Freightos Ltd. operates in the international freight industry, which facilitates global trade in goods. In 2024, the value of goods exported internationally reached $24.4 trillion ², representing approximately 22% ³ of global gross domestic product (GDP) ⁴. The third-party logistics market, which facilitates international trade, generated $1.22 trillion ⁵ in revenue in 2024 ⁶. The industry is characterized by manual processes, leading to delays, inconsistent pricing, and uncertain transit times, with importers/exporters often waiting several days for a spot price quote and prices varying by tens of percentage points ⁷. The company aims to digitalize this industry, drawing inspiration from the digital transformations seen in passenger travel, hotels, and retail ⁸.

The global freight industry is highly competitive, rapidly evolving, fragmented, and subject to changing technology, shifting needs, virtual integration, and frequent introductions of new competitors and offerings ⁹. Freightos competes with various online and offline platforms, traditional freight brokerage businesses, and well-established internet companies like Amazon, as well as businesses operating commoditized marketplaces like Uber Technologies ¹⁰. Specific competitors for WebCargo by Freightos air cargo booking platform include Cargo.one, CargoAi, WiseTech, and CargoBooking.aero ¹¹. For freightos.com (shipping marketplace), primary competitors are other forwarders such as Ship4wd, Flexport, FedEx, and UPS ¹². For WebCargo by Freightos Rate & Quote freight forwarder SaaS (Ocean), competitors include Descartes Portrix, Magaya Catapult, WiseTech CargoSphere, and Freightify by Cargo.one ¹³. For WebCargo by Freightos Forwarder Rate & Quote SaaS (Air), Cargo.one and Cargo.Ai are competitors ¹⁴. Freightos Procure (Shipsta) competes with Freightender, Tendereasy, Transporeon, and non-freight specific sourcing software like Keelvar ¹⁵. Freightos Terminal (data) competes with Xeneta, Platts, NYSHEX, Drewrey, TAC, and WorldACD for air cargo ¹⁶. Clearit competes with approximately 11,300 ¹⁷ U.S. customs brokers and approximately 300 ¹⁸ Canadian customs brokers ¹⁹. Many competitors have substantially greater financial and other resources, longer operating histories, and more users ²⁰.

Freightos generates revenue through a core business model that combines a platform and Software-as-a-Service (SaaS) solutions. The company's mission is to streamline air, ocean, and ground shipments across carriers, freight forwarders, importers, and exporters on its digital freight pricing, procurement, and booking platform ²¹. The business operates in two segments: Solutions and Platform ²². The Solutions segment provides SaaS tools and data to help industry participants automate pricing, sales, and procurement processes, or improve efficiency with market intelligence ²³. This segment generates revenue primarily from recurring subscriptions for SaaS or data, and non-recurring revenue from services like data ingestion, engineering, and customization ²⁴. The Platform segment connects Buyers and Sellers of freight services for digitalized price quoting, booking, payments, and basic shipment management ²⁵. Platform revenue is generated from fees associated with specific freight-service transactions, including Buyer platform fees, Seller transaction fees (flat per transaction or a percentage of transaction value), fees related to payments or payment terms, and fees from ancillary services like third-party insurance and customs brokerage ²⁶. The company's strategy for 2026 is focused on "solution adoption," embedding its SaaS and software tools into customer workflows, believing that platform bookings will follow naturally ²⁷.

The Solutions segment encompasses several key products. WebCargo Rate & Quote (Air) provides freight forwarders with efficient price management, negotiation capabilities, improved sales, and better margin management, enabling them to manage dynamic and static airline rates, negotiate rates, quote to customers, and connect to the WebCargo Book solution ²⁸. WebCargo Rate & Quote (Multimodal) offers similar functionalities for efficient forwarder operations and sales with a multi-modal rate repository, sophisticated rate ingestion, multimodal door-to-door routing and quotes, customer management, and integrated bookings ²⁹. Data Services digitalizes static carrier rates from various formats to facilitate onboarding and usage of the Rate & Quote solutions ³⁰. WebCargo Airline enables airlines to distribute rates, receive bookings, and optimize pricing with real-time booking analytics ³¹. Freightos Procure, the flagship enterprise shipper solution, helps enterprise shippers and multinational forwarders manage ongoing tender procurement processes, including annual bidding and smaller bids throughout the year ³². Revenue from the Solutions segment is primarily subscription-based SaaS and data, with some non-recurring revenue from professional services ³³. For the year ended December 31, 2025, Solutions revenue was $19.579 million ³⁴, representing 66% ³⁵ of total revenue ³⁶.

