Q4 2025 Freightos Ltd Earnings Call

February 23, 2026

Operator: to Pablo.

Udo Lange: to Pablo.

Speaker #1: You, Pablo.

Speaker #2: Thank you, Udol, for the boards I'm going to support, and good morning, everyone. I want to walk you through our priorities before discussing performance.

Pablo: Thank you, Udo, for the board's ongoing support, and good morning, everyone. I want to walk you through our priorities before discussing performance. As interim CEO, my priority is disciplined execution and delivering on our short-term commitments while positioning us for a long-term growth. Over the past months, I've worked closely with the leadership team to establish a focused plan of a strong execution and improve predictability. Especially, our commitment to reach breakeven adjusted EBITDA in Q4 this year as a forcing function for discipline. It requires prioritization, accountability, and a focus on initiatives that strengthen unit economics and durable growth in the short term. We are concentrating our efforts in three areas: go-to-market execution, a solution-first focus, and even sharper cost discipline and operating efficiency.

Pablo Pinillos: Thank you, Udo, for the board's ongoing support, and good morning, everyone. I want to walk you through our priorities before discussing performance. As interim CEO, my priority is disciplined execution and delivering on our short-term commitments while positioning us for a long-term growth. Over the past months, I've worked closely with the leadership team to establish a focused plan of a strong execution and improve predictability. Especially, our commitment to reach breakeven adjusted EBITDA in Q4 this year as a forcing function for discipline. It requires prioritization, accountability, and a focus on initiatives that strengthen unit economics and durable growth in the short term. We are concentrating our efforts in three areas: go-to-market execution, a solution-first focus, and even sharper cost discipline and operating efficiency.

Speaker #2: As interim CEO, my priority is disciplined execution and delivering on our short-term commitments, while positioning us for long-term growth. Over the past months, I've worked closely with the leadership team to establish a focused plan for strong execution and improved predictability.

Speaker #2: Especially our commitment to reach break-even adjusted EBITDA in Q4 this year as a forcing function for discipline. It requires prioritization, accountability, and a focus on initiatives that strengthen unit economics and durable growth in the short term.

Speaker #2: We are concentrating our efforts in three areas: go-to-market execution, a solution-first focus, and even sharper cost discipline and operating efficiency. We are, in parallel, preparing for our next phase of growth and validating the initiatives that can drive durable acceleration in 2027 and beyond.

Pablo: We are in parallel preparing for our next phase of growth and validating the initiatives that can drive durable acceleration in 2027 and beyond. This work is focused on areas where we see clear product market fit, a strong return of investments, and repeatable sales motion. The goal is to enter 2027 with initiatives that are already tested and measurable, all while supporting our expansion from supporting spot bookings at the scale towards both contracts and tenders, as well as ocean. Let me walk through our Q4 and full year performance, and then I will return to our 2026 priorities. We delivered results in line with guidance, demonstrating our dedication to executing to our commitments. Full year 2025 revenue grew 24%. Despite a volatile global trade environment, transactions and GPV continued to grow year-over-year.

Pablo Pinillos: We are in parallel preparing for our next phase of growth and validating the initiatives that can drive durable acceleration in 2027 and beyond. This work is focused on areas where we see clear product market fit, a strong return of investments, and repeatable sales motion. The goal is to enter 2027 with initiatives that are already tested and measurable, all while supporting our expansion from supporting spot bookings at the scale towards both contracts and tenders, as well as ocean. Let me walk through our Q4 and full year performance, and then I will return to our 2026 priorities. We delivered results in line with guidance, demonstrating our dedication to executing to our commitments. Full year 2025 revenue grew 24%. Despite a volatile global trade environment, transactions and GPV continued to grow year-over-year.

Speaker #2: This work is focused on areas where we see clear product-market fit, a strong return on investment, and a repeatable sales motion. The goal is to enter 2027 with initiatives that are already tested and measurable, all while supporting our expansion from supporting spot bookings at scale towards both contracts and tenders, as well as ocean.

Speaker #2: Let me walk through our fourth quarter and full-year performance, and then I will return to our 2026 priorities. With delivery results in line with guidance, demonstrating our dedication to executing to our commitments.

Speaker #2: Full-year 2025 revenue grew 24%. Despite a volatile global trade environment, transactions and GVV continue to grow year over year. Solutions growth was comparatively softer, as we have discussed during the year, and that informs our priorities for 2026.

Pablo: Solutions growth was comparatively softer, as we have discussed during the year, and that informs our priorities for 2026. As I will share later, I believe we have a strong potential here to grow. In Q4, we delivered our 24th consecutive quarter of record transactions. That's already six years, reaching 445,000 bookings, up 27% year-over-year, and modestly above expectations. Our active carrier network remained at a record of 77 carriers and changed from Q3 and up from 67 in Q4 2024. More carriers are in the integration phase. We are now integrated to airlines that represent around 80% of global carrier capacity, but continue to see upside. That said, new carrier logos are just one driver of transactions growth. Another meaningful driver is increased utilization, existing carriers adding lines, expanding capacity distribution, new services, and organic like-for-like growth.

Pablo Pinillos: Solutions growth was comparatively softer, as we have discussed during the year, and that informs our priorities for 2026. As I will share later, I believe we have a strong potential here to grow. In Q4, we delivered our 24th consecutive quarter of record transactions. That's already six years, reaching 445,000 bookings, up 27% year-over-year, and modestly above expectations. Our active carrier network remained at a record of 77 carriers and changed from Q3 and up from 67 in Q4 2024. More carriers are in the integration phase. We are now integrated to airlines that represent around 80% of global carrier capacity, but continue to see upside. That said, new carrier logos are just one driver of transactions growth. Another meaningful driver is increased utilization, existing carriers adding lines, expanding capacity distribution, new services, and organic like-for-like growth.

Speaker #2: As I will share later, I believe we have strong potential here to grow. In Q4, we delivered our 24th consecutive quarter of record transactions—that's already six years.

Speaker #2: Reaching 445,000 bookings, up 27% year over year and modestly above expectations. Our active carrier network remained at the record of 77 carriers, unchanged from Q3 and up from 67 in Q4 2024.

