Q2 2025 Highlights - Transactions reached 397,000, a 26% year-over-year growth[26] - The company achieved record revenue of $74 million, a 31% year-over-year increase[26] - The platform has expanded to include 75 carriers[26] Financial Performance - Q2 2025 revenue was $74 million, exceeding the guidance of $70 million - $71 million[55] - Adjusted EBITDA for Q2 2025 was $(29) million, aligning with the guidance of $(29) million - $(28) million[55] - Non-IFRS gross margin reached 735% for Q2 2025, compared to 720% in Q2 2024[75] Guidance - Q3 2025 transaction guidance is 419,000 - 425,000, representing a 24%-25% year-over-year growth[69] - Q3 2025 revenue is projected to be $76 million - $77 million, a 23%-25% year-over-year increase[69] - Full year 2025 revenue guidance is $295 million - $300 million, reflecting a 24%-26% year-over-year growth[69] - Full year 2025 Adjusted EBITDA is expected to be $(109) million - $(105) million[69]

[Company Overview and Q2 2025 Highlights](index=1&type=section&id=1.%20Company%20Overview%20and%20Q2%202025%20Highlights) Freightos achieved strong Q2 2025 financial and operational growth, with **31% revenue increase** and improved key metrics [Introduction and Management Commentary](index=1&type=section&id=1.1.%20Introduction%20and%20Management%20Commentary) Freightos reported robust Q2 2025 results with **31% revenue growth**, revised outlook, and targets breakeven Adjusted EBITDA - CEO Zvi Schreiber noted "robust second-quarter results with a **31% year-over-year revenue increase**" and an upward revision of the full-year Transaction outlook, reflecting confidence in sustained growth[2](index=2&type=chunk) - CFO Pablo Pinillos stated that Q2 performance surpassed expectations with strong revenue growth, and Adjusted EBITDA was in line with expectations, despite currency fluctuations[2](index=2&type=chunk) - Freightos remains committed to achieving **breakeven Adjusted EBITDA by the end of 2026**[2](index=2&type=chunk) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=1.2.%20Second%20Quarter%202025%20Financial%20Highlights) Freightos achieved **$7.4 million revenue** in Q2 2025 (**+31% YoY**), with improved IFRS loss and Adjusted EBITDA Q2 2025 Financial Highlights | Metric | Q2 2025 ($ million) | Q2 2024 ($ million) | YoY Change | | :-------------- | :---------- | :---------- | :--------- | | Revenue | $7.4 million | $5.7 million | +31% | | IFRS Loss | $(4.3) million | $(5.3) million | Improved | | Adjusted EBITDA | $(2.9) million | $(3.1) million | Improved | [Recent Business Highlights](index=2&type=section&id=1.3.%20Recent%20Business%20Highlights) Key operational metrics grew significantly, with **397k transactions** (**+26% YoY**), **GBV up 56%**, and **75 carriers** on platform Q2 2025 Key Business Metrics Growth | Metric | Q2 2025 | Q2 2024 | YoY Change | | :---------------------- | :-------- | :-------- | :--------- | | IFRS Gross Margin | 67.1% | 64.9% | +2.2 percentage points | | Non-IFRS Gross Margin | 73.5% | 72.0% | +1.5 percentage points | | Cash & Cash Equivalents ($ million) | $34.1 million | N/A | N/A | | Transactions (thousands) | 397k | N/A | +26% | | Unique Buyer Users (approx) | ~20,200 | N/A | +6% | | Gross Booking Value (GBV) ($ million) | $317 million | N/A | +56% | | Total Platform Revenue ($ million) | $2.5 million | N/A | +23% | | Solutions Revenue ($ million) | $4.9 million | N/A | +36% | - The number of carriers selling on the platform increased from **71 in Q1 2025 to 75 in Q2 2025**, with additions including China Airlines and Air Europa[4](index=4&type=chunk) - Revenue growth was primarily contributed by the addition of Shipsta and strong organic performance from SaaS solutions and customs clearance services[4](index=4&type=chunk) [Financial Outlook](index=3&type=section&id=2.%20Financial%20Outlook) Freightos provided updated Q3 and full-year 2025 guidance, projecting continued growth in key metrics and improved Adjusted EBITDA [Q3 2025 and Full-Year 2025 Guidance](index=3&type=section&id=2.1.