Freightos Limited, trading as NASDAQ:CRGO, is a key player in the digital freight solutions industry. The company focuses on connecting carriers, freight forwarders, and importers/exporters through its platform. Despite its recent financial challenges, Freightos continues to lead in digital transformation within the global freight sector, as highlighted by its consistent revenue growth and record transactions.
On February 24, 2025, Freightos reported an earnings per share (EPS) of -$0.20, which was below the estimated EPS of -$0.09. This represents a negative surprise of 122.22%, a significant deviation from expectations. In contrast, the company had previously reported a positive surprise of 72.73% in the prior quarter, indicating fluctuating performance in recent periods.
Despite the earnings miss, Freightos achieved a revenue of $6.59 million, surpassing the estimated $6.46 million. This marks a 25% increase from the previous year's $5.26 million for the same quarter. The company has consistently exceeded revenue estimates over the past four quarters, demonstrating its ability to grow its top line even amid challenges.
Freightos' financial metrics reveal a mixed picture. The company has a negative price-to-earnings (P/E) ratio of -11.53, indicating ongoing losses. However, its price-to-sales ratio of 8.29 suggests that investors are willing to pay a premium for its sales. The low debt-to-equity ratio of 0.019 reflects minimal reliance on debt, while a current ratio of 2.90 indicates strong liquidity.
Looking forward, Freightos plans to launch new products and adopt AI aggressively, aiming for breakeven by the end of 2026. The appointment of Pablo Pinillos as the new CFO is expected to support these goals. CEO Zvi Schreiber emphasizes the company's role in the industry's digital transformation, highlighting its strong carrier expansion and record gross profit margin.
