Freightos CRGO

NASDAQ CRGO

$1.19 -0.08 (-6.30%)

At close: Sep 9, 2026 · 4:00 PM EDT

Key Stats

Market Cap61.19 Mn

P/E-5.03

P/S2.71

Div. Yield0.00

Revenue Growth (1y) (Qtr)3.40

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About

Freightos Hong Kong Limited, a digital freight pricing, procurement, and booking platform, operates in the global logistics industry. The company aims to streamline air, ocean, and ground shipments across carriers, freight forwarders, importers, and exporters, reducing inefficiencies in global supply chains. Freightos provides a comprehensive suite of freight rate management, quoting, and booking solutions, along with market intelligence tools, to enhance supply chain…

Freightos generates revenue through its two primary segments: Platform and Solutions. The Platform segment connects buyers and sellers of freight services, facilitating digitalized price quoting, booking, payments, and basic shipment management. The Solutions segment offers software tools and data to help industry participants automate pricing, sales, and procurement processes, or improve efficiency with market intelligence. Revenue streams include SaaS subscriptions, data subscriptions, and services associated with SaaS, such as configuration, customization, and data ingestion services.

The company operates through the following segments:

Platform: This segment provides digitalized price quoting, booking, payments, and basic shipment management for freight services. It connects buyers and sellers of freight services, including importers/exporters, freight forwarders, and carriers.
Solutions: This segment offers software tools and data to help industry participants automate pricing, sales, and procurement processes, or improve efficiency with market intelligence. Solutions include rate management, quoting tools, market data, and customs brokerage services.

Freightos holds a strong position in the global logistics industry, particularly in the air cargo sector. The company has achieved direct digital connections with multiple layers of the industry, including carriers, freight forwarders, and importers/exporters. Freightos' Platform benefits from strong network effects, where each participant makes the network more valuable for other participants. The company's deep technology and broad network provide a first-mover advantage, allowing it to distinguish itself from competitors. Key competitors include Cargo.one, Cargo. Ai, WiseTech, and CargoBooking.aero for the Platform segment, and Portrix, Catapult, CargoSphere, and Freightify for the Solutions segment.

The customer base of Freightos includes a diverse range of participants in the international freight market. Carriers connected to the Platform include notable airlines such as United Airlines, Qatar Airways, Cathay Pacific, Cargolux, Emirates SkyCargo, American Airlines, Lufthansa, IAG Group Cargo, Turkish Airlines, and Air France-KLM. Freight forwarders using the Platform include top-20 multi-billion-dollar forwarders like FedEx Logistics, DSV/DB Schenker, CEVA, and Nippon Express. Importers/exporters using the Platform include some 21,000 SMB importers/exporters who have procured freight services on freightos.com. The company serves a broad, geographically dispersed network with particular strength in Europe and North America.