The Platform segment includes WebCargo by Freightos and freightos.com. WebCargo by Freightos connects professional logistics service providers, mostly freight forwarders, to carriers, enabling them to search, review instant offerings from airlines, choose, book, and manage bookings ³⁷. This platform is used by over 3,500 ³⁸ freight forwarders and connects them to more than 75 ³⁹ operating airlines ⁴⁰. Freightos.com connects importers/exporters to logistics service providers, allowing users to enter shipment details, instantly view binding quotes from qualified freight forwarders, book, and pay online ⁴¹. Over 21,000 ⁴² importer/exporter Buyers have purchased freight services on freightos.com ⁴³. Platform revenue reflects fees charged to Buyers and Sellers in relation to transactions, typically flat fees per transaction or a percentage of transaction value ⁴⁴. Clearit customs brokerage fees are also reported in this segment ⁴⁵. For the year ended December 31, 2025, Platform revenue was $9.881 million ⁴⁶, representing 34% ⁴⁷ of total revenue ⁴⁸.

For the fiscal year ended December 31, 2025, Freightos reported total revenue of $29.460 million ⁴⁹, an increase from $23.785 million ⁵⁰ in 2024 and $20.281 million ⁵¹ in 2023. Cost of revenue was $9.777 million ⁵², resulting in a gross profit of $19.683 million ⁵³ and a gross margin of 67% ⁵⁴. Operating expenses totaled $38.839 million ⁵⁵, leading to an operating loss of ($19.156) million ⁵⁶. The company reported a gain of $0.227 million ⁵⁷ from the change in fair value of warrants, finance income of $1.827 million ⁵⁸, and finance expenses of ($0.268) million ⁵⁹. Loss before taxes on income was ($17.370) million ⁶⁰, and income taxes (tax benefit), net, was $0.146 million ⁶¹, resulting in a net loss of ($17.516) million ⁶². Basic and diluted loss per share were not explicitly stated in the provided text. Cash, cash equivalents, and bank deposits were $27.9 million ⁶³ as of December 31, 2025, with total restricted deposits of $1.8 million ⁶⁴. Total contractual, undiscounted lease liabilities were $2.823 million ⁶⁵ as of December 31, 2025 ⁶⁶.

Comparing the year ended December 31, 2025, to December 31, 2024, total revenue increased by $5.675 million ⁶⁷, or 24% ⁶⁸, from $23.785 million ⁶⁹ to $29.460 million ⁷⁰. Solutions revenue grew by $4.181 million ⁷¹, or 27% ⁷², reaching $19.579 million ⁷³ in 2025 from $15.398 million ⁷⁴ in 2024. Platform revenue increased by $1.494 million ⁷⁵, or 18% ⁷⁶, from $8.387 million ⁷⁷ to $9.881 million ⁷⁸. Cost of revenue increased by $1.492 million ⁷⁹, or 18% ⁸⁰, to $9.777 million ⁸¹ in 2025 from $8.285 million ⁸² in 2024, primarily due to a $1.1 million ⁸³ increase in personnel and related expenses, a $0.2 million ⁸⁴ increase in amortization of intangible assets, and a $0.1 million ⁸⁵ increase in credit card processing fees ⁸⁶. Gross margin improved from 65% ⁸⁷ in 2024 to 67% ⁸⁸ in 2025 ⁸⁹. Operating expenses increased by $0.392 million ⁹⁰, or 1% ⁹¹, from $38.447 million ⁹² in 2024 to $38.839 million ⁹³ in 2025 ⁹⁴. General and administrative expenses decreased by $2.598 million ⁹⁵, or 18% ⁹⁶, from $14.292 million ⁹⁷ in 2024 to $11.694 million ⁹⁸ in 2025, mainly due to a $3.0 million ⁹⁹ goodwill impairment loss in 2024 not recurring in 2025 ¹⁰⁰. Net cash used in operating activities decreased by $3.2 million ¹⁰¹ to $8.868 million ¹⁰² in 2025 from $12.100 million ¹⁰³ in 2024 ¹⁰⁴.

During the reported fiscal period, Freightos completed several significant operational developments. In August 2024, the company acquired all outstanding shares of Shipsta, a Luxembourg-based freight-tender procurement platform ¹⁰⁵. In 2025, Freightos launched its ocean solution and added annual freight contract benchmarking support to its market data and market intelligence solution ¹⁰⁶. The company also accelerated integration across its ecosystem, including market intelligence in its procurement solution, creating unified air and ocean search for forwarders, and reflected its first use of AI-native features ¹⁰⁷. The company's founder and former Chief Executive Officer, Dr. Zvi Schreiber, and former Chief Financial Officer, Ran Shalev, departed in December 2025 and November 2024, respectively ¹⁰⁸. Pablo Pinillos was appointed Chief Executive Officer effective March 16, 2026, after serving as Chief Financial Officer since March 2025 and Interim Chief Executive Officer since December 17, 2025 ¹⁰⁹.

