Freight Technologies Announces First Quarter 2025 Results

Core Insights - Freight Technologies, Inc. (Fr8Tech) reported significant improvements in gross margins and cash flow from operations in Q1 2025, despite facing challenges in the macroeconomic environment [2][4] - The company launched Fleet Rocket, an advanced Transportation Management System (TMS), and introduced an AI-powered Tendering Bot to enhance its logistics solutions [2][7] - Fr8Tech is adjusting its 2025 revenue and margin outlook due to anticipated economic impacts from higher tariffs on US-Mexico trade, while remaining optimistic about recovering cross-border volumes through domestic shipments [5][6] Business Highlights - The company extended agreements with several multinational enterprises, indicating strong business relationships and market confidence [2] - Fleet Rocket was successfully launched, aimed at optimizing freight brokerage and shipping operations [7] - New features were added to existing platforms, including AI capabilities and mobile applications for dispatchers [7] Financial Highlights - Gross margin percentage increased by 7.0% year-over-year to 12.4% in Q1 2025 from 5.4% in Q1 2024, reflecting a focus on profitable routes [7] - Cash flow from operations improved by $0.2 million year-over-year to ($3.1) million in Q1 2025 from ($3.3) million in Q1 2024 [7] - Net loss decreased by $0.7 million year-over-year to ($1.6) million in Q1 2025 from ($2.3) million in Q1 2024, attributed to higher gross margins and lower operating expenses [7] 2025 Annual Outlook - The company is lowering the high-end of its revenue and margin outlook for 2025 due to expected economic impacts from higher tariffs on US-Mexico cross-border trade [5] - Fr8Tech believes it can recover most cross-border volume through domestic shipments, but remains cautious due to uncertainties in trade policy [5]