Investment Thesis

▲ Bull case

Freightos is positioned to benefit from a structural shift in global freight where procurement, pricing, execution, and market intelligence are converging into integrated operational workflows across multimodal networks, a trend validated by the recent example of a Fortune 500 oil and gas company rerouting spare parts distribution during Middle East disruptions using real-time data connectivity. This shift elevates the value of Freightos’ platform as a neutral infrastructure layer that combines live carrier connectivity, embedded customer relationships, and operational data—assets that are difficult for competitors to replicate and increasingly valuable as freight markets grow more volatile and complex. The company’s predictive risk forecasting tool, built on years of accumulated data and enhanced with AI to incorporate client-specific risk inputs, exemplifies how Freightos is moving beyond basic digitization to deliver actionable, automated decision support that reduces friction and improves supply chain resilience. As customers demand faster, dynamic sourcing decisions across air and ocean networks, Freightos’ focus on integrating procurement, pricing, quoting, booking, and market intelligence into a single workflow directly addresses this unmet need, creating a durable competitive moat rooted in network effects and data advantage rather than transient market conditions.
Despite a soft Q1 impacted by Middle East freight disruptions, Freightos’ underlying business fundamentals show strong momentum, with solutions pipeline approximately doubling year-over-year and gross booking value (GBV) growing 24% year-over-year to $343 million—a leading indicator of platform scale, liquidity, and customer relevance that often precedes revenue growth. The transaction shortfall of 425,000 (up only 15% YoY vs. 20%+ target) was explicitly attributed to temporary capacity unavailability in key trade corridors, not weakening demand, as evidenced by healthier transaction growth outside the Middle East and improving monthly trends in April. Critically, customers adopting Freightos’ solutions transact approximately 3x more and exhibit higher retention and expansion over time, validating the long-term strategy of building durable recurring value before scaling transaction volume. This foundation suggests that as market conditions normalize and the company executes on its tightened go-to-market focus—including improved commercial execution, sharper prioritization, and operating consistency—the solutions business is poised for reacceleration, supported by a sales cycle now under greater internal visibility and control following organizational refinements.
Freightos’ path to adjusted EBITDA breakeven by end of 2026 is credible and underpinned by concrete, near-term actions: the cost optimization plan executed in late March is expected to generate approximately $4.5 million in annualized savings beginning in Q4 2026, with benefits ramping through Q2 and Q3, directly addressing the quarter’s negative $2.8 million adjusted EBITDA result. These actions are not mere cost cuts but a disciplined reorganization to align structure with strategic priorities, improve execution focus, and build scalability—key prerequisites for sustainable profitability. Combined with a strong liquidity position of $23.5 million in cash and short-term deposits, which management affirms is sufficient to support operating plans and achieve cash flow positivity 2–3 months post-breakeven, the financial runway reduces near-term risk. Furthermore, the company’s long-term vision targets 20–30% YoY growth in transactions and GBV, revenue growth of 25–30% annually, and non-IFRS gross margins stable in the 70–80% range through 2027–2030, implying that breakeven is not an endpoint but a stepping stone to durable, profitable expansion once execution discipline is institutionalized.

Freightos is positioned to benefit from a structural shift in global freight where procurement, pricing, execution, and market intelligence are converging into integrated operational workflows across multimodal networks, a trend validated by the recent example of a Fortune 500 oil and gas company rerouting spare parts distribution during Middle East disruptions using real-time data connectivity. This shift elevates the value of Freightos’ platform as a neutral infrastructure layer that combines live carrier connectivity, embedded customer relationships, and operational data—assets that are difficult for competitors to replicate and increasingly valuable as freight markets grow more volatile and complex. The company’s predictive risk forecasting tool, built on years of accumulated data and enhanced with AI to incorporate client-specific risk inputs, exemplifies how Freightos is moving beyond basic digitization to deliver actionable, automated decision support that reduces friction and improves supply chain resilience. As customers demand faster, dynamic sourcing decisions across air and ocean networks, Freightos’ focus on integrating procurement, pricing, quoting, booking, and market intelligence into a single workflow directly addresses this unmet need, creating a durable competitive moat rooted in network effects and data advantage rather than transient market conditions.
Despite a soft Q1 impacted by Middle East freight disruptions, Freightos’ underlying business fundamentals show strong momentum, with solutions pipeline approximately doubling year-over-year and gross booking value (GBV) growing 24% year-over-year to $343 million—a leading indicator of platform scale, liquidity, and customer relevance that often precedes revenue growth. The transaction shortfall of 425,000 (up only 15% YoY vs. 20%+ target) was explicitly attributed to temporary capacity unavailability in key trade corridors, not weakening demand, as evidenced by healthier transaction growth outside the Middle East and improving monthly trends in April. Critically, customers adopting Freightos’ solutions transact approximately 3x more and exhibit higher retention and expansion over time, validating the long-term strategy of building durable recurring value before scaling transaction volume. This foundation suggests that as market conditions normalize and the company executes on its tightened go-to-market focus—including improved commercial execution, sharper prioritization, and operating consistency—the solutions business is poised for reacceleration, supported by a sales cycle now under greater internal visibility and control following organizational refinements.
Freightos’ path to adjusted EBITDA breakeven by end of 2026 is credible and underpinned by concrete, near-term actions: the cost optimization plan executed in late March is expected to generate approximately $4.5 million in annualized savings beginning in Q4 2026, with benefits ramping through Q2 and Q3, directly addressing the quarter’s negative $2.8 million adjusted EBITDA result. These actions are not mere cost cuts but a disciplined reorganization to align structure with strategic priorities, improve execution focus, and build scalability—key prerequisites for sustainable profitability. Combined with a strong liquidity position of $23.5 million in cash and short-term deposits, which management affirms is sufficient to support operating plans and achieve cash flow positivity 2–3 months post-breakeven, the financial runway reduces near-term risk. Furthermore, the company’s long-term vision targets 20–30% YoY growth in transactions and GBV, revenue growth of 25–30% annually, and non-IFRS gross margins stable in the 70–80% range through 2027–2030, implying that breakeven is not an endpoint but a stepping stone to durable, profitable expansion once execution discipline is institutionalized.