Speaker #2: More carriers are in the integration phase. We are now integrated to airlines that represent around 80% of global carrier capacity, but continue to see upside.

Speaker #2: That said, new carriers' logos are just one driver of transactions growth. Another meaningful driver is increased utilization: existing carriers adding lines, expanding capacity distribution, new services, and organic like-for-like growth.

Speaker #2: Just for context, over 95% of the new unique lines that were booked in 2025 were added by carriers that had joined us before 2025.

Pablo: Just for context, over 95% of the new unique lines that were booked in 2025 were added by carriers that had joined us before 2025. Gross booking value reached $357 million in Q4, up 27% year-over-year. Even though the majority of our transactions are monetized on a flat fee basis and not directly tied to GPV, it remains as an indicator of ecosystem liquidity and the growing strategic relevance of the platform within digital freight workflows. On the solution side, during the quarter, two of the largest global freight forwarders selected Freightos solutions on a global level for new or expanded services, following rigorous evaluations and pilot phases. Beyond our air solution, one of these also selected our ocean rate management and quoting solution as part of their deployment.

Pablo Pinillos: Just for context, over 95% of the new unique lines that were booked in 2025 were added by carriers that had joined us before 2025. Gross booking value reached $357 million in Q4, up 27% year-over-year. Even though the majority of our transactions are monetized on a flat fee basis and not directly tied to GPV, it remains as an indicator of ecosystem liquidity and the growing strategic relevance of the platform within digital freight workflows. On the solution side, during the quarter, two of the largest global freight forwarders selected Freightos solutions on a global level for new or expanded services, following rigorous evaluations and pilot phases. Beyond our air solution, one of these also selected our ocean rate management and quoting solution as part of their deployment.

Speaker #2: Gross booking value reached $357 million in Q4, up 27% year over year. Even though the majority of our transactions are monetized on a flat-fee basis and not directly tied to GBV, it remains an indicator of ecosystem liquidity and the growing strategic relevance of the platform within digital freight workflows.

Speaker #2: On the solutions side, during the quarter, two of the largest global freight power selective freight solutions on a global level for new or expanded services, following rigorous evaluations and pilot phases.

Speaker #2: Beyond our air solution, one of these also selected our ocean rate management and quoting solution as part of their deployment. We also have seen ongoing expansions from our forwarder customers that are using us for procurement.

Pablo: We also have seen ongoing expansions from our forwarders customers that are using us for procurement. In general, we are seeing broader value emerging from the full extent of our stack, spanning procurement, tender management, rate management, quoting, booking, and sales, as well as our deep integrations. For enterprise shippers, as well as our expansion of our procurement and intelligence offerings for forwarders, the value proposition of our solutions is straightforward: enabling better and faster sourcing decisions and running procurement end-to-end in a single workflow supported by trusted market data. As a reminder, Procure is our enterprise tender management solution, and Terminal is our market intelligence and benchmarking data solution. In Q4, we advanced our value proposition by embedding Terminal's ocean benchmark directly into Procure. This allows customers to compare carriers bids against independent market benchmarks within the same tender workflow and without leaving the interface.

Pablo Pinillos: We also have seen ongoing expansions from our forwarders customers that are using us for procurement. In general, we are seeing broader value emerging from the full extent of our stack, spanning procurement, tender management, rate management, quoting, booking, and sales, as well as our deep integrations. For enterprise shippers, as well as our expansion of our procurement and intelligence offerings for forwarders, the value proposition of our solutions is straightforward: enabling better and faster sourcing decisions and running procurement end-to-end in a single workflow supported by trusted market data. As a reminder, Procure is our enterprise tender management solution, and Terminal is our market intelligence and benchmarking data solution. In Q4, we advanced our value proposition by embedding Terminal's ocean benchmark directly into Procure. This allows customers to compare carriers bids against independent market benchmarks within the same tender workflow and without leaving the interface.

Speaker #2: In general, we are seeing broader value emerging from the full extent of our stack, spanning procurement, tender management, rate management, quoting, booking, and sales, as well as our deep integrations.

Speaker #2: For enterprise shippers, as well as our expansion of our procurement and intelligence offerings for forwarders, the value proposition of our solutions is straightforward: enabling better and faster sourcing decisions, and running procurement end-to-end in a single workflow supported by trusted market data.

Speaker #2: As a reminder, Procur is our enterprise tender management solution, and Terminal is our market intelligence and benchmarking data solution. In Q4, we advanced our value proposition by embedding Terminal's ocean benchmark directly into Procur.

Speaker #2: This allows customers to compare carriers' bids against independent market benchmarks within the same tender workflow, and without leaving the interface. An equivalent solution for air procurement is currently in development.

Pablo: An equivalent solution for air procurement is currently in development. This integration improves transparency and reduces friction in the tender process, while increasing the strategic relevance of our solution procurement teams. That said, solutions momentum was softer than we anticipated going into the year. As we said on prior earnings calls, enterprise sales cycles increased in 2025, with budget cautions pushing decisions out. This environment also highlighted areas where we must tighten execution. Those are in product delivery and in the go-to-market. We are sequencing 2026 as a solution-first year, concentrating our efforts on solutions adoption and product quality, which will allow the platform to grow more organically in the near term. What we found in the invest, is that investing more in our solution business is the best way to both improve and retain sustainable revenue, while also improving our long-term transaction growth and its monetization.

Pablo Pinillos: An equivalent solution for air procurement is currently in development. This integration improves transparency and reduces friction in the tender process, while increasing the strategic relevance of our solution procurement teams. That said, solutions momentum was softer than we anticipated going into the year. As we said on prior earnings calls, enterprise sales cycles increased in 2025, with budget cautions pushing decisions out. This environment also highlighted areas where we must tighten execution. Those are in product delivery and in the go-to-market. We are sequencing 2026 as a solution-first year, concentrating our efforts on solutions adoption and product quality, which will allow the platform to grow more organically in the near term. What we found in the invest, is that investing more in our solution business is the best way to both improve and retain sustainable revenue, while also improving our long-term transaction growth and its monetization.

