Flexport Projects 2025 Profit from Convoy Sale, Eyes More Market Share by 2026

Core Viewpoint - Flexport expects to achieve profitability by 2025, primarily due to the sale of the Convoy freight-matching platform for $250 million, which significantly exceeds its burn rate for the year [1][2]. Company Summary - The sale of Convoy is described as a "one-time event" that is crucial for Flexport's financial goals [1]. - Without the Convoy sale, Flexport would struggle to meet its profitability target for 2025, but it remains optimistic about achieving profitability by 2026 through organic growth and market expansion [2]. - Flexport has recently opened an office in Indonesia and plans to enter six additional countries in 2026 [3]. Industry Summary - The logistics industry, including Flexport, has faced challenges due to decreased demand and slower shipping volume growth, leading to lower freight rates [4]. - Major package delivery companies like UPS and FedEx have also been affected, implementing significant cost-cutting measures to enhance efficiency [4]. - The industry has experienced volatility due to tariff changes, which have disrupted freight bookings and caused fluctuations in shipping volumes [5]. - Flexport's air freight operations have been impacted by the closure of the duty-free de minimis provision, affecting trade volumes from Asia to the U.S. [6].