Freightos Limited (CRGO) Q4 2025 Earnings Call Transcript
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Overview
The earnings call reveals mixed signals: strong revenue growth and improved liquidity are positive, but challenges in sales productivity, a slight decline in gross margin, and continued negative EBITDA weigh negatively. The Q&A session highlights a cautious approach with no drastic strategy changes and a focus on operational efficiency. Despite optimistic guidance and a focus on breakeven, uncertainties in execution and market conditions temper the outlook. These factors suggest a neutral stock price movement over the next two weeks.
Key Financial Performance
Full year 2025 revenue $29.5 million, up 24% year-over-year. Growth attributed to platform revenue increasing by 18% and solutions revenue rising by 27%.
Q4 2025 revenue $7.4 million, up 12% year-over-year. Platform revenue increased by 13% and solutions revenue by 12%.
Q4 2025 transactions 445,000 bookings, up 27% year-over-year. Growth driven by increased utilization, expanded capacity distribution, and organic growth from existing carriers.
Gross booking value (GBV) in Q4 2025 $357 million, up 27% year-over-year. Growth reflects ecosystem liquidity and platform relevance.
Active carrier network in Q4 2025 77 carriers, up from 67 in Q4 2024. Growth attributed to new integrations and expanded carrier capacity.
Non-IFRS gross margin for Q4 2025 72.7%, down from 74.3% in Q4 2024. Decline due to product mix and foreign exchange effects.
Non-IFRS gross margin for full year 2025 73.7%, up 130 basis points from 2024. Increase due to operating leverage and customer service automation.
Adjusted EBITDA for Q4 2025 Negative $2.7 million. Performance impacted by currency headwinds.
Adjusted EBITDA for full year 2025 Negative $11.2 million. Currency headwinds masked operational gains.
Cash and short-term bank deposits at end of Q4 2025 $27.9 million, slightly better than expectations.
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Operating Highlights
Ocean rate and quote solution: Launched towards the end of 2025, aimed at becoming a daily operating system for forwarders. Real-time bookings expected to begin in 2026 and become meaningful by 2028.
Procure and Terminal integration: Embedded Terminal benchmark directly into Procure, allowing customers to compare carrier bids against independent market benchmarks within the same tender workflow.
AI-enabled automation: Increasingly leveraged to support decision-making and execution within workflows, enhancing reliability and control.
Air bookings market share: Freightos' global share of air bookings is estimated in the low to mid-teens. Focus on adding contract rates and deepening penetration with large forwarders.
Ocean and tendering markets: Both represent markets structurally larger than air, significantly increasing the long-term upside of Freightos' SaaS to booking model.
Transaction growth: Achieved 445,000 bookings in Q4 2025, up 27% year-over-year. Active carrier network at a record 77 carriers, integrated with airlines representing 80% of global carrier capacity.
Revenue growth: Full year 2025 revenue grew 24% to $29.5 million. Platform revenue grew 18%, and solutions revenue grew 27% from 2024.
Cost discipline: Focused on achieving adjusted EBITDA breakeven by Q4 2026 through operating leverage and structural cost discipline.
Solutions-first strategy: Concentrating efforts on solutions adoption and product quality to improve sustainable revenue and long-term transaction growth.
Expansion to ocean and tendering: Extending the proven air cargo model to ocean and tendering, which are larger markets, to drive adoption and transaction flow.
Leadership transition: Transitioning from a founder-led to a professional CEO-led organization, with a new CEO expected to be appointed before the next earnings release.
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Risk or Challenges
Global macro and trade environment: Freightos has faced challenges due to a volatile global macro and trade environment, which could impact transaction growth and financial performance.
CEO transition: The transition from a founder-led to a professional CEO-led organization introduces potential risks related to leadership changes and operational continuity.
Solutions momentum: Enterprise sales cycles increased in 2025 due to budget cautions, leading to softer-than-expected solutions momentum and delayed revenue growth.
Currency headwinds: A stronger euro and Israeli shekel versus the U.S. dollar negatively impacted adjusted EBITDA, masking operational gains.
Cost discipline and operating efficiency: The company is focusing on cost discipline and operating efficiency to achieve breakeven, but this could limit flexibility for growth investments.
Ocean and tendering expansion: The expansion into ocean and tendering markets is in early stages, with meaningful transaction flow not expected until 2028, posing risks to near-term revenue growth.
Sales and go-to-market execution: Challenges in sales productivity, customer acquisition, and renewals have been identified, requiring a revamped approach to improve performance.
