GICS Sector : Industrials
Freightos Ltd., owns and operates an online freight marketplace.It connects importers and exporters, providing instant comparison, booking, and management of air, ocean, and land shipments from forwarders.Further, the company offers freight software solutions, such as Freightos AcceleRate that offers freight rate management, instant freight quotes, and business intelligence; Enterprise Shipper that offers freight tariff control, real-time landed pricing, routing, and spend analytics; Freightos WebCargo; and Freightos Shipping Calculator which integrates with the e-commerce platform, providing instant international air or ocean pricing for oversized goods and e-commerce.
Freightos reported a 24% year-over-year increase in revenue to $7.7 million, driven by a 27% rise in transactions to 429,000. The company's Platform revenue grew 15% to $2.6 million, while Solutions revenue increased 30% to $5.1 million. Gross margins remained strong, with an IFRS gross margin of 69.1% and a non-IFRS gross margin of 74.8%. The company's actual EPS came in at -$0.1, slightly below estimates of -$0.07. The cash and short-term bank deposits stood at $30.6 million at the end of Q3.
Publication Date: Nov -24
The company made significant progress in integrating ocean carriers, with 2 more integrations expected to go live in the coming quarters. The launch of a next-generation ocean rate management solution and the partnership with Visa and Transcard to enable modern financing solutions for freight forwarders and importers/exporters are expected to drive growth. The company's air cargo business is expected to grow through increasing penetration with carriers, particularly in Asia where penetration is still in the single digits.
Freightos expects continued year-on-year growth across transactions, GBV, and revenue in Q4 2025, although adjusted EBITDA will likely be impacted by foreign exchange headwinds. The company anticipates reaching adjusted EBITDA breakeven in Q4 2026 and expects to end 2025 with cash and equivalents of approximately $27 million. Analysts estimate revenue growth of 23.5% for the next year.
With a P/S Ratio of 5.28 and an EV/EBITDA of -6.99, the market seems to be pricing in significant growth prospects for Freightos. The company's ROE and ROIC are negative, at -47.17% and -202.64% respectively, indicating that the company is still in a growth phase and investing heavily. The Net Debt / EBITDA ratio is 0.92, indicating a manageable debt position.
The company has launched WebCargo Rate & Quote, integrating air and ocean quoting into a single multi-model platform, which has seen early traction with major forwarders. The partnership with Visa is expected to enhance the payment solution and increase average take rates with airlines. Ocean cargo is expected to contribute meaningfully to revenue in 2028, although some growth is expected in 2027.
Click-to-Ship: Jambojet Joins Freightos by WebCargo, Expanding Digital Cargo Connectivity Across East Africa
Nov -24
Thailand Freighter Pattaya Airways Joins WebCargo by Freightos Platform, Expanding Digital Air Cargo Access in Southeast Asia
Nov -19
Freightos Sees Payments Powering Next Phase of Logistics Digitalization
Nov -17
Freightos Limited (CRGO) Q3 2025 Earnings Call Transcript
Nov -17
Freightos Limited (CRGO) Reports Q3 Loss, Lags Revenue Estimates
Nov -17
Freightos Reports Third Quarter 2025 Results
Nov -17
China's Megacap Aviation Brings 13 Carriers to Freightos' Digital Booking Platform
Nov -11
Freightos appoints Michael Netter as CRO to Drive Global Go-to-Market Strategy
Nov -10
Growing demand for digital logistics solutions, increasing adoption of e-commerce, and rising need for supply chain optimization drive growth in the freight forwarding market, with Freightos' platform well-positioned to capitalize on these trends.
Growing e-commerce demand, increasing adoption of digital logistics platforms, and rising need for efficient supply chain management drive the growth of the online freight marketplace and logistics services.
A digital freight marketplace that connects buyers and sellers of logistics services, providing real-time quotes, booking, and shipment management.
A digital platform for air cargo rate management, enabling freight forwarders to manage rates, capacity, and bookings with airlines.
A B2B online marketplace for international freight, providing instant quotes, booking, and shipment tracking.
A data analytics platform providing insights on global trade, freight rates, and logistics trends.
The threat of substitutes for Freightos Limited Ordinary shares is medium, as there are some alternatives available in the market, but they are not very attractive to customers.
The bargaining power of customers for Freightos Limited Ordinary shares is low, as customers have limited options and the company has a strong brand presence.
The bargaining power of suppliers for Freightos Limited Ordinary shares is medium, as suppliers have some negotiating power, but the company has a diversified supplier base.
The threat of new entrants for Freightos Limited Ordinary shares is high, as the industry is attractive and there are low barriers to entry.
The intensity of rivalry for Freightos Limited Ordinary shares is high, as the industry is highly competitive and there are many established players.
| Value | |
|---|---|
| Debt Weight | 1.77% |
| Debt Cost | 8.58% |
| Equity Weight | 98.23% |
| Equity Cost | 8.58% |
| WACC | 8.58% |
| Leverage | 1.80% |
Value: 6.9
Growth: 5.3
Quality: 4.5
Yield: 0.0
Momentum: 10.0
Volatility: 5.3
1-Year Total Return ->
Value: 7.3
Growth: 1.0
Quality: 4.9
Yield: 6.0
Momentum: 9.0
Volatility: 3.7
1-Year Total Return ->
Value: 8.0
Growth: 7.9
Quality: 4.9
Yield: 0.0
Momentum: 6.0
Volatility: 4.7
1-Year Total Return ->
Value: 10.0
Growth: 7.2
Quality: 8.4
Yield: 0.0
Momentum: 1.0
Volatility: 0.3
1-Year Total Return ->
Value: 7.6
Growth: 2.3
Quality: 4.2
Yield: 0.0
Momentum: 6.0
Volatility: 1.3
1-Year Total Return ->
Value: 7.8
Growth: 2.3
Quality: 4.6
Yield: 0.0
Momentum: 4.5
Volatility: 1.7
1-Year Total Return ->