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Freight Technologies, Inc. (FRGT)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $4.10M, down 4.4% year over year vs $4.29M, while gross margin expanded sharply to 12.4% from 5.4%, driving an improved operating loss of -$1.46M and net loss of -$1.60M .
  • Management cut the high-end of 2025 guidance, citing expected tariff headwinds on US–Mexico cross-border trade; revenue now $20–$23M (prior $20–$25M), gross profit $2.0–$2.8M (prior $2.0–$3.0M), operating loss -$4.2M to -$5.5M (prior -$4.0M to -$5.5M) .
  • Product cadence continued: Fleet Rocket TMS launched and an AI-powered Tendering Bot introduced; Fr8Tech also formed an AI Lab with the University of Monterrey to accelerate AI development .
  • Capital structure and liquidity actions were active post-quarter: a 1-for-4 reverse split (effective May 27) , note exchange into Series A4 preferred under a $20M facility (with $1.5M of notes converted) , and additional crypto token purchases ($2M total for TRUMP; digital assets cited at ~$10.7M as of May 11) .
  • No Q1 2025 earnings call transcript was filed; Wall Street consensus estimates via S&P Global were unavailable for Q1 (no published EPS or revenue consensus found) .

What Went Well and What Went Wrong

What Went Well

  • Gross margin % improved materially to 12.4% (+700 bps YoY), reflecting focus on profitable lanes and efficiency gains in dedicated services .
  • Operating loss narrowed to -$1.46M from -$2.08M; net loss improved to -$1.60M from -$2.26M on better margins and lower opex .
  • Strategic product momentum: “We delivered further improvements… successfully launched Fleet Rocket, and introduced our advanced AI-powered Tendering Bot,” said CEO Javier Selgas .

What Went Wrong

  • Top-line contracted YoY to $4.10M from $4.29M, with management highlighting trade-policy uncertainty and tariff risks impacting cross-border volumes .
  • Cash from operations remained negative at -$3.10M (vs -$3.26M YoY), indicating continued working capital intensity despite margin gains .
  • Ongoing capital actions (reverse split, convertible note exchanges into preferred, and token purchases) add complexity to the equity story and may heighten dilution/volatility risk .

Financial Results

MetricQ1 2024Q1 2025
Revenue ($USD Millions)$4.29 $4.10
Operating Income (EBIT) ($USD Millions)-$2.08 -$1.46
Net Income - (IS) ($USD Millions)-$2.26 -$1.60
Diluted EPS - Continuing Operations ($USD)-$10.76 -$0.73
Gross Margin (%)5.4% 12.4%
Cash from Operations ($USD Millions)-$3.26 -$3.10
Basic & Diluted Weighted Avg Shares (000s)209.7 2,182.3

KPIs and Balance Sheet Snapshot

MetricDec 31, 2024Mar 31, 2025
Cash and Equivalents ($USD)$0.20M $0.42M
Accounts Receivable, Net ($USD)$3.53M $3.84M
Unbilled Receivables ($USD)$0.52M $2.04M
Short-term Borrowings ($USD)$3.34M $3.81M
Cryptocurrencies ($USD)—$5.20M
Total Stockholders’ Equity (Deficit) ($USD)-$0.65M $6.16M

Segment breakdown: Not disclosed for Q1 2025. Management attributed margin gains to mix optimization in cross-border/domestic spot and efficiencies in dedicated services .

Guidance Changes

MetricPeriodPrevious Guidance (Apr 14, 2025)Current Guidance (May 20, 2025)Change
Revenue ($USD Millions)FY 2025$20–$25 $20–$23 Lowered high-end
Gross Profit ($USD Millions)FY 2025$2.0–$3.0 $2.0–$2.8 Lowered high-end
Operating Loss ($USD Millions)FY 2025-$4.0 to -$5.5 -$4.2 to -$5.5 Slightly worse low-end

Management’s rationale: Expected economic impact of higher tariffs on US–Mexico cross-border trade; potential offset via domestic shipments, but caution due to policy uncertainty .

