactions and gross booking value while narrowing its revenue guidance. The company expects third-quarter revenue of $7.7 million to $7.8 million and full-year revenue of $30.4 million to $31.0 million.
Pinillos said the outlook assumes that recovery in Middle East freight activity continues at approximately the pace seen in the second quarter and that air freight rates remain near current levels. He said second-quarter revenue benefited from cleared refund activity that is not expected to recur at the same level.
The CEO reaffirmed that Freightos expects to cross adjusted EBITDA breakeven at some point in the fourth quarter and exit 2026 at a breakeven run rate. The company expects to become cash generative by mid-2027.
During the question-and-answer session, Pinillos said about two-thirds of Freightos’ revenue is recurring, providing visibility into the remainder of the year, while transaction revenue has continued to perform in line with expectations. He also said Freightos had $21.4 million in cash and does not currently see a need for additional strategic investment to pursue its planned growth trajectory.
Looking ahead, Pinillos said Freightos plans to prioritize end-to-end workflow integration, a solutions-first approach and tighter investment discipline. He characterized the broader freight digitalization opportunity as significant, saying the company is focused on converting its network position into sustained profitable growth.
About Freightos (NASDAQ:CRGO)
Freightos, trading under the symbol CRGO on Nasdaq, operates a digital booking platform designed to streamline international freight logistics. The company's core offering, the Freightos Marketplace, allows shippers and freight forwarders to compare and book air, ocean and trucking services online, providing rate transparency and live booking capabilities. By aggregating quotes from a global network of carriers and forwarders, Freightos enables customers to secure competitive prices and manage bookings through a single interface.
In addition to its marketplace, Freightos offers a suite of SaaS solutions for logistics professionals.
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