CRGO — Q2 2026 Financial Report Analysis

Freightos runs an online marketplace where freight forwarders and importers book air and ocean cargo space directly with airlines and shipping lines, and sells subscription software and freight-price data to the same industry. In the quarter ended June 30, 2026, revenue rose 3% to a record $7.69 million, ahead of the company's own forecast, and the loss narrowed to $1.63 million from $4.28 million a year earlier. Most of that improvement came from an accounting gain on the company's listed warrants rather than from the business itself; the operating loss narrowed by a smaller $0.97 million, driven by lower marketing spend. The booking marketplace grew quickly, while the larger software business shrank.

At a glance

• Revenue $7.69M, up 3%. The booking marketplace ("Platform") grew 19% to $2.9M, but software subscriptions ("Solutions"), which bring in most of the revenue, fell 4% to $4.8M. Overall growth was slow because the larger business went backwards.
• Loss $1.63M vs $4.28M a year ago, but $1.82M of the improvement is a non-cash warrant gain. Without warrant fair-value changes in either year, the loss would have been about $3.45M against $3.99M. That is a real improvement of roughly $0.5M, not $2.65M.
• Cash and short-term deposits $21.4M, down from $27.9M at the start of the year. About $2.1M left during the quarter itself. Management expects to reach Adjusted EBITDA breakeven by the end of 2026 and to generate cash by mid-2027.

Results at a glance

Freightos reports under international accounting rules (IFRS) and, as a foreign private issuer, files results on Form 6-K rather than a US 10-Q. Figures are in US dollars.

Prior-year segment, transaction and GBV figures are implied from the growth rates the company reported. Gross booking value is the total value of freight bookings that pass through the marketplace, most of which is paid to the airlines and shipping lines rather than kept by Freightos. Adjusted EBITDA is the company's preferred profit measure. It strips out interest, tax, depreciation, stock-based pay, restructuring costs and warrant revaluations.

Takeaway: In the two businesses, the one that is growing is the smaller one. Marketplace revenue rose 19%, but subscription software, which brings in about 62% of revenue and is meant to drive future bookings, fell 4%. Management called the software performance "lower-than-expected" for a second quarter in a row. The cost cuts and the Middle East freight-rate spike are holding the numbers up for now. The breakeven goal for late 2026 depends on cost control more than on revenue growth.

What drove the quarter

The marketplace recovered from the Middle East disruption faster than expected. Freightos says the military conflict in the Middle East "continued to disrupt major international shipping and air corridors, but recovery throughout the quarter was stronger than management had anticipated." Transactions rose 15% to 458,000, beating the company's own 437,000–444,000 forecast. Excluding routes that start, end or fly over the Middle East, the company says transaction growth was in line with its long-term target of 20–30%.

Booking value jumped 33%, mostly because freight got more expensive. The value of bookings grew more than twice as fast as their number. The company says average air freight rates "have remained approximately 25% above pre-Middle East conflict levels." Its interim report adds that the closure of the Strait of Hormuz raised fuel costs and ocean container rates. Higher prices make each booking bigger, but they do not increase Freightos' revenue at the same rate. Freight forwarders booking with airlines often pay a fixed fee per transaction rather than a percentage. So platform revenue (+19%) grew faster than transactions (+15%) but well short of booking value (+33%). Platform revenue was roughly 0.7% of GBV, down from about 0.8% a year earlier. That decline partly reflects price inflation, not a weaker business.

Software was the weak spot. Solutions revenue fell 4% to $4.8 million. The release blames "lower-than-expected performance in SaaS" (subscription software). For the first half, Solutions revenue was "essentially even" at $9.6 million. In Q1 management had already described SaaS performance as "lower-than-planned." The interim report calls converting the "growing SaaS pipeline into recurring revenue" the main focus of execution. That makes this the line to watch.

Lower costs came mainly from marketing. Total operating expenses fell 8% to $8.74 million:

For the first half, the interim MD&A attributes the $1.0 million drop in selling and marketing to less digital advertising, fewer staff costs, lower stock-based pay, cheaper software tools and fewer trade shows. General and administrative costs rose, mainly from $0.4 million more stock-based pay plus consulting and bad-debt costs. A weaker US dollar against the euro and Israeli shekel also increased costs, because much of Freightos' staff is paid in those currencies while it reports in dollars. The workforce reduction announced in March cost $1.49 million in severance, all booked in Q1, so it does not affect this quarter's figures.