%20Q3%202025%20and%20Full-Year%202025%20Guidance) Freightos provided updated Q3 and FY2025 guidance, projecting continued growth in key metrics and improved Adjusted EBITDA Management Expectations for Q3 2025 and FY 2025 | Metric | Q3 2025 Range | YoY Growth (Q3) | FY 2025 Range | YoY Growth (FY) | | :---------------- | :------------ | :-------------- | :-------------- | :-------------- | | Transactions (thousands) | 419 - 425 | 24% - 25% | 1,607 - 1,684 | 23% - 29% | | GBV ($ million) | 329 - 333 | 51% - 53% | 1,251 - 1,266 | 40% - 42% | | Revenue ($ million) | 7.6 - 7.7 | 23% - 25% | 29.5 - 30.0 | 24% - 26% | | Adjusted EBITDA ($ million) | (2.6) - (2.5) | N/A | (10.9) - (10.5) | N/A | [About Freightos](index=6&type=section&id=3.%20About%20Freightos) Freightos is a leading global freight booking platform, digitizing the industry, with a glossary of key operational and financial terms [Company Description](index=7&type=section&id=3.1.%20Company%20Description) Freightos is a leading vendor-neutral global freight booking platform, digitizing the international freight industry - Freightos (Nasdaq: CRGO) is the leading vendor-neutral global freight booking platform, connecting airlines, ocean carriers, thousands of freight forwarders, and over ten thousand importers and exporters to make world trade efficient[14](index=14&type=chunk) - The platform offers a suite of software solutions for pricing, quoting, booking, shipment management, and payments, including Freightos Enterprise, Freightos Marketplace, WebCargo, 7LFreight, WebCargo for Airlines, and Clearit (a digital customs broker)[15](index=15&type=chunk) - Freightos provides real-time industry data via Freightos Terminal, which includes the Freightos Air Index (FAX) and Freightos Baltic Index (FBX), with FBX futures traded on CME and SGX[16](index=16&type=chunk) [Glossary of Key Terms](index=6&type=section&id=3.2.%20Glossary%20of%20Key%20Terms) This section defines key operational and financial terms used in the report for clarity and consistent understanding - **Transactions:** Number of bookings for freight services and related services placed by Buyers across the Freightos platform[13](index=13&type=chunk) - **Carriers:** Number of unique air and ocean carriers that have been sellers of transactions, counted when more than five bookings were placed with them over a quarter[13](index=13&type=chunk) - **Unique buyer users:** Number of individual users placing bookings, typically based on unique email logins, monitored as a more useful metric than buyer businesses[13](index=13&type=chunk) - **GBV (Gross Booking Value):** Total monetary value of freight and related services contracted on the Freightos platform, plus related fees and pass-through payments, reflecting the platform's scale[13](index=13&type=chunk) - **Adjusted EBITDA:** Loss before income taxes, finance income/expense, share-based compensation, depreciation/amortization, operating expense settled by shares, and change in fair value of warrants[17](index=17&type=chunk) - **Platform revenue:** Fees charged to buyers and sellers for transactions executed on the Freightos platform, typically structured as a percentage of booking value or a flat fee[17](index=17&type=chunk) - **Solutions revenue:** Primarily subscription-based SaaS and data, priced per user or per site, with additional non-recurring revenue from ancillary services[17](index=17&type=chunk) [Consolidated Financial Statements](index=9&type=section&id=4.%20Consolidated%20Financial%20Statements) This section presents Freightos' consolidated balance sheets, statements of operations, and cash flows for Q2 2025 and prior periods [Consolidated Balance Sheets](index=9&type=section&id=4.1.%20Consolidated%20Balance%20Sheets) Freightos reported total assets of **$71.6 million** as of June 30, 2025, with decreased current assets and increased cash Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | | :------------------------ | :------------ | :---------------- | :--------- | | Total Assets | $71,635 | $73,779 | $(2,144) | | Cash and cash equivalents | $19,981 | $10,118 | +$9,863 | | Short-term bank deposit | $14,168 | $27,153 | $(12,985) | | Total Liabilities | $22,870 | $18,891 | +$3,979 | | Total Equity | $48,765 | $54,888 | $(6,123) | [Consolidated Statements of Operations](index=10&type=section&id=4.2.