Speaker #2: This integration improves transparency and reduces friction in the tender process, while increasing the strategic relevance of our solution procurement teams. That said, solutions' momentum was softer than we anticipated going into the year.

Speaker #2: As we said on prior earnings calls, enterprise sales cycles increased in 2025, with budget cautions pushing decisions out. This environment also highlighted areas where we must tighten execution.

Speaker #2: Those are in product delivery and in the go-to-market. We are sequencing 2026 as a solution-first year, concentrating our efforts on solutions adoption and product quality.

Speaker #2: Which will allow the platform to grow more organically in the near term. What we found in the past is that investing more in our Solutions business is the best way to both improve and retain sustainable revenue, while also improving our long-term transaction growth and its monetization.

Speaker #2: Across the portfolio, investments are being evaluated through a more strict filter of customer impact, delivery reliability, and return of invested capital. We are concentrated on making strong product integrations and moving from individual tools to a more coherent end-to-end workflow.

Pablo: Across the portfolio, investments are being evaluated through a more strict filter of customer impact, delivery, reliability, and return of invested capital. We are concentrated on making a strong product integrations and moving from individual tools to a more coherent end-to-end workflow. As our solutions become more deeply embedded in customers' daily operations, the economic value speaks for itself, and decision cycles become more straightforward. On the go-to-market in 2026, we are adopting an even more disciplined model, focused on driving more consistent expansion within our base. We believe that we can generate more sales and do so more efficiently by better leveraging our full solutions and platform ecosystem.

Pablo Pinillos: Across the portfolio, investments are being evaluated through a more strict filter of customer impact, delivery, reliability, and return of invested capital. We are concentrated on making a strong product integrations and moving from individual tools to a more coherent end-to-end workflow. As our solutions become more deeply embedded in customers' daily operations, the economic value speaks for itself, and decision cycles become more straightforward. On the go-to-market in 2026, we are adopting an even more disciplined model, focused on driving more consistent expansion within our base. We believe that we can generate more sales and do so more efficiently by better leveraging our full solutions and platform ecosystem.

Speaker #2: As our solutions become more deeply embedded in customers' daily operations, the economic value speaks for itself, and decision cycles become more straightforward. On the go-to-market, in 2026, we are adopting an even more disciplined model, focused on driving more consistent expansion within our base.

Speaker #2: We believe that we can generate more sales, and do so more efficiently, by better leveraging our full solutions and platform ecosystem. This includes both expanding share of wallet from our existing enterprise customers with better cross-sales of the full range of offerings we have, as well as leveraging cross-network effects so that, for example, shippers introduce us to more forwarders, who then introduce us to more shippers.

Pablo: This includes both expanding shares of wallet from our existing enterprise customers with better cross-sales of the full range of offerings we have, as well as leveraging cross-network effects, so that, for example, shippers introduce us to more forwarders, who then introduce us to more shippers. With that in mind, we have revamped our sales and go-to-market approach based on a deep customer research and an expanded commitment to quality and innovation, and to the maximum value toward our customers. The objective is clear: increase sales productivity, accelerate new sales and acquisitions of new logos, and drive more reliable renewals and upsell performance. Let me pass it on to Ian to discuss our strategy in more detail, including our belief that a more rigorous focus on solutions is the best long-term driver of both transactions and sustainable revenue growth.

Pablo Pinillos: This includes both expanding shares of wallet from our existing enterprise customers with better cross-sales of the full range of offerings we have, as well as leveraging cross-network effects, so that, for example, shippers introduce us to more forwarders, who then introduce us to more shippers. With that in mind, we have revamped our sales and go-to-market approach based on a deep customer research and an expanded commitment to quality and innovation, and to the maximum value toward our customers. The objective is clear: increase sales productivity, accelerate new sales and acquisitions of new logos, and drive more reliable renewals and upsell performance. Let me pass it on to Ian to discuss our strategy in more detail, including our belief that a more rigorous focus on solutions is the best long-term driver of both transactions and sustainable revenue growth.

Speaker #2: With that in mind, we have revamped our sales and go-to-market approach, based on deep customer research and an expanded commitment to quality and innovation, and to delivering maximum value to our customers.

Speaker #2: The objective is clear: increase sales productivity, accelerate new sales and acquisitions of new logos, and drive more reliable renewals and upsell performance. Let me pass it on to Ian to discuss our strategy in more detail, including our belief that a more rigorous focus on solutions is the best long-term driver of both transactions and sustainable revenue growth.

Speaker #1: Thanks, Pablo, and good morning, everyone. Our strategy is to build durable workflow ownership based on a foundation of SaaS solutions that create sustained, tangible value for shippers, carriers, and forwarders throughout their procurement, pricing, booking, and sales lifecycle.

Ian: Thanks, Pablo, and good morning, everyone. Our strategy is to build durable workflow ownership based on a foundation of SaaS solutions that create sustained, tangible value for shippers, carriers, and forwarders throughout their procurement, pricing, booking, and sales life cycle. When we deliver that value, we've seen firsthand how it improves transaction growth at scale, and it also improves our pricing power and operating leverage over time. We've proven this model in digital air cargo as we built an industry-first digital infrastructure layer that drove adoption by supporting forwarder workflows. This directly led to reliable transaction volume. Solutions supported business processes. Those processes created liquidity, and liquidity created scale. We're now extending that same playbook in two directions: expanding to ocean as a new mode, as well as expanding to tendering, which represents the lion's share of freight booked.

Ian Arroyo: Thanks, Pablo, and good morning, everyone. Our strategy is to build durable workflow ownership based on a foundation of SaaS solutions that create sustained, tangible value for shippers, carriers, and forwarders throughout their procurement, pricing, booking, and sales life cycle. When we deliver that value, we've seen firsthand how it improves transaction growth at scale, and it also improves our pricing power and operating leverage over time. We've proven this model in digital air cargo as we built an industry-first digital infrastructure layer that drove adoption by supporting forwarder workflows. This directly led to reliable transaction volume. Solutions supported business processes. Those processes created liquidity, and liquidity created scale. We're now extending that same playbook in two directions: expanding to ocean as a new mode, as well as expanding to tendering, which represents the lion's share of freight booked.

