Freight Technologies Announces First Quarter 2025 Results
Freight Technologies (NASDAQ: FRGT) has released its Q1 2025 financial results, showing improvements in key metrics despite macroeconomic challenges. The company reported a gross margin increase to 12.4% (up 7.0% YoY) and reduced its net loss to $1.6 million (improved by $0.7M YoY). Cash flow from operations improved slightly to -$3.1 million.
Notable developments include the launch of Fleet Rocket, a new TMS software solution, and the introduction of AI-powered features. The company invested $5.2 million in FET tokens and established the Fr8Tech AI Lab. However, due to concerns over US-Mexico cross-border trade tariffs, Fr8Tech revised its 2025 outlook, projecting revenue of $20-23 million, gross profit of $2-2.8 million, and operating loss of -$4.2 to -$5.5 million.
Freight Technologies (NASDAQ: FRGT) ha pubblicato i risultati finanziari del primo trimestre 2025, mostrando miglioramenti nei principali indicatori nonostante le difficoltà macroeconomiche. L'azienda ha riportato un aumento del margine lordo al 12,4% (in crescita del 7,0% su base annua) e ha ridotto la perdita netta a 1,6 milioni di dollari (migliorata di 0,7 milioni di dollari rispetto all'anno precedente). Il flusso di cassa operativo è leggermente migliorato, attestandosi a -3,1 milioni di dollari.
Tra gli sviluppi più rilevanti si segnalano il lancio di Fleet Rocket, una nuova soluzione software TMS, e l'introduzione di funzionalità basate sull'intelligenza artificiale. L'azienda ha investito 5,2 milioni di dollari in token FET e ha creato il Fr8Tech AI Lab. Tuttavia, a causa delle preoccupazioni relative ai dazi sul commercio transfrontaliero tra Stati Uniti e Messico, Fr8Tech ha rivisto le previsioni per il 2025, stimando ricavi tra 20 e 23 milioni di dollari, un utile lordo tra 2 e 2,8 milioni di dollari e una perdita operativa compresa tra 4,2 e 5,5 milioni di dollari.
Freight Technologies (NASDAQ: FRGT) ha publicado sus resultados financieros del primer trimestre de 2025, mostrando mejoras en métricas clave a pesar de los desafíos macroeconómicos. La compañía reportó un aumento del margen bruto al 12,4% (un incremento del 7,0% interanual) y redujo su pérdida neta a 1,6 millones de dólares (una mejora de 0,7 millones de dólares respecto al año anterior). El flujo de caja operativo mejoró ligeramente hasta -3,1 millones de dólares.
Entre los desarrollos destacados se encuentran el lanzamiento de Fleet Rocket, una nueva solución de software TMS, y la introducción de funciones impulsadas por inteligencia artificial. La empresa invirtió 5,2 millones de dólares en tokens FET y estableció el Fr8Tech AI Lab. Sin embargo, debido a preocupaciones sobre los aranceles comerciales transfronterizos entre EE. UU. y México, Fr8Tech revisó sus perspectivas para 2025, proyectando ingresos de 20 a 23 millones de dólares, un beneficio bruto de 2 a 2,8 millones de dólares y una pérdida operativa de entre 4,2 y 5,5 millones de dólares.
Freight Technologies (NASDAQ: FRGT)는 거시경제적 어려움에도 불구하고 주요 지표에서 개선을 보인 2025년 1분기 재무 결과를 발표했습니다. 회사는 매출 총이익률이 12.4%로 증가했으며(전년 대비 7.0% 상승), 순손실은 160만 달러로 감소했습니다(전년 대비 70만 달러 개선). 영업 현금 흐름은 약간 개선되어 -310만 달러를 기록했습니다.
주요 발전 사항으로는 새로운 TMS 소프트웨어 솔루션인 Fleet Rocket 출시와 AI 기반 기능 도입이 포함됩니다. 회사는 FET 토큰에 520만 달러를 투자하고 Fr8Tech AI 연구소를 설립했습니다. 그러나 미-멕시코 국경 간 무역 관세에 대한 우려로 인해 Fr8Tech는 2025년 전망을 수정하여 매출 2,000만~2,300만 달러, 총이익 200만~280만 달러, 영업손실 -420만~-550만 달러를 예상하고 있습니다.
