Freightos Limited Ordinary shares Q2 2026 Earnings Call Summary

Freightos Limited reported strong Q2 2026 earnings during its shareholder meeting. The company's management described 2026 as a transition year, emphasizing disciplined execution and tighter focus on long-term growth. Platform revenue increased by 19% due to resilience in the global offering and a temporary boost from customs refunds, while solutions revenue fell 4% amid execution challenges and pricing pressures.

Despite Middle East route disruptions, transaction growth remained robust at 15%, with the exception of affected routes. The addition of Korean Air expanded the company's presence in the Asian cargo market. Freightos consolidated its product portfolio under the ONE Freightos brand to streamline customer value proposition and streamline procurement processes. The company's operating discipline improved, with a record low adjusted EBITDA loss, thanks to cost-cutting measures initiated in March.

Management projects reaching an adjusted EBITDA break-even point by the end of Q4 2026 and becoming cash flow generative by mid-2027. The company anticipates moderate revenue growth for the second half of 2026, with a slight decline in contributions from the high-margin Clearit refunds. Freightos is focused on converting its sales pipeline into confirmed bookings and recurring revenue during the second half of the year.

The company faces pricing pressure on SaaS renewals and procurement budget scrutiny, which could impact the Solutions segment. Freightos reported a temporary decrease in active carriers to 75, but the platform remains operational with these carriers. The company is migrating products to a common technology foundation to facilitate AI-assisted development and speed up innovation cycles.

Freightos expects the Q2 cash decrease of $2.1 million to align closely with the adjusted EBITDA loss of $2 million. The company projects approximately $500,000 in additional cash burn in early 2027, which will turn positive thereafter. Management noted that while the pipeline grew by 30% quarter-over-quarter, they must enhance conversion rates by demonstrating clear ROI amid customer budget constraints.

To combat renewal pressure, Freightos plans to move customers to a unified platform with broader multi-modal capabilities and new features. The company expects increased usage among existing customers due to network effects, with transaction frequency for existing forwarders rising by 5x to 7x over four quarters.