Summary of CRGO Q2 2026 Earnings Call

1Key Financial Results and Metrics

Total Revenue: $7.7 million, up 3% year-over-year and exceeding expectations.

Platform Revenue: $2.9 million, a 19% increase compared to the previous year.

Solutions Revenue: $4.8 million, down 4% year-over-year.

Adjusted EBITDA: Loss of $2 million, an improvement due to cost discipline.

Gross Margin: Non-IFRS gross margin increased to 74.1% from 73.5% in Q2 2025.

Cash Position: Ended the quarter with $21.4 million in cash and short-term deposits, down from $23.5 million at the end of Q1 2026.

2Strategic Updates and Business Highlights

Operational Focus: Emphasis on disciplined execution, tighter prioritization, and building a foundation for long-term growth.

Product Development: Continued progress in enhancing workflow solutions for both shippers and freight forwarders, with a unified approach under the "ONE Freightos" branding.

Carrier Network Expansion: Addition of Korean Air to the network, contributing to a total of 75 active carriers.

Transaction Growth: 458,000 transactions processed, a 15% increase year-over-year, with gross booking value reaching $422 million, up 33% from Q2 2025.

3Forward Guidance and Outlook

Q3 Revenue Guidance: Expected between $7.7 million and $7.8 million.

Full Year Revenue Guidance: Revised to $30.4 million to $31.0 million, reflecting lower expectations for Solutions revenue.

Adjusted EBITDA Outlook: Anticipated loss of $1.3 million to $1.2 million in Q3, with a target to reach breakeven in Q4 2026.

Long-Term Expectations: Aiming for cash generation by mid-2027.

4Challenges and Points of Concern

Solutions Revenue Decline: The 4% drop in Solutions revenue indicates execution gaps and pricing pressure on renewals.

Market Volatility: Ongoing uncertainty in the market is affecting customer spending and decision-making.

Active Carrier Count Fluctuation: Decrease in active carriers from 79 in Q1 to 75 in Q2, indicating potential challenges in maintaining carrier engagement.

Dependence on One-Time Revenue: Q2 outperformance was significantly aided by Clearit refund claims, which are not expected to recur at the same level.

5Notable Q&A Insights

Execution Improvement: Management acknowledged the need for better execution in converting pipeline strength into bookings, particularly in a volatile market.

Customer Engagement: Existing customers are increasing transaction volumes, indicating strong platform value despite a lower increase in unique buyer users.

Cash Burn: Expected to align closely with adjusted EBITDA losses, with a forecasted cash burn of approximately $2 million for the remainder of the year.

Revenue Guidance Adjustments: The unchanged midpoint of full-year revenue guidance is primarily due to weaker expectations in Solutions, despite strong platform KPIs in Q2. Overall, while Freightos demonstrated strong revenue growth and improved operational metrics in Q2 2026, challenges in Solutions revenue and market volatility present significant headwinds for the second half of the year.