Company Transition - Founder and CEO Zvi Schreiber will step down from his role as CEO on January 31, 2026, to pursue other entrepreneurial interests while remaining a non-executive board member [1] - CFO Pablo Pinillos has been appointed as Interim CEO during the transition period, and the board is conducting a comprehensive search for a new CEO [2] Company Performance and Strategy - Freightos is experiencing strong momentum, with recent enterprise agreements with multiple top ten global freight forwarders and an expansion into ocean freight [3] - The company has surpassed an annualized run rate of 1.7 million bookings and is handling over a billion dollars in annual Gross Booking Value, indicating significant growth in connecting freight buyers and sellers globally [3] Industry Position - Freightos is recognized as the leading vendor-neutral global freight booking platform, facilitating connections among airlines, ocean carriers, freight forwarders, and over ten thousand importers and exporters [4] - The platform digitizes the trillion-dollar international freight industry, offering a suite of software solutions for pricing, quoting, booking, shipment management, and payments [5]

Group 1 - The 2025 Annual General Meeting of Freightos Limited was called to order by the CEO and Chairman, Zvi Schreiber [2] - Michael Oberlander, the General Counsel, confirmed that the Board of Directors authorized the Annual General Meeting and provided details about the mailing of the proxy materials to shareholders [3] - A certified list of ordinary shareholders as of the record date was compiled, showing a total of 51,314,432 ordinary shares issued and outstanding [4]

Summary of Freightos Conference Call Company Overview - **Company**: Freightos - **Industry**: International Freight and Logistics - **Market Size**: The international freight market is approximately $600 billion annually, with $150 billion in air cargo and $350 billion in ocean cargo [6][20] Core Insights and Arguments - **Digital Transformation**: Freightos aims to digitize the international freight industry, which is largely offline, using a platform that connects carriers, freight forwarders, and shippers [4][5] - **Market Opportunity**: Over 90% of international freight bookings are still offline, indicating a significant opportunity for digital solutions [6][20] - **Platform Structure**: The platform operates as a three-sided network, facilitating real-time pricing, instant booking, and efficient procurement across the supply chain [5][12] - **Growth Metrics**: Freightos reported over 1.3 million bookings in 2024, with a run rate of over 1.5 million bookings for the current year [9][21] - **Revenue Streams**: Revenue is divided into solutions revenue (SaaS and data) and platform revenue (transaction fees), with two-thirds currently from solutions revenue [16][17] Financial Performance - **Revenue Growth**: Expected revenue for 2025 is projected between $29.5 billion and $29.6 billion, with a year-on-year growth of 20%-22% [16][19] - **Gross Margin**: Non-IFRS gross margin is expected to grow from 73%-75%, while IFRS gross margin is projected to increase from 65%-69% [17][24] - **Profitability Outlook**: Freightos anticipates reaching profitability by Q4 of the next year, with a current cash position of $31 million [18][20] Competitive Landscape - **Market Position**: Freightos maintains a higher market share in the forwarding sector, with a unique position as it combines SaaS and transaction-based services [29][30] - **Competitive Advantage**: The company has built a robust network over 13 years, providing trust and reliability in its data and services [30] Additional Insights - **Cohort Retention**: Forwarders typically see their bookings grow 3-5 times over the first two years on the platform, indicating strong customer retention and value [13] - **Impact of Tariffs**: Tariffs have increased demand for Freightos' services as companies seek visibility and efficiency in navigating supply chain disruptions [31][32] - **Capital Structure**: Freightos has a clean balance sheet with no debt, operating primarily on an OpEx model [33] Conclusion - **Vision**: Freightos aims to become the indispensable digital backbone of global trade, leveraging its platform to drive efficiency and transparency in the international freight industry [21][20]

