Q3 2025 Earnings Call November 17, 2025 08:30 Disclaimer About this Presentation This presentation does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any security. Please see our SEC filings for the most up to date information. The information contained herein does not purport to be all-inclusive and none of Freightos or its affiliates or representatives makes any representation or warranty, express or implied, as to the accuracy, completeness or reliabi ...

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 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]

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 reported a strong second-quarter performance with a 31% year-over-year revenue increase, reaching $7.4 million, driven by robust transaction growth and strategic adaptability in a fluctuating market [2][7][6] - The company achieved a record 397,000 transactions in Q2 2025, marking the 22nd consecutive quarter of record transactions, and a Gross Booking Value (GBV) of $317 million, up 56% year-over-year [7][6] - Management has revised the full-year transaction outlook upward, reflecting confidence in sustained growth despite global trade uncertainties [2][6] Financial Highlights - Revenue for Q2 2025 was $7.4 million, a 31% increase from $5.7 million in Q2 2024 [7] - IFRS Gross Margin improved to 67.1%, up from 64.9% in the same quarter last year, while Non-IFRS Gross Margin rose to 73.5% from 72.0% [7] - The company reported an IFRS loss of $4.3 million, an improvement from a loss of $5.3 million in Q2 2024, and an Adjusted EBITDA loss of $2.9 million, slightly better than the $3.1 million loss in the prior year [7][24] Business Growth - The number of unique buyer users increased by 6% year-over-year, reaching approximately 20,200 [7] - The number of carriers on the platform grew from 71 to 75, including new additions like China Airlines and Air Europa, enhancing service diversity [7] - Total platform revenue was $2.5 million, up 23% year-over-year, while solutions revenue increased by 36% to $4.9 million [7] Future Outlook - For Q3 2025, management expects transactions to range between 419,000 and 425,000, with a year-over-year growth of 24% to 25% [8] - The full-year revenue forecast is projected between $29.5 million and $30 million, reflecting a year-over-year growth of 24% to 26% [8] - The company aims to achieve breakeven Adjusted EBITDA by the end of 2026, despite potential currency fluctuations impacting financial metrics [2][8]

Core Insights - Freightos has appointed Udo Lange as Non-Executive Chairman and Rotem Hershko as a Director, effective July 28, 2025, to enhance its digital freight vision [1][3] Leadership Appointments - Udo Lange brings over 30 years of logistics leadership experience, including roles at FedEx and advising the White House Supply Chain Disruption Task Force [2][3] - Rotem Hershko has a strong background in technology and logistics, having held leadership positions at Amazon and Maersk, and currently serves as a Senior Advisor at McKinsey & Company [3][4] Strategic Direction - The new leadership aims to advance Freightos' mission of end-to-end global freight digitization, enhancing connections among shippers, forwarders, and carriers [3][4] - The company has made significant strides, reporting an annualized run rate of over 1.5 million platform transactions after 22 consecutive quarters of growth [4] Product Offerings - Freightos provides a suite of software solutions for the international freight industry, including Freightos Enterprise for multinational importers and exporters, and various products for freight forwarders and airlines [6] - The platform aims to digitize the trillion-dollar international freight industry, making global trade more efficient and accessible [6] Market Position - Freightos is recognized as a leading vendor-neutral global freight booking platform, connecting airlines, ocean carriers, freight forwarders, and over ten thousand importers and exporters [5][6] - The company also offers real-time industry data through Freightos Terminal, which includes leading spot pricing indexes for air cargo and container shipping [7]