Freight Technologies (NASDAQ : FRGT) a publié ses résultats financiers du premier trimestre 2025, montrant des améliorations sur des indicateurs clés malgré les défis macroéconomiques. La société a annoncé une augmentation de la marge brute à 12,4% (en hausse de 7,0% en glissement annuel) et une réduction de sa perte nette à 1,6 million de dollars (amélioration de 0,7 million de dollars par rapport à l'année précédente). Les flux de trésorerie d'exploitation se sont légèrement améliorés à -3,1 millions de dollars.
Parmi les développements notables figurent le lancement de Fleet Rocket, une nouvelle solution logicielle TMS, et l'introduction de fonctionnalités basées sur l'intelligence artificielle. La société a investi 5,2 millions de dollars dans des jetons FET et a créé le Fr8Tech AI Lab. Cependant, en raison des inquiétudes concernant les droits de douane sur le commerce transfrontalier entre les États-Unis et le Mexique, Fr8Tech a révisé ses prévisions pour 2025, projetant un chiffre d'affaires entre 20 et 23 millions de dollars, un bénéfice brut entre 2 et 2,8 millions de dollars, et une perte d'exploitation comprise entre 4,2 et 5,5 millions de dollars.
Freight Technologies (NASDAQ: FRGT) hat die Finanzergebnisse für das erste Quartal 2025 veröffentlicht und trotz makroökonomischer Herausforderungen Verbesserungen bei wichtigen Kennzahlen gezeigt. Das Unternehmen meldete eine Steigerung der Bruttomarge auf 12,4% (plus 7,0 % im Jahresvergleich) und reduzierte den Nettoverlust auf 1,6 Millionen US-Dollar (Verbesserung um 0,7 Mio. US-Dollar im Jahresvergleich). Der operative Cashflow verbesserte sich leicht auf -3,1 Millionen US-Dollar.
Zu den bemerkenswerten Entwicklungen zählen die Einführung von Fleet Rocket, einer neuen TMS-Softwarelösung, sowie die Einführung KI-gestützter Funktionen. Das Unternehmen investierte 5,2 Millionen US-Dollar in FET-Token und gründete das Fr8Tech AI Lab. Aufgrund von Bedenken hinsichtlich der US-mexikanischen Grenzzölle hat Fr8Tech seine Prognose für 2025 angepasst und erwartet einen Umsatz von 20 bis 23 Millionen US-Dollar, einen Bruttogewinn von 2 bis 2,8 Millionen US-Dollar sowie einen operativen Verlust von -4,2 bis -5,5 Millionen US-Dollar.
- Gross margin percentage increased significantly by 7.0% YoY to 12.4%
- Net loss improved by $0.7M YoY to $1.6M
- Cash flow from operations improved by $0.2M YoY
- Successfully launched Fleet Rocket TMS software solution
- Strategic investment of $5.2M in FET tokens for AI development
- Company still operating at a net loss of $1.6M
- Negative cash flow from operations at -$3.1M
- Lowered high-end revenue and margin outlook for 2025 due to trade tariffs
- Projected operating loss of -$4.2M to -$5.5M for 2025
Insights
FRGT shows modest improvements in Q1 with better margins and reduced losses, but lowers 2025 guidance amid cross-border trade concerns.
Freight Technologies delivered a mixed Q1 2025 performance with notable improvements in profitability metrics despite ongoing challenges. The company's gross margin percentage jumped
While revenues weren't explicitly disclosed, the company reduced its net loss by
The launch of Fleet Rocket, a Transportation Management System, represents a strategic expansion of their product portfolio that could generate new revenue streams in the brokerage and shipping operations space. Similarly, their investment in AI capabilities through the Fr8Tech AI Lab and the integration of AI-powered features indicates commitment to technological differentiation.
However, the concerning development is their downward revision of 2025 guidance, citing expected economic impact from higher tariffs on US-Mexico cross-border trade. The projected operating loss of
Their
FRGT's technology expansion shows promise, but revenue challenges persist despite improved logistics solutions and AI integration.
The first quarter of 2025 marks a pivotal technology expansion phase for Freight Technologies with the launch of Fleet Rocket, a Transportation Management System targeting cost-efficiency in freight brokerage. This addition complements their existing Fr8App platform, creating a more comprehensive technology stack for logistics operations.
