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Freight Technologies, Inc. (FRGT)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 headline: revenue fell sequentially and year-over-year, but the company reported positive net income driven by unrealized gains from its new cryptocurrency treasury; core operations remained loss-making and guidance was cut materially. Management cited tariff/trade-policy uncertainty and a strategic pivot toward higher-margin software as key factors shaping results and outlook .
  • Guidance reset: full-year 2025 revenue guidance was lowered to $13–$16M (from $20–$23M in May), and operating loss widened to -$4.5M to -$6.3M (from -$4.2M to -$5.5M), reflecting selective brokerage engagement, macro/tariff headwinds, and the SaaS transition .
  • Mix/narrative: initial enterprise sales of Fleet Rocket and new AI initiatives advanced the SaaS roadmap, while brokerage margins improved; however, crypto gains (unrealized) were the swing factor in achieving quarterly profitability, not the core logistics business .
  • Liquidity/structure: cash rose to $0.59M, A/R expanded materially, and the balance sheet now includes $8.38M of cryptocurrencies and $0.5M of convertible debt alongside higher short-term borrowings; working capital remains tight and operating cash flow YTD was negative .
  • Potential stock catalysts: magnitude/durability of crypto P&L contributions, Fleet Rocket commercialization pace, and any tariff resolution impacting cross-border brokerage volumes; the large guidance cut is a negative surprise vs May and may dominate near-term narrative .

What Went Well and What Went Wrong

  • What Went Well

    • Achieved quarterly net profit of $0.65M with a 21.7% net margin, driven by unrealized crypto gains and operational improvements; CEO: “we achieved profitability during the quarter through our crypto investments and through ongoing operational improvements” .
    • Initial enterprise sales of Fleet Rocket TMS and continued feature releases across Fr8App/Fr8Fleet; deeper EDI integrations and platform cross-functionality position the SaaS pivot .
    • Prototyped “AI Logistics Worker” agents (Fr8Tech AI Lab with University of Monterrey) and highlighted AI tendering automation, reinforcing the longer-term technology differentiation story .

  • What Went Wrong

    • Revenue declined to $2.99M, down 22% YoY and 27% QoQ; operating loss remained large (-$1.47M), and gross profit fell vs Q1 despite margin improvement YoY in Q1; core brokerage volumes were pressured by tariffs and trade-policy uncertainty .
    • Guidance was cut sharply just one quarter after revising it lower in May, reducing revenue by ~$7–$7M at the midpoint and widening operating loss; uncertainty on US–Mexico cross-border trade persists .
    • Cash from operations was -$5.04M YTD; accounts receivable rose to $5.61M and short-term borrowings increased, underscoring continued funding needs in the absence of stronger positive operating cash flow .

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Revenue ($)$3,837,842 $4,100,640 $2,989,910
Cost of Revenue ($)$3,113,444 $3,593,300 $2,534,689
Gross Profit ($)$724,398 (calc. from )$507,340 (calc. from )$455,221 (calc. from )
Gross Margin %18.9% (calc. from )12.4% (calc. from )15.2% (calc. from )
Operating Income (Loss) ($)$(1,704,951) $(1,464,101) $(1,470,971)
Operating Margin %-44.4% (calc. from )-35.7% (calc. from )-49.2% (calc. from )
Net Income (Loss) ($)$(1,954,556) $(1,602,046) $649,238
Net Income Margin %-50.9% (calc. from )-39.1% (calc. from )21.7%
Diluted EPS ($)$(24.66) $(0.73) $0.02
Unrealized Crypto Gain (Loss) ($)$0 $0 $2,427,754

Notes: EPS comparability is affected by multiple reverse stock splits and capital structure changes in 2024, which significantly alter share counts and per-share figures period-to-period .

Estimates vs Actual (S&P Global consensus)

  • Q2 2025 Revenue: Consensus N/A; Actual $2.99M . S&P Global consensus unavailable for this period.*
  • Q2 2025 EPS (diluted): Consensus N/A; Actual $0.02 . S&P Global consensus unavailable for this period.*

*Values retrieved from S&P Global.

Segment/Mix (context – 6M, not quarterly):

Service Line6M 20236M 2024
Freight Transportation Brokerage ($)$6,152,222 $4,675,171
Dedicated Capacity ($)$1,467,100 $3,450,431
Total Revenue ($)$7,619,322 $8,125,602

KPIs and Balance Sheet (point-in-time unless noted)

KPIQ1 2025 (Mar 31, 2025)Q2 2025 (Jun 30, 2025)
Cash & Cash Equivalents ($)$416,476 $586,658
Accounts Receivable, net ($)$3,843,152 $5,610,917
Unbilled Receivables ($)$2,038,500 $846,784
Cryptocurrencies ($)$5,200,000 $8,376,410
Short-Term Borrowings ($)$3,812,841 $4,851,762
Convertible Debt ($)$0 $500,000
Cash From Operations (6M) ($)N/A$(5,039,217) (6M)

Guidance Changes

MetricPeriodPrevious Guidance (May 20, 2025)Current Guidance (Aug 21, 2025)Change
Revenue ($)FY 2025$20M – $23M $13M – $16M Lowered
Gross Profit ($)FY 2025$2.0M – $2.8M N/AN/A
Operating Loss ($)FY 2025-$4.2M – -$5.5M -$4.5M – -$6.3M Widened (worse)

Rationale: selective brokerage engagement, SaaS mix shift, and potential economic impact from higher tariffs on US–Mexico cross-border trade .

