Nippon Express selects Freightos to power global freight operations

Freightos (NASDAQ:CRGO) has significantly expanded its partnership with Nippon Express (NX Group), one of the world's largest freight forwarders, to power its global multimodal freight pricing and booking operations across 57 countries. This strategic move, building on existing air booking services, now includes ocean freight capabilities and API integrations, underscoring the growing digitalization of logistics. The deal highlights Freightos' expanding market penetration and comes as the company reports strong revenue growth (27% YoY, 31% in Q2 2025) and improving, though still negative, adjusted EBITDA.

Analysis

Freightos (NASDAQ:CRGO) has secured a significant strategic partnership with Nippon Express, a top-five global freight forwarder, to deploy its multimodal SaaS platform across 57 countries. This expansion from an existing air cargo relationship to include ocean freight represents a major validation of Freightos' technology and a substantial increase in its market penetration. The deal is underpinned by strong financial performance, with the company reporting a 27% year-over-year revenue increase and a more recent acceleration to 31% growth in Q2 2025, reaching $7.4 million. While gross profit margins are robust at nearly 67%, the company remains unprofitable, posting an adjusted EBITDA loss of $2.5 million for the quarter. However, this marks an improvement from the $3.1 million loss in the prior year, indicating progress on the path to profitability. Further evidence of platform adoption is seen in the recent partnership with Garuda Indonesia Cargo, reinforcing the narrative of expanding network effects and solidifying Freightos' role as a key digital enabler in the global logistics industry.

Key Decisions for Investors

• The landmark deal with Nippon Express and accelerating revenue growth of 31% in Q2 2025 serve as strong validation of the company's growth thesis, warranting attention from investors focused on the digitalization of logistics.
• Investors should closely monitor the company's cash burn and progress towards positive adjusted EBITDA, as the current losses of $2.5 million, though narrowing, remain a key risk factor for the high-growth stock.
• The ability to secure additional enterprise-level clients of Nippon Express's caliber will be a critical forward-looking indicator for sustaining momentum and justifying the company's valuation.