Freightos (CRGO, Financial) has released preliminary performance indicators for the second quarter of 2025. The company reported achieving a new milestone with its 22nd consecutive quarter of record transactions, reaching 397,000 transactions, which marks a 26% increase compared to the previous year. This growth exceeded the expectations set by management.
In terms of network expansion, Freightos increased its collaborations to include 75 carriers, welcoming major airlines like China Airlines and Air Europa into its fold. Additionally, the platform experienced a 6% rise in unique buyer users from the previous year, totaling 20,200 users.
The Gross Booking Value saw a significant boost, with carriers and freight forwarders generating $317 million in revenue through Freightos' platform during the quarter, reflecting a 56% year-over-year growth. This robust expansion highlights Freightos' strengthening position in the market.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Freightos Ltd (CRGO, Financial) is $4.67 with a high estimate of $5.00 and a low estimate of $4.00. The average target implies an upside of 110.21% from the current price of $2.22. More detailed estimate data can be found on the Freightos Ltd (CRGO) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Freightos Ltd's (CRGO, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
CRGO Key Business Developments
Release Date: May 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Freightos Ltd (CRGO, Financial) reported record revenues and a 21st consecutive quarter of record transactions.
- The company facilitated over 370,000 transactions in Q1, marking a 25% increase from the previous year.
- Freightos Ltd (CRGO) added 4 new carriers to its platform, increasing the total to 71 carriers.
- The launch of the Freightos Enterprise software as a service solution creates new sales and cross-sell opportunities.
- The company achieved a gross margin improvement to 66.8% on an IFRS basis, up from 62.6% the previous year.
Negative Points
- Freightos Ltd (CRGO) is sensitive to fluctuations in trade volumes, which can impact platform transactions.
- The company experienced a dip in China-US transactions due to high tariffs, although this lane represents less than 2% of total transactions.
- Economic uncertainty or downturns can be a headwind for closing solutions revenue.
- The potential reopening of the Red Sea could lead to a drop in ocean freight rates, affecting revenue.
- Freightos Ltd (CRGO) remains cautious about further M&A activities due to a focus on preserving cash for profitability goals.