What the headline numbers hide

• The warrant gain is not operating profit. Freightos has publicly traded warrants (rights to buy shares at a fixed price). Under IFRS these sit on the balance sheet as a liability and are revalued every quarter. The warrant liability fell from $2.22 million in December to $0.70 million, which produced a $1.82 million gain this quarter against a $0.29 million loss a year earlier. That $2.1 million swing explains about 80% of the $2.65 million drop in the net loss. Operating loss, which excludes it, is the better measure of the business.
• Cash burn is higher than the quarterly loss suggests. Operating cash outflow was $1.52 million in Q2, close to the net loss. Over the first half, however, $5.99 million went out, against $2.53 million in the first half of 2025. The interim report attributes the increase partly to $2.1 million of unfavourable working-capital movements; severance was also paid. Cash plus short-term deposits fell $6.5 million in six months, from $27.9 million to $21.4 million. The company says that is enough for "at least the next 12 months." That is the standard going-concern statement, not a forecast that the money will last a long time.
• Receivables are rising faster than sales. Trade receivables (money customers owe) rose 24% to $4.67 million in six months, while first-half revenue grew 3%. Some of this may come from higher customs-service volumes and peak-season timing. The company does not explain it, and bad-debt expense increased by $0.1 million.
• Adjusted EBITDA excludes stock-based pay. Stock-based compensation was $0.67 million this quarter. It is a real cost to shareholders: the weighted share count rose 3% to 51.8 million from a year ago, and there are no buybacks to offset it.
• No help from tax or interest. Finance income fell to $0.25 million from $0.58 million because there is less cash earning interest. The improvement did not come from below the operating line, apart from the warrant gain.

Guidance: what changed

Management raised the 2026 targets for transactions and booking value, narrowed the revenue range, and kept the Adjusted EBITDA range but dropped its better end:

Q2 revenue of $7.69 million beat the $7.2–7.4 million guide. Q2 Adjusted EBITDA of -$2.03 million landed inside the -$2.1 to -$2.0 million guide. The CEO said the outlook "reflects areas where execution needs to accelerate as well as the high market uncertainty."

First-half Adjusted EBITDA was -$4.87 million, so the full-year range implies only -$1.5 to -$2.0 million for the whole second half. Take away the Q3 guide of -$1.3 to -$1.2 million, and Q4 needs to come in around -$0.3 to -$0.7 million. That is close to breakeven, consistent with the goal of "exiting the year at Adjusted EBITDA breakeven." Second-half revenue must reach about $15.6–16.2 million, against $14.8 million in the first half.

Outlook

On October 15 Freightos published preliminary Q3 marketplace figures: 494,000 transactions (+15%) and $437 million in booking value (+30%). Both beat its August forecasts of 481,000–490,000 and $390–397 million. The marketplace side of the year is ahead of plan. Those figures do not cover the software business, which management says will be updated with full Q3 results on November 23, 2026.

Our read: The second-half profit plan looks achievable on costs alone. The March restructuring was paid for in Q1, marketing has been cut, and gross margin is steady at about 67–68%. The risk is on revenue. Booking value is inflated by Middle East-driven freight rates, which will eventually ease, and the subscription business has missed internal plans for two quarters. For Q3, check whether Solutions revenue stops falling and whether quarterly cash outflow keeps shrinking from Q2's roughly $2.1 million. With $21.4 million in the bank and a quarterly burn in the low single-digit millions, Freightos has a cushion of several quarters. It does not have years to show the software business can grow again.

Source: Freightos Q2 2026 earnings release (Form 6-K, Exhibit 99.1, August 17, 2026). Additional detail from the interim consolidated financial statements and MD&A for the six months ended June 30, 2026 (Form 6-K, September 10, 2026), and the Q1 2026 release (May 26, 2026) and Q3 2026 KPI release (October 15, 2026).