%20Consolidated%20Statements%20of%20Operations) Q2 2025 revenue reached **$7.4 million** (**+31% YoY**), with increased gross profit and reduced IFRS loss Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YoY Change | H1 2025 | H1 2024 | YoY Change (H1) | | :------------------------------- | :--------- | :--------- | :--------- | :--------- | :--------- | :-------------- | | Revenue | $7,438 | $5,658 | +31.4% | $14,383 | $11,013 | +30.6% | | Cost of revenue | $2,445 | $1,984 | +23.2% | $4,751 | $3,989 | +19.1% | | Gross profit | $4,993 | $3,674 | +35.9% | $9,632 | $7,024 | +37.1% | | Total operating expenses | $9,507 | $8,238 | +15.4% | $18,827 | $17,072 | +10.3% | | Operating loss | $(4,514) | $(4,564) | Improved | $(9,195) | $(10,048) | Improved | | Loss before taxes on income | $(4,240) | $(5,321) | Improved | $(8,684) | $(9,950) | Improved | | Loss | $(4,278) | $(5,314) | Improved | $(8,777) | $(9,930) | Improved | | Basic and diluted loss per share | $(0.09) | $(0.11) | Improved | $(0.18) | $(0.21) | Improved | [Consolidated Statements of Cash Flows](index=11&type=section&id=4.3.%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was **$(2.8) million** in Q2 2025, with significant investing activity changes Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :---------------------------------------- | :--------- | :--------- | :--------- | :--------- | | Net cash used in operating activities | $(2,822) | $(2,764) | $(2,532) | $(4,505) | | Net cash provided by (used in) investing activities | $(13,947) | $11,506 | $11,944 | $5,508 | | Net cash provided by (used in) financing activities | $76 | $20 | $189 | $(108) | | Cash and cash equivalents at period end | $19,981 | $21,001 | $19,981 | $21,001 | - A significant factor in investing activities was a **$(14,000) thousand withdrawal of short-term bank deposit** in Q2 2025, compared to no such withdrawal in Q2 2024[21](index=21&type=chunk) [Non-IFRS Financial Measures Reconciliations](index=12&type=section&id=5.%20Non-IFRS%20Financial%20Measures%20Reconciliations) This section reconciles IFRS financial measures to non-IFRS measures, including gross profit, gross margin, Adjusted EBITDA, and loss per share [Reconciliation of IFRS to Non-IFRS Gross Profit and Gross Margin](index=12&type=section&id=5.1.%20Reconciliation%20of%20IFRS%20to%20Non-IFRS%20Gross%20Profit%20and%20Gross%20Margin) Non-IFRS gross profit for Q2 2025 was **$5.5 million** (**73.5% margin**), up from Q2 2024 Gross Profit and Gross Margin Reconciliation (in thousands, except gross margin data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------ | :--------- | :--------- | :--------- | :--------- | | IFRS gross profit | $4,993 | $3,674 | $9,632 | $7,024 | | Add: Share-based comp. | $82 | $89 | $180 | $190 | | Add: Dep. & amort. | $392 | $312 | $775 | $623 | | **Non-IFRS gross profit** | **$5,467** | **$4,075** | **$10,587** | **$7,837** | | IFRS gross margin | 67.1% | 64.9% | 67.0% | 63.8% | | **Non-IFRS gross margin** | **73.5%** | **72.0%** | **73.6%** | **71.2%** | [Reconciliation of IFRS Loss to Adjusted EBITDA](index=12&type=section&id=5.2.%20Reconciliation%20of%20IFRS%20Loss%20to%20Adjusted%20EBITDA) Adjusted EBITDA for Q2 2025 improved to **negative $2.9 million** from negative $3.1 million in Q2 2024 Adjusted EBITDA Reconciliation (in thousands, except adjusted EBITDA margin data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :---------------------------------------- | :--------- | :--------- | :--------- | :--------- | | IFRS loss | $(4,278) | $(5,314) | $(8,777) | $(9,930) | | Add: Change in fair value of warrants | $285 | $1,324 | $508 | $1,040 | | Add: Financing income, net | $(559) | $(567) | $(1,019) | $(1,138) | | Add: Tax benefit (income taxes), net | $38 | $(7) | $93 | $(20) | | Add: Share-based compensation | $811 | $751 | $1,508 | $1,594 | | Add: Depreciation and amortization | $806 | $706 | $1,744 | $1,410 | | Add: Operating expense settled by shares | $0 | $0 | $0 | $351 | | **Adjusted EBITDA** | **$(2,897)** | **$(3,107)** | **$(5,943)** | **$(6,693)** | | Adjusted EBITDA margins | -39% | -55% | -41% | -61% | [Reconciliation of IFRS Loss to Non-IFRS Loss and Loss Per Share](index=13&type=section&id=5.3.