Speaker #1: When we deliver that value, we've seen firsthand how it improves transaction growth at scale, and it also improves our pricing power and operating leverage over time.

Speaker #1: We've proven this model in digital air cargo, as we built an industry-first digital infrastructure layer that drove adoption by supporting forwarder workflows. This directly led to reliable transaction volume, solutions supported business processes, those processes created liquidity, and liquidity created scale.

Speaker #1: We're now extending that same playbook into new directions, expanding to ocean as a new mode, as well as expanding to tendering, which represents the lion's share of freight booked.

Speaker #1: We're doing this by expanding carrier connectivity, integrating procurement and data tools to support end-to-end workflows, and leveraging our network of forwarders and global shippers to drive adoption across both sides of the marketplace.

Ian: We're doing this by expanding carrier connectivity, integrating procurement and data tools to support end-to-end workflows, leveraging our network of forwarders and global shippers to drive adoption across both sides of the marketplace. This shift to a solutions-first strategy is supported by a modular, API-driven architecture designed to integrate into existing freight workflows rather than replace them. Our solutions are built as independent components that are already natively embedded into TMS platforms, ERPs, procurement systems, execution layers, and carrier tools, allowing our customers to adopt functionality incrementally and at scale. We are increasingly leveraging AI-enabled automation to support decision-making and execution within these workflows, always in a way that enhances reliability and control. This approach ensures our software remains flexible, scalable, and aligned with how our customers are modernizing their operations. You can think of this as three strategic pillars.

Ian Arroyo: We're doing this by expanding carrier connectivity, integrating procurement and data tools to support end-to-end workflows, leveraging our network of forwarders and global shippers to drive adoption across both sides of the marketplace. This shift to a solutions-first strategy is supported by a modular, API-driven architecture designed to integrate into existing freight workflows rather than replace them. Our solutions are built as independent components that are already natively embedded into TMS platforms, ERPs, procurement systems, execution layers, and carrier tools, allowing our customers to adopt functionality incrementally and at scale. We are increasingly leveraging AI-enabled automation to support decision-making and execution within these workflows, always in a way that enhances reliability and control. This approach ensures our software remains flexible, scalable, and aligned with how our customers are modernizing their operations. You can think of this as three strategic pillars.

Speaker #1: This shift to a solutions-first strategy is supported by a modular, API-driven architecture designed to integrate into existing freight workflows rather than replace them. Our solutions are built as independent components that are already natively embedded into TMS platforms, ERPs, procurement systems, execution layers, and carrier tools.

Speaker #1: Allowing our customers to adopt functionality incrementally and at scale. We are increasingly leveraging AI-enabled automation to support decision-making and execution within these workflows, but always in a way that enhances reliability and control.

Speaker #1: This approach ensures our software remains flexible, scalable, and aligned with how our customers are modernizing their operations. You can think of this as three strategic pillars.

Speaker #1: The first is air, where we have already established market leadership. We estimate our global share of air bookings is in the low to mid-teens.

Ian: The first is air, where we have already established market leadership. We estimate our global share of air bookings is in the low to mid-teens. In 2026, the focus is on adding contract rates, again, supported by our procurement solution, deepening penetration with large forwarders through integrations and expansions, and selectively expanding monetization as usage continues to scale, and where we provide more value, like in payments. The second is ocean, which is earlier in the cycle, much like where our air product was 6 years ago. We launched Ocean Rate and Quote towards the end of 2025. The priority now is making it a daily operating system for forwarders. As workflow adoption increases and carrier connectivity deepens, real-time bookings will follow. We expect booking flow to begin in 2026, to become truly meaningful in 2028. The third trajectory is tendering and procurement.

Ian Arroyo: The first is air, where we have already established market leadership. We estimate our global share of air bookings is in the low to mid-teens. In 2026, the focus is on adding contract rates, again, supported by our procurement solution, deepening penetration with large forwarders through integrations and expansions, and selectively expanding monetization as usage continues to scale, and where we provide more value, like in payments. The second is ocean, which is earlier in the cycle, much like where our air product was 6 years ago. We launched Ocean Rate and Quote towards the end of 2025. The priority now is making it a daily operating system for forwarders. As workflow adoption increases and carrier connectivity deepens, real-time bookings will follow. We expect booking flow to begin in 2026, to become truly meaningful in 2028. The third trajectory is tendering and procurement.

Speaker #1: In 2026, the focus is on adding contract rates, again supported by our procurement solution. Deepening penetration with large forwarders through integrations and expansions, and selectively expanding monetization as usage continues to scale and where we provide more value, like in payments.

Speaker #1: The second is ocean, which is earlier in the cycle, much like where our air product was six years ago. We launched ocean rate and quote towards the end of 2025, and the priority now is making it a daily operating system for forwarders.

Speaker #1: As workflow adoption increases and carrier connectivity deepens, real-time bookings will follow. We expect booking flow to begin in 2026, but to become truly meaningful in 2028.

Speaker #1: The third trajectory is tendering and procurement. With the acquisition of Shipsta and integration of Shipsta, we added the procurement layer to our platform. In 2026, we're strengthening procure and scaling adoption with enterprise customers.

Ian: With the acquisition of Shipsta and integration of Shipsta, we added the procurement layer to our platform. In 2026, we're strengthening procure and scaling adoption with enterprise customers. The objective is to connect awarded tenders directly into execution, linking contract sourcing to transactional flow. This closes the loop between planning and booking and expands the surface area for customer value and, of course, monetization. Both ocean and tender represent markets structurally larger than air, which significantly increases the long-term upside of this SaaS to booking model. All three trajectories are united by a single integrated value cycle. By expanding our offering to forwarders across air, ocean, and procurement workflows. We deepen our role in their operating processes and strengthen customer retention and expansion. That drives transaction flow, while the data further improves the intelligence and value we deliver to shippers and forwarders.