▼ Bear case

Freightos faces persistent execution risks in its solutions business, where Q1 revenue underperformance reflects deeper challenges in commercializing complex SaaS and data products amid a cautious enterprise spending environment, with management acknowledging that internal expectations for solution sales execution were not met in Q1—the first quarter of their renewed execution focus—suggesting potential overconfidence in the pace of adoption. The company attributes the shortfall entirely to platform transaction volatility from Middle East disruptions, yet this explanation overlooks the possibility that enterprise customers are delaying decisions not just due to external shocks but also due to solution complexity, long sales cycles, or unproven ROI, particularly as they navigate broader macroeconomic uncertainty. Despite a doubling of the solutions pipeline YoY, the lack of disclosed conversion rates, deal sizes, or sales cycle timelines leaves uncertainty about whether this pipeline growth translates to near-term revenue, especially as management admits they are still gaining visibility and control over the sales process post-organizational changes, raising concerns about execution consistency in a critical growth lever.
The company’s path to adjusted EBITDA breakeven by end of 2026 relies heavily on future cost savings from a plan enacted in late March, with the full $4.5 million annualized benefit not expected to materialize until Q4 2026—meaning minimal impact in H1 2026 and only partial benefit through Q3—leaving the business vulnerable to continued cash burn if revenue recovery lags or if macroeconomic headwinds prolong enterprise spending caution. While management cites $23.5 million in cash as sufficient liquidity, the Q1 cash drop of $5 million (largely tied to the cost optimization execution) implies a burn rate that, if sustained, could erode reserves faster than anticipated, especially if the expected ramp in cost savings is delayed or if revenue recovery fails to accelerate as hoped. Furthermore, the reliance on adjusted EBITDA—excluding certain costs—may obscure underlying profitability challenges, and the guidance for continued EBITDA improvement of 8–12 percentage points YoY through 2027–2030 assumes successful scaling without margin dilution, a significant assumption given the investments needed in R&D, sales, and carrier network expansion to support long-term growth targets.
Freightos’ strategic emphasis on becoming a neutral infrastructure layer connecting procurement, execution, and market intelligence across air and ocean networks, while conceptually sound, faces substantial competitive and technical hurdles that are underdiscussed, including the difficulty of achieving true interoperability across fragmented legacy systems used by carriers, freight forwarders, and shippers, as well as the risk that larger players (e.g., ERP giants, logistics aggregators, or tech platforms) could replicate or bundle similar capabilities with deeper pockets and entrenched customer relationships. The company’s differentiation hinges on combining live operational data, carrier connectivity, and embedded customer relationships into an infrastructure layer that is “very difficult to replicate,” yet this claim is not substantiated with measurable barriers such as switching costs, network exclusivity, or proprietary data moats. Additionally, while predictive risk forecasting and AI-enhanced decision support are highlighted as catalysts, the level of automation remains uncertain—management describes providing “recommendations and/or even automated execution” but does not clarify the extent of actual automation versus advisory outputs, raising questions about whether the solution delivers transformative efficiency gains or merely incremental insights in an industry where manual intervention and relationship-based decision-making remain deeply entrenched.