Earnings Call Themes & Trends

No earnings call transcript was located for Q2 2025.

Thematic tracking from filings/press releases:

TopicPrevious Mentions (Q4 2024/6M 2024 and Q1 2025)Current Period (Q2 2025)Trend
AI/Technology initiativesLaunched AI Tendering Bot; created Fr8Tech AI Lab; ongoing automation focus Prototyped AI “Logistics Worker” agents with University of Monterrey; continued platform feature expansion Accelerating
Supply chain/tariffs/macroCautious due to tariffs; lowered high-end of FY25 outlook Explicitly cited tariffs/trade-policy uncertainty as brokerage headwind; further guidance cut Deteriorating
Product performance (Fleet Rocket)Launched Fleet Rocket TMS in Feb 2025 Initial enterprise sales completed; deeper EDI/platform integrations Improving
Mix shift (Dedicated vs Brokerage)6M 2024 showed strong dedicated capacity growth (+) Brokerage margins improved, but revenue fell; selective customer engagement Mixed
Regulatory/legalNo specific new legal issues disclosed No new items in 8-K Stable
Liquidity/capitalPrior going-concern discussion; reliance on facilities/equity Cash up QoQ; A/R and short-term borrowings higher; convertible debt appears Mixed

Management Commentary

  • “In the second quarter of 2025, we made further progress on the technological elements of our offerings and continued our transition to a SaaS provider… Although higher tariffs and trade policy uncertainty impacted the brokerage business in the second quarter, we achieved profitability during the quarter through our crypto investments and through ongoing operational improvements” — Javier Selgas, CEO .
  • Strategic focus areas highlighted: initial enterprise sales of Fleet Rocket; deeper EDI and cross-platform functionality; AI Logistics Worker agents via Fr8Tech AI Lab/University of Monterrey collaboration .
  • Treasury allocation update: expanded cryptocurrency holdings with “Official Trump coins,” building on initial acquisition of FET tokens .

Q&A Highlights

No Q2 2025 earnings call transcript was found; therefore, there are no Q&A highlights to report [ListDocuments: no earnings-call-transcript found].

Estimates Context

  • S&P Global consensus estimates for Q2 2025 revenue and EPS were unavailable; as a result, we cannot assess beats/misses versus Street for this quarter.*
  • Given the magnitude of the guidance cut in August vs May, we expect sell-side models (where coverage exists) would need to adjust revenue lower and widen operating loss assumptions for FY25 .

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • Core business softness vs crypto-driven profit: profitability in Q2 hinged on a $2.43M unrealized crypto gain; core operations (operating loss of -$1.47M) remain under pressure, so sustainability depends on operating improvement rather than treasury marks .
  • Guidance reset is significant: FY25 revenue cut to $13–$16M and wider operating loss range signals a tougher macro/cross-border setup and a more selective approach to brokerage; this is likely a negative near-term narrative driver .
  • SaaS transition progressing: Fleet Rocket has initial enterprise sales and platform integrations are deepening; near-term revenue impact is small, but the strategic direction is favorable for margin mix over time .
  • Liquidity watch: while cash improved to $0.59M, A/R rose to $5.61M and short-term borrowings increased to $4.85M; operating cash flow was -$5.04M YTD, indicating continued funding risk if operating metrics don’t inflect .
  • Tariff headline sensitivity: volumes and margins remain sensitive to US–Mexico trade policy; any clarity/relief could aid brokerage volumes and sentiment, while further uncertainty could pressure the outlook again .
  • Trading lens: near-term stock action may key off (1) crypto valuation swings, (2) evidence of Fleet Rocket traction beyond initial sales, and (3) any incremental updates on tariffs/cross-border demand; the guidance cut is a negative catalyst offset by optionality from SaaS/AI narratives .

Appendix: Additional Data Points

  • Balance sheet adds $8.38M of cryptocurrencies and $0.5M convertible debt as of June 30, 2025; cash $0.59M; short-term borrowings $4.85M; total equity turned positive vs YE 2024 deficit, aided by additional paid-in capital and crypto revaluation .
  • YTD cash usage: net cash used in operations of -$5.04M; net cash provided by financing of $6.41M; purchases and sales of crypto drove investing cash flows (net -$0.98M) .

Citations: Q2 2025 press release and financials ; Q1 2025 press release/financials ; FY 2024 results/outlook ; Six-month 2024 interim data and trends .