Ian Arroyo: With the acquisition of Shipsta and integration of Shipsta, we added the procurement layer to our platform. In 2026, we're strengthening procure and scaling adoption with enterprise customers. The objective is to connect awarded tenders directly into execution, linking contract sourcing to transactional flow. This closes the loop between planning and booking and expands the surface area for customer value and, of course, monetization. Both ocean and tender represent markets structurally larger than air, which significantly increases the long-term upside of this SaaS to booking model. All three trajectories are united by a single integrated value cycle. By expanding our offering to forwarders across air, ocean, and procurement workflows. We deepen our role in their operating processes and strengthen customer retention and expansion. That drives transaction flow, while the data further improves the intelligence and value we deliver to shippers and forwarders.

Speaker #1: The objective is to connect awarded tenders directly into execution, linking contract sourcing to transactional flow. This closes the loop between planning and booking, and expands the surface area for customer value and, of course, monetization.

Speaker #1: Both ocean and tender represent markets structurally larger than air, which significantly increases the long-term upside of this SaaS-to-booking model. All three trajectories are united by a single integrated value cycle. By expanding our offering to forwarders across air, ocean, and procurement workflows, we deepen our role in their operating processes and strengthen customer retention and expansion.

Speaker #1: That drives transaction flow, while the data further improves the intelligence and value we deliver to shippers and forwarders. This approach also improves unit economics over time by embedding workflows, strengthening retention, and lowering marginal CAC as we scale.

Ian: This approach also improves unit economics over time by embedding workflows, strengthening retention, and lowering marginal CAC as we scale. This is not three parallel initiatives. It is an interconnected strategy designed to deepen forwarder workflow ownership, improve shipper decision support, and build a scalable transaction engine. With that, I'll hand it back over to Pablo to walk us through the numbers.

Ian Arroyo: This approach also improves unit economics over time by embedding workflows, strengthening retention, and lowering marginal CAC as we scale. This is not three parallel initiatives. It is an interconnected strategy designed to deepen forwarder workflow ownership, improve shipper decision support, and build a scalable transaction engine. With that, I'll hand it back over to Pablo to walk us through the numbers.

Speaker #1: So this is not three parallel initiatives. It is an interconnected strategy designed to deepen forwarder workflow ownership, improve shipper decision support, and build a scalable transaction engine.

Speaker #1: With that, I'll hand it back over to Pablo to walk us through the numbers.

Speaker #2: Thanks, Ian. And now let's take a look at the numbers. Revenue for the quarter was $7.4 million, up 12% year over year. Platform revenue was up 13%, and solution revenue was up 12% year on year.

Pablo: Thanks, Ian. Now let's take a view on the numbers. Revenue for the quarter was $7.4 million, up 12% year-over-year. Platform revenue was up 13%, and solution revenue was up 12% year-over-year. Revenue for the full year was $29.5 million, up 24% year-over-year. Platform revenue grew 18%, and solutions revenue was up 27% from 2024. As noted earlier, solutions and platform are tightly linked. Solutions growth drives higher platform activity and monetization over time. Our cohort analysis illustrates the utilization point I made earlier. This is a view of platform bookings in Q4 2025 by selecting forwarder being touched and carriers being touched. It shows how transaction growth is driven by deeper engagement within the existing network, not only by adding new logos.

Pablo Pinillos: Thanks, Ian. Now let's take a view on the numbers. Revenue for the quarter was $7.4 million, up 12% year-over-year. Platform revenue was up 13%, and solution revenue was up 12% year-over-year. Revenue for the full year was $29.5 million, up 24% year-over-year. Platform revenue grew 18%, and solutions revenue was up 27% from 2024. As noted earlier, solutions and platform are tightly linked. Solutions growth drives higher platform activity and monetization over time. Our cohort analysis illustrates the utilization point I made earlier. This is a view of platform bookings in Q4 2025 by selecting forwarder being touched and carriers being touched. It shows how transaction growth is driven by deeper engagement within the existing network, not only by adding new logos.

Speaker #2: Revenue for the full year was $29.5 million, up 24% year over year. Platform revenue grew 18%, and solutions revenue was up 27% from 2024.

Speaker #2: As noted earlier, solutions and platform are tightly linked. Solutions growth drives higher platform activity and monetization over time. Our cohort analysis illustrates the utilization point I made earlier.

Speaker #2: This is a view of platform bookings in Q4 2025, by selecting forwarders being touched and carriers being touched. It shows how transaction growth is driven by deeper engagement within the existing network, not only by adding new logos.

Speaker #2: Gross margin was within our target range of 70% to 80%. In Q4, non-IFRS gross margin was 72.7%, down from 74.3% in Q4 2024.

Pablo: Gross margins were within our target range of 70% to 80%. In Q4, non-IFRS gross margin was 72.7%, down from 74.3% in Q4 2024. This is a result of both product mix and foreign exchange effect. For the full year, the non-IFRS gross margin of 73.7% was up 130 basis points compared to 2024, thanks to the operating leverage and customer service automation. Adjusted EBITDA was negative $2.7 million in Q4 2025 and negative $11.2 million for the full year. As we discussed in previous quarters, operational gains were made, but they continued to be masked by the currency headwinds. A stronger euro and Israeli shekel versus the US dollar reduced the gain in adjusted EBITDA compared to our operating performance.

Pablo Pinillos: Gross margins were within our target range of 70% to 80%. In Q4, non-IFRS gross margin was 72.7%, down from 74.3% in Q4 2024. This is a result of both product mix and foreign exchange effect. For the full year, the non-IFRS gross margin of 73.7% was up 130 basis points compared to 2024, thanks to the operating leverage and customer service automation. Adjusted EBITDA was negative $2.7 million in Q4 2025 and negative $11.2 million for the full year. As we discussed in previous quarters, operational gains were made, but they continued to be masked by the currency headwinds. A stronger euro and Israeli shekel versus the US dollar reduced the gain in adjusted EBITDA compared to our operating performance.

Speaker #2: This is a result of both product mix and foreign exchange effects. For the full year, the non-IFRS gross margin of 73.7% was up 130 basis points compared to 2024.

Speaker #2: Thanks to the operating leverage and customer service automation, adjusted EBITDA was negative $2.7 million in Q4 2025, and negative $11.2 million for the full year.

Speaker #2: As we discussed in previous quarters, operational gains were made, but they continue to be masked by the currency headwinds. A stronger euro and Israeli shekel versus the US dollar reduced the gain in adjusted EBITDA compared to our operating performance.

