Freightos: Digital Freight Platform Poised to Capitalize on Global Trade Volatility and AI-Driven Efficiency

The global freight industry is a patchwork of inefficiencies, manual processes, and opaque pricing—until now. Freightos, a digital freight platform, is rewriting the rules of this $10 trillion market by leveraging AI-driven efficiency, real-time data, and a vendor-neutral ecosystem. With global trade volatility spiking due to geopolitical tensions, supply chain disruptions, and shifting consumer demands, Freightos is uniquely positioned to thrive. Let's break down how this company is transforming a fragmented industry and why its path to EBITDA positivity could make it a compelling long-term investment.

The Problem Freightos Solves

The freight industry has long been plagued by siloed systems, Excel-based workflows, and a lack of transparency. According to Freightos' own research, 73% of enterprise shippers still rely on spreadsheets for procurement and booking—a practice that's unsustainable in today's fast-paced, data-driven world. Meanwhile, global trade is becoming increasingly unpredictable. From the Red Sea crisis to U.S.-China tariff wars, companies need agility to navigate disruptions. Freightos' platform addresses these pain points by unifying market intelligence, tender management, and shipment execution into a single, integrated solution.

Freightos' Competitive Edge: AI and Real-Time Data

Freightos Enterprise, the company's flagship offering, is a game-changer. It digitizes procurement workflows, automates rate negotiations, and provides real-time visibility into global freight markets. The platform's AI-driven tools analyze millions of data points daily, enabling shippers to reroute shipments, optimize contracts, and respond to disruptions in near real-time. For example, during the Red Sea crisis, 90% of Freightos Enterprise users leveraged its insights to avoid bottlenecks, saving costs and maintaining operational continuity.

The company's proprietary indices—the Freightos Baltic Index (FBX) and Freightos Air Index (FAX)—have become industry benchmarks for container and air cargo rates. These tools demystify pricing in historically opaque markets, giving Freightos a moat against competitors. Meanwhile, its AI-powered procurement tools reduce manual labor by 70%, according to internal data, allowing logistics teams to focus on strategic decision-making.

Financials and Growth Trajectory

Freightos' Q2 2025 results highlight its accelerating growth. Revenue hit $7.4 million, up 31% year-over-year, driven by the Shipsta acquisition and expansion of its SaaS and customs clearance services. Gross Booking Value (GBV) reached $1.25 billion for the year, with full-year projections of $1.25–$1.266 billion—a 40–42% increase. While the company still reports an Adjusted EBITDA loss of $2.9 million in Q2, this represents a 6% improvement from the prior year.

Freightos' cash reserves of $34.1 million as of June 30, 2025, provide a buffer against macroeconomic headwinds. The company is also expanding its carrier network, with 71 carriers on its platform in Q1 2025 (up from 67 in Q4 2024). This growth in scale is critical: more carriers mean more data, which fuels its AI models and enhances its value proposition.

Path to EBITDA Positivity: Strategic Levers

Freightos' roadmap to breakeven Adjusted EBITDA by 2026 hinges on three pillars:
1. AI-Driven Cost Optimization: By automating rate negotiations and tendering, Freightos reduces operational costs while increasing margins. Its Solutions segment, which includes SaaS and data services, grew 33% year-over-year in Q1 2025, contributing $4.6 million in revenue.
2. Scalable Platform Expansion: The company is rolling out the Freightos Enterprise Suite, a unified procurement-to-execution platform that integrates Shipsta's capabilities. This should drive cross-selling and upselling opportunities.
3. Currency Hedging and Efficiency Gains: While currency fluctuations remain a headwind (e.g., the euro's appreciation against the dollar), Freightos' hedging strategies and cost discipline are mitigating these risks.

Risks and Mitigants

Freightos isn't without challenges. The freight market is cyclical, and a global economic slowdown could dampen demand. Additionally, its path to EBITDA positivity relies on continued AI adoption—a trend that's still in its early stages. However, the company's strong balance sheet, recurring revenue model, and first-mover advantage in digital freight booking provide a safety net.

Investment Thesis

Freightos is a prime example of a company building a durable business in a fragmented, analog-heavy industry. Its AI-driven platform is not just a tool—it's a strategic asset that becomes more valuable as data accumulates. With a clear path to EBITDA breakeven by 2026 and a growing base of enterprise clients, Freightos is well-positioned to capitalize on the $20.8 billion AI in logistics market.

For investors, the key question is timing. While the stock trades at a premium to earnings, its revenue growth (24–26% in 2025) and expanding gross margins suggest a compelling long-term story. Consider adding Freightos to a portfolio focused on digital transformation in traditional industries, but monitor its EBITDA trajectory closely.

In a world where supply chains are as volatile as stock markets, Freightos offers a blueprint for resilience. This is a company that's not just surviving—it's redefining the rules of the game.