CRGOW — Freightos Limited

Summary of Freightos Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Q4 Revenue: $7.4 million, up 12% year-over-year.
• Full Year Revenue: $29.5 million, up 24% year-over-year.
• Gross Booking Value (GBV): $357 million in Q4, up 27% year-over-year.
• Adjusted EBITDA: Negative $2.7 million in Q4 and negative $11.2 million for the full year.
• Gross Margin: Non-IFRS gross margin of 72.7% in Q4, down from 74.3% in Q4 2024; full year gross margin of 73.7%, up 130 basis points from 2024.
• Cash Position: $27.9 million at the end of Q4, with expectations to close 2026 with approximately $20 million.

2. Strategic Updates and Business Highlights

• The company is transitioning to a solutions-first strategy, focusing on enhancing its SaaS offerings across air, ocean, and procurement workflows.
• Freightos aims to achieve breakeven adjusted EBITDA by Q4 2026, emphasizing disciplined growth and operational efficiency.
• The company has integrated its solutions to improve customer workflows, particularly in procurement and tender management.
• Notable partnerships include two major global freight forwarders adopting Freightos Solutions for expanded services.

3. Forward Guidance and Outlook

• Q1 2026 Revenue Growth: Expected high single-digit growth.
• Full Year 2026 Revenue Growth: Projected between 6% to 12%, with higher growth rates anticipated for platform and solutions revenue.
• The company aims to maintain cost discipline while investing strategically to support growth.

4. Bad News, Challenges, or Points of Concern

• Solutions revenue growth was softer than anticipated due to prolonged sales cycles and budget constraints affecting enterprise customers.
• The company faces currency headwinds impacting adjusted EBITDA performance.
• There is a notable gap between transaction growth (20%) and revenue growth (6%-12%), attributed to the slower recovery in solutions revenue.
• The transition to a new CEO is ongoing, which introduces uncertainty regarding leadership and strategic execution.

5. Notable Q&A Insights

• Management emphasized a slight shift in go-to-market strategy, focusing on customer-led initiatives and prioritizing projects with better returns.
• The platform's take rate has shown minor fluctuations, which management attributes to quarterly noise rather than a fundamental decline.
• There is a strong belief in leveraging AI and automation for operational efficiencies, with a commitment to being disruptors in the market.
• The CEO transition was described as orderly, with the Board considering both internal and external candidates for the new CEO position.

Overall, Freightos is navigating a challenging environment while focusing on strategic growth and profitability, with a clear commitment to enhancing its solutions offerings.