Summary of Freightos Q4 2025 Earnings Call

1Key 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.

2Strategic 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.

3Forward 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.

4Bad 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.

5Notable 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.