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]

Core Insights - Freightos Limited reported record revenue and transactions for Q3 2025, highlighting the resilience and growing adoption of its digital freight booking platform [2][5] - The company is experiencing a shift towards digital solutions due to freight rate volatility, with a multimodal strategy gaining traction among major freight forwarders [2][5] - Despite some enterprise customers slowing their solution purchases, Freightos is making steady progress towards breakeven while maintaining strong cash reserves [2][6] Financial Performance - Revenue for Q3 2025 reached $7.7 million, a 24% increase from $6.2 million in Q3 2024 [6][21] - IFRS Gross Margin improved to 69.1%, up from 65.0% in Q3 2024, while Non-IFRS Gross Margin rose to 74.8%, compared to 72.7% in the same period [6][23] - The company reported an IFRS loss of $5.0 million for Q3 2025, compared to a loss of $2.7 million in Q3 2024, primarily due to increased market prices of warrants [6][21] Transaction and User Growth - Freightos achieved a record 429,000 transactions in Q3 2025, marking a 27% year-over-year increase [6][5] - The number of unique buyer users reached 20,600, reflecting growth in WebCargo users, although there was a slight reduction in SMB North American custom clearance users due to market uncertainty [6][5] - The platform's Gross Booking Value (GBV) grew to $336 million in Q3 2025, representing a 54% year-over-year increase [6][5] Business Strategy and Outlook - Freightos' multimodal ocean and air solution is expected to capture significant market opportunities as carriers embrace digital distribution channels [2][5] - The company anticipates Q4 2025 transactions to be between 438,000 and 444,000, with a year-over-year growth of 29% to 31% [7] - Revenue for FY 2025 is projected to be between $29.5 million and $29.6 million, reflecting a 24% year-over-year growth [7]

Core Insights - Freightos has announced a partnership with Megacap Aviation Service to enhance digital access for over 5,000 global freight forwarders to capacity from 13 airlines, starting with Ethiopian Airlines [1][3] - The partnership aims to improve transparency and instant access to rates and capacity, particularly benefiting trade between China and Africa, as well as other global routes [2][3] Company Overview - Freightos (NASDAQ: CRGO) is a leading vendor-neutral global freight booking and payment platform, connecting airlines, ocean carriers, freight forwarders, and importers/exporters to streamline international trade [5][6] - The platform digitizes the international freight industry, offering a suite of software solutions for pricing, quoting, booking, shipment management, and payments [6][7] Partnership Details - The integration with Megacap Aviation Service will provide real-time access to Ethiopian Airlines' capacity and pricing, with plans to include additional carriers like Aeromexico [3][4] - This collaboration is expected to enhance digital distribution in emerging markets, allowing clients to access real-time logistics prices and book services instantly [4][3] Market Impact - The partnership is positioned to support the growth of global trade, particularly in the Asia-Pacific region, by providing efficient and transparent logistics solutions [2][4] - Megacap Aviation Service's expertise in regional markets will complement Freightos' platform, facilitating better service for logistics stakeholders [4][3]

Core Insights - Freightos Limited has launched WebCargo Rate & Quote Ocean, integrating air and ocean freight pricing, quoting, and booking into a single platform, significantly enhancing operational efficiency for freight forwarders [1][2][4] Group 1: Product Launch and Features - The new platform allows freight forwarders to manage rates, quotes, and bookings for both air and ocean freight on a unified digital platform, with integrations to major ocean carriers [2][4] - During its beta phase, WebCargo Rate & Quote Ocean processed thousands of ocean freight quotes, with early adopters reporting a 75% reduction in quote times [3][4] Group 2: Market Impact and Strategic Goals - The launch addresses a critical gap in digital rate management for ocean freight, enabling forwarders to simplify operations and improve customer service [4] - Freightos aims to unify global freight by bridging the operational divide between air and ocean logistics, facilitating faster and more accurate quotes [4][6] Group 3: Company Overview - Freightos is a leading vendor-neutral global freight booking platform, connecting airlines, ocean carriers, freight forwarders, and importers/exporters to enhance efficiency in world trade [6][7] - The platform supports a suite of software solutions for various stakeholders in the international freight industry, including real-time industry data through Freightos Terminal [7][8]

Core Insights - Freightos Limited reported strong preliminary key performance indicators for Q3 2025, indicating continued digital adoption in the freight industry [1][2][3] Performance Metrics - The company recorded 429,000 transactions in Q3 2025, representing a 27% year-over-year growth, exceeding management's expectations of 419,000 to 425,000 transactions [2][5] - Gross Booking Value (GBV) reached $336 million in Q3 2025, reflecting a 54% year-over-year increase, surpassing management's expectations of $329 million to $333 million [2][5] Platform Expansion and Network Growth - Freightos achieved its 23rd consecutive quarter of record transactions, showcasing the platform's role in the digital transformation of the freight industry [2][3] - The WebCargo platform, which connects carriers and freight forwarders, was a significant contributor to transaction growth, with a high growth rate in the carrier portal component [5] Carrier and Buyer Growth - In Q3 2025, 77 carriers were active on Freightos' platforms, with new additions including both flag-carrier belly-cargo operators and niche cargo specialists [5] - Unique buyer users reached 20,600, with growth in WebCargo users partially offset by a reduction in SMB North American custom clearance users due to market uncertainty [5] CEO Commentary - The CEO of Freightos emphasized the platform's network effects, stating that each new participant enhances the value for all others, confirming the vision that digitization is becoming the new standard in international freight [3]

Core Viewpoint - Freightos Limited (CRGO) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - For Freightos Limited, the recent upgrade reflects an improvement in the company's underlying business, suggesting that investor sentiment may drive the stock price higher [5][10]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Freightos Limited is expected to earn -$0.33 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased 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, where Zacks Rank 1 stocks have generated an average annual return of +25% since 1988 [7][9]. - The upgrade of Freightos Limited to a 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].

Group 1 - Freightos will present at the 19th annual LD Micro Main Event on October 20th at 01:30 PM PT [1] - The event will take place from October 19th to 21st at the Hotel del Coronado in San Diego, California [4] - Approximately 120 companies will participate in the event, presenting in half-hour increments and attending private meetings with investors [5] Group 2 - Freightos is a leading vendor-neutral global freight booking platform, connecting airlines, ocean carriers, freight forwarders, and importers/exporters [6] - The Freightos platform digitizes the international freight industry, offering software solutions for pricing, quoting, booking, shipment management, and payments [6] - Freightos provides real-time industry data through Freightos Terminal, including leading spot pricing indexes like Freightos Air Index (FAX) and Freightos Baltic Index (FBX) [6]

Core Insights - Freightos Limited has been selected by Nippon Express to implement its multimodal freight pricing and booking SaaS solution across its global network, enhancing operational efficiency and digitization [1][4] - The deployment aims to improve Nippon Express's agility in responding to market fluctuations and customer demands, particularly in air and ocean freight [2][4] Company Developments - Nippon Express is expanding its use of Freightos' platform after successfully digitizing air freight operations, now moving towards multimodal solutions that handle over 1.5 million bookings annually [1][3] - The integration will include API connections with Nippon Express's internal systems and utilize Freightos Terminal for market intelligence, optimizing routing and pricing [3][6] Industry Context - The logistics industry is experiencing significant changes, necessitating rapid adaptation to shifting trade patterns and customer expectations, making digital capabilities essential for service providers [2][4] - Freightos is positioned as a leader in the digitization of the international freight industry, offering a comprehensive suite of software solutions that enhance efficiency and resilience in global trade [5][6]