%20Reconciliation%20of%20IFRS%20Loss%20to%20Non-IFRS%20Loss%20and%20Loss%20Per%20Share) Non-IFRS loss for Q2 2025 was **$(2.4) million**, with stable non-IFRS basic and diluted loss per share Non-IFRS Loss and Loss Per Share Reconciliation (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------------ | :--------- | :--------- | :--------- | :--------- | | IFRS loss | $(4,278) | $(5,314) | $(8,777) | $(9,930) | | Add: Share-based compensation | $811 | $751 | $1,508 | $1,594 | | Add: Depreciation and amortization | $806 | $706 | $1,744 | $1,410 | | Add: Operating expense settled by issuance of shares | $0 | $0 | $0 | $351 | | Add: Changes in fair value of contingent consideration | $0 | $(6) | $0 | $(6) | | Add: Change in fair value of warrants | $285 | $1,324 | $508 | $1,040 | | **Non IFRS loss** | **$(2,376)** | **$(2,539)** | **$(5,017)** | **$(5,541)** | | **Non IFRS basic and diluted loss per Ordinary share** | **$(0.05)** | **$(0.05)** | **$(0.10)** | **$(0.12)** | [Additional Information](index=3&type=section&id=6.%20Additional%20Information) This section provides details on the earnings webcast, forward-looking statements disclaimer, and explanation of non-IFRS financial measures [Earnings Webcast Details](index=3&type=section&id=6.1.%20Earnings%20Webcast%20Details) Freightos management hosted a webcast on **August 18, 2025**, to discuss Q2 results, with replay available online - A webcast and conference call was hosted on **August 18, 2025, at 8:30 a.m. EST**, featuring Freightos' management and new Chairman Dr. Udo Lange[6](index=6&type=chunk) - A replay of the webcast and the conference call transcript will be made available on Freightos' Investor Relations website[7](index=7&type=chunk) [Forward-Looking Statements Disclaimer](index=3&type=section&id=6.2.%20Forward-Looking%20Statements%20Disclaimer) This section disclaims forward-looking statements, noting they are subject to risks and uncertainties, and not predictions - The press release includes "forward-looking statements" identified by words such as "estimate," "plan," "project," and "expect," which are based on current expectations and assumptions, not predictions of actual performance[8](index=8&type=chunk) - These statements are subject to numerous risks and uncertainties, including disruptions to the international freight industry, competition, technological changes (particularly in artificial intelligence), and the ability to retain management and protect intellectual property[8](index=8&type=chunk) - Freightos disclaims any obligation to update these forward-looking statements, and they should not be relied upon as representing assessments as of any date subsequent to the press release date[9](index=9&type=chunk) [Non-IFRS Financial Measures Explanation](index=5&type=section&id=6.3.%20Non-IFRS%20Financial%20Measures%20Explanation) This section clarifies non-IFRS measures provide supplemental insights into operating performance and comparability - The press release includes certain financial measures not presented in accordance with IFRS, such as Adjusted EBITDA[11](index=11&type=chunk) - These non-IFRS measures provide useful information for investors and others to understand and evaluate Freightos' operating results, offering supplemental measures of core operating performance and consistency for internal planning and comparison with peer companies[11](index=11&type=chunk) - While historical non-IFRS results are reconciled to IFRS, forward-looking non-IFRS data does not include such a reconciliation due to unreasonable effort[11](index=11&type=chunk)

Core Insights - Freightos Limited reported a strong second-quarter performance with a 31% year-over-year revenue increase, reaching $7.4 million, driven by robust transaction growth and strategic adaptability in a fluctuating market [2][7][6] - The company achieved a record 397,000 transactions in Q2 2025, marking the 22nd consecutive quarter of record transactions, and a Gross Booking Value (GBV) of $317 million, up 56% year-over-year [7][6] - Management has revised the full-year transaction outlook upward, reflecting confidence in sustained growth despite global trade uncertainties [2][6] Financial Highlights - Revenue for Q2 2025 was $7.4 million, a 31% increase from $5.7 million in Q2 2024 [7] - IFRS Gross Margin improved to 67.1%, up from 64.9% in the same quarter last year, while Non-IFRS Gross Margin rose to 73.5% from 72.0% [7] - The company reported an IFRS loss of $4.3 million, an improvement from a loss of $5.3 million in Q2 2024, and an Adjusted EBITDA loss of $2.9 