The company's AI integration strategy is materializing through multiple channels. The new AI-powered Tendering Bot represents a significant advancement in automated freight matching capabilities, potentially reducing manual intervention in load acceptance and pricing. The establishment of the Fr8Tech AI Lab in partnership with the University of Monterrey demonstrates a structured approach to sustained AI development rather than just implementing one-off features.
Fr8Tech's platform enhancements are strategically focused on operational pain points in logistics: dispatcher mobility, multi-stop documentation, tracking integrations, and customer platform connectivity. These improvements address real workflow challenges in transportation management, potentially increasing customer retention and operational efficiency.
The
While these technology initiatives show promise, the guidance reduction indicates challenges in translating technology improvements into immediate revenue growth, with uncertainty around cross-border trade policies potentially limiting near-term return on technology investments despite the company's ability to adapt to domestic shipments.
Gross margin % improvement | Lower net loss | Fleet Rocket launch
HOUSTON, May 20, 2025 (GLOBE NEWSWIRE) -- Freight Technologies, Inc. (Nasdaq: FRGT; “Fr8Tech” or the “Company”), a logistics management innovation company, offering a diverse portfolio of technology-driven solutions, released its results for the first quarter ended March 31, 2025, on May 16, 2025.
“In the first quarter of 2025, the Company continued to build on the transformative progress of 2024. We delivered further improvements across several key metrics including gross margins and cash flow from operations, extended agreements with several multinational enterprises, successfully launched Fleet Rocket, and introduced our advanced AI-powered Tendering Bot. Despite initial headwinds from a challenging and uncertain macroeconomic trade environment, we were able to progress the profitability of the brokerage business and advance our solution set. We remain focused on our mission and commitment to leading digital logistics innovation,” said Javier Selgas, CEO of Fr8Tech.
Business Highlights
- Launched Fleet Rocket, a cost-effective Transportation Management System (TMS) software solution to optimize freight brokerage and shipping operations.
- Released several new features and capabilities to Fr8App and Fr8Fleet including: AI-powered Tending Bot; mobile app for dispatchers; new tracking integrations with GPS providers and facility locations; attendance control; WhatsApp notifications updates; multi-stop documentation; and additional integrations with customer platforms.
- Started the Fr8Tech AI Lab in collaboration with the University of Monterrey to sustain ongoing development of AI-based technologies to transform logistics operations.
- Purchased
$5.2 million of FET tokens to initiate a cryptocurrency treasury and to collaborate with the Fetch Foundation to accelerate AI-driven product developments.
Financial Highlights
- Gross margin percentage increased
7.0% year-over-year to12.4% in Q1 2025 from5.4% in Q1 2024, as the Company remained focused on profitable routes in the cross-border and domestic spot markets and realized efficiencies in its dedicated services. - Cash flow from operations improved by
$0.2 million year-over-year to ($3.1) million in Q1 2025 from ($3.3) million in Q1 2024 primarily due to improved margins. - Net loss improved year-over-year by
$0.7 million to ($1.6) million in Q1 2025 from ($2.3) million in Q1 2024, on higher gross margins percentage and lower operating expenses.
2025 Annual Outlook
Primarily as a result of the expected economic impact of higher tariffs on US-Mexico cross border trade, the Company is lowering the high-end of its revenue and margin outlook for 2025. The Company believes it can recover most, if not all, cross-border volume with domestic shipments across Fr8App and Fr8Fleet, but remains cautious given the current uncertainty surrounding official trade policy between the two countries. Revised outlook for 2025 is:
- Revenue:
$20 million to$23 million - Gross Profit:
$2 million to$2.8 million - Operating Loss: -
$4.2 million to -$5.5 million
About Freight Technologies Inc.
Freight Technologies (Nasdaq: FRGT) (“Fr8Tech") is a technology company offering a diverse portfolio of proprietary platform solutions powered by AI and machine learning to optimize and automate the supply chain process. Focused on addressing the distinct challenges within the supply chain ecosystem, the Company’s portfolio of solutions includes the Fr8App platform for seamless Over-the-Road (OTR) B2B cross-border shipping across the USMCA region; Fr8Now, a specialized service for less-than-truckload (LTL) shipping; Fr8Fleet, a dedicated capacity service for enterprise clients in Mexico; Waavely, a digital platform for efficient ocean freight booking and management of container shipments between North America and ports worldwide and Fleet Rocket a nimble, scalable and cost-effective Transportation Management System (TMS) for brokers, shippers, and other logistics operator Together, each product is interconnected within a unified platform to connect carriers and shippers and significantly improve matching and operation efficiency via innovative technologies such as live pricing and real-time tracking, digital freight marketplace, brokerage support, transportation management, fleet management, and committed capacity solutions. The company is headquartered in Houston, Texas. For more information, please visit fr8technologies.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Fr8Tech’s and Fr8App Inc.’s actual results may differ from their expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements.
