Freightos (CRGO) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 revenue of $6.9 million, up 30% year-over-year, and processed over 370,000 transactions, a 25% increase, surpassing management's expectations.

• Expanded network to 71 carriers and 19,700 unique buyer users, reflecting strong network effects and global platform scaling.

• Launched Freightos Enterprise Suite post-quarter, integrating SHIPSTA acquisition and expanding solutions for global freight cost optimization and risk management.

• Strong enterprise customer wins, 100% retention in data solutions, and growing interest in index-linked products.

• Management expects only marginal impact from tariff uncertainties, citing vast offline market opportunity for digital transformation.

Financial highlights

• Q1 2025 revenue reached $6.9 million, exceeding guidance of $6.7M–$6.8M; platform revenue $2.3 million (up 23% YoY), solutions revenue $4.6 million (up 33% YoY).

• Gross Booking Value (GBV) for Q1 2025 was $276.1 million, a 43% year-over-year increase.

• IFRS gross margin improved to 66.8% from 62.6% YoY; non-IFRS gross margin rose to 73.7% from 70.3%.

• Adjusted EBITDA loss improved to -$3.0 million from -$3.6 million YoY, at the favorable end of guidance.

• Cash and equivalents stood at $36.4 million at the end of Q1 2025.

Outlook and guidance

• Q2 2025 guidance: 380,000–385,000 transactions (20–22% YoY growth), revenue of $7.0–$7.1 million (23–25% YoY growth), adjusted EBITDA loss of $2.8–$2.9 million.

• FY 2025 revenue guidance of $29.0M–$30.6M (22%–29% YoY growth), adjusted EBITDA $(10.9)M–$(10.2)M; break-even adjusted EBITDA targeted by end of 2026.

• Guidance assumes stable freight price levels and volumes as of May 2025.

• Cautious on GBV outlook due to potential freight rate drops, but revenue less sensitive due to flat-fee model.

• Management maintains a positive outlook, emphasizing resilience amid tariff uncertainties and ongoing digital adoption.