Core Insights - Freightos has integrated Jambojet Cargo into its WebCargo platform, enhancing digital booking capabilities for freight forwarders across East Africa [1][2][3] - Jambojet Cargo operates nine key routes connecting major economic centers in Kenya and Tanzania, facilitating the transport of various goods [2][3] - The partnership aims to improve visibility, reduce manual coordination, and ensure faster service for freight forwarders [2][3] Company Overview - Freightos is a leading global freight booking and payment platform, facilitating connections between airlines, ocean carriers, freight forwarders, and importers/exporters [4][5] - The platform digitizes the international freight industry, offering a suite of software solutions for pricing, quoting, booking, shipment management, and payments [5][6] - Freightos processes over 1.6 million transactions annually, showcasing its significant market presence [2] Market Impact - The integration of Jambojet Cargo expands Freightos' reach in Africa's logistics market, supporting regional trade and supply chains [3] - Digitalization is transforming air cargo operations in Africa, with Jambojet positioning itself as a leader in this shift [3] - The partnership is expected to strengthen trade links between African markets and the global economy [3]

Core Viewpoint - Freightos Limited, a digital booking and payment platform for the international freight industry, reported a challenging Q3 2025 with an EPS loss that fell short of estimates, despite a notable year-over-year revenue increase [2][3][6] Financial Performance - The company reported a Q3 EPS of -$0.10, missing the estimated EPS of -$0.07 and the Zacks Consensus Estimate of a $0.08 loss, resulting in a 25% negative surprise [2][6] - Revenue for the quarter was $7.67 million, slightly above the estimated $7.64 million, but 0.36% below the Zacks Consensus Estimate, representing a 24% increase from $6.18 million in the same quarter last year [3][6] Operational Highlights - Freightos achieved an annualized run rate of over 1.7 million transactions and a gross booking value (GBV) of $1.3 billion, indicating strong operational performance [4] - The CEO attributed growth to the industry's shift towards digital solutions amid volatile freight rates, with a focus on a multimodal strategy gaining traction [4] Financial Ratios - The company has a negative price-to-earnings (P/E) ratio of -7.73 and an earnings yield of -12.94%, indicating financial challenges [5] - Despite these challenges, Freightos maintains a low debt-to-equity ratio of 0.04 and a strong current ratio of 2.15, reflecting a solid ability to cover short-term liabilities [5][6]

Core Insights - Freightos is transitioning from a booking marketplace to a full-stack freight-commerce platform, with embedded payments as a key growth driver [1][12] - The company is experiencing strong platform growth, with record transactions and a significant increase in gross booking value (GBV) [2][5] - Despite growth, Freightos faces profitability challenges and increasing competition from both traditional and digital logistics players [1][8] Company Performance - Freightos reported a 54% year-over-year increase in gross booking value (GBV) to $336 million [5] - The number of transactions on the platform reached a record 429,000, marking the 23rd consecutive quarter of record transactions, with a 27% year-over-year growth [5] - The company is seeing a shift in enterprise customers towards multimodal solutions, moving from air-only to global multimodal deployments [4] Market Context - The global freight forwarding market is valued in the hundreds of billions of dollars, yet many booking and payment workflows remain offline and manual [6] - Ongoing trade volatility has increased demand for agile digital solutions, although conversion from legacy practices remains a challenge [7] - Competition is intensifying as larger players invest in digital offerings and pure-play digital logistics platforms raise capital [8] Strategic Initiatives - Freightos aims to enhance its platform by embedding payments, which could lead to increased customer loyalty and revenue growth [11] - The strategy includes treating payments as a core feature rather than a side offering, aiming to create a comprehensive ecosystem for booking, settlement, and financing [12] - By owning the payment layer, Freightos can collect valuable data that can drive analytics and potentially lead to additional services [13]