Speaker #2: We closed the quarter with $27.9 million in cash and short-term bank deposits, slightly better than our expectations. Now let's discuss guidance. Transactions and GVB growth for the first quarter of 2026, as well as for the full year, will continue to be strong.

Pablo: We closed the quarter with $27.9 million in cash and short-term back deposits, slightly better than our expectations. Now, let's discuss guidance. Transactions and GPV growth for Q1 2026, as well as for the full year, will continue to be strong, but around the low end of our long-term model, reflecting our priorities for the year. Our expectations for revenue growth in 2026 are directly affected by the solution softness we experienced throughout 2025. While retention remains solid, the longer sales cycles left a shortfall in new bookings, which is expected to affect near-term solutions revenue growth. For Q1 2026, we are expecting high single-digit revenue growth. For the full year, we expect 6% to 12%, with higher growth rates for platform than solutions.

Pablo Pinillos: We closed the quarter with $27.9 million in cash and short-term back deposits, slightly better than our expectations. Now, let's discuss guidance. Transactions and GPV growth for Q1 2026, as well as for the full year, will continue to be strong, but around the low end of our long-term model, reflecting our priorities for the year. Our expectations for revenue growth in 2026 are directly affected by the solution softness we experienced throughout 2025. While retention remains solid, the longer sales cycles left a shortfall in new bookings, which is expected to affect near-term solutions revenue growth. For Q1 2026, we are expecting high single-digit revenue growth. For the full year, we expect 6% to 12%, with higher growth rates for platform than solutions.

Speaker #2: But the round, the low end of our long-term model, reflecting our priorities for the year. Our expectations for revenue directly affected by the solution softness we experienced throughout 2025.

Speaker #2: While retention remains solid, the longer sales cycles left a shortfall in new bookings, which is expected to affect near-term Solutions revenue growth. So, for the first quarter of 2026, we are expecting high single-digit revenue growth.

Speaker #2: For the full year, we expect 6% to 12%, with higher growth rates for platform than solutions. We intend to continue our focus on cost discipline and operating efficiency.

Pablo: We intend to continue our focus on cost discipline and operating efficiency in order to deliver profitability improvements that will enable us to achieve adjusted EBITDA break even by Q4 this year. Reaching break even does not mean stopping investments. It means investing deliberately. We are aligning our cost structure with the scale of the business today, while preserving the ability to accelerate growth once execution fundamentals are firmly in place. Reaching break even in Q4 is expected to be driven roughly half by operating leverage from revenue growth and about the other half from a structural cost discipline. We expect this to leave us with a cash balance of approximately $20 million at the end of 2026. Our objective is simple: keep our commitment on break even, improve execution reliability, and position Freightos to scale from a position of strength.

Pablo Pinillos: We intend to continue our focus on cost discipline and operating efficiency in order to deliver profitability improvements that will enable us to achieve adjusted EBITDA break even by Q4 this year. Reaching break even does not mean stopping investments. It means investing deliberately. We are aligning our cost structure with the scale of the business today, while preserving the ability to accelerate growth once execution fundamentals are firmly in place. Reaching break even in Q4 is expected to be driven roughly half by operating leverage from revenue growth and about the other half from a structural cost discipline. We expect this to leave us with a cash balance of approximately $20 million at the end of 2026. Our objective is simple: keep our commitment on break even, improve execution reliability, and position Freightos to scale from a position of strength.

Speaker #2: In order to deliver profitability improvements that will enable us to achieve adjusted EBITDA break even by Q4 this year. Reaching break even does not mean stopping investments.

Speaker #2: It means investing deliberately. We are aligning our cost structure with the scale of the business today, while preserving the ability to accelerate growth once execution fundamentals are firmly in place.

Speaker #2: Reaching break even in Q4 is expected to be driven roughly half by operating leverage from revenue growth, and about the other half from structural cost discipline.

Speaker #2: We expect this to leave us with a cash balance of approximately $20 million at the end of 2026. Our objective is simple: keep our commitment on break-even, improve execution reliability, and position Freightos to scale from a position of strength.

Speaker #2: Thank you for your attention. We are now open to questions.

Pablo: Thank you for your attention. We are now open to questions.

Pablo Pinillos: Thank you for your attention. We are now open to questions.

Speaker #1: Thanks, Pablo. So we will start the Q&A session. The first question will come from the line of Jason Hellstein.

Operator: Thanks, Pablo. We will start the Q&A session. The first question will come from the line of Jason Helfstein.

Speaker #3: Hey, everybody. So, yeah, I completely agree that the strategy around solutions makes a lot of sense—that that's where, you could argue, the durable SaaS nature is.

Jason Helfstein: Hey, everybody. Yeah, completely agree that the strategy around solutions makes a lot of sense, that that's where kind of you could argue the durable SaaS nature is. I guess, has there been like a fundamental change in view of, let's say, now versus a year ago, as to how you need to go to market to grow that business? I guess, were there decisions made at some point in 2025 around cash flow that, you know, may have changed, you know, your strategy? I guess just to unpack, like, I think you, you, you kind of talked about how you want to go to market now. How, how has that changed versus a year ago? Then I've got a follow-up.

Speaker #3: I guess, has there been a fundamental change in view of, let's say, now versus a year ago, as to how you need to go to market to grow that business?

Speaker #3: And I guess, were there decisions made at some point in 2025 around cash flow that may have changed your strategy? So I guess just unpack—like, I think you kind of talked about how you want to go to market now.

Speaker #3: How has that changed versus a year ago? And then I've got a follow-up.

Speaker #2: Sure. And thank you for the question. So the go-to-market change is not a drastic change—it's a slight change, as Ian said.

Pablo: Sure, thank you for the question. The go-to-market change is not a drastic change, it's a slight change. As Ian said, we are a customer-led go-to-market based on the deep voice of customer work, you know? We drive solution-first workflow embedded across air, ocean, procurement, and tighter integrations and network effects. That's the focus that we want to drive, as we have said in the goal. With that, we also want to focus on priority, projects and priorities that we believe the return is much better and deprioritize the ones that we believe is not getting us to where we want to be right now. That would be really the shift in the go-to-market.

