CRGO — Freightos Limited Ordinary shares

Summary of CRGO Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Q4 2025 Revenue: $7.4 million, up 12% year-over-year.
• Full Year 2025 Revenue: $29.5 million, up 24% year-over-year.
• Gross Booking Value (GBV): $357 million in Q4, up 27% year-over-year.
• Adjusted EBITDA: Negative $2.7 million in Q4 and negative $11.2 million for the full year.
• Non-IFRS Gross Margin: 72.7% in Q4, down from 74.3% in Q4 2024; full year margin was 73.7%, up 130 basis points from 2024.
• Cash Position: $27.9 million at the end of Q4, with expectations to reach approximately $20 million by the end of 2026.

2. Strategic Updates and Business Highlights

• Focus on Profitability: The company aims for breakeven adjusted EBITDA by Q4 2026, emphasizing disciplined growth and operational efficiency.
• Solutions-First Strategy: Emphasis on enhancing the solutions suite to drive transaction growth, particularly in air and ocean logistics, and procurement.
• Integration and Expansion: Successful integration of solutions for major global freight forwarders, with ongoing enhancements to the platform.
• Leadership Transition: The Board is in the process of appointing a new CEO, reflecting a shift towards a more professional management structure.

3. Forward Guidance and Outlook

• Q1 2026 Revenue Growth: Expected to be in the high single digits.
• Full Year 2026 Revenue Guidance: Projected growth of 6% to 12%, with higher growth anticipated for platform and solutions revenue.
• Transaction and GBV Growth: Expected to remain strong but at the lower end of long-term models due to prior sales cycle delays affecting new bookings.

4. Bad News, Challenges, or Points of Concern

• Sales Cycle Delays: Extended sales cycles have negatively impacted solutions revenue growth, leading to a gap between transaction growth and overall revenue growth.
• Market Volatility: The company faced challenges due to a volatile global trade environment, which has affected the solutions business.
• Leadership Changes: The departure of Dr. Zvi Schreiber from the Board was unexpected and may indicate underlying governance challenges during the transition to a new CEO.

5. Notable Q&A Insights

• Go-to-Market Strategy: The company is shifting to a more customer-led approach, focusing on deeper relationships with fewer, high-value clients.
• Take Rate Concerns: The slight decline in platform take rate was attributed to quarterly noise rather than a fundamental issue.
• AI Integration: Freightos is pursuing an AI-driven strategy to enhance operational efficiencies and decision-making within its workflows.
• Long-Term Profitability: While adjusted EBITDA breakeven is targeted for Q4 2026, GAAP profitability remains uncertain and will be evaluated post-breakeven.

Overall, Freightos is navigating a challenging environment with a focus on strategic growth and profitability, while addressing operational and market pressures.