Financial Data and Key Metrics Changes - Revenue for Q3 was $7.7 million, up 24% year-over-year [14] - Platform revenue was $2.6 million, up 15% year-over-year, while solutions revenue was $5.1 million, up 30% year-over-year [14] - Gross margin improved from 65% a year ago to 69.1% in Q3, with non-IFRS gross margin rising from 72.7% to 74.8% [16] - Adjusted EBITDA improved to -$2.6 million in Q3 2025 from -$2.8 million in Q3 last year [17] - Cash and short-term bank deposits at the end of the quarter were $30.6 million [18] Business Line Data and Key Metrics Changes - The company processed 429,000 transactions in Q3, up 27% year-on-year, marking the 23rd consecutive quarter of record transactions [4] - Unique buyer users were approximately 20,600, and the number of carriers with more than five bookings increased to 77 [4] - Solutions revenue growth was 30% year-on-year, but anticipated stronger growth was impacted by longer sales cycles due to tariffs and macroeconomic conditions [9][19] Market Data and Key Metrics Changes - Air cargo volumes increased by 4% compared to Q3 2024, despite headwinds from tariffs and changes to U.S. import regulations [5] - Average global air cargo rates decreased by 6% compared to Q3 last year [5] - The overall freight market is characterized by volatility and nervousness due to tariffs and macroeconomic uncertainty [6] Company Strategy and Development Direction - The company is focused on expanding airline coverage in Asia and expects further global expansion as smaller carriers leverage digital channels [5] - A strategic partnership with Visa and Transcard was announced, aimed at providing modern financing solutions for freight forwarders and importers/exporters [7] - The launch of the new multimodal rate management and quoting SaaS product, WebCargo Rate & Quote Ocean, is expected to enhance service offerings [8] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is less uncertainty than earlier in the year, tariffs still create friction for imports to the U.S. [30] - The company anticipates meaningful revenue contribution from ocean bookings in the midterm, with significant growth expected by 2028 [41][44] - The focus remains on growing revenue and margins while maintaining operational efficiency to reach adjusted EBITDA break-even by Q4 2026 [18][21] Other Important Information - The company closed the quarter with a cash burn of about $10 million for 2025, compared to $15 million in 2024 [21] - The revenue mix has shifted, with platform revenue performing slightly better than initially expected, impacting overall profitability [20] Q&A Session Summary Question: Can you discuss the contribution margin and growth factors? - Management acknowledged a balance between growth and achieving break-even EBITDA, emphasizing efficiency improvements and potential AI-driven efficiencies [25][26] Question: How is tariff volatility affecting shipping volumes? - Management indicated that while there is some stabilization, uncertainty and higher tariffs still create friction for imports, impacting customer behavior [30][31] Question: Can you elaborate on market penetration and growth opportunities? - Management highlighted high penetration in Europe, moderate growth in the U.S., and low penetration in Asia, indicating significant growth potential in the latter [36] Question: What impact will the Visa partnership have? - The partnership is expected to enhance payment solutions, potentially increasing average take rates with airlines [40] Question: When will ocean bookings start contributing significantly to revenue? - Significant revenue from ocean bookings is not expected until 2028, with some contributions anticipated from solutions in 2026 [44][45] Question: What is the proportion of recurring versus non-recurring revenue in solutions? - The majority of solutions revenue is recurring, with non-recurring revenue not exceeding 5% [57][58]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $7.7 million, representing a 24% year-over-year increase [13] - Platform revenue was $2.6 million, up 15% year-over-year, while solutions revenue reached $5.1 million, up 30% year-over-year [13] - Gross margin improved from 65% a year ago to 69.1% in Q3 2025, with non-IFRS gross margin rising from 72.7% to 74.8% [16] - Adjusted EBITDA improved to negative $2.6 million in Q3 2025 compared to negative $2.8 million in Q3 2024 [17] - Cash and short-term bank deposits at the end of the quarter were $30.6 million, supporting continued investments [18] Business Line Data and Key Metrics Changes - The company processed 429,000 transactions in Q3, a 27% increase year-on-year, marking the 23rd consecutive quarter of record transactions [4] - Unique buyer users were approximately 20,600, and the number of carriers with more than five bookings increased to 77 [4] - Solutions revenue growth was anticipated to be stronger than the 30% year-on-year growth delivered, impacted by longer sales cycles due to tariffs and macroeconomic conditions [9] Market Data and Key Metrics Changes - Air cargo volumes increased by 4% compared to Q3 2024, despite challenges in trans-Pacific e-commerce volumes [5] - Average global air cargo rates decreased by 6% compared to Q3 last year, reflecting market volatility [5] - The overall global trade is up on the year, but trade with the U.S. has seen a slight decline [30] Company Strategy and Development Direction - The company is focused on expanding airline coverage in Asia and enhancing multimodal capabilities [4][6] - A strategic partnership with Visa and TransCard was announced to provide modern financing solutions for freight forwarders and importers/exporters [6][7] - The launch of the new multimodal rate management and quoting SaaS product, WebCargo Rate & Quote Ocean, aims to unify air and ocean quoting [8] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is less uncertainty than earlier in the year, tariffs and macroeconomic conditions still create friction for imports to the U.S. [28] - The company anticipates meaningful revenue contributions from ocean bookings in the midterm, with significant growth expected by 2028 [44][45] - The focus remains on achieving adjusted EBITDA break-even by Q4 2026, with continued revenue growth and disciplined cost management [18][20] Other Important Information - The company closed the quarter with a cash burn of about $10 million for 2025, down from $15 million in 2024 [20] - The company expects to end the year with cash and equivalents of approximately $27 million [20] Q&A Session Summary Question: Can you discuss the contribution margin and growth opportunities? - Management acknowledged the balance between growth and achieving break-even EBITDA, emphasizing efficiency improvements and potential AI-driven efficiencies [25][26] Question: How is tariff volatility impacting shipping volumes? - Management indicated that while there is some stabilization, uncertainty and higher tariffs still create friction for imports, affecting the ability to secure large contracts [29][31] Question: What is the current penetration of the platform in various markets? - Management stated that penetration varies by geography, with high penetration in Europe, moderate in the U.S., and low in Asia [35] Question: How will the Visa partnership impact opportunities? - The partnership is expected to enhance payment solutions, potentially increasing average take rates with airlines [40] Question: When will ocean bookings start contributing significantly to revenue? - Significant revenue from ocean bookings is not expected until 2028, with minor contributions anticipated in 2027 [44][45] Question: What is the proportion of recurring versus non-recurring revenue in solutions? - Management indicated that a very large majority of solutions revenue is recurring, with non-recurring revenue not exceeding 5% [59][60]

