Freightos (CRGO) Q2 2025: Platform Transactions Jump 26% as Ocean Digitalization Accelerates
Freightos delivered record Q2 platform growth, with transactions up 26% and new carrier integrations fueling network effects. The company’s dual focus on expanding digital bookings in both air and ocean, alongside deeper enterprise penetration, is unlocking new addressable market and cross-sell opportunities. Guidance was raised for transactions and gross booking value, but management remains measured on revenue mix and profitability as FX and sales cycle dynamics persist.
Summary
- Carrier Integration Momentum: New major ocean and air carrier additions signal growing industry shift to digital booking.
- Solutions Suite Expansion: Enterprise wins and data product enhancements deepen value for large shippers and forwarders.
- Profitability Pathway: Management reiterates break-even target by end of 2026, balancing growth with disciplined cost control.
Performance Analysis
Freightos posted another quarter of record platform activity, facilitating 397,000 transactions in Q2, a 26% year-over-year increase and the company’s 22nd consecutive quarter of record transaction volumes. Platform revenue grew 23%, while solutions revenue rose 36%, reflecting strong demand for both transactional booking and enterprise software offerings. Gross margin expanded to 67% IFRS and 74% non-IFRS, with gains driven by mix shift and operational discipline, though FX headwinds from euro and shekel appreciation tempered further EBITDA improvement.
Within segments, the WebCargo platform, carrier-to-forwarder digital booking network, outpaced the Freightos.com platform, which connects forwarders with importers and exporters. The solutions division, now anchored by the integrated Freightos Procure and Terminal products, saw growth from both new enterprise clients and deepening relationships with large forwarders. Platform penetration remains low relative to total global air and ocean bookings, highlighting significant long-term runway as digital adoption accelerates across logistics verticals.
- Transaction Growth Outpaces Revenue: Mix shift toward lower take-rate transactions modestly diluted revenue leverage despite strong volume gains.
- FX Headwinds Limit Profit Flow-Through: Currency movements impacted adjusted EBITDA, though hedging offset most cash effects.
- Network Effects Deepen: Both buyer and carrier cohorts increased engagement, reinforcing platform stickiness and future monetization potential.
Freightos raised transaction and gross booking value guidance for the year, but held revenue targets steady, citing evolving transaction mix and longer enterprise sales cycles as factors moderating near-term top-line conversion.
Executive Commentary
"Our platform's resilience and versatility continue to shine, adapting to the complexities of today's trade environment. We expanded our network by adding airlines such as China Airlines, a top 15 air cargo carrier in the world, enhancing our coverage on critical Asia-Europe, America's routes and Europa, a vital addition to strengthening key Spain to Latin America trade lanes, bringing a total to 75 carriers."
Dr. Tzvi Schreiber, CEO
"We reported revenue of $7.4 million, marking a 31% increase year over year. Platform revenue of $2.5 million was up 23% year over year, marking our fourth consecutive quarters of growth that exceeded 20% year on year. Solutions revenue of $4.9 million was up 36% year over year. Gross margin on IFRS basics was approximately 67% in Q2, up from 65% in Q2 last year."
Pablo Piniers, CFO
Strategic Positioning
1. Platform Expansion and Carrier Integration
Freightos’ strategy centers on building an end-to-end digital freight marketplace that connects carriers, forwarders, and shippers across air, ocean, and land. Q2 saw the addition of China Airlines and Air Europa, expanding total carrier coverage to 75 and deepening reach on key Asia-Europe and transatlantic lanes. Ocean digitalization made a leap with a fully integrated contract and spot booking connection to a top global container carrier, a milestone that opens new addressable market and demonstrates growing carrier willingness to embrace API-driven workflows.
2. Solutions Suite and Data-Driven Value
The solutions segment, led by Freightos Procure, enterprise tendering and procurement platform, and Freightos Terminal, market data and benchmarking tool, delivered notable wins with a top global retailer and a North American fiber networking company. Integration of contract benchmarking, powered by data assets from the Shipster acquisition, is enabling shippers to negotiate more effectively and driving cross-sell momentum among enterprise clients. The company also highlighted the growing role of AI in both internal operations and customer-facing solutions, leveraging unique data sets to enhance logistics optimization.
3. Network Effects and Platform Liquidity
Unique buyer users rose 6% to 20,200, with both transaction frequency and carrier participation increasing sequentially. This positive cohort dynamic fuels a reinforcing feedback loop, as greater liquidity attracts more participants and deepens engagement. The company continues to focus on increasing penetration within existing carrier partners, noting that Freightos still accounts for less than 10% of bookings for most airlines, underscoring untapped potential.
