Financial Data and Key Metrics Changes - Revenue for Q3 was $7.7 million, up 24% year-over-year [14] - Platform revenue was $2.6 million, up 15% year-over-year, while solutions revenue was $5.1 million, up 30% year-over-year [14] - Gross margin improved from 65% a year ago to 69.1% in Q3, with non-IFRS gross margin rising from 72.7% to 74.8% [16] - Adjusted EBITDA improved to -$2.6 million in Q3 2025 from -$2.8 million in Q3 last year [17] - Cash and short-term bank deposits at the end of the quarter were $30.6 million [18] Business Line Data and Key Metrics Changes - The company processed 429,000 transactions in Q3, up 27% 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 30% year-on-year, but anticipated stronger growth was impacted by longer sales cycles due to tariffs and macroeconomic conditions [9][19] Market Data and Key Metrics Changes - Air cargo volumes increased by 4% compared to Q3 2024, despite headwinds from tariffs and changes to U.S. import regulations [5] - Average global air cargo rates decreased by 6% compared to Q3 last year [5] - The overall freight market is characterized by volatility and nervousness due to tariffs and macroeconomic uncertainty [6] Company Strategy and Development Direction - The company is focused on expanding airline coverage in Asia and expects further global expansion as smaller carriers leverage digital channels [5] - A strategic partnership with Visa and Transcard was announced, aimed at providing modern financing solutions for freight forwarders and importers/exporters [7] - The launch of the new multimodal rate management and quoting SaaS product, WebCargo Rate & Quote Ocean, is expected to enhance service offerings [8] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is less uncertainty than earlier in the year, tariffs still create friction for imports to the U.S. [30] - The company anticipates meaningful revenue contribution from ocean bookings in the midterm, with significant growth expected by 2028 [41][44] - The focus remains on growing revenue and margins while maintaining operational efficiency to reach adjusted EBITDA break-even by Q4 2026 [18][21] Other Important Information - The company closed the quarter with a cash burn of about $10 million for 2025, compared to $15 million in 2024 [21] - The revenue mix has shifted, with platform revenue performing slightly better than initially expected, impacting overall profitability [20] Q&A Session Summary Question: Can you discuss the contribution margin and growth factors? - Management acknowledged a balance between growth and achieving break-even EBITDA, emphasizing efficiency improvements and potential AI-driven efficiencies [25][26] Question: How is tariff volatility affecting shipping volumes? - Management indicated that while there is some stabilization, uncertainty and higher tariffs still create friction for imports, impacting customer behavior [30][31] Question: Can you elaborate on market penetration and growth opportunities? - Management highlighted high penetration in Europe, moderate growth in the U.S., and low penetration in Asia, indicating significant growth potential in the latter [36] Question: What impact will the Visa partnership have? - 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 some contributions anticipated from solutions in 2026 [44][45] Question: What is the proportion of recurring versus non-recurring revenue in solutions? - The majority of solutions revenue is recurring, with non-recurring revenue not exceeding 5% [57][58]

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]

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.