0001104659-26-034941
SEC filingFreightos Limited reported $29.5 million in revenue for FY 2025, a 24% increase from $23.8 million in FY 2024. Gross profit rose to $19.7 million (66.8% margin), while operating loss narrowed to -$19.2 million from -$22.9 million. Net loss improved to -$17.5 million, down from -$22.5 million, reflecting a $3.0 million goodwill impairment reversal and reduced share listing expenses. Cash and cash equivalents stood at $13.3 million, with net cash used in operations of $8.9 million — an improvement of $3.2 million year-over-year. The company generated $11.6 million in net cash from investing activities, driven by $26.0 million in short-term bank deposit withdrawals. Despite ongoing losses, management expects to reach Adjusted EBITDA breakeven by end-2026. Key growth drivers include Solutions segment expansion (up 27% YoY) and Shipsta acquisition integration, while Platform revenue grew 18% YoY. Currency headwinds — NIS and EUR appreciation against USD — increased costs, pressuring margins.
Freightos Limited reported total revenue of $29.5 million for FY 2025, a 24% increase from $23.8 million in FY 2024. Gross profit rose to $19.7 million, yielding a gross margin of 66.8%, up from 65% in FY 2024. Operating loss improved to -$19.2 million, narrowing from -$22.9 million in FY 2024 — a 16% reduction — primarily due to the absence of the $46.7 million one-time share listing expense incurred in FY 2023 and lower general and administrative costs ($11.7M vs. $14.3M). Net loss decreased to -$17.5 million, compared to -$22.5 million in FY 2024, reflecting a $3.0 million reversal of goodwill impairment (which had been recognized in FY 2024) and a $1.2 million gain from change in fair value of warrants. Total comprehensive loss was -$16.8 million. Basic and diluted loss per ordinary share remained at $0, consistent with prior years, due to rounding conventions applied to $0.35 and $0.46 losses per share.
Revenue is split across two reportable segments: Solutions and Platform. In FY 2025, Solutions revenue totaled $19.6 million (66% of total), up 27% YoY from $15.4 million, driven by full-year recognition of Shipsta revenue ($1.9 million contribution) and growth in SaaS products ($2.1 million). Platform revenue reached $9.9 million (34% of total), up 18% YoY from $8.4 million, primarily due to higher transaction volume. Geographically, Europe contributed $8.9 million (30%), the U.S. $11.0 million (37%), Hong Kong $5.0 million (17%), and Other $4.5 million (15%). The filing notes that Platform revenue is tied to gross bookings value (GBV), which grew to $1.286 billion in FY 2025 (+44% YoY), though Platform revenue growth lagged GBV growth due to pricing discipline and mix shifts toward lower-margin ancillary services.
Gross margin improved to 66.8% in FY 2025 from 65% in FY 2024, supported by scale-driven cost efficiencies and favorable product mix. However, operating expenses remained elevated at $38.8 million, resulting in an operating margin of -65.2%. Research and development expenses rose 16% to $11.9 million, selling and marketing increased 10% to $15.2 million, while general and administrative declined 18% to $11.7 million — largely due to the $3.0 million goodwill impairment absent in FY 2025. Currency pressures weighed on profitability: the NIS and EUR appreciated 14.3% and 13.1% against the USD in FY 2025, increasing payroll and rent costs. Finance income fell 17% to $1.8 million, while finance expenses rose 51% to $0.3 million, contributing to net finance income of $1.6 million.
Net cash used in operating activities was $8.9 million in FY 2025, a $3.2 million improvement over FY 2024’s $12.1 million outflow, aided by reduced loss and working capital improvements. Investing activities generated $11.6 million, mainly from $26.0 million in short-term bank deposit withdrawals, partially offset by $3.4 million spent acquiring Shipsta. Financing activities used $22K, reflecting minimal activity post-Business Combination. Total cash and cash equivalents stood at $13.3 million as of December 31, 2025 — down from $10.1 million at year-end — but total liquidity (including short-term bank deposits of $14.5 million) remained robust at $36.1 million in current assets. Current liabilities were $16.8 million, leaving working capital (excluding cash) at -$1.3 million.
Management reaffirmed its 2026 strategic pivot toward “solutions-led” growth, aiming to embed SaaS tools deeper into customer workflows to drive sustainable Platform transaction growth. It expects to reach Adjusted EBITDA breakeven by year-end 2026 and projects free cash flow burn in 2026 will be less than in 2025. Key risks cited include Middle East military escalation disrupting air cargo capacity (removing ~20% of global air cargo capacity), Red Sea diversions suppressing ocean rates, and currency volatility — particularly NIS and EUR strength — eroding USD-denominated margins. The company also highlighted regulatory exposure under the EU AI Act (effective August 2026), potential PFIC classification risk, and concentration of ownership among early investors, who collectively held ~54% of shares as of March 2026.