How is the company addressing pressure on renewals, specifically by integrating customers into the ONE Freightos platform?

By bringing customers onto the unified platform and continuously developing new features, Freightos provides a broader value proposition, which helps address renewal pressures. “We are bringing into one platform. We are continue developing new features and new product capabilities that Ian mentioned and provided a broader value proposition to the customers.”

Are carriers falling below the active transaction threshold leaving the platform, or simply not executing enough transactions, and how does Freightos engage with them?

Carriers falling below the threshold do not leave the platform; they remain active but with fewer transactions. Freightos proactively reaches out to them to understand their needs and maximize the platform's value for them. “You're totally right on that. They didn't fall off the platform. They are still on the platform, and we still see that they continue to do some bookings. We reach out directly to them to see how can we help them and how can we maximize the value of the platform with them.”

What was the cash change this quarter, and what is the expected cash burn until reaching cash flow positive?

Cash decreased by $2.1 million, from $23.5 million to $21.4 million. Cash burn is expected to be similar to adjusted EBITDA for the rest of the year, with an additional burn of no more than $500,000 in early next year until becoming cash positive. “We went from $23.5 million in cash at the end of Q1 to $21.4 million in cash at the end of Q2, so that's a $2.1 million change. ... We expect to burn for the rest of the year what we are guiding the market at. And probably for the beginning of next year, adding no more than $500,000 on top of that until we become cash positive.”

CRGO

Freightos (CRGO) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Industrials· Aug 17, 2026

Source: earnings call transcript

Executive summary

Freightos Q2 FY26 — Record Revenue and Improved Adjusted EBITDA

Freightos delivered record Q2 revenues and significantly improved adjusted EBITDA, driven by strong Platform performance and tight cost discipline. While the Solutions segment faces execution challenges and revenue decline, the company is focused on unifying its product offering and expects to reach adjusted EBITDA breakeven by Q4 FY26 and become cash generative by mid-2027, ensuring financial stability for future growth.

Highlights

Record revenues of $7.7 million, exceeding expectations.
Adjusted EBITDA loss improved to a record low negative $2 million.
Platform revenue grew 19% year-over-year to $2.9 million.
Platform facilitated 458,000 transactions, up 15% year-over-year.
Gross booking value (GBV) reached a record $422 million, up 33% year-over-year.
Non-IFRS gross margin improved to 74.1% from 73.5% in Q2 last year.

Concerns

Solutions revenue declined 4% year-over-year to $4.8 million.
Middle East conflict continued to weigh on booking volumes in affected corridors.
SaaS execution challenges and pricing pressure on renewals for Solutions segment.
Clearit refund claims activity, a temporary contributor to Q2 outperformance, is not expected to repeat at the same level.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year Transactions Growth	12% to 14% year-on-year high materiality	FY26	High
Full-year Gross Booking Value (GBV) Growth	19% to 21% year-on-year high materiality	FY26	High
Q3 Revenue	$7.7 million to $7.8 million high materiality	Q3 · FY26	High
Full-year Revenue	$30.4 million to $31.0 million high materiality	FY26	High
Q3 Adjusted EBITDA	negative $1.3 million to $1.2 million high materiality	Q3 · FY26	High
Q4 Adjusted EBITDA	loss lower than $1 million high materiality	Q4 · FY26	High
Adjusted EBITDA Breakeven	at some point during the fourth quarter high materiality	Q4 · FY26	High
Cash Generative	by mid-2027 high materiality	Mid-2027	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Platform Outperformance driven by the breadth of the revenue base, with Clearit activity offsetting Middle East conflict impact. Transactions excluding Middle East affected routes grew 20% to 30% YoY. Transactions: 458,000Transactions growth YoY: 15%Gross Booking Value (GBV): $422 millionGBV growth YoY: 33%Active carrier count: 75	$2.9 million	19%	—	—
Solutions Revenue was down year-on-year due to execution gaps identified in 2025 and pricing pressure on renewals. The company is focused on improving conversion rates and sales cycle duration in H2. New bookings: not sufficient to cover shortfallPipeline growth QoQ: 30%	$4.8 million	-4%	—	—

Orderbook & backlog

Gross Booking Value (GBV) $422 million Q2 FY26

up 33% YoY

Record level, reflecting transaction volume and high average air freight rates.

Transactions 458,000 Q2 FY26

up 15% YoY

Excluding Middle East affected routes, transactions grew 20% to 30% YoY, in line with long-term model.

Deals & partnerships

Korean Air Addition to Freightos' network as a major Asian cargo airline.

This is an important milestone for expanding airline participation in Asia, a strategic priority. Increases data flow through the network.

Yaron Eldad Appointment as Freightos' new Chief Financial Officer.