million, slightly better than the $3.1 million loss in the prior year [7][24] Business Growth - The number of unique buyer users increased by 6% year-over-year, reaching approximately 20,200 [7] - The number of carriers on the platform grew from 71 to 75, including new additions like China Airlines and Air Europa, enhancing service diversity [7] - Total platform revenue was $2.5 million, up 23% year-over-year, while solutions revenue increased by 36% to $4.9 million [7] Future Outlook - For Q3 2025, management expects transactions to range between 419,000 and 425,000, with a year-over-year growth of 24% to 25% [8] - The full-year revenue forecast is projected between $29.5 million and $30 million, reflecting a year-over-year growth of 24% to 26% [8] - The company aims to achieve breakeven Adjusted EBITDA by the end of 2026, despite potential currency fluctuations impacting financial metrics [2][8]

Summary of Freightos (CRGO) FY Conference Call - August 11, 2025 Company Overview - **Company**: Freightos (CRGO) - **Industry**: Global freight and logistics, focusing on digitalizing shipping processes Key Points and Arguments Industry Context - The global shipping industry is valued at approximately **$600 billion** annually, with **90%** of products in stores in the US and Europe being imported [9][8] - The industry remains largely offline, presenting a significant opportunity for digital transformation [6][7] Business Model - Freightos aims to be the **Booking.com or Expedia** for global freight, providing a digital platform for shipping [8] - The company operates two segments: - **Platform**: Transactional revenue from bookings - **Solutions**: Subscription-based revenue from software and data services [30] Financial Performance - The company has seen a **26% growth** in the number of transactions and a **24% increase** in booking per transaction [42] - Gross booking value increased by **56%**, exceeding expectations by **13%** [42] - The company is not yet profitable but has a clear path to profitability, projecting to reach positive EBITDA by Q4 of the following year [67] Market Dynamics - The freight forwarding industry consists of **100,000 freight forwarders**, with the largest handling **$2.03 trillion** annually [17] - Most transactions in the industry are still conducted via emails and phone calls, leading to inefficiencies such as **2-3 days** wait for price quotes [20][19] Digitalization Efforts - Freightos is a leader in the digitalization of the freight industry, with a focus on improving transaction speed and reducing costs [45] - The company has developed a digital customs broker, **Clearit**, to enhance its service offerings [81] AI Integration - The company is actively integrating AI to improve internal efficiencies and product offerings, particularly in dynamic pricing for airlines [51][53] - Unique data assets allow Freightos to create tailored AI solutions that competitors may find hard to replicate [54] Growth Opportunities - The ocean freight market is seen as a significant growth area, with signs of digitalization finally emerging [57] - The company is exploring ways to aggregate small importers and exporters, which represents a large market opportunity [71] Strategic Considerations - M&A is considered an option but not a necessity; the company prefers to preserve cash and focus on organic growth [68] - Partnerships with transportation management systems have been beneficial, but direct sales remain the primary revenue source [66] Regulatory Impact - The recent removal of the **de minimis exemption** for low-value imports is expected to positively impact Freightos by increasing demand for customs brokerage services and freeing up air cargo capacity [80][82] Additional Important Insights - The company has established a strategic footprint by owning both the backend (Webcargo) and frontend (Freightos marketplace) of its platform, creating barriers to competition [28][30] - The growth dynamic of marketplaces is emphasized, where increased participation from buyers and sellers enhances overall platform value [64] This summary encapsulates the key insights from the Freightos FY conference call, highlighting the company's strategic positioning, market dynamics, and growth potential in the logistics industry.

