Freightos walked investors through a bumpier Q1 than expected, a leadership change, and a focused plan to tighten execution and reach adjusted EBITDA breakeven by year-end 2026. Management blamed Middle East trade disruptions for softer transactions while spotlighting product investments, an expanding carrier network, and a larger solutions pipeline that they say will drive more durable growth. The call mixed concrete metrics with longer-term strategy around multimodal connectivity, predictive risk tools, and operational discipline.
Pablo Pinillos: Thank you, Anat, and thank you, everyone, for joining us today. Before discussing the quarter, I would like to briefly acknowledge the leadership transition announced earlier this year. I’m honored to step into the role of CEO after joining Freightos as CFO a little over a year ago.
Pablo described a sharper focus on execution: simplifying organization, prioritizing high-return R&D, and tightening go-to-market work to accelerate solutions adoption. He emphasized that strategy itself is unchanged, but execution and accountability are being dialed up to make the strategy scalable. Management initiated a search for a permanent CFO while moving forward on these priorities.
The quarter felt the impact of external shocks: capacity shortages tied to Middle East disruptions reduced routing options and transaction activity in key corridors. Freightos reported 425,000 transactions, up 15% year-over-year but short of the 20%+ target, and highlighted that April activity showed some recovery versus March. Outside that region, growth looked healthier, and the platform reached a record 79 active carriers during the period.
Pablo also laid out key product and commercial moves: stronger integration of procurement, pricing, quoting, booking and market intelligence to support faster decisions across air and ocean. He said customers that adopt Freightos’ solutions transact about 3x more, retain at higher levels, and expand use over time. That customer behavior is the core validation for shifting focus toward recurring, solution-driven value.
Ian Arroyo: Thanks, Pablo. One of the most important structural shifts we continue seeing across global freight is that procurement execution, market intelligence decisions are becoming increasingly interconnected across transportation modes and counterparties. This change is pushing customers to compare alternatives, reroute freight, and adjust sourcing dynamically in response to disruptions.
Ian framed Freightos as building a reinforcing flywheel: solutions drive transactions, transactions generate operational data, and that data powers better procurement and execution decisions. He stressed that in fragmented markets like freight, durable advantage comes from live connectivity and embedded data, not AI alone. AI adds value by making the connected platform’s intelligence actionable inside procurement and execution workflows.
On innovation, Ian described a new predictive risk forecasting capability that uses Freightos’ operational dataset to flag capacity and pricing risks ahead of disruptions. He gave an example where a Fortune 500 customer shifted operations from the Gulf to the Americas to keep service levels intact. Predictive signals like these are meant to enable proactive procurement and automated contingency planning.
Pablo Pinillos: Thanks, Ian. Revenue in the first quarter was $7.2 million, up 3% year-over-year. Within platform where cargo by Freightos remain healthy, partially offset by softer activity within [ Freightos ] and [indiscernible], the customs transaction segment, and lower-than-expected transaction activity related to Middle East disruptions.
Non-IFRS gross margin stayed strong at 73.5%, and adjusted EBITDA was a negative $2.8 million, in line with management expectations. Freightos began executing a cost optimization plan late in the quarter aimed at improving operating focus and predictability, not just cutting costs. Management expects those actions to generate approximately $4.5 million in annualized savings beginning in Q4 2026.
Cash ended the quarter at $23.5 million in cash and short-term deposits, which the company says is sufficient to support the operating plan. Pablo explained that cash burn tracks closely with adjusted EBITDA and that the cost actions will start benefiting results in Q2 and ramp through Q4. Management reiterated confidence in reaching adjusted EBITDA breakeven by the end of 2026.
During Q&A, analysts pressed on predictive forecasting, cost cadence, and monetization per transaction. Ian explained that the forecasting product pulls many data signals and client inputs into risk scores, and management painted automation in procurement, network design, and actionable recommendations as clear opportunity areas. On monetization, transactional take rates are relatively stable and the recent GBV uplift was driven by higher freight rates rather than a change in fee structure.
Pablo acknowledged that solutions revenue underperformed internal expectations in Q1 but said the pipeline is roughly double last year’s level and execution should improve as the organization settles into the new focus. Enterprise customers are more cautious, delaying some decisions, but management says closer customer engagement and clearer prioritization should accelerate closures. They still expect to return to a 20%+ revenue growth trajectory in 2027 and beyond.
Pablo Pinillos: Yes, we are confident that with the burn that we’re expecting to have and with $23.5 million in cash right now, it provides sufficient liquidity to support our operating plans for the rest of the year as well as adjusted cash positivity 2 or 3 months after we become breakeven. Thank you, everyone.