Freightos' strategy for 2026 is focused on encouraging solution adoption by embedding its SaaS and software tools into the daily workflows of its customers, which the company believes will lead to sustainable revenue growth and naturally increase platform bookings ¹¹⁰. The company anticipates reaching financial breakeven by the end of 2026 ¹¹¹ and expects to achieve breakeven on an Adjusted EBITDA basis by the end of 2026 ¹¹². Management's current plans project free cash flow burn in 2026 to be less than in 2025 ¹¹³.

The company intends to expand its success in the air cargo spot market by expanding into additional modes, specifically ocean cargo, and by expanding into tendering ¹¹⁴. In 2025, Freightos relaunched a version of its ocean rate management and quoting platform, which has seen initial uptake from enterprise and midmarket forwarders ¹¹⁵. The company will seek to expand its strong traction in the global freight procurement space across both enterprise shippers and forwarders ¹¹⁶. This SaaS penetration is expected to increase revenue and set the stage for long-term growth in transactions from both spot and contract bookings ¹¹⁷. The company's market intelligence is expected to support this expansion in a positive feedback loop, where more users of solutions lead to more value from aggregate data, making the solutions even more valuable ¹¹⁸. Freightos believes there may be opportunities for future expansion into LTL trucking (outside of the United States), FTL trucking, air cargo charters, and bulk shipping ¹¹⁹. The company also monitors opportunities for adjacent third-party services accessible through its Platform, including customs brokerage in new markets, warehousing, fulfillment, last-mile distribution, and trade finance ¹²⁰.

Operationally, Freightos intends to implement a responsible expenditure strategy, limiting its spending and negative free cash flow, while maintaining high gross profit margins ¹²¹. The company seeks to moderate the growth in its operating expenses so that such growth is much slower than the growth in its top line and gross profit, which is how it aims to achieve improving profitability ¹²². The company plans to continue investing significantly in scaling to enhance its growth prospects, particularly as it expands to new areas like ocean cargo ¹²³. Freightos will continue to invest heavily in research and development to create a modern, stable, fast-performing, user-friendly Platform, and plans to continue to invest in sales and marketing ¹²⁴.

The company's ability to clear cargo is entirely dependent on the continuous availability of government-mandated electronic data interchange (EDI) systems, such as the U.S. Automated Commercial Environment (ACE) ¹²⁵. Any prolonged downtime, system failure, or cyberattack targeting these government portals or the company's connection to them would prevent filing entries, leading to shipment delays, storage fees for customers, and potential loss of business ¹²⁶. The company's increasing use of artificial intelligence models hosted on cloud infrastructures introduces additional risks, including potential shortages in specialized "compute" capacity (such as GPUs) required to run predictive engines, or technical failures in AI-specific APIs provided by cloud partners ¹²⁷.

Freightos' planned capital allocation includes continued substantial expenditures for the development and commercialization of its Platform and Solutions segments, relying on continued investments from existing and new shareholders ¹²⁸. The primary uses of liquidity and capital resources are the financing of research and development, sales and marketing expenses that drive growth, as well as working capital, capital expenditures, and general corporate purposes ¹²⁹. Capital expenditures were $0.1 million ¹³⁰ in 2025 ¹³¹. The company expects to issue additional share capital in the future, which will result in dilution to all other shareholders, including equity awards to employees and directors under its equity incentive plans ¹³².

The company has identified several structural headwinds and execution risks. The international freight industry is historically slow to adopt new technology, and the company's success depends on convincing industry participants to move away from legacy manual processes ¹³³. The market for global freight is characterized by rapid technological change, frequent new product introductions, and evolving industry standards, which is being accelerated through the increasing use of artificial intelligence (AI) and machine learning ¹³⁴. The market may soon undergo a fundamental transformation driven by generative AI and autonomous agents, and the company's long-term success depends on its ability to adapt its software as an AI-first environment ¹³⁵. Competitors, including new "AI-native" entrants and established tech giants, may respond more quickly and effectively to new technologies ¹³⁶. The company may face difficulty recruiting and retaining skilled personnel with AI expertise due to intense competition ¹³⁷. A limited number of Sellers provide a substantial portion of the offerings available on the Platform, and failure to retain them could make the Platform less attractive to Buyers ¹³⁸. For the year ended December 31, 2025, approximately 21% ¹³⁹ and 55% ¹⁴⁰ of GBV was generated through the top Seller and the top-five Sellers, respectively ¹⁴¹.

