Freight Technologies Announces Second Quarter 2025 Results

Core Insights - Freight Technologies, Inc. (Fr8Tech) reported progress in its transition to a SaaS provider in logistics, achieving profitability in Q2 2025 despite challenges from higher tariffs and trade policy uncertainty [2][5] - The company completed initial sales of its Fleet Rocket TMS software and improved operating margins in its brokerage business, indicating a focus on technology-driven solutions [2][6] - Fr8Tech's revised outlook for 2025 reflects a shift towards higher margin software sales and AI innovations, leading to a reduction in revenue and operating margin expectations [5] Business Highlights - Fr8Tech launched Fleet Rocket, a cost-effective TMS software solution, and enhanced Fr8App with new features [6] - The company developed AI Logistics Worker agents in collaboration with the University of Monterrey to improve operational efficiency [6] - Fr8Tech expanded its cryptocurrency treasury, indicating a strategic investment approach [6] Financial Highlights - Fr8Tech achieved a net profit of $649 thousand with a net profit margin of 21.7% for Q2 2025, a significant improvement from a net loss of $1.95 million in Q2 2024 [6][12] - Operating loss improved from -$1.7 million in Q2 2024 to -$1.5 million in Q2 2025, attributed to higher margin brokerage operations and reduced expenses [6][12] - Revenue for Q2 2025 was reported at approximately $2.99 million, down from $3.84 million in Q2 2024 [12] Annual Outlook - The company anticipates lower revenue and operating margin for 2025 due to its strategic focus on software sales and the economic impact of tariffs on US-Mexico trade [5] - The revised revenue outlook for 2025 is projected between $13 million and $16 million, with an operating loss expected between -$4.5 million and -$6.3 million [7]