4. Governance and Strategic Maturity
Board evolution was a focal point this quarter, with the appointment of Dr. Udo Lang as chairman and the addition of Rotem Hershko, bringing expertise from Stolt Nielsen, FedEx Logistics, Amazon, and Maersk. Leadership emphasized the separation of CEO and chairman roles as a sign of governance maturity and a platform for more effective resource allocation and strategic review. The board’s annual strategy process now explicitly weighs solution maturity and hyper-growth potential to guide capital deployment.
5. Profitability and Capital Discipline
Freightos remains committed to achieving break-even by Q4 2026, with management projecting confidence in the current trajectory absent any major industry inflection. Operating expense growth remains measured, with FX volatility largely hedged. The company reiterated its intention to balance growth investments with cost control, focusing on sustainable margin expansion as scale builds.
Key Considerations
Freightos’ Q2 results reflect a business at a digital inflection point, as both customer adoption and carrier integration accelerate in an industry still largely offline. However, the path to scaled monetization and profitability remains complex, shaped by transaction mix, macro volatility, and the long tail of digital adoption in global logistics.
Key Considerations:
- Ocean Digitalization Catalyst: Each new carrier integration, especially in ocean, brings step-function addressable market expansion due to industry concentration.
- Enterprise Sales Cycle Elongation: Macroeconomic caution among large shippers is extending deal timelines, particularly for multi-year solutions contracts.
- Transaction Mix and Take-Rate Dynamics: Faster growth in lower take-rate transaction types is diluting near-term revenue leverage even as total volume accelerates.
- FX Exposure Remains a Swing Factor: While largely hedged, currency volatility continues to impact reported profitability and could persist as a headline item.
- Board and Governance Upgrades: New leadership and board expertise signal a more rigorous approach to capital allocation and long-term strategy.
Risks
Freightos faces risks from persistent FX volatility, elongated enterprise sales cycles, and potential overhang from macro-driven trade disruptions or tariff unpredictability. Digital adoption in ocean and broader logistics remains gradual, and while each carrier win is significant, the pace of structural industry change may lag investor expectations. Additionally, transaction mix shifts could continue to pressure revenue conversion and margin realization in the near term.
Forward Outlook
For Q3 2025, Freightos guided to:
- Transactions of 419,000 to 425,000, representing 24 to 25% growth year over year
- Revenue of $7.6 to $7.7 million, up 23 to 25% year over year
For full-year 2025, management raised guidance for:
- Total transactions and gross booking value, reflecting robust platform activity
- Narrowed revenue guidance to $29.5 to $30 million, with adjusted EBITDA loss of $10.9 to $10.5 million
Management highlighted:
- Confidence in break-even by Q4 2026, based on current growth and margin trends
- Ongoing investment in AI and product enhancements, with no major strategic pivots planned for the coming year
Takeaways
Freightos is executing on a multi-pronged digital logistics strategy, with platform transaction growth, new carrier integrations, and solutions expansion all contributing to a strengthening competitive moat. The company’s ability to convert transaction volume into sustainable revenue and margin will be the key investor watchpoint as digital adoption proceeds across both air and ocean freight verticals.
- Platform Penetration Remains Early: With less than 10% share of partner carrier bookings, Freightos has significant upside as digital workflows become standard in global logistics.
- Solutions Cross-Sell Unlocks Enterprise Value: Integration of data benchmarking and procurement tools is driving deeper relationships and higher wallet share among large shippers and forwarders.
- Profitability Hinges on Mix and Efficiency: Sustained cost discipline and transaction mix management will determine the pace and durability of margin expansion toward the stated break-even target.
Conclusion
Freightos’ Q2 results demonstrate a business scaling rapidly at the intersection of logistics and digital transformation, but also navigating the realities of transaction mix, macro volatility, and gradual industry change. Execution on carrier integration, enterprise solutions, and disciplined cost management will be central to realizing the company’s long-term platform ambitions.
Industry Read-Through
Freightos’ traction with both air and ocean carriers underscores the accelerating digitalization of freight procurement and management, a trend likely to reshape the competitive landscape for traditional forwarders, carriers, and software vendors alike. Each new carrier integration signals growing industry acceptance of API-driven, real-time booking workflows, setting a precedent for other logistics technology providers and legacy incumbents. Slower monetization of transaction growth and persistent FX headwinds are cautionary signals for peers pursuing similar platform models, highlighting the importance of scale, network effects, and operational discipline in digital freight markets.