Pablo Pinillos: Sure, thank you for the question. The go-to-market change is not a drastic change, it's a slight change. As Ian said, we are a customer-led go-to-market based on the deep voice of customer work, you know? We drive solution-first workflow embedded across air, ocean, procurement, and tighter integrations and network effects. That's the focus that we want to drive, as we have said in the goal. With that, we also want to focus on priority, projects and priorities that we believe the return is much better and deprioritize the ones that we believe is not getting us to where we want to be right now. That would be really the shift in the go-to-market.

Speaker #2: Our customer-led go-to-market is based on deep voice of customer work. We drive solution first, workflow embedded across ocean procurement, and tighter TMS integrations and network effects.

Speaker #2: So that's the focus that we want to drive. As we have said in the call, with that, we also want to focus on projects and priorities that we believe the return is much better, and deprioritize the ones that we believe are not getting us to where we want to be right now.

Speaker #2: So that would be, really, the shift in the go-to-market.

Speaker #3: And has there been any kind of changes on the, I guess, on the headcount side, or like, can you maybe detail any operational changes you've made to kind of pursue, I guess, a more selective strategy, is what it sounds like, as to which clients you're focusing on deeper?

Jason Helfstein: Has there been any kind of changes on the, I guess, on the headcount side? Or like, like, can you maybe detail any operational changes you've made to kind of pursue, I guess, a more selective strategy, is what it sounds like, as to which clients you're focusing on deeper?

Speaker #2: So we are going to focus on the fewer ICP, higher ICV from focus targets, and overall execution improvements and go-to-market.

Pablo: We are gonna focus on the fewer ICP, higher ICV from focus targets, and overall execution improvements on go-to-market.

Pablo Pinillos: We are gonna focus on the fewer ICP, higher ICV from focus targets, and overall execution improvements on go-to-market.

Speaker #3: Okay, and then just a follow-up. Platform take rate did come down a little bit in the quarter, like 10 basis points or 7 basis points.

Jason Helfstein: Okay. Then just a follow-up. Platform take rate did come down a little bit in the quarter, like 10 basis points or 7 basis points. Just, is there any dynamic there that we need to be paying attention to, or is that just kind of like quarterly noise?

Speaker #3: Is there any dynamic there that we need to be paying attention to, or is that just kind of like quarterly noise?

Speaker #2: Well, I would say it's quarterly noise first. And second, something that we have always been repeating in the different calls—the take rate, if you take the take rate from the GVB, it's not directly aligned with one with the other.

Pablo: Well, I would say it's quarterly noise first, and second, something that we have always been repeating in the different calls. The take rate, if you take the take rate from the GBV, is not directly aligned with one with the other. Our majority of our of our revenue from transactions comes from a fixed fee on transactions. Then, depending on the volume of the, of the transactions that has a higher or lower fee, is where why you feel... It does feels if you do it mathematically, just GBV per the number of revenue and transactions, it seems it's lower. I can, I can tell you that no, our, our take rate has not decreased in any single one of our lines.

Pablo Pinillos: Well, I would say it's quarterly noise first, and second, something that we have always been repeating in the different calls. The take rate, if you take the take rate from the GBV, is not directly aligned with one with the other. Our majority of our of our revenue from transactions comes from a fixed fee on transactions. Then, depending on the volume of the, of the transactions that has a higher or lower fee, is where why you feel... It does feels if you do it mathematically, just GBV per the number of revenue and transactions, it seems it's lower. I can, I can tell you that no, our, our take rate has not decreased in any single one of our lines.

Speaker #2: The majority of our revenue from transactions comes from a fixed fee on transactions. And then, depending on the volume of the transactions that have a higher or lower fee, that's where you feel—it does, if you do it mathematically, just GVB per the number of revenue and transactions, it seems it's lower.

Speaker #2: But I can tell you that our take rate has not decreased in any single one of our lines.

Speaker #3: And maybe last question. I mean, obviously every question is getting asked—how they're thinking about agentic and LLM tools. I guess, give us your take on how you're thinking about deploying large language models within your business.

Jason Helfstein: Got it. Maybe last question. I mean, just obviously, every question is getting asked how they're thinking about agentic and LLM tools. I guess, give us your take on how you're thinking about, like, deploying large language models within your business, and is there some kind of productivity, you know, improvement, both either kind of from a growth or a cost standpoint, that could be achieved if, you know, you're, you're able to deploy some of those tools?

Speaker #3: And is there some kind of productivity improvement, whether from a growth or a cost standpoint, that could be achieved if you're able to deploy some of those tools?

Speaker #2: So, in order to do that, we are driving an AI agentic strategy, as you said. And we are going to be—we are the disruptors here.

Pablo: In order to that, we are driving an AI agentic strategy, as you said, and we are gonna be we are the disruptors here. We are not the ones to be disrupted here. Our API-driven architecture is designed to integrate modularly with the different elements, TMS, ERPs, as Ian said before. We aim to get leverage from that in the short terms and getting operational efficiencies in the long term.

Pablo Pinillos: In order to that, we are driving an AI agentic strategy, as you said, and we are gonna be we are the disruptors here. We are not the ones to be disrupted here. Our API-driven architecture is designed to integrate modularly with the different elements, TMS, ERPs, as Ian said before. We aim to get leverage from that in the short terms and getting operational efficiencies in the long term.

Speaker #2: We are not the ones to be disrupted here. Our API-driven architecture is designed to integrate modularly with the different elements—TMS, ERPs, as Ian said before.

Speaker #2: So we aim to get leverage from that in the short term, and gain operational efficiencies in the long term.

Speaker #3: Okay, thank you. Appreciate the color.

Jason Helfstein: Okay. Thank you. Appreciate the color.

Speaker #1: Okay. So the next question, from the line of George Sutton.

Operator: Okay, the next question, from the line of George Sutton.

Speaker #3: Thank you. Ian, you mentioned improving unit economics over time. I wondered if you could go into more detail on what your plans are there.

George Sutton: Thank you. Ian, you mentioned improving unit economics over time. I wondered if you could go into more detail on what your plans are there.

Speaker #4: Pablo, I'll let you speak to the unit economics.