Core Insights - Freightos Limited reported a quarterly loss of $0.1 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.08, marking an earnings surprise of -25.00% [1] - The company generated revenues of $7.67 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 0.36%, but showing an increase from $6.18 million year-over-year [2] - Freightos Limited's stock has increased by approximately 24.9% since the beginning of the year, outperforming the S&P 500's gain of 14.5% [3] Financial Performance - Over the last four quarters, Freightos Limited has surpassed consensus EPS estimates only once [2] - The current consensus EPS estimate for the upcoming quarter is -$0.08 on revenues of $7.7 million, and for the current fiscal year, it is -$0.33 on revenues of $29.8 million [7] Market Outlook - The company's earnings outlook will be crucial for future stock performance, with mixed trends in estimate revisions noted prior to the earnings release [4][6] - The Zacks Rank for Freightos Limited is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Financial Transaction Services industry, to which Freightos Limited belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, Nayax, is expected to report significant earnings growth, with a projected EPS of $0.21, reflecting a year-over-year change of +950% [9]

Q3 2025 Highlights - Transactions reached 429,000, a 27% year-over-year growth[19] - Revenue hit a record $7.7 million, representing a 24% year-over-year increase[19] - The platform attracted 20,600 unique buyer users[19] Financial Performance & Guidance - Q4 2025 transaction guidance is 438,000-444,000, a 29%-31% year-over-year growth[62] - Q4 2025 revenue guidance is $7.4 million - $7.5 million, a 20%-22% year-over-year growth[62] - FY 2025 transaction guidance is 1,636,000-1,641,000, a 26% year-over-year growth[62] - FY 2025 revenue guidance is $29.5 million - $29.6 million, a 24% year-over-year growth[62] - Adjusted EBITDA for Q4 2025 is projected to be a loss of $2.7 million - $2.6 million[62] - Adjusted EBITDA for FY 2025 is projected to be a loss of $11.2 million - $11.1 million[62] Platform & Network Growth - Increased transaction volume from forwarder cohort by 17% year-over-year[44] - Increased transaction volume from carrier cohort by 28% year-over-year[44] - Non-IFRS gross margin reached 74.8% for the three months ended September 30, 2025[68]