These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside Fr8Tech’s and Fr8App Inc.’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the inability to obtain or maintain the listing of Fr8Tech’s ordinary shares on Nasdaq; (2) changes in applicable laws or regulations; (3) the possibility that Fr8Tech or Fr8App Inc. may be adversely affected by other economic, business and/or competitive factors; (4) risks relating to the uncertainty of the projected financial information with respect to Fr8App Inc.; (5) risks related to the organic and inorganic growth of Fr8App Inc.’s business and the timing of expected business milestones; and (6) other risks and uncertainties identified, including those under “Risk Factors,” to be filed in Fr8Tech other filings with the Securities Exchange Commission.
Fr8Tech cautions that the foregoing list of factors is not exclusive. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Fr8Tech and Fr8App Inc. caution readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Fr8Tech and Fr8App Inc. do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in their expectations or any change in events, conditions or circumstances on which any such statement is based.
Quarter ended March 31, 2025 as compared to the quarter ended March 31, 2024
Schedule I
| FREIGHT TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) | ||||||||
| Three Months Ended March 31 | ||||||||
| 2025 | 2024 | |||||||
| Revenue | $ | 4,100,640 | $ | 4,287,760 | ||||
| Cost and expenses | ||||||||
| Cost of revenue (exclusive of depreciation and amortization shown separately below) | 3,593,300 | 4,056,627 | ||||||
| Compensation and employee benefits | 1,254,789 | 1,454,341 | ||||||
| General and administrative | 596,753 | 731,537 | ||||||
| Sales and marketing | 16,045 | 18,794 | ||||||
| Depreciation and amortization | 103,854 | 110,207 | ||||||
| Total cost and expenses | 5,564,741 | 6,371,506 | ||||||
| Operating loss | (1,464,101 | ) | (2,083,746 | ) | ||||
| Other income and expenses | ||||||||
| Interest expense, net | (134,864 | ) | (172,704 | ) | ||||
| Income (loss) before provision for income taxes | (1,598,965 | ) | (2,256,450 | ) | ||||
| Income tax expense | 3,081 | - | ||||||
| Net loss | $ | (1,602,046 | ) | $ | (2,256,450 | ) | ||
| Net loss per share attributable to ordinary shareholders, basic and diluted | $ | (0.73 | ) | $ | (10.76 | ) | ||
| Basic and diluted weighted average shares outstanding | 2,182,281 | 209,737 | ||||||
| Net loss | $ | (1,602,046 | ) | $ | (2,256,450 | ) | ||
| Other comprehensive gain (loss) net of tax | ||||||||
| Foreign currency translation gain (loss) | 20,820 | 161,140 | ||||||
| Comprehensive loss | $ | (1,581,226 | ) | $ | (2,095,310 | ) | ||
The accompanying notes are an integral part of these consolidated financial statements.