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Guidance & Outlook
2026 Priorities: The company is prioritizing profitability and disciplined growth, with a commitment to reaching breakeven adjusted EBITDA by Q4 2026. Efforts will focus on go-to-market execution, solution-first focus, cost discipline, and operating efficiency.
Revenue Growth: For Q1 2026, the company expects high single-digit revenue growth. For the full year 2026, revenue growth is projected to be between 6% and 12%, with higher growth rates for platform and solutions.
Transaction and GBV Growth: Transactions and GBV growth for Q1 and full year 2026 are expected to remain strong but at the low end of the long-term model.
Cash Balance: The company expects to end 2026 with a cash balance of approximately $20 million.
Long-Term Growth (2027 and Beyond): The company aims to build on operational discipline established in 2026 to accelerate profitable growth from a stronger financial and strategic foundation, including a solid cash balance.
Ocean and Tendering Expansion: Ocean booking flows are expected to begin in 2026 and become meaningful by 2028. Tendering and procurement solutions will be strengthened and scaled in 2026, with the objective of connecting awarded tenders directly into execution.
Air Market Leadership: In 2026, the focus will be on adding contract rates, deepening penetration with large forwarders, and selectively expanding monetization as usage scales.
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Shareholder Return Plan
The selected topic was not discussed during the call.
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Key Q&A
Q:Has there been a fundamental change in the go-to-market strategy compared to a year ago?
A:The go-to-market change is not drastic but slight. The company is focusing on being customer-led, driving solution-first workflows across air, ocean, and procurement with tighter integrations and network effects. They are prioritizing projects with better returns and deprioritizing less impactful ones.
Q:Have there been any changes in headcount or operational strategies to pursue a more selective client strategy?
A:The company is focusing on fewer Ideal Customer Profiles (ICP), higher Initial Contract Values (ICV), and overall execution improvements in the go-to-market strategy.
Q:Why did the platform take rate decrease slightly in the quarter?
A:The decrease is attributed to quarterly noise. The take rate from GBV is not directly aligned with revenue as most revenue comes from fixed fees on transactions. The take rate has not decreased in any revenue lines.
Q:How is the company thinking about deploying large language models (LLMs) and AI tools?
A:The company is driving an AI agentic strategy, leveraging its API-driven architecture to integrate modularly with TMS, ERPs, and other elements. This aims to achieve operational efficiencies and productivity improvements in the long term.
Q:What are the plans to improve unit economics over time?
A:The company plans to prioritize projects with better returns from a CAC perspective, short-term revenue perspective, and network expansion capabilities.
Q:Why is the company focusing on a solutions-first approach despite challenges in building it out?
A:The solutions-first approach is supported by historical data showing transaction growth as a lagging indicator of SaaS value. The company is expanding into ocean and procurement solutions, integrating air and ocean capabilities, and leveraging customer relationships to support future growth.
Q:Is the company still confident in achieving EBITDA breakeven in 2026?
A:The company is focused on cost discipline and operating efficiency to achieve adjusted EBITDA breakeven by Q4 this year.
Q:Why is there a gap between transactions and GBV growth (20%) and revenue guidance (6%-12%) for 2026?
A:The gap is due to the solutions business, which represents 2/3 of total revenue, being a recurring revenue model that requires time to build. Market volatility and budget constraints have delayed sales cycles, impacting revenue growth.
Q:Why did Dr. Schreiber step down from the Board?
A:Dr. Schreiber's decision to step down was unplanned and entirely his own. The company respects his decision and remains committed to his long-term vision.
Q:When does the company expect to achieve GAAP profitability?
A:The company aims to reach adjusted EBITDA breakeven by the end of the year, with cash flow profitability expected 1-2 quarters later. GAAP profitability will be assessed after that.
Q:Review of Unclear Management Responses
A:Management avoided providing a direct timeline for achieving GAAP profitability, stating only that it would be assessed after reaching adjusted EBITDA breakeven and cash flow profitability.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
CEO
Pablo
Solutions
adoption
air
area
booking
carrier
contract
customer
cycle
discipline
driver
ecosystem
end workflow
enterprise
environment
expansion
focus
foundation
freight
integration
intelligence
layer
model
monetization
network
objective
ocean
offering
order
platform
procurement
product
rate
sale
scale
shipper forwarders
solution value
tender
tool
transaction
workflow solution
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CRGO Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
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Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
