Freightos (NASDAQ:CRGO) reported second-quarter 2026 revenue of $7.7 million, up 3% from a year earlier and above the company’s expectations, as growth in platform revenue offset a decline in solutions revenue. The company also said its adjusted EBITDA loss narrowed to $2 million, its lowest reported loss under that measure, while it continued to target an adjusted EBITDA breakeven run rate by the end of 2026.
“2026 is a transition year,” CEO and interim CFO Pablo Pinillos said on the company’s earnings call. “Our focus this year is on disciplined execution, tighter prioritization, and building the foundation for long-term growth.”
Platform growth offsets solutions weakness
Clearit processed a higher volume of refund claims following tariff policy changes. Pinillos said this activity produced higher revenue per transaction than typical customs transactions and was a “meaningful, largely temporary contributor” to second-quarter outperformance. Freightos expects a moderate contribution from the activity in the third quarter and a smaller contribution in the fourth quarter.
The company facilitated 458,000 transactions during the quarter, up 16% from the prior-year period. Excluding routes involving Middle East origins, destinations or airspace, transaction growth was within Freightos’ long-term target range of 20% to 30%, according to Pinillos. Gross booking value reached a record $422 million, up 33% year over year, helped by air-freight rates that remained about 25% above pre-conflict levels.
Freightos added Korean Air to its network during the quarter. Pinillos characterized the addition as an important milestone in the company’s effort to expand airline participation in Asia. The company had 75 active carriers during the period, compared with 79 in the first quarter and 75 a year earlier. Freightos defines active carriers as those receiving more than five transactions during the quarter.
Pinillos said the sequential decline did not mean carriers had exited the platform, but reflected carriers moving below the transaction threshold. He said the company engages directly with those carriers to help maximize their use of the platform.
Focus on solutions conversion and unified platform
Management acknowledged that solutions revenue performance remained below expectations. Pinillos said bookings were not sufficient to cover the revenue shortfall and that the company faced pricing pressure on renewals. Freightos’ sales pipeline grew 30% sequentially during the quarter, but management said it needed to improve conversion rates, sales-cycle duration, renewals and customer implementations.
“The pipeline is not the outcome. Bookings and revenue are,” Pinillos said. He cited customer budget constraints amid freight-market uncertainty, along with competitive pricing pressure, as factors affecting sales execution.
Freightos has consolidated its products under the “ONE Freightos” identity, an initiative management described as more than a branding change. Chief Strategy Officer Ian Arroyo said the company is seeking to connect previously separate products into a unified platform for freight forwarders, enterprise shippers and small and midsize customers.
Arroyo said the company enhanced Freightos Procure for enterprise shippers by enabling regional teams to enter lane requirements directly into the platform, rather than having procurement teams consolidate information from emails and spreadsheets. The company is also developing its next-generation air pricing, quoting and booking tools for freight forwarders.
The company’s longer-term strategy includes making ocean, air and land freight capabilities available through a single platform. Arroyo said Freightos is also migrating products to a common technology foundation intended to support faster innovation and AI-assisted product development. Customers are expected to begin receiving capabilities built on that foundation during the second half of the year.
Margins, liquidity and outlook
Non-IFRS gross margin was 74.1% in the second quarter, up from 73.5% a year earlier. Freightos ended the quarter with $21.4 million in cash and short-term deposits, down from $23.5 million at the end of the first quarter. Pinillos said the $2.1 million change was broadly in line with the company’s adjusted EBITDA loss.
The company expects its cost optimization actions announced in March to deliver a fuller financial impact in the fourth quarter. Freightos expects to reach adjusted EBITDA breakeven at some point during the fourth quarter and to become cash-generative by mid-2027. Pinillos said cash burn is expected to remain similar to adjusted EBITDA through the rest of 2026, with no more than an additional $500,000 expected at the beginning of 2027 before the company turns cash-flow positive.
- Third-quarter revenue guidance: $7.7 million to $7.8 million.
- Full-year 2026 revenue guidance: $30.4 million to $31.0 million.
- Third-quarter adjusted EBITDA guidance: loss of $1.3 million to $1.2 million.
- Fourth-quarter adjusted EBITDA outlook: loss of less than $1 million, with breakeven expected during the quarter.
- Full-year transaction growth outlook: 12% to 14% year over year.
- Full-year gross booking value growth outlook: 19% to 21% year over year.
Freightos’ guidance assumes that recovery in Middle East routes continues at approximately the pace seen in the second quarter, without full normalization. It also assumes air-freight rates remain near current levels. Management said the updated revenue outlook reflects the temporary nature of Clearit’s refund-claim contribution, continued risks in Middle East routes and ongoing solutions execution challenges.
The company also announced that Yaron Eldad will become chief financial officer effective Sept. 1. Pinillos said Eldad brings more than 25 years of senior financial leadership experience and will strengthen the leadership team during Freightos’ management transition.
About Freightos (NASDAQ:CRGO)
Freightos, trading under the symbol CRGO on Nasdaq, operates a digital booking platform designed to streamline international freight logistics. The company’s core offering, the Freightos Marketplace, allows shippers and freight forwarders to compare and book air, ocean and trucking services online, providing rate transparency and live booking capabilities. By aggregating quotes from a global network of carriers and forwarders, Freightos enables customers to secure competitive prices and manage bookings through a single interface.
In addition to its marketplace, Freightos offers a suite of SaaS solutions for logistics professionals.