Freightos faces persistent execution risks in its solutions business, where Q1 revenue underperformance reflects deeper challenges in commercializing complex SaaS and data products amid a cautious enterprise spending environment, with management acknowledging that internal expectations for solution sales execution were not met in Q1—the first quarter of their renewed execution focus—suggesting potential overconfidence in the pace of adoption. The company attributes the shortfall entirely to platform transaction volatility from Middle East disruptions, yet this explanation overlooks the possibility that enterprise customers are delaying decisions not just due to external shocks but also due to solution complexity, long sales cycles, or unproven ROI, particularly as they navigate broader macroeconomic uncertainty. Despite a doubling of the solutions pipeline YoY, the lack of disclosed conversion rates, deal sizes, or sales cycle timelines leaves uncertainty about whether this pipeline growth translates to near-term revenue, especially as management admits they are still gaining visibility and control over the sales process post-organizational changes, raising concerns about execution consistency in a critical growth lever.
The company’s path to adjusted EBITDA breakeven by end of 2026 relies heavily on future cost savings from a plan enacted in late March, with the full $4.5 million annualized benefit not expected to materialize until Q4 2026—meaning minimal impact in H1 2026 and only partial benefit through Q3—leaving the business vulnerable to continued cash burn if revenue recovery lags or if macroeconomic headwinds prolong enterprise spending caution. While management cites $23.5 million in cash as sufficient liquidity, the Q1 cash drop of $5 million (largely tied to the cost optimization execution) implies a burn rate that, if sustained, could erode reserves faster than anticipated, especially if the expected ramp in cost savings is delayed or if revenue recovery fails to accelerate as hoped. Furthermore, the reliance on adjusted EBITDA—excluding certain costs—may obscure underlying profitability challenges, and the guidance for continued EBITDA improvement of 8–12 percentage points YoY through 2027–2030 assumes successful scaling without margin dilution, a significant assumption given the investments needed in R&D, sales, and carrier network expansion to support long-term growth targets.
Freightos’ strategic emphasis on becoming a neutral infrastructure layer connecting procurement, execution, and market intelligence across air and ocean networks, while conceptually sound, faces substantial competitive and technical hurdles that are underdiscussed, including the difficulty of achieving true interoperability across fragmented legacy systems used by carriers, freight forwarders, and shippers, as well as the risk that larger players (e.g., ERP giants, logistics aggregators, or tech platforms) could replicate or bundle similar capabilities with deeper pockets and entrenched customer relationships. The company’s differentiation hinges on combining live operational data, carrier connectivity, and embedded customer relationships into an infrastructure layer that is “very difficult to replicate,” yet this claim is not substantiated with measurable barriers such as switching costs, network exclusivity, or proprietary data moats. Additionally, while predictive risk forecasting and AI-enhanced decision support are highlighted as catalysts, the level of automation remains uncertain—management describes providing “recommendations and/or even automated execution” but does not clarify the extent of actual automation versus advisory outputs, raising questions about whether the solution delivers transformative efficiency gains or merely incremental insights in an industry where manual intervention and relationship-based decision-making remain deeply entrenched.

Products and services [axis] Breakdown of Revenue (2025)

Peer group

Peer Comparison

Companies in the Supply Chain Software

S.No.	Ticker	Company	match	Market Cap	P/E	P/S	Total Debt (Qtr)
1	IOT	Samsara Inc.	primary	22.65 Bn	250.13	12.26	-
2	MANH	Manhattan Associates Inc	primary	12.09 Bn	57.50	10.73	-
3	DSGX	Descartes Systems Group Inc	primary	6.31 Bn	29.60	8.37	-
4	SPSC	Sps Commerce Inc	primary	2.86 Bn	36.70	3.71	-
5	VIA	Via Transportation, Inc.	primary	2.12 Bn	-21.45	4.30	-
6	KARO	Karooooo Ltd.	primary	1.96 Bn	32.52	5.98	0.02 Bn
7	ITRN	Ituran Location & Control Ltd.	primary	1.02 Bn	10.04	3.94	-
8	VRRM	VERRA MOBILITY Corp	primary	0.57 Bn	12.00	0.56	1.03 Bn

Freightos CRGO

About

Investment Thesis

Geographical Breakdown of Revenue (2025)

Products and services [axis] Breakdown of Revenue (2025)

Peer Comparison

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