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    CRGO
    Earnings call· Jun 2026(Q2 FY26)

    Freightos Q2 FY26 earnings call CRGO

    Aug 17, 2026 Source

    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

    6

    • 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

    4

    • 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

    8
    CategoryTargetConfidence
    Full-year Transactions Growth
    12% to 14% year-on-year
    high materiality
    High
    Full-year Gross Booking Value (GBV) Growth
    19% to 21% year-on-year
    high materiality
    High
    Q3 Revenue
    $7.7 million to $7.8 million
    high materiality
    High
    Full-year Revenue
    $30.4 million to $31.0 million
    high materiality
    High
    Q3 Adjusted EBITDA
    negative $1.3 million to $1.2 million
    high materiality
    High
    Q4 Adjusted EBITDA
    loss lower than $1 million
    high materiality
    High
    Adjusted EBITDA Breakeven
    at some point during the fourth quarter
    high materiality
    High
    Cash Generative
    by mid-2027
    high materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    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 million19%——
    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%——

    Operational metrics

    6
    Non-IFRS Gross Margin
    74.1%up from 73.5% in Q2 last year
    Q2 FY26

    Demonstrating efficiency gains.

    Adjusted EBITDA
    negative $2 millionrecord low
    Q2 FY26

    Primarily due to disciplined cost management and focused investment approach.

    Cash and Short-term Deposits
    $21.4 million
    Q2 FY26

    As of the end of Q2.

    Cash Burn
    $2.1 millionfrom $23.5 million in Q1 to $21.4 million in Q2
    Q2 FY26

    Expected to be similar to adjusted EBITDA for the rest of the year, with no more than $500,000 additional burn in early next year.

    Solutions Pipeline Growth
    30%quarter-on-quarter
    Q2 FY26

    Pipeline is healthy but needs better conversion into bookings and revenue.

    Average Air Freight Rates
    25%above pre-conflict levels
    Q2 FY26

    Contributed to higher GBV.

    Industry KPIs

    6
    MetricValueDetails
    Long term targetsBreakeven by Q4 FY26, cash generative by mid-2027
    Average daily volume458,000transactions
    Revenue per piece yieldUp 33%%
    Cost reduction program progressOn track
    International trade lane trendsDisruptive
    Workforce structural cost itemsOn track

    Orderbook & backlog

    2
    Gross Booking Value (GBV)$422 millionQ2 FY26

    up 33% YoY

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

    Transactions458,000Q2 FY26

    up 15% YoY

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

    Deals & partnerships

    2
    Korean AirAddition 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 EldadAppointment 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

    1
    Cost Optimization Actionson 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

    5
    Middle East Conflict Impact on Booking VolumesQ2 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 GapsIdentified 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 ContributionQ3 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 ConstraintsOngoing

    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 PressureOngoing

    Competition trying to get prices down.

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

    What to watch in Q3 FY26

    5

    Solutions pipeline conversion

    H2 FY26
    CurrentPipeline up 30% QoQ, but execution not where it needs to be.
    TargetIncreased 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.

    Q&A highlights

    6

    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 read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.