Schedule II
| FREIGHT TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| March 31, 2025 (unaudited) | December 31, 2024 (audited) | |||||||
| ASSETS: | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 416,476 | $ | 204,032 | ||||
| Accounts receivable, net | 3,843,152 | 3,533,330 | ||||||
| Unbilled receivables | 2,038,500 | 520,037 | ||||||
| Prepaid expenses and other current assets | 1,312,075 | 792,147 | ||||||
| Total current assets | 7,610,203 | 5,049,546 | ||||||
| Capitalized software, net | 556,641 | 574,109 | ||||||
| Property and equipment, net | 10,818 | 13,238 | ||||||
| Other long-term assets | 29,228 | 39,988 | ||||||
| Security deposits | 7,818 | 7,818 | ||||||
| Cryptocurrencies | 5,200,000 | - | ||||||
| Other intangible assets, net | 5,342 | 5,546 | ||||||
| Total assets | $ | 13,420,050 | $ | 5,690,245 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT): | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,717,688 | $ | 1,442,517 | ||||
| Accrued expenses | 1,286,134 | 1,280,563 | ||||||
| Short-term borrowings | 3,812,841 | 3,343,710 | ||||||
| Income tax payable | 281,296 | 278,215 | ||||||
| Insurance financing payable | 162,993 | - | ||||||
| Total current liabilities | 7,260,952 | 6,345,005 | ||||||
| Total liabilities | 7,260,952 | 6,345,005 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||
| Series A preferred stock, | 567 | 182 | ||||||
| Series B preferred stock, | 126 | 126 | ||||||
| Series seed preferred stock, | - | - | ||||||
| Ordinary shares, no par value, (**) unlimited shares authorized; 2,265,074 and 2,185,074 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively | - | - | ||||||
| Additional paid-in capital | 53,905,074 | 45,510,375 | ||||||
| Accumulated deficit | (46,518,825 | ) | (44,916,779 | ) | ||||
| Accumulated other comprehensive loss | (1,227,844 | ) | (1,248,664 | ) | ||||
| Total stockholders’ equity (deficit) | 6,159,098 | (654,760 | ) | |||||
| Total liabilities and stockholders’ equity (deficit) | $ | 13,420,050 | $ | 5,690,245 | ||||
| (*) | List of authorized shares for Series A preferred |
| a. | Series A1A preferred shares: 10,000,000 authorized shares |
| b. | Series A2 preferred shares: 3,000,000 authorized shares |
| c. | Series A4 preferred shares: unlimited authorized shares |
| (**) | Ordinary Share par value was change to no par value in June 2024. |
The accompanying notes are an integral part of these consolidated financial statements.
Schedule III
| FREIGHT TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (1,602,046 | ) | $ | (2,256,450 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 103,854 | 110,207 | ||||||
| Share-based compensation | 225,083 | 263,188 | ||||||
| Non-cash interest | - | 464,726 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (249,771 | ) | (887,971 | ) | ||||
| Unbilled receivables | (1,504,593 | ) | 159,797 | |||||
| Prepaid expense and other assets | (315,145 | ) | 2,534 | |||||
| Accounts payable | 258,232 | (187,550 | ) | |||||
| Accrued expenses | (15,124 | ) | (930,936 | ) | ||||
| Income tax payable | 3,081 | |||||||
| Net cash used in operating activities | (3,096,429 | ) | (3,262,455 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Capitalization of software development costs | (73,499 | ) | (86,399 | ) | ||||
| Purchase of property and equipment | - | (1,881 | ) | |||||
| Net cash used in investing activities | (73,499 | ) | (88,280 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from notes payable, net of discounts | - | 750,000 | ||||||
| Repayment of insurance financing payable | (17,418 | ) | (31,429 | ) | ||||
| Repayment of short-term borrowings | (2,979,508 | ) | (3,960,397 | ) | ||||
| Proceeds from short-term borrowings | 3,448,639 | 5,411,274 | ||||||
| Proceeds from the issuance of Series A4 Shares | 2,970,000 | - | ||||||
| Transaction cost relating to issuance of stock | - | (20,250 | ) | |||||
| Net cash provided by financing activities | 3,421,713 | 2,149,198 | ||||||
| Net increase (decrease) in cash and cash equivalents | 251,785 | (1,201,537 | ) | |||||
| Effect of exchange rate changes on cash and cash equivalents | (39,341 | ) | 24,414 | |||||
| Cash and cash equivalents at beginning of the period | 204,032 | 1,560,105 | ||||||
| Cash, cash equivalents and restricted cash at end of the period | $ | 416,476 | $ | 382,982 | ||||
| Supplemental disclosure of cash flow information | ||||||||
| Cash paid for interest | $ | 134,864 | $ | 173,465 | ||||
| Supplemental disclosure of non-cash activity | ||||||||
| Financing of insurance premiums | $ | 180,411 | $ | 222,891 | ||||
| Issuance of 2,311,248 Series A4 preferred stock | $ | 5,200,000 | $ | - | ||||
| Reconciliation of cash, cash equivalents, and restricted cash reported in the consolidated balance sheet | ||||||||
| Cash and cash equivalents | $ | 416,476 | $ | 382,982 | ||||
| Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | $ | 416,476 | $ | 382,982 | ||||
The accompanying notes are an integral part of these consolidated financial statements.
Fr8Tech Contact: Jason Finkelstein IGNITION Investor Relations investors@fr8technologies.com
FAQ
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