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript or investor call materials were found; table reflects themes across recent disclosures.

TopicPrevious Mentions (Q-2)Previous Mentions (Q-1)Current Period (Q1 2025)Trend
AI/Technology initiativesPlatform feature expansions (tracking integrations, WhatsApp notifications, analytics); Waavely launch in July 2024 Fleet Rocket development; AI Tendering Bot next steps Fleet Rocket launched; AI-powered Tendering Bot introduced; AI Lab with University of Monterrey Accelerating productization of AI/TMS
Supply chain/trade policyUSMCA demand, nearshoring tailwinds; tight US margins in H1’24 Optimism for 2025 with tech-led solutions Caution: higher tariffs could depress cross-border volumes; seeking domestic offsets Policy risk rising; mix shift contemplated
Product performance (Fr8Fleet)Dedicated capacity +42% YoY (FY 2024) FY 2024 margin improvement despite lower revenue Margin gains attributed partly to dedicated efficiencies; quarterly segment not disclosed Margin-focused execution
Regional trendsH1’24 revenue mix: Mexico $5.04M, US $3.08M FY 2024 saw margin improvement with lower revenue Cross-border volumes at risk from tariffs; domestic routes targeted Mix optimization ongoing
Capital structure actionsATM offering and reverse splits in 2024 2025 outlook reiterated 1-for-4 reverse split; $1.5M note-exchange to A4 preferred; crypto token purchases Active financing; equity complexity

Management Commentary

  • “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… We remain focused on our mission and commitment to leading digital logistics innovation.” — Javier Selgas, CEO .
  • “The Company is lowering the high-end of its revenue and margin outlook for 2025,” due to expected tariff impacts, though it believes domestic shipments can offset most cross-border volume .
  • “As of midday May 11, 2025, the value of our digital assets, including FET tokens and the initial $1 million purchase of TRUMP, was approximately $10.7 million.” — Don Quinby, CFO .

Q&A Highlights

No Q1 2025 earnings call transcript was found; there were no published Q&A highlights or clarifications beyond the 8-K press release commentary .

Estimates Context

Consensus (S&P Global) for Q1 2025 EPS and revenue was unavailable; no mean estimates or estimate counts were found when queried. Results should be interpreted without a beat/miss framing relative to Wall Street consensus for this quarter .
Values retrieved from S&P Global*

MetricQ1 2025 Consensus# of EstimatesActual Q1 2025
Revenue ($USD Millions)Unavailable*Unavailable*$4.10
Primary EPS ($USD)Unavailable*Unavailable*-$0.73

Key Takeaways for Investors

  • Margin-led progress: Strong gross margin expansion to 12.4% with improved operating and net losses indicates traction in mix optimization and dedicated service efficiencies .
  • Top-line pressure persists: Revenue contracted YoY and management is cautious on cross-border demand due to tariff uncertainty; domestic offsets are planned but may not fully bridge near-term policy shocks .
  • Liquidity actions continue: Reverse split, note exchange into preferred equity, and crypto treasury moves point to active capital management amid ongoing operating cash outflows (-$3.10M) .
  • 2025 outlook trimmed: High-end revenue and gross profit reduced; operating loss range slightly widened at the low end, reflecting a more conservative stance on macro/trade risks .
  • Product/AI cadence: Fleet Rocket and the AI Tendering Bot are live, with institutional collaboration via the AI Lab; product momentum is a medium-term thesis lever for efficiency and scale .
  • Estimate vacuum: With no available consensus, price discovery may hinge on directional guidance changes and subsequent execution updates rather than beat/miss dynamics .
  • Near-term trading lens: Watch for further tariff headlines, cross-border volume signals, domestic mix ramps, and capital actions (preferred conversions, share count effects) as near-term stock catalysts .