Core Insights - Freightos has partnered with SriLankan Cargo to enhance online air cargo booking and payments, significantly expanding its presence in South Asia and improving access to Colombo as a transshipment hub [1][4] Company Overview - Freightos is a leading digital booking and payment platform for the international freight industry, facilitating connections among airlines, ocean carriers, freight forwarders, and importers/exporters [7][8] - SriLankan Cargo, the air freight division of SriLankan Airlines, connects to 32 online destinations in 21 countries and over 200 destinations globally, with strong capacity to India and the Gulf [3][11] Partnership Details - The integration allows over 10,000 freight forwarding offices using WebCargo to access, quote, book, and pay for SriLankan's air freight capacity through a single platform [2] - The partnership democratizes access to SriLankan Cargo's capacity for non-IATA forwarders in Asia, removing the need for airline credit lines or bank guarantees, which is particularly beneficial for SMEs in emerging markets [4] Service Enhancements - SriLankan Cargo will leverage Freightos' rate management and procurement tools to enhance visibility during the freight buying process [5] - The integration will also enable seamless booking of complex multi-carrier routes, optimizing load factors for partner airlines like Qatar Airways and Emirates SkyCargo [5] Industry Context - The partnership is positioned to enhance agility in the freight industry, which is increasingly reliant on digital solutions for efficiency and resilience [4][8]

Core Viewpoint - Freightos Limited reported strong preliminary key performance indicators for Q2 2025, highlighting its essential role in the international freight industry amid ongoing trade challenges [1][4]. Financial Performance - The company recorded 397,000 transactions in Q2 2025, exceeding management's expectations of 380,000 to 385,000, representing a year-over-year growth of 26% [2][7]. - Gross Booking Value (GBV) reached $317 million in Q2 2025, a significant increase of 56% year-over-year, surpassing management's expectations of $278 million to $285 million [2][7]. Platform Expansion and Network Growth - Freightos achieved its 22nd consecutive quarter of record transactions, reinforcing its position as a key player in facilitating international trade during volatile times [3]. - The network expanded to include 75 carriers, adding notable airlines such as China Airlines and Air Europa, which enhances service diversity [7]. Customer Engagement - Unique buyer users grew by 6% year-over-year to 20,200, indicating broad appeal and customer diversification for the platform [7]. Upcoming Events - The company plans to report its full financial results for Q2 2025 on August 18, 2025, with a conference call scheduled for the same day at 8:30 a.m. EDT [4][5].

Core Insights - Freightos has integrated China Airlines into its digital freight booking platforms, WebCargo and 7LFreight, enhancing access to real-time pricing and booking for freight forwarders [1][3] - This integration allows freight forwarders to instantly access China Airlines' rates, capacity, and eBookings across a network of 85 aircraft serving 192 destinations in 29 countries [2][3] Company Developments - The initial rollout of the integration will cover major hubs in the United States, Canada, Germany, Luxembourg, the Netherlands, Japan, and 14 destinations in Mainland China, Hong Kong, Taiwan, and Southeast Asia [3] - China Airlines aims to enhance its digital transformation strategy to better serve freight forwarders by providing real-time access to capacity and rates [4] Industry Impact - The integration is expected to help maintain agility in air cargo booking amidst fast-changing tariff uncertainties, thereby supporting global trade [3] - Freightos positions itself as a leading vendor-neutral global freight booking platform, connecting airlines, ocean carriers, freight forwarders, and importers/exporters to streamline international trade [5][6]

Company Overview - Freightos Limited (NASDAQ: CRGO) is a leading vendor-neutral global freight booking platform that connects airlines, ocean carriers, freight forwarders, and importers/exporters, enhancing the efficiency and resilience of world trade [4][5]. - The platform digitizes the trillion-dollar international freight industry, offering a suite of software solutions for pricing, quoting, booking, shipment management, and payments [5]. Financial Results Announcement - Freightos will report its Q1 2025 financial results before market open on May 20, 2025, with a management-hosted webcast and conference call scheduled for 8:30 a.m. EST on the same day [1]. Investor Relations - Information regarding the financial results and a link to the live webcast will be available on Freightos' investor relations website [2]. - Participants can register for the call via a provided link, and a replay of the webcast along with the call's transcript will be accessible on the investor relations website post-call [3]. Industry Data - Freightos is a prominent provider of real-time industry data through Freightos Terminal, which includes leading spot pricing indexes such as the Freightos Air Index (FAX) for air cargo and the Freightos Baltic Index (FBX) for container shipping [6].