Ian: Pablo, I'll let you-

Ian Arroyo: Pablo, I'll let you-

Pablo: Yeah

Pablo Pinillos: Yeah

Ian: ...speak to the unit economics.

Ian Arroyo: ...speak to the unit economics.

Speaker #2: Oh, okay. Actually, it was directed to you. But anyway, so the unit economics that we want to drive is that we get a better return for every single project that we drive in, meaning that the projects that we will prioritize are the ones where those unit economics—from a CAC perspective, from a short-term revenue perspective, and more—are better.

Pablo: Okay. The, and actually, it was directed to you, but anyway. The unit economics that we want to drive is that we get a better return for every single project that we drive in. Meaning that the projects that we will prioritize are the ones that those unit economics from a CAC perspective, from a revenue, a short-term revenue perspective, and more, expanding our network and our capa- and our capabilities, will be the ones that we'll be focused on.

Pablo Pinillos: Okay. The, and actually, it was directed to you, but anyway. The unit economics that we want to drive is that we get a better return for every single project that we drive in. Meaning that the projects that we will prioritize are the ones that those unit economics from a CAC perspective, from a revenue, a short-term revenue perspective, and more, expanding our network and our capa- and our capabilities, will be the ones that we'll be focused on.

Speaker #2: The expanding our network and our capabilities will be the ones that will be focused on.

Speaker #3: So the move is to a solutions-first focus. That's also been the area that's been more challenging for you to build out. I'm just curious, what you're seeing to suggest that that is the area to really focus?

George Sutton: The move is to a solutions-first focus. That's also been the area that's been more challenging for you to build out. I'm just curious what you're seeing to suggest that that is the area to really focus?

Speaker #2: Well, Ian explained it really well. And go ahead, Ian—I was going to ask you to jump in.

Pablo: Well, Ian explained it really well. Go ahead, Ian. I was gonna ask you to jump in.

Pablo Pinillos: Well, Ian explained it really well. Go ahead, Ian. I was gonna ask you to jump in.

Speaker #4: Yeah, it's a great question. A couple of things. One is, if you look at our historical, the vast majority of our solutions revenues come from the air side of our business.

Ian: Yeah. It's a great question. A couple of things. One is, if you look at our, you know, historical, our vast majority of our solutions revenues come from the air side of our business, and if you look at the transaction growth, you can see that as our solutions business grew, our transactions grew, right? Transactions were a lagging indicator of the value that the SaaS was providing on the air side. Last year, we announced the growth into ocean, and a year and a half ago, we announced the acquisition of Shipsta from a procure and tendering perspective, and bringing, you know, a multimodal solution to bear, so air and ocean combined for our forwarder clients, including all 20 of the top 20 and, you know, another 2,500 beyond that.

Ian Arroyo: Yeah. It's a great question. A couple of things. One is, if you look at our, you know, historical, our vast majority of our solutions revenues come from the air side of our business, and if you look at the transaction growth, you can see that as our solutions business grew, our transactions grew, right? Transactions were a lagging indicator of the value that the SaaS was providing on the air side. Last year, we announced the growth into ocean, and a year and a half ago, we announced the acquisition of Shipsta from a procure and tendering perspective, and bringing, you know, a multimodal solution to bear, so air and ocean combined for our forwarder clients, including all 20 of the top 20 and, you know, another 2,500 beyond that.

Speaker #4: And if you look at the transaction growth, you can see that as our solutions business grew, our transactions grew, right? So transactions were a lagging indicator of the value that the SaaS was providing on the air side.

Speaker #4: Last year, we announced the growth into ocean, and a year and a half ago, we announced the acquisition of Shipsta from a procure and tendering perspective.

Speaker #4: And bringing a multimodal solution to bear—so air and ocean combined—for our forwarder clients, including all 20 of the top 20 and another 2,500 beyond that, plus the procurement solution as well as the tendering solution, all combined together, to allow Freightos to work alongside our clients to provide procure and tendering, which is like pre-operations, the actual operations of quoting, booking, and execution, and then the market intelligence, which is the Freightos Terminal providing that as an integrated suite as well as a modular capability. This allows us to go deeper into the relationship with our clients from a day-to-day workflow perspective, which then, as ocean liners come online from an e-booking perspective, allows us to then be ready to help those ocean carriers grow their e-booking portfolio, because we already have the demand fully integrated into our solutions base.

Ian: Plus the procurement solution, as well as the tendering solution, all combined together to allow, you know, Freightos to work alongside our clients to provide, you know, procure and tendering, which is like pre-operations, the actual operations of quoting, booking, and execution, and then the market intelligence, which is Freightos Terminal. Providing that as an integrated suite, as well as a modular capability, allows us to go deeper into the relationship with our clients from a workflow, day-to-day workflow perspective, which then, as ocean liners come online from a e-bookings perspective, allows us to then be ready to help those ocean carriers grow their e-booking portfolio because we already have the demand fully integrated into our solution space.

Ian Arroyo: Plus the procurement solution, as well as the tendering solution, all combined together to allow, you know, Freightos to work alongside our clients to provide, you know, procure and tendering, which is like pre-operations, the actual operations of quoting, booking, and execution, and then the market intelligence, which is Freightos Terminal. Providing that as an integrated suite, as well as a modular capability, allows us to go deeper into the relationship with our clients from a workflow, day-to-day workflow perspective, which then, as ocean liners come online from a e-bookings perspective, allows us to then be ready to help those ocean carriers grow their e-booking portfolio because we already have the demand fully integrated into our solution space.

Speaker #4: So we believe that solutions-first with a broader capability than air, ocean, air, plus procurement, tendering, and market intelligence really allows us to support the direction that our clients are headed into the future, as Pablo said.

Ian: So we believe that solutions first, with a broader capability than air, ocean, air, plus procurement, tendering, and market intelligence, really allows us to support the direction that our clients are headed into the future, as Pablo said.

Ian Arroyo: So we believe that solutions first, with a broader capability than air, ocean, air, plus procurement, tendering, and market intelligence, really allows us to support the direction that our clients are headed into the future, as Pablo said.

Q4 2025 Freightos Ltd Earnings Call

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