Geopolitical issues, trade policy shifts, and other factors could negatively impact global operations ¹⁴². The international freight industry is highly cyclical and susceptible to trends in economic activity ¹⁴³. Acute disruptions to the global supply chain and international shipping and aviation, such as intermittent disturbances in the Red Sea and the closure of Middle Eastern airspace, could adversely impact the business ¹⁴⁴. The escalation of hostilities with Iran in early 2026 led to the widespread closure of sovereign airspace across the Middle East and the effective suspension of operations at major global transit hubs, removing an estimated 16% to 22% ¹⁴⁵ of global air cargo capacity ¹⁴⁶. The reduced use of the Red Sea trade route and the crisis in Middle Eastern air capacity has resulted in delays, extended lead times, and increases in freight costs ¹⁴⁷. The company is subject to currency risk, with the U.S. dollar devaluing significantly against many foreign currencies in 2025 and early 2026 ¹⁴⁸. The NIS and the Euro appreciated relative to the U.S. dollar by 14.3% ¹⁴⁹ and 13.1% ¹⁵⁰, respectively, in 2025 ¹⁵¹. The annual rate of inflation in Israel amounted to 3.8% ¹⁵² and 3.2% ¹⁵³ in 2025 and 2024, respectively, while in the Euro Area, the annual inflation rates were 2.0% ¹⁵⁴ and 2.4% ¹⁵⁵ in 2025 and 2024, respectively ¹⁵⁶.

Management's message to shareholders emphasizes a strategic shift for 2026, focusing on "solution adoption" by embedding SaaS and software tools into customer workflows to drive sustainable revenue growth, with platform bookings expected to follow naturally ¹⁷¹. The company anticipates reaching financial breakeven by the end of 2026 ¹⁷² and expects to achieve breakeven on an Adjusted EBITDA basis by the end of 2026 ¹⁷³. Management's current plans project free cash flow burn in 2026 to be less than in 2025 ¹⁷⁴. The three strategic priorities for the period ahead are expanding into additional modes, namely ocean cargo, expanding into tendering, and leveraging market intelligence in a positive feedback loop ¹⁷⁵. The company intends to implement a responsible expenditure strategy, limiting spending and negative free cash flow, while maintaining high gross profit margins and moderating the growth in operating expenses to be slower than top-line and gross profit growth ¹⁷⁶.

Freightos faces material risks from adverse global economic conditions, geopolitical issues, and trade policy shifts, which can negatively impact its global operations and the highly cyclical international freight industry, particularly due to increases in tariffs and protectionist policies, and capacity trends within air and ocean markets ¹⁵⁷. Acute disruptions to the global supply chain, such as intermittent disturbances in the Red Sea and the closure of Middle Eastern airspace due to military conflicts, have removed an estimated 16% to 22% ¹⁵⁸ of global air cargo capacity, forcing costly detours and skyrocketing freight rates, which could lead to reduced sales of goods and decreased usage of the Platform ¹⁵⁹. The company is vulnerable to currency risk, with the NIS and Euro appreciating against the U.S. dollar by 14.3% ¹⁶⁰ and 13.1% ¹⁶¹ respectively in 2025, increasing the U.S. dollar cost of operations in Israel and Europe ¹⁶². The company's North American customs brokerage operations, conducted through Clearit, are subject to complex regulatory requirements, potential financial liabilities for duties and taxes, and the risk of license revocation, with errors in filings potentially resulting in "liquidated damages," civil penalties, or fines ¹⁶³. The company's reliance on government-operated technology systems for customs clearance, such as the U.S. Automated Commercial Environment (ACE), subjects its brokerage operations to risks of technical failure and data breaches ¹⁶⁴. The market for global freight is characterized by rapid technological change, particularly the increasing use of artificial intelligence (AI) and machine learning, and the company's long-term success depends on its ability to adapt its software as an AI-first environment, facing competition from "AI-native" entrants and established tech giants with greater resources ¹⁶⁵. The company's use of Anthropic's AI models in certain parts of its business subjects it to significant regulatory and political risk following Anthropic's recent designation as a "supply chain risk" by the U.S. Department of Defense and a directive to phase out its use across federal agencies, potentially leading to contractual and partner risks, operational disruption, reputational scrutiny, and legal uncertainty ¹⁶⁶. The ongoing global implementation of the OECD's 'Pillar Two' model rules, aiming for a minimum 15% ¹⁶⁷ effective tax rate for multinational enterprises, may increase the company's tax liability and the complexity of financial reporting ¹⁶⁸. The EU Artificial Intelligence Act, which entered into force on February 2, 2025, with most rules enforceable by August 2, 2026, could result in penalties of up to 7% ¹⁶⁹ of global annual turnover for non-compliance ¹⁷⁰.