Core Insights - Freightos has appointed Udo Lange as Non-Executive Chairman and Rotem Hershko as a Director, effective July 28, 2025, to enhance its digital freight vision [1][3] Leadership Appointments - Udo Lange brings over 30 years of logistics leadership experience, including roles at FedEx and advising the White House Supply Chain Disruption Task Force [2][3] - Rotem Hershko has a strong background in technology and logistics, having held leadership positions at Amazon and Maersk, and currently serves as a Senior Advisor at McKinsey & Company [3][4] Strategic Direction - The new leadership aims to advance Freightos' mission of end-to-end global freight digitization, enhancing connections among shippers, forwarders, and carriers [3][4] - The company has made significant strides, reporting an annualized run rate of over 1.5 million platform transactions after 22 consecutive quarters of growth [4] Product Offerings - Freightos provides a suite of software solutions for the international freight industry, including Freightos Enterprise for multinational importers and exporters, and various products for freight forwarders and airlines [6] - The platform aims to digitize the trillion-dollar international freight industry, making global trade more efficient and accessible [6] Market Position - Freightos is recognized as a leading vendor-neutral global freight booking platform, connecting airlines, ocean carriers, freight forwarders, and over ten thousand importers and exporters [5][6] - The company also offers real-time industry data through Freightos Terminal, which includes leading spot pricing indexes for air cargo and container shipping [7]

Core Insights - Freightos has partnered with SriLankan Cargo to enhance online air cargo booking and payments, significantly expanding its presence in South Asia and improving access to Colombo as a transshipment hub [1][4] Company Overview - Freightos is a leading digital booking and payment platform for the international freight industry, facilitating connections among airlines, ocean carriers, freight forwarders, and importers/exporters [7][8] - SriLankan Cargo, the air freight division of SriLankan Airlines, connects to 32 online destinations in 21 countries and over 200 destinations globally, with strong capacity to India and the Gulf [3][11] Partnership Details - The integration allows over 10,000 freight forwarding offices using WebCargo to access, quote, book, and pay for SriLankan's air freight capacity through a single platform [2] - The partnership democratizes access to SriLankan Cargo's capacity for non-IATA forwarders in Asia, removing the need for airline credit lines or bank guarantees, which is particularly beneficial for SMEs in emerging markets [4] Service Enhancements - SriLankan Cargo will leverage Freightos' rate management and procurement tools to enhance visibility during the freight buying process [5] - The integration will also enable seamless booking of complex multi-carrier routes, optimizing load factors for partner airlines like Qatar Airways and Emirates SkyCargo [5] Industry Context - The partnership is positioned to enhance agility in the freight industry, which is increasingly reliant on digital solutions for efficiency and resilience [4][8]

Core Viewpoint - Freightos Limited reported strong preliminary key performance indicators for Q2 2025, highlighting its essential role in the international freight industry amid ongoing trade challenges [1][4]. Financial Performance - The company recorded 397,000 transactions in Q2 2025, exceeding management's expectations of 380,000 to 385,000, representing a year-over-year growth of 26% [2][7]. - Gross Booking Value (GBV) reached $317 million in Q2 2025, a significant increase of 56% year-over-year, surpassing management's expectations of $278 million to $285 million [2][7]. Platform Expansion and Network Growth - Freightos achieved its 22nd consecutive quarter of record transactions, reinforcing its position as a key player in facilitating international trade during volatile times [3]. - The network expanded to include 75 carriers, adding notable airlines such as China Airlines and Air Europa, which enhances service diversity [7]. Customer Engagement - Unique buyer users grew by 6% year-over-year to 20,200, indicating broad appeal and customer diversification for the platform [7]. Upcoming Events - The company plans to report its full financial results for Q2 2025 on August 18, 2025, with a conference call scheduled for the same day at 8:30 a.m. EDT [4][5].