Yaron Eldad brings over 25 years of senior financial leadership experience, including public company and international operating experience.

Capital programs

Cost Optimization Actions on track

Start: March 2026

Benefit:Operational benefit, full financial impact in Q4

Actions announced in March are on track and beginning to show operational benefits, with full financial impact expected in Q4.

Risks & headwinds

Middle East Conflict Impact on Booking Volumes Q2 FY26 and ongoing

Continued to weigh on booking volumes in affected corridors; routes still disruptive.

Mitigation:Platform's broad revenue base (e.g., Clearit) provided offsetting tailwinds.

Solutions Segment Execution Gaps Identified during 2025, impacting Q2 FY26

4% year-over-year revenue decline; new bookings not sufficient to cover shortfall; pricing pressure on renewals.

Mitigation:Sharper prioritization, disciplined changes, focus on accelerating pipeline conversion into bookings and recurring revenue in H2.

Temporary Nature of Clearit Contribution Q3 FY26, Q4 FY26

Meaningful, largely temporary contributor to Q2 outperformance; moderate contribution expected in Q3, smaller in Q4.

Mitigation:Importance of having a broad Platform revenue base to offset fluctuations.

Market Uncertainty and Budget Constraints Ongoing

Customers rethinking value and spending due to uncertainty; some budget constraints.

Mitigation:Improving value proposition through unified platform and new features; focusing on demonstrating clear ROI.

Competition and Pricing Pressure Ongoing

Competition trying to get prices down.

Mitigation:Focusing on execution and demonstrating clear ROI to customers.

What to watch in Q3 FY26

Solutions pipeline conversion

H2 FY26

Current Pipeline up 30% QoQ, but execution not where it needs to be.

Target Increased bookings, implementations, and recurring revenue.

Why it matters

Essential for long-term growth and revenue acceleration in 2027.

On the Solutions side, execution is not yet where it needs to be. Our priority for the second half is converting customer demand into bookings, implementations and recurring revenue.

Find out whether CRGO delivers this. Inve re-checks your case every morning.

Q&A highlights

Given market volatility, which should favor Solutions, what changes are being made to improve execution in the second half?

The unified platform approach and enhanced product capabilities are improving the pipeline. However, market uncertainty and budget constraints make customers cautious, and there's pricing competition. The focus is on executing to shorten sales cycles and close deals more effectively.

“We see from a market perspective that there is a lot of uncertainty in the market still. So that makes the customers to rethink and think the value how to spent the budget that they have, so with some budget constraints, and we also see some competition from a pricing perspective that are trying to get the prices down.”

asked by George Sutton · answered by Pablo Pinillos

2 min read 5 chapters

Detailed narrative

Strategic Focus and Transition Year

Freightos views 2026 as a transition year, emphasizing disciplined execution, tighter prioritization, and building a robust foundation for long-term growth. The company aims to solidify its position as the infrastructure layer connecting the global freight industry. Key achievements in Q2 include strengthening network connectivity with the addition of Korean Air and maintaining 75 active carriers, driving 15% transaction growth and a record $422 million in Gross Booking Value.

ONE Freightos Initiative and Product Unification

The company is unifying its diverse product portfolio under a single 'ONE Freightos' identity. This initiative aims to integrate capabilities across market intelligence, procurement, booking, and shipment management, providing a seamless customer experience. A critical aspect is multi-modality, enabling management of ocean, air, and land freight within a single platform, which is expected to be a key long-term differentiator and drive broader customer adoption.

Product Development and AI Integration

Product investments are concentrated on developing deeper workflow solutions for both enterprise shippers and freight forwarders, such as enhancing Freightos Procure for end-to-end tender processes. The underlying architecture is being modernized onto a common technology foundation to accelerate innovation and AI-assisted development. AI is being embedded directly into customer operations to improve decision-making across procurement, pricing, booking, and execution.

Solutions Segment Performance and Future Focus

The Solutions segment experienced a 4% year-over-year revenue decline, attributed to execution gaps identified in 2025 and pricing pressure on renewals. Despite a healthy pipeline, which grew 30% quarter-over-quarter, the company acknowledges the need to improve conversion rates and sales cycle duration.

The priority for the second half of the year is to accelerate pipeline conversion into bookings, implementations, and recurring revenue to drive growth in 2027.

Financial Discipline and Path to Profitability

Freightos achieved a record low adjusted EBITDA loss of negative $2 million in Q2, primarily due to disciplined cost management and focused investment. Cost optimization actions initiated in March are on track, with full financial benefits expected in Q4. The company ended the quarter with $21.4 million in cash and short-term deposits, and is on track to reach adjusted EBITDA breakeven by Q4 FY26 and become cash generative by mid-2027.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.