Freight Technologies 2025 Q1 Earnings Narrowed Losses by 93.2%
Friday, May 16, 2025 11:17 pm ET
3min read Freight Technologies (FRGT) reported its fiscal 2025 Q1 earnings on May 16th, 2025. The company experienced a decrease in total revenue by 4.4% to $4.10 million compared to the same quarter last year. Despite this, Freight Technologies demonstrated significant progress in reducing its losses, with an improvement of 93.2% in earnings per share. The company remains optimistic about its future growth, maintaining guidance to sustain revenue levels and reduce EPS losses.
Revenue
Freight Technologies' revenue fell to $4.10 million in Q1 2025, a 4.4% decrease from Q1 2024. The Freight Transportation Brokerage segment generated $2.59 million, while the Dedicated Capacity segment contributed $1.51 million to the overall revenue.
Earnings/Net Income
Freight Technologies narrowed its losses to $0.73 per share in Q1 2025 from a loss of $10.76 per share in Q1 2024, marking a 93.2% improvement. The company's net loss reduced to $1.60 million in Q1 2025, a 29.0% reduction compared to Q1 2024. This shows positive progress in EPS improvement.
Price Action
The stock price of Freight Technologies dropped 7.14% during the latest trading day and plunged 19.38% over the past trading week. However, it has seen a 6.77% increase month-to-date.
Post-Earnings Price Action Review
Investing in Freight Technologies (FRGT) shares immediately following the release of its quarterly financial reports has been financially risky over the past five years. The strategy of buying shares and holding them for 30 days post-earnings resulted in a significant annualized return loss of -22.4%, translating to a total loss of $2.8 billion. This negative return starkly contrasts with the S&P 500 index, which returned 10.6% over the same period. This pattern highlights a bearish sentiment surrounding Freight Technologies' short-term post-earnings prospects, emphasizing the potential risks associated with such investments.
CEO Commentary
Freight Technologies CEO emphasized the company's resilience in navigating the supply chain challenges, attributing a net revenue of $4.1 million to the strong performance of their diverse technology-driven solutions. The CEO noted that while the company faced headwinds, strategic investments in innovation have positioned Freight Technologies for future growth. He expressed a cautious optimism regarding market conditions, highlighting ongoing efforts to enhance operational efficiency and customer satisfaction to drive long-term success.
Guidance
Freight Technologies anticipates continued revenue growth, with expectations to maintain revenues around $4 million for the upcoming quarters. The company aims to improve its EPS from a loss of $0.73 in Q1 2025 as it implements cost reduction strategies and seeks to expand its market share, signaling a commitment to returning to profitability in the near term.
Additional News
Freight Technologies has recently engaged in several strategic initiatives. The company announced a collaboration with Blue Yonder's Transportation Management System through Bayer Crop Science LP, aiming to optimize supply chain efficiency. Additionally, Freight Technologies has expanded its digital asset portfolio by securing a $20 million convertible note facility to purchase Official Trump Tokens, reflecting its commitment to diversifying its treasury strategy. The company also launched an AI Lab in collaboration with the University of Monterrey to enhance cross-border logistics operations by developing AI-powered solutions. These initiatives underscore Freight Technologies' focus on leveraging technology and innovative strategies to strengthen its market position.
Revenue
Freight Technologies' revenue fell to $4.10 million in Q1 2025, a 4.4% decrease from Q1 2024. The Freight Transportation Brokerage segment generated $2.59 million, while the Dedicated Capacity segment contributed $1.51 million to the overall revenue.
Earnings/Net Income
Freight Technologies narrowed its losses to $0.73 per share in Q1 2025 from a loss of $10.76 per share in Q1 2024, marking a 93.2% improvement. The company's net loss reduced to $1.60 million in Q1 2025, a 29.0% reduction compared to Q1 2024. This shows positive progress in EPS improvement.
Price Action
The stock price of Freight Technologies dropped 7.14% during the latest trading day and plunged 19.38% over the past trading week. However, it has seen a 6.77% increase month-to-date.
Post-Earnings Price Action Review
Investing in Freight Technologies (FRGT) shares immediately following the release of its quarterly financial reports has been financially risky over the past five years. The strategy of buying shares and holding them for 30 days post-earnings resulted in a significant annualized return loss of -22.4%, translating to a total loss of $2.8 billion. This negative return starkly contrasts with the S&P 500 index, which returned 10.6% over the same period. This pattern highlights a bearish sentiment surrounding Freight Technologies' short-term post-earnings prospects, emphasizing the potential risks associated with such investments.
CEO Commentary
Freight Technologies CEO emphasized the company's resilience in navigating the supply chain challenges, attributing a net revenue of $4.1 million to the strong performance of their diverse technology-driven solutions. The CEO noted that while the company faced headwinds, strategic investments in innovation have positioned Freight Technologies for future growth. He expressed a cautious optimism regarding market conditions, highlighting ongoing efforts to enhance operational efficiency and customer satisfaction to drive long-term success.
Guidance
Freight Technologies anticipates continued revenue growth, with expectations to maintain revenues around $4 million for the upcoming quarters. The company aims to improve its EPS from a loss of $0.73 in Q1 2025 as it implements cost reduction strategies and seeks to expand its market share, signaling a commitment to returning to profitability in the near term.
Additional News
Freight Technologies has recently engaged in several strategic initiatives. The company announced a collaboration with Blue Yonder's Transportation Management System through Bayer Crop Science LP, aiming to optimize supply chain efficiency. Additionally, Freight Technologies has expanded its digital asset portfolio by securing a $20 million convertible note facility to purchase Official Trump Tokens, reflecting its commitment to diversifying its treasury strategy. The company also launched an AI Lab in collaboration with the University of Monterrey to enhance cross-border logistics operations by developing AI-powered solutions. These initiatives underscore Freight Technologies' focus on leveraging technology and innovative strategies to strengthen its market position.
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