Q2 FY2026
Filed Aug 17, 2026Record Revenue of $7.7 Million Exceeded Management Expectations; Well-Capitalized with $21M in Cash to Support Breakeven and Growth
Revenue, transactions, GBV and gross margins increased year-over-year, while IFRS loss and Adjusted EBITDA loss improved. However, Solutions revenue declined, active carriers declined sequentially, operating cash flow remained negative, and Q3 and FY 2026 revenue guidance calls for modest growth.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenueother | $ 7,691 | – | 3% |
| IFRS gross profitother | $ 5,196 | – | – |
| IFRS gross marginother | 67.6 % | – | – |
| Non-IFRS gross profitnon-GAAP | $ 5,701 | – | – |
| Non-IFRS gross marginnon-GAAP | 74.1 % | – | – |
| Research and developmentother | $ 2,762 | – | – |
| Selling and marketingother | $ 2,928 | – | – |
| General and administrativeother | $ 3,052 | – | – |
| Total operating expensesother | $ 8,742 | – | – |
| Operating lossother | $ (3,546 ) | – | – |
| IFRS lossother | $ (1,628 ) | – | – |
| Basic and diluted loss per Ordinary shareother | $ (0.03 ) | – | – |
| Non IFRS lossnon-GAAP | $ (1,935 ) | – | – |
| Non IFRS basic and diluted loss per Ordinary sharenon-GAAP | $ (0.04 ) | – | – |
| Adjusted EBITDAnon-GAAP | $ (2,031 ) | – | – |
| Loss margin (under IFRS)other | -21 % | – | – |
| Adjusted EBITDA marginnon-GAAP | -26 % | – | – |
| Transactionsother | 458k | – | 15% |
| Carriers actively selling on the platformother | 75 | – | – |
| Unique buyer usersother | approximately 21 thousand | – | 4% |
| Gross Booking Valueother | $422 million | – | 33% |
| Net cash used in operating activitiesother | $ (1,522 ) | – | – |
| Purchase of property and equipmentother | $ (22 ) | – | – |
| Six months ended June 30, 2026 revenueother | $ 14,847 | – | – |
| Six months ended June 30, 2026 IFRS gross marginother | 67.1 % | – | – |
| Six months ended June 30, 2026 Non-IFRS gross marginnon-GAAP | 73.8 % | – | – |
| Six months ended June 30, 2026 operating lossother | $ (9,773 ) | – | – |
| Six months ended June 30, 2026 IFRS lossother | $ (8,089 ) | – | – |
| Six months ended June 30, 2026 Adjusted EBITDAnon-GAAP | $ (4,867 ) | – | – |
| Six months ended June 30, 2026 net cash used in operating activitiesother | $ (5,985 ) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Total Platform revenueSolid revenue growth from the WebCargo by Freightos platform and higher than expected revenue from customs transactions. | $2.9 million | – | 19% |
| Solutions revenueLower-than-expected performance in SaaS. | $4.8 million | – | -4% |
Q3 2026 and FY 2026 outlook
- RevenueQ3 2026: 7.7 - 7.8 ($m); FY 2026: 30.4 - 31.0 ($m)
- NoteTransactions (k): Q3 2026 481 - 490; FY 2026 1,847 - 1,869
- NoteTransactions year over year growth: Q3 2026 12% - 14%; FY 2026 12% - 14%
- NoteGBV ($m): Q3 2026 390 - 397; FY 2026 1,533 - 1,560
- NoteGBV year over year growth: Q3 2026 16% - 18%; FY 2026 19% - 21%
- NoteRevenue year over year growth: Q3 2026 1% - 2%; FY 2026 3% - 5%
- NoteAdjusted EBITDA ($m): Q3 2026 (1.3) - (1.2); FY 2026 (6.9) - (6.4)
- NoteThis outlook assumes freight price levels and market freight volumes as of August 2026.
What drove it
- Transactions grew 15% year-over-year, primarily reflecting resumed activity in Middle East routes.
- Management said recovery during the quarter was stronger than anticipated despite continued disruption to major international shipping and air corridors from the military conflict in the Middle East.
- Excluding routes involving Middle East origin, destination or airspace, transactions grew year-over-year at a rate in line with the company’s long-term model of 20-30% transactions growth.
- GBV growth reflected continued transaction-volume growth, sustained elevation of average air freight rates, and recovery of a significant portion of transaction volumes lost during the height of the conflict.
- Average air freight rates remained approximately 25% above pre-Middle East conflict levels.
- Revenue growth reflected solid WebCargo by Freightos performance and higher-than-expected customs transaction revenue.
Concerns
- Solutions revenue was down 4% year-over-year, reflecting lower-than-expected SaaS performance.
- Active carriers declined to 75 from 79 in Q1 2026 because some carriers fell below the minimum threshold of bookings required to be deemed a carrier.
- The FY 2026 revenue outlook calls for 3% - 5% year over year growth, while Q3 2026 revenue outlook calls for 1% - 2% year over year growth.
- Net cash used in operating activities was $ (5,985 ) for the six months ended June 30, 2026, compared with $ (2,532 ) for the six months ended June 30, 2025.