Freightos (CRGO) Conference Summary Company Overview - **Company**: Freightos - **Industry**: International Freight and Shipping - **CEO**: Zvi Schreiber - **Founded**: 12 years ago Key Points and Arguments Industry Context - The international shipping industry is valued at approximately **$600 billion** [8] - 90% of goods in stores in America and Europe are imported, highlighting the industry's significance [8] Digital Transformation - Freightos aims to digitize the international shipping industry, which is considered one of the last major industries without a digital platform [6] - The company has grown from **100,000 bookings per quarter** three years ago to **close to 400,000** in Q1 [9] - Freightos has established a network of **13,000 importers and exporters**, **4,000 freight forwarders**, and **71 carriers** [9] Financial Performance - Revenue is growing every quarter, with a reaffirmed guidance for the year despite industry uncertainties [12] - EBITDA has been increasing every quarter, with the exception of a quarter impacted by an acquisition [13] - The gross profit margin is currently at **74%** and is expected to reach **80%** over time [15] - The company is projected to break even by the end of **2026** [15] Market Segmentation - The industry consists of three tiers: carriers (ocean liners, airlines), freight forwarders, and importers/exporters [16][18] - There are approximately **100,000 freight forwarders** globally, with major players like Expeditors and C.H. Robinson [19][20] Challenges and Opportunities - The industry still relies heavily on offline transactions, with many price quotes taking **2-3 days** [25] - There is significant underutilization of cargo capacity, leading to wasted resources and emissions [27] - The digitalization trend presents a substantial growth opportunity for Freightos [25] Product Offerings - Freightos has two main revenue segments: platform (transactional revenue) and solutions (software and data subscriptions) [31] - The platform includes **Webcargo**, which connects airlines and ocean liners to freight forwarders, and **Freightos**, which connects freight forwarders to importers/exporters [32][33] - The company has a growing data revenue stream from the **Freightos Baltic Index (FBX)**, which is used for market insights and trading [45] Strategic Initiatives - The company maintains a focus on capital efficiency and aims to improve its take rates on both platforms [54] - The long-term growth model anticipates a **20-30%** annual growth in transactions and revenue [57] Additional Important Information - Freightos has significant strategic investors, including **Qatar Airways** and **FedEx**, holding approximately **50%** of the company [61][62] - The impact of tariffs on the business is mixed; while they can reduce volume, they also create opportunities for alternative solutions [70][71] Conclusion Freightos is positioned to capitalize on the digital transformation of the international shipping industry, with strong growth metrics and a clear path to profitability. The company’s focus on building a comprehensive digital platform and its strategic partnerships provide a solid foundation for future expansion.

Core Viewpoint - Freightos Limited (CRGO) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of a company's shares, leading to buying or selling actions that affect stock prices [4]. Company Performance Indicators - The recent upgrade for Freightos Limited indicates an improvement in the company's underlying business, suggesting that investors may push the stock price higher [5]. - Analysts have raised their earnings estimates for Freightos Limited, with the Zacks Consensus Estimate increasing by 2.9% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - Freightos Limited's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Summary of Freightos Conference Call Company Overview - **Company Name**: Freightos - **Industry**: Digital Freight Forwarding and Logistics - **Key Executives**: Svee Schreiber (CEO), Pablo Pinelos (CFO), Anna Aaron Halbrunn (IR) Core Points and Arguments 1. **Market Position**: Freightos is a leader in digitizing the freight forwarding industry, which is still largely offline, with over a million digital bookings annually, representing a small portion of a multi-billion dollar industry [5][6][9] 2. **Growth Metrics**: The number of transactions has grown 3.5 times over the last three years, indicating rapid growth in the marketplace [7][41] 3. **Marketplace Structure**: Freightos operates a three-sided marketplace involving carriers, freight forwarders, and importers/exporters, which enhances network effects and growth dynamics [8][41] 4. **Financial Performance**: Revenue has been consistently growing, with a non-IFRS margin currently at 74%, aiming for 80% [9][10][50] 5. **Investment Strategy**: The company is intentionally not break-even yet, as it prioritizes investment in marketing and R&D to capture market opportunities [10][12] 6. **Cash Position**: Freightos has over $30 million in cash, sufficient to reach profitability without needing to raise additional capital in the near term [11][62] 7. **Revenue Segmentation**: Revenue is divided into two segments: platform revenue (transactional) and solutions revenue (subscription-based), with the expectation that platform revenue will grow faster [48][49] 8. **Tariff Impact**: While tariffs can create short-term headwinds, the overall trend of world trade remains positive, and the company is positioned to benefit from increased marketplace usage during volatility [35][36][38] Additional Important Insights 1. **Industry Dynamics**: The freight forwarding industry is characterized by a high number of manual processes and intermediaries, presenting a significant opportunity for digital transformation [23][24] 2. **Comparison with Competitors**: Freightos differentiates itself from competitors like Flexport by being a neutral platform rather than a freight forwarder, allowing for higher margins and a broader market reach [70] 3. **Long-term Growth Potential**: The company believes it can grow significantly regardless of fluctuations in global trade, as it has only digitized a small percentage of the market [67][68] 4. **Market Trends**: The shift towards digital platforms in B2B commerce is seen as a major trend, with Freightos aiming to be a leader in this space [27][28] Conclusion Freightos is positioned as a leading digital platform in the freight forwarding industry, with strong growth metrics, a solid financial foundation, and a clear strategy for future expansion. The company is focused on leveraging its marketplace structure to capitalize on the ongoing digital transformation in logistics.