Freightos (CRGO) reported record second-quarter revenue of $7.7 million at the Sidoti Micro-Cap Investor Conference on Thursday, exceeding expectations as the company advances toward profitability targets. Adjusted EBITDA loss narrowed to $2 million, marking a record improvement from prior periods.
Platform revenue surged 90% year-over-year, while solutions revenue declined 4% to $4.8 million. The company noted a 30% sequential increase in its pipeline. Approximately two-thirds of revenue is recurring from software and data services, with the remainder transaction-based. Freightos ended the quarter with $21.4 million in cash.
The company reiterated guidance for third-quarter revenue of $7.7 million to $7.8 million and full-year revenue of $30.4 million to $31.0 million. Freightos expects adjusted EBITDA breakeven in the fourth quarter of 2026, a run-rate breakeven by year-end, and cash generation by mid-2027.
Operational metrics reflected continued growth, with 458,000 transactions processed in Q2, up 15% year-over-year. Over the trailing 12 months, the platform processed 1.8 million transactions with a gross booking value of about $1.5 billion. Freightos estimates the addressable spot freight market at $300 billion annually, representing a current platform penetration of roughly 0.5%.
The company’s user base includes 21,000 individuals across thousands of freight forwarders, importers, and exporters. Freightos operates with 75 active carriers, including 20 of the top 20 air carriers, representing about 80% of global air cargo capacity. Only about 9% of global freight is digitalized, and roughly 2% operates on platform models.
Freightos CEO Pablo Pinillos emphasized discipline and execution in 2026, stating the company aims to reach breakeven by the fourth quarter. The company’s stock traded at $1.48, with a market capitalization of $72.36 million, down 57% over the past year. Gross profit margins stood at 66.89%, with a current ratio of 1.88. InvestingPro’s fair value estimate was $1.79, while analyst price targets ranged from $2.60 to $3.00.
Freightos highlighted behavioral trends among platform users, noting that forwarders and carriers typically transact at twice their initial level after four quarters, with some cohorts reaching eight times after 16 quarters. Solution customers book three to five times more transactions than non-customers.
Market conditions remained challenging, with Middle East conflicts disrupting air and shipping corridors, constraining capacity and keeping air freight rates about 25% above pre-conflict levels in Q2. Excluding routes affected by Middle East tensions, underlying transaction growth was reported in the 20% to 30% range.