- Management cited high market uncertainty and said its updated full year outlook reflects areas where execution needs to accelerate.
- The company identified ongoing and additional military conflicts in the Middle East, tariffs and protectionist trade policies, and international-freight disruptions as risks to transaction volume, GBV and Platform revenue.
What to watch
- Whether Q3 2026 transactions reach the guided 481 - 490 (k) range.
- Whether Q3 2026 GBV reaches the guided 390 - 397 ($m) range as freight prices and volumes develop from August 2026 levels.
- Whether Solutions revenue improves following lower-than-expected SaaS performance.
- The trajectory of active carriers after the sequential decline to 75.
- Progress toward the stated target of exiting the year at Adjusted EBITDA breakeven and becoming cash generative by mid-2027.
- The impact of Middle East route disruptions and the recovery of transaction volumes on platform activity and air freight rates.
Balance sheet and cash flow
- Cash and cash equivalents at June 30, 2026: $ 13,311 (in thousands).
- Short-term bank deposit at June 30, 2026: $ 8,058 (in thousands).
- Cash and cash equivalents and a short term bank deposit balance at the end of June 2026: $21.4 million.
- Total assets at June 30, 2026: $ 55,774 (in thousands).
- Total liabilities and equity at June 30, 2026: $ 55,774 (in thousands).
- Total equity at June 30, 2026: $ 36,600 (in thousands).
- Net cash used in operating activities for the three months ended June 30, 2026: $ (1,522 ) (in thousands).
- Net cash used in operating activities for the six months ended June 30, 2026: $ (5,985 ) (in thousands).
- Net cash provided by investing activities for the three months ended June 30, 2026: $ 6,002 (in thousands).
- Net cash used in financing activities for the three months ended June 30, 2026: $ (50 ) (in thousands).
Analysis
Freightos reported record Q2 2026 revenue of $7.7 million, up 3% from $7.4 million in Q2 2025. Platform activity grew faster than reported revenue: transactions reached 458k, up 15% year-over-year, and GBV reached a record $422 million, up 33%. Management attributed the transaction performance primarily to resumed Middle East-route activity and said the GBV outperformance reflected transaction growth, elevated air freight rates and recovery of volumes lost during the height of the conflict.
Revenue mix was uneven. Total Platform revenue was $2.9 million, up 19% year-over-year, supported by WebCargo by Freightos and customs transactions. Solutions revenue was $4.8 million, down 4%, as SaaS performance was lower than expected. Unique buyer users increased to approximately 21 thousand, while active carriers were 75, unchanged from Q2 2025 but down from 79 in Q1 2026.
Margins and losses improved year-over-year. IFRS gross margin increased to 67.6% from 67.1%, and Non-IFRS gross margin increased to 74.1% from 73.5%. IFRS loss narrowed to $1.6 million from $4.3 million, while Adjusted EBITDA loss narrowed to negative $2.0 million from negative $2.9 million. Operating expenses declined to $8.7 million from $9.5 million, with lower research and development and selling and marketing expense offset in part by higher general and administrative expense.
Liquidity included $21.4 million of cash and cash equivalents and a short term bank deposit balance at the end of June 2026. Net cash used in operating activities was $1.5 million in Q2 and $6.0 million for the six months ended June 30, 2026. Management guided Q3 2026 revenue to 7.7 - 7.8 ($m), transactions to 481 - 490 (k), GBV to 390 - 397 ($m), and Adjusted EBITDA to (1.3) - (1.2) ($m). FY 2026 guidance calls for revenue of 30.4 - 31.0 ($m), transactions of 1,847 - 1,869 (k), GBV of 1,533 - 1,560 ($m), and Adjusted EBITDA of (6.9) - (6.4) ($m).
Management, verbatim
Our second quarter results delivered record revenue ahead of our expectations and our lowest-ever Adjusted EBITDA loss, as we continued executing against the priorities we set at the beginning of the year.
Pablo Pinillos, CEO and CFO of Freightos
World events created headwinds for some parts of our business and tailwinds for others, demonstrating that the comprehensiveness of our offering provides meaningful diversification alongside the value it delivers to customers.
Pablo Pinillos, CEO and CFO of Freightos
We remain committed to our profitability targets by exiting the year at Adjusted EBITDA breakeven and expect to become cash generative by mid-2027.
Pablo Pinillos, CEO and CFO of Freightos
Not in the filing
stated, not guessed- Previous-period outlook was not provided; therefore, actual results cannot be compared with prior guidance.
- Free cash flow was not reported.
- Debt balance was not reported.
- Share repurchases, dividends and other capital-return activity were not reported.
- Q2 2026 prior-quarter revenue, gross margin, operating loss, IFRS loss, EPS, Adjusted EBITDA and cash flow comparisons were not reported.
- Tax rate was not reported.
- Forward guidance for gross margin, operating expenses and tax rate was not reported.
- FY 2026 IFRS loss guidance and a reconciliation of forward-looking Adjusted EBITDA to IFRS loss were not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.